Delaware verified report – A five step guide

Many companies will be filing their State of Delaware unclaimed property (UP) reports by March 1, 2025, which will likely usher in another wave of Delaware verified report (DE VR) notice distributions to the UP-holder community. These notices are not issued directly by the State of Delaware but rather by experienced third-party audit firms (Auditors) that will be carefully evaluating responses to ascertain if a company is a good candidate for future enforcement. Therefore, while responding to the DE VR seems straightforward, responses must be thoughtful, thorough, complete and accurate.

Whether a company files a report with an amount due, a negative report (if required in special circumstances), or no report at all to Delaware, it is still possible to receive a DE VR Notice in 2025, even if one was already received for a prior year filing. Our recent article, Delaware targets companies: VDA invitations and verified report requests, provides a brief overview of the DE VR process. However, if a company receives a DE VR Notice, we have prepared a five step guide to assist in developing a timely and thorough response.

1. Verified report - Attestation of reporting form: It’s important to respond timely to the DE VR Notice. A company has a total of 180 days from the date of the notice to fully respond to the DE VR Notice and provide the requested documentation. The attestation indicates that financial statements and related records of the company and its subsidiaries and affiliates (listed in Attachment A - see below) have been reviewed to determine if there are reportable liabilities. Before selecting an attestation option and signing the form, a more thorough review of the legal entities listed in Attachment A is sometimes warranted to ensure that all properties were reported. If a review leads to the discovery of unreported liabilities, the company can file a supplemental report within the 180-day period allowed to meet the DE VR response deadline. For a complete listing of reportable liabilities, see the Delaware Code online.
2. Attachment A: List of legal entities included in the verified report: This list can be a blueprint for a future inquiry and, along with other documents submitted, will be thoroughly examined by the Auditors. Therefore, it should