regarding audit best practices, our consultant advised the holder to reach out to us if they ever found themselves in an uncomfortable or vulnerable situation during the examination. Years passed, and the holder eventually reached out to Sovos after receipt of audit findings exceeding $15,000,000 . Due to the aggressive timelines and seemingly impossible remediation efforts, the holder felt it had done everything reasonably possible and exhausted all options to reduce the liability. Once engaged, Sovos conducted a thorough review of the participating state(s) and scheduled properties. In a span of five months , Sovos reduced the potential liability by over $14,000,000. What the holder thought would be a never-ending audit quickly finished after engaging the Sovos team. Example #2: A third-party audit firm representing multiple states notified a holder of an unclaimed property audit. After Sovos conducted a thorough assessment, which included reviewing policies and procedures, performing a risk assessment and developing a mitigation plan, Sovos assisted the holder with gathering, reviewing and providing the information applicable to the participating states to the auditor. Sovos also helped respond to the auditor’s questions and inquiries and participated in all audit-related discussions. The preliminary schedule of findings included nearly $3,000,000 in presumptive unclaimed property. However, after applying rigorous mitigation strategies on the schedule of items provided by the auditor, the initial amount was reduced to less than $200,000 . Conclusion Unclaimed property compliance in the energy sector will continue to present its challenges to the holder community due to its volatile nature. It is important that you develop strategies to potentially reduce unclaimed property exposure, ensure policies and procedures are in place to track potential unclaimed property and comply with the applicable state reporting requirements. Sovos Compliance, among many other things, can help respond to a state or auditor’s request, expedite the audit timeline, simplify the process, educate personnel regarding unclaimed property
obligations, limit organizational disruption, minimize the assessment and potential penalties and interest, and ensure the best experience for the unclaimed property owners. Take Action Learn how Sovos Unclaimed Property Consulting solutions can help you meet your compliance needs.
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NADOA Welcomes The Following New Members:
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