SBA Controls Over FY 2017 and 2018 Cash Contributions and Gifts

Our objective was to determine the adequacy of SBA controls over the solicitation, acceptance, holding, and utilization of cash contributions and gifts in fiscal years 2017 and 2018.

The Consolidated Appropriations Acts of 2017 and 2018 (the Acts) granted SBA the authority to accept gifts and to cosponsor activities. The Administrator may solicit and accept gifts on behalf of SBA after proper approvals, including a conflict of interest determination by SBA’s Office of General Counsel. Authorized purposes for which gifts may be solicited or accepted include, but are not limited to, gifts in support of cosponsored activities, SBA-sponsored activities, general SBA marketing and outreach activities, and other activities that further the mission of the Agency, as determined by the Administrator or designee.

We found that SBA complied with the Acts when accepting and holding cash by depositing $2,702.00 to the Business Assistance Trust Fund and making it available to program offices for expenditure. No gifts were solicited during our scope period. However, improvement is needed in the Agency’s controls over the utilization of gift funds in accordance with SBA regulations and policies. Specifically, we noted exceptions regarding the tracking of gift funds that were allotted to the program offices. The report contains two recommendations that the Agency agreed to implement.