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ADVISORY MEMORANDUM REPORT
ON SBA’S CLOSING PACKAGE INTRAGOVERNMENTAL
ACTIVITY AND BALANCES
ADVISORY MEMORANDUM REPORT NO: 6-06
DECEMBER 2, 2005 This report may contain proprietary information subject to the provisions of 18 USC 1905 and must not be released to the public or another agency without permission of the Office of the Inspector General.
U.S. SMALL BUSINESS ADMINISTRATION
OFFICE OF INSPECTOR GENERAL WASHINGTON, D.C. 20416
ADVISORY MEMORANDUM REPORT
Issue Date: December 2, 2005
Number: 6-06
To: Thomas A. Dumaresq Chief Financial Officer /S/ original signed From: Robert G. Seabrooks Assistant Inspector General for Auditing Subject: Agreed-upon Procedures Report on SBA’s Closing Package Intragovernmental
Activity and Balances We contracted with the independent certified public accounting firm of Cotton & Company LLP (Cotton) to perform procedures agreed-upon by the Department of Treasury’s Financial Management Service (FMS), the Government Accountability Office (GAO) and the Office of Management and Budget (OMB) on the Small Business Administration’s (SBA) closing package intragovernmental activity and balances. Attached is Cotton’s report on the results of these procedures. Cotton identified five items as a result of these procedures, which are explained in further detail in their report.
This report is intended solely for the information and use of FMS, GAO, and OMB and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. The Office of the Chief Financial Officer (OCFO) reviewed Cotton’s draft of the agree-upon procedures report and agreed with the results. The OCFO was pleased to further note that the results reflected a substantial improvement from the prior year’s review. Should you or your staff have any questions, please contact Jeff Brindle, Director, Information Technology and Financial Management Group at (202) 205-[FOIA Ex. 2]. Attachment
ClWurn b. C . 0 1 ~ 1 ) ' LU 635 SSaters Lane 4 h k
VA 22314
hspmtor Gmm& U.S. S d Business A d m i n i i o n
We have @md the procedures described in Attachment I, which were agreed to by the Department of ibe Treasury's Finencia1 Management Service (F'h4S), the U. S. Government Acwuntability Office
* - - . I w a d Budget ( O M ) - as - stated - - in the - F'MS - - Agency - Reporting R e q h m f o r the Financial Report of the United States Government guidance, somytoi i s tFMSiK the p r e p d o n of, and GAO in the audit of the consolidated financial statements of the U.S. Government as of and for the year ended September 30,2005. The U.S. Small Business Administration's management is respmible far the proper accounting, presentation and reporting of its consolidated financial statements .and reporting of information to FMS.
This aped-tpan procedures engagement was conducted in accordance with attestation standards d i i s b e d by the American Institute of Certified Public Accountants and the Government Auditing B&&, issued by the Comptroller General of the United Stabs. The sufficiency of these procedures is solely tbe responsibility of FMS, GAO and OMB. Consequently, we make no representations r e g d i g the sufficiency of the procedures described in Attachment I either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our associated findings are presented in Attachment I.
We were not mgaged to, and did not perForm an audit of the matters addressed herein, the objective of which would be the expression of an opinion on such information. Accordingly, we do not express w h m opisim Had we performed additional procedures, other matters might have come to our attention that would Irwe been reported to you.
This report is intended solely for the information and use of the U.S. Small Business Administration, OMB, FMS and GAO and is not intended to be, and should not be, used by those who have not agreed to the produres and taken responsibility for the sufficiency of the procedures for their purposes.
L Charles Hayward, CPA
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Att
achm
ent 1
F
isca
l 200
5 A
gree
d-U
pon
Pro
cedu
res R
epor
t for
Fed
eral
Int
rago
vern
men
tal A
ctiv
ity a
nd B
alan
ces
gmce
dm
3
Com
pare
had
ing
part
ner a
ctiv
ity/b
alan
ces f
rom
in
trag
ovem
mm
tal RSI s
ched
ules
in th
e ag
ency
's au
dite
d fm
cia
l sta
vten
aent
s to the
agen
cy's
Iktr
agov
ernm
ntal
Clo
sing
Pac
kage
vs
. Q
uart
er S
ubm
issio
n C
ompa
rativ
e Dat
a R
epor
t and
the
Intr
agov
ernm
enta
l Clo
sing
Pac
kage
Mat
eria
l Dzj
Jere
nces
/Sta
tus
of D
ispo
sitio
n C
ertiJ
icat
ion R
epor
t (Se
ctio
n I1
of t
he C
FO
Rep
rese
ntat
ions
). Fo
r ite
ms w
here
age
ncy
repo
rting
dif
fere
nces
ex
ist,
com
pare
the
expl
anat
ions
to s
uppo
rtin
g do
cum
enta
tion
and
iden
tify
any
disc
repa
ncie
s.
On
Nov
embe
r 29,
2005
, FM
S w
ill g
ener
ate
and
dist
ribu
te th
e In
trag
over
mnt
al C
ompa
rativ
e C
losi
ng P
acka
ge E
xpla
natio
n of
D
fler
ence
s R
epor
t for
intm
gove
men
tal a
ctiv
ity/b
alan
ces t
o agency In
sptx
tor G
ener
als (
IQs)
.
For t
he re
cipr
ocal
cat
egor
y/tr
dhg
part
ner a
mou
nts w
hich
wen
? rep
orte
d h
SBA
's in
trag
ove~
nmen
tal R
SI sc
hedu
les,
we
iden
tifie
d th
e ag
ency
repo
rting
di
ffue
nces
and c
ompm
ed th
em to
SB
A's
expl
anat
ions
don
g with
supp
ortin
g do
cum
enta
tion.
The
pro
vide
d ex
plan
atio
hs e
xpla
in th
e r
ep
ow
di
ffer
ence
s and
ther
e ar
e no
dis
crep
anci
es b
etw
een
the
exp
hti
on
s an
d th
e su
ppor
ting
docu
men
tatio
n, w
ith o
ne e
xcep
tion.
($2
8.3
mill
ion
whi
ch w
as
repo
rted
as tr
adin
g pa
rtne
r 99
(Tre
asur
y G
ener
al F
und)
as p
art o
f the
4&
qu
arte
r sub
mis
sion
was
recl
assi
fied
to tr
adin
g pa
rtner
20
(Dep
artm
ent o
f T
reas
ury)
in th
e cl
osin
g pa
ckag
e.)
The
expl
anat
ions
pro
vide
d by
SB
A d
o no
t exp
lain
why
this
am
ount
was
recl
assi
fied.
The
tota
l of S
BA
's di
ffer
ence
s as
iden
tifie
d by
Tre
asur
y pe
r the
In
frag
over
nmen
tal C
losi
ng P
acka
ge v
. 4th
Qua
rter
Sub
miss
ion
Com
para
tive D
ata
Rep
ort i
s $1
0.6
mill
ion.
Thi
s am
ount
was
less
than
10%
of
SB
A's
tota
l int
rago
vern
men
tal a
ctiv
ity am
ount
of $
10.8
bill
ion,
in
aggr
egat
e an
d by
rec
ipro
cal c
ateg
ory.
Con
sequ
ently
, SB
A w
as n
ot re
quire
d to
exp
lain
the
diff
eren
ces o
n th
e C
FO re
pres
enta
tion
sect
ion
LE.
SBA
's re
spon
se to
this
que
stio
n sh
ould
hav
e be
en "
No"
.
SBA
's in
trago
vern
men
tal R
SI s
ched
ules
do
not a
gree
to th
e C
losi
ng
Pack
age
Mat
eria
l Dz~
eren
cedS
taf us o
f Dis
posi
tion
Cer
tific
atio
n R
epor
t, be
caus
e th
e si
ngle
iden
tifie
d m
ater
ial d
iffer
ence
occ
urs i
n a
net p
ositi
on
Fede
ral l
ine
item
and S
BA
was
not
requ
ired
to p
rese
nt a
n R
SI s
ched
ule
for
net p
ositi
on li
ne it
ems.
The
Intr
agov
ernm
enta
l Com
para
tive
Clo
sing
Pac
hge
Exp
lana
tion
of
Di_
$ere
nces
Rep
ort i
dent
ifie
s a s
ingl
e m
ater
ial t
radi
ng p
tutn
er/~
cipr
ocal
ca
tego
ry d
iffer
ence
. This a
mou
nt traced
to S
BA
'a C
losi
ng P
acka
s M
ater
ial D
z~re
nc@
s/S
ta~
us
of D
ispo
sitio
n C
empc
atio
on R
epor
t whi
ch
wn
tab
SBA's
qla
nat
ion
for t
he d
iffm
?nce
, The
mulb
of o
ur w
odr a
re
Atta
chm
ent 1
F
isca
l 200
5 A
gree
d-U
pon
Proc
edur
es R
epor
t for
Fed
eral
Intr
agov
ernm
enta
l Act
ivity
and
Bal
ance
s
Age
ncy
IGsI
audi
tors
will
use
this
repo
rt to
:
(1)
Com
pare
the
diff
eren
ces
betw
een
the
agen
cy a
nd it
s tr
adin
g pa
rtne
rs b
y re
cipr
ocal
cat
egor
yflin
e-ite
m
from
FM
S' I
ntra
gove
rnm
enta
l Com
para
tive
Clo
sing
Pac
kage
Exp
lana
tion
of D
zfle
renc
es R
epor
t to
exp
lana
tions
from
the
agen
cy s
uppo
rtin
g do
cum
enta
tion.
For
item
s whe
re a
genc
y re
port
ing
diff
eren
ces e
xist
, com
pare
the
expl
anat
ions
to
supp
ortin
g do
cum
enta
tion
and
iden
tify
any
disc
repa
ncie
s.
(2)
Iden
tify
any
inco
nsis
tenc
ies i
n am
ount
s or
expl
anat
ions
bet
wee
n FM
S' I
ntra
gove
rnm
enta
l C
ompa
rativ
e C
losi
ng P
acka
ge E
xpla
natio
ns o
f D
zffe
renc
es re
port
s an
d th
e ag
ency
's su
ppor
ting
docu
men
tatio
n.
(3)
In th
e ev
ent o
f non
-rep
ortin
g by
trad
ing
part
ners
, as
indi
cate
d in
the
foot
er se
ctio
n of
FM
S'
Intr
agov
ernm
enta
l Com
para
tive
Clo
sing
Pac
kage
E
xpla
natio
ns o
f Dzf
lere
nces
repo
rts,
iden
tify
whe
ther
th
e di
ffer
ence
is d
ue to
a n
on-r
epor
ting
part
ner a
nd d
o no
t pro
ceed
fur
ther
with
the
revi
ew o
f the
dif
fere
nces
.
(1)
SBA
inco
rrec
tly re
cord
ed $
662.
7 m
illio
n un
der t
radi
ng p
artn
er
20 (D
epar
tmen
t of T
reas
ury)
. It
sho
uld
have
bee
n re
cord
ed a
nd
repo
rted
und
er tr
adin
g pa
rtne
r 99
(Tre
asur
y G
ener
al F
und)
. Thi
s di
scre
panc
y w
as id
entif
ied
by T
reas
ury
and
SBA
sub
sequ
ently
co
rrec
ted
it.
(2)
The
re w
ere
no i
ncon
sist
enci
es in
the
amou
nts o
r exp
lana
tions
be
twee
n FM
S' I
ntra
gove
rnm
enta
l Com
para
tive
Clo
sing
Pac
kage
E
xpla
natio
n of
Dzr
eren
ces R
epor
t and
SB
A's
supp
ortin
g do
cum
enta
tion.
(3)
The
dif
fere
nces
repo
rted
in th
e In
trag
over
nmen
tal C
ompa
rativ
e C
losi
ng P
acka
ge E
xpla
natio
ns o
f Dzr
eren
ces
Rep
ort a
re n
ot d
ue to
a
non-
repo
rtin
g tr
adin
g pa
rtne
r.