Audit of the NCUA’s Examination and Oversight Authority over Credit Union Service Organizations and Vendors

Submitting OIG:

National Credit Union Administration OIG

Report Description:

The National Credit Union Administration (NCUA) Office of Inspector General (OIG) conducted this self-initiated audit to assess the NCUA’s examination and oversight authority of credit union service organizations (CUSOs) and third party vendors. The objectives of our audit were to determine whether: 1) the NCUA complied with applicable laws, regulations, policies, and procedures for CUSO and other (non-CUSO) third-party vendor reviews; and 2) the NCUA’s vendor review process effectively helps to assess the adequacy of credit union management’s due diligence reviews, and identify and reduce the risks vendor relationships pose to credit unions. The scope of our audit covered the period of January 1, 2013, through December 31, 2019.

Short / Alternative Report Title:

Audit of the NCUA’s Examination and Oversight Authority over CUSOs and Vendors

Date Issued:

Tuesday, September 1, 2020

Agency Reviewed / Investigated:

National Credit Union Administration

Submitting OIG-Specific Report Number:

OIG-20-07

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
ncuaoig-audit-cusos-vendors-2020.pdf	1.1 MB

Additional Details Link:

https://www.ncua.gov/files/audit-reports/oig-audit-cusos-vendors-2020.pdf

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation	Additional Details
OIG-20-07	Open	Yes	Audit of the NCUA’s Examination and Oversight Authority over CUSOs and Vendors
1. We recommend NCUA management continue its efforts to work with appropriate Congressional committees regarding amending the Federal Credit Union Act to grant the NCUA the authority to subject credit union service organizations and credit union vendors to examination and enforcement authority to the same extent as if they were an insured credit union.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

OIG-20-07

Open

Yes

Audit of the NCUA’s Examination and Oversight Authority over CUSOs and Vendors

1. We recommend NCUA management continue its efforts to work with appropriate Congressional committees regarding amending the Federal Credit Union Act to grant the NCUA the authority to subject credit union service organizations and credit union vendors to examination and enforcement authority to the same extent as if they were an insured credit union.

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Audit of the NCUA’s Examination and Oversight Authority over Credit Union Service Organizations and Vendors

Related Open Recommendations