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<classification authority="sudocs">GA 1.13:T-RCED-97-89</classification>
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 <subject>Internal controls</subject>
 <subject>Cost control</subject>
 <subject>Agency missions</subject>
 <subject>Management information systems</subject>
 <subject>Federal agency reorganization</subject>
 <subject>Human resources utilization</subject>
 <subject>Insurance losses</subject>
 <subject>Federal aid for housing</subject>
 <subject>Community development</subject>
 <subject>Housing programs</subject>
 <identifier>GAO High Risk Program</identifier>
 <identifier>Federal Housing Administration Fund</identifier>
 <identifier>HUD Section 8 Housing Assistance Program</identifier>
 <identifier>HUD Public Housing Management Assessment Program</identifier>
 <identifier>HUD Reinvention Blueprint</identifier>
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<titleInfo>
 <title>Housing and Urban Development: HUD&apos;s Management Deficiencies, Progress on Reforms, and Issues for Its Future</title>
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<abstract>GAO discussed progress that the Department of Housing and Urban
Development (HUD) has made in addressing serious management and
budgetary problems, focusing on: (1) the long-standing management
deficiencies that hamper HUD&apos;s effectiveness, progress made in
addressing these problems, and the work remaining in the coming years;
(2) the problems in HUD&apos;s assisted and public housing programs, which
account for the largest portion of its outlays and a vast share of the
budget authority HUD expects to need in the future; and (3) the need to
achieve consensus on federal housing policy, HUD&apos;s mission, and the
resources devoted to achieving that mission.&lt;p/&gt;GAO noted that: (1) four long-standing departmentwide management
deficiencies continue to make HUD vulnerable to waste, fraud, abuse, and
mismanagement: (a) weak internal controls; (b) inadequate information
and financial management systems; (c) an ineffective organizational
structure; and (d) an insufficient mix of staff with the proper skills;
(2) while HUD has made progress in addressing these weaknesses, GAO has
determined that much remains to be done and HUD continues to warrant the
focused attention that comes with being designated by GAO as a
&quot;high-risk area&quot;; (3) HUD faces a variety of problems in its largest
assisted and public housing programs, including how to: (a) continue
providing Section 8 housing assistance to 3 million families while not
undermining funding for other important housing and community
development programs; (b) reduce excess rental subsidies to some insured
multifamily properties while minimizing insurance losses to the Federal
Housing Administration fund and ensuring that those properties meet
basic housing quality standards; and (c) help public housing authorities
deal with increasingly tight funding levels while ensuring a minimum
level of oversight and assistance from HUD for the authorities with
management problems; (4) the Congress and the administration need to
agree on the future direction of federal housing policy and put in place
the organizational and program delivery structures that are best suited
to carrying out that policy; and (5) doing so will require revisiting
fundamental issues about that policy, including whom the federal
government will serve, how much will be spent on those being served, and
how those policies will be implemented.</abstract>
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<identifier type="preferred citation">GAO/T-RCED-97-89</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-RCED-97-89; Housing and Urban Development: HUD&apos;s Management Deficiencies, Progress on Reforms, and Issues for Its Future;
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<subject>
 <topic>Internal controls</topic>
 <topic>Cost control</topic>
 <topic>Agency missions</topic>
 <topic>Management information systems</topic>
 <topic>Federal agency reorganization</topic>
 <topic>Human resources utilization</topic>
 <topic>Insurance losses</topic>
 <topic>Federal aid for housing</topic>
 <topic>Community development</topic>
 <topic>Housing programs</topic>
 <topic>GAO High Risk Program</topic>
 <topic>Federal Housing Administration Fund</topic>
 <topic>HUD Section 8 Housing Assistance Program</topic>
 <topic>HUD Public Housing Management Assessment Program</topic>
 <topic>HUD Reinvention Blueprint</topic>
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