The Department of Housing and Urban Development does not
have an effective internal control system in place to
maintain accountability over its computer equipment — on
which it reportedly spent $59 million from fiscal 2001 —
2003, the General Accounting Office said in a letter to
the Senate Appropriations Committee.
A GAO report from 2003 raised concerns about HUD
accountability for computer-related equipment bought with
purchase cards when it could not find supporting
documentation on recent purchases. Indeed HUD acknowledged
that it did not consistently enter supporting information
into its asset management system, which increased the
potential for loss or theft of computer assets.
The letter said fundamental internal control activities
were not performed on computers and related equipment,
and that HUD did not perform regular physical inventories
to verify the quantities and location of computer equipment.
HUD has awarded a new information technology contract
for information processing, telecommunications, and
related needs on an agency wide basis, but will still be
accountable for HUD-owned equipment at least through
fiscal year 2006, according to the letter. But GAO
warned that until HUD corrects the weaknesses in its
internal controls it would face problems with
accountability and vulnerability.