CITY OF TURLOCK

UNCLAIMED CHECK POLICY

PURPOSE

The unclaimed check policy is established to provide the proper mechanism to take possession of long standing unclaimed checks in accordance with government statutes and to ensure the propriety of the related accounting transactions.

I.Summary of State Law

  1. Money that is not the property of the City of Turlock that remains unclaimed for a period of more than three (3) years is the property of the City of Turlock forty-five (45) days after the initial public notice if not claimed or if no verified complaint is filed and served. (Section 50050 and Section 50051)
  2. At any time after the expiration of the three (3) year period, the Treasurer of the City of Turlock may cause a notice to be published once a week for two successive weeks in a newspaper of general circulation published in the City of Turlock. (Section 50050)
  3. The notice shall include the following information:
  4. The individual or business name as shown on the issued check.
  5. The amount of money on the issued check.
  6. The fund in which it is held (General Fund).
  7. A statement announcing that the money shall become the property of the City of Turlock on a date that is not less than forty-five (45) days after the first publication of the notice. See Exhibit I.

(Section 50051)

  1. Upon or prior to publication, a party of interest may file a claim which must include the following information:
  2. The claimant’s name, address and telephone number.
  3. Social Security Number or Federal Employer Identification Number.
  4. Proof of identify such as a copy of a drivers license, social security card or birth certificate.
  5. The amount of the claim.
  6. The grounds on which the claim is founded. See Exhibit II.

(Section 50052)

  1. The Treasurer may release to the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative, unclaimed money if claimed prior to the date the money becomes the property of the City of Turlock upon submitting proof satisfactory to the Treasurer. (Section 50052.5)
  2. When the unclaimed funds become the property of the City of Turlock and are in a Special Fund, the City Council may transfer them by resolution to the Funds upon which the money was originally drawn . (Section 50053)
  3. Any individual item of less than fifteen ($15) dollars or any amount, if the depositor’s name is unknown, which remain unclaimed for a period of one (1) year may be transferred to the Funds upon which the money was originally drawn by the City Council without the necessity of public notification in a newspaper. (Section 50055)
  4. The responsibilities of the Treasurer may be delegated by the Treasurer to the department that maintains the supporting records of the uncleared checks based on the initial receipt or deposit of that money or both. (Section 50056)

II.Disbursement and Funds Transfer

The Senior Accountant reviews Claim Forms and approves or rejects the claim.

  1. The Treasurer may release to the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative, the unclaimed money, except as otherwise noted in this policy, if:
  2. Claim is filed prior to the date the money becomes the property of the City of Turlock.
  3. Proof substantiating the claim is conveyed in writing, including all items detailed in item “D” of Section I of this policy.
  4. After proper documentation is secured, Senior Accountant prepares demand to release money based upon approved Claims Form.
  5. Upon rejection of said depositor’s claim by the Treasurer (see Exhibit III), the depositor may file a verified complaint seeking to recover all, or a designated part, of the money in a court within Stanislaus County. The Treasurer shall be served with a copy of the complaint and summons which must be served within thirty (30) days of receiving notice that the claim was rejected. The treasurer shall withhold the release of the portion of unclaimed money for which a court action has been filed until a decision is rendered by the court.
  6. Upon close of business on the forty-fifth (45) day after publication of the first notice, the unclaimed check amounts revert to the City of Turlock.
  7. When the unclaimed checks become the property of the City of Turlock and are in a special fund, the City Council may transfer them to the Funds upon which the original checks were drawn.
  8. Unclaimed checks of less than fifteen ($15) dollars that are more than twelve (12) months old will be transferred to the Funds upon which the original checks were drawn by the City Council.

III. Accounting Transactions

  1. For unclaimed checks, amounts will be transferred to those Funds that the money was originally drawn on.
  2. At the time the funds are claimed, supporting information is verified. If approved, Finance will then issue a replacement check.

Exhibit I – Sample of Public Notice

PUBLIC NOTICE

The following list of disbursements are unclaimed by the listed payees and held by the City of Turlock. If you have a claim against these funds, please contact the City of Turlock Finance Office, Julie Burke, Senior Accountant, 156 S. Broadway, Suite 110, Turlock, CA 95380, phone (209) 668-5542, Extension 1317. Proper proof of claim and current identification must be provided before funds will be released. Funds not claimed by become the property of the City of Turlock. This notice and its contents are in accordance with California Government Code Section 50050.

Check Date Check Number Amount Payee

Diana Lewis

City Treasurer

Exhibit II – Sample of Unclaimed Money – Claim Form

CITY OF TURLOCK

UNCLAIMED MONEY – CLAIM FORM

Return completed form to:

City of Turlock

Finance Department

156 S. Broadway Suite 110

Turlock, CA 95380

Pursuant to California Government Code Section 50052, I wish to file a claim for a previously unclaimed check in the amount of $ ______that was published in the Turlock Journal on ______. The grounds on which I file this claim are:

Vendor or Individual Name (Printed) Taxpayer I.D. or Social Security No.

Vendor or Individual Name (Signature) Telephone Number

Address

City/State/Zip Code

FOR FINANCE DEPARTMENT ONLY

Proof of Identity Verified: Check One:

Drivers License ٱ Social Security Card ٱ Birth Certificate ٱ

Verified By:Date:

Claim: Approved ٱ Rejected ٱ Reason for Rejection:

Reviewed By:Date:

Exhibit III – Sample of Money Claim Rejection Form

CITY OF TURLOCK

MONEY CLAIM REJECTION FORM

The City of Turlock has rejected the unclaimed property claim of:

Vendor or Individual Name:

Taxpayer I.D. or Social Security Number:

Address:

City/State/Zip Code:

Original Check Date:

Original Check Amount:

The grounds on which this claim has been rejected are:

Under California Government Code Section 50052, you have the right to file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within Stanislaus County. A copy of the complaint and the summons issued thereon must be served with thirty (30) days of receiving this notice of rejection. Upon being served, the Treasurer will withhold the disputed amount from being released until a decision is rendered by the court.

Diana Lewis

City Treasurer

Exhibit IV – Example of Synopsis to Authorize the Release of Unclaimed Checks

Council

Synopsis(Meeting Date)

From:Ann Stone Smith, Assistant City Manager

Prepared by:Julie Burke

1.ACTION RECOMMENDED:

Resolution:Authorizing the release of unclaimed checks pursuant to California Government Code Section 50050 and 50053 to the City of Turlock.

2.DISCUSSION OF ISSUE:

Section 50053 of the California Government Code allows for unclaimed checks held over three (3) years to become the property of the local agency after notice if not claimed or if no verified complaint is filed and served.

Section 50050 of the California Government Code outlines the process for the notification process of the unclaimed checks, and Section 50052 describes the claiming process by a party of interest.

3.BASIS FOR RECOMMENDATION:

A)Staff has reviewed all outstanding checks and has determined that the checks on the attached list meets this criteria.

4.FISCAL IMPACT / BUDGET AMENDMENT:

Fiscal Impact $X,XXX.XX

Amount will increase revenue in XXX/308-5-1 Unclaimed Property in the Funds upon which the original check was drawn.

Budget Amendment

None required.

5.CITY MANAGER’S COMMENTS:

Recommend approval.

6.ENVIRONMENTAL DETERMINATION:

Not Applicable.

7.ALTERNATIVES:

1. There is no acceptable alternative. Leaving these unclaimed checks on the books as outstanding ties up City funds unnecessarily.

Exhibit V – Example of Resolution to Authorize the Release of Unclaimed Checks

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF AUTHORIZING THE}RESOLUTION NO. 2004-

RELEASE OF UNCLAIMED CHECKS }

PURSUANT TO CALIFORNIA }

GOVERNMENT CODE SECTION 50050 AND}

50053 TO THE CITY OF TURLOCK}

}

WHEREAS, Section 50053 of the California Government Code allows for unclaimed checks held over three (3) years to become the property of the local agency after notice if not claimed or if no verified complaint is filed and served; and

WHEREAS, Section 50050 of the California Government Code outlines the process for the notification process of the unclaimed checks; and

WHEREAS, each of the checks listed on the attached summary meets this criteria.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby transfer the unclaimed checks on the attached list in the total amount of $X,XXX.XX to the City of Turlock’s Funds upon which the original checks were drawn in accordance with Section 50053 of the California Government Code.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this XXth day of XXXXX, 200X, by the following vote:

AYES:

NOES:

ABSTAIN:

NOT PARTICIPATING:

ABSENT:

ATTEST:

______

Rhonda Greenlee, CMC

City Clerk, City of Turlock, County

of Stanislaus, State of California

Exhibit VI – Example of Synopsis to Authorize the Release of Unclaimed Checks Under $ 15.00

Council

Synopsis(Meeting Date)

From:Ann Stone Smith, Assistant City Manager

Prepared by:Julie Burke

1.ACTION RECOMMENDED:

Resolution:Authorizing the release of unclaimed checks pursuant to California Government Code Section 50055 to the City of Turlock.

2.DISCUSSION OF ISSUE:

Section 50055 of the California Government Code allows for unclaimed checks of less than $15 or unclaimed checks of any amount if the depositor’s name is unknown to become the property of the local agency after a period of one (1) year without the necessity of publication of a notice in a newspaper.

3.BASIS FOR RECOMMENDATION:

A)Staff has reviewed all outstanding checks and has determined that the checks on the attached list meets this criteria.

4.FISCAL IMPACT / BUDGET AMENDMENT:

Fiscal Impact $X,XXX.XX

Amount will increase revenue in XXX/308-5-1 Unclaimed Property in the Funds upon which the original check was drawn.

Budget Amendment

None required.

5.CITY MANAGER’S COMMENTS:

Recommend approval.

6.ENVIRONMENTAL DETERMINATION:

Not Applicable.

7.ALTERNATIVES:

1. There is no acceptable alternative. Leaving these unclaimed checks on the books as outstanding ties up City funds unnecessarily.

Exhibit VII – Example of Resolution to Authorize the Release of Unclaimed Checks Under $ 15.00

BEFORE THE CITY COUNCIL OF THE CITY OF TURLOCK

IN THE MATTER OF AUTHORIZING THE}RESOLUTION NO. 2004-

RELEASE OF UNCLAIMED CHECKS }

PURSUANT TO CALIFORNIA }

GOVERNMENT CODE SECTION 50055 TO}

THE CITY OF TURLOCK}

}

WHEREAS, Section 50055 of the California Government Code allows for unclaimed checks of less than $15 or any amount if the depositor’s name is unknown to become the property of the local agency after a period of one (1) year without the necessity of publication of a notice in a newspaper; and

WHEREAS, each of the checks listed on the attached summary meets this criteria.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Turlock does hereby transfer the unclaimed checks on the attached list in the total amount of $X,XXX.XX to the City of Turlock’s Funds upon which the original checks were drawn in accordance with Section 50055 of the California Government Code.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Turlock this XXth day of XXXXX, 200X, by the following vote:

AYES:

NOES:

ABSTAIN:

NOT PARTICIPATING:

ABSENT:

ATTEST:

______

Rhonda Greenlee, CMC

City Clerk, City of Turlock, County

of Stanislaus, State of California