On September 30, 2005, the OIG issued Memorandum Advisory Report 05-29, SBA Needs to Implement a Viable Solution to its Loan Accounting System Migration Problem. This advisory memorandum is to alert the SBA to the serious and significant problems confronting the SBA in their need for more effective actions relating to the migration, enhancement, or replacement of SBA’s Loan Accounting System. The objective of this review was to evaluate whether SBA’s plans and controls were working effectively to address issues related to migrating from its legacy mainframe operating system. The need for this change originated from at least two major risks: (1) application and technology risk related to the high-cost, obsolete technology, and serious security gaps that could not be addressed by the current system that was nearly 30 years old; and (2) contracting and cost risk since the Government Services Administration informed the SBA that the existing task order could not be extended.
The OIG identified four findings and issued five recommendations, specifically: (1) The Loan Accounting System needs immediate attention by all aspects of the SBA, (2) ownership of the Loan Accounting System is not defined clearly, which has compounded risks and slowed replacement efforts, (3) other alternative replacements to the Loan Accounting System could be less expensive to operate in the long-term, and (4) the Loan Accounting System does not have adequate security to protect the information within the system