Overview of the OIG

The Office of Inspector General (OIG) is an independent office created within the SBA by law to conduct and supervise audits, inspections, and investigations relating to SBA programs and supporting operations; to detect and prevent waste, fraud, and abuse; and to promote economy, efficiency, and effectiveness in the administration and management of SBA programs.

The Inspector General, a Presidentially-appointed and Senate-confirmed officer, keeps the SBA Administrator and the Congress fully informed of any problems, recommends corrective actions, and monitors progress in the implementation of such actions.

The two operating components of OIG are the Auditing Division and the Investigations Division. The Auditing and Investigations Divisions each administer their respective activities through field offices around the country. The Management and Policy and Counsel Divisions support both the Inspector General and the operating divisions by providing policy, planning, administrative, and legal services, respectively.

OIG Helps SBA Improve Program Management

Audits
OIG conducts financial and performance audits of internal Agency functions and of participants in SBA programs to promote the economical, efficient, and effective operation of SBA programs.

Audits give SBA managers an objective and systematic assessment of how well their offices are carrying out their SBA-related programs and operations. Financial audits examine the presentation of financial information, internal controls, and adherence to financial requirements. Performance audits assess operations in terms of economical use of resources.

Investigations
When an investigation finds a serious systemic deficiency in Agency procedures or practices of SBA personnel, OIG staff provides a program vulnerability memorandum to appropriate program officials setting forth the pertinent investigative findings and suggesting possible management actions or procedural changes to decrease or eliminate the vulnerability in a program.

Task Forces
OIG staff participates with SBA staff on Agency-wide task forces to address issues of concern to the Agency, the Congress, and the small business community.

Review of Laws and Regulations
OIG is mandated to review and evaluate legislation, regulations, standard operating procedures and other directives in terms of their impact on program economy and efficiency, or their prevention of fraud and abuse.

OIG Detects and Deters Fraud

Investigations
OIG investigates allegations of possible criminal violations and other wrongdoing. Most investigations are conducted in conjunction with a U.S. Attorney’s Office. While the subject of an OIG investigation can be an SBA employee, approximately 90 percent of the subjects are applicants for or participants in Agency programs. OIG depends heavily on SBA employees for referrals of possible criminal activity.

Fraud Awareness
OIG’s investigations staff regularly presents fraud awareness briefings to Agency employees. Topics discussed with the employees include the Agency’s standards of conduct and how to handle potentially compromising situations. The cooperation OIG receives from SBA employees indicates their strong commitment to reducing waste, fraud, and abuse in Agency programs and to improving the Agency’s management and control of its programs.

Name Check
OIG staff ensures that all Agency employees have the appropriate background investigations and security clearances for their duties. OIG’s name check program provides SBA officials with character-eligibility information on loan applicants and other potential program participants.