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OIG Reports

Audit Report 9-20: Audit of Bankers Insurance Company SBA Guaranteed Bonds with Georgia Coastal Construction Group

Date Issued: 
Friday, September 10, 1999
Report Number: 
9-20

On September 10, 1999, the OIG issued Audit Report 9-20, Audit of Bankers Insurance Company SBA Guaranteed Bonds with Georgia Coastal Construction Group.  The objectives of the limited scope audit was to determine if (1) Bankers Insurance Company complied with SBA’s policies and procedures in originating bonds, and (2) the SBA was liable for the legal and consultation expenses incurred by the surety. 

The OIG found that Bankers Insurance Company complied with SBA’s policies and procedures in applying for bond guarantees, except for two omissions.  Consequently, Bankers’ underwriting of the bonds would not have precluded SBA’s approval of the bond guarantees or liability for its share of the legal and consultation expenses incurred by the surety.