Audit Report 5-28: Review of SBA’s Procedures for Cash Gifts
On September 30, 2005, the OIG issued Audit Report 5-28, Review of SBA’s Procedures for Cash Gifts. The objective of this audit was to determine if the SBA was following established procedures for soliciting, accepting, holding, and utilizing cash gifts. The OIG found that the cash gifts were properly deposited to the Business Assistance Trust Fund (BAT) but that the SBA did not perform certain required procedures for soliciting, accepting, and utilizing cash gifts. Specifically, the OIG found that one district office did not properly perform review and authorization procedures prior to gift solicitation and acceptance of the FY 2004 gifts reviewed by the OIG. This may have resulted in the SBA improperly accepting cash gifts totaling at least $8,000 from prohibited sources.
The OIG also found that: (a) the Office of Strategic Alliances (OSA) did not provide the Office of General Counsel complete information for the 2005 conflict of interest determinations, (b) controls were not adequate to ensure that conflict of interest determinations were completed prior to gift acceptance, (c) the Office of Procurement and Grants Management obligations for requisition expenditures were not timely, and (d) the District Office did not properly follow certain record-keeping and accountability procedures. As a result, the SBA did not fully comply with applicable requirements for the solicitation and acceptance, as well as recording keeping and accountability of gifts.