Reports

Small Business Administration OIG

SBA’s Restaurant Revitalization Fund Program Award Practices

This SBA OIG pandemic oversight report reviewed the U.S. Small Business Administration’s Restaurant Revitalization Fund application review and approval process. The objective of this review was to determine whether the controls SBA implemented to award RRF program funds in accordance with the Act and other applicable guidance were effective. SBA developed an implementation plan including a risk framework that was intended to reduce the risk of making improper payments and awarding Restaurant Revitalization Funds (RRF) to ineligible recipients. However, the plan did not include all program...

Full Details: Oversight.gov Report Page

Audit | 3/26/2024

Small Business Administration OIG

Ending Active Collections on Delinquent COVID-19 Economic Injury Disaster Loans

The Small Business Administration's (SBA) Office of Inspector General (OIG) is issuing this management advisory to bring attention to concerns regarding SBA’s decision to end active collections on delinquent COVID-19 Economic Injury Disaster Loans (EIDL) with an outstanding balance of $100,000 or less. First, SBA’s decision to cease collections risks violating the Debt Collection Improvement Act of 1996, which prohibits ending collections on fraudulent, false, or misrepresented claims, because SBA OIG and other oversight agencies are continuing to work on identifying COVID-19 EIDL fraud that...

Full Details: Oversight.gov Report Page

Audit | 9/29/2023

1 - Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to perform a comprehensive cost-benefit analysis, consistent with federal regulations, to include periodic comparisons of costs incurred and amounts collected on the portfolio of COVID-19 EIDLs of $100,000 or less to assess whether collection costs exceed recovery amounts.

2 - Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to reevaluate and amend as appropriate the April 27, 2022 decision to end active collections contingent on the outcome of the more comprehensive cost-benefit analysis.

3 - Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to ensure SBA does not end active collections pursuant to the April 27, 2022 decision on any COVID-19 EIDL of $100,000 or less made to borrowers who received multiple COVID-19 EIDLs that, when combined, exceed $100,000.

4 - Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to ensure SBA does not end active collections on any COVID-19 EIDL that appears to be fraudulent, false, or misrepresented, including loans identified as such by OIG or other federal oversight entities, without 1) reviewing the loan application for fraud and 2) attempting active collection, at a minimum, regardless of the outcome of a comprehensive cost-benefit analysis.

5 - Open

To maximize the return to taxpayers, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to evaluate the COVID-19 EIDL portfolio, in collaboration with Treasury, to determine if selling the portfolio, including delinquent loans of $100,000 or less, is in the best interest of the government.

Small Business Administration OIG

SBA’s Oversight of Restaurant Revitalization Fund Recipients

We reviewed the U.S. Small Business Administration’s (SBA) oversight of Restaurant Revitalization Fund (RRF) recipients. The American Rescue Plan Act of 2021 authorized SBA to administer the RRF and provided $28.6 billion to assist eligible small businesses adversely affected by the Coronavirus Disease 2019 (COVID-19) pandemic. We determined program officials developed a plan for monitoring RRF award recipients use of funds and recovering unused or improperly awarded funds. However, program implementation was not executed in accordance with the plan. We made six recommendations for SBA to...

Full Details: Oversight.gov Report Page

Audit | 9/29/2023

Small Business Administration OIG

COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape

The U.S. Small Business Administration (SBA) Office of Inspector General (OIG) conducted this review to provide a comprehensive estimate of the potential fraud in the U.S. Small Business Administration’s (SBA) pandemic assistance loan programs. Over the course of the Coronavirus Disease 2019 (COVID-19) pandemic, SBA disbursed approximately $1.2 trillion of COVID-19 Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds. In the rush to swiftly disburse COVID-19 EIDL and PPP funds, SBA calibrated its internal controls. The agency weakened or removed the controls...

Full Details: Oversight.gov Report Page

Small Business Administration OIG

Serious Concerns Regarding the Return of Paycheck Protection Program Funds

The Office of Inspector General (OIG) is issuing this management advisory to bring to your attention concerns regarding the return of Paycheck Protection Program (PPP) funds. This issue requires immediate attention and action by the U.S. Small Business Administration (SBA) to ensure it has processes and procedures in place to adequately accept, process, and account for PPP funds returned by borrowers, lenders, and financial institutions. Expedited management action should mitigate the risk of financial loss to taxpayers. Establishing clear and detailed guidance for borrowers, lenders, and...

Full Details: Oversight.gov Report Page

Small Business Administration OIG

White Paper: 7(a) Loan Program During SBA’s Response to the COVID-19 Pandemic

We prepared this white paper to report on the U.S. Small Business Administration’s (SBA) 7(a) loan program performance during SBA’s response to the Coronavirus Disease 2019 (COVID-19) pandemic and address potential risks SBA should consider in managing the program. We identified factors that could impact the 7(a) loan program and should be considered in SBA’s program risk strategy. Specifically, in FY 2021, the total amount of loans increased to $31.4 billion from $19.4 billion in FY 2020 (62 percent increase) and $20.6 billion in FY 2019 (53 percent increase), as did the average loan amount...

Full Details: Oversight.gov Report Page

Small Business Administration OIG

COVID-19 and Disaster Assistance Information Systems Security Controls

This report presents the results of our audit to determine whether the U.S. Small Business Administration (SBA) maintained effective management control activities and monitoring of the design and implementation of third-party operated SBA systems. SBA needed information technology systems from third-party service providers that could improve the system efficiency and productivity to process high transaction volumes, transmit data between other information systems, and safeguard the integrity and confidentiality of the personally identifiable information processed by the programs. We found the...

Full Details: Oversight.gov Report Page

Audit | 9/27/2022

1 - Open

Ensure the existing SBA System Development Methodology is updated to include supply chain risk-management practices as required by OMB Circular A-130 and high-value asset system designation guidance. Also, ensure high-value asset system risks are incorporated into the enterprise risk management framework, as recommended by OMB M-19-03 and SBA SOP 90 47 6.

10 - Open

Implement an automated process to document and monitor system changes as recommended by NIST SP 800-53 Rev. 5.

2 - Open

Communicate and enforce the SBA System Development Methodology in which a traceability matrix is used to ensure that system requirements can be tested and demonstrated in the operational system. Ensure all requirements are aligned with the contractual acceptance criteria.

3 - Open

Implement in updated agency guidance, the requirements of OMB Circular No. A-123 that stipulate a SOC 1 Type 2 report is needed for all new and existing financial systems. This guidance should also require confirmation at least annually that the controls are functioning as designed.

4 - Closed

Enforce the requirement to establish and implement internal controls to ensure appropriate program officials perform and document contract reviews to ensure that information security is appropriately addressed in the contracting language, as required by OMB Circular A-130 and SBA SOP 90 47 6.

5 - Open

In conjunction with the Enterprise Risk Management Board, implement enterprise-wide privacy risk mitigation practices that can be assimilated into new and existing system program designs.

6 - Open

Complete an initial assessment and authorization for each information system and all agency-designated common controls before operation.

7 - Open

Transition information systems and common controls to an ongoing authorization process (when eligible for such a process) with the formal approval of the respective authorizing officials or reauthorize information systems and common controls as needed, on a time or event-driven basis in accordance with agency risk tolerance, as required by OMB Circular No. A-130 and SOP 90 47 6.

8 - Open

Review and update POA&Ms at least quarterly as required by SOP 90 47 6.

9 - Closed

Ensure data-sharing agreements are reviewed annually as required by SBA SOP 90 47 6.

Small Business Administration OIG

COVID-19 Economic Injury Disaster Loan Applications Submitted from Foreign IP Addresses

We evaluated the U.S. Small Business Administration’s (SBA) controls to flag or prevent potentially fraudulent Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loan (EIDL) applications submitted from foreign Internet Protocol (IP) addresses. Although the agency implemented several layers of controls to prevent or reduce fraud from foreign countries, individuals at foreign IP addresses were able to access the COVID-19 EIDL application system. SBA received millions of attempts to submit COVID-19 EIDL applications from foreign IP addresses and stopped most of them; however, the agency...

Full Details: Oversight.gov Report Page

Audit | 9/12/2022

National Science Foundation OIG

Performance Audit of the Implementation of OMB COVID-19 Flexibilities – University of Michigan

Full Details: Oversight.gov Report Page

Audit | 8/02/2021

National Science Foundation OIG

Performance Audit of the Implementation of OMB COVID-19 Flexibilities – University of Central Florida

Full Details: Oversight.gov Report Page

Audit | 5/27/2021

Finding 1, Rec. 1 - Closed

Direct UCF to provide documentation supporting that it has repaid or otherwise credited the $134 in questioned fringe benefit costs for which it has agreed to reimburse NSF.

Finding 1, Rec. 2 - Closed

Direct UCF to notify its Federal sponsors that its personnel have not yet certified their effort for the Fall 2019, Spring 2020, Summer 2020, and Fall 2020 semesters.

Finding 1, Rec. 3 - Closed

Direct UCF to require its employees to certify their effort for the Fall 2019, Spring 2020, Summer 2020, and Fall 2020 semesters and then process any cost transfers needed to ensure that UCF charged NSF for salary costs that were consistent with the effort certified.

Finding 1, Rec. 4 - Closed

Direct UCF to review all salary earned during June 2020 to verify that its accounting system appropriately applied fringe benefits at the correct rate and, if the accounting system did not apply fringe benefits at the correct rate, process any adjustments necessary.

Finding 2, Rec. 1 - Closed

Direct UCF to provide documentation supporting that it has repaid or otherwise credited the $160 of questioned participant support costs for which it has agreed to reimburse NSF.

Finding 2, Rec. 2 - Closed

Direct UCF to establish policies and procedures to ensure that it obtains and documents proper approval for insurance costs before charging the costs to NSF awards.

Finding 2, Rec. 3 - Closed

Direct UCF to establish policies and procedures to ensure that it does not apply fringe benefit rates to participant support costs that it processes through its payroll subledger.

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State/Local Agency

State (State and Local Reports)

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Management Challenges

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Reports

SBA’s Restaurant Revitalization Fund Program Award Practices

Ending Active Collections on Delinquent COVID-19 Economic Injury Disaster Loans

SBA’s Oversight of Restaurant Revitalization Fund Recipients

COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape

Serious Concerns Regarding the Return of Paycheck Protection Program Funds

White Paper: 7(a) Loan Program During SBA’s Response to the COVID-19 Pandemic

COVID-19 and Disaster Assistance Information Systems Security Controls

COVID-19 Economic Injury Disaster Loan Applications Submitted from Foreign IP Addresses

Performance Audit of the Implementation of OMB COVID-19 Flexibilities – University of Michigan

Performance Audit of the Implementation of OMB COVID-19 Flexibilities – University of Central Florida

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