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) has 184 contracts with about 100 contractors to manage about $37 billion in failed thrifts' assets; (2) plans to use AMS for automating the accounting and budgeting processes for all contractor-managed assets and for transferring funds to and from contractors; (3) has spent about $2 million and expects to spend an additional $6 million for AMS software development and enhancements; (4) must address AMS interface limitations, inadequate controls, and the lack of contractor performance monitoring capabilities if AMS is to provide the anticipated benefits; (5) has not clearly defined the specific processes that AMS is to automate; (6) did not obtain adequate input from contractors or oversight managers during AMS development; and (7) has experienced implementation delays because of inadequate project management. GAO also found that, to address AMS development and implementation problems, RTC: (1) has transferred systems development responsibilities to another division to emphasize systems development; (2) has formed a user group and tasked it with identifying, documenting, prioritizing, and communicating the business needs that AMS should address; (3) is evaluating options for modifying AMS accounting interfaces with contractors' systems; and (4) is taking steps to improve its electronic funds transfer controls.