HUD Reforms

Progress Made Since the HUD Scandals but Much Work Remains Gao ID: RCED-92-46 January 31, 1992

The underlying causes of the scandal uncovered in 1989 at the Department of Housing and Urban Development (HUD) involve long-standing and systemic deficiencies that remain largely unresolved, leaving the agency vulnerable to waste, fraud, abuse, and mismanagement. GAO notes three major departmentwide deficiencies--inadequate information and financial management systems, including computer systems; weak internal controls; and insufficient staffing. Until these deficiencies are corrected, there is no guarantee that abuses similar to those revealed two years ago will not recur. GAO concludes that only continued support and oversight can assure the public that HUD's resources are being used to effectively serve the intended beneficiaries.

GAO found that: (1) the underlying causes of the HUD problems involve long-standing departmentwide deficiencies which remain largely unresolved; (2) the departmentwide deficiencies leave HUD open to fraud, waste, abuse and mismanagement; (3) HUD is in various stages of implementing program-specific corrective actions, but is only in the initial stages of resolving underlying deficiencies; and (4) until HUD implements corrective actions for departmentwide deficiencies, individual program deficiencies may continue.



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