We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Moving to Work Demonstration program based on the HUD Office of Inspector General’s (OIG) initiative to focus HUD management’s attention on problem areas on which we and others have reported over the years.  Our objective was to determine whether HUD had implemented adequate program controls to effectively monitor participant agencies’ performance and ensure that they met statutory program goals and requirements.
 
We found that HUD had implemented program monitoring procedures; however, its program oversight was inadequate because it had not (1) implemented programwide performance indicators, (2) evaluated agencies’ programs according to its policy, (3) evaluated agencies’ compliance with key statutory requirements, (4) verified agencies’ self-reported performance data, and (5) performed required annual program risk assessments.  As a result, HUD was unable to demonstrate program results.  Also, HUD had limited ability to assess agencies’ compliance with statutory program goals and lacked assurance that agencies met key statutory requirements.

We recommended that HUD establish and implement policies to improve its administration of the program and ensure that agencies meet statutory goals and requirements before further program expansion.