About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

GAO-25-108147 1 (July 23, 2025)

handle is hein.gao/uscdlatfcil0001 and id is 1 raw text is: G r ~o U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 July 23, 2025 Mr. Nathan Davis Chief Financial Officer Small Business Administration 409 3rd St. S.W., Suite 6000 Washington, D.C. 20416 U.S. Consolidated Financial Statements: Key Issues for the Small Business Administration Dear Mr. Davis: Congratulations on your appointment as Chief Financial Officer of the Small Business Administration (SBA). As SBA's Chief Financial Officer, you have an important role in helping to ensure that reliable and complete federal financial information is available. The purpose of this letter is to highlight important issues for your awareness related to financial management in the federal government. GAO is responsible for conducting the annual audit of the U.S. government's consolidated financial statements, or CFS.1 On January 16, 2025, we issued a disclaimer of opinion on these statements for fiscal years 2024 and 2023.2 The consolidated financial statements are compiled from federal entity financial statements and other federal entity information. As such, federal entities, including SBA, have a key role in supporting financial reporting at the government-wide level. SBA's strong and sustained commitment is critical to addressing the following key issues that affect the U.S. government's consolidated financial statements. SBA's disclaimers of opinion and material weaknesses: SBA was unable to obtain an opinion on its fiscal years 2020 through 2024 financial statements. The disclaimers of opinion were based on SBA's inability to provide relevant and reliable information to support a significant number of transactions and account balances related to COVID-19 relief programs, such as the Paycheck Protection Program and the COVID-19 Economic Injury Disaster Loan program, because of inadequate processes and controls. These disclaimers contributed to us being unable to express an opinion on the consolidated financial statements. It is important that SBA address the issues causing the disclaimers of opinion to support accurate reporting for the consolidated financial statements. 1The Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, is required to annually submit audited financial statements for the executive branch of the U.S. government to the President and Congress. These statements, as submitted, also include the legislative and judicial branches. 2GAO, Financial Audit: FY 2024 and FY 2023 Consolidated Financial Statements of the U.S. Government, GAO-25- 107421 (Washington, D.C.: Jan. 16, 2025). GAO-25-108147 CFS Issues for SBA Page 1

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most