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Audit Cites IT Project Woes In Wisconsin
by Michael Martinez
Auditors in Wisconsin this week blasted the state agencies in charge of carrying out information technology projects that have been plagued by delays and cost overruns.
A report released by the state Legislative Audit Bureau identified 22 ongoing "high-risk" IT projects that are expected to cost more than $180 million to complete. The list of at-risk projects included initiatives to build or upgrade the state's annuity payment, integrated corrections, Medicaid management, unemployment insurance and voter-registration systems.
According to the bureau, the state's Administration Department has broad responsibility for overseeing IT projects at other executive agencies. But it found that during the past several years that department has been busy dealing with its own problems, such as fixing its e-mail server.
"As a result, [the department] has not adequately collaborated with agencies to identify and monitor high-risk projects," the audit said.
Those at-risk projects have accounted for more than 90 percent of the cost of the state's IT initiatives, according to the report. Each of those projects is expected to cost at least $1 million. The report found that difficulties typically occurred because of planning failures, particularly with defining the final functions of projects, and unanticipated costs.
One of the projects scrutinized by the audit was suspended in February. That initiative was to deploy customized software at the state's Workforce Development Department that would enhance its automated benefits and legal enterprise system. Auditors said that only one component of the plan has been implemented and that it already has cost $23.6 million. The department is re-evaluating the feasibility of the project.
Some lawmakers fumed over the audit. Republican state Rep. Suzanne Jeskewitz told the Wisconsin State Journal that the state's IT project management has been "deplorable" and that she hopes the report will inspire change in how the state contracts for IT initiatives. Jeskewitz is co-chairwoman of the legislature's Joint Audit Committee.
Auditors recommended that the Administration Department take immediate steps to improve its oversight capability. The report said a method used in Virginia to calculate risk scores for IT projects is particularly effective. It also suggested that agencies adopt a standard format for outlining their annual IT plans.
The department has been asked to submit a report to the legislature in October on its progress in implementing the recommendations.
In a letter responding to the audit, Administration Secretary Michael Morgan said the department would adopt the recommendations. But he also said the state needs to become more flexible in how it does business if IT projects are to be more successful.
The department "will work with agencies to define a standard process for evaluating progress of major programs and applying corrections," Morgan wrote. "However, we must ensure an environment throughout state government, including in the legislature, that not only allows but encourages mid-course corrections within a project."
Louisiana Must Pay Videogame Industry's Legal Tab
A federal judge has ordered Louisiana to pay more than $90,000 to the videogame industry to cover its legal fees in a case over the constitutionality of a law prohibiting sales of violent games to minors.
U.S. District Judge James Brady, who overturned the law last year on constitutional grounds, ordered the state this week to pay the legal fees incurred by the Entertainment Merchants Association and the Entertainment Software Association. The law would have imposed fines up to $2,000 on vendors caught selling certain games to minors.
The videogame industry thus far is undefeated in challenging state laws designed to curtail sales of violent and sexually explicit games to children. Similar laws enacted during the past several years in California, Illinois, Michigan, Minnesota and Oklahoma also were blocked by courts.
"The court wonders why nobody objected to the enactment of this statute," Brady wrote in his decision. "In this court's view, the taxpayers deserve more from their elected officials."
The videogame industry cheered Brady's order. Entertainment Software Association Senior Vice President Gail Markels said that companies are willing to work with lawmakers to educate parents on which games are appropriate for their children but that regulations like the proposed Louisiana statute are not appropriate solutions.
"It's unfortunate that some officials continue to believe that unconstitutional laws are the answer when time and time again courts have thrown out these bills and proven them to be a waste of taxpayers' dollars," Markels said. "It couldn't be clearer that the real answer is not regulation but education of parents to empower them to use the videogame rating system, parental controls in game consoles and other available tools."
But lawmakers in New York already are moving toward regulation. Democratic Gov. Eliot Spitzer announced this week that videogame legislation is one of his top priorities for the remainder of this year's session, along with campaign finance reform and legislative redistricting.
New York state Reps. Keith Wright and Aurelia Green floated proposals earlier this year that resemble those overturned in other states. Wright's bill would require retailers to create "adults only" sections for videogames.
Microsoft To Pay Big To Settle Suit In Iowa
Microsoft has agreed to pay nearly $180 million to settle a class-action lawsuit filed by consumers in Iowa who claimed they were overcharged for software products.
Bloomberg News reported this week that the terms of the settlement, which was reached in state court, were made public Wednesday. Microsoft will pay $179.95 million in cash and vouchers to settle the suit. Judge Scott Rosenberg gave the deal preliminary approval.
Microsoft has settled antitrust suits in 18 states and the District of Columbia, but the Iowa case will be the costliest for the company so far. Microsoft lawyer Richard Wallis said the firm was pleased to be able to move on from the case. The settlement will resolve one of the last remaining private antitrust complaints against Microsoft, if it is approved.
Roxanne Conlin, a lawyer representing the plaintiffs, told reporters that the settlement was generous. Her clients have accused the company of abusing its market position by overcharging them for software products, including the company's Windows computer-operating system.
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