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Small Business: SBA Needs to Improve Administrative Practices for Disaster Operations

RCED-92-144 Published: May 07, 1992. Publicly Released: May 21, 1992.
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Highlights

Pursuant to a congressional request, GAO examined certain administrative practices that the Small Business Administration (SBA) used in Puerto Rico and the Virgin Islands to help home and business owners obtain disaster assistance loans following Hurricane Hugo.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If SBA is to optimize its use of temporary employees assisting victims of major disasters outside the continental United States, Congress may wish to consider amending the Small Business Act to allow the Administrator, SBA, the discretion to waive, on a case-by-case, person-to-person basis, the provision that limits to 6 months the length of time per diem can be paid to a temporary employee for any one disaster. Such waiver authority could enhance the federal government's efforts to assist disaster victims by permitting SBA to keep experienced employees at a disaster location when there is an overriding need to do so. Any such legislation should require SBA to develop criteria that would be used to justify such a waiver.
Closed – Not Implemented
No legislation is pending on this issue and such legislation would not be favorably received by Congress.

Recommendations for Executive Action

Agency Affected Recommendation Status
Small Business Administration The Administrator, SBA, should direct the Comptroller, SBA, to amend the SBA Standard Operating Procedure (SOP) for travel to: (1) require that subsistence costs and any other factors used to justify waivers of the automatic reduction in per diem be fully documented; and (2) include guidance on when waivers should be reviewed to determine if and when they should be adjusted or discontinued.
Closed – Implemented
Revisions to SBA's Travel SOP incorporating the change recommended by GAO have cleared SBA's Administrative Services and will be published shortly.

Full Report

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Topics

Disaster relief aidHurricane HugoHurricanesPer diem allowancesPersonnel managementSmall business assistanceStaff utilizationTemporary duty expense allowancesTemporary employmentTemporary lodging allowancesTerritories and possessionsWaivers