RALEIGH – The state doesn’t know if its investment in information technology is paying dividends because state agencies aren’t tracking benefits, a new report from State Auditor Beth Wood says.

Wood, in a video statement accompanying the report, said her office questioned whether the state was getting its money’s worth in its IT investments.

“Our answer to that question is that no one can tell because state agencies are not required to keep track of the financial benefit of IT projects after they’re put in place.”

Agencies are not required to track the benefits once IT projects are started, and many do not, Wood said. “The few that do track benefits use inconsistent, unreliable methods,” Wood added.

Wood said five separate state agencies or departments approached decisionmakers about nine IT projects, claiming the projects would deliver $1.2 billion in overall benefits to the state.

“Our auditors could not determine if that estimate was true or if the state achieved any financial benefit from those projects,” Wood said.

In one instance, the State Board of Elections paid SOE Software Corp. $988,786 up front to replace the state’s campaign finance IT system and received nothing in return.

In a letter responding to the audit, State Board of Elections executive director Kim Westbrook Strach said she agreed with the findings and that the money should not have been paid up front.

“I personally expressed my concerns on this matters, as well as on the pursuit of a sole source waiver, to the previous executive director and board in 2011,” Strach wrote. “In the summer and fall of 2013 we attempted to remedy many of those weaknesses by renegotiating with the vendor but were, unfortunately, unable to reach an agreement with the vendor that would comply with procurement laws and policies.”

Other IT projects audited involved the Wildlife Resources Commission for the Coastal Recreational Fishing License, the Department of Public Safety for three VIPER radio communications projects, the Department of State Treasurer to develop a new retirement accounting and management system, and the Department of Public Instruction for three different projects.

The departments and agencies generally agreed with the auditor’s findings and recommendations.

The auditor recommended that the state chief information officer and state budget office direct agencies to calculate and track the achieved benefits of major IT projects. In addition, the report recommended that the CIO and budget office offer guidance to ensure consistency in the methods and measures applied.

The report also urges the General Assembly to clarify the responsibilities of the chief information officer related to the governance and management of information technology.

Barry Smith (@Barry_Smith) is an associate editor of Carolina Journal.