SBA document page, Independent Auditors’ Report on SBA’s Fiscal Year 2023 Financial Statements

Summary

Report 24-03 of SBA's Office of Inspector General presents KPMG LLP's audit of the consolidated balance sheets as of September 30, 2023 and 2022. KPMG could not obtain sufficient and appropriate audit evidence for an opinion and issued a disclaimer of opinion. The basis was that, due to inadequate processes and controls, SBA could not support a significant number of transactions and balances tied to the Paycheck Protection Program, the Economic Injury Disaster Loan program, the Restaurant Revitalization Fund, and the Shuttered Venue Operators Grant program. For the period ended September 30, 2023, KPMG identified six material weaknesses and three significant deficiencies.

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Report 24-03

Independent Auditors’ Report on SBA’s Fiscal Year 2023 Financial Statements

This report presents the findings of an Independent Auditors’ Audit of SBA’s Fiscal Year 2023 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, 2023 and 2022 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. 24-01, 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, 2023. Accordingly, KPMG issued a disclaimer of opinion on the consolidated balance sheets as of September 30, 2023 and 2022.

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, the Restaurant Revitalization Fund, and 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 line items and the related notes:

- Credit Program Receivables and Related Foreclosed Property, Net
- Other than Intragovernmental Accounts Receivable, Net
- Downward Reestimate Payable to Treasury
- Loan Guarantee Liabilities

For the period ended September 30, 2023, KPMG identified six material weaknesses and three significant deficiencies in internal control over financial reporting. Appendices I and II of this report describe d etails 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. 24-01 .

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Effective : November 15, 2023

Owned by : Office of Inspector General

Related Programs : Related programs: Agency Management

Last updated November 15, 2023

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