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<classification authority="sudocs">GA 1.13:T-RCED/AIMD-99-126</classification>
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 <subject>Housing programs</subject>
 <subject>Internal controls</subject>
 <subject>Risk management</subject>
 <subject>Financial management systems</subject>
 <subject>Information resources management</subject>
 <subject>Reengineering (management)</subject>
 <subject>Public administration</subject>
 <identifier>HUD 2020 Management Reform Plan</identifier>
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 <title>HUD Management: Major Challenges and Program Risks</title>
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<abstract>Pursuant to a congressional request, GAO discussed its January 1999
report on the Department of Housing and Urban Development&apos;s (HUD) major
management challenges and program risks, focusing on: (1) corrective
actions that HUD has taken or initiated on its major management
challenges; (2) major management challenges that remain and limit HUD&apos;s
effectiveness in carrying out its mission; and (3) further actions that
are needed to resolve these challenges.&lt;p/&gt;GAO noted that: (1) HUD is making significant changes and has made
credible progress in overhauling its operations to correct its
management deficiencies; (2) among other things, it has improved its
financial reporting and development risk assessments for its programs,
developed and deployed components for its information and financial
management systems, consolidated and centralized many of its operations,
and reassigned and begun to retrain many of its staff; (3) a major
contributor to this progress is HUD&apos;s June 1997 2020 Management Reform
Plan, a set of proposals intended to, among other things, correct the
management deficiencies that GAO and others identified; (4) however, it
should be recognized that HUD&apos;s problems were years in the making and
will take time and much effort to correct; (5) HUD management has placed
high priority on removing HUD programs from the high-risk designation,
but it will take continued and sustained efforts before meaningful and
lasting results can be achieved; (6) while major reforms are under way,
GAO&apos;s recent work indicates that internal control weaknesses and
problems with information and financial management systems persist; (7)
recently, GAO reported that HUD is likely to continue to spend millions
of dollars, miss milestones, and still not meet its objective of
developing and fully deploying an integrated financial management system
because it has not yet finalized detailed project plans or cost and
schedule estimates for this effort; (8) furthermore, recent reforms to
address HUD&apos;s organizational and staffing problems are in the early
stages of implementation, and it is too soon to tell whether the reforms
will resolve the major deficiencies that GAO and others have identified;
(9) therefore, pending the achievement of substantial results, the
integrity and accountability of HUD&apos;s programs remain at high risk in
GAO&apos;s opinion; and (10) GAO reached this conclusion using the same
methodologies and criteria as it used for its 1995 and 1997 reports.</abstract>
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<identifier type="preferred citation">GAO/T-RCED/AIMD-99-126</identifier>
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<note>Testimony</note>
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<subject>
 <topic>Housing programs</topic>
 <topic>Internal controls</topic>
 <topic>Risk management</topic>
 <topic>Financial management systems</topic>
 <topic>Information resources management</topic>
 <topic>Reengineering (management)</topic>
 <topic>Public administration</topic>
 <topic>HUD 2020 Management Reform Plan</topic>
 <topic>GAO High Risk Program</topic>
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