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OIG Reports

Audit Report 3-23: Audit of Selected Aspects of the Service Corps of Retired Executives (SCORE) Program

Date Issued: 
Friday, April 11, 2003
Report Number: 

On April 11, 2003, the OIG issued Audit Report 3-23, Audit of Selected Aspects of the Service Corps of Retired Executives (SCORE) Program.  This limited scope audit of the SCORE Program was conducted at the request of SBA’s Office of Procurement and Grants to determine SCORE’s compliance with applicable rules and regulations, and SBA’s monitoring of its cooperative agreement with SCORE. The objectives of our audit were to (1) assess controls put in place by management to ensure appropriate use of Federal funds, (2) review SBA’s role in monitoring the financial and performance aspects of the cooperative agreement award, (3) determine the scope and extent of SCORE’s independent auditor’s testing relative to its single audit, and (4) assess SCORE’s FY 2002 proposed salaries for its three highest paid positions to determine if the proposed salaries were allowable and reasonable.

The Service Corps of Retired Executives (SCORE) is a nonprofit organization and one of SBA’s primary resource partners.  It provides services to the small business community through counseling, educational training workshops, and online assistance.  Organizationally, SCORE consists of a national headquarters in Washington, DC, and 389 chapters located throughout the United States and its territories and possessions.  The primary mission of the National Score Office (NSO) is to support the business counseling and workshop services that take place in the field.  They also provide resources and marketing support for SCORE programs locally and nationally.  Chapters are unit members of SCORE located outside of the headquarters office.  Their primary purpose is to provide professional training and counseling. 


The OIG determined that the NSO had an internal control structure in place to ensure appropriate use of Federal funds, however, it did not (1) report program income earned by its chapters on SBA Form 269, Financial Status Report, as required by the terms and conditions of the Notice of Award.  Further, the NSO did not (2) include its chapters’ financial activities in its financial statements in accordance with financial accounting standards.  Additionally, the OIG determined that SBA’s monitoring of the performance and financial aspects of the award should be strengthened. The OIG did not determine whether the established salary levels for the three highest paid salaried positions for FY 2002 were allowable and reasonable because SCORE’s statutory authority does not explicitly address the SBA providing funding to SCORE for its paid positions.  Additionally, the SBA has not developed supplemental policies to govern the creation and compensation of administrative positions.


File Attachments: 
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Audit 3-23 The Service Corps of Retired Executives Program 4 472Kb