How It Works: Newly Enrolled VDA

The following terms are used throughout the website:

  • Administrator shall refer to the Department of State and/or its outside vendor and vendor’s assignees assisting the Department of State with a review of the SOS VDA Submission packages.
  • Advocate shall refer to a third-party service provider who represents the Holder in presenting its SOS VDA Submission to Delaware.
  • DOF shall refer to the Department of Finance.
  • DOS shall refer to the Department of State.
  • Holder shall refer to a business entity which may have property reportable to Delaware. The Holder may further refer to a Holder and/or its Advocate.
  • SOS VDA Period shall refer to the report years covered in the SOS VDA Agreement. The SOS VDA Period is 10 years plus dormancy from the date the Holder enrolls in the SOS VDA Program.
  • SOS VDA Submission shall refer to the findings report presented by the Holder to the State.
  • VDA shall refer to the Delaware Unclaimed Property Voluntary Disclosure Agreement.

Enrollment

Holder:  Holder submits a signed Form VDA-1.  Form VDA-1 should be submitted electronically to sos.vda@delaware.gov

State:  State returns Holder’s counter-signed Form VDA-1 and provides details regarding next steps.

Kick-Off

Administrator:

  • Emails Holder to indicate that it has been assigned by the State to review the SOS VDA Submission.
  • Address the following documents to be completed by the Holder: Information Request, Scoping Worksheet, and Non-Disclosure Agreement (“NDA”).
  • Answers Holder’s questions regarding the VDA process, objectives and guidelines.
  • Provides Holder with expectations for the SOS VDA Program.

Holder:

  • Provides signed NDA to Administrator (if required) and completed Information Request and Scoping Worksheet.

DOS:

  • Communicates with Administrator regarding the status of the Holder’s SOS VDA.
  • Available to address any questions or concerns.

Applicable Documents:

The purpose of this phase is for the Holder to perform an analysis of the Holder’s organizational history (e.g., entity or corporate history), accounting functions and records to determine areas of potential exposure and underreporting which may require quantification in future phases.

At the conclusion of Phase 1, the Administrator and the Holder will confirm the scope of the Holder’s analysis and agree on due dates for deliverables in the other phases

Phase 1 – Deliverables

The following details the deliverables expected by each party at the end of Phase 1.

Holder:

  • Prepares the Scoping Spreadsheet and Scoping Questionnaire and submits to the Administrator.
  • Determines the entities and property types to be included in the SOS VDA as a result of the Holder’s review.

Administrator:

  • Answers the Holder’s questions about the process and the completion of the scoping documents (e.g., Scoping Questionnaire, Scoping Worksheet, etc.)
  • Reviews the Scoping Worksheet and Scoping Questionnaire completed by the Holder and addresses any questions with the Holder.

DOS:

  • Communicates with the Administrator regarding the status of the Holder’s SOS VDA.
  • Available to address any questions or concerns.

Applicable Documents:

During Phase 2, the Holder will review its books and records to identify/quantify past-due abandoned or unclaimed property reportable to Delaware for the in-scope entities and property types.

Phase 2 – Deliverables

Holder and Administrator:

  • Communicate during this Phase to ensure that the Holder’s deadlines can be reached.
  • Schedule periodic status updates, which can be accomplished via conference calls, meetings and/or emails.
  • Holder should present any questions to the Administrator, who should be available to address any questions or concerns which may arise during the course of the Holder’s review.

DOS:

  • Communicates with the Administrator regarding the status of the Holder’s SOS VDA.
  • Available to address any questions or concerns.

The Holder presents its SOS VDA Submission to the Administrator. The SOS VDA Submission should include the following, some of which should be included in a narrative form:

  • Entity or Company background information (narrative)
  • Summary of the work performed (narrative)
  • Summary of findings (narrative)
  • Supporting schedules
  • Supporting documents
  • Other applicable documentation (e.g., legal opinions, management representation letters, etc.)

Phase 3 – Deliverables

The following details the deliverables expected by each party at the end of Phase 3.

Holder:

  • Submits the SOS VDA Submission to the Administrator for review.   The SOS VDA Submission should include a narrative identifying key issues related to the Holder’s background, the analysis performed and the conclusions reached.   This narrative should be accompanied by quantification schedules.
  • Responds to the Administrator’s questions, which may include written documentation related to a matter, providing supporting documentation to answer a question and/or edits and updates to calculation spreadsheets.
  • Preparation of a management representation letter by Holder’s CFO (or other authorized officer) describing what records are available for which property types and what years.
  • Communicates with Administrator in person or via email and/or conference call.

Administrator:

  • Reviews the Holder’s SOS VDA Submission.
  • Presents questions and follow-up items to the Holder.
  • Communicate in person or via email and/or conference call with Holder.
  • Makes recommendations to the Secretary of State for closing of the VDA.

DOS:

  • Reviews the Holder’s SOS VDA Submission and the recommendations made by the Administrator (the State’s vendor).
  • Communicates with the Administrator regarding the status of the Holder’s SOS VDA.
  • Available to address any questions or concerns.

The purpose of this section is to outline the closing process and to identify the relevant documents required as attachments to Form VDA-2 – Voluntary Self-Disclosure Agreement (“Form VDA-2”) when finalizing a Delaware VDA with the State.

Once the executed Form VDA-2 has been received along with the associated exhibits, the Secretary of State will countersign the Form VDA-2, and a Demand Letter will be issued via email to the Holder Contact identified on the Form VDA-2.

The Holder will have 10 days to make payment of the amount due. Payment can be made via check or electronic transfer (wire or ACH). Information related to specific payment methods will be provided in the Demand Letter.

Phase 4 – Deliverables

The following details the deliverables expected by each party at the end of Phase 4.

Holder:

  • Form VDA-2 executed by an authorized representative or officer of the company with attachments as described above.
  • NAUPA file uploaded to the DOF website, after demand letter issued.
  • Payment of amounts reportable to Delaware, after demand letter issued.

DOS:

  • Form VDA-2 which has been signed by the Secretary of State.
  • Demand Letter sent via email to the Holder requesting payment of amount reportable to Delaware.
  • Answers Holder questions concerning processing of VDA payments and post VDA compliance.

Applicable Document: