Fund and Trust Administration

Since 1989, de maximis has assisted clients in establishing and administering funds and trusts for the investigation, remediation, operations and maintenance of environmental projects. As an Environmental Project Management firm, de maximis recognizes the unique needs of PRP groups and clients in maintaining and administering funds for the remediation of environmental liabilities. de maximis presently administers hundreds of accounts with several hundred million dollars in assets. We have developed and maintain banking relationships which allow us to provide cost effective fund services and quickly resolve problems if they arise. We utilize experienced accountants to prepare appropriate tax returns. Each of our funds and trusts are administered according to relevant IRS regulations in conjunction with the trust agreement or other guidance document. We provide the flexibility and security to meet the objectives of our clients.

Investment decisions by clients may have an impact upon the tax liability and resulting rate of return, and we work with our clients to establish accounts appropriate for short-term and longer-term projects. de maximis does not directly offer investment options or advice; rather, we serve as the administrator of the funds and utilize various financial institutions to provide our clients with access to a wide variety of both taxable and tax-free investment options. We are experienced in administering funds invested in U.S. Treasuries, Government Securities, U.S. Agencies, Brokered CDs, Corporate Bonds, Preferred Securities, Investment Grade Bonds, Zero Coupon Bonds, Municipals and Mutual Funds. Investments can be “laddered” to mature when cash is needed. We can also assist in the establishment of funding agreements where desired.

Fund-related services provided by de maximis include:

Establishment of the Fund and Trust. This includes review and acceptance of a trust or other agreement with the group/client. A bank account established under the tax identification number (if needed). An accounting system is established to meet the reporting needs of the client and potential tax reporting needs. An appropriate filing and accounting system is established to adequately maintain records and provide the flexibility to establish a record keeping system to meet the reporting needs of the client.

We currently administer Environmental Remediation Trusts, Qualified Settlement Funds, Financial Assurance/Standby Trusts, Escrow accounts, and simple checking accounts to meet the various needs of our clients.

Process Cash Calls. Many trusts or funds operate on a quarterly cash protocol; we can issue cash assessments based upon any frequency desired by the client. Our system tracks the receipt of payments against the cash call, recording the date of payment and identifying any outstanding payments.

Budget Tracking. The fund management system allows us to incorporate a budget provided by the client or the Project Manager. Reports can be prepared to compare the actual expenditures to the approved budget.

Maintain Financial Records and Reports. de maximis generally maintains financial records on an accrual basis and tax reports are filed accordingly. de maximisprovides standard financial reports including (but not limited to) Balance Sheet; Income Statement; Cash Flow Statement; Accounts Payable; Ledger; Accounts Receivable Ledger; Cash Disbursements; and Cash Receipts. We can generate other reports desired by the client.

Invoice Payment – Cash Disbursements. The method of paying invoices submitted to the trust is generally specified by the client. de maximis currently prepares disbursements through checks, wire transfers and ACH transfers. Disbursements are prepared by in-house staff upon the receipt of approval from the client (with the exception of direct bank charges to the account). We tailor the disbursement process to any method or specific requirements of the client.