HUD Reforms:

Progress Made Since the HUD Scandals but Much Work Remains

RCED-92-46, Jan 31, 1992

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Pursuant to a congressional request, GAO reviewed the Department of Housing and Urban Development's (HUD) actions to address widespread fraud, waste, abuse and mismanagement, focusing on progress HUD had made as of December 1991 in correcting four departmentwide deficiencies in management systems, internal controls, organizational structure, and staffing problems in fourteen individual programs providing mortgage insurance, assisted housing, and community development services.

GAO found that: (1) the underlying causes of the HUD problems involve long-standing departmentwide deficiencies which remain largely unresolved; (2) the departmentwide deficiencies leave HUD open to fraud, waste, abuse and mismanagement; (3) HUD is in various stages of implementing program-specific corrective actions, but is only in the initial stages of resolving underlying deficiencies; and (4) until HUD implements corrective actions for departmentwide deficiencies, individual program deficiencies may continue.