(1) A licensed
entity shall prepare and provide accurate work papers to the Department for the
purpose of an examination.
(2) Work
papers provided by the company shall include at least the following information
for each contract:
(a) Sequentially ordered
contract number;
(b) Contract type
(i.e., void or cancelled);
(c) Date
of contract;
(d) Payments received
during examination period;
(e)
Total trust liability;
(f) Trust
liability percentage;
(g) Prior
liability accrual;
(h) Current
examination liability accrual;
(i)
Prior total withdrawals from Trust; and
(j) Current withdrawals from Trust.
Paragraphs (2)(d) and (2)(f) may be provided on the accounts
receivable records, as separate identifiable entries, in lieu of the work
papers. For the purposes of this rule, trust liability and accruals should be
detailed by trust funds as applicable (i.e., Care and Maintenance, Merchandise,
Preneed, Preconstruction, and Special Care).
(3) Current examination work papers shall
include all new contracts written during the examination period and all
contracts written in prior examination period with transactional activity
and/or trust liability remaining to be accrued. Work papers should include page
totals for all applicable items and a grand total.
(4) Work papers that are not substantially
similar in form to Examination Workpapers, Form DFS-EW-1, which is incorporated
by reference in Rule
69K-1.001, F.A.C., shall be
submitted for approval to the Division of Funeral, Cemetery, and Consumer
Services, Department of Financial Services, 200 East Gaines Street,
Tallahassee, Florida 32399-0361. Such format shall have a reasonable audit
trail that can be followed.
(5)
This rule is applicable to all contracts written under Sections
497.458,
497.268,
497.272 and
497.464, F.S., on or after
October 1, 1993.
(6) The Department
shall give the licensee at least 45 days notice of the scheduled examination to
provide sufficient time for the work papers preparation.
