Need for Improvement in Small Business Administration's Financial Management

The Small Business Administration (SBA) needs to provide more accurate and timely information on their loan programs to management, Congress, and the public. Delinquent loans from the agency's portfolio are listed as current, or refinanced, making it difficult to discern the exact financial state of the program. Contrary to the accounting principles prescribed for federal agencies, interest was accrued on delinquent loans without making any provisions for the loss of interest should the loans be uncollectable. Because SBA did not provide for costs to be incurred when its guarantees were to be honored, the true status of the lease and Surety Bond Guarantee Program was not clear.