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Audit Report 13-09: Management Letter - SBA's FY 2012 Financial Statement Audit
On December 12, 2012, the OIG issued the Independent Public Accountant or IPA’s Management Letter in Audit Report 13-09, Management Letter-SBA’s FY 2012 Financial Statement Audit. The IPA’s management letter includes information related to non-reportable findings discovered during the IPA’s audit of SBA’s FY 2012 financial statements.
In this letter, the IPA noted 12 matters involving internal controls and other operational matters that included: (1) inadequate review of SBA’s return on assets re-estimate cash flow models; (2) improvement needed in the documentation of the obligations review process; (3)inadequate controls over the 7(a) 1502 error process; (4) inadequate documentation of policies and procedures for the microloan program; (5) loan file documentation not retained in loan files; (6) untimely processing of Microloan transactions and improper intermediary lending pilot program disbursements; (7) untimely site visits for loan defaults; (8) untimely processing of charge-off loans; (9) untimely post-purchase and charge-off reviews; (10) inadequate and untimely follow-up on corrective actions; (11) improvement needed in time and attendance authorization, review, and certification processes, and (12) improvement needed in the employee separation process. The IPA made 25 recommendations to which agency officials or designees agreed to implement or have already taken action to address the underlying conditions.