Accordingly, the department has  increased its reliance on IT. HUD’s IT Environment

Despite its growing mission, HUD’s IT environment has not effectively  supported its business operations. Progress Has Been Made in Implementing Recommendations on HUD’s IT Modernization, but More Work Remains

While HUD has been working to modernize its IT systems, we reported in  2009 that the department lacked sound management controls that are  essential to achieving successful outcomes. Strategic planning and performance management: Effective IT  strategic planning and performance management are intended to  ensure that an organization’s IT strategic goals are aligned with its  overall mission goals and outcomes and that these goals are  supported by clearly defined (1) activities aimed at accomplishing the  goals and (2) measures for determining performance in accomplishing  the activities and goals. In 2009, we found that although HUD had established an IT strategic  plan that outlined goals and performance measures, it had not  assessed its IT performance against established goals since fiscal  year 2007. By not regularly assessing and reporting progress against  its strategic IT performance measures and activities, HUD did not  know how well it was achieving its strategic goals and where it  needed to improve. In September 2011, we reported that HUD had fully implemented this  recommendation by issuing a new department-wide strategic plan  with associated goals that aligned with new IT strategic goals that the  OCIO developed. In 2009, we reported that while HUD had established a range of  policies and procedures for developing a complete investment  portfolio, it had not established policies and procedures for evaluating  the portfolio.evaluating the performance of its portfolios, HUD was limited in its  ability to control the risks and achieve the benefits associated with the  mix of legacy system and modernization investments selected. Human capital management involves  assessing IT workforce needs, inventorying existing staff’s knowledge  and skills and identifying any gaps between needs and existing  capabilities, and developing strategies and plans to fill any gaps. Enterprise architecture: EA development and use is aimed at  establishing a corporate blueprint for investing that connects strategic  plans with individual programs and system solutions. As a result, HUD’s  segment architectures did not provide a sufficient basis for guiding  and directing segment projects in a manner to ensure that both,  system enhancements and new development efforts were properly  sequenced, well integrated, and not duplicative. As of this month, the department  had not yet finalized its EA policy. HUD’s Implementation of Recommendations to Improve Expenditure Plans Enables More Oversight

Out of concern about HUD’s capacity to manage its IT modernization  efforts, Congress established limitations on the funding provided to the  department for this purpose. To address the first set of statutory conditions,  for each modernization project, HUD was required to identify in the plan  (1) functional and performance capabilities to be delivered, (2) expected  mission benefits, (3) estimated lifecycle costs, and (4) planned key  milestones. To address the second set of statutory conditions, the plan  had to demonstrate that each project (1) was supported by an adequately  staffed project office, (2) conformed to capital planning and investment  control requirements, (3) complied with the department’s enterprise  architecture, and (4) was being managed in accordance with applicable  lifecycle management policies and guidance. Our assessment found that the department’s first expenditure plan,  submitted in April 2010, did not adequately satisfy the two sets of  statutory conditions. In the  absence of this information, the plan was limited as a congressional  oversight and decision-making mechanism. As a result, we recommended  that HUD ensure that future expenditure plans satisfied each element of  both sets of statutory conditions and describe the status of HUD’s efforts  to establish and implement modernization management controls. For  example, the plan described specific and measureable mission benefits  for each of the identified IT modernization projects. In summary, HUD has made progress in addressing certain weaknesses  that we identified in its IT management capabilities. However, it is  important to note that more actions are still needed. HUD has demonstrated progress in improving the content of  its IT expenditure plans.
Why GAO Did This Study

The Department of Housing and Urban Development (HUD) performs a range of significant home ownership and community development missions that are integral to the U.S. economy. In doing so, HUD relies extensively on information technology (IT). However, HUDs IT environment has not effectively supported its business operations, and as a result, the department has been working to modernize its IT infrastructure. To provide oversight and inform decision-making, Congress required that HUD develop and submit plans describing how it intends to use its expenditures to support its modernization efforts. In addition, Congress required GAO to review these expenditure plans to determine if they meet statutory conditions.
GAO was asked to testify on HUDs progress in implementing its prior recommendations on (1) modernizing its IT systems and (2) improving its expenditure plans. In preparing this statement, GAO relied on previous work at HUD.

What GAO Found

HUD has made progress in implementing prior GAO recommendations on modernizing its IT environment; however more actions are needed. In 2009, GAO reported that HUD lacked key IT management controls; which are essential to achieving successful outcomes. Specifically,
Although the department had established an IT strategic plan that outlined goals and performance measures, it had not assessed its performance against established goals. As a result, HUD did not know how well it was achieving its goals and where it needed to improve.
While the department had established policies and procedures for developing a complete portfolio of its investments, it had not established policies and procedures for evaluating that portfolio. This meant that it was limited in its ability to control risks and achieve benefits associated with the mix of legacy systems and modernization investments it selected.
HUDs Office of the Chief Information Officer had not adequately assessed its IT workforce needs, inventoried existing staff knowledge and skills, and identified gaps between needs and existing capabilities. As a result, the department was not well positioned to acquire the skill sets it needed.
The department had not fully developed its enterprise architecture (EA)which provides a blueprint for investing that connects strategic plans with individual programs and system solutions. This meant that HUD lacked a sufficient basis for guiding and directing its modernization projects.
GAO made a number of recommendations to HUD aimed at strengthening its management capabilities, and while progress has been made in addressing them, work remains. For example, HUD issued a department-wide strategic plan with associated goals that aligned with new IT strategic goals. However, the department had not developed criteria for assessing the performance of its portfolios, finalized its plan to address its IT workforce needs, or established an approved policy for its enterprise architecture.
HUDs modernization expenditure plans, which are to describe how the agency plans to spend IT modernization funding, have improved in response to GAOs recommendations. These plans are to meet statutory conditions that include identifying, for each modernization project, capabilities to be delivered, expected benefits, estimated costs, and key milestones; and showing that each project is supported by adequate staff, conforms to capital planning and investment control requirements, complies with the departments EA, and is being managed in accordance with department lifecycle management policies. GAO found that HUDs 2010 expenditure plan contained weaknesses and thus was limited as a congressional oversight and decision-making mechanism. Accordingly, GAO recommended, among other things, that the department ensure future plans satisfied each element of the statutory conditions. In response, subsequent expenditure plans submitted in 2011 and 2012 satisfied the conditions. As a result, these more recent plans have provided key information needed for continued oversight of the modernization projects.

What GAO Recommends

GAO is not making new recommendations. As noted, GAO has previously made recommendations aimed at assisting HUD in fully implementing key IT management controls.