Another mess that has to be cleaned up
Monday, Jul 29, 2019 - Posted by Rich Miller
* The Daily Line’s Hannah Meisel…
The state board in charge of reviewing procurement and contracts and leases for property owned or leased by the state of Illinois failed to promptly pay interest due to vendors during the 2018 fiscal year, according to a new audit.
Auditor General Frank Mautino’s office found the Illinois Procurement Policy Board failed to pay interest on 36 percent of vouchers tested by auditors, according to the audit. The board is responsible for hundreds of vouchers every year.
The board blamed the state’s Enterprise Resource Planning system, a project in its fifth year but not completed, that is $150 million over budget, according to another recent audit. That audit also found that the Department of Innovation and Technology, which has run the planning system since it was created by former Gov. Bruce Rauner in 2016, also let bills pile up and accrue $40 million in late payment interest fees in the 2017 and 2018 fiscal years.
ERP was designed to consolidate hundreds of separate financial reporting and computer systems across state government in a single hub, but in the case of the Procurement Policy Board’s audit, the board blamed the technology developed by German company SAP the state has been on-boarding since 2015.
The board said it was “unable to access the interest due in the new ERP/SAP accounting program and, subsequently, were never able to release payments for the prompt pay interest due,” according to the audit.
The audit report is here.
* Earlier Daily Line coverage…
* DoIT overspent by $150M, dinged on all types of deficiencies from cybersecurity to oil changes: audit