SBA’s Controls Over Cash Contributions and Gifts, FY 2018 and 2019

The objective of the review was to determine whether the Small Business Administration (SBA) had adequate controls over soliciting, accepting, holding, and utilizing cash contributions and gifts. To accomplish our objective, we interviewed key SBA employees and reviewed various management and financial records available for FYs 2018 and 2019. We also reviewed applicable laws, regulations, policies, procedures, and SBA documents such as internal and external correspondence, financial management system reports, accounting records, and various other documents.

We found that SBA complied with the Acts regarding soliciting and accepting cash contributions and gifts. SBA’s Office of Communications and Public Liaison obtained proper approval from the Office of General Counsel for the 2018 National Small Business Week cosponsored activity. The 21 entities that cosponsored 2018 National Small Business Week, with cash contributions, were properly vetted through SBA program offices to ensure no business relationships existed that would cause a conflict of interest. Also, the Agency accepted a $100,000 unsolicited gift and determined the donor had no conflict of interest with the Agency. The funds were deposited and held in the Business Assistance Trust Fund. Further, the Agency utilized gift funds in accordance with SBA regulations and policy. However, we determined that the Office of Strategic Alliances did not implement adequate controls to oversee and monitor cash held on account by its National Small Business Week fiscal agent on behalf of the Agency. As a result, cash held by the fiscal agent may be vulnerable to the risk of mismanagement, loss, or unauthorized use.

This report contains three recommendations that SBA management agreed to implement.