Summary: 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.
