Finding 21023 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-08

AI Summary

  • Core Issue: A loan's required life insurance policy lapsed, and the District failed to document follow-up actions.
  • Impacted Requirements: Loans must be covered by life insurance to ensure protection against default.
  • Recommended Follow-Up: The District should improve documentation of follow-ups on lapsed coverage, including call details and outcomes.

Finding Text

SA-2022-01 ? SIGNIFICANT DEFICIENCY Federal Program: 11.307 - Economic Adjustment Assistance Condition: During our testing of Economic Development Cluster Loans, we noted an instance where a loan required Life Insurance policy lapsed, the District did not thoroughly document their follow up in the lapse in coverage. Criteria: Loans are required to be covered by life insurance. Effect: Without life insurance the loan may not be covered. Cause: The District did not document their follow up on the lapsed coverage. Recommendations: We recommend that the District thoroughly documents their process of follow up to lapse coverage. Management?s Response: Management agrees that all follow ups on life insurance policy lapses will include information about the purpose of the call, the phone number called, the date and time of the call, and whether a voicemail was able to be left.

Corrective Action Plan

Issue: During the Auditor?s testing of Economic Development Cluster Loans, they noted an instance where a loan-required Life Insurance policy lapsed and the District did not thoroughly document their follow up in the lapse in coverage. Loans are required to be covered by life insurance. Without life insurance the loan may not be covered. Recommendation: The Auditor recommends that the District thoroughly documents their process of follow up to lapse coverage. Action Taken: Management agrees that all follow ups on life insurance policy lapses that are made by telephone will include information about the purpose of the call, the phone number called, the date and time of the call, and whether a voicemail was able to be left.

Categories

Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
11.307 Covid-19-Economic Adjustment Assistance $654,641
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $301,943
20.509 Covid-19-Formula Grants for Rural Areas and Tribal Transit Program $176,654
10.767 Intermediary Relending Program $153,012
10.351 Rural Business Development Grant $137,045
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $82,564
20.515 Oregon Dept of Transportation - Planning $80,477
11.302 Economic Development_support for Planning Organizations $20,000
20.205 Highway Planning and Construction $16,779