Financial Audit:

Resolution Trust Corporation's 1991 Management Letter

AFMD-92-90ML, Aug 14, 1992

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(202) 512-4800
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GAO reviewed the Resolution Trust Corporation's (RTC) consolidated and headquarters administrative accounts operations, focusing on the internal control structures and procedures. GAO found that: (1) RTC consolidated offices lack adequate internal controls; (2) consolidated offices do not report variances in the asset reconciliation process, often fail to promptly clear suspense accounts and recalculate interest due on RTC cash advances, lack controls to detect duplicate payments, often do not follow proper journal entry processing procedures, and incorrectly record account transactions; (3) consolidated offices' posting of disbursement transactions is untimely, cashiering tasks remain desegregated, and settlement jacket files lack accurate listings of jacket documents to support receiverships' beginning balances; (4) headquarters staff reconciliation accounting is often incorrect and untimely, and RTC lacks written policies requiring prompt reconciliations and supporting documentation; and (5) RTC headquarters processes corporate wire disbursements without required approval, inconsistently uses general ledger accounts, and incorrectly recorded location codes and account numbers on administrative operating expense transactions, which might result in expense recovery errors.