Federal Efforts to Recover Unclaimed 

State-Held Assets Face Many 

Challenges and Obstacles 

OIG-02-105 July 18, 2002

Office of Inspector General

******* 

The Department of the Treasury 
Contents 

Audit Report................................................................................................. 2 

 Results in Brief............................................................................................ 3 

Background................................................................................................. 6 

Finding and Recommendations ...................................................................... 8 

Asset Recovery Has Been Marginally Effective............................................ 8 

 Recommendations ................................................................................ 18 

Appendices

 Appendix 1: Objectives, Scope, and Methodology...................................... 28 

 Appendix 2: List of Federal Agencies We Surveyed.................................... 30 

Appendix 3: Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies ................................................. 31 

Appendix 4: List of States or District We Reviewed or Surveyed.................. 40 

 Appendix 5: Unclaimed Property Questionnaire for States........................... 41 

 Appendix 6: Owners of Unclaimed Federal Assets ..................................... 55 

 Appendix 7: Schedule of Potential Revenue Enhancements .......................... 56 

 Appendix 8: Management Comments ....................................................... 58 

 Appendix 9: Major Contributors to This Report .......................................... 65 

 Appendix 10Report Distribution ............................................................... 66 

Abbreviations

AIC Office of Accounting and Internal Control

 CFO Chief Financial Officer 

DCIA Debt Collection Improvement Act of 1996 

 FMS Financial Management Service 

 OIG Office of Inspector General 

 SBA Small Business Administration 

 TFM Treasury Financial Manual, I TFM 6-5100 

 TD Treasury Directive 

 Treasury Department of Treasury

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 1
OIG Audit 

Report

The Department of the Treasury 

Office of Inspector General 

 July 18, 2002 

Edward R. Kingman, Jr. 

Assistant Secretary for Management and Chief Financial Officer 

Unclaimed federal financial assets are federally owned monetary 

assets held by states. Unclaimed assets may have resulted 

from misdirected or unsuccessful mail delivery due to faulty 

addresses or the relocation or closure of federal agencies. 

Federal agency owners of the missing assets are required to

attempt to recover their assets from the states. If agencies do 

not recover their assets in a timely manner, the Department of 

Treasury (Treasury) can act as the collector of last resort for the 

unclaimed federal assets. Given this responsibility, Treasury 

has been recovering unclaimed assets on behalf of federal 

agencies for the past decade. 

The overall objective of our audit was to determine whether 

Treasury was effectively recovering unclaimed federal assets. 

We conducted our fieldwork at the Office of Accounting and 

Internal Control, Financial Management Service, and the States 

of California, Nevada, and Texas. We also surveyed the 

remaining 47 states, the District of Columbia, and 26 federal 

and quasi-governmental agencies. A detailed description of the 

objectives, scope, and methodology is presented in Appendix 1. 

At the start of this audit, the Office of Accounting and Internal

Control advised us to coordinate the audit through the Deputy 

Chief Financial Officer because the Chief Financial Officer’s 

(CFO) position was vacant at the time. Accordingly, our audit 

engagement memo was sent to the Deputy CFO. With your 

subsequent appointment as CFO, our draft audit report should 

have been directed to you for official comment, but instead we 

inadvertently sent the draft to the Deputy CFO. We apologize 

for any confusion this may have caused. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 2
 

Results in Brief

Overall, we found that federal efforts to recover unclaimed 

assets have had limited success. Indeed, only half the agencies 

we contacted indicated they were even seeking to recover their 

assets held by states. We found the reasons for such limited 

effectiveness varied and were attributable to several program 

challenges and operational obstacles. The common element 

across these challenges and obstacles relate to the cost of 

identifying and recovering assets. Agencies must bear all 

recovery costs from their own appropriated funds. Yet, federal 

agencies are generally not allowed to retain the recovered funds 

to offset the cost of recovering these assets. Although the 

Debt Collection Improvement Act of 1996 (DCIA) allows 

agencies to retain a portion of the qualified expenses incurred to 

improve their debt collection processes1

, this reimbursement 

mechanism is not currently operational. 

Our federal agency survey revealed that only 13 (50%) of 26 

agencies attempted to recover their assets from the states2

. Of

the 13 agencies, 10 spent less than 21 staff days per year 

toward asset recovery. The low participation rate resulted in 

nine appropriated agencies recovering less than $190,000 over 

various periods through 2001. On the other hand, with the 

ability to retain the recovered funds, the Federal Deposit 

Insurance Corporation (FDIC), a non-appropriated agency, has 

recovered over $5.4 million as of 2001. Therefore, FDIC was 

able to more than offset their asset recovery costs. 

In addition, operational challenges hindered the recovery efforts 

of federal agencies and Treasury. Incomplete state unclaimed 

property websites, labor-intensive asset identification 

processes, and cumbersome claim procedures prevented or 

delayed the recovery of federal assets. 

1 31 U.S.C. §3720C 2

 Four agencies did not respond to the survey.

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 3
 

With so few federal agencies actively pursuing state-held 

assets, Treasury began asset recovery on their behalf. In eight 

years, the Financial Management Service (FMS) had limited 

success, recovering approximately $2 million from 32 states, 

the District of Columbia, and Canada. However, our audit 

found that FMS’ recovery efforts had been sporadic and faced 

many of the same challenges and obstacles faced by federal 

agencies. 

We visited or sent surveys to 50 states and the District of 

Columbia3

. As of 2001, 14 (27%) states reported holding 

unclaimed federal assets of approximately $3.2 million. Based 

on further analysis and review, we determined that $2.9 million 

were held by six states and the assets belonged to 44 different

federal agencies. During the audit, we were able to identify 

specific asset account information for $2.9 of the $3.2 million 

in outstanding federal assets. We subsequently forwarded the 

information to AIC for recovery. We also identified and 

forwarded to the AIC 1,568 additional unclaimed federal asset 

accounts listed on two websites, which did not show the 

associated dollar amounts. 

In addition to the $3.2 million, we estimated the Federal 

government could have also avoided debt interest cost of 

approximately $1.7 million, assuming the funds would have 

reverted to the Treasury General Fund. We estimated the debt 

interest cost avoidance from the time states received the 

unclaimed assets through 2001. 

We believe that the $3.2 million in unclaimed federal assets and 

the avoidable interest costs of $1.7 million represent the 

minimum amounts potentially due the Federal government. We

could not determine the amounts for unclaimed federal assets or 

avoidable interest costs held by 37 states because they either 

did not provide the necessary information or did not respond to

our survey. 

3 Twelve states did not respond to the survey.

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 4
In light of the challenges and obstacles to effective federal 

recoveries, we make nine recommendations aimed at enhancing 

the identification and recovery of unclaimed federal assets held 

by states. Seven recommendations aim to streamline the asset 

recovery process, and two recommendations focus on fostering 

state cooperation regarding asset recovery. 

In response to our draft report, the Deputy CFO concurred with 

6 of the 9 OIG recommendations. For these six 

recommendations, we believe the planned or ongoing corrective 

actions, if properly implemented, adequately address the 

reported findings. 

The Deputy CFO did not concur with the three remaining 

recommendations, but noted that no final decisions would be 

made on the unclaimed asset program until the end of the 

ongoing pilot in June 2003. Accordingly, at this time, we are

not proceeding with the audit resolution process through the 

Deputy Secretary as provided under Treasury Directive 40-01, 

Part III, 2.d. and OMB Circular A-50. Moreover, we are hopeful 

that when the final program decisions are made, appropriate 

consideration will be given to the three recommendations and 

associated program weaknesses, particularly with regard to 

protecting federal assets against potential fraud and abuse while 

in the custody of states. The cited Treasury Directive (TD) also 

provides for the OIG to periodically follow up on report 

recommendations to ensure that final corrective actions have 

been completed and are effective. 

The Deputy CFO also brought to our attention several technical 

corrections and suggested clarifications to the draft report. 

These were incorporated throughout the final report as 

applicable. The full text of the Deputy CFO’s response has 

been incorporated in Appendix 8. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 5
Background 

Unclaimed federal financial assets are federally owned monetary 

assets held by states. Examples of unclaimed assets may 

include: savings and checking accounts; non-negotiated cashier 

checks and money orders; credit balances and refunds; 

insurance and bankruptcy proceeds; and dividends and 

royalties. Unclaimed assets may have resulted from misdirected 

or unsuccessful mail delivery due to faulty addresses or the 

relocation or closure of federal agencies. Misdirected mail may 

have also resulted because agency officials established 

accounts outside the Treasury banking facilities without 

notifying the agency’s finance office. 

In general, if assets remain unclaimed for a period of time, state 

laws require holders of these assets to turn over the funds to 

the state of the owner’s last known address. The unclaimed 

property laws and abandonment period vary among the states. 

Holders of unclaimed assets may include: financial institutions; 

insurance companies; healthcare, telecommunication, and utility 

providers; and other general business entities. 

Owners of unclaimed federal assets may include all Federal 

government entities, not limited to the 26 agencies we 

surveyed, as shown on Appendix 2. Federal owners may also 

include the bureaus or units within each agency. For example, 

the Department of Defense consists of various defense agencies 

and four military services, (e.g. Air Force, Army, Marines, and 

Navy). Each military service has multiple bases and units, any 

of which may be individual owners of unclaimed federal assets. 

Once the states receive the unclaimed assets, they do not take 

permanent title to the property. Rather, the states act as 

custodians of the assets, safeguarding them until the rightful 

owners or their heirs claim the property. Until unclaimed assets 

are returned to the owner, states invest and earn interest 

revenue on the unclaimed funds. Although we were unable to 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 6
 

determine an amount, we believe that for some states the 

earned interests on unclaimed assets can be sizeable. 

The Treasury Financial Manual, I TFM 6-51004

 (TFM) requires 

federal agencies to attempt to identify and recover their 

unclaimed assets. If agencies have attempted asset recovery, 

they may also contract with Treasury to recover assets on their 

behalf. However, if agencies do not recover their assets in a 

timely manner, the TFM authorizes Treasury to act as the 

collector of last resort for unclaimed federal assets. 

As such, Treasury’s Office of the Fiscal Assistant Secretary 

began asset recovery efforts on behalf of federal agencies in 

1991, later delegating the duties to the FMS in 1993. FMS’ 

recovery efforts consisted of a periodic letter-writing campaign, 

requesting the states to help identify and remit the federal 

assets to Treasury. According to a FMS official, FMS assigned 

one full-time equivalent staff to this task. From 1993 to 2000, 

FMS recovered approximately $2 million in federal assets from 

32 states, the District of Columbia, and Canada. However, 

FMS had no assurance that the states fully or accurately 

reported the assets they held; and not all states responded to 

FMS’ intermittent inquiries. Consequently, FMS could not

systematically identify the types and associated amounts of 

federal assets states were still holding. 

In June 2001, the Fiscal Assistant Secretary delegated the 

recovery responsibilities to the Office of the Chief Financial 

Officer, who later delegated the duties to the AIC. Thereafter, 

AIC had the authority and responsibility to administer a twoyear asset recovery pilot program ending June 2003. Since 

inheriting the asset recovery responsibilities, AIC has assigned 

three staff members to recover the funds part time. In one 

year, AIC collected $3.2 million. During the audit, we were 

able to identify specific asset account information for $2.9 of 

the $3.2 million in outstanding federal assets. We subsequently 

4 31 U.S.C. §3718(a) and §3718 (d)

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 7
forwarded the information to AIC for recovery. Although we 

could not determine the associated dollar amounts, we also 

identified and referred another 1,568 unclaimed assets held by 

two states. 

Finding and Recommendations 

Finding Asset Recovery Has Been Marginally Effective 

Our audit found that federal efforts to recover state-held 

unclaimed federal assets have been marginally effective because 

many federal agencies were not actively identifying or 

attempting to recover their unclaimed assets, and had not asked 

Treasury for recovery assistance. Federal agencies’ limited 

success in recovering state-held assets can be attributed to 

several challenges and operational obstacles that have inhibited 

more active recovery efforts. On the other hand, we identified 

during our audit approximately $3.2 million in federal assets 

outstanding as of 2001. In addition to identifying the 

unclaimed assets, we also estimate that Treasury could have 

avoided approximately $1.7 million in debt interest costs had 

the $3.2 million been recovered prior to our discovery. 

Asset Recovery Efforts

The TFM requires federal agencies to attempt to identify and 

recover their unclaimed assets. We judgmentally selected and 

surveyed 26 federal agencies to determine their asset recovery 

efforts. Our survey found that only 13 (50%) of 26 agencies5

attempted to recover their assets from the states. Of the 13 

agencies, 10 devoted less than 21 staff days per year toward 

asset recovery. Our survey also revealed that previous recovery 

results were minimal. Table 1 below shows that out of the 13, 

9 appropriated agencies recovered less than $190,000 in 

unclaimed assets over various periods through 2001, where as, 

 

5 The Department of Agriculture, Federal Emergency Management Agency, Federal Reserve Board, and U.S. Postal Service 

did not respond to the survey.

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 8
one non-appropriated agency recovered over $5.4 million as of 

2001. 

Table 1 

Unclaimed Assets Recovered by Federal Agencies 

Federal Agency Funds Recovered* 

Appropriated Agency: 

1 Department of Commerce $1,300

2 Department of Defense 18,247

3 Department of Energy 500

4 Federal Communications Commission 13,369

5 Government Printing Office 19,984 

6 Department of Health & Human Services 2,286 

7 Department of Interior 50,000

8 Social Security Administration 50,028 

9 Department of Transportation 33,823 

SUBTOTAL $189,537

Non-Appropriated Agency:

10 Federal Deposit Insurance Corporation 5,421,625 

TOTAL $5,611,162

Source: Based on federal agency survey results.

* Reported recoveries covered varying periods through 2001. 

In our opinion, the apparent lack of proactive recovery efforts 

can be attributed to various reasons; foremost is the associated

cost of recovering state-held assets. The TFM guidelines 

require agencies to expend their appropriated operating funds to

recover the assets. Agencies must absorb the recovery cost 

but generally may not retain the recovered assets for future use. 

Instead, recovered funds are generally deposited into the 

Treasury General Fund. 

Under the DCIA and to the extent authorized in the 

appropriation Acts, Treasury may reimburse agencies for certain 

expenses incurred to improve their credit management, debt 

collection, and debt recovery activities. However, this expense 

reimbursement mechanism is not operational to agencies at this 

time. Furthermore, from our federal agency survey, it appears

that some agencies still would not have attempted asset 

recovery even if they were reimbursed for their recovery costs. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 9
Survey responses indicated that seven agencies did not attempt 

recovery because they believed the amounts of unclaimed 

assets were insignificant. In addition, four agencies did not 

establish asset recovery procedures, did not have available 

resources to administer recovery efforts, or were unaware of 

their responsibility to recover unclaimed assets. Furthermore, 

12 agencies preferred that Treasury identify the unclaimed 

assets on their behalf; and 6 of those believed that it would not

be cost beneficial to recover their own unclaimed assets or that 

the amount of assets are insignificant. See Appendix 3 for 

more federal agency survey results. 

The TFM authorizes agencies to contract with finders to locate 

and recover federal assets on their behalf. Agencies may use 

the recovered funds to pay contracted finders, and the 

remaining proceeds are returned to the Treasury General Fund. 

Our agency survey showed that only two appropriated 

agencies, the Government Printing Office and Small Business 

Administration (SBA) contracted or planned to contract with 

finders to recover their assets. Of the $19,984 Government 

Printing Office recovered in 2001, a finder located $3,208. The 

SBA did not provide the amount of unclaimed funds, if any, 

recovered by SBA or finders. 

Treasury’s AIC is not utilizing the services of finders at this 

time. According to AIC officials, the contract procurement 

process would be cumbersome and costly. Officials believe that 

the time and money spent on negotiating contracts would 

probably exceed the time and money spent on recovering 

federal assets. Furthermore, because some states do not allow 

finders to file claims on behalf of owners, finders can only 

identify federal assets, but not claim them. Therefore, the claim 

process would still be labor-intensive for federal agencies and 

Treasury, even with the assistance of finders. On the other 

hand, AIC officials indicated that in the future, finders might be 

useful in locating federal assets not available on the state 

websites. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 10
Under the TFM, agencies may also request asset recovery 

assistance from Treasury. However, agencies must use their 

own appropriated funds to reimburse Treasury for its services. 

Although the survey indicated that two agencies previously 

requested assistance from Treasury, no agency has formally 

contracted with Treasury to recover assets on its behalf prior to 

our audit. Moreover, one survey respondent believed the 

Treasury collection fee would exceed the unclaimed assets’ 

value. 

Unlike appropriated agencies, quasi-federal agencies have a 

greater incentive to more actively recover state-held assets. 

These agencies, whose operating funds are not appropriated, 

may retain the recovered funds. For example, the FDIC 

recovered and retained over $5.4 million from 43 states and the 

District of Columbia as of 2001. 

As part of the response to the draft report, the Deputy CFO 

stated that references to the FDIC were misleading. 

Specifically, according to the Deputy CFO, essentially all of the 

funds FDIC recovered were attributable to failed financial 

institutions, which substantially differ from the types of assets 

Treasury claims on behalf of other federal agencies. 

We believe that all unclaimed federal assets warrant the Federal 

government’s attention, regardless of the assets’ type or origin. 

Furthermore, the main point of listing FDIC was not the dollar 

amount, but the fact that since FDIC can keep its recovered 

funds, FDIC has more incentive to actively pursue its lost assets 

compared to appropriated federal agencies. 

Identifying and Recovering Unclaimed Assets, A Daunting Task

Neither Treasury nor federal agencies have systematically 

identified the amounts of state-held federal assets. 

Consequently, we visited 3 states and surveyed the remaining 

47 states and the District of Columbia, 51 locations in all. In 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 11
addition to the amount of unclaimed federal assets, we also 

wanted to gain an understanding of the claim process for these 

assets. 

Our survey indicated that 36 states maintained unclaimed 

property records on websites. Based on our fieldwork and 

website search of five states, we found that searching for 

federal assets on the websites was extremely labor-intensive. 

State websites required one to input the asset owner’s name 

exactly as it is spelled on the websites. This task would be 

simple if one knew all the possible variations of federal agency 

names. Instead, the name search process became a guessing 

game. 

We found that agency names could be completely or partially 

abbreviated, misspelled, or otherwise. For example, the name 

for United States on the website could be represented at least 

17 different ways, (e.g.: US, U S, U S , U.S., USA, U S A, Uni, 

United, United State, United States, U S Govt, U S 

Government, United States G, United States Gov’t, United 

States Government, U S of America, United States of America.) 

Moreover, eight states listed at least 1,975 different name 

variations for the 45 federal agencies we identified. The 

variations we identified were provided to AIC during the audit. 

Unless asset searchers had updated lists of federal agency 

name variations, or searched each asset individually, it would be 

unlikely to identify 10O percent of the outstanding federal 

assets. 

Even with advanced web search capabilities, federal agencies 

still would not locate all their assets from state websites. Our 

fieldwork and survey revealed that 21 state websites did not list 

unclaimed assets prior to the 1970s, 1980s, or 1990s, 

depending on the state. In addition, at least six states 

suppressed government asset information from their unclaimed 

property websites. According to California and Texas 

Unclaimed Property officials, they excluded government assets 

from the websites to prevent public complaints of the 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 12
 

government wasting its resources. Of the 15 states that 

reported the number of unclaimed federal asset accounts on our 

survey, California and Texas held the largest amounts. 

Identifying state-held federal assets was made further difficult 

for 27 states, as their websites did not contain complete listings 

of their unclaimed assets. Instead, these states maintained 

some unclaimed asset records in the forms of hardcopy files, 

index cards, microfiche, microfilm, or internal state databases. 

Searching through these types of records are far more difficult 

and time-consuming than a website search. Moreover, they are 

generally not easily accessible to the public. See Appendix 5, 

Question 6 for more state survey details. 

Given the varying state record systems and associated asset 

identification challenges, federal agencies and Treasury would 

need assistance from the states. Thirty-three states indicated 

that they would be willing to assist in federal asset recovery if 

agencies provided them with a list of agency names. However, 

14 of the 33 states have limited asset search capabilities or lack 

sufficient resources to provide timely assistance. The remaining 

states did not provide information regarding their asset search 

capabilities. For the three states6

 that would not provide 

recovery assistance, they suggested that federal agencies 

search for their assets on the websites. 

In addition to a labor-intensive identification process, our audit 

found that the claim process could be cumbersome as well. 

Nineteen states require a claim form for each federal asset. 

Moreover, 11 states require owners to claim their own assets. 

This could be very time-consuming considering that states may 

hold hundreds or thousands of assets owned by many federal 

agencies. 

Furthermore, our audit revealed that states might not be the 

only custodians of unclaimed federal assets. The survey 

6

 Kansas, Minnesota, and Oregon. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 13
indicated that the city and county governments of six states 

might also maintain federal assets. This could occur if federal 

agencies do not negotiate the checks issued by the city or 

county. However, since we did not review unclaimed federal 

assets at the city or county level, we could not determine the 

amounts of federal assets maintained at the city or county 

governments or their asset recovery procedures. 

Asset Recovery Status

The cost of asset recovery and related operational challenges 

prevented, delayed, or discouraged federal asset recovery. This 

is evident by the low participation rate and minimal amount of 

federal assets that agencies previously recovered. 

Under the TFM, Treasury can act as the collector if federal 

agencies do not timely recover their assets. In 1993, FMS 

began a state letter-writing campaign to recover assets on 

behalf of federal agencies. FMS assigned one full-time 

equivalent staff to periodically send letters to states, requesting 

assistance in locating unclaimed federal assets. In eight years, 

FMS recovered approximately $2 million in federal funds from 

32 states, the District of Columbia, and Canada. Given the 

difficulties in readily identifying unclaimed assets, FMS could 

not be assured whether states had fully disclosed or returned all 

federally owned assets. 

Our audit found that a letter-writing campaign did not fully 

capture all the federal assets. Based on our fieldwork and 

survey, we found that 14 states were maintaining 

approximately $3.2 million in federal assets as of 2001, as 

shown in Table 2 below. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 14
Table 2 

OIG Identified Federal Assets 

Held By States (As of 2001) 

 State 

Amount of

Unclaimed Assets 

1 California $1,217,644

2 Maine 33,000

3 Maryland 127,117

4 Michigan 112,048

5 Nebraska 6,000

6 Nevada 47,279

7 New Jersey 64,857

8 Ohio 146,435

9 Rhode Island 1,234

10 South Carolina 77,703 

11 South Dakota 3,242 

12 Texas 1,329,023 

13 Vermont 16,282 

14 Wyoming 1,500 

TOTAL $3,183,364

Source: Based on state survey results. 

Of the $3.2 million, we found that $2.9 million from six states 

belonged to 44 federal agencies. See Appendix 6 for a 

breakdown by federal agencies. The $3.2 million we identified 

was available for recovery during the letter-writing campaign. 

Additionally, we were able to determine when the states had 

received $2.8 million of the $3.2 million in federal assets. 

Based on the receipt dates, we estimated the Federal 

government could have possibly avoided at least $1.7 million in

debt interest costs. See Appendix 7 for the method of 

computation. 

In response to the draft report, the Deputy CFO questioned the 

accuracy of the cited amounts for the identified state-held 

federal assets and the avoidable debt interest costs. While the 

Deputy CFO raises several technically correct factors that would 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 15
impact on the precise amounts for both figures, our intent was 

to only illustrate the potential benefits to the Federal 

government had there been a more effective, systematic, and 

proactive attempt to collect state-held federal assets in the 

past. 

Also in its response, the Deputy CFO stated that once assets 

are claimed the first time, the amount of unclaimed assets 

available in subsequent years will be significantly smaller; and 

thus a three-year projection of the first-year collections could be 

highly inflated. We agree that the amount of unclaimed funds 

recovered today does not represent the amount of federal funds 

to be collected tomorrow. Therefore, we did not make any 

projections on future federal asset collections. Rather, based on 

information provided by the states, we estimated the amount of 

debt interest cost Treasury could have avoided if it had 

recovered the funds upon the states’ receipt of the assets. 

Indeed, we believe the $3.2 million and $1.7 million figures are 

likely understated given that only 14 states provided unclaimed 

federal asset information in their responses to our survey. We 

also did not survey cities and counties that likely held federal 

assets, as previously discussed. The OIG simply reported the 

federal asset amounts provided by the noted states and 

attaches no level of precision to the cited amounts. We believe 

that our recommendations below collectively serve to better 

ensure Treasury the desired level of precision in both identifying 

and recovering state-held federal assets as suggested by the

Deputy CFO’s comments. 

Although only 14 state survey respondents provided unclaimed 

federal asset information, the surveys generated much 

awareness concerning Treasury’s efforts to recover assets on 

behalf of federal agencies. In response to our survey, some 

states forwarded federal claim information directly to Treasury’s 

AIC. Similarly, during the audit, we referred to AIC specific 

asset account information that we identified for $2.9 of the 

$3.2 million in outstanding federal assets. We forwarded an 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 16
additional 1,568 federal asset accounts we identified from two 

state websites. These two websites did not provide dollar 

amounts for these assets. 

Based on the unclaimed federal assets we provided to AIC and 

its own increased recovery efforts, the amount of unclaimed 

federal assets AIC collected in one year surpassed the amount 

FMS collected in eight years. Since inheriting the recovery pilot 

program in June 2001, the Treasury’s AIC has collected 

$3.2 million for federal agencies as of June 2002. AIC is in the 

process of contacting and researching federal assets in the 

remaining states. AIC is locating the unclaimed federal assets 

with the states’ assistance or by searching the unclaimed 

property websites. AIC’s goal is to contact all 50 states by the 

conclusion of its pilot program in June 2003. 

We see several benefits to AIC’s plans to centralize federal 

recovery efforts. Centralization should reduce the burden on 

states having to deal with each federal agency individually, and 

would also likely reduce the Federal government’s overall cost 

of identifying and recovering unclaimed assets. Furthermore, 

having one central federal contact for unclaimed assets should 

also help make the communication between the Federal 

government and States more effective and efficient. The states 

will know where to send all federal claim information once AIC 

informs the states that it will recover assets on behalf of federal 

agencies. Given the many challenges to identifying unclaimed 

assets, AIC must rely on states for assistance. Therefore, 

developing a positive rapport and consistent contact with states 

are essential to the recovery of all federal assets. 

Internal Controls For Unclaimed Assets

To determine if there were sufficient controls to detect 

fraudulent claims and prevent unauthorized payment of claims, 

we observed the unclaimed property operations of California, 

Nevada, and Texas and interviewed their internal audit division 

personnel. In general, the three states performed reviews of 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 17
their internal operations. The reviews included areas that were 

either directly or indirectly related to unclaimed assets. Nevada 

and Texas provided audit reports for our review. Our fieldwork 

and survey also indicated that 31 states audited holders of their 

unclaimed assets. 

Based on our limited review of the area, we could not determine 

whether the states’ internal review processes provided 

sufficient assurance that unclaimed assets belonging to federal 

agencies were adequately protected against fraud or abuse. 

Moreover, FMS and AIC did not appear to include assessing 

state internal controls as a part of their recovery efforts. 

Recommendations

In the finding section we noted several concerns in asset 

recovery efforts, identifying and recovering unclaimed federal 

assets, and internal controls. Accordingly, we recommend the 

following: 

1. To enhance federal and state recovery efforts and to 

eliminate the duplication of recovery costs incurred by 

agencies, establish agreements with federal agencies to 

centralize recovery responsibilities within Treasury. 

Management Comments

Because of the pilot program, any formal decision on these 

matters would be premature. In addition, current regulations 

already provide for Treasury being the “collector of last 

resort,” and FMS attorneys have advised AIC that written 

agreements are not warranted. AIC agrees that it will issue 

another communication to all agencies advising them of its 

current role by July 31, 2002. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 18
OIG Comments

We believe AIC’s planned management action will address 

the recommendation. Given that AIC is notifying agencies 

that it will become the “central recoverer” of unclaimed 

federal assets, recovery efforts should be enhanced and 

duplication of efforts should be eliminated without formalized 

agreements. 

2. Inform states that Treasury will be the central liaison and 

recoverer for federal agencies; and provide states with the 

federal point of contact for unclaimed assets. 

Management Comments

Again, formal actions in this regard would be premature due 

to the pilot program. However, 20 states have paid federal 

claims already and AIC is in various stages of working with 

another 20 states, plus the District of Columbia. Thus, 41 

entities are aware of AIC’s program responsibilities, and AIC 

will be contacting the remaining entities in due course as 

resources allow. AIC does not believe actions beyond this 

are necessary between now and the end of the pilot in 

June 2003. 

OIG Comments

We believe AIC’s planned management action will address 

the recommendation. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 19
3. Perform a cost analysis to determine under which 

circumstances would it be more economical to administer 

asset recovery duties in-house versus contracting with

finders. 

Management Comments

The Deputy CFO did not believe that contracting finders 

would be cost beneficial. After discussions with 

procurement officials, the Deputy CFO believes that the 

procurement process would be too time-consuming, taking 

away time currently spent on recovering federal assets. 

Additionally, some states do not allow finders to claim 

assets. Thus, AIC would still need to perform the same 

claim procedures for the assets identified by the finders. 

Moreover, finders would not be useful in cases where states 

refuse to deal with finders or exclude federal assets from 

state websites. Furthermore, AIC currently deposits all 

recovered funds into the Treasury General Fund. This

amount could be reduced by 10 to 50 percent, after paying 

the service fees suggested by finders who previously 

approached AIC. 

OIG Comments

The Deputy CFO’s response reflects steps already taken that 

constitute a preliminary cost analysis, albeit unsystematic, in 

addressing this recommendation. We hope that the AIC will 

further assess this recommendation with a more precise 

analysis at the end of the pilot in June 2003. Additionally, 

in light of the Deputy CFO’s comments regarding its 

anticipated resource constraints, AIC should give further 

consideration to the added flexibility of using finders, as that 

would reduce the burden on resources. Both the DCIA and 

TFM guidance authorize the use of finders. Furthermore, the

OIG believes that contracting to finders might also provide 

further flexibility in meeting the President’s initiative to put 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 20
more federal jobs up for competition with private firms. The 

OMB has already directed agencies to put 15 percent of their 

jobs up for possible outsourcing by the end of fiscal year 

2003. 

4. To lessen the cost disincentives for states to assist in the 

asset identification process, assess the feasibility and 

circumstances of providing financial assistance to states for 

assisting in the recovery of unclaimed federal assets. 

Consideration could be given to expanding the TFM guidance 

on reimbursing finders to include states, netting recovered 

assets to either fully or partially offset states’ costs, and or 

other possible joint working arrangements similar to other 

Federal programs such as the Cash Management 

Improvement Act. 

Management Comments

The Deputy CFO believes that implementing this 

recommendation could lead to a significant reduction in 

cooperation from the states, as well as in the amount of 

funds deposited into the Treasury General Fund. With the 

exception of two states, AIC has been successful in 

recovering federal assets from states without paying 

financial incentives thus far. 

Additionally, the Deputy CFO does not believe there is 

justification to pay incentives to some states, and not to 

others. Once states learn that the Federal government may 

offset their recovery expenses, states may become less 

inclined to voluntarily return the federal assets without 

financial compensation. Since most states have been 

cooperative thus far without requiring financial 

reimbursement, the Deputy CFO believes that paying 

incentives to the states is unnecessary and does not intend 

to take action on this recommendation. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 21
OIG Comments

The OIG believes the Deputy CFO’s response does not 

adequately address either the reported condition or 

associated recommendation. However, given AIC’s planned 

program assessment at the end of the pilot in June 2003, 

the OIG is not proceeding with the audit resolution process 

through the Deputy Secretary as provided under TD 40-01, 

Part III, 2.d. and OMB Circular A-50. 

We are hopeful that when final program decisions are made, 

that appropriate consideration will be given to the several 

factors that collectively inhibit states’ willingness or ability to 

identify or assist in recovering federal assets. As we 

reported, 14 state survey respondents cited limited asset 

research capabilities or insufficient resources to provide 

timely assistance. The Deputy CFO also pointed out in 

response to the draft report that AIC has already experienced 

this with some states. The State of Ohio charged a five 

percent administrative fee and the State of Kentucky 

charged $1 per asset. Finally, as we previously discussed, 

comparable arrangements between Treasury and states 

currently exist as provided under the Cash Management 

Improvement Act. 

5. To lessen the time-consuming asset identification process of 

searching state websites, periodically coordinate with federal 

agencies to determine the list of agency names, including all 

the possible name variations. Once determined, provide the 

current listings of agency names to states. Using the 

agency listings should reduce the time and resources spent 

on identifying assets, while capturing a larger percentage of 

the outstanding federal assets. A starting point for working 

with the agencies and the states could be the 1,975 

variations we provided to AIC during the audit. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 22
 Management Comments

AIC has already expanded its list of agency names based on 

the asset information referred by the OIG. In addition to 

using the expanded listing to search for federal assets on 

state websites, AIC also shares the agency listing with

states when requesting their assistance in identifying federal 

assets. On the other hand, the Deputy CFO believes that 

there is a point of diminishing returns relative to the number 

of name variations used for researching federal assets. 

OIG Comments

We believe the Deputy CFO’s comments are partially 

responsive to the recommendation. The response to the 

draft report did not address how AIC plans to coordinate 

with federal agencies to update the list of agency names as 

new variations arise. Our audit found at least 1,975 

different name variations represented 45 federal agency 

owners. With such a wide variety of agency names, federal 

asset researchers would have a better chance of capturing a 

larger percentage of the outstanding assets by collaborating 

with the different federal agencies as to their possible name 

variations. 

Regarding the diminishing returns relative to the number of 

name variations used for researching federal assets, the OIG 

believes that the diminishing point for unclaimed assets 

remains unknown at this time. Moreover, the OIG believes 

that as the list of federal name variations expands, the 

marginal costs in terms of money and time to update the list 

will diminish, as will the number of new name variations.

In light of AIC’s planned completion of the pilot program in 

June 2003, we are not proceeding with the audit resolution 

process provided under TD 40-01. Also under this Directive, 

the OIG will periodically follow up on report 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 23
recommendations to ensure that final corrective actions have 

been completed and are effective. 

6. To identify and recover federal assets not listed on websites, 

coordinate with states to develop a systematic approach for 

identifying and recovering non-listed assets. 

Management Comments

AIC concurred and has already implemented procedures to 

alleviate the difficulty of identifying and recovering federal 

assets not listed on state websites. AIC indicated that 

states will research their database on Treasury’s behalf and 

send the claim information for the federal assets they 

identify. 

OIG Comments

We believe AIC’s current management action addresses the 

recommendation, if properly implemented. 

7. To eliminate the requirement of federal agency owners 

claiming their own assets and filing a claim form for each 

asset, coordinate with states to reevaluate what could be 

done to lessen the obstacles of claiming the federal assets. 

Management Comments

AIC concurred and has already implemented procedures to 

circumvent the different asset claim protocols required by 

the individual states. 

OIG Comments

We believe AIC’s current management action addresses the 

recommendation, if properly implemented. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 24
8. To better ensure the recovery of new unclaimed federal 

assets, periodically search for federal assets based on the 

presence of federal organizations within each state, city or 

county government. 

Management Comments

AIC concurred and plans to explore federal assets at other 

potential sources after its pilot program ends in June 2003. 

These secondary sources include city and county 

organizations, as well as State and Federal court systems. 

Because AIC believes that most states would unlikely obtain 

substantial amounts of federal assets on an annual basis, 

AIC intends to search these states for federal assets every 

other year. Similarly, AIC plans to research federal assets at 

the secondary resources during the “off” years, including 

researching those states that previously held large amounts 

of unclaimed federal assets. 

OIG Comments

We believe AIC’s planned management action will address 

the recommendation, if properly implemented. 

9. To mitigate the risk of fraudulent claims of federal assets, 

establish procedures to review internal controls regarding 

unclaimed federal assets held by states, cities, and counties. 

Management Comments

The Deputy CFO did not believe it would be appropriate to 

address weak state internal controls. It cited resource 

constraints to assess states’ control environments and the 

lack of authority to compel states to improve their controls. 

Rather than assessing the control environment, the Deputy 

CFO suggested that the best control against fraudulent 

claims was to reduce the level of federal assets under states’ 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 25
control by increasing the recovery of state-held federal 

assets. 

OIG Comments

The Deputy CFO’s response does not adequately address the 

reported condition or recommendation. This appears to be 

due in part, to a misunderstanding of the recommendation, 

and yet the OIG’s subsequent attempts to clarify the 

recommendation were declined. 

The recommendation does not direct the AIC to compel 

states to improve their internal controls. Instead, the 

recommendation aims to alert the AIC of the risk that states 

may not have adequate internal controls against fraudulent 

claims of federal assets while under their custody. In light of 

the difficulties in precisely identifying the amount of stateheld federal assets, which could amount in the millions, the 

recommended risk assessment is not only prudent but also 

consistent with the purview of the CFO’s office.7

We agree the AIC would not have the authority to compel 

states to improve any controls that might be lacking. 

However, it would be an abdication of the AIC’s 

responsibility not to take sufficient measures to ensure 

against fraud and abuse of federal assets. Because the 

specific measures would undoubtedly vary across states, the 

appropriate starting point would be a risk assessment of the 

internal control environment of those states holding federal 

assets. 

Given that final program decisions are deferred until the end 

of the pilot program in June 2003, we are not proceeding 

with the audit resolution process under TD 40-01. Again, 

 

7 One of the program groups under the CFO is the Management Control Program, whose mission includes strengthening

management controls and providing Departmental and Bureau management with timely and useful information concerning 

critical control issues.

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 26
the OIG reserves the right to follow up on this 

recommendation at a future time. 

* * * * * * 

We would like to extend our appreciation to the AIC; the 

Unclaimed Property offices of the States of California, Nevada, 

and Texas; and all the survey respondents for their cooperation 

and courtesies extended to our staff during the review. If you 

have any questions, please contact me at (415) 977-8810, 

extension 222. Major contributors to the report are listed in 

Appendix 9. 

Benny W. Lee /S/ 

Regional Inspector General for Audit 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 27
Appendix 1 

Objectives, Scope, and Methodology

The overall objective of our audit was to determine whether 

Treasury was recovering unclaimed federal assets effectively. 

Specifically, we: 

• assessed whether current unclaimed asset laws, 

regulations, and guidelines were adequate for federal 

agencies to effectively and efficiently identify and recover 

unclaimed assets; 

• assessed the effectiveness of Treasury’s asset recovery 

efforts; 

• assessed the types and amounts of unclaimed federal 

assets in the nation; and 

• determined if there were sufficient controls to detect 

fraudulent claims and prevent unauthorized payment of 

claims. 

To achieve these objectives, we reviewed applicable asset 

recovery laws, regulations, and guidelines. We also evaluated 

Treasury’s past and present unclaimed asset recovery 

procedures and efforts. 

During the audit, we identified 45 federal agency owners of 

unclaimed federal assets. To obtain knowledge of their asset 

recovery efforts, we judgmentally selected and surveyed 26 of 

the 45 federal and quasi-governmental agency owners. We 

considered these 26 agencies to be large in size and 

decentralized, thus would be more likely to own unclaimed 

assets. 

To determine the amounts and types of unclaimed federal 

assets nationwide as of 2001 and the identification and claim 

procedures for the assets, we performed fieldwork at three 

states and surveyed the remaining 47 states and the District of 

Columbia, 51 locations in all. We selected our fieldwork sites 

based on the amount of federal assets we found during our 

initial website search. We chose two states (California and 

Texas) with large amounts of federal assets and one state 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 28
Appendix 1 

Objectives, Scope, and Methodology

(Nevada) with a small amount of federal assets. Our unclaimed 

property website search consisted of five states, (California, 

Florida, Nevada, New York, and Texas). We judgmentally 

selected four states with large populations and one state with a 

small population. 

To determine if there were sufficient controls to detect 

fraudulent claims and prevent unauthorized payment of claims, 

we observed the unclaimed property operations of California, 

Nevada, and Texas and interviewed their internal audit division 

personnel. 

We conducted our audit between April 2001 and January 2002 

in accordance with generally accepted government auditing 

standards. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 29
Appendix 2 

List of Federal Agencies We Surveyed 

Federal Agency Surveyed Responded to Survey

1 Department of Agriculture No 

2 Department of Commerce Yes 

3 Department of Defense Yes 

4 Department of Education Yes 

5 Department of Energy Yes 

6 Environmental Protection Agency Yes 

7 Federal Communications Commission Yes 

8 Federal Deposit Insurance Corporation Yes 

9 Federal Emergency Management Agency No 

10 Federal Reserve Board No 

11 Federal Trade Commission Yes 

12 Government National Mortgage Association Yes 

13 Government Printing Office Yes 

14 General Services Administration Yes 

15 Department of Health & Human Services Yes 

16 Department of Housing & Urban Development Yes 

17 Department of Interior Yes 

18 Department of Justice Yes 

19 Office of Personnel Management Yes 

20 United States Postal Service No 

21 Small Business Administration Yes 

22 Securities & Exchange Commission Yes 

23 Social Security Administration Yes 

24 Department of State Yes 

25 Department of Transportation Yes 

26 Department of Veterans Affairs Yes 

Total Survey Respondents 22 

Source: Based on federal agency survey results.

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 30
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

We surveyed 26 federal agencies, of which 22 responded to our survey. 

See Appendix 2 for more details. Some agencies did not provide responses 

to every question. Our survey results are listed below. 

1. Who is your agency’s contact person for recovering unclaimed assets? 

Name Title Phone 

Address Fax

2. Is your agency aware of the Department of Treasury, Financial Manual, 

I TFM 6-5100, which provides federal agencies guidance on implementing 

procedures to identify, recover, and account for its unclaimed assets? 

Responses

a. Yes 20

b. No 2

Identifying Unclaimed Assets

3. Has your agency attempted to identify its unclaimed assets at the states?

Responses

a. Yes 13

b. No (skip to #8) 9 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 31
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

4. List the states from which your agency has attempted to identify 

unclaimed assets. 

Federal Agency No. of Locations* 

Dept. of Defense 8 

Dept. of Energy 50 

Federal Communications Commission 51 

Federal Deposit Insurance Corporation 49 

Government Printing Office All states with websites

Dept. of Health & Human Services 5 

Dept of Interior 50 

Dept. of Justice 12 

Small Business Administration 50 

Social Security Administration 54 

Dept. of Transportation 50 

Dept. of Veterans Affairs 4 

* Locations can include all 50 states, District of Columbia, Guam, Puerto Rico, or Virgin Islands.

5. How did your agency attempt to identify its unclaimed assets at the 

states? (check all that applies) 

Responses

a. Searched the states’ unclaimed asset websites 11 

b. Requested assistance directly from the states 10 

c. Reviewed state publications or announcements 2 

d. Used private finders 2 

Other: 

• Used external unclaimed property websites. 

• Used state unclaimed property databases. 

e. 

• Were notified by states or private finders. 

4 

6. How often does your agency attempt to identify its unclaimed assets at 

the states? 

Responses

a. More than once a year 4 

b. Once a year 2 

c. Once every two or more years 1 

d. No established timeframe 5 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 32
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

7. How many staff days per year does your agency devote to identifying 

unclaimed assets at the states? (check one) 

Responses

a. 1-10 days 6

b. 11-20 days 4

c. 21 days or more 2 

Skip to question #9. 

8. Why haven’t your agency attempted to identify its unclaimed assets at 

the states? (check all that applies) 

Responses

a. Unaware of federal requirements to recover 

unclaimed assets 

2 

b. No agency procedures for identifying or recovering 

unclaimed assets 

4 

c. No agency resources available to recover unclaimed 

assets 

2 

d. Perception that the amount of unclaimed assets 

belonging to your agency is insignificant 

7 

Other: 

• Assets found generally do not belong to agency. 

e. 

• Assets belong to a grant program. 

2 

9. Has your agency contracted with or plan to contract with private finders 

to identify unclaimed assets held by states? 

Responses

a. Yes 3

b. No (skip to #11) 18 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 33
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

10. Has your agency established Department of Treasury procedures before 

entering into contracts with private finders? 

Responses

a. Yes 1

b. No 2

11. Has your agency requested assistance from Department of Treasury, 

Financial Management Service (FMS) or Departmental Office (DO) to help 

identify unclaimed assets? 

Responses

a. Yes 2

b. No (skip to #13) 19 

12. When was your agency’s most recent correspondence with FMS or DO 

regarding recovery of unclaimed assets? 

Responses

a. Within 1 year ago 2 

b. 1–2 years ago 1 

c. Over 2 years ago 1 

13. Does your agency prefer to identify its own unclaimed assets from the 

states or would your agency prefer assistance from the Department of 

Treasury? 

Responses

a. Identify own assets 9 

b. Assistance from Treasury 12 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 34
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

14. Explain the reasoning for your response in #13? 

Identify Own Assets

• Agencies can use state unclaimed property websites to identify assets.

• Agencies have already developed recovery procedures and designated 

resources to this effort.

• Assets found generally do not belong to agency. 

• Treasury’s fee would exceed the value of the assets recovered. 

• It is not a major effort to recover assets. 

Assistance from Treasury

• There are no cost-benefits for agencies to recover their own assets.

• Treasury should recovery assets on behalf of federal agencies. 

• Agencies do not have incentive to recover assets since they do not retain the 

recovered funds. 

• Agencies have not developed procedures to recover assets. 

• Agencies believe the amounts of unclaimed assets are insignificant. 

Recovering Unclaimed Assets 

15. Has your agency recovered unclaimed assets from any state within the 

past five years? 

Responses

a. Yes 9

b. No (skip to #20) 13 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 35
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

16. List the states from which your agency recovered unclaimed assets since 

1990. 

Federal Agency No. of Locations* 

Dept. of Commerce 1 

Dept. of Defense 1 

Dept. of Energy 3 

Federal Communications Commission 18 

Federal Deposit Insurance Corporation 49 

Government Printing Office 22 

Dept. of Health & Human Services 3 

Dept. of Interior 9 

Social Security Administration 19 

Dept. of Transportation 11 

* Locations can include all 50 states or the District of Columbia. 

17. What was the dollar amount recovered from the states listed in #16? 

 Federal Agency Funds Recovered* 

Appropriated Agency:

1 Department of Commerce $1,300

2 Department of Defense $18,247

3 Department of Energy $500

4 Federal Communications Commission $13,369

5 Government Printing Office $19,984

6 

Department of Health & Human 

Services $2,286

7 Department of Interior $50,000

8 Social Security Administration $50,028

9 Department of Transportation $33,823

 SUBTOTAL $189,537

Non-Appropriated Agency:

10Federal Deposit Insurance Corporation $5,421,625

 TOTAL $5,611,162

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 36
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

18. How many staff days per year does your agency spend processing 

unclaimed assets at the states? (check one) 

Responses

a. 1-10 days 6

b. 11-20 days 2

c. 21 days or more 2 

19. Was the asset recovery process from the states labor intensive? 

Responses

a. Yes 3

b. No 7

20. Does your agency prefer to recover its own unclaimed assets from the 

states or would your agency prefer assistance from the Department of 

Treasury? 

Responses

a. Recover own assets 11 

b. Assistance from Treasury 10 

21. Explain the reasoning for your response in #20? 

Recover Own Assets

• Agencies have already developed recovery procedures and designated 

resources to this effort.

• Assets found generally do not belong to agency. 

• It is not a major effort to recover assets; there are few assets to identify. 

Assistance from Treasury

• There are no cost-benefits for agencies to recover their own assets.

• Treasury should recovery assets on behalf of federal agencies. 

• Agencies do not have incentive to recover assets since they do not retain the 

recovered funds. 

• Agencies have not developed procedures to recover assets. 

• Agencies believe the amounts of unclaimed assets are insignificant. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 37
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

Accounting for Recovered Assets

22. Has your agency established a system to track the recovered assets? 

Responses

a. Yes 11

b. No 11

23. (For quasi government agencies only) What is your agency’s policy and 

regulation in regards to depositing recovered funds?

• Deposit recovered funds into an appropriate insurance fund. 

• Agency maintains funds until claimed. 

24. Where did your agency deposit the recovered funds? 

Responses

a. Agency’s 1060 account, “Forfeitures of 

Unclaimed Money and Property” 

2 

b. Agency’s General Fund 1 

c. Agency’s suspense/clearing accounts 1 

Other: 

• Miscellaneous receipt fund 

• Insurance fund 

• Revolving fund 

d. 

• Trust fund 

7 

25. Has your agency refunded unclaimed asset funds received in error? 

Responses

a. Yes 3

b. No 12

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 38
Appendix 3 

Unclaimed Asset Questionnaire for Federal and 

Quasi-Government Agencies 

General Asset Recovery Efforts

26. How can Department of Treasury improve the current recovery process 

of unclaimed assets?

• Centralize asset recovery responsibilities to Treasury. 

• Because claim procedures are mainly designed for private citizens, Treasury 

could advocate states to establish claim procedures for federal agencies; 

devise a standard claim form valid for all 50 states. 

• Link state unclaimed property information to Treasury’s website for agency 

use only. 

• Treasury should intervene when states require indemnity bonds; states 

refuse to refund due to an administrative change in address; states lack 

resources to process claim timely; or states question the agency’s ownership 

of assets. 

• Treasury should sponsor unclaimed asset recovery workshops and inform 

agencies regarding available asset recovery services. 

• Treasury should contact agencies with proposals for cross-servicing in this 

area. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 39
Appendix 4 

List of States or District We Reviewed or Surveyed

State or District

Surveyed 

Responded 

to Survey

State or District

Surveyed 

Responded 

to Survey

1 Alabama No 27 Nebraska Yes

2 Alaska No 28 Nevada* Yes

3 Arizona Yes 29 New Hamphshire Yes

4 Arkansas Yes 30 New Jersey Yes

5 California* Yes 31 New Mexico No

6 Colorado No 32 New York Yes

7 Connecticut Yes 33 North Carolina Yes

8 Delaware* No 34 North Dakota No

9 Florida Yes 35 Ohio Yes

10 Georgia Yes 36 Oklahoma Yes

11 Hawaii Yes 37 Oregon Yes

12 Idaho Yes 38 Pennsylvania No

13 Illinois Yes 39 Rhode Island Yes

14 Indiana No 40 South Carolina Yes

15 Iowa Yes 41 South Dakota Yes

16 Kansas Yes 42 Tennessee Yes

17 Kentucky Yes 43 Texas* Yes

18 Louisiana No 44 Utah No

19 Maine Yes 45 Vermont Yes

20 Maryland Yes 46 Virginia Yes

21 Massachusetts Yes 47 Washington Yes

22 Michigan Yes 48 Washington D.C. Yes

23 Minnesota Yes 49 West Virginia No

24 Mississippi Yes 50 Wisconsin Yes

25 Missouri No

26 Montana Yes

51 

 

Wyoming 

 

Yes 

Respondents 19 Respondents 20

Total Survey Respondents 39 

Source: Based on state survey results.

* OIG obtained information through fieldwork.

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 40
Appendix 5 

Unclaimed Property Questionnaire for States

Thirty-nine of the 50 states and the District of Columbia responded to our

survey. See Appendix 4 for a detailed listing. Some survey participants did 

not provide responses to every question. Our survey results are listed 

below. 

1. Who should federal agencies contact regarding future claims? 

Name Title Phone 

Address Fax 

Access to Unclaimed Property Records

2. How can federal agencies identify unclaimed properties held by 

your State? (check all that applies.) 

Responses

a. Website 36

b. CD ROM/software 7

c. Microfiche/microfilm 4

d. Publications 13

Other: 

• Request assistance in writing or via telephone; 

provide states with listings of agency names 

• Use external unclaimed property websites 

• Use state unclaimed property software 

• Private finders are available 

e. 

• Contact each county’s Treasury department 

37 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 41
Appendix 5 

Unclaimed Property Questionnaire for States

3. If your State has a website for unclaimed properties, does it 

include federal government properties? 

Responses

a. Yes 31

No (skip to #5) 

• California 

• Connecticut 

• Delaware 

• Illinois 

• Iowa 

b. 

• Texas 

6 

4. The earliest unclaimed property captured on the website is 

dated: (check one) 

Responses

a. Prior to 1970 14 

b. 1970 – 1979 6 

c. 1980 – 1989 8 

d. 1990 – 1999 6 

d. 2000 – present 1 

Skip to #6. 

5. What other means can federal agencies use to locate their 

unclaimed properties? 

See responses given for #2e on previous page. 

6. How does your State maintain unclaimed property records not

captured on the website? (check all that applies) 

Responses

a. Microfiche/microfilm 9

b. Index cards 3

Other: 

• Internal state database 

c. 

• Hardcopy files 

22 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 42
Appendix 5 

Unclaimed Property Questionnaire for States

7. Would city and county governments in your State also be 

custodians of federal unclaimed assets? 

Responses

a. Yes 6

b. No (skip to #9) 19 

8. Explain the circumstance under which that would occur. 

• Unnegotiated checks issued by the city or county governments. 

• County Treasury reported unclaimed funds to state, but retained funds to 

pay claims to owners. 

• Improper reporting of federal assets. 

• Federal agencies may claim assets if owners do not claim property after 

18 months. 

• Funds belong to federal grant programs. 

Unclaimed Property Database 

9. What is the total dollar amount of unclaimed properties held by 

your State? 

32 states reported unclaimed assets of over $13.8 billion as of 2001, with 

asset amounts ranging from $11 million to $5 billion. 

10. Of the total dollar amount in #9, can your database identify the 

amount of federal unclaimed properties? 

Responses

a. Yes 16

b. No (skip to #12) 17 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 43
Appendix 5 

Unclaimed Property Questionnaire for States

11. Based on the attached list of federal agencies, what is the total 

dollar amount for these agencies? 

 State 

Amount of 

Unclaimed Assets 

1 California $1,217,644

2 Maine 33,000

3 Maryland 127,117

4 Michigan 112,048

5 Nebraska 6,000

6 Nevada 47,279

7 New Jersey 64,857

8 Ohio 146,435

9 Rhode Island 1,234

10 South Carolina 77,703

11 South Dakota 3,242

12 Texas 1,329,023

13 Vermont 16,282

14 Wyoming 1,500

TOTAL $3,183,364 

12. How many property accounts are maintained in your State’s 

unclaimed property database? 

29 states reported unclaimed asset accounts of over 49.7 million, with the 

number of accounts ranging from 49,000 to 18 million. 

13. Of the number of accounts in #12, can your database identify 

the number of unclaimed federal properties? 

Responses

a. Yes 13

b. No (skip to #15) 17 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 44
Appendix 5 

Unclaimed Property Questionnaire for States

14. Based on the attached list of federal agencies, how many 

accounts represent federal unclaimed properties? 

State* 

No. of Federal 

Asset Accounts 

California 1666

Florida 895

Maine 70

Maryland 76

Mississippi 14

Nebraska 28

Nevada 83

New Jersey 45

New York 673

Ohio 193

South Carolina 144

South Dakota 14

Texas 1,976

Vermont 26

Wyoming 10

TOTAL 5,913

* States replying to this question may not have

replied to question #11 and vice versa. 

15. What was the total dollar amount of unclaimed properties 

reported to your State in year 2000? 

28 states reported that they received unclaimed assets of over $1.5 billion 

in 2000, with asset amounts ranging from $2.3 million to $370 million. 

16. Since 1990, has the dollar amount of unclaimed property 

accounts reported to your State each year: (check one) 

Responses

a. Increased 34

b. Decreased 3

c. Remained the same 1 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 45
Appendix 5 

Unclaimed Property Questionnaire for States

17. How many unclaimed property accounts were reported to your 

State in year 2000? 

25 states reported that they received unclaimed asset accounts of 

approximately $2.7 million in 2000, with the number of accounts ranging 

from 1,329 to 400,000.

18. Since 1990, has the volume of unclaimed property accounts 

reported to your State each year: (check one) 

Responses

a. Increased 35

b. Decreased 2

c. Remained the same 1 

19. Does your State’s unclaimed property database track each 

property’s activities, beginning with the receipt of the property 

to when its claim was paid? 

Responses

a. Yes 33

b. No 0

Reporting

20. How are unclaimed property reported to your State? 

 (check all that applies) 

Responses

a. Hardcopy (paper) reports 37 

b. Reporting software, disks, 

magnetic tape 

33 

c. Via internet 4

d. Other 0

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 46
Appendix 5 

Unclaimed Property Questionnaire for States

21. Does your State audit holders to ensure that they are reporting 

unclaimed properties as required? 

Responses

a. Yes 31

b. No (skip to #23) 4 

22. How often are the holders audited? (check one) 

Responses

a. More than once a year 0 

b. Once a year 2 

c. Once every 2 years 0 

d. Once every 3 or more years 19 

Federal Agency Claims

23. Has your State paid claims to federal agencies? 

Responses

a. Yes 32

b. No (skip to #26) 1 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 47
Appendix 5 

Unclaimed Property Questionnaire for States

24. Based on the attached list of federal agencies, list the federal 

agencies that your State has paid since 1990. 

12 states paid the following federal agencies since 1990:

Federal Agency Paid* 

Department of Agriculture 

United States Courts 

Department of Defense 

Federal Communications Commission 

Federal Deposit Insurance Corporation 

Federal Emergency Management Agency 

Government Printing Office 

Department of Health & Human Services 

Department of Housing & Urban Development 

Department of Interior 

Department of Justice 

Department of Labor 

United States Postal Service 

Small Business Administration 

Social Security Administration 

Department of Transportation 

Department of Treasury 

Department of Veterans Affairs 

* Federal agencies could be any unit within the department. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 48
Appendix 5 

Unclaimed Property Questionnaire for States

25. List the dollar amount paid to each federal agency listed in #24. 

Of the 12 states, 6 paid federal agencies the following amounts: 

Federal Agency Paid* Amount Paid

Department of Agriculture $1,432 

Department of Commerce 167 

United States Courts 30 

Department of Defense 318 

Department of Education 43 

Federal Communications Commission 135 

Federal Deposit Insurance Corporation 65,000 

Federal Emergency Management Agency 302 

Government Printing Office 54 

Department of Health & Human Services 390 

Department of Housing & Urban Development 5,380 

Department of Interior 2,144 

Department of Justice 5,480 

United States Postal Service 54,085 

Small Business Administration 34 

Social Security Administration 5,662 

Department of Transportation 250 

Department of Treasury 142,619 

Department of Veterans Affairs 5,454 

TOTAL $288,980

* Federal agencies could be any unit within the department. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 49
Appendix 5 

Unclaimed Property Questionnaire for States

26. Can your State’s unclaimed property database track the status 

of claims? 

Responses

a. Yes 35

b. No (skip to #29) 2 

27. Can the unclaimed property database identify the claimants for 

each claim? 

Responses

a. Yes 35

b. No (skip to #29) 1 

28. Based on the attached list of federal agencies, what is the 

dollar amount of outstanding claims made by federal agencies? 

At least 7 federal agencies have $300,000 in outstanding claims in 7 states. 

The federal agencies could be any unit within the department. 

29. Based on the attached list of federal agencies, list the agencies 

that file claims on a regular basis, such as annually, with your

state. 

Among the 7 states that responded, they indicated that 7 federal agencies 

file claims on a regular basis. The federal agencies could be any unit within 

the department. 

30. What types of support documentation does your State require federal 

agencies to provide when submitting claims? (check all that applies) 

Responses

a. Proof of ownership 24 

b. Certified indemnity agreement 13 

c. Proof of authority to claim property on behalf of federal agencies 33 

Other: 

• Federal employee identification. 

• Same required forms for all claimants. 

d. 

• Depends on asset value and type of asset. 

6 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 50
Appendix 5 

Unclaimed Property Questionnaire for States

31. If a property has multiple owners, are all owners required to file 

a claim before your State pays the claim? 

Responses

a. Yes (skip to #33) 17 

b. No 13

32. Will your State pay claims made by partial owners of properties 

belonging to multiple owners? 

Responses

a. Yes 20

b. No 5

33. Does your State pay interest on claims? 

Responses

a. Yes 14

b. No 22

34. Does your State assess a service charge for processing claims? 

Responses

a. Yes 2

b. No 35

35. Can federal agencies submit one claim form to claim multiple 

properties?

Responses

a. Yes 17

b. No (skip to #37) 19 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 51
Appendix 5 

Unclaimed Property Questionnaire for States

36. Can federal agencies submit one claim form to claim properties 

for multiple agencies? 

Responses

a. Yes 10

b. No 20

37. Is there a deadline by which claims must be filed? 

Responses

a. Yes 0

b. No (skip to #39) 37 

38. What is the filing period for federal unclaimed properties? 

Not applicable. 

Correspondence with Federal Agencies

39. Does your State allow the U.S. Department of Treasury to 

claim properties belonging to other federal agencies? 

Responses

a. Yes 19

b. No 11

40. Has the U.S. Department of Treasury, Financial Management 

Services (FMS) or Departmental Office (DO) requested 

assistance from your State, to help identify federal unclaimed 

properties?

Responses

a. Yes 10

b. No (skip to #42) 18 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 52
Appendix 5 

Unclaimed Property Questionnaire for States

41. When did your office last correspond with FMS or DO? (check one) 

Responses

a. Less than 1 year ago 5 

b. 1–2 years ago 3 

c. 2-3 years ago 0 

d. More than 3 years ago 2 

42. If federal agencies provided your office with a list of owner 

names, would your State help agencies identify federal 

properties?

Responses

a. Yes 33

b. No 3

43. What can federal agencies do to encourage cooperation from 

your State with regards to identifying federal properties? 

• Provide federal unclaimed asset contact information and listings of 

agency names. 

• Avoid requesting assistance during states’ busy season, generally during 

October and November. 

• States may charge a fee to offset asset identification costs. 

• Remit federally held unclaimed assets to states. 

• Periodically request federal asset search. 

• Use state unclaimed property websites to search federal assets on your 

own. 

• Provide proof of authorization to claim federal assets. 

• Allow states to redeem outstanding Treasury checks and bonds. 

• Be patient. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 53
Appendix 5 

Unclaimed Property Questionnaire for States

Outreach Efforts

44. Is your State required to notify owners of unclaimed properties? 

Responses

a. Yes 23

b. No 12

45. Does your State notify federal agencies of their unclaimed properties? 

Responses

a. Yes 21

b. No (skip #46 and #47) 12 

46. How do you notify the federal agencies? (check all that applies) 

Responses

a. Send notices to individual owners’ last known address 10 

b. Send notices to individual owners after researching their 

most current address 

3 

c. Publications, newspapers, newsletters, public 

announcements, etc. 

20 

Other: 

• Respond to agencies’ asset search requests. 

• Research asset owner’s most current address. 

• Notify owners of new unclaimed assets received. 

• Post unclaimed asset information on state websites. 

• Send claim forms to agencies. 

d. 

• Notify via phone, State fairs, or town clerk. 

10 

47. How often does your State notify federal agencies of their 

unclaimed properties? (check one) 

Responses

a. Less than once a year 0 

b. Once a year 17 

b. More than once a year 3 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 54
Appendix 6 

Owners of Unclaimed Federal Assets 

 Federal Department Owners8 California Maryland Nevada New Jersey South Carolina Texas Total Per Dept. 

1 Department of Agriculture* $11,683 $3,434 $22,400 $58,543 

2 AMTRAK $790 $790 

3 Department of Commerce* $3,742 $1,200 $5,026 $9,968 

4 United States Congress $97 $97 

5 Consumer Product Safety Commission $119 $119 

6 United States Courts $11,021 $83,120 $94,141 

7 Department of Defense* $130,172 $728 $1,832 $3,674 $27,610 $164,016 

8 Department of Education* $2,313 $32,542 $34,855 

9 Department of Energy* $2,293 $1,336 $382 $4,011 

10 Environmental Protection Agency* $260 $227 $6,952 $898 $8,337 

11 Federal Communications Commission* $3,790 $180 $1,135 $165 $403 $5,673 

12 Federal Deposit Insurance Corporation* $138,972 $157 $90 $188,015 $327,234 

13 Fed. Emergency Management Agency* $350 $855 $981 $2,186 

14 Federal Home Loan Bank $660 $660 

15 Federal National Mortgage Association $19,843 $19,843 

16 Federal Reserve Board* $3,352 $4,379 $22,659 $30,390 

17 Federal Trade Commission* $45,000 $45,060 $90,060 

18 General Accounting Office $59 $59 

19 General Printing Office* $467 $2,730 $147 $3,344 

20 General Services Administration* $7,755 $15,230 $4,601 $146 $14,623 $42,355 

21 Government National Mortgage Assn.* $115,425 $5,163 $307 $531 $5,498 $126,924 

22 Dept. of Health & Human Services* $11,820 $39,214 $390 $168,520 $219,944 

23 Dept. of Housing & Urban Development* $29,495 $1,965 $606 $61,205 $93,271 

24 Department of Interior* $20,695 $250 $6,302 $27,247 

25 Interstate Commerce Commission $850 $850 

26 Department of Justice* $33,161 $871 $717 $432 $53,366 $88,547 

27 Department of Labor $34,523 $77 $208 $33,755 $68,563 

28 Library of Congress $577 $577 

29 National Aeronautics & Space Admin. $1,359 $1,359 

30 National Archives & Records Admin. $160 $160 

31 Office of Personnel Management* $1,602 $1,762 $3,364 

32 Peace Corps $1,460 $1,460 

33 Pension Benefit Guaranty Corporation $482 $482 

34 United States Postal Service* $52,452 $1,618 $1,070 $1,670 $35,626 $92,436 

35 Railroad Retirement Board $90 $90 

36 Sallie Mae $912 $912 

37 Securities & Exchange Commission* $9,404 $125 $1,090 $51,924 $62,543 

38 Small Business Administration* $4,230 $3,196 $1,498 $462 $14,980 $8,013 $32,379

39 Smithsonian Institution $1,213 $1,213 

40 Social Security Administration* $9,215 $494 $13 $1,189 $10,911 

41 Department of State* $5,555 $110 $8,817 $14,482 

42 Department of Transportation* $77,981 $168 $5,477 $83,626 

43 Department of Treasury $423,777 $61,759 $19,383 $28,390 $296,987 $830,296 

449 Department of Veterans Affairs * $69,198 $8,517 $4,534 $1,017 $122,040 $205,306 

TOTAL $1,217,644 $127,117 $47,279 $64,857 $77,703 $1,329,023 $2,863,623

* We surveyed 26 of the 44 federal departments. 

$21,026 

 

8 Federal department owners could include any unit within the department. 9 We identified assets belonging to one additional agency. However, we were unable to determine the dollar amount of the assets. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 55
Appendix 7 

Schedule of Potential Revenue Enhancements 

The estimated potential revenue enhancement comprises of two 

components. One component relates to amount of outstanding 

unclaimed federal assets identified during the audit. The other is 

the estimated interest costs that Treasury could have potentially 

avoided, assuming the collected assets would have reduced 

Treasury’s debt borrowings. The following potential revenue 

enhancement will be recorded in the Inventory, Tracking, and 

Closure system. This potential revenue enhancement will also 

be included in the OIG Semiannual Report to the Congress. 

Recommendation Number Potential Revenue Enhancement Amount

Recommendations 1-8 Unclaimed Assets Outstanding $3,183,364 

 Avoidable Interest Costs $1,720,91110

 Total $4,904,275

We computed the future value of each asset to determine the 

potential interest costs. We applied the following formulas to 

our computations: 

1) FV = PV x (1 + rate)

term, where 

PV = unclaimed asset dollar amount

rate = average interest rate of a Treasury 10-yr note. We computed 

the average rate based on the decade of when the assets 

were received through 2001. For example, we applied the 

average rate of 8.35% for all assets received in the 1980s. 

See below for the rates.

term = number of years the assets were held through 2001 

Decade When Assets 

 Were Received Average Interest Rate

 1970s 8.33% 

 1980s 8.35% 

 1990s 6.48% 

 2000s 5.53% 

2) interest cost avoided = FV - PV

 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 56

10 This amount is the avoidable interest costs for $2.8 of the $3.2 million outstanding federal assets. We were not able to

determine the receipt dates necessary to compute the interest costs for the remaining $400,000 of unclaimed federal assets. 
Appendix 7 

Schedule of Potential Revenue Enhancements 

It is AIC management's responsibility to record, in the 

Inventory, Tracking, and Closure system, the dollar amount of 

revenue enhancement associated with its final action on these 

recommendations. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 57
Appendix 8 

Management Comments

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 58
Appendix 8 

Management Comments

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 59
Appendix 8 

Management Comments

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 60
Appendix 8 

Management Comments

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 61
Appendix 8 

Management Comments

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 62
Appendix 8 

Management Comments

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 63
Appendix 8 

Management Comments

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 64
Appendix 9 

Major Contributors to This Report

Western Region

John A. Richards, Supervisory Auditor 

Helen K. Wong, Auditor-in-Charge 

Garrett W. Gee, Auditor-in-Charge 

Jack S. Gilley, Auditor 

Craik T. Wells, Auditor 

Counsel to the Inspector General

Ric Doery, Assistant Counsel 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 65
Appendix 10 

Report Distribution

The Department of the Treasury

Director, Office of Accounting and Internal Control 

Director, Office of Financial Management Service 

Director, Office of Strategic Planning and Evaluations 

Director, Office of Public Affairs 

Office of Management and Budget

OIG Budget Examiner 

State Contacts Visited

Chief, Division of Collections, State of California 

Administrator, Unclaimed Property Division, State of Nevada 

Manager, Unclaimed Property, State of Texas 

State Survey Respondents

35 states and the District of Columbia, see Appendix 4 for a 

complete listing. 

Federal Efforts to Recover Unclaimed State-Held Assets 

Face Many Challenges and Obstacles 

Page 66