Finding Text
Criteria:According to North Carolina G.S. 159-29, which were rewritten by Section 9 of Session Law 2022-53, effectiver on January 1, 2023, and applied to all fidelity bonds renewed after that date, a finance officer should be bonded for an amount of the greater of $50,000 or 10% of the unit's annual budget, up to $1,000,000.Condition:For the year ended September 30, 2024 no information could be obtained to show that the finance officer was bonded and in fact it appears taht there may have been a lapse in all insureance coverage due to nonpayment of preiums.Effect:Misappropriation or loss of assets due to lacke of insurance coverage.Cause:Lack of oversight by the Board.Recommendation:The Authority needs to insure that all policies premiums are paid up and insurance coverage has been reinstated. Bonding of the finance officer should be at required levels.Views of Responsible Officials and Planned Corrective Actions:We agree with this finding and the Authority will increase the amount of the fidelity bond and insure that all insurance policies are up to date.