Summary

Timely, accurate, and complete information is essential if the Resolution Trust Corporation (RTC) is to effectively manage and sell the assets of failed savings and loans. Critical to this endeavor are three key automated systems--the Real Estate Owned Management System, the Loans and Other Assets Inventory System, and the Asset Manager System--expected to cost about $45 million through 1992. This report summarizes the findings of the four reports listed above, which detail limitations and concerns with RTC's systems development efforts and contractor reporting requirements. RTC's efforts to develop automation systems continue to disappoint. Major systems are plagued by basic problems, including unclear or changing requirements, inaccurate and incomplete data, poor response times, and software that is not user friendly. Although RTC has partially deployed the three automated systems, their intended benefits--such as supporting the disposal of real estate and loans or monitoring the performance of firms under contract to manage and sell assets--are yet to be realized. These systems development problems point to a larger issue that RTC still needs to resolve: the lack of a corporate information strategy. Without guidance from the top, RTC risks operating without information vital to managing assets and overseeing contractors.

GAO found that RTC: (1) can not fully use REOMS because of system limitations that do not adequately support its information needs regarding asset management, financial management, and real estate asset sales; (2) continues to have incomplete and inconsistent real estate records because it has not ensured that REOMS has complete and accurate real estate data; and (3) lacks a strong project management structure, and has not clearly specified the lines of authority and responsibility for critical system development decisions. GAO also found that, to address REOMS problems, RTC has: (1) transferred systems development responsibilities to another division to place more emphasis on systems development and increase user involvement; (2) designated a REOMS project manager to be accountable for future system enhancements; and (3) formed user groups to provide more input about systems development.