OIG Will Audit NCUA's IT Security
The NCUA's Inspector General's office will investigate whether the NCUA has proper controls in place to safeguard agency hardware like laptops and hard drives from loss or theft. The 2015 discretionary audit plans were announced in the OIG's 2015 Annual Performance Plan, posted on the NCUA's website.
Inspector General James Hagen, pictured above, announced Dec. 29 he would investigate circumstances surrounding the loss of a credit union flash drive during an exam at the $13 million Palm Springs Federal Credit Union in Palm Springs, Calif.
Read more: NCUA Examiner Blamed for Data Breach
The OIG said it also plans to research in 2015 whether credit unions with fewer than $500 million in assets should be required to have a financial statement audit performed by a licensed independent auditor.
"Material loss reviews conducted by the NCUA OIG, as well as post mortem reviews conducted by (the) NCUA, have questioned whether the amount requiring CPA audits or agreed upon procedures should be lowered or required," the report said. "We have received feedback from regional officials that they believe this would significantly curtail credit union failures."
The OIG said it will also investigate whether the NCUA has proper controls in ps of a credit union flash drive during an exam.
Another investigation planned for 2015 would determine if the NCUA provides adequate oversight of credit union cybersecurity to assess whether credit unions are taking sufficient measures to protect the confidentiality, availability, and integrity of credit union assets and sensitive credit union data. The audit follows a pilot program coordinated by the Federal Financial Institutions Examination Council in the Summer of 2014 in which cybersecurity exams were conducted at more than 500 community financial institutions.
The OIG report also said it plans to review the effectiveness of the NCUA's interest rate risk policies and procedures and will follow up on a 2012 investigation that found the NCUA's Asset Management and Assistance Center required better analysis when determinings whether to maintain liquidated properties versus selling them in a bulk sale. Recently, AMAC obtained a large inventory of automobiles, the OIG said.