Audit of Small Business Innovation Research Program Regulations and Operating Procedures

We found that the Department needs to improve its implementation of the minimum requirements related to identifying and preventing fraud, waste, and abuse in the SBIR program. Although the Department is not required to establish its own overall operating procedures and regulations for the SBIR program, it is required to implement the minimum requirements related to fraud, waste, and abuse established in the SBIR Program Policy Directive. We found that the Department did not adequately implement 7 of the 10 minimum requirements.