As discussed in prior posts, the Missouri preneed audit process begins with a notice to the preneed seller for the production of documents and data. After a review is made of the documents, data and the annual reports filed with the State Board, an on-site examination is scheduled with the seller. Most Missouri preneed sellers
Exams/audits
Missouri’s Document Production Request
By Bill Stalter on
The examination of a Missouri preneed seller begins with a request that certain documents be submitted to the State Board within 3 weeks. The purpose for the document production is to allow the examiner to perform a desk audit of the seller’s operable documents before an on-site visit is made. From those documents the examiner…
Missouri’s Examination: an idea of what to expect
By Bill Stalter on
The new era of preneed exams and audits got off to a slow start in Missouri, but now there are indications the process is picking up speed. The first notices of preneed financial examinations went out to sellers last January, and some are now going through on-site examinations. A second wave of examination notices has gone out, and the State Board has begun preparations for…
I’m a funeral director, not a fund manager!
By Bill Stalter on
Preneed scandals in Illinois, Missouri, Texas, and California have state regulators moving to implement new audit procedures. But with new laws passed in the wake of NPS and state master trust problems, the frequency and scope of the future audit could change dramatically. It is no secret that the scope of the preneed audit in…
The Preneed Database: another audit tool
By Bill Stalter on
As reported previously in the blog, the State of Nebraska began to implement a preneed contract database in 2010 when master trusts were requested to provide individual contract data in an electronic format. The request was expanded to all preneed sellers in 2011.
Kansas Secretary of State sought legislation in 2010 for the authority to…
Continuing the search for preneed exams
By Bill Stalter on
The Missouri State Board of Embalmers and Funeral Directors staff has some new faces, and in contrast to most rookies, these newcomers are playing pivotal roles in developing examination procedures for the state’s preneed funeral sellers. The Division of Professional Registration chose personnel with prior auditing experience, but as these ‘rookies’ are learning, there is…
The Independent Preneed Trustee: In a Perfect World
By Bill Stalter on
A breakdown in communications between the CFDA and the Cemetery and Funeral Bureau has resulted in the California Attorney General filing a lawsuit that can be appropriately described as vitriolic. The “California lawsuit” could provide some valuable ‘what to avoid” lessons for regulators in other states.
In an unusual move, the Bureau went…
Delegating Preneed Prosecution
By Bill Stalter on
Maybe it’s a response to shrinking state budgets, or the fact that the tracking of preneed funds is becoming more effective, but state and local prosecutors are assuming an expanding role in the enforcement of preneed laws.
While a recent report released by the Missouri State Board of Embalmers and Funeral Directors reflects a drop…
Groundhog Day in Missouri: Preneed Exams before Spring
By Bill Stalter on
The start of Missouri’s new era of preneed oversight began when document requests were mailed to sellers on January 3rd. Sellers were requested to provide the following documents by January 28th:
· A current statement from your state or federally chartered financial institution’s authorized to exercise trust powers in Missouri of any preneed trust accounts…
Missouri’s Trust Funded Report: perserving self regulation
By Bill Stalter on
The ‘deadline’ for Missouri preneed sellers to ‘voluntarily’ report their pre-SB1 trust funded sales is a mere two weeks away. Again, this is a voluntary report. As such, missing the ‘deadline’ or failing to use the Board’s form carries no penalty to the preneed seller. So, why file?
The reason expressed by one State…