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(1)
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May 2000:
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Legislative audit
finds SBA could increase earnings and reduce risk and fees by using
a different stock strategy; also calls for Legislature to increase
oversight of SBA investment performance.
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View PDF
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(2)
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June 2000:
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Consulting firm,
Independent Fiduciary Services, identifies problems in SBA real
estate investments. (Note: An SBA spokesman said he could not locate
a copy of the report as it was "well beyond our retention
schedule.'' See 2004 internal SBA audit on real estate and
investigation report by the American Federation of State, County and
Municipal Employees.)
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View PDF
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View PDF
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(3)
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September
2001:
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Florida Auditor
General finds policies and procedures for alternative investments
are out of date or under development more than 18 months after
creation of the unit.
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View PDF
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(4)
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December 2001:
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Accounting firm KPMG finds risks and
gaps in monitoring and controls of securities lending program. SBA
did not document how it decided which assets to loan to whom.
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View PDF
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(5)
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March 2002:
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Medallion Consulting
urges SBA to move “as soon as possible’’ to develop a systematic
risk assessment; cautions that effects of risk can include financial
loss, fraudulent financial reporting and failure to adequately
safeguard assets.
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View PDF
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(6)
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2002:
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Two critiques of SBA real estate
investments:
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• Accountant F. Marvin Doyal says
properties may not be getting enough independent scrutiny. (SBA was
unable to find a copy of the report as it is “no longer in our
retention schedule.’’ See SBA’s 2004 real estate audit.)
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View PDF
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• Advisory group questions how and who
makes real estate investment decisions.
(See SBA’s 2004 real estate audit.)
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(7)
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June 2002:
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Legislative audit
says alternative investments are “significantly underperforming.’’
Says SBA should slow down planned expansion of these investments
until it has adequate reporting and policies.
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View PDF
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(8)
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June 2002:
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Auditor General identifies weaknesses
in controls of computer systems for financial transactions.
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View PDF
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(9)
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April 2003:
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Auditor General again
finds weaknesses in computer controls used in financial
transactions.
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View PDF
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(10)
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March 2004:
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Accounting firm KPMG recommends better
procedures and oversight to help guard against risks and potential
fraud. Urges better accounting trail of trading activities.
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View PDF
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(11)
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June 2004:
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SBA internal audit
finds high spending with use of cards issued to employees for travel
and purchases of goods. Lack of adequate procedures “significantly
increases the risk of unauthorized and inappropriate purchases.’’
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View PDF
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(12)
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July 2004:
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SBA internal audit of real estate unit
reveals inadequate investment guidelines and monitoring procedures.
Again recommends more rigorous risk assessment, but SBA says it
doesn’t have funding.
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View PDF
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(13)
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October 2004:
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Legislative audit
again finds alternative investments underperforming. With retirees
counting on income from investment returns, auditors say SBA should
be more concerned about short-term investment risks.
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View PDF
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(14)
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April 2005:
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Auditor General again finds
deficiencies in computer controls needed to protect financial
activities. Inadequate controls result in increased likelihood of
error or fraud.
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View PDF
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(15)
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July 2005:
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July 2005:
PriceWaterhouseCoopers finds lapses in computer security of
SBA-managed funds belonging to Florida Prepaid College Board
program.
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View PDF
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(16)
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October 2005:
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Consulting firm R.V. Kuhns & Associates
reveals “information gap” and need for more oversight in use of
complicated financial instruments called derivatives.
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View PDF
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(17)
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October 2005:
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Auditor General calls
for reforms of SBA’s contracting procedures. Among other things,
agency did not explain lack of competitive bidding for contract
worth $506,000.
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View PDF
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(18)
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December 2005:
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Follow-up audit to KPMG evaluation
finds 16 of 40 recommendations fully implemented and seven new areas
of “potentially significant risks.’’ Recommendation to improve paper
trail of trading activities is still “in progress.’’
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View PDF
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(19)
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July 2006:
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Mirroring portions of
prior report by KPMG, SBA internal audit reveals need to increase
monitoring of financial firms that manage public investments.
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View PDF
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(20)
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November 2006:
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Legislative audit repeats concerns
about alternative investments.
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View PDF
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(21)
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February
2007:
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SBA internal audit
finds 19 of 29 prior recommendations about real estate investments
are fully implemented. Follow-up report raises new questions about
monitoring and valuation of properties.
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View PDF
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(22)
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March 2007:
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SBA internal audit finds problems with
controls and oversight of fixed-income unit. Auditors produce draft
of report in December 2005, but it is not finalized until March
2007.
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View PDF
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(23)
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March 2007:
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SBA internal audit
raises questions about how SBA calculates and monitors some
investment returns.
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View PDF
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(24)
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March 2007:
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SBA internal audit again finds problems
with SBA computer controls. Potential conflicts exist in staff
assignments — fifth time a similar flaw is identified.
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View PDF
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(25)
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June 2007:
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SBA internal
follow-up audit of securities lending strategy finds eight of 20
previous recommendations are fully implemented. New monitoring
issues emerge.
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View PDF
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(26)
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August 2007:
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Power Point presentation stresses need
to manage risks.
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View PDF
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(27)
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August 2007:
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SBA second internal
follow-up audit finds staff has reduced use of cards to pay for
goods and travel, though not by amount planned.
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View PDF
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(28)
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October 2007:
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Draft of second follow-up audit to an
earlier KPMG report is completed. It has not been made public.
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(29)
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October 2007:
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SBA internal
follow-up audit on incentive compensation plan finds four of seven
recommendations are fully implemented.
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View PDF
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(30)
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December 2007:
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Audit by Clifton Gunderson accounting
firm finds widespread problems in five investment funds. Cites lax
oversight.
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View PDF
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(31)
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January 2008:
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SBA update to audit about trading
activities finds several recommendations are still “in progress,’’
including completion of an agency risk assessment.
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View PDF
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(32)
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January 2008:
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Auditor general finds
SBA has adopted some but not all prior recommendations for improving
management of contracts.
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View PDF
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(33)
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March 2008:
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Audit done for Florida Legislature says
SBA should update risk and control safeguards for local government
investment pool. Calls for agency to increase “transparency’’ and
conduct an operational audit.
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View PDF
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(34)
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March 2008:
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Auditor general cites
“significant deficiency’’ in running of SBA’s local government
investment pool. Cites inadequate monitoring, among other problems.
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View PDF
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(35)
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April 2008:
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Auditor general finds
continued problems with computer controls of investment activities
and accounting.
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View PDF
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(36)
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April 2008:
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SBA internal audit questions SBA’s
process for tracking and valuing complex securities.
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View PDF
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(37)
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June 2008:
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Second follow-up of
SBA internal audit on incentive compensation plan finds
recommendations are mostly implemented. But there’s still an issue
with policy used to measure performance.
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View PDF
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(38)
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November 2008:
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Follow-up memo by SBA internal audit
unit again recommends tighter controls when SBA lends its securities
to financial institutions.
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View PDF
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(39)
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January 2009:
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Report by Deloitte &
Touche accounting firm again calls for beefing up oversight and risk
management. Says SBA should adopt procedures to keep it from
violating securities laws.
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View PDF
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