Summary: Since 1994, GAO has included HUD and its programs on its list of programs at high risk for waste, fraud, abuse, and mismanagement. HUD's problems have included weak internal controls, inadequate information and financial management systems, an ineffective organizational structure, and an insufficient mix of staff with the proper skills. HUD has made significant changes to correct these management challenges. In early 2001, GAO will assess whether HUD's reform efforts have demonstrated real and sustainable results. If HUD is to continue the progress it has made, achieve the goals it has set for itself, and realize the benefits that can be derived from a performance management framework, it must: (1) ensure that top leadership is committed to reform; (2) rigorously plan for human capital and information technology strategies; and (3) provide for greater employee involvement in reform efforts. HUD will face additional challenges, such as developing a true results orientation and becoming an integrated organization that is outwardly focused on its clients' and stakeholders' needs. Finally, the importance of congressional oversight cannot be overstated. Congress should monitor management improvement initiatives and ensure that these initiatives are implemented successfully.
