TO: Sandy K. Baruah
<Original signed by:>
FROM: Peter L. McClintock
Acting Inspector General
SUBJECT: Fiscal Year 2009 Report on the Most Serious Management and Performance Challenges Facing the Small Business Administration
In accordance with the Reports Consolidation Act of 2000, we are providing you with the Office of Inspector General (OIG) Fiscal Year (FY) 2009 Report on the Most Serious Management and Performance Challenges Facing the Small Business Administration (SBA). This report represents our current assessment of Agency programs and/or activities that pose significant risks, including those that are particularly vulnerable to fraud, waste, error, mismanagement, or inefficiencies. The Challenges are not presented in order of priority, as we believe that all are critical management or performance issues.
Our report is based on specific OIG, Government Accountability Office, and other official reports, as well as our general knowledge of SBA’s programs and operations. Our analysis generally considers those accomplishments that SBA reported as of September 30, 2008.
The Agency has continued to make progress in resolving the Management Challenges, as illustrated by the large number of color scores that have improved since last year (see table below). SBA has continued to improve the security of its information systems by improving the tracking of security weaknesses, performing periodic service continuity testing, centralizing and implementing a process to track IT security training, and improving technical training for individuals with significant information security duties. The Agency has also made good progress in addressing its human capital management issues and lender oversight duties. Finally, the Agency completed the remaining recommended action for one of the Challenges in last year’s report: “SBA needs to continue updating its system of directives to provide proper guidance and control over its operations” (formerly Challenge 9). Thus, this Challenge has now been eliminated.
Within each Management Challenge there are a series of “recommended actions” to resolve the Challenge. Each recommended action is assigned a color “status” score. The scores are as follows: Green for Implemented; Yellow for Substantial Progress; Orange for Some Progress; and Red for No Progress. An upwards arrow in the color box indicates that the color score improved over last year’s report. As part of the OIG’s continuing evaluation of the Management Challenges, certain Challenges have been updated or revised.
Actions that were scored Green last year, and which remained Green this year, have been moved up to the “history bar,” which is located above the action items. The history bar helps to show any progress that the Agency has made on the Challenge over the past four fiscal years (or as long as the Challenge has existed, if shorter) by reporting the number of actions that moved to Green each year.
For further information, please refer to the attached document.