Audit Report 14-07: Management Letter-SBA’s FY 2013 Financial Statement Audit.

On January 15, 2014, the OIG issued the Independent Public Accountant or IPA’s Management Letter in Audit Report 14-07, Management Letter-SBA’s FY 2013 Financial Statement Audit. The IPA’s management letter includes information related to non-reportable findings discovered during the IPA’s audit of SBA’s FY 2013 financial statements.

In this letter, the IPA noted seven matters involving internal controls and other operational matters that included: (1) improvement needed in the documentation of the obligations review process; (2) missing loan file documentation; (3) untimely post-purchase and charge-off reviews and untimely processing of charge-off transactions; (4) lack of required sign-offs on guaranty purchases and charge-offs; (5) incorrect amount paid at the time of purchase guaranty; (6) inadequate review of Star and Attendance Reports; and (7) improvement needed in the employee separation process. The IPA made 21 recommendations to which agency officials or designees agreed to implement or have already taken action to address the underlying conditions.