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Legislative audit shows wvOASIS consultants paid more than $24 million

CHARLESTON, W.Va. — A legislative audit shows the state paid consultants $24 million to provide “project oversight” of the wvOASIS software system, auditors told lawmakers Tuesday.

Post Audits Division Director Denny Rhodes said nine consultants billed the state for more than $1 million each over the seven-year life of the contract. Rhodes said much of the work was done without proper state supervision.

According to the audit consultants were paid more than $24 million.

“During our audit it became clear that there was not proper oversight of the contractors. Verification of the hours invoiced by consultants was insufficiently planned. ISG invoices only show the numbers of hours worked and billed per day,” Rhodes said.

MORE Read full audit report here

The state Enterprise Resource Planning Board, made up of the governor, state auditor and state treasurer, hired consultant Information Services Group (ISG) in May 2010 to oversee the wvOASIS implementation. Rhodes said the consultants haven’t properly trained state workers and the contract has been renewed year after year.

“The consultants were able to embed themselves in critical line functions in running the ERP system such as payroll,” Rhodes said.

According to the audit, one consultant billed the state an average of $33,000 a month for 76 months totaling $2.5 million. Another consultant billed an average of $35,000 a month over a 33-month period.

“At the time we completed the audit the state has paid over $24 million in consulting services to ISG since May 2010 which equates to an average monthly invoice of almost $300,000 for 81 months,” Rhodes said.

The wvOASIS project, which aim has been to streamline the business functions of state government including payroll, has cost the state approximately $150 million.

New state Auditor J.B. McCuskey along with representatives of the governor’s and treasurer’s offices ended the contract with ISG last month and hired subcontractor Dataview for one year, McCuskey told lawmakers Tuesday.

“They will be providing us the payroll activities now and ensuring that we will have our own people that will be able to do it within year. The plan is for Dataview to be working themselves out of a job,” McCuskey said. “The real change has been a change in perspective from consultants forever to consultants training state employees. I feel pretty strongly we’re on a good path.”

Former state Auditor Glen Gainer was a big proponent of the wvOASIS project and the move from paying state workers twice a month to every other week. Phase 2 of the payday change was approved in April 2016 with Gainer’s support.

“I’m tired of being 50th and it’s time that we adopt business practices that move us ahead,” Gainer said at the time. “I understand the fact that it’s change and people dislike change and change causes fear.”





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