Finding Text
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.