Loan Monitoring System: SBA Needs to Evaluate Use of Software

摘要

The Small Business Reauthorization Act of 1997 mandated planning activities thatthe Small Business Administration (SBA) is required to complete before it begins to develop a loan monitoring system (LMS). In February 2000, we testified that SBA had made substantial progress in completing the mandated planning actions, and we made recommendations on additional steps needed for each action and for project management and control of LMS. In August 2000, we briefed your staff that SBA had made progress in addressing our LMS-specific recommendations; however, SBA had completed its work on only one recommendation. As you requested, for our current review, we evaluated SBA's actions to develop and implement software for LMS. To fulfill this objective, we collected and analyzed information and documentation on planning actions that SBA has taken for LMS. We conducted interviews with SBA officials on the processes and methodologies used for planning. We also interviewed SBA officials to identify changes in LMS planning. In addition, we analyzed contract documents and agency records concerning the development and implementation of software for LMS. We conducted our review at SBA headquarters in Washington, D.C., from April 2001 through September 2001, in accordance with generally accepted government auditing standards. In summary, we reported that SBA's actions to develop and implement LMS software were not consistent with the Small Business Reauthorization Act of 1997 and SBA's agreement with the House Committee on Small Business not to acquire hardware or software before completing the mandated planning. We concluded that these actions could result in significant project cost increases and delays. We made a specific recommendation to address these risks.