SBA document page, Independent Auditors’ Report on SBA’s Fiscal Year 2022 Compliance with the Payment Integrity Information Act of 2019

Summary

Report 23-07 of SBA's Office of Inspector General presents a performance audit by KPMG LLP of SBA's Fiscal Year (FY) 2022 compliance with the Payment Integrity Information Act of 2019. KPMG auditors found SBA was not compliant with 9 of the 10 reporting requirements under the Act and Office of Management and Budget (OMB) guidance. Findings include that the sampling and estimation methodology plans were not appropriate for disaster assistance loans, COVID-19 EIDL and the Targeted Advance programs. The improper payment estimate for 7(a) loan guaranty purchases increased between fiscal years 2021 and 2022, and SBA did not publish improper payment estimates for PPP loan guaranty purchases and forgiveness activities.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Report 23-07

Independent Auditors’ Report on SBA’s Fiscal Year 2022 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) 2022 compliance with the Act. The auditor was engaged to review the payment integrity section of SBA’s Agency Financial Report Fiscal Year 2022 (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 9 of the 10 reporting requirements under the Act and Office of Management and Budget (OMB) guidance.

- The agency’s risk assessment methodology did not consider certain identified risk factors to adequately conclude whether the Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and the payments for covered loans in the 7(a) and 504 Certified Development Company loan guaranty programs under the debt relief assistance program were likely to include improper and unknown payments above or below the statutory threshold.
- The sampling and estimation methodology plans were not appropriate for the SBA disaster assistance loans, COVID-19 Economic Injury Disaster Loans (COVID-19 EIDL), and Economic Injury Disaster Loan Targeted Advance programs and activities.
- SBA did not demonstrate improvements to payment integrity for 7(a) loan guaranty purchases because the improper payment estimate increased between fiscal years 2021 and 2022, and
- SBA did not publish improper and unknown payment estimates, corrective action plans, and reduction targets within the AFR and accompanying materials for PPP loan guaranty purchases and forgiveness activities.

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.

Download .pdf

File size: 493KB

Effective : May 15, 2023

Owned by : Office of Inspector General

Related Programs : Related programs: Agency Management

Last updated May 15, 2023

File and source

File

report-23-07-independent-auditors-report-sbas-fiscal-year-2022-compliance-payment.html

Size

36,804 bytes

SHA-256

d0bb909e9152a48fb0cc3e4e7c411d24170e94fb3e5d92eec80dfa42d4636ed4

Our copy

report-23-07-independent-auditors-report-sbas-fiscal-year-2022-compliance-payment.html

Original

legacy.sba.gov