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| FY 2000 | FY 2001 | FY 2002 | FY 2003 | ||||||||
| Number of OIG Audits: | 219 | 167 | 166 | 145 | |||||||
| Number of UST Field Exams: | 88 | 106 | 142 | 101 | |||||||
| Number of CPA Audits: | 0 | 0 | 14 | 0 | |||||||
| Total | 307 | 273 | 322 | 246 | |||||||
| FY 2000- FY 2001 | FY 2002- FY 2003 | ||||||||||
| Description of Finding | Total Findings | % of Reports | % of Findings | Total Findings | % of Reports | % of Findings | |||||
| Case Administration Issues | |||||||||||
| Investigation, Liquidation, and Collection of Assets: | |||||||||||
| No or inadequate tracking system for receivables | 107 | 19% | 2% | 95 | 17% | 2% | |||||
| Assets values not verified or reasonably determined | 45 | 8% | 1% | 81 | 14% | 1% | |||||
| Assets not timely investigated/pursued | 65 | 11% | 1% | 75 | 13% | 1% | |||||
| Casualty/auctioneer insurance not verified or maintained | 90 | 16% | 1% | 73 | 13% | 1% | |||||
| No/inadequate or untimely report of sale/auctioneer's report | 20 | 3% | 0% | 57 | 10% | 1% | |||||
| Assets not timely liquidated or collected | 60 | 10% | 1% | 55 | 10% | 1% | |||||
| Estate assets or records not secured or untimely secured | 46 | 8% | 1% | 51 | 9% | 1% | |||||
| Untimely/inadequate/no inventory of estate assets | 35 | 6% | 1% | 45 | 8% | 1% | |||||
| Sale/settlement without notice or court order | 66 | 11% | 1% | 38 | 7% | 1% | |||||
| Sale/settlement not in compliance with Bankruptcy Code | 23 | 4% | 0% | 21 | 4% | 0% | |||||
| Untimely turnover of auction proceeds | 8 | 1% | 0% | 18 | 3% | 0% | |||||
| Security interests not verified | 11 | 2% | 0% | 14 | 2% | 0% | |||||
| Trustee cannot account for all assets | 9 | 2% | 0% | 13 | 2% | 0% | |||||
| No escrow account for real estate sale | 0 | 0% | 0% | 2 | 0% | 0% | |||||
| Assets sold to insiders/related parties | 2 | 0% | 0% | 2 | 0% | 0% | |||||
| Abandonments and Exemptions: | |||||||||||
| Abandonments & exemptions not documented | 15 | 3% | 0% | 17 | 3% | 0% | |||||
| Formal abandonment (554a) not made when appropriate | 20 | 3% | 0% | 10 | 2% | 0% | |||||
| No or untimely objection to improper exemptions | 5 | 1% | 0% | 6 | 1% | 0% | |||||
| Non-compliance with Bankruptcy Code re: abandonments | 2 | 0% | 0% | 3 | 1% | 0% | |||||
| Case Administration and Civil Enforcement: | |||||||||||
| No or inadequate case progress review | n/a | n/a | n/a | 56 | 10% | 1% | |||||
| Delay in case administration | n/a | n/a | n/a | 29 | 5% | 1% | |||||
| Inadequate civil enforcement procedures | n/a | n/a | n/a | 5 | 1% | 0% | |||||
| Bonding: | |||||||||||
| Auctioneer bond not verified, inadequate or not obtained | 34 | 6% | 1% | 23 | 4% | 0% | |||||
| Underbonded - Individual bond | 2 | 0% | 0% | 3 | 1% | 0% | |||||
| No review for necessary increases in bond | 3 | 1% | 0% | 2 | 0% | 0% | |||||
| Separate bond not obtained when necessary | 1 | 0% | 0% | 1 | 0% | 0% | |||||
| Underbonded - Blanket bond less than 100% | 3 | 1% | 0% | 1 | 0% | 0% | |||||
| Untimely notice or bond claim for missing auction proceeds | 1 | 0% | 0% | 1 | 0% | 0% | |||||
| Operating Cases: | |||||||||||
| Operating reports not submitted as required | 8 | 1% | 0% | 9 | 2% | 0% | |||||
| No court order for operating case | 1 | 0% | 0% | 6 | 1% | 0% | |||||
| Other Case Administration Issues: | |||||||||||
| High-yield investments not considered | 85 | 15% | 1% | 122 | 21% | 2% | |||||
| Inadequate supervision of professionals | 57 | 10% | 1% | 78 | 14% | 1% | |||||
| Estate funds not invested | 51 | 9% | 1% | 35 | 6% | 1% | |||||
| Estate tax returns not prepared/filed when appropriate | 0 | 0% | 0% | 25 | 4% | 0% | |||||
| No-asset cases: assets/asset values not adequately investigated | 23 | 4% | 0% | 19 | 3% | 0% | |||||
| No-asset cases justification not documented | 5 | 1% | 0% | 8 | 1% | 0% | |||||
| Reporting Issues | |||||||||||
| Asset Tracking / Case Status: | |||||||||||
| Scheduled assets on Form 1 do not match petition/schedules | 207 | 36% | 3% | 206 | 36% | 4% | |||||
| Unscheduled assets not recorded/properly identified on Form 1 | 100 | 17% | 2% | 190 | 33% | 3% | |||||
| Form 1 errors - miscellaneous / improper cut-off date | 210 | 36% | 3% | 160 | 28% | 3% | |||||
| Asset status not accurately reflected and tracked on Form 1 | 90 | 16% | 1% | 117 | 21% | 2% | |||||
| Form 3 errors - miscellaneous / improper cut-off date | 87 | 15% | 1% | 81 | 14% | 1% | |||||
| Cases omitted on Form 3 | 48 | 8% | 1% | 52 | 9% | 1% | |||||
| Form 1 and 2 not kept up-to-date | 79 | 14% | 1% | 47 | 8% | 1% | |||||
| Transaction not recorded on Form 1 | 79 | 14% | 1% | 43 | 8% | 1% | |||||
| Form 3 does not agree with to Form 1 and/or Form 2 | 32 | 6% | 1% | 26 | 5% | 0% | |||||
| Form 1 - trustee's value (Column 6) not reasonable | 12 | 2% | 0% | 22 | 4% | 0% | |||||
| No or incorrect tax id #'s on Form 2 | 21 | 4% | 0% | 17 | 3% | 0% | |||||
| Abandonment not properly tracked on Form 1 | 0 | 0% | 0% | 15 | 3% | 0% | |||||
| Form 1 not prepared, maintained, or submitted | 10 | 2% | 0% | 7 | 1% | 0% | |||||
| Form 3 not prepared, maintained, or submitted | 3 | 1% | 0% | 2 | 0% | 0% | |||||
| No UST reports prepared/submitted | 0 | 0% | 0% | 1 | 0% | 0% | |||||
| Receipts and Disbursements: | |||||||||||
| Transactions not adequately described on Form 2 | 171 | 30% | 3% | 124 | 22% | 2% | |||||
| Receipts not properly referenced between Forms 1 & 2 | 136 | 23% | 2% | 116 | 20% | 2% | |||||
| Form 2 errors - miscellaneous / improper cut-off date | 95 | 16% | 2% | 70 | 12% | 1% | |||||
| Inaccurate Uniform Transaction Code (UTC) on Form 2 | 0 | 0% | 0% | 50 | 9% | 1% | |||||
| Transaction not recorded on Form 2 | 49 | 8% | 1% | 36 | 6% | 1% | |||||
| Inaccurate payee/payer on Form 2 | 33 | 6% | 1% | 34 | 6% | 1% | |||||
| Form 2 not prepared, maintained, or submitted | 13 | 2% | 0% | 13 | 2% | 0% | |||||
| Inaccurate amounts on Form 2 | 34 | 6% | 1% | 12 | 2% | 0% | |||||
| Check numbers not recorded on Form 2 | 11 | 2% | 0% | 2 | 0% | 0% | |||||
| No recorded running balance on Form 2 | 4 | 1% | 0% | 2 | 0% | 0% | |||||
| Internal Controls | |||||||||||
| Bank Accounts: | |||||||||||
| Bank accounts not timely/properly reconciled or reviewed | 417 | 72% | 7% | 361 | 64% | 6% | |||||
| Funds deposited to non-estate accounts (commingled) | 58 | 10% | 1% | 37 | 7% | 1% | |||||
| Void checks not accounted for | 47 | 8% | 1% | 28 | 5% | 0% | |||||
| Checks not properly prenumbered | 27 | 5% | 0% | 22 | 4% | 0% | |||||
| Bank statements/checks not properly captioned | 21 | 4% | 0% | 20 | 4% | 0% | |||||
| Missing bank statements | 40 | 7% | 1% | 19 | 3% | 0% | |||||
| Bank account not promptly opened upon receipt of funds | 12 | 2% | 0% | 14 | 2% | 0% | |||||
| Blank checks not properly secured | 17 | 3% | 0% | 12 | 2% | 0% | |||||
| Unauthorized depository or improper/unreported bank account | 8 | 1% | 0% | 5 | 1% | 0% | |||||
| Bank account on monthly report/trustee's file not on Form 2/3 | 0 | 0% | 0% | 2 | 0% | 0% | |||||
| Trustee not only signer on operating account | 0 | 0% | 0% | 1 | 0% | 0% | |||||
| Bank reconciliations operating cases not timely reconciled | 2 | 0% | 0% | 0 | 0% | 0% | |||||
| Disbursements: | |||||||||||
| Invoices/support not cancelled to prevent duplicate payment | 171 | 29% | 3% | 243 | 43% | 4% | |||||
| No stale-dated check policy / no "Void after 90 days" | 99 | 17% | 2% | 91 | 16% | 2% | |||||
| Disbursements without court order (when required) | 74 | 13% | 1% | 53 | 9% | 1% | |||||
| Missing invoices/support for expenses | 40 | 7% | 1% | 47 | 8% | 1% | |||||
| No log for disbursment checks that have control numbers | 38 | 7% | 1% | 42 | 7% | 1% | |||||
| Missing cancelled checks | 11 | 2% | 0% | 13 | 2% | 0% | |||||
| Unauthorized disbursements by wire transfer/cashier's check | 19 | 3% | 0% | 13 | 2% | 0% | |||||
| Signature stamp not controlled by trustee/used to sign checks | 14 | 2% | 0% | 11 | 2% | 0% | |||||
| Checks not signed manually by trustee | 4 | 1% | 0% | 9 | 2% | 0% | |||||
| Starter checks not destroyed after receipt of permanent checks | 12 | 2% | 0% | 8 | 1% | 0% | |||||
| Expenses not actual and necessary | 1 | 0% | 0% | 1 | 0% | 0% | |||||
| Endorsement does not match payee/checks altered | 4 | 1% | 0% | 1 | 0% | 0% | |||||
| Cannot perform proof of cash | 0 | 0% | 0% | 1 | 0% | 0% | |||||
| Evidence that checks have been signed before filled out | 2 | 0% | 0% | 0 | 0% | 0% | |||||
| Use of counter checks or money orders | 1 | 0% | 0% | 0 | 0% | 0% | |||||
| Checks payable to "cash" or "bearer" | 1 | 0% | 0% | 0 | 0% | 0% | |||||
| Receipts: | |||||||||||
| Cash receipts log not properly maintained | 466 | 80% | 8% | 468 | 82% | 8% | |||||
| Receipts log not periodically traced from log to bank statement | 204 | 35% | 3% | 201 | 35% | 3% | |||||
| Untimely deposits | 146 | 25% | 2% | 126 | 22% | 2% | |||||
| No or insufficient supporting documents for receipts | 92 | 16% | 1% | 88 | 15% | 2% | |||||
| No numbered receipts book or receipts not given | 81 | 14% | 1% | 87 | 15% | 2% | |||||
| Incoming checks not made payable to estate/trustee | 47 | 8% | 1% | 57 | 10% | 1% | |||||
| Missing deposit slips | 33 | 6% | 1% | 24 | 4% | 0% | |||||
| No or inadequate NSF tracking procedure | 36 | 6% | 1% | 22 | 4% | 0% | |||||
| Checks not restrictively endorsed immediately upon receipt | 9 | 2% | 0% | 21 | 4% | 0% | |||||
| Undeposited funds in estate file or other unsecure location | 17 | 3% | 0% | 20 | 4% | 0% | |||||
| Earnest monies not properly accounted for | 8 | 1% | 0% | 5 | 1% | 0% | |||||
| Segregation of Duties and Office Operations: | |||||||||||
| Insufficient segregation of duties | 173 | 30% | 3% | 140 | 25% | 2% | |||||
| Trustee does not directly receive unopened bank statements | 32 | 6% | 1% | 42 | 7% | 1% | |||||
| Trustee does not actively supervise employees | 14 | 2% | 0% | 6 | 1% | 0% | |||||
| Operating case bank statements not received/opened by trustee | 1 | 0% | 0% | 2 | 0% | 0% | |||||
| File Maintenance / Records Retention: | |||||||||||
| No disaster recovery plan | 112 | 19% | 2% | 139 | 24% | 2% | |||||
| Files not maintained in business-like manner | 27 | 5% | 0% | 39 | 7% | 1% | |||||
| Financial files not readily accessible/segregated in file | 33 | 6% | 1% | 26 | 5% | 0% | |||||
| Case files missing/not retained per Handbook | 13 | 2% | 0% | 17 | 3% | 0% | |||||
| Case files and accounting records not secured | 7 | 1% | 0% | 7 | 1% | 0% | |||||
| Computer Operations and Security: | |||||||||||
| Computer system not secure | 40 | 7% | 1% | 72 | 13% | 1% | |||||
| Passwords known to others/not changed annually | 136 | 23% | 2% | 70 | 12% | 1% | |||||
| Insufficient computer back-up procedures | 134 | 23% | 2% | 66 | 12% | 1% | |||||
| Transactions can be deleted/changed | 22 | 4% | 0% | 35 | 6% | 1% | |||||
| Trustee/staff cannot operate computer system | 21 | 4% | 0% | 10 | 2% | 0% | |||||
| No user's manual | 9 | 2% | 0% | 4 | 1% | 0% | |||||
| Computer software not-up to date | 0 | 0% | 0% | 3 | 1% | 0% | |||||
| Other Miscellaneous Findings (not otherwise classified) | 534 | 92% | 9% | 363 | 64% | 6% | |||||
| Total Number of Audit Findings | 6,014 | 5,758 |