Section 1700-02-01-.07 - EXAMINATION OF BOOKS AND RECORDS(1) Factors the Treasurer may consider in determining whether to commence an examination or participate in an examination initiated by another state regarding a Person pursuant to T.C.A. § 66-29-158 include, but are not limited to: (a) Whether the Person fails to report types of unclaimed Property typically reported by like Persons;(b) Whether amounts on a Holder's Report or amounts remitted from the Holder are not comparable to those received from similar Holders;(c) Whether governmental agencies or other reliable sources have provided information indicating that a Person may be holding unclaimed Property that has not been reported;(d) Whether the Unclaimed Property Division has received evidence or complaints of failure by the Person to send any required notice to an Apparent Owner; and(e) Whether an examination has been initiated by another state or more than one state.(2) The Unclaimed Property Division shall provide written notice of the examination to the Person under examination at least thirty (30) days prior to the commencement of the examination. The notice shall include the contact information for both the examination firm (if applicable) and the Unclaimed Property Division.(3) The Examiner shall contact the Person subject to examination to schedule an entrance conference. At the entrance conference, the Examiner shall provide the Person with the following information:(a) Identification of other states (if any) participating in the examination;(b) Tentative timeline and duration of the examination;(c) Description of the respective responsibilities of the Person subject to examination and the examination firm;(d) Identification of the potential types of records subject to examination;(e) Identification of the time period subject to examination; and(f) Explanation of the examination methods, including estimation techniques that may be used by the examination firm for those periods where records are not available or are insufficient.(4) The examination may include, but shall not be limited to:(a) Records of current accounts, dormant accounts and accounts that may have been closed and archived;(b) Verification of contractual agreements regarding the deduction of service charges; increases or decreases in account value; and interest payments;(c) The Person's policies and procedures, including annual procedures for reviewing dormant accounts.(5) If a Person subject to examination does not maintain the records required by T.C.A. § 66-29-126 and the records of the Person available for the periods covered by the examination are insufficient to permit the preparation of the Report, the Treasurer may determine the Person's liability under the Act based on the amount the Treasurer reasonably estimates, on the basis of any available records of the Person or by any other reasonable method of estimation, should have been but was not reported. Prior to the conclusion of the examination, the Examiner shall provide written notice to the Person containing the estimation methodology to be used and for which years during the time period covered by the examination estimation will be used. The Person subject to examination may object to the estimation methodology by following the process outlined in T.C.A. § 66-29-163.Tenn. Comp. R. & Regs. 1700-02-01-.07
Original rule filed October 26, 1978; effective January 29, 1979. Amendment filed September 4, 1996; effective January 28, 1997. Repeal and new rule filed December 4, 2018; effective 3/4/2019.Authority: T.C.A. §§ 66-29-104, 66-29-113, 66-29-130, and 66-29-158.