TARP staffing continues to increase
But Treasury has no long-term workforce plan for the financial bailout, GAO says.
The Treasury Department has made progress in hiring staff for the program overseeing the massive financial bailout, but it remains unclear how many workers will be needed in the long term, according to congressional testimony from an official at the Government Accountability Office.
"Because TARP [Troubled Assets Relief Program] has added many new programs since it was first established in October and program activities are changing under the new administration, we recognize that Treasury may find it difficult to determine Office of Financial Stability's long-term organizational needs at this time. However, such considerations will be vital to retaining institutional knowledge in the organization," said Richard Hillman, GAO's managing director for financial markets and community investment on Wednesday before the House Oversight and Government Reform Subcommittee on Domestic Policy.
Treasury officials told GAO that since December the number of permanent staff working on TARP oversight has increased from five to 60 employees.
The department also has begun to identify the training needed for employees who oversee TARP's contracts, but GAO said Treasury voluntarily pointed out problems related to its contract oversight personnel.
"Treasury's use of time-and-materials contracts, although authorized when flexibility is needed, can increase the risk that government dollars will be wasted unless adequate mechanisms are in place to oversee contractor performance," Hillman said. "Although Treasury has improved its oversight of contractors, the department itself has identified both certification of its contracting officer technical representatives and its use of time-and-materials pricing as high-risk issues that still need attention."
According to Hillman, GAO also was increasing staff in response to the oversight challenges TARP posed by targeting hires for specific positions, re-employing GAO retirees, and seeking help from those outside the agency with expertise in financial markets and regulation.