Performance audit report : automated system development and maintenance, Department of Administration, Department of Social and Rehabilitation Services, Department of Labor and Industry

100 Pages·1993·2 MB·English

by  Montana. Legislature. Office of the Legislative Auditor

o Montana*
351 .7232Legislature.
L72paas Office of the
1993 Legislative
Auditor
Perforaance
audit report
iFifice of the Legislative Auditor
State of Montana
Report to the Legislature
Performance Audit Report
December 1993
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MONTANA STATE: LIBRARY
1515 E. 6th AVE.
Automated System DevelopmentONTANA 59G20
and Maintenance
Department of Administration
Department of Social and Rehabilitation Services
Department of Labor and Industry
This report provides:
Background information regarding automated system
development and maintenance.
Information and recommendations regarding system develop-
ment and maintenance activities specific to three state
agencies.
Information regarding concerns common to all three state
agencies and recommendations for increasing the effective-
ness of operations.
Direct comments/inquiries to:
Office of the Legislative Auditor
Room
135, State Capitol
PO Box 201705
MT
Helena 59620-1705 92P-42
MONTANASTATELIBRARY
S351 7232L72paas1993C.1
Performanceauditreport automatedsyst
3 0864 00088627 8
PERFORMANCE AUDITS
Performance audits conducted by the Office of the Legislative Auditor are designed to assess
state government operations. From the audit work, a determination is made as to whether
agencies and programs are accomplishing their purposes, and whether they can do so with
greater efficiency and economy. In performing the audit work, the audit staff uses audit
standards set forth by the United States General Accounting Office.
Members of the performance audit staff hold degrees in disciplines appropriate to the audit
process. Areas ofexpertise include business and public administration, statistics, economics,
computer science, communications, and engineering.
Performance audits are performed at the request of the Legislative Audit Committee which
is abicameral and bipartisan standing committee of the Montana Legislature. The committee
consists of four members of the Senate and four members of the House of Representatives.
MEMBERS OF THE LEGISLATIVE AUDIT COMMITTEE
Senator Greg Jergeson, Chairman Representative John Cobb, ViceChairman
Senator Gerry Devlin Representative Ernest Bergsagel
Senator Eve Franklin Representative Linda Nelson
Senator Tom Keating Representative Robert Pavlovich
STATE OF MONTANA
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STATECAPITOL
HELENA, MONTANA 59620
406/444-3122
DEPUTY LEGISLATIVEAUDITORS:
MARYBRYSON
Operationsand EDPAudit
LEGISLATIVEAUDITOR: JAMESGILLETT
SCOTTA.SEACAT Financial-ComplianceAudit
LEGALCOUNSEL: JIM PELLEGRINI
JOHNW. NORTHEY December 1993 PerformanceAudit
The Legislative Audit Committee
of the Montana State Legislature:
This is our performance audit of Automated System Development and
Maintenance at the Department of Administration, the Department of Social and
Rehabilitation Services, and the Department of Labor and Industry. This report
contains recommendations concerning management of system development and
maintenance activities within the three agencies. Department responses are
contained at the end of the report.
We wish to express our appreciation to the staff of each of the departments
for their cooperation and assistance.
Respectfully submitted,
Scott A. Seacat
Legislative Auditor
A
Office of the Legislative Auditor
Performance Audit
Automated System Development
and Maintenance
Department of Administration
Department of Social and Rehabilitation Services
Department of Labor and Industry
Members of the audit staff involved in this audit were Dave Gould,
Kent Rice, and Kimberly A. Stenberg.

1
Table of Contents
List of Tables and Figures iv
Appointed and Administrative Officials v
Report Summary S-l
Chapter I Introduction 1
Introduction
Audit Objectives 1
Audit Scope and Methodology 2
Data Limitations 4
Compliance 4
Implementation Status of Prior Audit Recommendations ... 4
Issue for Further Study 5
Chapter II Introduction 7
Background
Automated System Development and Maintenance 7
System Development Life Cycle (SDLC) 7
SDLC Initiation 8
SDLC Definition 8
SDLC Design 8
SDLC Development and Testing 9
SDLC Operation and Maintenance 9
SDLC Variations 9
Prototyping 10
System Operation 10
System Maintenance Life Cycle 11
Record and Analyze
1
Design/Code and Test 11
Implement 12
Agency Operations 12
House Joint Resolution 48 13
Data Processing Oversight 14
Chapter III Introduction 17
Department of
Administration Application Services Bureau (ASB) 17
ASB System Development 18
Preliminary Analysis 18
Prototyping - Three Levels 19
System Test and Installation 19
Page
i
Table of Contents
ASB System Maintenance 19
ASB Contracted Services 20
ASB Related Issues 20
Introduction 20
Post-Implementation Review 20
Chapter IV Introduction 23
Department of Social
and Rehabilitation Operations and Technology Division (OTD) 23
Services OTD System Development 25
Conceptual Phase 25
Definition and Design 25
Implementation and Evaluation/Acceptance 26
OTD System Maintenance 26
OTD
Contracted Services 26
Contracting Procedures 27
TEAMS
Contract 27
TEAMS
Costs 28
OTD
Related Issues 29
Introduction 29
Training 29
V
Chapter Introduction 33
Department of Labor
and Industry Department of Labor and Industry (DOLI) Reorganization 33
. .
DOLI System Development 35
Project Definition 35
Analysis and Design 35
Coding, Testing, and Implementation 36
DOLI System Maintenance 36
DOLI Contracted Services 36
DOLI Related Issues 37
Introduction 37
Separation of Development/Maintenance Staff 37
Chapter VI Introduction 41
Common Concerns
Coordination in System Development 41
System Testing and Test Documentation 43
ASB Testing Policy 44
OTD
Testing Policy 44
DOLI Testing Policy 44
Testing Policies Not Followed 45
Testing in Production More Costly 46
Page
ii
Table of Contents
System Documentation 47
System Documentation Required for ASB 48
System Documentation Required for OTD 49
System Documentation Required for DOLI 49
Systems Reviewed 50
Not All Required Documentation Maintained 50
Lack of Documentation a Common Problem 51
Management Information 53
Lack of Management Information Systems - OTD &
DOLI 53
No Formal Measurement of Performance 54
Performance Appraisals 55
System Development and Maintenance Standards 56
No Formal Process - OTD 57
No Formal Process - DOLI 57
Chapter VII Methodologies are in Place 61
Summary
Methodologies are not Always Followed 61
Improved Management Controls Needed 61
Agency Response Department of Administration 65
Department of Social and Rehabilitation Services 68
Department of Labor and Industry 72
Page Hi
List of Tables and Figures
Table 1 Recommendation Status
84DP-12
(based on limited follow-up) 5
Table 2 System Development and Maintenance
Agencies and FTE 13
Table 3 Application Services Bureau
System Development/Maintenance Income and Expenses ... 18
Table 4 Operations and Technology Division
System Development/Maintenance Expenses 25
Table 5 Office of Information Services
System Development/Maintenance Expenses 35
Figure 1 System Development Life Cycle
Traditional 8
Figure 2 System Development Life Cycle
Variation 10
Figure 3 System Maintenance Life Cycle
Typical 11
Figure 4 Information Services Division Organization 17
Figure 5 Operations and Technology Division Organization 24
Figure 6 Department of Labor and Industry Organization
(partial - as of 9-93) 34
Page iv