Answer: The Government is not consistently checking if borrowers meet their loan covenant requirements.
Trend: This lack of analysis could lead to ongoing compliance issues with employment and insurance requirements.
List: Follow up by implementing regular checks on borrower compliance with loan covenants.
Finding Text
Loan Requirements - It does not appear the Government analyzes its borrowers loan covenant requirements for continuing compliance requirements. Specifically one instance was noted where the Government did not determine whether the borrower in question met the loan covenant requirements in relation to employment requirements and proof of insurance.
Corrective Action Plan
2023-002 - LOAN REQUIREMENTS. - WE WILL IMPLEMENT THIS RECOMMENDATION IN THE FUTURE. - JUDY BRIMM, FINANCE DIRECTOR, (641) 782-8490. - IMMEDIATELY