SBA document page, Audit of SBA's Compliance with the Debt Collection Improvement Act, as Amended
Summary
This SBA document page presents Report 20-20 of the Office of Inspector General, an audit of SBA's compliance with the Debt Collection Improvement Act of 1996, as amended, for delinquent disaster loans as of April 30, 2019. The audit found SBA was not fully in compliance because it had not sent more than 250 past-due loans totaling more than $30.5 million, 180 days or more delinquent, to Treasury Cross-Servicing. In a sample of 20 loans, eight (40 percent) totaling $1.2 million were incorrectly classified as exempt. SBA chose not to assess administrative fees, so taxpayers bear the full cost of its National Disaster Loan Resolution Center, approximately $49.6 million from fiscal years 2011-19. The report recommended 10 actions.
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“SBA document page, Audit of SBA's Compliance with the Debt Collection Improvement Act, as Amended.”
Original at legacy.sba.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sba-document-page-audit-of-sba-s-compliance-with-the-debt-collection-i-e4b8c7f23e/
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Report 20-20 Audit of SBA's Compliance with the Debt Collection Improvement Act, as Amended This report presents the audit of SBA's Compliance with the Debt Collection Improvement Act, as Amended. About this document and download This report presents the results of our audit to determine if the Small Business Administration (SBA) was in compliance with the Debt Collection Improvement Act of 1996, as amended, for delinquent disaster loans as of April 30, 2019. Under the law as amended in 2014, if a disaster loan is delinquent for 120 days, the SBA is required to refer the debtors to the U.S. Department of the Treasury Offset Program for administrative offset. The Act also requires SBA to transfer all disaster loans that are 180-days delinquent to Treasury for collection action unless they are exempt. We found SBA was not fully in compliance with the Debt Collection Improvement Act, because the agency had not sent more than 250 past-due loans totaling more than $30.5 million and 180 days or more delinquent to Treasury Cross-Servicing for collection. None of the 250 loans that SBA was maintaining without sending to Treasury Cross-Servicing were exempt from collection action. In addition, a number of delinquent loans were incorrectly classified as exempt from transfer to Treasury for collection. In our sample of 20 loans, eight (40 percent) totaling $1.2 million, were incorrectly classified as exempt. We also determined that although SBA could assess but chose not to assess administrative fees to offset the overhead costs of operating SBA’s National Disaster Loan Resolution Center, which is responsible for resolving delinquencies of more than 90 days for disaster loans with balances of more than $25,000 and secured with collateral. Consequently, U.S. taxpayers bear the full cost of operating the resolution center, a total of approximately $49.6 million from fiscal years 2011-19. We recommended 10 actions for SBA to strengthen its controls and improve compliance with the Debt Collection Improvement Act. Download .pdf File size: 736KB Effective : September 30, 2020 Owned by : Office of Inspector General Related Programs : Related programs: Disaster Last updated October 1, 2020
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