Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-000490

 

MEETING DATE:

06/25/24

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Treasurer-Tax Collector   (Approved)

Department contact person(s):

Shari L. Freidenrich (714) 834-7625 

 

 

Dana Schultz (714) 834-2288

 

 

Subject:  Transfer Escheatment Funds in the amount of $8,336 to the General Fund

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

No Legal Objection

Discussion

 

 

4/5 Vote

 

 

 

    Budgeted: Yes

Current Year Cost:   N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: $8,336

   Funding Source:     N/A

County Audit in last 3 years: 2021, 2022, 2023

   Levine Act Review Completed: N/A

 

    Prior Board Action:         6/28/2016 #75, 5/6/2014 #6, 1/24/2012 #10, 6/23/2009 #4

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize the transfer of escheated funds in the amount of $8,336 from the Orange County Sheriff-Coroner Fund 348-SH05 to the County General Fund.

 

2.

Authorize the reimbursement of $5,046 from the General Fund (100-004) to the Treasurer-Tax Collector for the Publication and Legal Notice Account.

 

 

 

 

SUMMARY:

 

Approving the transfer of these funds that became the property of the County of Orange on December 18, 2018, provides funds to offset General Fund expenses and reimburse the Treasurer for the cost of publishing these unclaimed funds.

 

 

 

BACKGROUND INFORMATION:

 

This item is coming to the Board of Supervisors (Board) as Government Code Section (GCS) 50053 requires the Board to authorize any required transfers of funds unclaimed over three years old and that are also over $5,000.  The BOS delegated this authority for transfers of unclaimed funds over three years old that are under $5,000 in Resolution 12-006 to the Treasurer-Tax Collector (Treasurer), as allowed under GCS 50055. 

 

As stated in Government Code Section 50050, the Treasurer is responsible for causing a notice to be published in a newspaper of general circulation listing funds unclaimed over three years except those under $15 or if the depositor’s name is unknown. Unclaimed funds over $15 that remain unclaimed for over three years and have not been claimed after the publishing of a notice, become the property of the County. In addition, unclaimed funds less than $15 and any amount of funds for which the depositor’s name is unknown, which remain un-cashed for over one year, become the property of the County. Finally, those unclaimed funds that are restitution collected on behalf of victims, shall be either deposited into the County’s Restitution Fund or used by the County for purposes of victim services. 

 

Escheatment Process

As required by Government Code sections 50050-50057, the Treasurer performed the escheatment process as follows: On February 17, 2016, a request was made to all County departments requesting that they provide the Treasurer all monies that have gone unclaimed for over three years as of December 31, 2013, and all funds under $15 that remained unclaimed for less than one year. On June 23, 2016, the Treasurer received a finalized listing from each individual department. On August 17 and August 24, 2018, respectively, a publication was made reflecting the individual Funds, dates, names and amounts comprising 86 items totaling $37,609.15 and stated that any unclaimed funds would become the property of the County on December 18, 2018. This information, with a claim form and instruction was also posted on the Treasurer’s web site at ocgov.com/unclaimedfunds and efforts were made to inform residents of this list. Since publication, claims in the amount of $3,000 were timely received and approved by the Treasurer. Moreover, additional research was performed by the Treasurer in locating certain individuals/businesses on these lists. The process did not identify any unclaimed funds that were restitution collected on behalf of victims. 

 

The funds escheated to the County on December 18, 2018, amounted to $37,609.15 and consisted of $29,273.15 of individual items $5,000 or less and $8,336 of individual items over $5,000 which is being requested for the Board to approve the transfer to the County’s General Fund. In addition to the published funds, the escheatment included $101,950.80 of unpublished amounts less than $15 that were either  unclaimed for less than one year or were depositor unknown. The total amount of escheated funds is $139,559.95.   The Treasurer provided notice to the Auditor-Controller of the required transfers as required by the GSC 50057.  The Treasurer is currently in the process of escheating unclaimed funds through calendar year 2023.

 

 

Prior Actions

On June 28, 2016, the Board of Supervisors (Board) authorized the escheatment of $83,418.15 to the General Fund and $93.89 to Dana Point Harbor Fund. On May 6, 2014, the Board of Supervisors authorized the escheatment of $55,574 in unclaimed funds to the General Fund. On January 24, 2012, the Board authorized the escheatment of $385,381 in unclaimed funds to the General Fund, $42,128 to the Superior Court Fund, and $17,653 to the Probation Victim Restitution Fund. Also, on January 24, 2012, in Resolution 12-006, the Board delegated to the Treasurer the ability to transfer all unclaimed property in the amount of $5,000 or less after notice if not claimed or if no verified complaint is filed and served. On June 23, 2009, the Board authorized the escheatment of $270,273 in unclaimed funds to the General Fund, $11,152 to the Superior Court Fund, $33,761 to the Probation Victim Restitution Fund, and $4,277 to the Dana Point Harbor Tidelands Fund.

  

 

County Audits in Last Three Years:

The Auditor-Controller Internal Audit Division (ACIA) issued eight quarterly review reports, three annual audit reports of the Statement of Assets in the County Treasury. The ACIA issued eleven Quarterly Compliance Monitoring of the Treasury Investment Portfolio reports from January 1, 2021, through September 30, 2023, with zero identified compliance exceptions. Finally, the ACIA issued two Annual Compliance Audits (performed by Eide Bailley) for fiscal years as of June 30, 2021, and June 30, 2022, and reported two compliance exceptions, both of which were self-reported by the Treasurer in the Monthly Investment Report.

 

 

Therefore, the Treasurer is requesting that the Board authorize the transfer of the unclaimed funds over $5,000 totaling $8,336, which became the property of the County on December 18, 2018. As per prior practice, the Treasurer also requests that costs of publishing the required notice be reimbursed to the Treasurer.  

 

 

 

FINANCIAL IMPACT:

 

County General Fund (100-001) will receive $8,336 revenue from escheated funds and Treasurer Tax-Collector will be reimbursed by the County General Fund (100-004) $5,046 for the costs of publication and legal notices.

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A - Government Code Section 50050-50057 
Attachment B - County Resolution No. 12-006
Attachment C - County Escheatment List-General Fund (over $5,000)
Attachment D - Memo to Auditor-Controller and Escheating Fund (under $5,000)
Attachment E - Affidavit of Publication/Publication/Invoice
Attachment F - Unclaimed Funds Claim Form