SUMMARY OF MANAGEMENT'S COMMENTS ON THE RECOMMENDATIONS

Rec. No.: 3.
Corrective Action (Taken or Planned): In the second quarter of 2011, DRR implemented the Securities Payment and Recapture Reconciliation Project, which is determining distributions due FDIC for collection related to all bank failures through June 30, 2011. The Project is anticipated to be completed by December 31, 2011. Additionally, on June 17, 2001, DRR collected $9.8 million of distributions identified by our audit that were owed but had not yet been collected by the FDIC in its receivership capacity.
Expected Completion Date: Dec. 31, 2011
Monetary Benefits: $9.8 million
Resolved:a Yes or No: Yes
Open or Closedb: Open


Rec. No.: 4.
Corrective Action (Taken or Planned): A guideline has been implemented for CMU to request the DOF's Treasury Management Branch to schedule the transfer of unencumbered securities within 30 days of an institution's failure. Treasury Management will transfer the unencumbered securities within 10-12 days for smaller portfolios and 15-20 days for larger portfolios after receipt of the request and supporting documentation from CMU after CMU has responded to all questions that arise upon review of the documentation.
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.