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Audit Report 3-32: Audit of SBA’s Acquisition, Development, and Implementation of the Joint Accounting and Administrative Management System

Date Issued: 
Monday, June 30, 2003
Report Number: 
3-30

On June 30, 2003, the OIG issued Audit Report 3-32, Audit of SBA’s Acquisition, Development, and Implementation of the Joint Accounting and Administrative Management System.  The objectives of the audit were to determine whether:  (1) the selection methodology and the supporting documentation indicated that the system selected would deliver the most functionality for the least cost; (2) if there were adequate management controls over the process of acquiring and implementing JAAMS, and (3) if the system performed as expected and met user requirements. 

The OIG found that:  (1) the SBA’s Business Technology Investment Committee (BTIC) received biased and misleading information on costs, benefits, and alternatives on which to base its decision to select a new financial accounting system; (2) the SBA did not implement the Oracle database management system that had been demonstrated and approved by the BTIC, and purchased and bought license updates for software which it never implemented; (3) JAAMS was not fully accredited by the Chief Financial Officer; (4) JAAMS functions and interfaces were not tested prior to initiating production, and (5) JAAMS did not fully meet federal requirements related to Enterprise Resource Planning system.