Internal Auditing Needs More Support in the National Credit Union Administration

GGD-80-31: Published: Jan 4, 1980. Publicly Released: Jan 4, 1980.

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In a recent review of the National Credit Union Administration's (NCUA) internal audit function, the Office of Internal Audit and Investigation was assessed against widely accepted professional internal auditing standards formulated for private industry and Government. The NCUA management control system includes a network of information systems and review groups designed to supply information to policymaking levels where it can be evaluated and acted on. Because of its independence, the Office of Internal Audit and Investigation is in a unique position to play a key role in the NCUA management control system. However, internal auditing needs more support in NCUA because the small size of the unit prevents it from carrying out all of its responsibilities.

Many key factors have limited the effectiveness of the Office of Internal Audit and Investigation. While NCUA top management has established an internal audit function with important management control responsibilities, other top management actions have contributed to reducing this Office's ability to meet these responsibilities. The size of the Internal Audit staff has been held to three professionals since 1975. This constraint has led to incomplete audit coverage and limits effective audits of computer systems. Staffing limitations have forced Internal Audit to rely on staff detailed from other offices to help conduct audits, which has contributed to delays in completing audits, and may compromise the Office's independence. During the last 6 years, the Director of the Office of Internal Audit has been changed four times. This may have an adverse effect on the Office's operating consistency.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of NCUA should strengthen the support for the Office of Internal Audit and Investigation by providing the unit with the additional staff resources necessary to accomplish effectively its organizational responsibilities, and consider the need for a stable leadership structure when replacing the current Office Director.

    Agency Affected:

 

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