(See Attached Letter)
ERP Fact Sheet
The Enterprise Resource Program (ERP) is a $250 million (and growing) initiative to overhaul State infrastructure technology across dozens of state agencies and departments.
- The ERP falls under the supervision of the Department of Innovation Technology, a $900 million dollar state agency created by Governor Rauner in January 2016.
- The FY2018 DOIT budget is $1.3 billion and the agency will employ nearly 1,500 individuals. By comparison, the Department of Public Health has just 1,200 employees. The Department of Veterans Affairs has 1,336.
- In addition to the $94 million in FY2018 funding for the ERP, DOIT has requested $7 million for “statewide cyber resiliency and disaster recovery planning, assessment and a Security Operations Center; and $8.5 million to replace end of life hardware to support security and disaster recovery.
- If any of the 263 State’s legacy accounting systems have been retired through the ERP, our Office has not been notified. The project is scheduled to be completed by 2019.
- The ERP pilot agencies have encountered so many errors that requests for change orders will require an estimated 15,000 hours, according to information shared by program administrators with the program oversight group.
- Officials from the Rauner Administration report that $63 million, or one-quarter, of the ERP budget has been spent.
- Despite DOIT’s sizable staff and budget, the ERP is heavily reliant on outside vendors and consultants.
- The fund designated to pay ERP consultant fees was placed under cash management by the Office of the Comptroller in late-December. This determination was made after it was discovered that in the final days of her administration, the prior Comptroller expedited $71 million in fund transfers from the General Revenue Fund to various special funds including $31 million to Statistical Services Revolving Fund (SSRF).
- While these tax dollars are redirected from the state’s General Revenue fund, which has a $12.4 billion backlog, the state’s social service agencies are waiting six months or more to get paid, some of them in danger of closing their doors
- More than $26 million in consulting fee payments from the SSRF are currently being held:
- McKinsey - $12 million
- Accenture - $7.35 million
- RL Canning - $170,895
- Deloitte - $318,776
- SAP Public Services - $1.8 million
Additional background information
ERP projects experience cost overruns, glitches elsewhere
$46 million Deloitte program has defects, needs fix
Rhode Island officials resign over botched Deloitte program rollout
State of California sues SAP over troubled technology program, $59 million payout
http://www.sacbee.com/news/politics-government/the-state-worker/article82170407.html
Marin County settles ERP lawsuit under gag order
http://www.zdnet.com/article/big-money-marin-county-and-deloitte-settle-erp-lawsuit-under-gag-order/
Comptroller Susana Mendoza has a record of successfully implementing technology solutions
Comptroller Mendoza has been an advocate for making government more efficient and effective through investing in new technology. However, such investments should only be made with solid evidence that they will pay off in cost savings and improved operations.
As Chicago City Clerk, Comptroller Mendoza oversaw the overhaul of the Chicago City Vehicle Sticker program, successfully using cutting edge technology to improve customer service and provide new, sustainable revenue:
Using an investment of several million dollars, former Clerk Mendoza dramatically reduced customer wait times and increased program revenues from $115 million a year to nearly $150 million without asking Chicagoans to pay increased fees.
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You can view the PDF version of this release here.
You can view the attached letter here.