Independent Auditors’ Report on SBA’s Compliance with IPERA

We contracted with the independent certified public accounting firm KPMG LLP (KPMG) to perform a performance audit as required by the Improper Payments Elimination and Recovery Act of 2010 (IPERA). The objectives of the engagement were to review the payment integrity section of SBA’s Fiscal Year (FY) 2019 Agency Financial Report to determine whether the agency is in compliance with the Improper Payments Information Act of 2002 (IPIA) as amended. KPMG also evaluated the agency’s accuracy and completeness of reporting and performance in reducing and recapturing improper payments. KPMG conducted the engagement in accordance with consulting services standards established by the American Institute of Certified Public Accountants, the standards applicable to performance audits contained in the U.S. Government Accountability Office’s (GAO) Government Auditing Standards issued by the Comptroller General of the United States, and guidance as defined by the Council of the Inspectors General on Integrity and Efficiency (CIGIE) Guidance for Improper Payments Elimination and Recovery Act Compliance Reviews.

The attached independent auditors’ report presents KPMG’s findings on the agency’s improper payment reporting required under IPERA. Specifically, KPMG reported that:

• SBA complied with the six IPERA reporting requirements;

• improvement was needed over the completeness and accuracy of improper payment reporting; and

• SBA reduced the improper payment rates for most programs.

The report contains four recommendations to improve the effectiveness of improper payment controls. These recommendations will remain open until OIG receives documentation demonstrating that these recommendations have been addressed. We requested that SBA provide us within 90 days their progress in addressing these recommendations.