Management Challenges: Department of Housing and Urban Development Page: 3 of 15
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the proper implementation of this framework holds much promise for promoting, creating, and
sustaining high-performing federal organizations, this transformation does not come easily or
quickly. Old ways of doing business must first be critically reexamined and new approaches
must be developed and institutionalized. This process takes time and sustained commitment by
all levels of management.
Our statement today will focus on (1) HUD's progress in addressing the major management
challenges we have identified in the past and our plans for updating the risk status of HUD's
programs; (2) issues HUD faces in ensuring that the reforms it has implemented are sustainable
and will result in its becoming a high-performing federal agency, including our plans for
monitoring HUD's activities; and (3) the importance of congressional oversight in ensuring that
federal agencies like HUD, successfully manage for results in the 21"t century. Our statement
draws from a large body of completed as well as ongoing GAO work, including our reviews of
various HUD programs, our reviews of HUD's strategic and performance plans, and work we
have done across the federal government on management reform initiatives and performance-
based organizations. In addition, it draws from reports issued by outside sources such as HUD's
Inspector General, National Academy of Public Administration, and other consulting groups, as
well as information recently reported to us by HUD.
In summary:
* Since 1994, we have designated HUD and/or its programs as "high risk" because of four long-
standing departmentwide management challenges: weak internal controls, inadequate
information and financial management systems, an ineffective organizational structure, and
an insufficient mix of staff with the proper skills. Since then, HUD has continued to address
its management challenges, most recently under the direction of its 2020 Management
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United States. General Accounting Office. Management Challenges: Department of Housing and Urban Development, text, September 26, 2000; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc289915/m1/3/: accessed April 23, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.