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Highlights

GAO discussed the Department of Housing and Urban Development's (HUD) progress in correcting the widespread fraud, waste, abuse, and mismanagement that was uncovered in 1989. GAO noted that: (1) it was too early to determine whether reforms would be effective in correcting targeted problems; (2) such HUD problems as inadequate information and financial management systems, weak internal controls, inappropriate organizational structure, and insufficient staffing remained largely unresolved and continued to threaten HUD operations and programs; (3) although HUD implemented many program-specific corrective actions, corrective actions for the department-wide issues remained unresolved; (4) of 14 programs, HUD fully implemented reforms for 4 programs, was in the process of implementing reforms for 8 programs, and just began implementation of reforms for 2 programs; (5) due to HUD history of making but not fulfilling promises to correct its long-standing problems, Congress and the HUD Inspector General must maintain an active role in monitoring and reviewing HUD efforts to resolve these problems; and (6) HUD has nearly completed its implementation of all three ethics provisions.

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