SBA document page, Independent Auditors’ Report on SBA’s Fiscal Year 2023 Compliance with the Payment Integrity Information Act of 2019

Summary

Report 24-16 of SBA's Office of Inspector General presents KPMG LLP's performance audit of SBA's fiscal year (FY) 2023 compliance with the Payment Integrity Information Act of 2019. KPMG auditors found SBA was not compliant with 8 of the 10 reporting requirements under the Act and Office of Management and Budget guidance. The report says SBA did not publish improper and unknown payment estimates for the Restaurant Revitalization Fund and Shuttered Venue Operators Grant, among others, and did not publish effective corrective action plans for disaster assistance loans and PPP loan forgiveness. Improper payment estimates increased between FYs 2022 and 2023 for programs including 7(a) loan guaranty approvals and COVID-19 EIDL.

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Report 24-16

Independent Auditors’ Report on SBA’s Fiscal Year 2023 Compliance with the Payment Integrity Information Act of 2019

This independent auditors’ report on the U.S. Small Business Administration’s (SBA) improper payment reporting is required by the Payment Integrity Information Act of 2019.

About this document and download

This independent auditors’ report on the U.S. Small Business Administration’s (SBA) improper payment reporting is required by the Payment Integrity Information Act of 2019. We contracted with the independent certified public accounting firm KPMG LLP to conduct a performance audit of SBA’s fiscal year (FY) 2023 compliance with the Act. The auditor was engaged to review the payment integrity section of SBA’s Agency Financial Report Fiscal Year 2023 (AFR) and accompanying materials to determine whether the agency complied with the reporting requirements under the Act.

In the report, KPMG auditors found SBA was not compliant with 8 of the 10 reporting requirements under the Act and Office of Management and Budget guidance. Specifically, SBA is not compliant with the Act because it did not:

- Publish improper and unknown payment estimates in the FY 2023 agency AFR and accompanying materials for the Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and payments for covered loans in the 7(a) and 504 loan guaranty programs under the Debt Relief Program.
- Use appropriate sampling and estimation methodology plans for disaster assistance loans, Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loans (EIDL), and EIDL Targeted Advance programs and activities.
- Did not publish effective corrective action plans for the disaster assistance loans, PPP loan forgiveness, and PPP loan guaranty purchases programs and activities.
- Demonstrate improvements to payment integrity for 7(a) loan guaranty approvals, 7(a) loan guaranty purchases, 504 Certified Development Company loan approvals, disaster assistance loans, and COVID-19 EIDL programs and activities as the improper payment estimates increased between FYs 2022 and 2023.

SBA indicates that it is committed to reducing the dollar amount of improper payments, ensuring program integrity, and continuing to implement effective risk management procedures in accordance with improper payment legislation.

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Effective : May 15, 2024

Owned by : Office of Inspector General

Related Programs : Related programs: 7(a), Agency Management, CDC/504, Pandemic Oversight, PPP

Last updated May 15, 2024

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