KPMG Management Letters Communicating Matters Relative to SBA's FY 2017 Financial Statement Audit and DATA Act Attestation Engagement

We contracted with the independent certified public accounting firm KPMG LLP (KPMG) to audit the U.S. Small Business Administration’s (SBA’s) consolidated financial statements for fiscal year (FY) 2017, ending September 30, 2017, and to perform an attestation engagement regarding SBA’s FY 2017 second quarter submission, in accordance with the Digital Accountability and Transparency Act of 2014 (DATA Act).

The management letters represent matters that were identified during the respective engagements.  Specifically, KPMG reported that

• there were inadequate reviews of time and attendance reports for the financial statement audit (see Exhibit I), and
• improvement was needed in information technology general and application controls related to the DATA Act (see Exhibit II).

In the management letters, KPMG addressed recommendations to the Chief Human Capital Officer, and the Chief Information Officer in coordination with SBA program offices.  We provided a draft of KPMG’s findings to each of these officials or their designees, who fully or substantially concurred with the findings relative to their respective areas.  The officials or designees agreed to implement the recommendations or have already taken action to address the underlying conditions.