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FEDERALhearing transcript

High Impact

Oversight Hearing: Management of the SCORE Mentoring Program

Original title: SBA MANAGEMENT AND OVERSIGHT OF SCORE

January 1, 2020

small business federal oversight government auditing nonprofit management SCORE program SBA

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The Frame

What this does

The hearing addresses how $11.7 million in annual federal funding is managed for the SCORE program, following findings that poor led to improper spending on bonuses and contracts.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

SCORE volunteers

Volunteers are subject to new oversight requirements and potential changes to how their chapters manage financial records.

Small business owners

Small business owners rely on the mentoring and training services provided by the SCORE program.

SBA leadership

The agency is required to resolve the Inspector General's recommendations regarding program oversight.

What changed

Last recorded activity January 1, 2020.

What's next

Next step not available in the current record.

Summary

This hearing transcript documents a Congressional review of the Small Business Administration's (SBA) of the SCORE program, a national volunteer mentoring network. The committee examined an Inspector General audit that identified significant financial management failures, including the commingling of funds and improper use of taxpayer money for bonuses and contracts.

Key Facts

SCORE received $11.7 million in federal funding in 2019, an increase from $3.5 million in 2000.
The Inspector General audit found that SCORE commingled restricted and unrestricted funds in violation of federal accounting standards.
SCORE chapters utilized 300 separate accounting systems, including systems stored on personal volunteer laptops.
The audit identified that federal funds were used for excessive employee bonuses.
The audit identified that contracts were improperly awarded to vendors without ensuring reasonable pricing.
SCORE operates with 11,000 volunteers across 350 chapters nationwide.
In fiscal year 2018, SCORE reported mentoring and training 600,000 clients.
In 2017, SCORE reported helping to launch 54,000 businesses.

Frequently Asked Questions

What is the SCORE program?

SCORE is a national volunteer nonprofit organization that provides free or low-cost mentoring and training to small business owners.

What were the main problems found by the Inspector General?

The audit found that SCORE commingled restricted and unrestricted funds, used 300 different accounting systems, improperly awarded contracts, and used federal funds for excessive employee bonuses.

Why It Matters

The hearing addresses how $11.7 million in annual federal funding is managed for the SCORE program, following findings that poor led to improper spending on bonuses and contracts.

News Coverage

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Fragmented Accounting Systems

The discovery that 300 separate accounting systems were used across chapters highlights a significant lack of centralized financial control in a federally funded program.

SCORE Association Small Business Administration

Connected Entities

organizationSmall Business Administration“The federal agency responsible for overseeing the SCORE program.”Map →

personRoss Spano“Ranking Member of the Subcommittee.”Map →

personJudy Chu“Chairwoman of the Subcommittee on Investigations, Oversight, and Regulations.”Map →

personAllen Gutierrez“Associate Administrator, Office of Entrepreneurial Development at the SBA.”Map →

organizationSCORE Association“A national volunteer nonprofit organization providing mentoring to small busines”Map →

personHannibal 'Mike' Ware“Inspector General of the U.S. Small Business Administration.”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance75
How much this matters to a regular citizen
Controversy60
Intensity of disagreement among stakeholders
Entertainment30
Compellingness for a non-policy-wonk reader
Buzz20
Current news / social attention level

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