COMPTROLLER GENERAL'S
REPORT TO THE CONGRESS
MANAGEMENT CONTROL FUNCTIONS
OF THE SMALL BUSINESS
ADMINISTRATION--IMPROVEMENTS
Small Business Administration
There has been congressional concern over the
management of activities and programs by field
offices of the Small Business Administration.
GAO sought to evaluate certain "management
tools" or management control functions the
Small Business Administration uses to control
its operations. These tools include:
--A standards-of-conduct system requiring
employees in key positions to file a state-
ment of outside employment and financial in-
terest.
--Audit, investigative, and review groups which
assess the activities and programs of the
Small Business Administration at field of-
fices and the central office.
--A management information system which peri-
odically provides reports to management.
Many employees making or influencing decisions
on assistance do not file statements of employ-
ment and financial interest because regula-
tions emphasize an employee's grade level rather
than his duties; employee financial statements
which are filed are not adequately reviewed by
the Small Business Administration. Moreover,
despite the Small Business Administration's
significant participation with banks, the regu-
lations do not provide a specific policy on bank
stock ownership.
Improvements are needed to provide the standardsof-conduct counselors with definitive guidelines for reviewing financial statements. GAO's recommendations are found on page 16.
Tear Sheet. Upon removal, the report cover date should be noted hereon.