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