Peggy E. (Peg) Gustafson was sworn in as SBA Inspector General on October 2, 2009. Ms. Gustafson previously served as General Counsel to Senator Claire McCaskill (D-MO), where she advised the...
Fiscal Year 2011 Report on the Most Serious Management and Performance Challenges Facing the Small Business Administration
TO: Karen G. Mills
<Original signed by:>
FROM: Peggy E. Gustafson
SUBJECT: Fiscal Year 2011 Report on the Most Serious Management and Performance Challenges Facing the Small Business Administration
In accordance with the Reports Consolidation Act of 2000, we are providing you with the Office of Inspector General’s (OIG) Fiscal Year (FY) 2011 Report on the Most Serious Management and Performance Challenges Facing the Small Business Administration (SBA). This report represents our current assessment of Agency programs and/or activities that pose significant risks, including those that are particularly vulnerable to fraud, waste, error, mismanagement or inefficiencies. The Challenges are not presented in order of priority, as we believe that all are critical management or performance issues.
Our report is based on specific OIG, Government Accountability Office (GAO), and other official reports, as well as our general knowledge of SBA’s programs and operations. Our analysis generally considers those accomplishments that SBA reported as of September 30, 2010.
Within each Management Challenge there are a series of “recommended actions” to resolve the Challenge. Each recommended action is assigned a color “status” score. The scores are as follows: Green for Implemented; Yellow for Substantial Progress; Orange for Limited Progress; and Red for No Progress. An upwards arrow in the color box indicates that the color score improved over last year’s report, and a down arrow indicates that it regressed.
As part of the OIG’s continuing evaluation of the Management Challenges, certain Challenges have been updated or revised. In addition, actions that were scored Green last year, and which remained Green this year, have been moved up to the “history bar” above the recommended actions. The history bar highlights any progress that the Agency has made on a Challenge over the past four FYs (or as long as the Challenge has existed, if shorter) by showing the number of actions that have moved to Green each year.
We are pleased to report that one Management Challenge in last year’s report, Insufficient and Outdated SBA Controls Contribute to Excessive Risk of the SBIC Program, has been completed by virtue of both remaining recommended actions receiving Green color scores this year. The OIG determined that SBA (1) was actively monitoring and timely transferring impaired Small Business Investment Companies (SBICs) to liquidations when warranted and (2) had developed performance goals and indicators to evaluate effectiveness of the liquidation process of SBICs and was reporting annually on whether these goals had been met. This Challenge has been shown as “completed” in the attached report and the remaining Challenges have been renumbered accordingly.
For further information, please refer to the attached document.