An audit by the Alabama Department of Examiners of Public Accounts found that the Alabama Family Trust Board, the state body responsible for overseeing supplemental-needs trusts for individuals with disabilities, had violated state law regarding board vacancies and public meeting requirements.
The Board also oversees the Alabama Family Trust Corporation and its related trusts, which allow families to set aside funds to supplement, rather than replace, government benefits for individuals with mental or physical impairments.
Beneficiaries often rely on the trust to pay for services or needs that are not covered by government programs. The Board also administers the Alabama Family Trust Charitable Trust, which provides addition-0al support in cases where individual trust funds are insufficient.
The audit, conducted from October 2019 through September 2024, focused on whether the Board properly accounted for public resources and complied with statutes governing its operations.
Auditors did not report problems with the handling or safeguarding of funds. Instead, the issues centered on governance and transparency. According to the report, the terms of eleven Board members expired during the audit period, and two other vacancies occurred, but the Board did not notify the Secretary of State as required.
State law mandates 45 day advance notice when a member’s term is ending and a 15 day notification window for vacancies caused by resignation or other circumstances.
When those notices are not filed, potential candidates and interested parties can’t apply for the open seats, and the state loses a layer of public accountability intended to ensure broad participation in appointments.
The audit also found the Board failed to provide public notice for several of its meetings. In at least four instances, the Board did not file required notices with the Secretary of State, and in two other cases, notices were filed but not within the seven-day minimum established under the Open Meetings Act.
That law applies to all state bodies with statewide jurisdiction and is designed to give citizens the opportunity to attend meetings when decisions are being made. The lapses meant the public had no meaningful chance to attend or observe the Board’s proceedings at those meetings.
While the audit did not identify financial mismanagement, it noted that the transparency issues could affect public confidence in the board overseeing resources used by individuals with disabilities.
Auditors recommended that the Board meet all vacancy-notification deadlines and file meeting notices with the Secretary of State at least seven days before each meeting, as required by law.
