Dormant Account and Unclaimed Monies Policy
1. OBJECTIVE / INTENT
This policy outlines the requirements of the Unclaimed Money Act 2008 (Vic) (Victorian Act), Unclaimed Money Act 2015 (Tas) (Tasmanian Act) and Unclaimed Money Act 1990 (WA) (WA Act), Unclaimed Money Act 1995 (NSW) (NSW Act) and Public Trustee Act (QLD) (QLD Act), (collectively the Legislation), in so far as they apply to any CDF Community Fund and funds held in ‘CDF Community Fund Accounts’.
Funds held in ‘CDF Community Fund Accounts’ are characterised as:
(a) funds that are held in a fixed term account which automatically renew for the same fixed term until the account is closed;
(b) funds that are held in a fixed term account which upon expiry of the term, roll over to become a non-fixed term account where no deposit or withdrawal has occurred until the account is closed; or
(c) funds that are held in a non-fixed term account where no deposit or withdrawal has occurred, until the account is closed.
Procedures for identifying monies before they may become unclaimed monies and the treatment of such funds have been developed to ensure compliance with the Legislation and to ensure that such monies held by the CDF Community Fund (where permitted) are readily identifiable should a claim be made by the account holder at some time in the future.
STEPS TAKEN TO DEAL WITH FUNDS BEFORE THEY BECOME UNCLAIMED MONEY:
2. DEFINITION OF DORMANT ACCOUNTS:
‘Dormant accounts’ are deemed by the CDF Community Fund to be those CDF Community Fund Accounts which have not been operated on for a period greater than 7 years (excluding accounts that are classified as a Student Accounts these are to be handled separately in line with 4. below).
‘Operation’ is deemed by the CDF Community Fund to be either a self-initiated (by account holder) withdrawal or deposit. The crediting of interest to fixed term CDF Community Fund Accounts are included as operation. However, non-fixed term CDF Community Fund Accounts that have only interest credited to the accounts for the last 7 years and are also considered uncontactable (no response to either an email, mail or telephone call) are classified as dormant.
3. PROCESS FOR HANDLING DORMANT ACCOUNTS:
i. No interest is to be paid on dormant accounts and the account is to be flagged as such.
ii. The CDF Community Fund will periodically contact potential dormant account holders to confirm the status of their account and to advise of the Dormant Account and Unclaimed Monies Policy implications including the application of a dormant account fee.
iii. Accounts identified as dormant and with balances less than $20 will be closed.
iv. Accounts identified as dormant and with balances $20 or greater will be charged:
a. An initial $20 dormant account fee; and
b. A further $5 per quarter dormant account maintenance fee.
c. Accounts will be marked as dormant until the account is either classified as unclaimed monies or the account reaches a nil balance (at which point in time the account will be closed).
v. Customers approaching the CDF after their account has been identified as dormant will have fees refunded and be paid the balance of their account. An appropriate adjustment to income/reserves will be made accordingly.
4. PROCESS FOR HANDLING STUDENT ACCOUNTS FROM THE AGE OF 18:
The individual holding a student account that turns 18, will receive notification from the CDF Community Fund providing the following options:
i. Transitioning to a Parishioner account;
ii. Donating the funds to the CDF (please note that this gift is not a tax deductible gift or donation).
iii. Returning the funds to the individual;
iv. In the instance of no reply, the account will automatically be transferred to a parishioner account and flagged as dormant.
5. DEFINITION OF UNCLAIMED MONIES:
Whereby the CDF Community Fund needs to comply with more than one State legislation for unclaimed monies then the CDF Community Fund is to take the more onerous position.
In the instance of VIC & WA State legislation, a CDF Community Fund Account that has not been operated for 25 years will be deemed as ‘unclaimed’’.
If the CDF Community Fund holds unclaimed money, the CDF Community Fund must comply with its obligations under the relevant Legislation.
6. COMPLIANCE WITH RELEVANT LEGISLATION FOR UNCLAIMED MONIES:
The State Act applies to company, person, firm, body or institution, where the State of the last known address of the account is in, even if the CDF Community Fund carries on business in Victoria.