Audit 11-13 Independent Review of the SBAs Accounting of FY 2010 Drug Control Funds and Performance Summary Report 4/18/11

This report presents the results of our review of the Small Business Administration's (SBA) Accounting of Drug Control Funds and Performance Summary Report for the year ended September 30, 2010. As directed by the Office of National Drug Control Policy (ONDCP) Circular, Drug Control Accounting, agencies are required annually to provide a detailed accounting of all funds expended on National Drug Control Program activities and the results associated with those activities. However, when drug-related obligations are less than $50 million and a detailed accounting would constitute an unreasonable burden, ONDCP permits agencies to submit an alternative report, as long as it is accompanied by Agency and Office of Inspector General statements that full compliance with the circular would constitute an unreasonable burden.

As the SBA's Fiscal Year (FY) 2010 drug-related obligations were less than $50 million, an alternative report for FY 2010 was submitted.Based on our review, we believe that full compliance with the ONDCP circular would constitute an unreasonable burden for the SBA. Also, nothing came to our attention that caused us to believe that the SBA's alternative report for the year ended September 30, 2010 is not presented, in all material respects, in conformity with ONDCP's Circular, or that management's assertions are not fairly stated, in all material respects, based on the criteria set forth in ONDCP's Circular, Drug Control Accounting.