Audit Report 13-21: SBA Enterprise-wide Controls Over Cosponsored Activities
On September 30, 2013, the OIG issued Audit Report 13-21, The Small Business Administration’s Enterprise-wide Controls Over its Cosponsored Activities. The objective of this limited scope audit was to determine the adequacy of controls over the SBA’s cosponsored activities in accordance with federal laws, regulations, and policies. The OIG did not assess the validity and eligibility of individual expenses for the cosponsored activities.
The OIG determined that for its cosponsored activities, the SBA did not fully implement effective controls to comply with the requirements stipulated in Title 13, Part 106 of the Code of Federal Regulations (CFR) and Standard Operating Procedure (SOP) 90 75 3, Outreach Activities. Specifically, the SBA did not (1) consistently vet and perform conflicts of interest determinations, (2) report on the results of its activities within established timeframes, and (3) control excess funds that remained at the conclusion of those activities.
The OIG concluded that opportunities exist to strengthen SBA’s controls over cosponsored activities that include:
• Fully implementing additional controls over cosponsorship approval and closeout procedures;
• Strengthening controls over the maintenance of official cosponsorship files to ensure that all required documentation is obtained; and
• Performing effective Quality Service Reviews on all cosponsored activities to ensure that laws, regulations, and SBA policy were followed.
To help implement stronger controls and oversight of cosponsored activities, the OIG made eight recommendations to several SBA officials.