SUMMARY OF MANAGEMENT'S COMMENTS ON THE RECOMMENDATIONS

This table presents management's response to the recommendations in the report and the status of the recommendations as of the date of report issuance.

Rec. No.: 1.
Corrective Action (Taken or Planned): The Capital Markets Policies and Procedures Manual has been updated to include timing guidelines for transferring the custody of securities. DRR plans to have the Capital Markets Policies and Procedures Manual finalized and approved by December 31, 2011.

CMU and DRR Receivership Accounting are in the process of identifying and documenting enhancements to procedures for monitoring and collection of P&I that are identified through the Securities Payment Recapture and Reconciliation Project. Any enhancements identified through the project will be added to current manuals through the established change management process.
Expected Completion Date: Dec. 31, 2011
Monetary Benefits: $0
Resolved:a Yes or No: Yes
Open or Closedb: Open


Rec. No.: 2.
Corrective Action (Taken or Planned): The Securities Payment Recapture and Reconciliation Project is establishing procedures and controls over the receipt of expected P&I payments and the scope of the project includes all bank failures through June 30, 2011.


CMU has implemented the current procedure of providing Proforma teams and DRR Receivership Accounting with information to identify expected payments, and DRR Receivership Accounting will notify CMU of any discrepancies.
Expected Completion Date: Dec. 31, 2011
Monetary Benefits: $0
Resolved:a Yes or No: Yes
Open or Closedb: Open


a Resolved – (1) Management concurs with the recommendation, and the planned, ongoing, and completed corrective action is consistent with the recommendation. (2) Management does not concur with the recommendation, but alternative action meets the intent of the recommendation. (3) Management agrees to the OIG monetary benefits, or a different amount, or no ($0) amount. Monetary benefits are considered resolved as long as management provides an amount.

b Recommendations will be closed when (a) the Office of Enterprise Risk Management notifies the OIG that corrective actions are complete or (b) in the case of recommendations that the OIG determines to be particularly significant, when the OIG confirms that corrective actions have been completed and are responsive.