Cotton & Company LLP
Certified Public Accountants
333 North Fairfax Street, Suite 401
Alexandria, Virginia 22314
U.S. SMALL BUSINESS ADMINISTRATION
OFFICE OF INSPECTOR GENERAL
WASHINGTON, D.C. 20416
Issue Date: September 21, 2001
To: Robert J. Moffitt
Associate Administrator, Office of Surety Guarantees
From: Robert G. Seabrooks
Assistant Inspector General for Auditing
Subject: Audit of Farmington Casualty Company
Attached is the audit report on Farmington Casualty Company issued by Cotton & Company LLP. The report discusses the following issues: (1) claim payments were not
supported by invoices or other proof of claim for two bonds, (2) status reports were not requested and maintained for one bond, and (3) SBA was not notified in a timely manner of the default of the principal for one bond.
You may release this report to the duly authorized representative of Farmington Casualty Company. The findings included in this report are based on the auditors’ conclusions. The findings and recommendations are subject to review, management decision, and corrective action by your office in accordance with existing Agency procedures for audit follow-up and resolution.
Please provide us your proposed management decision for each recommendation on the attached forms 1824, Recommended Action Sheet, within 80 days.
This report may contain proprietary information subject to the provisions of 18 USC 1905. Therefore, you should not release this report to the public or another agency without
permission of the Office of Inspector General. Should you or your staff have any questions, please contact Robert Hultberg, Business Development Programs Group at (202) 205-7577.
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