Report 17-07: FY 2016 SBA Charge Card Programs Risk Assessment and Status of Prior Audit Recommendations

Date Issued: 
Wednesday, January 18, 2017
Report Number: 

This memorandum report presents the results of our risk assessment regarding the Small Business Administration’s (SBA’s) internal controls over its purchase and travel charge card programs for fiscal year 2016, and was performed in accordance with Office of Management and Budget (OMB) Memorandum M-13-21, Implementation of the Government Charge Card Abuse Prevention Act of 2012.  Our objectives were to (1) assess risks of illegal, improper, or erroneous purchases and payments associated with SBA’s purchase and travel card programs and (2) determine the status of prior year recommendations.

While SBA has implemented internal controls and guidance to administer its travel and purchase charge card programs, it could make additional improvements on its risk management controls and practices.  Specifically, SBA has not implemented a formal policy to timely collect on delinquent travel cardholder accounts, and it needs to implement components of strategic sourcing guidelines to address the requirements in Appendix B to OMB Circular No. A-123, Improving the Management of Government Charge Card Programs, revised.  We made two recommendations to strengthen SBA’s risk management controls for charge card programs.  The agency agreed to implement the recommendations.