MINUTES REGULAR BOARD MEETING
SEPTEMBER 15, 1999

The North Carolina Board of Mortuary Science met for a duly scheduled Board Meeting on September 15, 1999 at 9:00 a.m. in the Board office located at 2321 Crabtree Boulevard, Raleigh, North Carolina.

Present: Darryl Hart, President; Jimmy Swaringen; Elliott Futrell; Paul Harris and Julia Jordan.

Also Present: Andrew Ritter, Executive Director; and Michael Weisel, Attorney for the Board.

President Hart called the meeting to order.  He thanked everyone for braving the bad weather to attend the meeting.  Mr. Futrell gave the invocation.  President Hart called for the reading of the minutes of the July 14, 1999 meeting.  In the absence of Ms. Rorie, Mr. Ritter presented the minutes.  Mr. Futrell made a motion that the minutes be approved as written.  Mr. Harris seconded.  The motion carried.

President Hart called for the following committee reports:

A written report of the September 14, 1999 Disciplinary Committee meeting was distributed for the Board’s review and Mr. Swaringen gave a brief oral report.  Mr. Harris asked several questions regarding several actions taken.  Mr. Hart asked several questions regarding several actions taken.  Mr. Swaringen stated that by accepting this report, the Board was authorizing payment from the Recovery Fund in reference to the John Gray matter with no interest being paid as recommended by the Preneed Committee.  Mr. Futrell made a motion that the report be accepted. Ms. Jordan seconded.  Motion carried.

Mr. Hart asked Mr. Ritter to give the financial report.  Mr. Ritter reported that the 1998 audit was completed and the auditors provided a management letter that was being provided to the Board.  Mr. Ritter explained that he has responded to the management letter and also has provided that to the Board.  Mr. Ritter stated that the audit showed that the Board is in solid financial condition and in addition there were no concerns about the financial recordkeeping or financial status of the Board.  Mr. Futrell asked if the Board had to pay the State according to the preneed Statute requirements.  Mr. Ritter responded that the Board did not have to pay the State this year.  Mr. Swaringen asked about the debt that the internal divisions were carrying and Mr. Ritter stated that the new auditors have indicated that the new accounting system has eliminated the need for carrying that debt.  Mr. Swaringen made a motion to accept the auditor’s report.  Mr. Futrell seconded.  Motion carried.

Mr. Ritter asked the Board members to review the August financial reports.  Mr. Harris asked for clarification on several line items on the Comparative Income Statement.  Mr. Ritter reported that due to re-classification of line items with the new accounting system some budget figures will be different but for the year there are no items that were significantly over or under budget.  The auditor has asked that renewal received for the year 2000 that is received in 1999 be accrued and recognized as income for the year 2000 which will result in the appearance of a budget shortfall.  Mr. Harris made a motion that the July and August Financials be accepted.  Motion carried.

Mr. Swaringen reported on a meeting that he, Mr. Weisel and Mr. Ritter had with two attorneys and a researcher with the North Carolina Department of Insurance.  He stated that the meeting was productive and the Department of Insurance indicated that they would not tell the Board what they can or cannot do but will instead be available for guidance and assistance.  Mr. Swaringen reported that the Department of Insurance indicated that there was nothing wrong with the Board requiring that the funeral home become owner of the preneed policy through assignment.  Mr. Swaringen stated it was the preneed committee’s recommendation to the Board that in regards to the preneed contracts, that on irrevocable contracts, that the funeral home be made owner by assignment and that the Board provide an assignment form for those that want to use it.  A lengthy discussion ensued.  Mr. Hart asked for clarification on the motion.  Mr. Swaringen restated the motion that it was the committee’s recommendation that on irrevocable preneed contracts, the funeral home be made owner by assignment and that the Board provide an assignment form for those that want to use it.  Mr. Hart called for the vote.  Mr. Futrell and Mr. Swaringen voted for the motion.  Mr. Hart and Mr. Harris voted against the motion.  Ms. Jordan abstained citing her newness to the Board and lack of knowledge on the subject.  Mr. Hart stated that the issue will be revisited at the next Board meeting and the questions on the declaratory ruling will also be discussed at that time.

A motion was made by Mr. Futrell to send out the election ballots in the mail by September 20, 1999, have them returned on October 8, 1999, and count them on October 12, 1999 at 1:00 p.m. at the Board office.  The committee meetings and any hearings will be held on October 11, 1999.  Mr. Harris seconded.  Motion carried.

Mr. Harris reported that Todd Van Beck would be honoring his commitment to give the Board’s continuing education seminar on December 7, 1999.  Mr. Van Beck is asking for an honorarium in the amount of $500.  Mr. Futrell made a motion to pay Mr. Van Beck the honorarium and Mr. Swaringen seconded.  Motion carried.  Mr. Harris gave a report on the Governor’s Crime Commission Child Maltreatment Fatality Committee and asked the Board members to review a draft.

The Board was reminded of the Crematory Authority Continuing Education Seminar on September 23, 1999.

It was reported that staff member Rod Grier has resigned from the Board to pursue an opportunity with another company.  The Board will fill the position as soon as possible.

A motion was made by Mr. Futrell to spend up to $75 on staff for special occasions such as birth of a child, wedding or death in the family.  Mr. Harris seconded.  Mr. Hart asked how this item would be placed in the budget and Mr. Ritter advised that it would be placed under miscellaneous.  Motion carried.

The Director reported that the “Annual Preneed Report to the General Assembly” was ready to be mailed and upon approval will be sent to the General Assembly.  Mr. Swaringen made a motion to forward the report to the General Assembly.  Mr. Futrell seconded.

Mr. Kelly Alexander of Alexander Funeral Home submitted a letter that raised the issue of whether a funeral home can place a coupon in the form of advertising in the newspaper or in the yellow pages.  Mr. Swaringen reported that the disciplinary committee has asked Mr. Weisel and Noel Allen to research this issue and report back to the Board at a future board meeting.

It was reported that all the renewal cards have gone out.

It was reported that the Mutual Burial Association Statute has been signed into law.  The Statute dictates that the Board has to provide two forms for the MBA to use.  The forms are ready and will be sent to the Board for their review and approval.

Several pieces of correspondence were introduced into the record and are attached to the Minutes.

Mr. Weisel stated all his matters were discussed during the regular meeting and had nothing further to report.

There being no further business, the meeting was adjourned.

	Darryl Hart, President
	Jimmy Swaringen