In its Semiannual Report to Congress for the six month period ending March 31, 2013, the Federal Reserve Board’s Office of the Inspector General (OIG) indicates that, during the next semiannual reporting period (which ends October 31, 2013), the OIG expects to complete its evaluation of the CFPB’s practice of having enforcement attorneys present during examinations and issue its report. The OIG’s plans to conduct “an evaluation of the CFPB’s integration of enforcement attorneys into its examinations of banking and nonbanking institutions’ compliance with applicable consumer protection laws and regulations” had been included in its work plan updated as of February 22, 2013.
The semiannual report indicates that during the next semiannual reporting period, the OIG also plans to complete evaluations of and issue reports on the CFPB’s hiring process and the CFPB’s compliance with the Small Business Regulatory Enforcement Fairness Act (SBREFA). Among other requirements, SBREFA requires the CFPB to convene a small business panel before issuing regulations that the CFPB director expects to have a significant impact on a substantial number of small business entities. According to the report, the OIG expects to issue a report on the results of its evaluation of the CFPB’s supervision program for large banks and non-banks by the end of 2013.
The report includes summaries of the OIG’s 2013 report on its security control review of the CFPB’s Consumer Response System (CRS) and the OIG’s 2012 report on its annual audit of the CFPB’s information security program. Those reports found that the CFPB needed to strengthen the security controls for the CRS and also strengthen its information security program.
The semiannual report also discusses a March 2013 OIG report on the OIG’s evaluation of the CFPB’s contract solicitation and selection process. The OIG found that the CFPB had expedited some contracts based on urgent requests from program officials. Because the OIG was unable to determine why the CFPB had expedited those contracts, the OIG comments that “opportunities exist to strengthen contract file documentation when the CFPB expedites the procurement process in response to urgent requests.” It also comments that “opportunities exist” to strengthen the CFPB’s internal controls related to compliance with the Federal Acquisition Regulation in the area of contract solicitation and selection.