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FGMSD-80-37 1 (1980-03-04)

handle is hein.gao/gaobabbhs0001 and id is 1 raw text is:    RELEASED
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              COMPTROLLER GENERAL OP THE UNITD S'rATES
                      WASHINUTON. D.C. W


B-197882                                 March 4, 1980


The Honorable Edward P. Boland
Chairman, Subcommittee on HUD--
  Independent Agencies         1-1 c
Committee on Appropriations
House of Representatives                           113941

Dear Mr. Chairman:

     Subject: [Delays in Implementing the Department of
               Housing and Urban Development's Accounting
               System for its Mortgage Insurance
               Program ,FGMSD-80-37J

     On October 11, 1979, you asked the General Accounting
Office to review the Department of Housing and Urban Devel-
opment's Mortgage Insurance Accounting System (HUDMIAS) I/
currently under development to support the Department's mul-
tibillion dollar mortgage insurance program. This letter
conveys the results of our review which was structured toward
obtaining information on

     --reasons for slippages in the system's implementation,

     --possible declining benefit/cost ratio resulting from
       implementation delays, and

     --management efforts to ensure the system's implementa-
       tion as scheduled.

     In summary, the new accounting system is essential to
improve HUD's mortgage insurance activities. The system's
development has been plagued with management problems that
have contributed to increased development costs in excess of
$23 million over the $4.6 million originally estimated and
more than 4 years delay in implementation. Nonetheless,
implementation within the current schedule may still provide
opportunities for a benefit/cost ratio higher than previously
reported. The Department has installed controls to ensure



I/Formerly referred to by BUD and GAO as HUDMAP.

                                                  (905016)
                        '5 ),..,.. ......

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