Open Recommendations

(U) Rec. 3: This recommendation is Controlled Unclassified Information

(U) Rec. 3: This recommendation is Controlled Unclassified Information

Establish Supervision’s objectives for the onboarding process for transitioning depository institutions.

Establish clear roles and responsibilities at the headquarters level for overseeing Supervision’s onboarding process.

Develop and implement an officewide policy that describes management’s expectations for onboarding depository institutions that transition to the CFPB’s supervisory oversight. The policy should articulate
a. key onboarding steps that OSE should take before and after a depository institution transitions.
b. expected time frames for completing the key steps.
c. guidance on coordinating with the prudential regulator of the onboarding institution, including discussion topics; documentation needs; and the process for managing preexisting supervisory issues, such as MRAs and enforcement actions.

Develop methods to monitor OSE’s execution of the onboarding process, including
a. a tracking mechanism to determine whether the key onboarding steps have been completed.
b. a process for obtaining feedback from the depository institutions that transitioned regarding the effectiveness of the onboarding process.
c. a forum for the regional offices to share their experiences regarding the onboarding process to drive continuous improvement.

The Chief, Taxpayer Services, and Chief, Tax Compliance Officer, should update internal guidance and develop more robust training to ensure that employees perform adequate research of tax accounts to identify outstanding tax debt prior to initiating manual refunds or credit elects.

The Chief, Taxpayer Services, and Chief, Tax Compliance Officer, should request the necessary programming changes to ensure that the duplicate return freeze and the telephone excise tax freeze code function appropriately. In addition, request programming changes to ensure that overpayments from undelivered refunds and interest offset appropriately.

The Chief, Taxpayer Services, and Chief, Tax Compliance Officer, should verify that the programming changes associated with overpayments offsetting to tax debt on Form 720, the offset overflow freeze, and to payments associated with the Notice of Federal Tax Lien or Levy, are operating correctly.

The Chief, Taxpayer Services, and Chief, Tax Compliance Officer, should analyze the 8,452 individual and 31,967 business cases that we identified and determine whether additional programming or procedural errors exist in the process of offsetting refunds and credit elects. Take appropriate corrective action to prevent erroneous refunds and credit elects in the future.

The Chief Information Officer should ensure that the requested programming changes are implemented by January 2026.

The Chief, Taxpayer Services, and Chief, Tax Compliance Officer, should remove the erroneous LLC indicator from the 76 sole proprietorship accounts.

We recommend that USAID/Uganda verify that Agency for Cooperation in Research and Development Uganda corrects the one instance of material noncompliance detailed on page 35 of the audit report.

We recommend that the Centers for Medicare & Medicaid Services instruct the SSAs to follow up with the five nursing homes (three nonprofit and two Government-owned) that may not have complied with Federal requirements to verify that they have taken corrective actions.

We recommend that the Health Resources and Services Administration require the OPTN IT system contractor to remediate the 22 vulnerabilities identified and verify that the 22 vulnerabilities identified were remediated.

We recommend that the Health Resources and Services Administration require the OPTN IT system contractor to improve network monitoring by implementing NIST SP 800-53, Revision 5, for the OPTN IT system, to include data loss prevention technology to prevent unauthorized exfiltration of information (Control SC-7(10)) and red-team exercises to simulate attempts by adversaries to compromise organizational systems (Control CA-8(2)).

We recommend that the Health Resources and Services Administration implement procedures to help ensure that the OPTN IT system contractor maintains compliance with federally required cybersecurity controls policies and standards on a continuing basis.

Castro recommends Treasury OIG follow-up with Guam's management to confirm the transactions noted as unsupported expenditures within the Direct Payments greater than or equal to $50,000, Aggregate Reporting less than $50,000, and Aggregate Payments to Individuals can be supported. If support is not provided, Treasury OIG should recoup the funds or request that Guam management provide support for replacement expenses, not previously charged, that were eligible during the CRF period of performance. Further, based on the Government of Guam's responsiveness to Treasury OIG's requests and its ability to provide to provide sufficient documentation and/or replace unsupported and ineligible transactions charged…

We recommend that USAID/Tanzania verify that Tanzania Women Lawyers Association corrects the one material weakness in internal control detailed on page 23 of the audit report.

We recommend that USAID/Tanzania verify that Tanzania Women Lawyers Association corrects the one instance of material noncompliance detailed on page 27 of the audit report.

We recommend that CGS Administrators, LLC discontinue its practices that limit the reopening of prior years' cap calculations and start reopening all prior years' cap calculations.

We recommend that CGS Administrators, LLC revise its policies and procedures so that it meets the reopening deadlines established in Federal requirements.

We recommend that CGS Administrators, LLC conduct the prior years' hospice cap calculations for the five hospices with UPIC recoupments and collect any additional overpayments.

We recommend the Vice President, Contracts and Rates Strategy, Pricing and Contracts formalize and update the cost of service study internal guidance, and develop a cadence for review and approval.

We recommend the Vice President, Contracts and Rates Strategy, Pricing and Contracts evaluate the inclusion of Valley Investment Initiative and Performance Grant credits, as well as any other local power company or customer specific costs going forward, as part of the cost of service study.