ROM 11-02 - Lack of Documentation and Incorrect Accounting for Recovery Act 7(a) Loan Guarantee Approvals

Attached is the Management Letter issued by KPMG LLP which identifies a matter that came to their attention during the audit of SBA' s FY 2010 financial statements. The objective was to determine SBA's compliance with its guidance for approving 7(a) loan guaranties funded under the Recovery Act.

KPMG addressed recommendations to the Director for the Office of Financial Program Operations. We provided a draft of KPMG's report to this official or his designee, who concurred with the finding. The official or designee agreed to implement the recommendations or has already taken action to address the underlying conditions.