So what's an "audit" like - does the UST come to the=
Posted: Fri Feb 19, 2010 1:09 pm
How do you get paid for a OUST audit if one occurs?
Robert
In a message dated 2/19/2010 12:52:41 P.M. Pacific Standard Time,
bk.lawyer@gmail.com writes:
Just to chime in and share my experiences, it was my 1 in a 1000 "turn inthe barrel," as the old joke goes. I just recently completed my audit, and
despite the stated "reduce the burdens" language of the 2007 press
release, there was still a request for a whole bunch of documents (bank account
statements, pay advices, etc). There was a very short deadline.
After compliance and delivery of the documents to AuditCo, within about 5days they had reviewed and analyzed them, with a series of questions aboutthe documents and how they may or may not be consistent with the petition.There was a request for explanations in like 10 days.
Not long after that (whole process, about 30 days), there was an email tome from AuditCo, cc'ing OUST with their findings. I was invited to replyto have my say about them. In my particular instance -- a Chapter 13 -- the
final Line 59 of B22 was off a bit (we had a bottom line of $500, thus
conceding the 13 was not a 3-yr term). AuditCo says Line 59 should have been
higher based on missing stubs we didn't insist on prior to filing from anold job the joint debtor no longer has. She started a new job the month
before filing and Schedule I was based stubs for that job, not the averageincome of a job she no longer had. Thus, while we normally do try to get all
pay advices for the six months prior to filing, we didn't push to get allher stubs from old job from an uncooperative client due to their mootness,and instead tried to nail the plan payment based on current income. I
explained this in my reply to the OUST. (Kagenveama and Lanning are quitetimely, indeed!)
We'll see what happens next.
Hale
McGoldrick
Sent: Tuesday, August 25, 2009 7:49 AM
To: cdcbaa@yahoogroups. cd
Subject: Re: [cdcbaa] So what's an "audit" like - does the UST come to thedebtor's house and look at their stuff?
Holly et al:
The audits are random. An accounting firm, in the cases we have had,
sent a demand for a whole lot of documents. This may lead to requests for
more doucments, and to a request for explainations for why things were notdisclosed, etc.
One of the things they will catch is an incorrect balance in checking
accounts. They ask for banking statements, so they see what was available on
the date of the filing. Most of our clients think of the amount in theirbank account as the balance on their ledger. This is incorrect, as checksmay not have cleared. At one NACBA meeting, some of the lawyers were stating
they were demanding the clients either get an ATM slip showing their
balance, when they came in for their final meeting. Unless you immediately
file, this will even be wrong. We may have to call our clients on the day we
file and ask them to go online for a balance to pass this part of the audit.
However, in one case my client was off a few thousand. We amended and
claimed the amount exempt and the UST did not file a motion. I don't know
what would happen if there was no exemption left.
I believe the current stat is only one case in a thousand is auditied, sothe amount of effort one should expend making sure the balance is correctis questionable. I suggest everyone make sure they do not file the day
after their client is paid, or receives a gift from "mom" by making sure
clients are cautioned to call in if anything unusual happens..
dennis
The post was migrated from Yahoo.