Swinson Funeral Service placed on probation [The Free Press, Kinston, N.C.]

Nov. 14--The operators of Swinson Funeral Service of Kinston have been placed on one year's probation after inspectors with the N.C. Board of Funeral Service noticed several instances of incomplete record-keeping regarding "preneed" contracts.

Anyone who wishes to make funeral arrangements prior to their death can enter into a preneed contract with a funeral home licensed by the state to perform that service.

"You're talking about people investing in end-of-life arrangements and they are sometimes spending what is, to their family, a significant amount of money ... we need to make sure that their money is being protected," Peter Burke, executive director of the Board of Funeral Service -- and a licensed funeral director -- said Tuesday.

The members of the board issued a consent order Oct. 17 placing the business, plus funeral home President Robert Swinson IV, on one year's probation.

Swinson risks further sanctions, up to losing his funeral director's license, as well as the funeral home's funeral establishment permit, its preneed establishment license and "all ancillary preneed sales licenses" if the terms of the probation are violated, according to the consent order.

Board officials sent the consent order to The Free Press this month.

Swinson Funeral Service has been in business in Kinston for more than 40 years. The East Blount Street business opened in 1970 and was founded by Swinson's late grandfather, Robert Swinson Jr.

The chapel at the funeral home is named in his honor.

Sitting in his office Tuesday, Robert Swinson IV, who also serves as a Kinston city councilman, described the process of executing a pre-need contract, which includes filing the contract with the Board of Funeral Service, and either a life insurance company or banking trust, within five business days after it is completed.

Consumers can pay the insurance company directly, or send insurance or trust payments through the funeral home.

Funeral providers must keep detailed files of payments and other necessary paperwork, and a "preneed journal," a ledger of all consumers who have preneed contracts with them.

The state board regularly sends inspectors to visit funeral providers and ensure all preneed records are up to speed.

Board Inspector Brett Lisenbee visited Swinson Funeral Service on Oct. 25 and 26, 2011, and spoke with Swinson and his father, Robert Swinson III, who is the funeral home's manager.

Lisenbee's review of the preneed records turned up several files which were missing documents such as insurance assignment documents or beneficiary designations.

One consumer's estate was also due a $26.50 refund, according to the consent order.

The inspector's findings prompted action by the state board.

"We look to make sure that when a family gives money to the funeral provider, that the provider is recording it correctly and in a timely fashion and all of their reporting is done in a timely fashion as well," Burke said.

The consent order noted Swinson Funeral Service operators have since "corrected, addressed, or satisfactorily explained, respectively, to the Board each and every one of the alleged violations cited in the 2011 Examination."

Swinson said the funeral home can be extremely busy at times, and paper records are still used.

"By Jan. 1, everything should be in a computer system and we shouldn't have these hiccups again," he said.

Swinson said interviews are currently being conducted to hire several part-time staffers to help with record-keeping, as well.

David Anderson can be reached at 252-559-1077 or [email protected]. Follow him on Twitter at DavidFreePress.

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