SBA’s FY 2019 Cash Contributions and Gifts

OIG conducted a review and reported the results of its review of SBA's FY 2019 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 year 2019.

The Consolidated Appropriations Act of 2019 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 had adequate controls over the solicitation, acceptance, and holding of cash contributions and gifts. However, improvement is needed in the Agency’s controls over the utilization of gift funds in accordance with SBA policies. Specifically, SBA grant personnel did not ensure that claimed grant costs had adequate supporting documentation. As a result, we identified $7,602 in reimbursed grant costs that were not adequately supported in accordance with SBA policy. The report contains two recommendations that we consider resolved.