What's happened to the Army Corps of Engineers?

When I was a kid, the Army Corps of Engineers was cosidered a top notch organization. Lately, I've been wondering as to my judgment then. Could the organizations have deteriorated as badly as it seems to have done? Katrina is the classic example of the Corps difficulties. Iraq is also proving an example, as well. Their work there for the Department of State, as noted by the GAO, is proving problematical. Part of the problem is the State Department's lack of management and frequent changes in policy. But the Corps apparently can't exercise reasoanble financial controls.