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State audit finds major cost overruns for IT projects

A new state audit finds state agencies spent more than double the projected cost for information technology projects that took more than a year longer to complete than original estimates.

The Office of the State Auditor released a report Monday that determined the state spent $356.3 million more than expected on 84 IT projects during the Gov. Bev Perdue administration. It also found inadequate controls to monitor how much state agency's spend on various technology needs.

Chris Estes, the state's new chief information officer, said his agency is making the necessary changes to prevent cost overruns and busted deadlines in the future. He said he would release a statewide IT plan Oct. 1 to address the concerns.

The audit reviewed IT projects from December 2011 to October 2012. Among the projects with the largest increase in cost: the Medicaid Management Information System, estimated at $93 million but with actual costs of $230 million, and the tax information management system, which cost nearly $30 million more than the projected $69 million cost.

The state audit took 2,472 hours to complete at a cost of $200,000. Read the full report here.


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