Featured Stories
SBA IG: 'U.S. Small Business Administration Office of Inspector General - Open Recommendations'
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report on March 11, 2026 entitled "U.S. Small Business Administration Office of Inspector General - Open Recommendations."
Here are excerpts:
* * *
The Office of Inspector General (OIG) is issuing this report to show those recommendations from U.S. Small Business Administration (SBA) Office of Inspector General (OIG) reports that remained open as of December 31, 2025. As of that date, there were 174 open OIG recommendations. SBA provided updates for certain recommendations prior to the date
... Show Full Article
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report on March 11, 2026 entitled "U.S. Small Business Administration Office of Inspector General - Open Recommendations."
Here are excerpts:
* * *
The Office of Inspector General (OIG) is issuing this report to show those recommendations from U.S. Small Business Administration (SBA) Office of Inspector General (OIG) reports that remained open as of December 31, 2025. As of that date, there were 174 open OIG recommendations. SBA provided updates for certain recommendations prior to the dateof this report which may still be under review by OIG. The status of each recommendation is subject to change as we independently review SBA's ongoing implementation.
* * *
The report is posted at: https://www.sba.gov/document/report-us-small-business-administration-office-inspector-general-open-recommendations
[Category: IGIGRep]
SBA IG: 'SBA's Screening of 7(a) Loan Applications Under Its Risk Mitigation Framework'
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report (No. 26-07) on March 11, 2026 entitled "SBA's Screening of 7(a) Loan Applications Under its Risk Mitigation Framework."
Here is the executive summary:
* * *
What OIG Reviewed
This report presents the results of our evaluation of the Small Business Administration's (SBA) screening of 7(a) loan applications under its Risk Mitigation Framework. On August 1, 2023, SBA assumed responsibility for determining applicants' eligibility via a framework that involved using technology for real
... Show Full Article
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report (No. 26-07) on March 11, 2026 entitled "SBA's Screening of 7(a) Loan Applications Under its Risk Mitigation Framework."
Here is the executive summary:
* * *
What OIG Reviewed
This report presents the results of our evaluation of the Small Business Administration's (SBA) screening of 7(a) loan applications under its Risk Mitigation Framework. On August 1, 2023, SBA assumed responsibility for determining applicants' eligibility via a framework that involved using technology for realtime validation of applicant data. Prior to this, lenders were responsible for certifying applicant eligibility for 7(a) loans.
Using the framework, SBA screened applicants and alerted lenders to potential eligibility issues using compliance check error codes. The lender was then required to work with SBA to clear the code. If SBA verified an applicant to be eligible who was later discovered to be ineligible, SBA could not use that discovery to repair or deny the lender's guaranty purchase request.
From August 1, 2023, to December 31, 2024, SBA approved and disbursed 73,302 7(a) loans totaling about $32 billion, using the framework to determine applicants' eligibility. Of the 73,302 loans, 9,650, totaling about $5.9 billion, had at least one resolved error code.
Effective June 1, 2025, SBA is no longer responsible for determining applicants' eligibility and, instead, has restored this responsibility back to the lenders.
Our objective was to assess SBA's screening of 7(a) loan applications under its Risk Mitigation Framework.
What OIG Found
SBA's Risk Mitigation Framework was not sufficient to determine borrowers' eligibility because it did not screen or fully screen for three of the six eligibility requirements. Specifically, the framework did not screen to determine whether a small business (1) was organized for profit, (2) met SBA's size requirements, or (3) was an ineligible business type.
Additionally, we reviewed 188 of the 9,650 loans that had at least one error code. We found SBA did not maintain sufficient documentation to support the reviewer's decision to clear error codes for 71 (or 38 percent) of the loans we reviewed, totaling about $60.7 million.
As a result of SBA's incomplete screenings, there is limited assurance that borrowers met eligibility requirements for the 73,302 loans, totaling about $32 billion in questioned costs. This includes the subset of 71 loans we identified, totaling about $60.7 million, for which SBA did not maintain sufficient documentation to support its decision to clear the error codes, further limiting this assurance.
What OIG Recommended
We made a recommendation for SBA to flag the 73,302 loans for review at guaranty purchase to assess whether borrowers met all eligibility requirements and seek remedy for all loans deemed ineligible.
Agency Response
SBA management agreed with the recommendation, stating they will flag the 73,302 loans for review at guaranty purchase and seek recovery where appropriate and legally justified. Management's planned actions satify the intent of the recommendation
* * *
The report is posted at: https://www.sba.gov/document/report-26-07-sbas-screening-7a-loan-applications-under-its-risk-mitigation-framework
[Category: IGIGRep]
SBA IG: 'Kentucky Small Business Development Center's Compliance With Cooperative Agreement Requirements'
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report (No. 26-04) on Feb. 3, 2026 entitled "Kentucky Small Business Development Center's Compliance with Cooperative Agreement Requirements."
Here is the executive summary:
* * *
What OIG Reviewed
The Small Business Administration (SBA) is authorized to make grants to states, institutions of higher education, and Women's Business Centers to establish Small Business Development Centers (SBDCs). SBDCs, which generally consist of a lead center that manages a network of service centers, provide
... Show Full Article
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report (No. 26-04) on Feb. 3, 2026 entitled "Kentucky Small Business Development Center's Compliance with Cooperative Agreement Requirements."
Here is the executive summary:
* * *
What OIG Reviewed
The Small Business Administration (SBA) is authorized to make grants to states, institutions of higher education, and Women's Business Centers to establish Small Business Development Centers (SBDCs). SBDCs, which generally consist of a lead center that manages a network of service centers, providefree business consulting and low-cost training to small businesses.
SBDC funding is provided through a cooperative agreement that establishes a partnership between SBA and an eligible entity to support its small business community. Since 1981, the University of Kentucky has been a recipient and hosts the Kentucky SBDC to administer the program.
For every dollar received from SBA, SBDCs are required to provide an equal amount of funds. For program year (PY) 2023, SBA awarded the Kentucky SBDC $1,756,008 in federal funds and the SBDC contributed $1,756,008 in matching funds, for a total of $3,512,016. The period of performance for PY 2023 was from January 1, 2023, through December 31, 2024.
Our objectives were to determine whether the SBDC met financial, programmatic, and performance requirements as prescribed in the terms and conditions of the cooperative agreement.
What OIG Found
The SBDC generally met financial requirements as prescribed in the agreement for the transactions we reviewed. Specifically, we found adequate documentation to support 129 of 131 financial transactions. However, opportunities exist for the SBDC to improve program and performance compliance.
We identified operational improvements to protect and enhance program integrity such as publicizing service center accessibility and fully informing SBDC personnel of whistleblower protections.
Further, we identified opportunities for the SBDC and SBA to strengthen their ability to accurately track and monitor progress by improving the quality and collection of data and aligning performance goals with related funding.
These improvements will ensure funds are effectively used to deliver on program goals, the network operates as intended, and support to Kentucky's small business community is effective.
What OIG Recommended
We made five recommendations for SBA to enhance and enforce financial and program compliance to strengthen program integrity, and address risks in program performance.
Agency Response
Management agreed with Recommendations 1 through 4 and disagreed with Recommendation 5. Notwithstanding the one disagreement, management's actions to work with the Kentucky SBDC officials to review questioned costs, update the SBDC's website to include service center hours and addresses, evaluate the whistleblower policy, and review reported counseling hours and capital infusion transactions resolved all recommendations.
* * *
The report is posted at: https://www.sba.gov/document/report-26-04-kentucky-small-business-development-centers-compliance-cooperative-agreement-requirements
[Category: IGIGRep]
SBA IG: 'Independent Auditors' Report on SBA's Fiscal Year 2025 Compliance With the Payment Integrity Information Act of 2019'
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report (No. 26-09) on May 15, 2026 entitled "Independent Auditors' Report on SBA's Fiscal Year 2025 Compliance with the Payment Integrity Information Act of 2019."
Here are excerpts:
* * *
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)
... Show Full Article
WASHINGTON, June 21 (TNSrep) -- The Small Business Administration Inspector General issued the following report (No. 26-09) on May 15, 2026 entitled "Independent Auditors' Report on SBA's Fiscal Year 2025 Compliance with the Payment Integrity Information Act of 2019."
Here are excerpts:
* * *
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)2025 compliance with the Act. The auditor was engaged to review the payment integrity section of SBA's Agency Financial Report Fiscal Year 2025 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 reporting requirements under the Act and Office of Management and Budget (OMB) guidance. Specifically, SBA is not compliant with the Act because it did not:
* Publish complete and accurate root causes and tolerable rates for all applicable programs, including Section 1112 payments and disaster assistance loans, and ensure they agreed with accompanying materials and supporting documentation for FY 2025.
* Perform or document updated required risk assessments for all applicable programs in FY 2025.
* Design and implement adequate review procedures to produce reliable sample results that supported accurate improper and unknown payment estimates for Paycheck Protection Program (PPP) loan guaranty purchases.
* Provide sufficient documentation to support corrective action plans or ensure those plans aligned with root causes for PPP loan guaranty purchases.
* Ensure published root causes and reduction targets were accurately disclosed, published, and consistent with accompanying materials for all applicable programs, including 7(a) loan guaranty approvals, 7(a) loan guaranty purchases, 504 Certified Development Company loan approvals, disaster assistance loans, PPP loan forgiveness, and PPP loan guaranty purchases, and Section 1112 payments.
* Improve improper and unknown payment rates or meet established reduction targets for 7(a) loan guaranty approvals, 504 Certified Development Company loan approvals, disaster assistance loans, PPP loan forgiveness, and PPP loan guaranty purchases.
* Submit all required quarterly information to OMB for PPP loan forgiveness and PPP loan guaranty purchases.
* Publish improper payment and unknown payment rate estimates less than 10 percent for the PPP loan forgiveness, PPP loan guaranty purchases, and Shuttered Venue Operators Grant programs and include the required program integrity proposals in the congressional budget justification for the PPP loan forgiveness and PPP loan guaranty purchases programs.
SBA concurred with the recommendations and indicated 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, as well as guidance prescribed in OMB Memorandum M-21-19, Appendix C to OMB Circular A-123, Requirements for Payment Integrity Improvement.
* * *
The report is posted at: https://www.sba.gov/document/report-26-09-independent-auditors-report-sbas-fiscal-year-2025-compliance-payment-integrity-information-act-2019
[Category: IGIGRep]
GSA IG: 'PBS Is Not Effectively Tracking and Monitoring Building Studies'
WASHINGTON, June 21 (TNSrep) -- The General Services Administration Inspector General issued the following audit report on March 6, 2026 entitled "PBS Is Not Effectively Tracking and Monitoring Building Studies."
Here are excerpts:
* * *
Why We Performed This Audit
We performed this audit to assess the GSA Public Buildings Service's (PBS's) use of building studies for GSA-owned federal buildings. This audit was included in the GSA Office of Inspector General's Fiscal Year 2024 Audit Plan. Our objectives were to determine if PBS building studies: (1) result in effective federal building management
... Show Full Article
WASHINGTON, June 21 (TNSrep) -- The General Services Administration Inspector General issued the following audit report on March 6, 2026 entitled "PBS Is Not Effectively Tracking and Monitoring Building Studies."
Here are excerpts:
* * *
Why We Performed This Audit
We performed this audit to assess the GSA Public Buildings Service's (PBS's) use of building studies for GSA-owned federal buildings. This audit was included in the GSA Office of Inspector General's Fiscal Year 2024 Audit Plan. Our objectives were to determine if PBS building studies: (1) result in effective federal building managementat the best value for taxpayers and (2) are conducted in accordance with applicable laws and regulations.
What We Found
During our 5-year audit period ended September 30, 2024, PBS obligated more than $133 million for building studies commissioned by its Office of Portfolio Management alone. Building studies fill a critical need for PBS's management and oversight of its large and diverse real property portfolio. PBS hires consultants to conduct building studies to investigate and document building conditions, develop and evaluate improvement options, and provide program guidance. PBS uses these studies to inform management decisions about acquiring, renovating, operating, and maintaining buildings. Further, building studies are federal records and must be preserved in accordance with the Federal Records Act of 1950 and associated GSA records-retention policies.
However, PBS is not effectively managing its building studies. We found that PBS is neither comprehensively tracking nor monitoring its building studies. We also found that PBS does not have complete, accurate, and reliable data on the studies performed, or on the actions taken as a result of the studies. Because of these deficiencies, we were unable to determine if building studies result in effective building management at the best value for taxpayers or if the studies were conducted in accordance with applicable laws and regulations.
PBS is currently undergoing a major reorganization, under which it will move to a centralized management structure with fewer personnel. Under this new structure, PBS will need complete, accurate, and reliable information about all aspects of its operations, including its building studies, to effectively and efficiently allocate resources to manage its nationwide portfolio of buildings.
What We Recommend
We recommend that the PBS Commissioner:
1. Develop and implement a method to track and monitor building studies and ensure that PBS can retrieve all studies efficiently.
2. Develop and implement policies and procedures to ensure that:
a. PBS building study data is complete, accurate, and reliable;
b. PBS is not wasting tax dollars on unnecessary or duplicative building studies; and
c. Building studies are preserved in accordance with the Federal Records Act of 1950 and GSA records-retention policies.
The PBS Acting Commissioner stated that GSA agrees with the report recommendations. His written comments are included in their entirety in Appendix C.
* * *
The report is posted at: https://www.gsaig.gov/content/pbs-not-effectively-tracking-and-monitoring-building-studies
GSA IG: 'Implementation Review of Corrective Action Plan: Audit of the Calexico West Land Port of Entry Expansion and Modernization Project'
WASHINGTON, June 21 (TNSrep) -- The General Services Administration Inspector General issued the following audit report (No. A210070/P/9/R23006) on April 16, 2026 entitled "Implementation Review of Corrective Action Plan: Audit of the Calexico West Land Port of Entry Expansion and Modernization Project, Report Number A210070/P/9/R23006, March 2, 2023."
Here are excerpts:
* * *
We have completed an implementation review of the management actions taken in response to the recommendations contained in our March 2023 audit report, Audit of the Calexico West Land Port of Entry Expansion and Modernization
... Show Full Article
WASHINGTON, June 21 (TNSrep) -- The General Services Administration Inspector General issued the following audit report (No. A210070/P/9/R23006) on April 16, 2026 entitled "Implementation Review of Corrective Action Plan: Audit of the Calexico West Land Port of Entry Expansion and Modernization Project, Report Number A210070/P/9/R23006, March 2, 2023."
Here are excerpts:
* * *
We have completed an implementation review of the management actions taken in response to the recommendations contained in our March 2023 audit report, Audit of the Calexico West Land Port of Entry Expansion and ModernizationProject, Report Number A210070/P/9/R23006.
Objective
The objective of our review was to determine whether GSA's Public Buildings Service (PBS) has taken the actions as outlined in the corrective action plan for our audit report, Audit of the Calexico West Land Port of Entry Expansion and Modernization Project (see Appendix A). To accomplish our objective we:
* Reviewed the original audit report to understand the recommendations and provide context to the corrective action plan;
* Corresponded with PBS personnel; and
* Examined documentation submitted by PBS personnel for addressing the corrective action plan steps.
* * *
The report is posted at: https://www.gsaig.gov/content/implementation-review-corrective-action-plan-audit-calexico-west-land-port-entry-expansion
GSA IG: 'Implementation Review Of Corrective Action Plan: Audit of PBS's Oversight of Lease Periodic Services'
WASHINGTON, June 21 (TNSrep) -- The General Services Administration Inspector General issued the following audit report (No. A220026/P/R/R23003) on Feb. 12, 2026 entitled "Implementation Review Of Corrective Action Plan: Audit of PBS's Oversight of Lease Periodic Services, Report Number A220026/P/R/R23003, February 16, 2023."
Here are excerpts:
* * *
We have completed an implementation review of the management actions taken in response to the recommendations contained in our February 2023 audit report, Audit of PBS's Oversight of Lease Periodic Services, Report Number A220026/P/R/R23003.
Objective
The
... Show Full Article
WASHINGTON, June 21 (TNSrep) -- The General Services Administration Inspector General issued the following audit report (No. A220026/P/R/R23003) on Feb. 12, 2026 entitled "Implementation Review Of Corrective Action Plan: Audit of PBS's Oversight of Lease Periodic Services, Report Number A220026/P/R/R23003, February 16, 2023."
Here are excerpts:
* * *
We have completed an implementation review of the management actions taken in response to the recommendations contained in our February 2023 audit report, Audit of PBS's Oversight of Lease Periodic Services, Report Number A220026/P/R/R23003.
Objective
Theobjective of our review was to determine whether GSA's Public Buildings Service (PBS) has taken the actions as outlined in the corrective action plan for Audit of PBS's Oversight of Lease Periodic Services (see Appendix A). To accomplish our objective we:
* Met and corresponded with PBS management and service program personnel; - Examined documentation submitted by PBS personnel to support completion of the corrective action plan steps; and
* Performed limited testing of PBS's implementation of the guidance and procedures contained in the submitted documentation.
* * *
The report is posted at: https://www.gsaig.gov/content/implementation-review-corrective-action-plan-audit-pbss-oversight-lease-periodic-services
