Federal Reports

SBA OIG reviewed PPP regulations and the Paycheck Protection Program and Health Care Enhancement Act, in addition to guidance published in SBA’s PPP Interim Final Rules and PPP Frequently Asked Questions.We determined SBA did not always have sufficient controls in place to detect and prevent duplicate PPP loans. As a result, lenders made more than one PPP loan disbursement to 4,260 borrowers with the same tax identification number and borrowers with the same business name and address. These disbursements totaled about $692 million for PPP loans approved from April 3 through August 9, 2020.We recommended in part that SBA:1. Review identified potential duplicate disbursements for eligibility and take action to recover any improper payments2. Review controls related to all PPP loan reviews to ensure that duplicate loans are not forgiven and not subject to an SBA guaranty, as appropriate3. Strengthen E-Tran controls for future PPP-type programs to ensure the controls align with program requirements and are active at all times4. Strengthen controls and guidance for lenders to ensure lenders meet program requirements for future PPP type programs

We audited the costs claimed by the State of Minnesota, Department of Natural Resources (Department) under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program. The audit included claims totaling approximately $153 million on 43 grants that were open during the State fiscal years that ended June 30, 2017, and June 30, 2018. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to collecting and using hunting and fishing license revenues and reporting program income.We found that the Department complied, in general, with applicable grant accounting and regulatory requirements. We did, however, question costs totaling $56,089 for potential diversion of license revenue related to the disposition of surplus equipment. We found the Department did not identify or report all its earned program income, and we found the Department had not reconciled its real property records with the FWS’ real property inventory.The FWS concurred with our recommendations and will work with the Department to implement corrective actions.

OIG evaluated APHIS’ controls over the licensing of exhibitors of dangerous animals and the agency’s efforts to safeguard both the animals and members of the public who visit exhibitor facilities.

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We prepared this memorandum to provide the Office of Housing at the U.S. Department of Housing and Urban Development (HUD) with key considerations from prior audits of the HUD Single Family Default Monitoring System (SFDMS) and the partial claim loss mitigation option. These audits identified HUD’s lack of effective controls to ensure that lenders reported default information accurately and in a timely manner, lenders promptly filed and reported partial claims, and partial claims fully reinstated delinquent loans. Prior audits also identified that the current design of partial claims results in an inferior lien position on the securing property during a foreclosure sale. HUD should address these situations now to ensure program integrity and minimize the risk of financial loss during the novel coronavirus (COVID-19) national emergency.