Summary: GAO discussed the Department of Housing and Urban Development's (HUD) fiscal year 2002 budget request. Because HUD's 2002 budget request was released only two weeks before this testimony, GAO could only offer a general discussion of the budget's policy policy implications and program trade-offs. GAO found that, in recent years, HUD has had significant unexpended balances, making it difficult for Congress to assess the Department's need for new appropriations. Without accurate and timely information on the nature, the amount, and the availability of HUD's unexpended balances, decision-makers cannot fully and fairly evaluate HUD's funding needs. HUD has begun several short-term efforts to identify, quantify, and recapture some unexpended balances and has, in fact, recaptured about $3 billion each year between fiscal years 1998 and 2000. In spite of these efforts, HUD has not yet integrated the processes needed to routinely and accurately account for unexpended balances into its ongoing financial, program, and budget management. As a result, HUD lacks the information it needs to (1) determine with certainty how much of the unexpended balances should be recaptured and (2) clearly factor these funds into its budget requests.
