HUD REFINES ITS FINANCIAL SYSTEMS MODERNIZATION PLANS Strategic shift could save agency up to $44 million
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) announced today that it will modify a planned approach to its financial systems modernization effort and focus on a single core financial system.
"Our strategic shift is a sign of the tough economic times," said Doug Criscitello, HUD's Chief Financial Officer. "We have been working on the HUD Integrated Financial Management Improvement Project (HIFMIP) for several years and have determined that more focused approach to our financial systems modernization will still get us where we need to be while ensuring that we are not overspending."
The Office of Management and Budget (OMB) has led an effort to improve financial systems throughout the Federal government. Following a series of discussions with OMB and the newly created Financial Systems Advisory Board (FSAB), HUD realized its critical business needs could be met with a core financial system while it reevaluates the need to integrate additional systems. Using this approach may result in a savings of up to $44 million
HUD's original plan proposed implementing three separate upgrades to its financial systems beginning with its core system used for most of the Department, to be followed in coming years by an integration of financial systems and information from HUD organizational components Ginnie Mae and the Federal Housing Administration (FHA).
Once the modernization of the core system gets underway this year, HUD will begin studying the efficacy of augmenting that system with Ginnie Mae and FHA systems. Consistent with the Administration's financial system modernization plans, HUD will consider three guiding principles when moving HIFMIP forward: (1) split projects into smaller, simpler segments with clear deliverables; (2) focus on the most critical business needs first; and (3) ensure ongoing, transparent project oversight.
"As a result of the Administration's emphasis on smart financial systems modernization, we have decided to revisit our systems risk and mitigation strategies along with governance structure to ensure appropriate leadership is in place to support the project and strategies for potential contract option periods," explained Criscitello. "This plan is entirely consistent with the Department's goal to transform the way HUD does business. We are focused on bureaucracy busting to create flexible, modern systems that promote responsiveness, openness, and transparency."
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov