For many
years, audits and other assessments have documented chronic weaknesses
in HUD’s staffing as well as information and financial systems.
Two large programs, comprising two-thirds of the Department’s
funds, are rated high-risk by the General Accounting Office. HUD officials
have focused on these deficiencies and have demonstrated sustained progress.
Initiative
Status
Progress
Human
Capital — HUD is red in status for several reasons including
skill gaps and human capital deficiencies across the Department.
HUD does not sustain a high-performing workforce that is continually
improving in productivity. HUD’s progress, which is yellow,
includes stepped up recruitment and hiring, adding new talent
to augment the Cabinet’s oldest workforce.
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Competitive
Sourcing — HUD is red in status because it has completed
no studies of public-private competitions to determine the best
method to deliver services. Progress is yellow because HUD has
decided on the activities it plans to subject to public-private
competition.
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Financial
Performane — HUD’s red status is due to five repeat
material weaknesses on its latest audit report. Some financial
systems fail to meet federal requirements. HUD’s progress
is green because of new internal controls procedures and the successful
implementation of the first phase of the FHA commercial accounting
system.
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Expanding
E-Government —
HUD is red in status because of chronic problems implementing
IT systems. HUD’s progress is green because of improved
oversight and control of costs on investments in information technology.
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Budget/Performance
Integration — HUD is red in status because planning
and budget are separate, with not enough focus on
outcomes. HUD’s green progress rating results from using
outcomes rather than outputs in
selected cases in this year’s budgeting and its development
of a performance-based budget
format.
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HUD
Management and Performance
—
HUD is red in status until improvements reach the targarted levels.
HUD's progress is commendable. The housing provided to HUD-assisted
tenants is better today than it was a year ago; many more units
comply with HUD's physical standards. Some large long-troubled public
housing authorities are turning around. FHA has lowered risks of
its FHA loan guarantees by eliminating firms with inflated appraisals
and improving the way it manages defaulted properites.
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Program
Assessments
Program
assessments for six HUD programs are presented (in the Budget). Ratings
reange from moderately effective for housing vouchers and HOME to ineffective
for project-based rental assistance. In three programs, results are not
demonstrated. HUD has ample room to improve.