CFB audit shows late reporting for preneed trust filings; bureau to send warning letters as citations remain steady

The bureaus audit and enforcement units updated the advisory committee on reporting compliance and enforcement activity at the Oct. 23 meeting.

Audit manager Michelle Arthur (presentation introduced by Gina Sanchez) said cemetery annual reports are 74% timely, noting 22% of authorities are not yet due or have requested extensions; funeral‑establishment preneed trust annual reports are only 52% timely, prompting the bureau to begin issuing approximately 400 warning letters to licensees more than 30 days late. Quarterly cemetery reports were timely at 95% and crematory quarterly reports at 87%; the bureau reported four alkaline hydrolysis facilities in its counts.

Sanchez explained a warning letter is primarily educational and that continued noncompliance can lead to enforcement action and citations. She said the bureau would prefer compliance through outreach rather than pursuing a large volume of citations.

On enforcement, Sanchez reported completed inspection numbers typically range between about 1,100 and 1,200 annually. The bureau indicated complaints and citations have been stable: it issued 217 citations during the reported period and filed six matters with the Attorney Generals office in the fiscal year (with 10 formal discipline cases completed the prior year). The bureau identified common cemetery violations (failure to pay the quarterly regulatory charge of $11.50 per cremation, maintenance standards such as sunken gravestones, weeds and rodents) and common funeral-establishment violations (failure to designate a manager, failure to display licenses, and failure to provide required cost/service information one click from the home page).

What happens next: The audit unit will send warning letters and log responses; the bureau will monitor for subsequent compliance and pursue enforcement where education does not produce filings.