Termination Memorandum: Treasury's Pre-award Process for SSBCI Program Funds (OIG-CA-25-044, May 21, 2025)

Summary

Termination memorandum OIG-CA-25-044, dated May 21, 2025, from Pauletta P. Battle, Acting Assistant Inspector General for Audit in the Department of the Treasury Office of Inspector General, to Gregory Till, Acting Chief Program Officer, Office of Capital Access. It ends the audit (S-SC-23-006), begun in January 2023, of Treasury's pre-award process for State Small Business Credit Initiative program funds of approximately $1.5 billion for socially and economically disadvantaged business owners. The memo states that the office paused the audit to focus on other pandemic-related programs, and that GAO issued SSBCI audit reports in February 2023 and June 2024. Citing considerable overlap with GAO's audit objectives, the office calls a further audit redundant and will remove it from its Monthly Status Report.

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Cite this document

“Termination Memorandum: Treasury's Pre-award Process for SSBCI Program Funds (OIG-CA-25-044, May 21, 2025).” Original at www.oversight.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-oig-oig-ca-24-044-termination-memorandum-au-8dfc9cdf33/, SHA-256 29a18ac5cbcb59732d54a514187a7c8ce2d0cca87d33323fbb3600961e773981.

Full text

                                            DEPARTMENT OF THE TREASURY
                                                  W ASHINGTON, D.C. 20220




     OFFICE OF
INSPECTOR GENERAL
                                                   May 21, 2025

        OIG-CA-25-044

        MEMORANDUM FOR GREGORY TILL
                       ACTING CHIEF PROGRAM OFFICER, OFFICE OF CAPITAL
                       ACCESS

        FROM:                          Pauletta P. Battle /s/
                                       Acting Assistant Inspector General for Audit

        SUBJECT:                       Termination Memorandum – Audit of the Department of the
                                       Treasury‘s Pre-award Process for the State Small Business
                                       Credit Initiative (SSBCI) Program Funds for Socially and
                                       Economically Disadvantaged Business Owners for States,
                                       U.S. Territories, and Tribal Governments (S-SC-23-006)

        In January 2023, we initiated an audit of the Department of the Treasury’s
        (Treasury) Pre-Award Process for the SSBCI Program Funds for Socially and
        Economically Disadvantaged Business Owners for States, U.S. Territories, and
        Tribal Governments. Our objective was to assess Treasury’s administration of the
        pre-award process for SSBCI’s program funds of approximately $1.5 billion for
        socially and economically disadvantaged business owners for states, territories, and
        Tribal governments. The scope of our audit included all pre-award activities relating
        to the approval of SSBCI program funds for socially and economically
        disadvantaged business owners from March 2021 to January 2023. This audit was
        included in our annual plan for fiscal year 2024. Shortly after issuing our
        engagement letter, our office temporarily paused this audit and focused on other
        pandemic-related programs created under the Coronavirus Aid, Relief, and
        Economic Security Act, 1 passed on March 27, 2020; and the American Rescue
        Plan Act of 2021, enacted on March 11, 2021. 2 During several meetings with the
        Government Accountability Office (GAO), we learned that GAO was conducting
        two audits of the SSBCI program and that their audit reports were scheduled to be
        issued in February 2023 and June 2024, respectively.




        1
            P.L. 116-136 (March 27, 2020)
        2
            P.L. 117-2 (March 11, 2021)
Page 2


In February 2023, GAO issued the first of the two audit reports. 3 In its report,
GAO evaluated Treasury’s implementation of the SSBCI, reauthorized by the
American Rescue Plan Act of 2021. Specifically, GAO examined
(1) jurisdictions’ planned use of SSBCI funds to meet program objectives,
(2) Treasury’s completion of key implementation steps for SSBCI, and
(3) Treasury’s efforts to manage program risks and measure program
performance.

In June 2024, GAO issued the second of the two audit reports. 4 In its report,
GAO examined (1) Treasury’s disbursement of SSBCI funds and the status of
the Minority Business Development Agency’s grant awards; (2) Treasury’s
management of time frames for remaining implementation steps;
(3) Treasury’s efforts to ensure compliance with program requirements; and
(4) Treasury’s efforts to measure and report on program performance.

Based on our review of the GAO reports of the SSBCI program and after additional
discussions with GAO about its level of review performed on these two audits, we
determined that there is considerable overlap of audit objectives for our audit and
GAO’s audits. Therefore, we believe that it is redundant to devote resources to
conduct an audit of Treasury’s Pre-Award Process for the SSBCI Program Funds for
Socially and Economically Disadvantaged Business Owners for States, U.S.
Territories, and Tribal Governments. Accordingly, we are terminating this audit.
Please note that the Audit of the Department of the Treasury‘s Pre-award Process
for the State Small Business Credit Initiative Program Funds for Socially and
Economically Disadvantaged Business Owners for States, U.S. Territories, and
Tribal Governments (S-SC-23-006) will be removed from our Monthly Status
Report.

We appreciate the courtesies and assistance provided by your staff. If you have
any questions, please contact me at (202) 927-5400 or Dianna Jones, Director,
SSBCI, at (202) 997-4491.

cc:
        Jeffrey Stout, Deputy Chief Program Officer for Small Business and
           Community Investment Programs, Office of Capital Access, Treasury
        Michelle A. Dickerman, Deputy Assistant General Counsel Litigation,
           Oversight, and Financial Stability, Treasury
        Amanda Shulak, Attorney Advisor, Banking and Finance, Office of the
           General Counsel, Treasury




3
  GAO, State Small Business Credit Initiative: Improved Planning Could Help Treasury Limit Additional Delays,
   GAO-23-105293, (February 2023)
4
  GAO, State Small Business Credit Initiative: Treasury Made Progress on Disbursements and Improvements to
   Project Scheduling, GAO-24-106671, (June 2024)

File and source

File: OIG-CA-25-044_508_Compliant_SECURED.pdf
Size: 190,620 bytes
SHA-256: 29a18ac5cbcb59732d54a514187a7c8ce2d0cca87d33323fbb3600961e773981
Our copy: OIG-CA-25-044_508_Compliant_SECURED.pdf
Original: www.oversight.gov