Audit Report 0-07: Audit of the Idaho Falls Regional Small Business
Date Issued: Thursday, March 2, 2000
Report Number: 0-07

On March 2, 2000, the OIG issued Audit Report 0-07, Audit of the Idaho Falls Regional Small Business Development, in response to a former employee’s complaint alleging management improprieties.  The Center provides counseling, training, and specialized support to small businesses as part of the Idaho Small Business Development Center (ISBDC) network.  The Center is a tenant of the Idaho Innovation Center (IIC), a local incubator for small business ventures.  Idaho State University (ISU) partially funds the Center in its capacity as the Center’s host institution.  The objective of the audit was to determine whether the Center’s activities were in conformance with applicable laws, regulations, and policies.

The OIG found that $31,892 of claimed costs were unallowable because they were not in accordance with the cooperative agreement and Office of Management and Budget (OMB) Circulars.  The OIG also found that the Center overstated training and counseling accomplishments, performed untimely client follow-up, and made various errors in reporting program income.  In addition, the Center did not maintain complete records for training activities, revenue deposits, and conference room rental agreements.  The OIG issued five findings, specifically:  (1) Unallowable Costs; (2) Overstated Training Accomplishments;(3) Overstated Counseling Accomplishments and Untimely Client Follow-up;(4) Errors in Reporting Program Income; and (5) Incomplete Records for Training Activities, Revenue Deposits, and Conference Room Rental Agreements.