13382 Federal Register / Vol. 62, No. 54 / Thursday, March 20, 1997 / Notices

Act of 1995 (44 U.S.C. chapter 35).

Currently, the FDIC is soliciting

comments concerning an information

collection titled ‘‘Application Pursuant

to Section 19 of the Federal Deposit

Insurance Act.’’

DATES: Comments must be submitted on

or before May 19, 1997.

ADDRESSES: Interested parties are

invited to submit written comments to

Steven F. Hanft, FDIC Clearance Officer,

(202) 898–3907, Office of the Executive

Secretary, Federal Deposit Insurance

Corporation, 550 17th Street N.W.,

Washington, D.C. 20429. All comments

should refer to ‘‘Application Pursuant to

Section 19 of the Federal Deposit

Insurance Act.’’ Comments may be

hand-delivered to Room F–400, 1776 F

Street, N.W., Washington, D.C. 20429,

on business days between 8:30 a.m. and

5:00 p.m. [FAX number (202) 898–3838;

Internet address: comments@fdic.gov].

A copy of the comments may also be

submitted to the OMB desk officer for

the FDIC: Alexander Hunt, Office of

Information and Regulatory Affairs,

Office of Management and Budget, New

Executive Office Building, Room 3208,

Washington, D.C. 20503.

FOR FURTHER INFORMATION CONTACT:

Steven F. Hanft, at the address

identified above.

SUPPLEMENTARY INFORMATION: Proposal

to renew the following currently

approved collection of information:

Title: Application Pursuant to Section

19 of the Federal Deposit Insurance Act.

OMB Number: 3064–0018.

Frequency of Response: Occasional.

Affected Public: Insured depository

institutions that desire to have a person

who has been convicted of a crime

involving dishonesty or breach of trust

to participate in the conduct of the

affairs of the institution.

Estimated Number of Respondents:

80.

Estimated Time per Response: 16

hours.

Estimated Total Annual Burden:

1,280 hours.

General Description of Collection:

Section 19 of the Federal Deposit

Insurance Act (12 USC 1829) requires

the FDIC’s consent prior to participation

by a person who has been convicted of

a crime involving dishonesty or breach

of trust in the affairs of an insured

depository institution. To obtain the

FDIC’s consent to hire a convicted

person, an insured depository

institution must submit an application

on FDIC Form 6710/07 which requests

biographical information about the

person, information about the

conviction(s), and information about the

prospective position to be held by the

person.

Request for Comment

Comments are invited on: (a) whether

the collection of information is

necessary for the proper performance of

the FDIC’s functions, including whether

the information has practical utility; (b)

the accuracy of the estimates of the

burden of the information collection,

including the validity of the

methodology and assumptions used; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the information collection on

respondents, including through the use

of automated collection techniques or

other forms of information technology.

At the end of the comment period, the

comments and recommendations

received will be analyzed to determine

the extent to which the collection

should be modified prior to submission

to OMB for review and approval.

Comments submitted in response to this

notice also will be summarized or

included in the FDIC’s requests to OMB

for renewal of this collection. All

comments will become a matter of

public record.

Dated at Washington, D.C., this 14th day of

March, 1997.

Federal Deposit Insurance Corporation.

Jerry L. Langley,

Executive Secretary.

[FR Doc. 97–6994 Filed 3–19–97; 8:45 am]

BILLING CODE 6714–01–M

Statement of Policy on Contracting

With Firms That Have Unresolved

Audit Issues With FDIC

AGENCY: Federal Deposit Insurance

Corporation.

ACTION: Statement of policy.

SUMMARY: The Federal Deposit

Insurance Corporation (FDIC) has

adopted a policy statement concerning

contracting with firms that have

unresolved audit issues with FDIC. The

policy statement sets forth the

procedures to be followed to provide

proper notification to an affected

contractor or outside counsel when an

audit report is issued, and a

management decision has been made on

a respective finding, in order to afford

the firm an opportunity to respond.

When an FDIC audit identifies

questioned costs and issues remain

outstanding or unresolved as a result of

the firm’s failure to cooperate with FDIC

management in resolving issues

associated with identified disallowed

costs, by for example: (1) failing to

respond timely to an FDIC request to

produce documentation to support

claimed costs; or (2) otherwise failing to

adequately document claimed costs; or

(3) by failing to remit the disallowed

portion of questioned costs identified in

such audit reports, application of the

policy may result in a determination to

refrain from soliciting new business

from that firm.

This policy statement applies to firms

providing goods and services to FDIC,

including attorneys or law firms

providing legal services to FDIC.

EFFECTIVE DATE: This policy statement is

effective March 20, 1997.

FOR FURTHER INFORMATION CONTACT:

Michael J. Rubino, Associate Director,

Acquisition Services Branch, at (202)

942–3076, Peter A. Ziebert, Counsel,

Contracting Law Unit, at (202) 736–

0742, or William S. Jones, Counsel,

Legal Operations Section, at (202) 736–

3055.

SUPPLEMENTARY INFORMATION: The text of

the Policy Statement follows:

1. Background

The FDIC Office of the Inspector

General (OIG) routinely audits contracts

with firms providing services to FDIC.

These audits frequently contain an

analysis whereby certain contract costs

are questioned, as well as a

recommendation that FDIC management

disallow and attempt to recover these

costs. When the OIG transmits the audit

report and findings to the appropriate

FDIC program office, FDIC management

then reviews such findings and

recommendation. This evaluation

results in the issuance of a final

decision that may sustain all of the

audit findings, or a portion thereof.

When FDIC management determines

that certain questioned costs should not

be charged to the Corporation, such

questioned costs that are sustained are

then deemed to be ‘‘disallowed’’ costs

within the meaning of the Inspector

General Act.

Once a management decision has

been made to disallow such costs, active

resolution efforts are undertaken by

FDIC management to recover funds paid

without adequate documentation or

otherwise inappropriately paid to the

firm during the course of the

engagement. In those circumstances

where the FDIC requests that an audited

firm remit disallowed amounts and the

contractor fails to do so or fails to

actively cooperate with FDIC

management in its efforts to resolve the

issues associated with identified

disallowed costs, it is prudent business

for FDIC to selectively refrain from

soliciting future services from the firm.
Federal Register / Vol. 62, No. 54 / Thursday, March 20, 1997 / Notices 13383

2. General Policy

To provide procedures whereby the

FDIC may elect to refrain from soliciting

a firm for new business if:

(a) the results of an audit reflect

potentially recoverable disallowed costs

and audit issues remain outstanding or

unresolved within the time period set

forth in the notice letter sent by FDIC;

and

(b) the firm failed or declined to

cooperate with resolution efforts

undertaken by FDIC management in

response to the audit findings, including

the failure to adequately support its

contract costs or the failure to remit the

disallowed portion of the questioned

costs identified in such audit report.

3. Definitions

(a) Disallowed cost means a

questioned cost that management, in a

management decision, has sustained or

agreed should not be charged to the

government.

(b) Management decision means the

evaluation by FDIC management of the

findings and recommendations included

in an audit report and the issuance of a

final decision by management

concerning it response to such findings

and recommendations, including

actions concluded to be necessary.

(c) Questioned cost means a cost that

is questioned in an audit by the OIG or

similar auditing agency because of:

(i) an alleged violation of a provision

of a law, regulation, contract, grant,

cooperative agreement, or other

agreement or document governing the

expenditure of funds;

(ii) a finding that, at the time of the

audit, such cost is not supported by

adequate documentation; or

(iii) a finding that the expenditure of

funds for the intended purpose is

unnecessary or unreasonable.

4. Procedures

Issued audit reports that identify

questioned costs relating to contractual

engagements are assigned to the

Division of Administration, Acquisition

Services Branch (ASB) staff, or the

Outside Counsel Unit, Legal Division

(OCU), for resolution. In implementing

this policy statement, the following

steps shall be taken:

(a) Management decision. Once a

management decision is made on a

respective finding, the matter is then

assigned to ASB or OCU for resolution.

A copy of the relevant audit report shall

be transmitted to the firm under a cover

letter which:

(i) identifies the ASB or OCU which

is responsible for resolving the audit

issues;

(ii) identifies the ASB or OCU

employee primarily responsible for

resolution and to whom all

communications from the firm should

be sent;

(iii) requests that the firm respond to

the findings contained in the report

within ten (10) business days of receipt

of the letter, or such other time as

specified in the letter. Such responses

should include supporting

documentation where appropriate.

(b) If the firm fails to respond to this

request, or fails to remit the disallowed

portion of the questioned costs

contained in the audit report, or

otherwise fails to adequately respond to

the issues raised in the report, the

following procedures shall apply:

(i) with respect to audits of firms

other than outside counsel, the ASB

employee identified in section 4(a)(ii)

shall send a letter to the firm advising

the firm of its failure to cooperate, and

which advises the firm that unless it

remits the requested repayment or

makes other arrangements satisfactory to

the Associate Director who is

responsible for resolution of this audit

(whose name shall be provided to the

firm) within ten business days of receipt

of this letter, the Director, Division of

Administration may, effective as of that

date, make a determination that the

FDIC refrain from soliciting any future

services from this firm until such time

as all issues identified in the subject

audit report are resolved to the FDIC’s

satisfaction, and direct that notice to be

sent to the firm of this action.

(ii) With respect to audits of outside

counsel, the Legal Division employee

identified in section 4(a)(ii) shall send a

letter to the outside counsel which

advises such outside counsel that its

failure to cooperate constitutes a

conflict of interest with the FDIC, and

which advises outside counsel that

unless it remits the requested repayment

or makes other arrangements

satisfactory to the Assistant General

Counsel who is responsible for

resolution of this audit (whose name

shall be provided to the contractor)

within ten business days of receipt of

this letter, the matter will be referred to

the Outside Counsel Conflicts

Committee for appropriate action,

which may include a determination that

the FDIC refrain from soliciting any

future services from such outside

counsel and/or terminate FDIC’s

existing engagements, until such time as

all issues identified in the subject audit

report are resolved to the FDIC’s

satisfaction.

Dated at Washington, D.C. this 14th day of

March, 1997.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Deputy Executive Secretary.

[FR Doc. 97–6995 Filed 3–19–97; 8:45 am]

BILLING CODE 6714–01–P

FEDERAL ELECTION COMMISSION

Sunshine Act Meeting

FEDERAL REGISTER NUMBER: 97–6472.

PREVIOUSLY ANNOUNCED DATE & TIME:

Tuesday, March 18, 1997, 10:00 a.m.,

Meeting closed to the public.

THIS MEETING HAS BEEN

CANCELLED.

DATE & TIME: Tuesday, March 25, 1997

at 10:00 a.m.

PLACE: 999 E Street, NW., Washington,

DC.

STATUS: This meeting will be closed to

the public.

ITEMS TO BE DISCUSSED:

Compliance matters pursuant to 2

U.S.C. § 437g.

Audits conducted pursuant to 2 U.S.C.

§ 437g, § 438(b), and Title 26, U.S.C.

Matters concerning participation in civil

action or proceedings or arbitration.

Internal personnel rules and procedures

or matters affecting a particular

employee.

Federal Election Commission

Sunshine Act Notice for Meetings of

March 25 and 27, 1997

DATE & TIME: Thursday, March 27, 1997

at 10:00 a.m.

PLACE: 999 E Street, NW., Washington,

DC (Ninth Floor).

STATUS: This meeting will be open to the

public.

ITEMS TO BE DISCUSSED:

Correction and Approval of Minutes.

Independent and Coordinated

Expenditures by Party Committees—

Notice of Proposed Rulemaking (11

CFR § 100.7, § 100.23, § 104.4, § 109.1,

§ 110.1, § 110.2, § 110.7, and

§ 110.11)—(If not concluded at the

meeting of March 20, 1997.)

Adminstrative Matters.

PERSON TO CONTACT FOR INFORMATION:

Mr. Ron Harris, Press Officer,

Telephone: (202) 219–4155.

Marjorie W. Emmons,

Secretary of the Commission.

[FR Doc. 97–7254 Filed 3–18–97; 8:45 am]

BILLING CODE 6715–01–M