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MANAGEMENT & FIDUCIARY CONTROLS

Here Is How We Are Accountable:

  • New Mexico and Arizona Financial Institutions Departments’ regulatory oversight.Zia Trust is subject to strict regulatory requirements designed to ensure sound financial condition of the company and strong trust operational controls.  Regulatory requirements are included on the Board of Directors’ agenda to ensure oversight and compliance.  Read more at New Mexico Regulations and Licensing Department-Financial Institutions Division and Arizona Department of Financial Institutions 
  • Annual regulatory examination by New Mexico and Arizona regulators. Includes company financial performance, compliance with state regulations, trust administration controls, and record keeping. Zia Trust welcomes the annual examination to help ensure sound fiduciary management and trust administration.
  • Quarterly financial reports to New Mexico regulators. Includes company Income Statements, Balance Sheets, Trust Statement of Assets and Liabilities.
  • Zia Trust has active trust company Certificates of Authority, subject to the full application of Arizona trust law and the New Mexico Trust Company Act’s requirements.
  • Access to trust client investments is under dual and triple controls. No individual person has unlimited access.
  • Expenditures of trust funds are subject to dual or triple controls and strict policies. No individual person has unlimited access. Expenditures are initiated by a Trust Officer and reviewed by a Trust Associate and the Operations Department. A 4thauthorized employee signs the check. Discretionary expenditures greater than $2,000 require the approval of a quorum of the 13 – person Trust Committee. Trust Officers have limited authority to pay small and recurring expenditures.
  • Functioning Board of Directors made up of industry professionals. Monthly Board meetings with formal minutes. Formal “compliance” and “business” agendas. Annual 41 topic work plan, with disciplined review and follow-up.
  • Chief Executive Officer is accountable to the Board of Directors.
  • Accountability to 23 shareholders. Annual report, formal annual meeting, strict compliance with company bylaws. Shareholders elect company officers – President, two Vice Presidents, Secretary.
  • Formal written Policies and Procedures to ensure consistency of financial and administrative controls. Includes “time away” requirements for CEO, Controller and Operations Manager.
  • Annual review of all trust accounts. Internal review of each trust account by responsible Trust Officer on an annual basis, followed by Trust Officer peer review.
  • Monthly, quarterly or annual trust reports to trust beneficiaries. Showing all money coming into and leaving a trust account.
  • Annual financial audit conducted by an independent outside experienced CPA firm. Compliance with Generally Accepted Accounting Principles. Formal audit report and audited financial statements. Reviewed in detail by the Board of Directors. Formal “Letter to Management” with specific follow-up accountability.
  • Annual Operations Audit. Continual review of trust administration controls, and trust account reconciliations.
  • Annual investment reviews of trust accounts by an independent outside investment auditor. Requires disciplined accountability and follow-up by Trust Officers and supervisors. The review includes adherence to the investment plan, investment performance, and research of any “reportable events” to FINRA, the regulatory agency.
  • New Employee Screening. Background investigations before employment for driving record, credit history, criminal record, civil complaints, and legal judgments.
  • Employee training. Including annual updates on the New Mexico Uniform Trust Code, the underlying law that governs trust administration in New Mexico.
  • Disciplined and explicit employee access controls to Zia Trust’s trust accounting system.

These controls also describe how Zia Trust operates compared to a family member trustee or CPA firm trustee which are not regulated by Arizona or New Mexico trust company laws.

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