Reports

Federal Deposit Insurance Corporation OIG

FDIC Examinations of Government-Guaranteed Loans

Inspection / Evaluation | 5/10/2023

1 - Open

Develop and implement guidance to examination staff on the credit, operational (including fraud), liquidity, and compliance risks related to Government-guaranteed loans to ensure staff adequately plans and conducts examinations to identify and address emerging risks.

10 - Open

Develop and implement a training plan to ensure examination staff are trained on the requirements and risks of Government-guaranteed loan programs.

11 - Closed

Update, develop, and distribute to FDIC examination personnel a list of FDIC examiners who have significant experience examining banks that specialize in Government-guaranteed loan programs to regional offices.

12 - Closed

Develop and implement a process to obtain improved data regarding Government-guaranteed lending activities of FDIC-supervised financial
institutions.

13 - Closed

Update the [redacted] MOU to include the sharing of loan portfolio information such as historical loan performance, status of guaranty, and loan-level risk characteristics.

14 - Closed

Establish arrangements with other Federal agencies that administer Government-guaranteed loan programs to facilitate information sharing and
proactive identification of risk.

15 - Closed

Develop and implement processes and procedures for the routine sharing, receipt, and storage of confidential information with Federal agencies that administer Government-guaranteed loan programs.

16 - Closed

Develop and implement guidance to provide instruction to FDIC bank examination staff requiring communication and information sharing with Federal agencies that administer Government-guaranteed loan programs to ensure FDIC staff and the Federal agencies are aware of any emerging risks.

17 - Closed

Determine whether other Federal agencies that administer Government-guaranteed loan programs have a list of FDIC-supervised banks with high risk factors associated with such programs and develop protocols to share information with relevant FDIC personnel, including examiners.

18 - Closed

Develop and implement guidance to ensure relevant risk information exchanged with Federal Government agencies that administer Government-guaranteed loan programs is shared internally within the FDIC on an ongoing basis with the appropriate FDIC employees.

19 - Closed

Develop and implement updated FDIC examination guidance to establish an appropriate timeframe for uploading complete supervisory business records to RADD.

2 - Open

Develop and implement guidance to examination staff to ensure the staff consistently evaluate Government-guaranteed loans in their review of loan classification, assessment of off-balance sheet risk, concentration risk, and ongoing monitoring.

3 - Closed

Update and implement the Examination Profile Script to include additional questions on financial institution participation in Government-guaranteed loan programs in order to identify and address emerging risk.

4 - Closed

Develop and implement additional items to the Safety and Soundness Request List to identify Government-guaranteed loans, the performance of those loans, and status of the guaranty.

5 - Closed

Issue and implement guidance to require that examination staff conduct a fraud risk assessment on future Government-guaranteed loan programs involving FDIC-insured and FDIC-supervised financial institutions to inform policy decisions.

6 - Closed

Ensure guidance on future Government-guaranteed loan programs includes all risks associated with such programs and has instructions to allow for consistency in supervisory activities.

7 - Closed

Issue and implement guidance for examiners clarifying the FDIC supervisory expectations for reviewing bank PPP activities, including the level of PPP loan volume triggering a heightened review, how examiners should assess the PPP activities of banks that have existing BSA/AML weaknesses, and protocols for examination staff to communicate observed weaknesses.

8 - Open

Revise and implement FDIC guidance and practices for assessing concentrations and loan classification to ensure uniform application with the other Federal bank regulators of supervisory approaches to banks

9 - Open

Coordinate with the other Federal bank regulators to ensure uniform application of supervisory approaches to banks regarding concentrations and loan classification.

Treasury Inspector General for Tax Administration

Additional Actions Are Needed to Reduce Accounts Management Function Inventories to Below Pre‑Pandemic Levels

Full Details: Oversight.gov Report Page

Audit | 5/10/2023

1 - Closed

Ensure that all sites understand and begin immediately stamping the ICT received date after correspondence screening is completed, and that individual and business documents are screened with equal importance.

10 - Open

Coordinate with the Information Technology organization to explore adding Taxpayer Relations inventories into the CII, so that all Accounts Management inventory is located in the same inventory management system.

11 - Closed

The Commissioner, Wage and Investment Division, should establish time frames for and a process to measure correspondence screening timeliness at each site.

12 - Closed

The Commissioner, Wage and Investment Division, should rescind the requirement that only the TEs and the CSRs perform correspondence
screening and encourage all sites to use mail clerks, after providing them with adequate training.

13 - Closed

The Commissioner, Wage and Investment Division, should ensure prompt completion of the ICT review to determine if additional scanners will be
purchased.

2 - Closed

Discontinue correspondence screening via telework and ensure at all sites that screening must be conducted in the same IRS facility where documents are being scanned by the ICT.

3 - Closed

Identify and address the cause of Accounts Management function employees incorrectly routing cases to other IRS functions and work with other IRS functions to update their Internal Revenue Manuals to make it clear that incorrectly routed documents should be returned to the
originating employee.

4 - Closed

We recommended that management take steps to hire as many mail clerks as possible.

5 - Closed

The Commissioner, Wage and Investment Division, should establish goals for each of the Accounts Management function’s inventory types and develop a plan for addressing those goals to ensure a timely return to pre-pandemic inventory levels.

6 - Open

The Commissioner, Wage and Investment, should prioritize funding and implementation of automated processing of Forms 1040-X to increase efficiencies and reduce taxpayer burden.

7 - Closed

The Commissioner, Wage and Investment Division, should implement temporary solutions for the processing of Forms 1040-X to reduce the backlogs, reduce taxpayer burden, and save IRS resources until an automated solution is implemented.

8 - Open

Coordinate with the Information Technology organization to prevent generating transcripts for manual refunds less than $100 and adjust the frequency that some transcripts are generated to help management get through the inventory more efficiently.

9 - Closed

Temporarily relieve employees in the Accounts Management function from having to complete paperwork for barred statutes, so they can focus on eliminating the backlogged inventory and prevent future barred statutes.

Pandemic Response Accountability Committee

FRAUD ALERT: PRAC Identifies $5.4 Billion in Potentially Fraudulent Pandemic Loans Obtained Using Over 69,000 Questionable Social Security Numbers

The PRAC’s Pandemic Analytics Center of Excellence (PACE) data scientists identified $5.4 Billion in potential identity fraud associated with over 69,000 questionable Social Security Numbers (SSNs) used on applications across disbursed loans in the Small Business Administration’s COVID-19 Economic Injury Disaster Loan Program and Paycheck Protection Program. Through collaborative verification methods with the Social Security Administration, we identified that these SSNs were used in connection with over 99,000 applications and warrant further scrutiny. The results of this Fraud Alert...

Full Details: Oversight.gov Report Page

Treasury Inspector General for Tax Administration

Backlogs of Tax Returns and Other Account Work Will Continue Into the 2023 Filing Season

Full Details: Oversight.gov Report Page

Pandemic Response Accountability Committee

Semiannual Report to Congress: April 1, 2022 - September 30, 2022

This report is a summary of the Pandemic Response Accountability Committee’s accomplishments between April 1, 2022, and September 30, 2022.

Pandemic Response Accountability Committee

Insights on Telehealth Use and Program Integrity Risks Across Selected Health Care Programs During the Pandemic

Recognizing how critical telehealth has been to the federal COVID-19 response, the PRAC Health Care Subgroup—which includes six Federal Offices of Inspectors General—worked together to provide insights on the use of telehealth and its associated program integrity risks.

Full Details: Oversight.gov Report Page

New York, Ulster County Office of the Comptroller

Audit of the Ulster County Service Center

The COVID-19 pandemic resulted in upheaval to the economy and government services. Ulster County needed to address the questions of people and organizations during the pandemic as it related to public health concerns. To address public questions and concerns, Ulster County established a COVID hotline. Despite allocating significant resources to promotion and widening the scope of the Service Center, it still receives few calls. The call volume does not seem to align with the staffing and additional resources being allocated to operate a separate unit of government. This downtime could...

New York, Ulster County Office of the Comptroller

2021 Audit on Unemployment Fraud

Our audit sought to determine if unemployment claims filed in the name of Ulster County employees were handled in accordance with current law and Ulster County policy. Our audit revealed that the Personnel Department properly identified fraudulent unemployment claims and challenged those claims. In addition, the Personnel Department staff appropriately notified the Sheriff’s Department and the Information Systems Department about the potential unemployment insurance fraud. However, it appears that some employees may not have been notified by the Personnel Department that they were the victims...

Treasury Inspector General for Tax Administration

Reporting on the Use of Coronavirus Response Funding Could Be Enhanced

Full Details: Oversight.gov Report Page

Treasury Inspector General for Tax Administration

Reporting on the Use of Coronavirus Response Funding Could Be Enhanced

Full Details: Oversight.gov Report Page

Date Range

Report Type

Report Category

Submitting Agency

State/Local Agency

State (State and Local Reports)

Fraud Type

Agency Reviewed

Related Organizations

Management Challenges

Any Recommendations

Any Open Recommendations

Reports

FDIC Examinations of Government-Guaranteed Loans

Additional Actions Are Needed to Reduce Accounts Management Function Inventories to Below Pre‑Pandemic Levels

FRAUD ALERT: PRAC Identifies $5.4 Billion in Potentially Fraudulent Pandemic Loans Obtained Using Over 69,000 Questionable Social Security Numbers

Backlogs of Tax Returns and Other Account Work Will Continue Into the 2023 Filing Season

Semiannual Report to Congress: April 1, 2022 - September 30, 2022

Insights on Telehealth Use and Program Integrity Risks Across Selected Health Care Programs During the Pandemic

Audit of the Ulster County Service Center

2021 Audit on Unemployment Fraud

Reporting on the Use of Coronavirus Response Funding Could Be Enhanced

Reporting on the Use of Coronavirus Response Funding Could Be Enhanced

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