Section 16-75-31 - Audited financial statement(a) A licensee selling pre-need services or holding money in trust for pre-need funeral services shall file with the director an audited financial statement which shall file with the director an audited financial statement which shall include the following special areas of concern: (1) The amount collected for the year pursuant to pre-need arrangement contracts or plans or any agreements collateral thereto; and(2) An accounting of the principal deposits and additions to principal for the year to include an analysis of the time frame within which deposits are made to principal after receipt by the licensee; and(3) An accounting of any withdrawal from the principal for the year, itemized as to the nature of the expenditures; and(4) The total amount of principal and income held at the end of the year; and(5) A statement showing separately the total amount of the trust fund invested in each of the investments authorized by this chapter and the amount of cash principal on hand not invested.(b) A licensee operating a cemetery or a cemetery holding perpetual care funds shall file with the director an audited financial statement which shall include the following special areas of concern:(1) The amount collected for the year as payment for perpetual care; and(2) Accounting of the principal deposits and additions to principal for the year, including an analysis of the time frame within which deposits are made to principal after receipt of final payment by the licensee; and(3) A statement concerning whether separate accounts are maintained, 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 the trust account to be used in any future years; and(4) A statement showing separately the total amount of the perpetual care funds invested in each of the investments authorized by this chapter, and the amount of cash on hand not invested; and(5) A statement of the general operations of the cemetery, including current maintenance, reflecting income and expense or receipts and disbursements. The principal sources of revenue and expense are to be detailed. The statement shall also include a summary of payroll costs indicating by classification cemetery labor, office, administrative and supervisory, and officers and trustees salaries.(c) The audited financial statement described in subsections (a) and (b) shall be prepared by a certified public accountant or a public accountant licensed in this State, and each report shall contain a certificate prepared and signed by the accountant regarding the financial statements given or made in each report and each statement shall fully and accurately report the position and financial condition of the trust fund.(d) Whenever a licensee fails to file an audited financial statement, the director may cause an audit of the funds to be made, the cost of which shall be borne by the licensee. If any licensee refuses to pay the expense for the audit within fifteen days of the completion thereof it shall be cause for disciplinary action against the licensee pursuant to chapter 91, HRS.[Eff 11/19/87; comp 1/21/92] (Auth: HRS §§ 441-19, 441-20.5) (Imp: HRS §§ 441-24.5, 441-20.5, 441-23)