Resolution Trust Corporation: Status of Management Efforts to Control
Costs (Letter Report, 10/28/93, GAO/GGD-94-19).

Although the Resolution Trust Corporation (RTC) has spent billions of
dollars to date and its expenses are increasing, the agency has not
adequately controlled costs.  A stronger budget process, greater
managerial emphasis on cost control, and more-useful expense accounting
information could have helped RTC to spot unnecessary or questionable
costs in the past.  RTC officials said that efforts to improve
operations and contain costs had been hampered by the formidable
challenge of starting up agency operations while also dealing with
hundreds of failed thrifts, uncertainties in workloads and funding, and
top-management emphasis on rapid asset sales.  Nevertheless, RTC
continues to refine key cost control processes.  In 1993, RTC improved
the budget process by developing new expense and revenue and performance
measurement reports that better link operational goals to budgeted
expenses.  RTC continues to address inaccuracies, inconsistencies, and
generalized expense accounting data that have stood in the way of agency
cost containment.  Further, a newly appointed chief financial officer
has been given responsibility to oversee all financial management
activities.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-94-19
     TITLE:  Resolution Trust Corporation: Status of Management Efforts 
             to Control Costs
      DATE:  10/28/93
   SUBJECT:  Internal controls
             Bank failures
             Insured commercial banks
             Property disposal
             Cost control
             Real estate sales
             Accounting procedures
             Financial management
             Data integrity
             Administrative costs
IDENTIFIER:  RTC Financial Management System
             RTC Standard Asset Management and Disposition Agreement
             
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