This report presents the results of our review of the Small Business Administration’s (SBA) Compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA).  We are issuing a separate report that summarizes the SBA’s overall compliance with IPERA.  However, due to the significance of our findings related to the agency’s contracting activities, we are issuing this advisory memorandum to enable SBA’s senior management to take immediate corrective action.  We determined that the SBA did not comply with IPERA and Improper Payments Information Act requirements.  The issues pertain to the SBA’s planning, execution, and reporting of the improper payments for its contracting activities during Fiscal Year 2011.