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CED-80-64 1 (1980-03-03)

handle is hein.gao/gaobabakl0001 and id is 1 raw text is: 



                   LL SR , ENIERAL OP . I'M UNITED STATES
                      WASHINGTON. D.C 20R48LA
                                   ~REOLEAE



B-197765                                 MARCH 3,1980



The Honorable Norman D. Shumway                    111954

House of Representatives

Dear Mr. Shumway:

     Subject: Farmers Home Administration: Emergency
               Loan Processing Procedures in Stanislaus
               County, California (CED80§:.!)

     Your letters of September 10 and 24, 1979, regarding
the Emergency Loan Program administered by the Farmers Home
Administration (FmHA), Department of Agriculture, asked us
to determine whether the loan processing regulations govern-
ing the awarding of loans under the program contain defi-
ciencies which permit abuses or inappropriate use of taxpay-
ers' dollars. As later agreed, we limited our audit of the
emergency loan processing regulations to loans the Stanislaus
County, California, FmEA office made.

     Our objective was to determine if the emergency loan
applicants were given consistent treatment in accordance with
FmHA regulations governing the program and to note any defi-
ciencies in the regulations or procedures used by the
Stanislaus County FmHA office.

     We reviewed all emergency loan applications received at
the Stanislaus County office in fiscal year 1979 and dis-
cussed the loan processing procedures with the FmHA County
Supervisor and FmHA officials at the State and national
offices. We also talked with two of the three private citi-
zens who served on the FmHA county committee in Stanislaus
County during the time the loan applications were processed.

BACKGROUND

     The FmBA Emergency Loan Program is administered by FmHA
county offices located throughout the United States. The
program's basic objective is to provide financial assistance



                                                    (068103)

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