Audit shows problems with state sales-tax receipts
Source: By DON WALKER, Milwaukee Journal Sentinel (WI), Dec. 22, 2005
A new review of the troubled computer system used to manage state sales-tax receipts has found new problems, resulting in underpayments and overpayments to counties that receive proceeds from the tax. The Legislative Audit Bureau released the report on the troubled Integrated Tax System (ITS) this morning. ...... State officials paid American Management Systems $12.2 million for the system, but the cost has since ballooned to at least $27.6 million. The higher costs also are reflective of changes in the contract and changes in the scope of the computer system. In 2003, software problems within the system forced 57 counties to repay the state $24.5 million after the department overpaid them. Last summer, another glitch resulted in 23 counties being shorted $1.3 million and 35 others being overpaid about $2 million.