Cedar Memorial Company Merchandise & Service Trust - U S Bank Na Trustee

“U s bank performs services to the trust as a trustee and investment advisor. U s bank's services as an investment advisor are governed by the trust's investment policy as well as the investment committee of the trust. U s bank and the investment committee meet on a quarterly basis to evaluate compliance with the investment policy and comparison of investment returns with applicable benchmarks.”

“The trustee is the custodian and record keeper of the trust's assets and therefore maintains a record of all of the trust's transactions. The trust's transactions are reviewed and reconciled to the information reported on the form 990, before the form 990 is filed.”

“Pursuant to a trust agreement between cedar memorial park cemetery association, inc. And u.s. Bank, n.a., u.s. Bank is appointed trustee of this trust established by the association. The trust is managed for the benefit of pre-need contract purchasers and/or beneficiaries. Therefore, the trustee's actions are governed by the trust agreement as well as a written investment policy. The trustee reports the trust transactions to the officers of the association on a monthly basis and those transactions are reviewed by the association and reconciled to the association's records on a monthly basis. On a quarterly basis, the trustee meets personally with association officers/investment committee to review transactions and trust performance. On an annual basis, the trustee provides written disclosure to the association officers of any interests that could give rise to conflicts, or confirms that there are not any interests that could give rise to any conflicts.”

“The compensation of u s bank as trustee and investment advisor is computed based on a percentage of the market value of the assets under management as well as per transaction fees. U s bank's fees are subject to review monthly by the investment committee and are evaluated on an annual basis for reasonableness versus comparable trustees/investment managers.”

“The trust makes its governing documents, conflict of interest policy or financial statements available to public inspection upon request. In addition, pursuant to iowa code 523a.204 1., a preneed seller shall file with the commissioner not later than april 1 of each year an annual report on a form prescribed by the commissioner. As well, iowa code (523a.206 examinations-authority and scope) states, 1. The commissioner may conduct an examination under this chapter of any seller as often as the commissioner deems appropriate. If a seller has a trust agreement, the commissioner shall conduct an examination of such seller doing business in this state not less than once every five years unless the seller has provided to the commissioner, on an annual basis, a certified copy of an audit conducted by an independent certified public accountant verifying compliance with this chapter.”

“Written whistleblower policy as of 10-31-2016 the trust itself did not have a written whistleblower polcy. However, the trustee, u s bank did have a written whistleblower policy in place.”

“Written document retention and destruction policy as of 10-31-2016 the trust itself did not have a written document retention and destruction policy. However, the trustee, u s bank did have a written document retention and destruction policy in place.”

“Voting members of governing body us bank as trustee is the sole voting member of the governing body. Us bank is trustee of a common trust fund created by the cedar memorial park cemetery association to deposit funds received from sales of cemetery merchandise, funeral merchandise, funeral services or combination thereof. Iowa code section 523a.201 establishment of trust funds states in part, "a seller must establish a trust fund prior to advertising, selling, promoting or offering cemetery merchandise, funeral merchandise, funeral services or a combination thereof in this state as follows: 1. The trust fund must be established at a financial institution. Furthermore, iowa code section 523a.203 1. States, "a financial institution may serve as a trustee if granted those powers under the laws of the this state or of the united states. A financial institution acting as a trustee of trust funds under this chapter shall invest the funds in accordance with applicable law."”

“Exempt purpose achievements the funds deposited with the trustee are deposited in connection with the sale of funeral merchandise and service in advance of need. These sales are made in accordance with chapter 523a of the law of the state of iowa. That law provides that a minimum of eighty percent of the amount received in connection with each separate contract of sale of the covered merchandise must be deposited into a trust fund at an insured bank, savings and loan association or credit union, to be held in trust until the death of the person for whose benefit the funds were paid. Section 523a.202 should be particularly noted since it provides that the funds should be either held in separate accounts or in a common trust fund in trust for the designated beneficiary. The taxpayer is trustee of a common trust fund created by the cedar memorial funeral home company to deposit funds pursuant to the aforementioned iowa statute. The funds are commingled for investment purpose, but account records are kept for the purpose of determining the amount to be withdrawn from the fund for a refund or when the seller has delivered the merchandise and service and/or as allowed under iowa chapter 523a and iowa chapter 101. It has long been recognized that even under these circumstances each trust would still be considered as separate trusts, see helvering v mcilvaine, 296 u s 488, 36-1 u s t c 9041 and u s trust of new york v comm., 296 u s 481, 36-1 u s t c 9040. The combined gross income of the 2,778 separate trust funds for the fiscal year ended october 31, 2016 is $463,513. Total combined deductions for that same year are $438,498. The income and deductions for each individual trust can be supplied on request. The income and expenses of all of the above-described trusts are reported in this form 990 for the year ended october 31, 2016. Combined reporting is used because of the identical nature of each of the 2,778 trusts. All of the trusts were created by the same depositor, all of the trusts have the same trustee and all of the trusts are exempt under section 501(c)(13) pursuant to an exemption letter dated december 14, 1984. The trust funds are held in a common trust. No purpose would be served by filing 2,778 separate forms 990. The return for this trust has been filed on this basis beginning with the year ended october 31, 1983.”