Current through Register Vol. 45, No. 52, December 27, 2023
(a) Every
medium cemetery corporation shall file a CPA financial review with the division
within 90 days following the close of the cemetery's fiscal year. The review
shall be conducted by an independent certified public accountant or an
independent enrolled public accountant. It shall be supplemented by the
following data:
(1) a description of the
extent of the physical examination of the cash and investments;
(2) a statement concerning the internal
controls for safeguarding the cash and investments;
(3) a statement concerning compliance with
N-PCL section 1507(c) and (d) indicating whether separate accounts are
maintained for each perpetual care endowment, 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 such account to be used in future years;
(4) a statement concerning the
accountability for the permanent maintenance fund, indicating whether the
cemetery's records separately identify cumulative principal reflecting
allocations from the proceeds of the sales of lots and from supplemental
sources, cumulative capital gains or losses from investments, and the retained
income available for the maintenance and preservation of the cemetery; and
(5) a statement concerning the
accountability for the perpetual care fund, indicating whether the cemetery's
records separately identify cumulative principal for endowment, cumulative
capital gains or losses, and the cumulative income retained for use in future
years.
(b) Every large
and non-traditional cemetery corporation shall file a CPA financial audit with
the division within 90 days following the close of the cemetery's fiscal year.
The audit shall be conducted by an independent certified public accountant or
an independent enrolled public accountant expressing an opinion in connection
with the financial statement filed with the division. The opinion shall be
supplemented by the following data if applicable to the filing cemetery:
(1) a description of the extent of the
physical examination of the cash and investments;
(2) a statement concerning the internal
controls for safeguarding the cash and investments;
(3) a statement concerning compliance with
N-PCL section 1507(c) and (d) indicating whether separate accounts are
maintained for each perpetual care endowment 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 such account to be used in future years;
(4) a statement concerning the
accountability for the permanent maintenance fund, indicating whether the
cemetery's records separately identify cumulative principal reflecting
allocations from the proceeds of the sales of lots and from supplemental
sources, cumulative capital gains or losses from investments, and the retained
income available for the maintenance and preservation of the cemetery;
and
(5) a statement concerning the
accountability for the perpetual care fund, indicating whether the cemetery's
records separately identify cumulative principal for endowment, cumulative
capital gains or losses, and the cumulative income retained for use in future
years.
(c) For any
non-traditional cemetery, the opinion shall also be supplemented by the
following data if applicable to the filing cemetery:
(1) a statement indicating whether funds,
accounts, assets, and liabilities of the cemetery corporation are kept separate
and distinct from the funds, accounts, assets, and liabilities of any related
for-profit entity;
(2) a statement
indicating whether the income and expenses of the cemetery corporation are kept
separate and distinct from the income and expenses of any related for-profit
entity; and
(3) a statement
indicating whether any transaction between the cemetery corporation and any
related for-profit entity are arm's length, fair and reasonable.
(d) The division may, upon
application by a medium or large cemetery, modify the reporting requirements
for such cemetery if the cemetery demonstrates to the satisfaction of the
division that the requirements of this section and the cost of compliance are
onerous and unreasonable and may, upon evidence of possible financial
irregularity or non-compliance, order a small or medium cemetery to comply with
the requirements of paragraph (b) of this section.
Amended
New
York State Register March 9, 2016/Volume XXXVIII, Issue 10, eff.
3/9/2016
