AUDIT OF RTC MORTGAGE TRUST 1995-SN1

February 1, 2001Audit Report No. 01-004Audit of the Contractor BackgroundInvestigation Process Federal Deposit Insurance Corporation Washington, D.C. 20434 Office of Inspector GeneralDATE: February 1, 2001TO: Arleas Upton KeaDirectorDivision of AdministrationFROM: David H. LoewensteinAssistant Inspector GeneralSUBJECT: Audit of the Contractor Background Investigation Process(Audit Report No. 01-004)The Office of Inspector General (OIG) has completed an audit of the FDIC's contractorbackground investigation process. Previous contractor-related audits indicated that the Divisionof Administration (DOA) was not always conducting contractor background investigations asrequired by the Acquisition Policy Manual (APM). In response to these reports, DOA tookcorrective action to strengthen controls for requesting, tracking, and documenting the contractorbackground investigation process. This audit assessed the progress that DOA has made incontrolling the contractor background investigation process and in complying with applicablelaws and regulations.BACKGROUNDRules and regulations of the FDIC regarding contractor conflicts of interest and minimumstandards are stated in 12 CFR Part 366 that became effective on April 10, 1996, pursuant to theFederal Deposit Insurance Act. The Congress, mindful of the abuses that had taken place in theawarding of contracts by the Department of Housing and Urban Development, imposedstandards of conduct for the Resolution ...