Objectives

The objectives of the audit were: (1) to determine if the USTP is providing adequate monitoring and oversight of Chapter 7 panel trustees and (2) to assess the USTP’s compliance with requirements of the BAPCPA with regard to implementation of the means test and debtor audits.

Scope and Methodology

We conducted the audit in accordance with the Government Auditing Standards and included the tests and procedures necessary to accomplish our objectives. Our testing included, but was not limited to the period between October 1, 2005, and September 30, 2007.

We performed on-site audit work between March and August 2007 at EOUST headquarters in Washington, D.C., and at regional and district offices in Los Angeles and San Francisco, California; Seattle, Washington; and Cleveland, Ohio.

To accomplish our objectives we:

• researched and reviewed applicable laws, policies, regulations, manuals, and memoranda;

• interviewed officials at EOUST and regional UST field offices;

• obtained and analyzed statistical data maintained by EOUST;

• reviewed the means testing process at four regional UST field offices;

• reviewed debtor audits resulting in material misstatements at four regional UST field offices to assess UST follow-up;

• reviewed 23 CPA audit reports and 25 UST field examinations, including all audit reports and UST field examinations with inadequate opinions during the review period at the 4 regional UST offices to assess UST follow-up; and

• examined UST regional field office case files to determine whether trustee performance reviews and trustee interim report reviews were performed and documented and to assess UST follow up.