Resolution Trust Corporation:

Corporate Strategy Needed to Improve Information Management

IMTEC-92-38: Published: Mar 5, 1992. Publicly Released: Mar 5, 1992.

Additional Materials:

Contact:

Hazel E. Edwards
(202) 512-6418
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO provided information on the Resolution Trust Corporation's (RTC) development of: (1) the Real Estate Owned Management System (REOMS), intended to support the management and sale of real estate assets formerly held by failed thrifts; (2) the Loans and Other Assets Inventory System (LOAIS), intended to provide RTC managers with information to manage loans and other assets formerly held by failed thrifts; (3) the Asset Manager System (AMS), intended to assist RTC in managing the activities of asset management contractors; and (4) reporting requirements for contractors assisting in the disposition of assets formerly held by failed thrifts.

GAO found that RTC: (1) has partially deployed REOMS, LOAIS, and AMS without following sound information resources management principles and without adequately defining systems requirements, resulting in the systems' inability to meet requirements; (2) has spent about $14 million and expects to spend an additional $13 million on REOMS, which is unable to provide accurate information on assets for sale or for grouping assets for sales programs, or management reports on the results of sales programs; (3) has spent about $4 million and expects to spend an additional $6 million on LOAIS, but has still not identified users' information needs, has experienced complex and time-consuming data entry problems, and has experienced a lack of cooperation from some contractors in developing LOAIS automated interfaces; (4) has spent about $2 million and expects to spend an additional $6 million on AMS, but needs to address system limitations involving the electronic transfer of accounting data from contractors' systems, inadequate internal controls for electronic funds transfers, and the inability to provide corporate-wide information on contractor performance; and (5) reporting requirements for contractors assisting in asset disposition are burdensome, may be unnecessary, and may not provide all the information RTC needs. GAO also found that RTC, to address the identified problems, has: (1) transferred many systems development responsibilities to another division to place greater emphasis on meeting users' needs; and (2) formed user groups to identify and prioritize business needs.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: RTC has strengthened its systems development practices by better defining its business needs and tightening control over corporate system development processes. As a result, RTC has redirected the development of corporatewide asset systems to better meet its information and reporting needs.

    Recommendation: To ensure that RTC asset management systems adequately support the management and sale of failed thrift assets, the Chief Executive Officer, RTC, should strengthen RTC systems development practices.

    Agency Affected: Resolution Trust Corporation

  2. Status: Closed - Implemented

    Comments: In December 1992, RTC defined a business strategy for the sales of mortgages and other loan assets, which represent over half the value of RTC remaining assets. This strategy provides that securitization shall be the primary method of sale of RTC loan assets, which will be supported by a corporatewide loan database.

    Recommendation: The Chief Executive Officer, RTC, should define business strategies for assets and contractors. This action should include milestones so that progress can be determined by Congress and RTC.

    Agency Affected: Resolution Trust Corporation

  3. Status: Closed - Implemented

    Comments: In the fall of 1992, RTC established the Office of Systems Management to formalize its user group structure. This office is working towards matching RTC information needs with RTC business strategies.

    Recommendation: The Chief Executive Officer, RTC, should match information needs to those defined business strategies. This action should include milestones so that progress can be determined by Congress and RTC.

    Agency Affected: Resolution Trust Corporation

  4. Status: Closed - Not Implemented

    Comments: RTC has taken actions to ensure that its asset systems provide timely, accurate and complete information. For example, the agency has started cleaning up the data on the corporate real estate system. RTC has also recently completed a review of its Asset Manager System and is currently developing a plan of corrective actions that should adequately address GAO concerns. GAO intends to monitor RTC's progress in these areas under another assignment--RTC's progress in improving its management information systems according to the Secretary of the Treasury's "10-point plan" (code 510944). Consequently, GAO is closing this recommendation.

    Recommendation: The Chief Executive Officer, RTC, should develop systems to provide timely, accurate, and complete information, which is needed by RTC and its contractors to manage and sell failed thrift assets. This action should include milestones so that progress can be determined by Congress and RTC.

    Agency Affected: Resolution Trust Corporation

 

Explore the full database of GAO's Open Recommendations »

Sep 16, 2016

Sep 8, 2016

Aug 18, 2016

Aug 3, 2016

Jul 15, 2016

Jul 14, 2016

Jul 13, 2016

Jun 30, 2016

Apr 19, 2016

Looking for more? Browse all our products here