SBA document page, Independent Auditors’ Report on SBA’s Fiscal Year 2024 Financial Statements

Summary

Report 25-05 of the U.S. Small Business Administration (SBA) Office of Inspector General (OIG) presents KPMG LLP's audit of SBA's consolidated balance sheets as of September 30, 2024 and 2023. KPMG issued a disclaimer of opinion because, due to inadequate processes and controls, SBA was unable to provide adequate evidential matter for a significant number of transactions and balances related to the Paycheck Protection Program, Economic Injury Disaster Loan program, Restaurant Revitalization Fund, and the Shuttered Venue Operators Grant program. KPMG identified seven material weaknesses and two significant deficiencies in internal control over financial reporting. SBA's Chief Financial Officer concurred with the findings and recommendations and agreed to implement the recommendations.

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Report 25-05

Independent Auditors’ Report on SBA’s Fiscal Year 2024 Financial Statements

This report presents the findings of an Independent Auditors’ Audit of SBA’s Fiscal Year 2024 Financial Statements.

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The U.S. Small Business Administration (SBA) Office of Inspector General (OIG) contracted with the independent certified public accounting firm KPMG LLP to conduct an audit of SBA’s consolidated balance sheets as of September 30, 2024 and 2023 and the related notes to these statements. Our contract with KPMG required that the audit be performed in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Bulletin No. 24-02, Audit Requirements for Federal Financial Statements.

In the audit, KPMG reported significant matters for which they were unable to obtain sufficient and appropriate audit evidence to provide a basis for an audit opinion on SBA’s balance sheet as of September 30, 2024. Accordingly, KPMG issued a disclaimer of opinion on the consolidated balance sheets as of September 30, 2024 and 2023.

The basis for the disclaimer was that due to inadequate processes and controls, SBA was unable to provide adequate evidential matter in support of a significant number of transactions and account balances related to the Paycheck Protection Program, Economic Injury Disaster Loan program, Restaurant Revitalization Fund, and the Shuttered Venue Operators Grant program.

As a result, KPMG was unable to determine whether any adjustments might have been necessary with respect to the following:

- Credit program receivables and related foreclosed property,
- Other than intragovernmental accounts receivable,
- Downward re-estimate payable to Treasury, and
- Loan Guarantee Liabilities and the related notes.

For the period that ended September 30, 2024, KPMG identified seven material weaknesses and two significant deficiencies in internal control over financial reporting. Appendixes I and II of this report describe details of KPMG’s conclusions about the material weaknesses and significant deficiencies. Appendix III describes instances of noncompliance with applicable laws or other matters required to be reported under Government Auditing Standards or OMB Bulletin No. 24-02.

We provided a draft of the KPMG report to SBA’s Chief Financial Officer, who concurred with its findings and recommendations and agreed to implement the recommendations. The Chief Financial Officer stated that SBA has undergone tremendous effort to strengthen internal controls, policies, and procedures and will continue remediation efforts in the coming audit year.

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Effective : November 15, 2024

Owned by : Office of Inspector General

Related Programs : Related programs: Agency Management

Last updated November 18, 2024

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