Finding Text
2022-002 Fidelity Bond
ALN Number Name of Federal Program
10.760 Water and Waste Disposal Systems
Identification as a Repeat Finding: Repeat Finding of 2021-002.
Finding:
The Association has not maintained fidelity bond coverage to comply with loan covenant requirements.
Criteria:
Per Section 5(g) of the Loan Resolution Security Agreement, the Association shall maintain insurance and Fidelity bond coverage as may be required by the Government.
Condition and context:
The Association did not carry fidelity bond coverage in 2022.
Sample size and population:
Sampling was not applicable to this finding.
Effect:
The Association did not comply with the fidelity bond requirements.
Recommendation:
We recommend the Association obtain fidelity bonds sufficient to meet the requirements of outstanding loan agreements in 2023.
Question Costs:
None
Management Response and Corrective Action Plan:
See Corrective Action Plan
Contact Person:
Kristina Parker, Director of Finance and Operations