The OIG made the following eight recommendations for AMAC management:

Establish a line of communication and, if necessary, enter into a Memorandum of Understanding with both the DOJ's FLU and the Treasury Offset Program to maximize restitution recovery opportunities.
Once a line of communication is established based on the first recommendation, follow up periodically with the DOJ and the Treasury Offset Program regarding the status of offenders. Follow-up activity should extend through the end of the statute of each restitution order currently on file.
Develop a process to reconcile restitution orders listed in the AMAC's accounting system, AFTECH, with the Clerks of the U.S. District Courts to ensure that all restitution orders and payments are accurately tracked.
Once the process is developed based on the third recommendation, develop a requirement to provide for periodic reconciliation of AFTECH to the official restitution order tracking systems maintained by the Clerks of the U.S. District Court.
Develop write-down and write-off policies and procedures for uncollectable and unenforceable restitution orders. This would include a requirement that all procedure steps are documented within the comment field in AFTECH to ensure justification for taking write-down or write-off actions.
Perform a review of every restitution case currently tracked by AMAC to determine whether the case is unenforceable or uncollectable, and eligible for write-down or write-off action.
Once the new processes are developed based on recommendations one through six, revise NCUA Instruction No. AMAC 3900.01 to reflect any function, procedures or processes conducted by any AMAC official related to internal and external monitoring and follow-up of restitution orders.
Develop desktop procedures for all AMAC divisions involved in the restitution orders process. The procedures should capture the flow of the entire restitution order process from initial receipt of the order to the closing of the loan account.

According to the report, the first steps are to be completed by June 2016 and others to extend into 2017.

Instant Insights /

NCUA’s Restitution Process Needs Improvement: OIG Report

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