Audit Report 1-11: Results Act Performance Measurement for the Minority Small Business and Capital Ownership Development Program
On March 27, 2001, the OIG issued Audit Report 1-11, Results Act Performance Measurement for the Minority Small Business and Capital Ownership Development Program. In late 1998, Congressional leaders requested that Offices of Inspectors General review how effectively their agencies were measuring performance under the Government Performance and Results Act of 1993 (Results Act) and the reliability of the underlying data. To implement the Results Act, agencies must prepare multiyear strategic plans, annual performance plans that include performance indicators, and performance reports. In response to this request, the OIG initiated a series of audits to evaluate the performance indicators the SBA developed for its major programs.
This report examines whether the SBA met the performance measurement requirements of the Results Act for the Minority Small Business and Capital Ownership Development 8(a) Business Development program. The Office of Government Contracting & Business Development developed program performance measures for the 8(a) Business Development Program (BD) based on guidance provided by officials responsible for coordinating SBA’s Results Act implementation. To answer the objective of whether SBA meets the performance measurement requirements of the Results Act for the 8(a) BD program, the OIG determined whether: (1) goals align with the statutory mission, (2) indicators align with goals, and (3) reliable data exists.
The OIG found that the SBA had not adequately implemented performance measurement requirements of the Results Act for the 8(a) Business Development (BD) Program. For example, SBA’s definition of success for the 8(a) BD program contained in its Fiscal Year (FY) 2001 Results Act Annual Performance Plan (Plan) omitted the measures of success for the 8(a) BD program, as defined and required by law. As such, the Plan does not inform Congress how successful the 8(a) BD program is, as measured against the Plan.
The OIG also found that: (1) the plan lacked effectiveness and efficiency performance indicators for the 8(a) BD program; (2) the data contained in the SBA database for the 8(a) BD program was generally accurate concerning the fiscal year in which 8(a) BD program participants (or firms) left the program; and (3) some performance data was unreliable or incorrectly described.
The OIG recommended that (a) the SBA defines success for the 8(a) BD program in accordance with Public Law 100-656; (b) the SBA's plans include indicators that allow for a determination of how effectively and efficiently the 8(a) BD program is operating; and (c) those plans accurately describe and report performance goals and data. The OIG also recommended that the SBA implement a tracking system that ensures termination requests of 8(a) firms are tracked through final resolution.