RTC Asset Management:

Contracting Controls Need to Be Strengthened

T-GGD-90-53: Published: Sep 24, 1990. Publicly Released: Sep 24, 1990.

Additional Materials:

Contact:

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

GAO discussed the Resolution Trust Corporation's (RTC) contracting practices. GAO noted that: (1) in January 1990, GAO cited RTC as 1 of 14 federal programs that were highly vulnerable to fraud, waste, and abuse; and (2) as of June 30, 1990, RTC resolved 207 thrifts and controlled $168 billion in assets, including 40,000 properties with a book value of about $16 billion. GAO also noted that RTC reliance on contractors to carry out a major portion of its mission made it essential that RTC have: (1) an appropriate organizational structure for selecting contractors and monitoring performance; (2) sufficient numbers of competent personnel to award and monitor contracts; and (3) an internal control system to safeguard assets against waste, loss, unauthorized use, and misappropriation. In addition, GAO noted that RTC: (1) developed a highly decentralized organizational structure with delegations of authority; (2) established a task force to assess contracting staff training needs; (3) developed such essential controls as rules on ethical standards, a standard asset management and disposition agreement, and an asset management and disposition manual; and (4) needs to watch out for problems resulting from not calculating net proceeds from assets, difficulty in defining good performance measures, and insufficient management information.

Sep 29, 2017

Sep 12, 2017

Sep 7, 2017

Apr 19, 2017

Mar 29, 2017

Feb 24, 2017

Dec 29, 2016

Dec 15, 2016

Nov 15, 2016

Looking for more? Browse all our products here