Purpose of Audit
The purpose of our audit was to examine the District’s provision of life insurance policies as a fringe benefit for the period January 1, 2015 through July 31, 2016.
Background
The West Hempstead Water District is located in the Town of Hempstead in Nassau County and serves a portion of the Town. The District is governed by an elected three-member Board of Commissioners. In 2015, revenue totaled approximately $4.1 million and expenditures totaled approximately $3.5 million.
Key Finding
- The District paid for individual whole life insurance coverage for seven individuals, even though there was statutory authority only to provide group life insurance.
Key Recommendation
- Review the life insurance policies and consult with District counsel to take steps to ensure that all insurance policies are permissible.