Information Technology:

HUD Can Take Additional Actions to Improve Its Governance

GAO-15-56: Published: Dec 10, 2014. Publicly Released: Dec 10, 2014.

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Valerie C. Melvin
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melvinv@gao.gov

 

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What GAO Found

The Department of Housing and Urban Development (HUD) has partially established elements of key practices for effective information technology (IT) governance, as identified by GAO's IT investment management guide. However, several shortcomings remain:

Investment boards, policies, and procedures were not fully established: HUD chartered four review boards to manage the department's IT investments; however, the executive-level board, which is to be responsible for overall definition and implementation of the investment management process, has never met. Instead, the department's Deputy Secretary makes decisions about which investments to fund. The lack of an operational executive-level board has affected HUD's other active investment boards, which are operating without criteria the executive-level board was to have established for evaluating proposed investments. In addition, HUD has not yet developed all of the policies that it has identified as needed to support its IT management framework. Specifically, the department has not set a schedule for developing policies for IT investment performance, privacy, and risk management. Office of the Chief Information Officer (CIO) officials explained that operating without an executive-level board represents the preferred investment management approach of HUD's Secretary and Deputy Secretary.

Process for selecting investments lacks key elements: HUD has developed elements of a process for selecting investments based on defined criteria; however, it has not fully defined and implemented practices for identifying, evaluating, and prioritizing proposed IT projects for funding, as recommended by GAO's IT investment management guide. CIO officials acknowledged that they have not yet fully developed a standard and well-documented process and attributed weaknesses to a variety of factors, including changes in leadership, priorities, and approaches.

Process for overseeing investments has not been fully developed: The department has not consistently compared the performance of projects to pre-defined expectations, established thresholds to trigger remedial action for underperforming investments, or reviewed projects after implementation to compare actual investment results with decision makers' expectations. These weaknesses were attributed by CIO officials to, among other things, the lack of a consistent, enterprise-wide way to collect and compare actual data with estimates.

Until effective governance practices are institutionalized, there is risk that HUD's investments in IT may not reflect department-wide goals and priorities or effectively support the department's mission.

While HUD has reported governance-related cost savings and operational efficiencies, the data to support such reports were not always accurate, consistent, or substantiated. This is due, in part, to the lack of a department-wide approach, as called for in Office of Management and Budget guidance, to identify and collect cost-savings information. Thus, it is unclear to what extent HUD has realized savings or operational efficiencies from its IT governance.

Why GAO Did This Study

HUD relies on IT to deliver services and manage programs in support of its mission of strengthening communities and ensuring access to affordable housing. However, the department has experienced shortcomings in its IT management capability and limitations in the systems supporting its mission.

A Senate report accompanying HUD's fiscal year 2012 appropriation mandated GAO to evaluate, among other things, the department's institutionalization of IT governance. In response, GAO reported on HUD's IT project management in June 2013.

GAO's objectives for this second review were to determine (1) the extent to which HUD implemented key IT governance practices, including effective cost estimation, and (2) what, if any, cost savings or operational efficiencies HUD has reported achieving as a result of its IT governance practices. To accomplish this, GAO compared HUD's approach to IT governance with best practices and the department's policies and procedures. GAO also analyzed reported cost savings and operational efficiencies, along with any available supporting documentation.

What GAO Recommends

GAO recommends that HUD ensure that its investment review boards operate as intended and complete and update associated policies; fully establish processes including key elements for selecting and overseeing investments; and fully establish a process for identifying, collecting, and reporting data about cost savings and efficiencies. HUD agreed with GAO's recommendations.

For more information, contact Valerie C. Melvin at (202) 512-6304 or melvinv@gao.gov.

Recommendations for Executive Action

  1. Status: Open

    Comments: In February 2015, HUD provided details regarding plans for the executive-level investment review board, including a list of the members. However, the department has not yet demonstrated that review board meetings occur, criteria to be used by other boards have been developed, and decisions made are distributed to appropriate stakeholders.

    Recommendation: To ensure that HUD fully implements and sustains effective IT governance practices, the Secretary of Housing and Urban Development should direct the Deputy Secretary and the department's Chief Information Officer to place a high priority and ensure that the executive-level investment review board meets as outlined in its charter, documents criteria for use by the other boards, and distributes its decisions to appropriate stakeholders.

    Agency Affected: Department of Housing and Urban Development

  2. Status: Open

    Comments: In February 2015, HUD provided details regarding its already established policies and stated that other policies in development are expected to be completed by October 2015.

    Recommendation: To ensure that HUD fully implements and sustains effective IT governance practices, the Secretary of Housing and Urban Development should direct the Deputy Secretary and the department's Chief Information Officer to place a high priority and fully establish and maintain a complete set of governance policies, establish time frames for establishing policies planned but not yet developed, and update key governance documents to reflect changes made to established practices.

    Agency Affected: Department of Housing and Urban Development

  3. Status: Open

    Comments: In February 2015, HUD provided an update stating that the department expects to begin developing a more robust IT investment selection process by October 2015.

    Recommendation: To ensure that HUD fully implements and sustains effective IT governance practices, the Secretary of Housing and Urban Development should direct the Deputy Secretary and the department's Chief Information Officer to place a high priority and fully establish an IT investment selection process that includes (1) articulating how reviews of project proposals are to be conducted; (2) planning how data (including cost estimates) are to be developed and verified and validated; (3) establishing criteria for how cost, schedule, and project risk are to be analyzed; (4) developing procedures for how proposed projects are to be compared to one another in terms of investment size (cost), project longevity (schedule), technical difficulty, project risk, and cost-benefit analysis; and (5) ensuring that final selection decisions made by senior decision makers and governance boards are supported by analysis, consider predefined quantitative measures, and are consistently documented.

    Agency Affected: Department of Housing and Urban Development

  4. Status: Open

    Comments: In February 2015, HUD provided an update stating that the department planned to use project health assessments to oversee investments, although it has not yet begun doing so. Further, the department has not yet provided evidence of having completed post-implementation reviews.

    Recommendation: To ensure that HUD fully implements and sustains effective IT governance practices, the Secretary of Housing and Urban Development should direct the Deputy Secretary and the department's Chief Information Officer to place a high priority and fully establish a well-defined process that incorporates key practices for overseeing investments, including (1) monitoring actual project performance against expected outcomes for project cost, schedule, benefit, and risk; (2) establishing and documenting cost-, schedule-, and performance-based thresholds for triggering remedial actions or elevating project review to higher-level investment boards; and (3) conducting post-implementation reviews to evaluate results of projects after they are completed.

    Agency Affected: Department of Housing and Urban Development

  5. Status: Open

    Comments: In February 2015, HUD provided an update stating that it planned to deploy a tool to manage IT investments, although it has not yet done so. Further, the department has not yet established a process for identifying and tracking data on savings and efficiencies.

    Recommendation: To establish an enterprise-wide view of cost savings and operational efficiencies generated by investments and governance processes, the Secretary of Housing and Urban Development should direct the Deputy Secretary and Chief Information Officer to place a higher priority on identifying governance-related cost savings and efficiencies and establish and institutionalize a process for identifying and tracking comprehensive, high-quality data on savings and efficiencies resulting from IT investments and the IT governance process.

    Agency Affected: Department of Housing and Urban Development

 

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