Report 15-14: SBA's Controls to Prevent Duplication of Benefits with Community Development Block Grants

When agencies do not coordinate and ensure that one recipient is not receiving benefits from multiple agencies for the same purpose, there is a potential for overlap in funding.  This overlap is considered a duplication of benefits.  We reviewed the Small Business Administration’s (SBA) controls to determine whether they adequately prevent duplication of benefits with community development block grants (CDBGs) administered by the Department of Housing and Urban Development (HUD).  SBA’s role to prevent duplication of benefits with HUD’s CDBG Program is to provide timely, accurate, and complete loan information to HUD grantees that administer the grants for HUD.  We determined that SBA’s internal controls to prevent duplication of benefits were adequately designed and generally working as intended.  We found a few instances where SBA did not timely annotate in the loan file that a grant had been awarded.  However, no benefits were duplicated since the disaster survivor had not requested a loan, loan reinstatement, reconsideration or reacceptance, or increase of a loan from SBA after they were awarded CDBG fund.

Based on the results of this audit, this report contains no reportable conditions or recommendations.  We did not require Agency comments or any further action in response to the report.