On February 15, 2001, the OIG issued Audit Report 1-06, Results Act Performance Measurement for the Disaster Assistance Program. In late 1998, Congressional leaders requested that Offices of Inspectors General review how effectively their agencies were measuring performance under the Government Performance and Results Act of 1993 (Results Act) and the reliability of the underlying data. To implement the Results Act, agencies must prepare multiyear strategic plans, annual performance plans that include performance indicators, and performance reports. In response to this request, the OIG initiated a series of audits to evaluate the performance indicators the SBA developed for its major programs. This audit assessed whether the SBA effectively implemented the performance measurement requirements of the Results Act for the disaster assistance program.
The OIG found that the SBA had not fully implemented the performance measurement requirements of the Results Act for the disaster assistance program. Specifically, the program did not have performance indicators to determine the extent to which it accomplished its mission under the Small Business Act. Furthermore, disaster home loan currency and delinquency rates were misleading since they excluded a large portion of disaster loans and the indicator for effective field presence was not consistently applied. As a result, program officials could not measure the extent the program helped businesses and families recover from disasters, and whether the products and services were delivered cost effectively. The OIG recommended that the SBA (i) develop an outcome indicator to measure results aligned with the statutory mission, (ii) develop an indicator to gauge program delivery costs, (iii) consistently report disaster field staff presence, and (iv) revise the disaster loan currency-delinquency performance indicator.