KPMG Management Letter Communicating Matters Relative to SBA’s FY 2019 Financial Statement Audit

We contracted with the independent certified public accounting firm KPMG LLP (KPMG) to audit the U.S. Small Business Administration’s (SBA’s) consolidated financial statements as of and for the fiscal year ended September 30, 2019. This audit is an annual requirement of the Chief Financial Officers Act of 1990, as amended, and was conducted in accordance with generally accepted government auditing standards; the Office of Management and Budget Bulletin No. 19-03, Audit Requirements for Federal Financial Statements; and the U.S. Government Accountability Office’s Financial Audit Manual and Federal Information System Controls Audit Manual.

The attached management letter represents matters that were identified during the audit. Specifically, KPMG reported that SBA

• did not fully comply with the Debt Collection Improvement Act of 1996, as amended
• needs to improve its process to analyze and document the applicability of recently issued and existing standards

KPMG addressed recommendations to the Acting Chief Financial Officer and the Associate Administrator for Capital Access. We provided a draft of KPMG’s finding to these officials or their designees, who fully concurred with the findings. The officials or designees agreed or have already taken action to address the underlying conditions.