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Audit Report 4-44: Summary Audit of SBA- Sponsored and Cosponsored Events Conducted by District Offices

Date Issued: 
Friday, September 24, 2004
Report Number: 

On September 24, 2004, the OIG issued Audit Report 4-44, Summary Audit of SBA- Sponsored and Cosponsored Events Conducted by District Offices.  The objective of the audit was to summarize the areas of noncompliance with SBA policies and procedures and Federal laws for specific field offices conducting SBA-sponsored and cosponsored events.  The OIG found that improvements were needed in the compliance, guidance, and oversight of SBA-Sponsored and Cosponsored events.  The OIG made one, multi-part recommendation.  According to the review, nine district offices did not operate in compliance with Federal laws and SBA policies and procedures for 16 SBA-sponsored and 33 cosponsored events held between May 1999 and November 2002.  The instances of noncompliance included:  (1) soliciting and accepting gifts and fees, (2) planning, conducting, and reporting events, and (3) accounting for funds and on-cash assets.  For example, Gift funds for events held by eight district offices were not deposited into the Business Assistance Trust (BAT) Fund.  For the three district offices whose events were audited, cash gifts totaling $345,169 were received but were not deposited as required.  The district directors for five of the unaudited district offices stated that they also received cash gifts that were not deposited into the BAT Fund.