Fraud Detection in SBA Programs Inspection Report

Title:
Fraud Detection in SBA Programs Inspection Report
AgencyName:
Small Business Administration
MajorOrganizationalSubdivision:
Office of the Inspector General
MinorOrganizationalSubdivision:
None Selected
Unit:
Inspection and Evaluation Division
Abstract:
The Fraud Detection Inspection Report evaluates the use of criminal history and tax verification information to detect fraud in Small Business Administration programs. The inspection team found that the Office of Disaster Assistance and several of the specialized loan guarantee programs do not collect the information necessary for the Office of the Inspector General (OIG) to conduct criminal history checks on applicants. In addition, the 7(a) business loan and the 8(a) Minority Enterprise Development programs do not consistently use Internal Revenue Service (IRS) tax verification when checking the financial data submitted by program applicants and participants. The OIG recommended that these programs obtain the applicant information necessary to conduct criminal history checks and that they use tax verification when making applicant/participant decisions. The OIG also recommended prermanent use of IRS verification in the Size Standards program and a one-year pilot test in the Surety Guarantee program.
Purpose:
The Office of the Inspector General initiated this inspection because of indications that two procedures essential for deterring and detecting fraud in Small Business Administration programs -- completion of a personal history statement and verification of tax return and financial information -- are not being used in a consistent manner.
AgencyProgram:
N/A
DistributorName:
Office of the Inspector General
DistributorOrganization:
Small Business Administration
DistributorStreetAddresss:
409 3rd Street, S. W.
DistributorCity:
Washington
DistributorState:
DC
DistributorZip:
20416-4112
DistributorCountry:
USA
DistributorTelephone:
(202) 205-7202
DistributorFax:
(202) 205-6922
DistributorResourceDescription:
97-11-01
DistributorOrderProcess:
This report can be obtained by contacting the Inspection and Evaluation Division at (202) 205-7202 or by writing to: Office of Inspector General, Inspection and Evaluation Division, 409 3rd Street, S.W., Mail Code 4115, Washington, DC 20416-4112.
SourcesOfData:
N/A
AccessConstraints:
None
UseConstraints:
None
ContactName:
Office of Inspector General
ContactOrganization:
Small Business Administration
ContactStreetAddress:
409 3rd Street, S.W.
ContactCity:
Washington
ContactState:
DC
ContactZipCode:
20416
ContactCountry:
USA
ContactTelephone:
(202) 205-7202
ContactFax:
(202) 205-6922
ScheduleNumber:
N/A
ControlIdentifier:
SBA10370
RecordSourceAgencyName:
Small Business Administration
RecordSourceUnit:
Office of Administrative Services
DateOfLastModification:
19971210