California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 12 - Cemetery and Funeral Bureau › Article 8 - Preneed Funds and Disclosure of Preneed Agreements › Section 1267 - Keeping of Preneed Books, Accounts, Contracts, and Records

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Each funeral establishment charged with the reporting of
				  preneed funds hereunder shall at all times maintain or cause the trustee of the
				  preneed trust to maintain in California and available for inspection by the
				  bureau during reasonable working hours, complete financial records of all
				  preneed contracts and arrangements, which records shall be established and
				  maintained in accordance with generally accepted accounting principles. Such
				  records shall include the following, provided, however, that records may
				  otherwise be established and maintained in accordance with generally accepted
				  accounting principles:
(a) An
				individual trustor contract, plan, or agreement.
(b) An individual trustor or beneficiary
				ledger account which shall set forth the amount of the contract, all payments
				received, all disbursements made, and all income prorated in accordance with
				the ratio which the trust corpus of the account bears to the entire corpus
				invested as set forth in Section
				1265.
(c) For a licensed successor funeral
				establishment that has accepted the transfer of preneed contracts and
				arrangements from another funeral establishment pursuant to Section
				7737(c)(1) of the
				Code, a copy of the written notice to all beneficiaries, trustors, legal
				representatives of the beneficiaries or trustors, and trustees ("consumers")
				associated with the preneed funeral agreements required by Section
				7737.1(a)(4)(B)
				of the Code and proof the notice was provided as defined in Section
				1267.1.
(d) A cash receipts journal which shall show
				each payment received and be totaled monthly.
(e) A cash disbursements journal which shall
				show each withdrawal and be totaled monthly.
(f) In the case where a checking account is
				used to deposit payments received or disbursements to the funeral establishment
				and/or the funeral director, a trustor, or an investment, it shall be
				designated as a trust fund account, and be reported as such. It shall be
				reconciled each month with the balance shown in the trust account by accounting
				for checks not yet presented and outstanding, bank deposits not shown on the
				bank statements, and other adjustments required.
(g) A general ledger which shall be posted
				monthly with respect to all accounts controlling the fiduciary relationship
				with the individual trustors. Such postings shall occur within ninety (90) days
				after the close of each business month.
(h) A portfolio of all investments related to
				the trust funds.
(i) Records for
				serviced accounts shall include but not be limited to:
(1) A copy of the death certificate or other
				satisfactory evidence of the death; copies of all documents required as
				specified under Sections
				7685
				and
				7685.2
				of the Business and Professions Code; a copy of the final arrangements
				(itemized); and a copy of the final statement to the family.
(2) All monies received from the trust; all
				monies received from the family; and all monies received from the Veterans
				Administration or Social Security or any other source to be applied to the
				final bill.
(3) A record showing
				credit for each of the above.