Audit of the DOS Disclosure Group's Processing of Public Requests for Uniform Bank Performance Reports and Call Reports

(Audit Report No. 98-081, September 22, 1998)

The Office of Inspector General (OIG) has completed an audit of the DOS Disclosure Group's processing of public requests for Uniform Bank Performance Reports and Call Reports. DOS management requested this audit in response to the OIG's solicitation of ideas for its annual audit plan. Implementation of our audit recommendations is expected to enhance the Disclosure Group's processing, collection, and tracking of public requests for UBPRs, Call Reports, and other disclosure products.

The objectives of the audit were to (1) evaluate the Disclosure Group's billing and tracking processes and (2) and determine if program enhancements are needed.

We concluded that although the Disclosure system generates invoices, it is not capable of tracking customer payments or monitoring past due invoices. A prepayment system for all public requests for disclosure products would eliminate the need for this oversight. In addition, the Disclosure system does not provide management reports that are essential to monitoring the Disclosure Group's operations. However, the group has already addressed this weakness by implementing a new software package that will generate management reports.

We also concluded that the Disclosure Group does not routinely reconcile customer payments to receivables because the process must be performed manually. Although a prepayment policy would eliminate the need for future reconciliation, the Disclosure Group needs to work with the Division of Finance (DOF) to resolve receivables currently outstanding.

Lastly, we found invoices that did not have the proper remittance address or the correct accounting code for recording the group's miscellaneous receivables.

We recommended that the Assistant Director of the DOS Information Services Branch take the following actions:

On September 4, 1998, the Assistant Director, Information Services Branch, DOS, provided a written response to the draft report. DOS management agreed with our recommendations to require prepayment on all products sold by the Disclosure Group, resolve the group's outstanding receivables through collection, adjustment, and charge- off, and ensure that the group's invoices include the proper remittance address and the correct accounting code for recording the group's miscellaneous receivables. The Corporation's response provided us with the requisite elements of a management decision for all recommendations.