An Audit Report on Contracts Related to the Texas Workers' Compensation System
June 2006
Report Number 06-045
Overall Conclusion
The Department of Insurance (Department) became responsible for the development of and contracts related to the automated Texas Workers' Compensation System (TxCOMP) in September 2005, six years after the project was initiated. The scope of this audit covered TxCOMP contracts entered into between January 2002 and December 2005.
During the initial six years of TxCOMP system development and implementation, there was poor contract management and the project experienced delays and cost increases. TxCOMP was originally budgeted at $13.18 million with an estimated completion date of August 2007. As of March 2006, at least 74 percent of the funds appropriated to the project had been spent and the project was only 30 percent complete.
The Department has taken steps to improve the management of the TxCOMP project. Specifically, it has:
- Restructured the TxCOMP project to allow for better accountability and decision-making.
- Assigned an employee who is a certified project manager and who has extensive project management experience to be the TxCOMP project manager.
- Hired a contractor to assess the current state of TxCOMP development and determine what is necessary to stabilize the current technical environment.
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