The Office of Inspector General (OIG) is issuing this management advisory to bring to your attention concerns regarding how the U.S. Small Business Administration (SBA) manages its Information Technology (IT) systems. OIG has reported on significant IT investment internal control issues over the last 6 years, which the agency has also identified without taking meaningful action to resolve. These issues include:• The governance board did not meet as required to oversee IT investments,• Performance against established baselines was not reported,• Critical system capabilities were missing, and• Corrective actions were not taken for underperforming investments.These issues require immediate attention as a strong IT governance framework enables the agency to achieve mission goals and objectives while safeguarding taxpayer funds. An efficient IT framework will help the agency better deliver SBA programs and services, particularly in times of crisis.SBA management agreed with five recommendations and partially agreed with one. To address these recommendations, the agency is planning to implement corrective measures, including updating applicable policies, procedures, and evidentiary documentation.
Open Recommendations
| Recommendation Number | Significant Recommendation | Recommended Questioned Costs | Recommended Funds for Better Use | Additional Details | |
|---|---|---|---|---|---|
| 1 | Yes | $0 | $0 | ||
| Update its business case for the MySBA investment in accordance with SOP 90 44 SBA Information Technology and Capital Planning and Investment Control Standard Operating Procedures. | |||||
| 2 | Yes | $0 | $0 | ||
| Ensure the architecture review board reviews new investments to confirm compatibility with agency systems and ensure the Business Technology Investment Council approves new investments prior to purchase, as required by SOPs 90 52 1 and 90 44. | |||||
| 3 | Yes | $0 | $0 | ||
| Ensure program offices create business cases prior to approval of the investment to ensure project scope, risks, and costs are fully vetted as required by SOP 90 44. | |||||
| 4 | Yes | $0 | $0 | ||
| Update procedures to provide specific guidance to agency investment managers on how to utilize earned value principles to measure investment progress against both the current approved baseline and the original baseline for all major investments as required by SOP 90 52 1 and OMB Circular A-130. | |||||
| 5 | Yes | $0 | $0 | ||
| Establish and implement controls to ensure all investments in the control phase are rated by the Chief Information Officer monthly using baseline factors, such as contractor cost oversight and schedule performance, and apply corrective measures as necessary as required by SOP 90 44. | |||||
| 6 | Yes | $0 | $0 | ||
| Perform oversight procedures as required in OMB Circular A-11 and SOP 90 44. Specifically, ensure that post-implementation reviews, business case closeouts, TechStat sessions, operational analyses, and lessons learned are completed. | |||||
