“.I . .II..I . “.I_.“.““.l^l IJ~kittvl I...__,,.. Stat,w (;t~wral _ ll”.l”--__ .-...-.“.--.. Acctount,ing Of’f’ictt ----1-1 GAO Report, to tht Chairman, Subcommit,tee on hbor’, Health, and Human Services, ll:duc.;at,ion,and Related Agencies, Committw on Appropriations, I323.Senate sty (~IIIIWl~ 1!1!)0 ADP BUDGET Analysis of HCFA’s Fiscal Year 1991 ADP Budget Request & IIllllllIII 142437 -..I-“.._ .-.. ~ -____ ..__... - ._.___ -_ .-__- - _.__ _______.._._.._.... -- ___. --..._--__.--.- . . . . . ..-_ - -..---- (;AO/IM’I’E(:-!)O-(i7 _. ,.... ~... .- --... - .- .-._ - ..-... ..- _____” ____” *_,,_l%.~II” --.- _~ - --.--- 4-_“,^.-1-11. . Udted states GAO General Accounting Office Washington, D.C. 20548 Itiormation Management and Technology Division B-241297 September 28,199O The Honorable Tom Harkin Chairman, Subcommittee on Labor, Health and Human Services, Education, and Related Agencies Committee on Appropriations United States Senate Dear Mr. Chairman: On January 22,1990, you asked us to analyze the Health Care Financing Administration’s (HCFA) fiscal year 1991 information technology systems budget request of $60.7 million. Besides covering personnel, operations, and maintenance, the request includes $12.2 million for three major system enhancement projects to obtain more automated data processing (ADP) and communications equipment, new software development, and related commercial services. As arranged with your office, we deter- mined whether HCFA had justification for the $12.2 million requested. We conclude that HCFA has adequate support for all three projects. HCFA is responsible for managing a number of health-related programs. Background These responsibilities include managing the Medicare and Medicaid pro- grams, coordinating federal health-provider survey and certification efforts, supporting regulatory requirements, and directing various activ- ities to ensure good health care. In administering these programs, HCFA headquarters uses ADP systems to collect Medicare and Medicaid program data and perform internal agency management functions. HCFA'S computer center includes a data communication network to exchange information with Medicare con- tractors and state agencies, and mainframe computers and other equip- ment, such as computer terminals and storage devices. HCFA also relies on support from the Social Security Administration’s computer center. HCFA'S fiscal year 1991 information technology systems budget request Analysis of HCFA’s for $60.7 million includes $12.2 million for three major systems Information enhancement-related projects, which include: Technology Systems Project to Redesign Information Systems Management ($7.1 million) Budget Request l which involves buying more hardware and software to meet current Page 1 GAO/IMTECfIO87 HCFA’e ADP Budget Request ’ , E241297 programmatic information needs more efficiently; and obtaining sys- tems’ integration support to help monitor the progress of software development contractors and validate the operation of the new hard- ware, software, and data communications services. l Software Development ($6 million) involves developing software to set up new data systems and modify existing ones to meet provisions of the Department of Health and Human Services’ medical treatment effective- ness program. This program seeks to enhance the quality and effective- ness of health care services through a broad base of scientific research. HCFA is responsible for building and maintaining analytic data files to support the program. . acquisition ($. 1 million) involves increasing mainframe capacity and buying hardware to implement provisions of the Omnibus Budget Reconciliation Act of 1989. You asked us to determine whether HCFA had justified these three system enhancements projects. Working at the HCFA headquarters in Woodlawn, Maryland, we examined documents supporting the indi- vidual system enhancement projects and reviewed documentation for project cost and schedule data to verify their preparation in accordance with Office and Management Budget Circular A-l 1 (schedules 43A and 43B).l We also met with senior program and management officials to obtain more supporting documentation and confirm our understanding of the underlying need for individual enhancements and the justification and funding status of individual information system projects. On this basis, we concluded that HCFA has adequate support for all three projects. Our evaluation was conducted from February 1990 through September 1990. As requested by your office, we did not obtain written agency comments on a draft of this report. We did, however, brief HCFA officials on the results of our work, and have incorporated their comments where appropriate. Our work was performed in accordance with generally accepted government auditing standards. Copies of this report are being sent to the Chairman of the House Com- mittee on Appropriations, the Director, Office of Management and Budget, the Administrator of General Services, the Secretary of Health and Human Services, and the Administrator, Health Care Financing ‘Circular A-l 1 requires ag#n~%~to report to the Office of Management and Budget on the acquisition, operation, or use of automWd data processing systems and telecommunications services or facilities. Page 2 GAO/lMTEGBB67 HCFA’s ADP Budget Request B-241297 Administration. Copies will also be available to other interested parties upon request. Should you have any questions about this report or require additional information, please contact me at (202) 2754669. Major contributors to this report are listed in the appendix. Sincerely yours, Frank W. Reilly Director, Human Resources Information Systems Page 3 GAO/IMTJSGBO87 HCFA’s ADP Budget Request Appendix I Major Contributorsto This Report Information Michael A. Alexander, Senior Evaluator Management and John M. Resser, Evaluator Technology Division, Washington, DC. (610488) Page 4 GAO/llWIEGBB87 HCFA’s ADP Budget Request = = CG = = f x ;m. =: 32, --.
ADP Budget: Analysis of HCFA's Fiscal Year 1991 ADP Budget Request
Published by the Government Accountability Office on 1990-09-28.
Below is a raw (and likely hideous) rendition of the original report. (PDF)