Matters for Congressional Consideration

1. Status: Closed - Not Implemented

   Comments: On March 26, 1992, the Senate approved a bill to lift the cap on RTC funding (S. 2482). No action in the House. Since no action was taken, unexpended funds were returned to the Treasury.

   Matter: Congress should eliminate the April 1, 1992, obligations deadline placed on the $25 billion authorized in December 1991.

2. Status: Closed - Implemented

   Comments: In March 1993, the Thrift Depositor Protection Oversight Board requested $45 billion to fund RTC. This amount is estimated to cover the completion of RTC resolution responsibilities and provide initial funds for the Savings Association Insurance Fund (SAIF). In December 1993, Congress passed the RTC Completion Act which, among other things, provided funds for the completion of RTC resolution responsibilities through December 1995 when the act terminates RTC authority to operate and initial funds for SAIF.

   Matter: Congress should ask RTC to estimate its loss fund needs through the spring of 1993 and provide RTC with sufficient funds on a timely basis to carry out its responsibilities during this period.

Recommendation for Executive Action

1. Status: Closed - Implemented

   Comments: This recommendation called for three steps to improve RTC management information systems. RTC has taken two of these steps--define strategies and develop systems. However, GAO audit reports and those of the RTC Inspector General continue to show that existing information systems are not providing the basic information needed by RTC managers to effectively manage, oversee, and evaluate the effectiveness of their programs and sales initiatives. RTC has not defined an overall information architecture as a framework for its system development efforts. One of Secretary Lloyd Bentsen's RTC management reform initiatives is to improve management information systems to adequately support business needs. However, RTC efforts to implement this reform initiative, out of necessity, focus on improving the data integrity of the existing systems, some of which cannot provide the information needed by managers.

   Recommendation: RTC should define strategies, match information needs to those strategies, and then develop systems to provide complete, accurate, and reliable information to those who need it to carry out their duties to manage asset disposal programs or oversee contractors hired to carry out asset management and other functions.

   Agency Affected: Resolution Trust Corporation

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