On March 24, 1999, the OIG issued Audit Report 9-08, Audit Report on Giving of Self Partnership, Inc. This audit was conducted in response to a request from the Office of Procurement and Grants management (OPGM) to audit the grant awarded to Giving of Self Partnership of Philadelphia (GOSP) for the period December 1994 to June 30, 1998. The objectives of the audit were to determine whether (1) costs submitted for reimbursement and paid by the SBA were allowable, (2) GOSP’s controls were effective in monitoring and accounting for the grant funds, and (3) GOSP’s performance conformed to grant requirements.
The OIG determined that GOSP’s invoices to the SBA included $101,061 in unallowable costs. Further, GOSP did not properly allocate costs, implement controls to detect and prevent duplicate cost reimbursement submissions, take action necessary to obtain title to the property where the Small Business Development Institute (SBDI) was being constructed, comply with procurement standards in the grant to obtain competitive bids and bonding, and to incorporate various contract provisions.