Housing:

Delays in Implementing the Department of Housing and Urban Development's Accounting System for Its Mortgage Insurance Program

FGMSD-80-37: Published: Mar 4, 1980. Publicly Released: Dec 3, 1980.

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GAO reviewed the Department of Housing and Urban Development's (HUD) Mortgage Insurance Accounting System (MIAS), which is currently under development to support the Department's multibillion dollar mortgage insurance program. The new accounting system is essential to improve the mortgage insurance activities of HUD. The primary users of the new system's data will be the Assistant Secretary for Administration and the Assistant Secretary for Housing. The data will be used to fulfill accounting requirements, to provide more effective techniques and procedures to accomplish fiscal servicing, and to perform mortgage insurance functions promptly. The system's development has cost the Government in excess of $23 million over the $4.6 million originally estimated and more than 4 years delay in implementation.

The system's development has been plagued with problems that could have been minimized through more effective management controls, such as more frequent formal evaluations of and reports on the system's development progress and costs. Although greater emphasis is being placed on needed improvements in the system's development, action should be taken to enhance the chances of implementation of MIAS within the current milestones, as implementation within the current schedule may still provide opportunities for an increased benefit/cost ratio.

Recommendations for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of HUD should require adequate studies of future design tasks to fully establish their magnitude and complexity, and specify that any future contracts for such tasks contain a detailed description of the task to be performed.

    Agency Affected: Department of Housing and Urban Development

  2. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of HUD should instruct the project managers to consider all feasible alternatives when making any future design changes and document the basis for alternatives selected.

    Agency Affected: Department of Housing and Urban Development

  3. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of HUD should have the system's design elements integrated and tested sequentially, as appropriate, to ensure that unforeseen problems are identified and corrected as quickly as possible.

    Agency Affected: Department of Housing and Urban Development

  4. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of HUD should formalize a system for accumulating the system's development costs required for management purposes and ensure that the system contains appropriate controls to provide accurate accumulation of all relevant costs.

    Agency Affected: Department of Housing and Urban Development

 

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