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Auditor blasts oversight of IT system / State trying to learn from earlier mess

Source: By ED SEALOVER, THE GAZETTE (CO), August 22, 2007 - 12:02AM

The state auditor’s office blasted the Department of Labor and Employment for failing to oversee the development of a new computer system earlier this decade, saying problems that cost Colorado $24 million could have been found and addressed sooner.

The Labor Department contracted with a private firm in 2001 to create a computer system, known as Genesis, which would process unemployment benefits and taxes. After a series of missed deadlines and failed tests, the department canceled the project in December 2005 and received back just $8 million of the $32 million it had paid to Accenture.

....... An audit released Tuesday (.pdf) found that the department did not establish a project-management structure that involved three levels of oversight on the contractor, relying instead on Accenture to oversee and manage its project.