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Committee: Scrap computer system
A key legislative committee told the Martz administration Wednesday it should pull the plug on remnants of a problem-plagued and undependable computer system that has cost the state $37 million and still doesn’t work properly.
Associated Press The Billings Gazette
The Legislative Audit Committee recommended the administration begin searching for a replacement system, rather than counting on the flawed POINTS system as a permanent tool for the Revenue Department.
"Enough is enough," said Sen. Corey Stapleton, R-Billings. "The Legislature has lost confidence in POINTS and it has greatly affected the ability of the department to perform its primary function."
Kurt Alme, revenue director, said the administration will consider the committee’s stand in deciding what to do next. What replacement system is available, the cost and the risks of changing are issues that have to be determined before a decision can be made, he said.
This was the second time this year the committee has concluded POINTS – Process Oriented Integrated Tax System – is a hopeless cause.
Members recommended in March that the department abandon the second phase of the system that would have handled individual and corporate income taxes.
The department did not agree until November, spending an additional $1.02 million on that portion of the system during the intervening eight months.
Wednesday’s 8-1 vote by the committee urged the department to give up on the first phase of the project as well. That portion was to process collection of job-based taxes, such as unemployment insurance.
The decision was prompted partly by a new audit of the agency that uncovered continuing financial problems linked to POINTS. But the committee also saw a report from an IBM consultant who found persistent errors in the POINTS data that could involve millions of dollars.
The report gave the state a grade of "C" for the quality of data, indicating as much as 5 percent of the tax information was laced with problems. One percent or less is considered an acceptable level.
Alme, who said he could not estimate when POINTS will be functioning properly, acknowledged his agency’s drive to repair the problems has been damaging.
"POINTS has impacted adversely the department and caused additional stress and work throughout the department," he said.
Sen. Jim Elliott, D-Trout Creek, said the state cannot afford to dabble with POINTS any longer.
"It’s time," he said. "There is no guarantee that a replacement will go smoothly, but there’s certainty that this hasn’t," he said.
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Copyright © The Billings Gazette, a division of Lee Enterprises.
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