This report presents the results of our verification inspection of the U.S. Small Business Administration’s (SBA) corrective actions for the six recommendations from the Office of Inspector General (OIG) audit report SBA’s State Trade Expansion Program (Report 18-11).We initiated this verification inspection to follow up on the six recommendations and determine whether SBA’s corrective actions are still in place and effective. Accordingly, our objective was to determine the effectiveness of SBA’s corrective actions for 1) establishing performance measurements using the recipients’ reported data, 2) developing policies and implementing a process to ensure recipients report accurate and complete information, 3) clearly defining essential measurement criteria, 4) requiring State Trade Expansion Program applicants to include reimbursement and activity thresholds in their proposals, 5) enhancing the quarterly review process, and 6) increasing oversight of cooperative agreement recipients. We determined that recommendations 1, 2, and 3 were fully implemented; however, SBA management only partially addressed recommendations 4, 5, and 6. We will track management’s execution by reopening these three recommendations and will work with SBA to establish a target date for implementing corrective actions through the audit follow-up process.The Trade Facilitation and Trade Enforcement Act of 2015 (the Act) directed the U.S. Small Business Administration (SBA) to establish the State Trade Expansion Program (STEP). In FY 2023, STEP grant awards totaled $19.92 million.
Open Recommendations
Recommendation Number | Significant Recommendation | Recommended Questioned Costs | Recommended Funds for Better Use | Additional Details | |
---|---|---|---|---|---|
1 | Yes | $0 | $0 | ||
Establish performance measurements using the recipients’ reported data, such as Eligible Small Business Concerns new to the State Trade Expansion Program and include them in the annual report as a verifiable measure of program success. | |||||
2 | Yes | $0 | $0 | ||
Develop policies and implement a process to ensure recipients report accurate and complete information for participating Eligible Small Business Concerns that reconciles to the quarterly performance reports. | |||||
3 | Yes | $0 | $0 | ||
Clearly define essential measurement criteria, specifically sales, new-to-export, and market expansion, to ensure reporting consistency among the State Trade Expansion Program recipients and include these definitions in the program announcement. | |||||
4 | Yes | $0 | $0 | ||
Require State Trade Expansion Program applicants to include reimbursement and activity thresholds for participating Eligible Small Business Concerns in their proposals and review for reasonableness to ensure the program meets the objective of the Trade Facilitation and Trade Enforcement Act of 2015. | |||||
5 | Yes | $0 | $0 | ||
Enhance the quarterly review process to include strategic planning to emphasize recipients meeting performance goals. | |||||
6 | Yes | $0 | $0 | ||
Increase oversight of cooperative agreement recipients and establish and implement a risk-based approach to monitor recipients that are not meeting their quarterly milestone goals. |