SBA's FY 2016 and FY 2017 Cash Contributions and Gifts

Date Issued: 
Monday, November 20, 2017
Report Number: 

The Consolidated Appropriations Acts of 2016 and 2017 (the Acts) granted the Small Business Administration (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.  The Administrator may provide assistance for the benefit of small business through Agency-sponsored activities, through cosponsored activities with any eligible entity, or through such other activities that the Administrator determines to be appropriate, including recognition events.

Our evaluation found that SBA complied with the Acts when holding cash by depositing $105,236.99 to the Business Assistance Trust Fund and making it available to program offices for expenditure.  However, SBA could improve its controls over the processes for soliciting and accepting cash contributions, and for utilizing gift funds.  Specifically, we noted exceptions regarding the vetting of cosponsors and performing the conflict of interest determinations, complying with SBA and Federal guidance when utilizing gift funds, and tracking gift funds that were allotted to the program offices.  The report contains three recommendations that the Agency agreed to implement.

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SBA's FY 2016 and FY 2017 Cash Contributions and Gifts 367Kb