A new approach to modernizing the Department of Housing and Urban Development’s financial systems could save up to $44 million said the agency in a statement on Wednesday.
”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.”
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.
“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.”