Escheats/Unclaimed Property for Title IV Funds

All unclaimed Payroll, Payable & Receivable Accounting checks are to be escheated to the State of Michigan after one (1) year, as set by the State of Michigan guidelines, except for Title IV Financial Aid Funds.

Effective January 2005, federal regulations stipulate that if a university has a refund check due to escheat to the State of Michigan that includes Title IV financial aid funds, the university must instead return the Title IV funds to the appropriate aid program. Below are the guidelines for this process:
1    Once the outstanding check list is run by the Administrative Control Clerk, a review of the refund checks is necessary to determine if the refund check was for Title IV funds. (Use the FIFO system - first in, first out).
2    If the refund check was not for Title IV funds, proceed with the Stale-dated check process.
3   If the refund check was for Title IV funds, per the attached regulations, the refund check must be "voided" back to the student account for the entire amount of the refund check. (A portion of the refund check may only be Title IV funds). The portion that is Title IV funds must be returned to the Title IV program before the refund check is escheated to the State of Michigan.
4   The Systems Data Entry Clerk will "void" the entire refund check back to the student account.
5   The Systems Data Entry Clerk will make a debit entry on the student account (AADJ) for the amount of the Title IV funds and credit the cost center and general ledger account that Accounting Services designates, Fund 10000000, G/L 200600. A note will be placed on the SQAC screen.
6   The Systems Data Entry Clerk will send an email notice to the Financial Aid Office indicating the students names, SS#, Title IV program(s), aid year and $ amount that has been credited to the designated account (which Accounting Services will specify). We will call this account the "Escheats Title IV Account."
Financial Aid will then issue a check for the Title IV funds from the "Escheats Title IV Account" and send a check back to the appropriate aid program.
8   The Systems Data Entry Clerk will reconcile the "Escheats Title IV Account" monthly.
Central Michigan University • 1200 S. Franklin St. • Mount Pleasant, Mich. 48859 • 989-774-4000