Audit Report 15-02: Independent Auditors’ Report on the SBA’s FY 2014 Financial Statements

On November 17, 2014, the OIG issued the Independent Auditors’ Report on the SBA’s FY 2014 Financial Statements – Report No. 15-02.  The OIG contracted with the independent certified public accounting firm KPMG LLP (KPMG) to audit the U.S. Small Business Administration’s (SBA) consolidated financial statements for fiscal year (FY) 2014, ending September 30, 2014.  This audit is an annual requirement of the Chief Financial Officers Act of 1990, and was conducted in accordance with the Generally Accepted Government Auditing Standards; the Office of Management and Budget Bulletin No. 14-02, Audit Requirements for Federal Financial Statements; and the U.S. Government Accountability Office’s Financial Audit Manual and Federal Information System Controls Audit Manual.

The attached independent auditor’s report presents an unmodified opinion on the SBA’s consolidated financial statements for FY 2014.  Specifically, KPMG reported that:

• The financial statements were fairly presented in all material aspects in conformity with U.S. generally accepted accounting principles.
• There were no material weaknesses in internal control.
• There is a significant deficiency related to the SBA’s information technology security controls, which has been identified in the past.
• There is one instance of noncompliance with laws and regulations related to the Debt Collection Improvement Act of 1996, which also has been reported in the past.

Details regarding KPMG’s conclusions are included in the “Compliance and Other Matters” section, and Exhibits I and II to this report.  Within 30 days of this report, KPMG expects to issue a separate letter to SBA management regarding other, less significant matters that came to its attention during the audit.