Finding Text
Condition During our review of the client’s compliance with SBA reporting requirements, we noted that certain quarterly reports submitted (SBA Form 270) to the SBA did not reconcile to the corresponding monthly reports (Detailed Expenditure Worksheets). The quarterly SBA Form 270s which were submitted contain incomplete data which had to be subsequently amended. Criteria Under SBA federal grant reporting requirements, recipients must ensure complete and accurate financial and performance reporting, including reconciliation between monthly and quarterly submissions. Cause The procedures for reconciling quarterly reports to the underlying monthly data were not consistently performed. Effect As a result, financial information submitted to SBA was incomplete. The lack of reconciliations reduces the reliability of reported data and limits the ability to demonstrate compliance with SBA reporting requirements. This may increase the risk of reporting errors going undetected and could expose the client to questioned costs, compliance findings, or increased oversight from SBA or other regulatory authorities. Recommendation We recommend that SCORE strengthen its controls over the review and reconciliation of the quarterly and monthly reports so as to ensure that the monthly Detailed Expenditure Worksheets and related financial data agree to the quarterly submissions (SBA Form 270, SF-425) prior to filing. We also recommend that supervisory review and sign-off be documented for all monthly, quarterly, and performance reports, including reconciliations, ensuring reporting files contain a complete audit trail.