HUD's FY 99 Budget
Congressional Justifications
Office of Information Technology

Working Capital Fund

Program Highlights

OBLIGATIONS BY OBJECT CLASS

The following table shows actual obligations for fiscal year 1997 and estimated obligations for fiscal years 1998-1999 for the Working Capital Fund by object class:

STAFFING

SUMMARY OF BUDGET ESTIMATES:

1.SUMMARY OF BUDGET REQUEST

The fiscal year 1999 estimate reflects increasing demand for information technology services to support the mission of the Department and the six reforms identified in the HUD 2020 Management Reform Plan. The Plan relies upon significant technology improvements in HUD information systems and expanded use of electronic communications with clients and business partners to do business with the Department. HUD must make information technology investments to support functional consolidation, front office/kiosk delivery of HUD products and services, and back office processing centers.

The Office of Information Technology is identified in the HUD 2020 Management Reform Plan as an Office to support the Administrative Support Strategy. The Strategy identifies the six reforms which cut across the entire Department. The Office of Information Technology will: adapt current technology plans to support reforms, accommodate changes in technology and information systems, adjust technology budgets to reflect updated project costs, assist project managers with contract support, provide guidance on architecture and other requirements, ensure that the new workforce uses best available technology applications to achieve reforms, and help staff improve use of information resources. Toward this end, a strategic planning process has been implemented with the draft HUD Information Strategy Plan (ISP) as a foundation to carryout the reforms. HUD capital planning policies and procedures have been adopted by the HUD 2020 Management Reform Group, Chief Information Officer and Chief Financial Officer.

The steady investment in information technology reflects the Department�s commitment to the HUD 2020 Management Reform Plan. To ensure that the Department's services continue to be made available to its customers and partners during this transition, strategic application of Information Technology will continue to provide both interim and long term solutions to support and enable HUD�s reform and reinvention initiatives.

2.CHANGES FROM 1997 ESTIMATES INCLUDED IN THE 1998 BUDGET

Total Budget authority proposed for the 1997 estimates in the 1998 Budget was $218,514 thousand. The actual 1997 Budget authority was $195,952 thousand, a decrease of $22,562 thousand.

3.CHANGES FROM ORIGINAL 1998 BUDGET ESTIMATES

Total Budget authority proposed for the 1998 estimates in the 1998 Budget was $259,000 thousand. The current estimate for 1998 is $259,000 thousand.

EXPLANATION OF INCREASES AND DECREASES

The $22,562 thousand decrease in actual 1997 Budget authority was due to the redirection of resources to pay for the HUD 2020 Management Reform Plan.

PROGRAM DESCRIPTION AND ACTIVITY

1.Legislative Authority

The Working Capital Fund (WCF) is authorized by Section 7(f) of the Department of Housing and Urban Development (HUD) Act of 1965 (Stat. 670). Centralized information technology services are provided through this activity to all elements of the Department on a cost reimbursable basis.

2.Program Area Organization

The Departmental Information Technology goals and initiatives provide the general framework for information technology strategic and capital investment planning. This approach enables HUD to continue to pursue the information strategies required for the successful implementation of the HUD 2020 Management Reform Plan with the six reforms which cut across the Department.

A.Integrating IT Investment Decisions into the Budget Process

The IT investment strategy integrates IT investment decisions into the Budget process using a method sponsored by the HUD 2020 Management Reform Group. The Group includes the Financial Systems Integration Team, Chief Information Officer and the Chief Financial Officer. The HUD 2020 Management Reform Group recommends decisions to the Technology Investment Board Executive Committee. This Committee is also supported by a Technology Investment Board Working Group. The general steps to achieve the objectives are: collect descriptions and cost estimates for current and planned IT projects; analyze the requests and determine the degree to which they support Financial Systems Integration, Store-front/kiosks and Community 2020 and the new back office processing centers; select those projects which clearly support the stated strategic priorities; and prioritize by mapping the projects back to the goals and performance measures. The four criteria for screening projects are: extent consistent with HUD 2020 Management Reform and Financial Systems Integration; extent the system produces information important to FSI; extent proposed system duplicates existing data collection; and extent the proposed system eliminates or consolidates other systems functionality.

The full impact of integrating IT investment decisions into the Budget process and the strategy to finance IT investments will continue to be refined. Over the next year, the Department will perform an analysis of the current legislative authority for the HUD Working Capital Fund. The objective of this analysis is to determine to what extent legislative changes may be needed to comply with OMB Circular A-11 and the Government Performance and Results Act. One approach to be explored is more direct linkage of all IT investment financing to HUD program accounts using a percentage of program budget authority. Legislative changes also may be required to support full implementation of the HUD 2020 Management Reform Plan. In addition, the Department plans to implement an automated investment portfolio management system being developed through an investment of inter-agency innovation funds for cooperative, multiple-agency use.

B.IT for Infrastructure Projects

The Department's infrastructure will continue to make available new or revised technology to support information needs and to improve the linkages between HUD's mission, goals and objectives and program business and information strategies. The IT technical architecture will also identify and act upon targets for business process redesign as front office and back office operations are refined.

The sound application of the Department's information technology to meet long-term needs is critical to the success of HUD's mission. The Department must have an information technology platform which will support streamlined and consolidated back office processing centers, which will allow expanded communication with customers and business partners, and which is sufficiently flexible to accommodate shifts in agency workload. In order to meet these goals, the Department will need more powerful desktop computers, powerful and diverse server technology, and a flexible communications network.

These investments consist of several significant projects. The primary investment is to maintain existing office automation hardware and software services for Community representatives, product delivery points such as store fronts/kiosks and back office processing centers. The HUD standard desktop platform consists of a workstation for every employee connected through a network of file servers nationwide. The scope of this investment includes all operations, support, and maintenance of the Department's standard suite of office automation applications; desktop graphical user interface (GUI) environment (HUDWare II) and preparation for migration to HUDware III; local area network standards; desktop/office standards; and test center operations. Operations and maintenance includes resolving user problems, performing preventive maintenance, processing software releases, and maintaining an inventory of hardware and software. Other investment projects include the Disabled Accommodation Program, replacement of older model workstations and printers, and support services for Departmental applications. Technology such as workflow/imaging will continue to be implemented to support these applications.

(2)Servers

These investments consist of several significant projects. The primary investment is in the operation of the HUD Computer Center. This operation includes the staffing and lease and maintenance of equipment, software, and the facility required to support HUD's enterprise servers. Other proposed investments include additional servers and mid-range servers to support data warehousing and client server applications. Specialized servers provide a client/server based environment for development and operation of client/server groupware applications. The benefits of groupware include support for collaborative teamwork functions such as required by the processing centers; dissemination of reference materials; tracking applications; and automation workflow. The purchase of mid-range servers will support the Department's data consolidation efforts and will provide greater access to HUD information for business partners, customers and employees.

(3)Communications

These investments consist of several significant projects. The primary investment is in the operation of the nationwide HUD communications network which links storefronts/kiosks, Processing Centers, Hubs and Headquarters. Other investments include intranet/internet services, upgrade of network bandwidth, e-Mail upgrades, mobile computing capability, and expansion of storefront/kiosks capabilities. Upgrade of network bandwidth has enabled the Department to respond to increasing demands from HUD customers for sharing of database information and remote access to database information. Additional bandwidth is also required to support videoconferencing. E-mail upgrades will improve the speed and reliability of the Department's e-mail system. Mobile computing supports the increasing need for HUD staff to access information systems from outside the standard HUD office environment. The expansion of videoconferencing will improve the Department's ability to communicate internally and with customers and business partners. It will also improve the delivery and decrease the travel costs to attend meetings.

C. IT Investments for Systems Projects

During the past year, the Department has made great progress in developing state of the art systems applications as the functional areas are consolidated. The Department continues to recognize the criticality of re-engineered and new systems to support accurate programmatic and financial information in the management and operation of the Department's programs. In fiscal year 1998, functional consolidations critical to the transformation of the Department were implemented. The Department�s information architecture will continue to be implemented by applying data administration standards to systems projects which involve re-engineered and new applications. General categories of systems projects to be included in the investment decision cycle are described below.

(1)Corrective/Adaptive Maintenance Projects

Ongoing corrective/adaptive maintenance is required on the Department's portfolio of application systems until the systems are eliminated or re-engineered to support the HUD 2020 reforms. Adequate corrective/adaptive maintenance will ensure that the processes currently provided to the Department will continue. The maintenance includes both system and end-user support. In this regard, it is essential the maintenance of critical legacy applications and the information technology environment be sustained consistent with the strategic goals of the Department expressed in the HUD 2020 Management Reform Plan.

In addition, the Year 2000 project is central to protecting HUD customers from devastating results should certificates/vouchers not be produced, collections for insurance premiums not be accepted, disbursements not be payable, and entire processes not be operational due to Year 2000 problems. In addition, interfaces to critical business partners such as financial institutions, Federal government agencies, and State agencies may be inaccessible. Failure to complete HUD's mission critical systems could cause all the previous situations to occur. HUD�s Year 2000 project has identified these potential business risks and is designed to address these risks and avoid Year 2000 system failures.

(2)Perfective Maintenance and New Development Reform Projects

These priority new development reform projects include building and improving applications for the Enforcement Center; Real Estate Assessment Center; Section 8 Financial Management Center; Financial Systems Integration; and Community Builders/Store-fronts. In addition, technology enhancements will continue.

3.Performance Indicators

For each information technology service, there is a service unit defined as a measure of the amount of a service provided to a customer. Prices are established annually and adjusted quarterly for these services. Customers are provided with a monthly Statement of Services which presents the charges incurred for the number of units of each service. The budgets and charges are grouped by Working Capital Fund project, budget project and recapped by financing document.

The following table shows actual fiscal year 1997 and estimated fiscal years 1998 and 1999 service indicators: