A new Defense Department inspector general audit released Thursday revealed a mixed bag for the agency’s integrated applications software — its enterprise resource planning.
Although DOD has reduced enterprise resource planning costs $382 million since the agency’s inspector general warned of schedule delays and cost overruns last year, the IG’s new report still noted continued delays for three of DOD’s six ERP systems and cost increases for two of the six.
“Schedule delays continue to increase the risk that DOD will not achieve an auditable statement of budgetary resources by FY 2014 or accomplish full financial statement audit readiness by FY 2017,” the report reads.
In 2011, then-Defense Secretary Leon Panetta set the end of 2014 as a goal for the entire agency to have an auditable statement of budgetary resources, and the end of 2017 as a deadline for full audit readiness.
The Logistics Management Program led the cost-efficiency pack, reducing costs $305 million. The report credited a thorough review of every line item for the reduction. The Navy ERP also lowered costs $152 million “because of operational efficiencies, leveraged Navy investments in knowledge management, automated testing and Web-based training.”
But the Navy ERP was also a month behind schedule. Joining in the delays were the Defense Enterprise Accounting and Management System’s ERP, which was three months behind schedule, and the Enterprise Business System-EProcurement’s ERP, which was five months behind schedule.
The Defense Agencies Initiative’s ERP experienced had the highest cost increase, $214 million, due to a required tech upgrade.