Scope of Work.pdf

Scope of Work

Unclaimed Property Management System

The Arizona Department of Revenue (ADOR) administers the state's Unclaimed

Property Program pursuant to A.R.S. Title 44, Chapter 3. The agency requires a continuous, specialized, secure system of record and operational infrastructure to:

1) Statutory Compliance & File Parsing: Ingest, audit, and reconcile electronic holder reports delivered in standardized NAUPA II/III formats, adhering to Arizona-specific statutory timelines and reporting requirements.

2) Public Outreach & Claim Settlement: Provide a secure, self-service online portal for claimants to search for abandoned assets, submit legal proof of ownership, and receive timely payouts.

3) Fraud Mitigation & Identity Protection: Guard state funds against identity theft, synthetic identities, and fraudulent claims using integrated validation and risk analytics prior to disbursement.

4) Complex Asset Accounting: Manage custody, corporate actions, dividends, and liquidations for both non-cash securities (stocks/mutual funds) and physical tangible assets (safe deposit box contents).

5) Interoperability: Maintain seamless data synchronization with national platforms to maximize owner recovery rates.

1. System Licensing, Architecture, and Security

1.1 System Hosting and Licensing: Provide a secure, cloud-hosted enterprise software solution and associated user licenses to support state-wide administration of unclaimed property operations.

1.2 Security and Confidentiality Compliance: Maintain strict compliance with state and federal data security standards, ensuring field-level encryption for Personally

Identifiable Information (PII) and Taxpayer Identification Numbers (TINs/SSNs), role-based access controls, and audit logging to comply with statutory confidentiality requirements.

1.3 Data Migration and Continuity: Ensure full data migration capability from existing legacy databases into the replacement system without interruption to operational workflows or loss of historical audit records.

2. Holder Reporting and Ingestion

2.1 Standardized Data Parsing: Ingest, parse, and validate electronic holder reporting files adhering to industry-standard formats (including current and future

NAUPA standards).

2.2 Self-Service Holder Portal: Deliver a secure web portal for businesses (holders) to upload file reports, complete manual reporting, submit remitted funds electronically, and view filing histories.

2.3 Holder Compliance Tracking: Provide workflow tools to track holder filings, manage voluntary compliance agreements, monitor audit engagements, and calculate statutory interest or penalties.

3. Public Search, Claim Intake, and Verification

3.1 Public Search Engine: Host an accessible, responsive public web application allowing individuals and organizations to search for abandoned property records in real time.

3.2 Online Claim Submission: Provide an automated portal for claimants to submit claims electronically, upload required identity or ownership documentation, and track claim status.

3.3 Identity and Fraud Verification: Integrate automated identity verification and risk-scoring mechanisms—such as Knowledge-Based Authentication (KBA) and dynamic data validation—to verify claimant identity and prevent fraudulent payouts.

3.4 External Clearinghouse Synchronization: Maintain compatibility and real-time data exchange capabilities with national multi-state unclaimed property search portals.

4. Financial Accounting, Asset Management, and Tax Reporting

4.1 Securities and Non-Cash Asset Management: Provide functionality to track non-cash financial instruments (stocks, mutual funds, corporate actions, dividends, etc.)

and integrate with custodian brokerage accounts.

4.2 Tangible Property Inventory: Manage inventory, vault location tracking, indexing, and auction records for physical tangible property (e.g., safe deposit box contents).

4.3 Payment Processing and Disbursement: Interface with state financial accounting systems to process claim approvals, issue disbursements, and track financial reconciliations.

4.4 Federal Tax Compliance: Automate mandatory federal tax reporting workflows, including interest calculations, Taxpayer Identification Number (TIN) validation, and the generation/e-filing of IRS Form 1099s.

5. Maintenance, Support, and Statutory Maintenance

5.1 System Updates and Business Logic Changes: Update system rules, workflows, and reporting templates to adapt to changing state statutes, administrative rules, or reporting standards.

5.2 Technical Support and Disaster Recovery: Provide system maintenance, SLA-backed technical helpdesk support, automated backups, and a robust disaster recovery plan to ensure high availability.