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.