54.1-2333 - Financial report and written assurance required for preneed trust accounts. - Virginia Statutes

§ 54.1-2333. Financial report and written assurance required for preneedtrust accounts.

A. The cemetery company shall report the following information to the Boardwithin four months following the cemetery company's fiscal year, on formsprescribed by the Board:

1. The total amount of principal in the preneed trust account;

2. The securities in which the preneed trust account is invested;

3. The income received from the trust and the source of that income duringthe preceding fiscal year;

4. An affidavit executed by the compliance agent that all provisions of thischapter applicable to the seller relating to preneed trust accounts have beencomplied with;

5. Forty percent of the total receipts required to be deposited in thepreneed trust account;

6. All expenditures from the preneed trust account; and

7. If the trustee is other than a Virginia trust company or trust subsidiaryor a federally insured bank or savings institution doing business in theCommonwealth, proof that the required fidelity bond has been secured and thatit is in effect.

B. The cemetery company shall employ an independent certified publicaccountant to audit and provide assurance that 40 percent of the cashreceipts from the sale of preneed property or services not to be delivered orperformed within 120 days after receipt of the initial payment on account hasbeen deposited in the account within 30 days after the close of the month inwhich the payment was received. Such audit shall provide full disclosure ofany transactions between the preneed trust account and any directors,officers, stockholders, or employees of the cemetery company, or relatives ofthe cemetery company's employees, and shall include a description of thetransactions, the parties involved, the dates and amounts of thetransactions, and the reasons for the transactions.

C. The information required to be filed hereunder with the Board shall beexempt from the Government Data Collection and Dissemination Practices Act (§2.2-3800 et seq.).

(1998, cc. 708, 721; 2000, c. 36; 2004, c. 247.)