# Chapter 9: GAO Reports

**9-1 GAO Report Process.** The GAO reports are either self-initiated,
conducted at the request of Congress, or mandated by Congress.
Additionally, the GAO may conduct research studies or issue
questionnaires to survey potential areas of audit interest or to develop
background data where requests from Congress are anticipated. Reports
issued by the GAO are directed to (1) Congress, (2) the Secretary, or
(3) Headquarters Primary Organization Heads (HPOHs). The reports, which
include Congressional testimony, may be directed specifically to the
Department or cross cut other government agencies as well.

A. The Director, Audit Coordination Division (ACD) in the Office of the
CFO serves as Departmental ALO (DALO) and is the initial point of
contact with GAO for all audit issues. This office will designate the
lead program office for reviews and notify the appropriate program GAO
coordinator and key staff. Audit liaison responsibilities for the DALO
and program office ALOs are discussed in detail in Chapter 4.

> B. In conducting and issuing reports, the GAO usually employs the
> following process:

1.  [Review Announcement]{.underline}. The GAO will normally issue an
    announcement letter to the Department before it begins any formal
    review activity. The letter will indicate who in GAO will conduct
    the review, what issues will be reviewed, when the review will
    begin, and where the review will be conducted.

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2.  [Entrance Conference]{.underline}. When conducting a formal review,
    the GAO will request an entrance conference, through the ACD. During
    the entrance conference, the GAO will explain the scope of its
    review in detail, provide insight into the types of data needed, and
    answer program office questions about the review. Program offices
    impacted by the review must be represented by program staff who have
    read the announcement and have adequate knowledge of the program
    being reviewed. The Deputy Secretary has directed that attendance by
    designated principal staff is mandatory for these meetings.

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3.  [Review On-going]{.underline}. During the review phase, any
    significant issues raised by the GAO, or areas of disagreement with
    the GAO, must be brought to the immediate attention of the program
    office ALO. While full cooperation is expected from HUD officials,
    program officials interviewed by the GAO should only speak to areas
    within their span of control and should refer any questions or
    requests for data outside their span of control to their ALO.
    However, under no circumstances shall a program official
    unilaterally refuse information to the GAO. Such issues must be
    addressed to the appropriate ALO.

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4.  [Exit Meeting and Draft Report]{.underline}. Upon completion of its
    review, the GAO will usually hold a formal exit meeting and provide
    a summary of the statement of facts and findings. After the exit
    conference is completed and resulting comments considered, the GAO
    will issue a formal draft for official comment. The Department has
    30 days for responses to draft reports per Statute (31 U.S.C.
    Paragraph 718 b). The GAO will accept fax responses to draft reports
    in these situations. Requests for due date extensions must be
    directed to the ACD, who will attempt to negotiate such extensions
    with the GAO.

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a.  The statement of facts and findings is usually presented during the
    exit meeting. It is essential that any areas of disagreement or
    clarification be identified by HUD during this phase, even if there
    are no specific recommendations for the Department. It is also
    essential that any significant issues raised by the GAO during this
    phase, either in the data presented or in proposed recommendations,
    be elevated to the Deputy Secretary via the CFO.

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b.  When the formal draft report is issued, it may contain
    recommendations for HUD which will be directed to either the
    Secretary or HPOHs. Draft responses must be prepared by the
    organization with lead responsibility with a copy to the ACD. HPOHs
    have the responsibility to notify the Secretary/Deputy Secretary of
    specific GAO recommendations.

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c.  Responses to draft reports should be directed to the GAO official
    who signed the announcement letter with a copy to the lead auditor
    unless otherwise directed by the ACD.

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5.  [Final Report]{.underline}. After receiving formal draft comments,
    the GAO will issue a final report. HUD must respond to the GAO final
    reports that contain recommendations within 60 calendar days of the
    publication date, and responses must include a plan of corrective
    action with target completion dates per law (Section 236 of the
    Legislative Reorganization Act of 1970). The Deputy Secretary has
    directed that prompt responses are a top Departmental priority, and
    both the CFO and the GAO track responses for timeliness.

**9-2 Report Response Requirements.**

> A. If a final report contains recommendations, they may be directed to
> either the Secretary or HPOHs. Responses are required by HUD even if
> the issues raised were answered by HUD in the draft report. The
> responses must be prepared by the organization with lead
> responsibility with a copy to the ACD.

B.  If the report contains recommendations for HUD, responses to final
    reports must be sent within 60 calendar days of the report
    transmittal letter date to each of the following:

-   Comptroller General, General Accounting Office

-   Director, Office of Management and Budget

-   Chairman, Committee on Appropriations, United States Senate

-   Chairman, Committee on Government Affairs, United States Senate

-   Chairman, Committee on Governmental Reform and Oversight, House of
    Representatives

-   Chairman, Committee on Appropriations, House of Representatives

> The Office of Congressional and Intergovernmental Relations can
> provide the name of the current committee chair for each of the
> committees listed.

**9-3 Reporting and Review Follow-up.**

> A. The GAO tracks the status of corrective actions on open
> recommendations, and issues an annual [Status of Open
> Recommendations]{.underline} report to Congress and to HUD on their
> implementation. Additionally, the GAO systematically follows up on
> open recommendation status. Program officials with open
> recommendations must inform the GAO, via the ACD, of implementation
> changes, schedule changes and completion dates and must provide
> documentation as necessary to close open recommendations.
>
> B. The ACD also maintains a HUD specific tracking report for open GAO
> recommendations. This database is updated periodically based on input
> from the respective program office ALO(s), and is used to provide
> reports on the status of GAO recommendations. Additionally, the ACD
> serves as a negotiating agent with GAO to resolve differences
> concerning closure of open recommendations and changes in
> implementation plans.