IG's qualms stall DOT financial system rollout

IG's qualms stall DOT financial system rollout

The Transportation Department has delayed the rollout of a new financial system based on critical findings by its inspector general.

Only one DOT agency has been using the system, but the plan called for deploying it departmentwide. The Federal Railroad Administration started using the system over a year ago as a pilot, but it fails to meet Transportation's financial and reporting requirements, the IG said in a new report, Implementing a New Financial Management System: Department of Transportation.

The department has spent $26 million on the development of the system by Computer Sciences Corp. Known as Delphi, it uses Oracle Federal Financials software.

The IG flagged five deficiencies in Delphi:

  • Delphi improperly adds recovered funds from expired appropriations to current-year funds.

  • The system lacks internal controls to prevent tampering with financial data.

  • Delphi does not generate reliable statements and reports.

  • The system lacks interfaces with other key systems.

  • Delphi cannot protect financial information during transmission and lacks an appropriate disaster recovery plan.

  • The department does not have a written agreement with CSC on resolving the deficiencies, the report said.

    In a memo responding to a draft version of the report, David Kleinberg, Transportation's former deputy chief financial officer, said the department would do further tests before deploying the system beyond the railroad administration.

    The department will establish target dates for moving to the latest version of Oracle Federal Financials 11i, he said.

    Transportation has already performed a live test of a disaster recovery and contingency plan, Kleinberg said, adding that the department will consult, as the IG suggested, with the Office of Management and Budget on a revised plan.

    DOT currently uses the Departmental Accounting and Financial Information System, which was built in the 1980s and also fails to meet mandated requirements.


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