Inaccurate IT systems waste billions at HUD

The Department of Housing and Urban Development is wasting billions of dollars because of poor procurement management and an inaccurate financial management system, according to a General Accounting Office report released last month.

In its report, which is part of a series on "Major Management Challenges and Program Risks" at federal agencies, GAO found that existing information technology systems cannot accurately track the agency's funds or the information reported by clients on which payments are based. HUD also has no reliable process to procure systems and assess their performance.

GAO acknowledged HUD's efforts to develop better management of IT investment and to fully overhaul the financial management system and the various integrated systems since the last report in 1997. But it will be several years until all the changes are made, and "[HUD] will continue to be adversely affected by inadequate systems and information until its efforts are successfully completed," the report says.