Due to computer system implementation difficulties, the Department of Finance and Administration failed

STATE OF TENNESSEE COMPTROLLER OF THE TREASURY State Capitol Nashville, Tennessee 37243-9034 (615) 741-2501 Justin P. Wilson Comptroller August 9, 2010 The Honorable Phil Bredesen, Governor and Members of the General Assembly State Capitol Nashville, Tennessee 37243 and The Honorable M.D. Goetz, Jr., Commissioner Tennessee Department of Finance and Administration State Capitol Nashville, Tennessee 37243 Ladies and Gentlemen: The Tennessee Comprehensive Annual Financial Report (CAFR) for fiscal year 2009 is complete, and the auditor’s opinion letter was issued August 6, 2010. In comparison to prior years, the 2009 CAFR issuance is not timely by seven months. The reasons for the delay relate to difficulties in implementation of the State of Tennessee’s Enterprise Resource Planning (ERP) Project, commonly referred to as Project Edison. Like most major organizations, the state invests considerable resources in updating information systems. Unfortunately, these efforts are often marked by cost overruns and other inefficiencies. The design and implementation of any new computer system present challenges to staff that bring into play many human elements that cannot be completely predicted or controlled. While we recognize delays and difficulties with system implementation are common, we believe it is prudent to point out deficiencies so steps can be taken to improve the state’s systems implementation efforts overall. ...