Fiscal Controls

fiscal controls risk management

Poor Fiscal Controls Mean Poor Funding Outcomes for Everyone

Poor fiscal controls can result in increased potential for fraud and loss of capital. This is the concern of every legitimate sponsor, borrower, investor and lender to manage.

Everyone seeks to prevent poor fiscal controls from becoming poor funding outcomes in business. Whether your business is developing and constructing a massive CRE property or operating a small B2B services business, fiscal controls are supposed to eliminate fraud, embezzlement, diversion and/or management execution failures of various kinds. The iCREDIT Program directly addresses the fiscal controls issues in a way that is both efficient and cost-effective:

  • Funds Custody. All funds go into an escrow account managed by a separate fiduciary pursuant to a set of escrow instructions. The escrow instructions provide the requirements that allow for efficient administration of A/P, A/R and even distributions to the sponsor and/or investors. None of the parties can access or divert the funds and none of the parties can prevent the administration of the escrow account from working in accordance with contracted requirements. The funds custody program component acts as the “money cop” to help make sure parties get what they are entitled to receive and when they are entitled to receive it. The fiduciary is fully-bonded for everyone’s protection and that means everyone can sleep a little better each night.
  • Audit Trail. The funds custody program is an audit trail component that serves to verify payment eligibility and then payment completion of each transaction event. This additional cross-check provides an additional layer of proactive fraud protection for everyone’s benefit.
  • Execution Risk. The funds custody and audit trail functions also serve to provide communications to impacted project team members regarding the status of their work requirements in real-time, thus reducing the specter of execution risk failures due to human error just that much more.
  • Reporting. The funds custody program element is part of the overall reporting program function. When a transaction event occurs the fiduciary system informs iCREDIT of the result of the transaction request so that a new set of updated financial statements are made immediately available to all interested parties.

iCREDIT unleashes the potential opportunity to not only safeguard capital, but to increase operating margins, save management reporting function time and expense, and eliminate human errors that can cause defaults. iCREDIT can be easily demonstrated to have the potential to increase your operating margin and decrease your operating liabilities on Day 1. Find out more by talking to us today.