Summary: Pursuant to a congressional request, GAO determined whether the Federal Savings and Loan Insurance Corporation (FSLIC): (1) efficiently and effectively disposed of furniture, fixtures, and equipment (FF&E) for thrift receiverships under its Southwest Plan; and (2) appropriately took various receiverships' FF&E to furnish a regional FSLIC office.
GAO found that: (1) after deducting expenses, FSLIC received about $57,000 for the sale of FF&E appraised at about $3.3 million, suggesting that FSLIC did not take appropriate steps to minimize costs or maximize revenue; (2) FSLIC did not expeditiously plan FF&E disposal; (3) FSLIC inappropriately procured disposal services totalling $2,054,177 on a noncompetitive basis; (4) FSLIC did not fulfill its responsibility for the management and liquidation of FF&E; (5) FSLIC did not have adequate internal controls over its FF&E inventory and did not pay receiverships for FF&E taken to furnish its regional offices; and (6) the Federal Deposit Insurance Corporation (FDIC) has almost completed compensating the receiverships for FF&E that FSLIC took, but neither FDIC nor the Resolution Trust Corporation (RTC) have documented specific organizationwide guidance for disposing of FF&E.
