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Audit Report 3-24: Audit of SBA’s FY 2002 Financial Statements-Management Letter

Date Issued: 
Monday, April 14, 2003
Report Number: 
3-24

On April 14, 2003, the OIG issued the Independent Public Accountant or IPA’s management letter in audit report number 3-24, Audit of SBA’s FY 2002 Financial Statements:  Management Letter.  The management letter includes information related to non-reportable findings discovered during the Audit of SBA’s FY 2002 financial statements.  The IPA noted three areas that were repeated from the previous year because the conditions, as well as the need for implementing enhanced control, continued to exist with regard to foreclosed property records and valuation, credit card use, and personal property and equipment.  The IPA made 12 recommendations with 7 sub-recommendations related to the 13 issues described below, specifically:

(1) Improper Financial Presentation for Un-reconciled Fund Balance with Treasury

(2) Foreclosed Property Records and Valuation

(3) Lack of Allotment Detail in the General Ledger

(4) Overstatement of Administrative Undelivered Orders

(5) Other Areas for Improvement, Administrative Costs

(6) Sampling for Erroneous Payments

(7) Non-Fiduciary Intragovernmental Reconciliations

(8) Federal managers Financial Integrity Act Reporting

(9) Alignment between SBA Strategic Goals and Responsibility Segments in the Statement of  Net Cost

(10) Incomplete Transactional Detail for Prior-year Obligations

(11) Funds Control Over Administrative Costs Needs Improvement

(12) General Ledger Account 1990, Loan Sale Costs, Incorrectly Presented on Balance Sheet

(13) Cash Flow Modeling