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The U.S. Trustee Program's Efforts to Prevent Bankruptcy Fraud and Abuse

Report No. 03-17
March 2003
Office of the Inspector General



We have audited the UST Program's management controls over bankruptcy fraud. The audit was conducted in accordance with Government Auditing Standards.

As required by the standards, we tested selected records and documentation to obtain reasonable assurance about the UST Program's compliance with laws and regulations that, if not complied with, we believe could have a material effect on the process. Compliance with laws and regulations applicable to the bankruptcy fraud process is the responsibility of the UST Program's management.

Our audit included examining, on a test basis, evidence about laws and regulations. Specifically, we conducted our tests against the relevant portions of:

Title 28 of United States Code, Section 586
  • requires USTs to notify the United States Attorney of matters, which may constitute a crime under the laws of the United States and, upon request, assist the United States Attorney in carrying out prosecutions.
Title 18 of United States Code, Section 3057
  • directs private trustees to report suspected violations of federal criminal law to the United States Attorney.
OMB Circular A-11, Part 2
  • covers the preparation and submission of budget Strategic Plans, Annual Performance Plans, and Annual Program Performance Reports.
The Government Performance and Results Act of 1993
  • directs agencies to develop multiyear strategic plans, annual performance plans, and annual performance reports.

Except for those issues cited in the Findings and Recommendations section of the report, our tests indicated that for those items reviewed, the UST Program complied with the laws and regulations referred to above. With respect to those items not tested, nothing came to our attention that caused us to believe that the UST Program's management did not comply with the laws and regulations cited above.