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Small Business Administration Inspector General Lists Fraud and Inefficiencies Among Concerns in Annual Report

WASHINGTON — Today, the House Committee on Small Business heard from the United States Small Business Administration’s (SBA) Office of Inspector General (OIG) on the most serious management and performance challenges facing the SBA. 

“Since 2001, the OIG has provided a yearly report to Congress which outlines the SBA’s management challenges and recommendations to resolve each challenge. Each challenge represents an area in which the Agency is vulnerable to waste, fraud, and abuse,” said Ranking Member Steve Chabot (R-OH).  “When compared with previous years’ reports, it appears that the SBA has not made sufficient progress implementing OIG’s recommendations to statutorily mandated programs and functions.”

Progress Made on Audit Recommendations but Concerns Remain for Many Programs

“The SBA’s programs are essential to strengthening America’s economy; however, the [SBA] faces a number of challenges in carrying out its mission.  Challenges include fraudulent schemes affecting all SBA programs, significant losses from defaulted loans, procurement flaws that allow large firms to obtain small business awards, excessive improper payments, and outdated legacy information systems,” said Mr. Hannibal “Mike” Ware, Inspector General, United States Small Business Administration, in Washington, DC.  “Notwithstanding [the OIG’s] efforts, our audits and investigations continue to find the [SBA] facing significant risks in loan program oversight and controls, oversight of its statutory programs to promote small business development and government contracting, and deploying information technology and related cybersecurity controls.”

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