Current through August, 2024
(a) A licensee
selling pre-need services or holding money in trust for pre-need funeral
services shall file with the director an audited financial statement which
shall file with the director an audited financial statement which shall include
the following special areas of concern:
(1)
The amount collected for the year pursuant to pre-need arrangement contracts or
plans or any agreements collateral thereto; and
(2) An accounting of the principal deposits
and additions to principal for the year to include an analysis of the time
frame within which deposits are made to principal after receipt by the
licensee; and
(3) An accounting of
any withdrawal from the principal for the year, itemized as to the nature of
the expenditures; and
(4) The total
amount of principal and income held at the end of the year; and
(5) A statement showing separately the total
amount of the trust fund invested in each of the investments authorized by this
chapter and the amount of cash principal on hand not invested.
(b) A licensee operating a
cemetery or a cemetery holding perpetual care funds shall file with the
director an audited financial statement which shall include the following
special areas of concern:
(1) The amount
collected for the year as payment for perpetual care; and
(2) Accounting of the principal deposits and
additions to principal for the year, including an analysis of the time frame
within which deposits are made to principal after receipt of final payment by
the licensee; and
(3) A statement
concerning whether separate accounts are maintained, reflecting the principal
amount, the income apportioned for the year, the cost of care charged for the
year, and the excess of income credited to the trust account to be used in any
future years; and
(4) A statement
showing separately the total amount of the perpetual care funds invested in
each of the investments authorized by this chapter, and the amount of cash on
hand not invested; and
(5) A
statement of the general operations of the cemetery, including current
maintenance, reflecting income and expense or receipts and disbursements. The
principal sources of revenue and expense are to be detailed. The statement
shall also include a summary of payroll costs indicating by classification
cemetery labor, office, administrative and supervisory, and officers and
trustees salaries.
(c)
The audited financial statement described in subsections (a) and (b) shall be
prepared by a certified public accountant or a public accountant licensed in
this State, and each report shall contain a certificate prepared and signed by
the accountant regarding the financial statements given or made in each report
and each statement shall fully and accurately report the position and financial
condition of the trust fund.
(d)
Whenever a licensee fails to file an audited financial statement, the director
may cause an audit of the funds to be made, the cost of which shall be borne by
the licensee. If any licensee refuses to pay the expense for the audit within
fifteen days of the completion thereof it shall be cause for disciplinary
action against the licensee pursuant to chapter
91, HRS.
