STATE OF MICHIGAN DEPARTMENT TREASURY …

1 72 (Rev. 04-15) RICK SNYDER GOVERNOR STATE OF MICHIGAN DEPARTMENT OF TREASURY lansing January 23, 2018 Rick Lowe, Dir ctor Office of Internhl Audit Services Office of the St te Budget George W. Ron;mey Building 111 South Capitol, 6111 Floor lansing , MI 4$913 I I Dear Mr. Lowe!NICK A KHOURI STATE TREASURER In accordance i,ith the STATE of MICHIGAN , Financial Management Guide, Part VII, the following is our correctiie action plan to address recommendations contained within the Office of the Auditor General's Performance Audit of Unclaimed Property, Report Number 271-0130-16, from October I; 2014-September 30, 2016. rJcommendations the agency complied with:Finding #1 - Enhanced review of contractor activities recpmmend that Unclaimed Property obtain a SOC 2, type 2 report from itscontractpr who serves as the custodian of unclaimed securities transferred to the :i A risk a sessment to determine the necessity of a SOC 2, type 2 report was conducted bythe Offipe of Internal Audit Services, in conjunction with TREASURY , and the results wereprovide to Unclaimed Property on June 20, 2017.

2 The risk assessment determined that aSOC 2 Jis not warranted. Per the risk assessment, the SOC 1 report, as provided byUnclaimed Property's vendor, is sufficient to ensure appropriate controls exist within our. ! .. service lj) rdcommendations the agency agrees with and will comply: NoneI r commendations the agency disagrees with: None430 WEST ALLEGAN STREET lansing , MICHIGAN 48922 517-373-3200 Page 2 Should you have any questions regarding the corrective action plan, please contact Bruce Hanses at 517-636-643# or at Sincerely, / Ann E. Good, }feputy STATE Treasurer Financial and dministrative Services Cc: Mike , Executive Office Wendy Wisniewski, Executive Office Doug Ringler, Office of the Auditor General Rob Vef Heulen, House Appropriations Sub-committee Jim Sta:rhas, Senate Appropriations Sub-committee Lee Ch tfield, House Standing Committee Arlan Meekhof, Senate Standing Committee Mary Aim Cleary, House Fiscal Agency Ellen Jerfries, Senate Fiscal Agency Nick KJtouri, TREASURY Bruce anses, TREASURY Terry S(anton, TREASURY Stacey :$liesener, TREASURY Mike Williams, Office of Internal Audit Services Doug Rposa, Office of Internal Audit Services Francis !

3 J'helen, Office of Internal Audit Services Signature Redact