This report presents the results of our audit of the Small Business Administration's (SBA' s) funding of information technology (IT) hardware and software contracts awarded to Isika Technologies, Incorporated. (iTechnologies). This is the second in a series of audit reports related to our ongoing audit of IT contracts awarded to iTechnologies. The objective of this audit was to determine whether SBA officials properly funded contracts awarded to iTechnologies for the procurement of IT hardware and software.
This audit found that Contracting and OCIO personnel did not properly fund at least one of the related contracts because they obligated $3.151 million during FY 2009 aud FY 2010 by issuing contract modifications without identifying specific requirements for IT hardware and software. Because the SBA did not use these obligated annual funds to purchase IT hardware or software during FY 2009 and FY 2010, we determined that the SBA was inappropriately obligating annual funds that otherwise would not have been available for use in a subsequent fiscal year.