Report No. 16-02: Independent Auditors’ Report on the SBA’s FY 2015 Financial Statements

On November 16, 2016, OIG issued Report No. 16-02, Independent Auditors’ Report on the SBA’s FY 2015 Financial Statements.  We contracted with the independent certified public accounting firm KPMG LLP (KPMG) to audit the U.S. Small Business Administration’s (SBA) consolidated financial statements for fiscal year (FY) 2015, ending September 30, 2015.  This audit is an annual requirement of the Chief Financial Officers’ Act of 1990, and was conducted in accordance with Generally Accepted Government Auditing Standards; the Office of Management and Budget Bulletin No. 15-02, Audit Requirements for Federal Financial Statements; and the U.S. Government Accountability Office’s Financial Audit Manual and Federal Information System Controls Audit Manual.  The attached independent auditor’s report presents an unmodified opinion on SBA’s consolidated financial statements for FY 2015.  Specifically, KPMG reported that:

• The financial statements were fairly presented in all material aspects in conformity with U.S. generally accepted accounting principles.
• There were no material weaknesses in internal control.
• There is a significant deficiency related to SBA’s information technology security controls, which has been identified in the past.
• There is one instance of noncompliance with laws and regulations related to the Debt Collection Improvement Act of 1996, which also has been reported in the past.

KPMG noted that SBA management identified a matter that may be reported as a violation of the Antideficiency Act.  The outcome of this matter and any resulting ramifications is not presently known. Details regarding KPMG’s conclusions are included in the “Compliance and Other Matters” section, and Exhibit I to this report.  Within 30 days of this report, KPMG expects to issue a separate letter to SBA management regarding other, less significant matters that came to its attention during the audit.