Audit Report ROM 09-1: Key Unresolved OIG Audit Recommendations in Program Areas Funded by the American Recovery and Reinvestment Act and Related Activities Needed to Safeguard Funds
Date Issued: Thursday, April 30, 2009
Report Number: ROM 09-1

On April 30, 2009, the OIG issued Audit Report 09-01,  Key Unresolved OIG Audit Recommendations in Program Areas Funded by the American Recovery and Reinvestment Act and Related Activities Needed to Safeguard Funds.  The purpose of this review was to address weaknesses or deficiencies disclosed by prior audits and investigations in program areas under which Recovery Act funds were authorized, as directed by the Office of Management and Budget (OMB).  Where recommended final actions have not been completed, agencies are to expedite or explain why such actions cannot or should not be taken in the administration of Recovery Act programs in the Agency’s risk mitigation plan.

 

To aid the SBA in this effort, the OIG identified unresolved audit recommendations from OIG reports that address weaknesses or deficiencies in (1) programs directly impacted by the Recovery Act, and (2) operational support processes that will impact the disbursement and financial reporting of Recovery Act funds. Final actions are overdue for 10 of the 29 recommendations. Others either did not have a management decision or had identified final actions that should be expedited due to the associated risks. Since the Agency is responsible for determining when recommendations can be closed, the Agency closed 2 of the 10 overdue recommendations.  However, the OIG’s review found that the problems identified in those recommendations were not corrected. Therefore, the OIG is including those two recommendations in this memorandum. The recommendations in this report address actions that are needed to:

 

  • strengthen oversight of 7(a) lenders;
  • identify and recover improper payments;
  • develop procedures and performance measures for the Microloan program;
  • enhance information technology (IT) systems used to monitor and manage loan activity; and
  • improve contract award and administration.