DATE:	March 15, 2005
MEMORANDUM TO:	Stephen M. Beard
	Deputy Assistant Inspector General for Audits
FROM:	Mitchell L. Glassman, Director
	Division of Resolutions and Receiverships
SUBJECT:	Response to Draft Report Entitled
	Receivership Dividend Payments
	(Assignment Number 2004-044)

Pursuant to above subject matter, this memorandum will serve to respond to the issues and recommendation outlined in the draft OIG Audit Report dated February 18, 2005.

OIG Audit Recommendation:   The draft audit report recommended that the Director, DRR, take the following action:

1. Assess the feasibility of making electronic payments to recipients of receivership dividends.
2. Revise the standard interview questionnaire used by DRR Claims Unit employees during the receivership closing process to request recipient bank routing information for future electronic receivership dividend payments.

Response:   DRR agrees to consider the recommendations above, and will do so by December 31, 2005. DRR is a strong advocate of E-Commerce and has a history of leveraging technology. DRR is an integral member of the New Financial Environment (NFE) implementation team. The NFE solution, PeopleSoft, does contain an E-commerce module. Dividends along with all receivership payments will be considered for electronic funds transfer (EFT) post NFE implementation. If EFT proves to be cost effective, DRR Claims will revise the standard interview questionnaire to include the recipient’s bank routing information should they prefer dividend payments via EFT.