SBA Significantly Reduces Lender Reporting Issues

The lender reporting review process led to a 37% reduction in reporting issues.

Client: Small Business Administration (SBA)

Challenge: SBA identified issues in the lender reporting process that provides loan-level data which could impact its financial statements and adversely impact its audit opinion. SBA tasked FI with analyzing the issues in the lender reporting process to assess the potential magnitude of the impact on its financial statements and to help identify potential solutions.

FI Solution: FI used its in-depth knowledge of SBA’s loan portfolio data to review the issues in the lender reporting process and to determine the frequency and duration of the various errors. Using this information, FI established a methodology to calculate the monetary impact of errors in the lender reporting process on SBA’s financial statements. FI developed several SAS programs to automate the analysis of the financial statement impact and output files that summarized the lender reporting issues for auditor consumption.

FI Impact: SBA implemented mitigation strategies which reduced lender reporting process issues by 37% between March 2012 and September 2012 as a direct result of FI’s analysis of the most prevalent issues and offenders in the lender reporting process. SBA’s auditor used FI’s analysis of the lender reporting process to gain comfort that the identified issues did not materially impact SBA’s financial statements.