Mich. Admin. Code R. 567.5 - Notice of commencement of examination

Rule 5.

(1) When the examination will be conducted by an auditor solely on behalf of this state, or with at least 1 other state, the administrator shall notify a person that the state intends to conduct an unclaimed property examination of that person. All of the following apply:

(a) For examinations conducted solely on behalf of this state, the examination authorization notice shall be sent from the administrator directly to a corporate officer or the resident agent of the person subject to examination. Both of the following apply:

(i) The notice shall state that the state will conduct an examination of the person and shall provide the name of the authorized auditor that will conduct the examination.

(ii) The notice shall include the telephone number and address of the administrator or his or her designee and shall state that the administrator or his or her designee will address any questions that the person may have regarding the examination.

(b) For examinations conducted by this state and at least 1 other state, the administrator shall send an examination authorization notice directly to the auditor. All of the following apply:

(i) The multistate audit notice will occur when the auditor has collected authorizations from the participating states and provides them to the person subject to examination.

(ii) The examination authorization notice shall contain the telephone number and address of the administrator or his or her designee. The notice will contain a copy of the third party authorization signed by the administrator or his or her designee.

(iii) Nothing contained in this rule shall be construed to prohibit other states from participating in the multistate audit where the person subject to the examination agrees to allow such participation.

(2) For purposes of a streamlined audit, notice is not completed until the person subject to examination receives both the notice of commencement of the examination and a proposed nondisclosure agreement. The auditor and the person subject to examination shall make a good faith effort to reach agreement on a nondisclosure agreement within 30 days after receipt of the notice of commencement of the examination and a proposed nondisclosure agreement.

Notes

Mich. Admin. Code R. 567.5

2017 MR 5, Eff. 3/21/2017