Major Management Challenges and Program Risks:

Department of Housing and Urban Development

OCG-99-8: Published: Jan 1, 1999. Publicly Released: Jan 1, 1999.

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Judy A. England Joseph
(202) 512-7631
contact@gao.gov

 

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As part of its Performance and Accountability Series, GAO provided information on the major management challenges and program risks facing the Department of Housing and Urban Development (HUD).

GAO noted that: (1) HUD continues to make progress in overhauling its operations to correct its management deficiencies; (2) it has improved its financial reporting to the extent that its Inspector General was able to provide qualified opinions on its financial statements for fiscal years 1996 and 1997, compared with no opinion on the reliability of its financial statements for fiscal year 1995; (3) it deployed components for improving its information and financial management systems, reorganized its resources by function, and established various consolidated or centralized entities for single-family insurance operations, the payment of rental assistance, assessments of HUD-owned or HUD-sponsored rental properties, and enforcement activities; (4) HUD refocused and began retraining its workforce; (5) a major contributor to this progress is HUD's June 1997 2020 Management Reform Plan, a set of proposals intended to correct the management deficiencies that GAO and others identified; (6) the plan calls for reducing the number of programs, reducing staffing levels, retraining the majority of the staff and separating service from compliance functions, reorganizing the 81 field offices, consolidating processes and functions within and across program areas into specialized centers, and modernizing and integrating information and financial management systems; (7) HUD has also linked its management reform efforts to the strategic and annual plans it has developed under the Government Performance and Results Act of 1993; (8) as a result, its success in achieving strategic objectives and meeting annual performance goals depends on the success of its management reforms; (9) Booz-Allen and Hamilton, Inc., reported in March 1998 that these reforms, when implemented, should: (a) present a a significant improvement in HUD's performance; (b) lower the risk of fraud, waste and abuse in its programs; and (c) position HUD to better serve America's communities; (10) while major reforms are under way, GAO's recent work indicates that internal control weaknesses and problems with information and financial management systems persist; (11) furthermore, recent reforms to address HUD's organizational and staffing problems are in the early stages of implementation, and it is too soon to tell whether or not they will resolve the major deficiencies that GAO and others have identified; and (12) consequently, GAO continues to believe, as it reported in 1995 and 1997, that these deficiencies, taken together, place the integrity and accountability of HUD's programs at high risk.

Below are the reports in this series:

High-Risk Series: An Update HR-99-1, Jan 1, 1999

Performance and Accountability Series:

Major Management Challenges and Risks: An Executive Summary OCG-99-ES, Feb 1, 1999

Major Management Challenges and Risks: A Governmentwide Perspective OCG-99-1, Jan 1, 1999

Major Management Challenges and Risks: Department of Agriculture OCG-99-2, Jan 1, 1999

Major Management Challenges and Risks: Department of Commerce OCG-99-3, Jan 1, 1999

Major Management Challenges and Risks: Department of Defense OCG-99-4, Jan 1, 1999

Major Management Challenges and Risks: Department of Education OCG-99-5, Jan 1, 1999

Major Management Challenges and Risks: Department of Energy OCG-99-6, Jan 1, 1999

Major Management Challenges and Risks: Department of Health and Human Services OCG-99-7, Jan 1, 1999

Major Management Challenges and Risks: Department of Housing and Urban Development OCG-99-8, Jan 1, 1999

Major Management Challenges and Risks: Department of the Interior OCG-99-9, Jan 1, 1999

Major Management Challenges and Risks: Department of Justice OCG-99-10, Jan 1, 1999

Major Management Challenges and Risks: Department of Labor OCG-99-11, Jan 1, 1999

Major Management Challenges and Risks: Department of State OCG-99-12, Jan 1, 1999

Major Management Challenges and Risks: Department of Transportation OCG-99-13, Jan 1, 1999

Major Management Challenges and Risks: Department of the Treasury OCG-99-14, Jan 1, 1999

Major Management Challenges and Risks: Department of Veterans Affairs OCG-99-15, Jan 1, 1999

Major Management Challenges and Risks: Agency for International Development OCG-99-16, Jan 1, 1999

Major Management Challenges and Risks: Environmental Protection Agency OCG-99-17, Jan 1, 1999

Major Management Challenges and Risks: National Aeronautics and Space Administration OCG-99-18, Jan 1, 1999

Major Management Challenges and Risks: Nuclear Regulatory Commission OCG-99-19, Jan 1, 1999

Major Management Challenges and Risks: Social Security Administration OCG-99-20, Jan 1, 1999

Major Management Challenges and Program Risks: U.S. Postal Service OCG-99-21, Jan 1, 1999

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