Department of the Treasury OIG OIG-CA-25-042 (Termination Memorandum – Audit of the Department of the Treasury ‘s Pre-Award Process for the State Small Business Credi)
Summary
Memorandum OIG-CA-25-042 of May 14, 2025, in which the Treasury Office of Inspector General, through Acting Assistant Inspector General for Audit Pauletta P. Battle, tells Acting Chief Program Officer Gregory Till that it is terminating an audit. The audit, Job Code S-SC-23-007, was opened in January 2023 to assess Treasury's pre-award process for SSBCI main capital allocation agreements and the distribution of approximately $6 billion to states and U.S. territories from March 2021 to January 2023. GAO's two SSBCI reports, GAO-23-105293 and GAO-24-106671, examined Treasury's implementation, disbursements and program performance. The office concludes that its audit objectives overlap considerably with GAO's work and that continuing would be redundant.
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“Department of the Treasury OIG OIG-CA-25-042 (Termination Memorandum – Audit of the Department of the Treasury ‘s Pre-Award Process for the State Small Business Credi).”
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DEPARTMENT OF THE TREASURY
W ASHINGTON, D.C. 20220
OFFICE OF
INSPECTOR GENERAL
May 14, 2025
OIG-CA-25-042
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) Main Capital Allocation and
Distribution for States and U.S. Territories (Job Code S-SC-
23-007)
In January 2023, we initiated an audit of the Department of the Treasury’s
(Treasury) Pre-Award Process of the SSBCI main capital allocation and distribution
of funds for states and U.S. territories. Our audit objectives were to assess (1)
Treasury’s pre-award process for the SSBCI program related to the approval of
main capital allocation agreements and (2) the distribution of funds of
approximately $6 billion for states and U.S. territories. The scope of our audit
included all pre-award activities relating to the approval of main allocation
agreements and SSBCI funds distributed 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 Main Capital
Allocation and Distribution for States and U.S. Territories. 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 Main Capital
Allocation and Distribution for States and U.S. Territories (S-SC-23-007) 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)
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