Finding Text
Loan Requirements (Repeat Finding) Criteria: The EDA requires the Government to obtain, maintain and retain certain documentation from borrowers in relation to loans made by them. Condition: It does not appear the Government enforces the borrowers loan covenant requirements for continuing compliance requirements. Specifically, it was noted where the Government did not determine whether the borrower in question met the loan covenant requirements in relation to job creation. Cause: Procedures have not been designed to ensure loan covenants are enforced to ensure comliance with the continuing compliance requirements. Effect: Due to the failure to follow procedures, the Government may be out of conmpliance with its internal requirements and with the EDA requirements. Recommendation: The Government should ensure all loan covenant requirements for its borowers are followed in the future. Response and Corrective Action Planned: We will implement this recommendation in the future. Conclusion: Response acknowledged.