Mr. WAXMAN. I hope she'll give me the answers to my questions, because those charges are pretty damning.
Now, I want to examine this HUD issue in comparison to the private sector. You would think that based on the criticisms that HUD was performing leagues below private firms that dispose of foreclosed property. But I don't know that that's the case at all.
Are you familiar with an industry benchmarking and best practices report by Andersen Consulting in March 1997?
Ms. COOPER. I'm not. No, we are not.
Mr. WAXMAN. Well, one critical success factor considered by the Andersen firm was HUD's ability to maximize return on sales. I don't know if you're aware that sales revenue for private industry averaged 96 to 105 percent or more of value. HUD's single family property disposition performance was comparable at 98 percent.
Another critical success factor recognized by Andersen Consulting was minimizing the cost of sale. Chairman Burton apparently believes that HUD is losing $1 million a day. But Andersen thinks HUD is doing as well as the private sector.
Are you aware that the industry standard for cost of sale was 12 to 18 percent of market value and that HUD's costs averaged 17 percent?
Ms. COOPER. I was aware that HUD's costs—no, that HUD's loss per property based on its acquisition costs, had increased from $28,202 in fiscal year 1996 to $31,728 in fiscal year 1998. I was aware of that. I'm not sure I was aware of the statistics that you——
Mr. WAXMAN. You weren't aware of the Andersen Consulting report?
Ms. COOPER. No
..Mr. WAXMAN. Can you imagine anybody in your field not having heard of the Andersen study?
Mr. APGAR. It was pretty widely discussed, it was a very important study for us, and it was a key to our restructuring our FHA operations.
..Mr. WAXMAN. Thank you very much, Mr. Kucinich, for yielding to me.
The Arthur Andersen Consulting firm is not a fly by night operation, it's a very highly regarded organization, isn't that accurate?
Mr. APGAR. Yes, they do very good work for us and many other Government agencies.
Mr. WAXMAN. In fact, the new head of the General Accounting Office was a partner at Arthur Andersen. That was, I think, one of the reasons that many people thought he would do a good job. He had the credentials for assuming the GAO position.
Mr. APGAR. That's true. They have good knowledge of Government practice, it makes an ideal person to move into Government service.
ILLINOIS HOUSING DEVELOPMENT AUTHORITY - Arthur Andersen LLP were our special assistant auditors for this audit
Arthur Andersen & Co. emerges from its home office in "Chicago" 
Arthur Andersen announces senior management services leadership appointments - February 20, 2001
"Also within the global management services group reporting to de Sarrau is Andrew Pincus, who recently joined the firm as general counsel. Pincus, based in Washington D.C., is the former general counsel to the U.S. Department of Commerce and was senior policy adviser to former U.S. Commerce Secretary William M. Daley on electronic commerce, telecommunications and trade policy.
It is almost as though the profligate "Boss Tweed" of New
York´s Tammany Hall had been resurrected on the federal level.
Wasted Riches
Justice unable to find bids worth $5.2 billion
Thankless Task - continued HUD scandals
When Feds Say Seize and Desist
- IRS Boss Snagged Clinton Waiver
-
On the Take:IRS Chief Rossotti Gets Kickbacks from Corporate-Government Fraud
- (AMS) A Financial Fiasco Is in the Making - slush fund for the LA Superior Court Judges Association
- Charles O. Rossotti, the 45th IRS commissioner, will retire next year
