Report 2014-116 Recommendation 28 Responses

Report 2014-116: California Department of Consumer Affairs' BreEZe System: Inadequate Planning and Oversight Led to Implementation at Far Fewer Regulatory Entities at a Significantly Higher Cost (Release Date: February 2015)

Recommendation #28 To: Technology, California Department of

To ensure that contracting departments comply with requirements, CalTech should periodically monitor the status of contracts and enforce adherence to procurement requirements. For example, CalTech should ensure that contracting departments forward all change requests to it and that it conducts reviews of all change requests to determine whether the changes exceed the scope of the respective contract.

Agency Response*

CDT has updated the SPR preparation instructions to reflect potential alternatives if cost-benefit analysis is incomplete.

  • Response Type†: Annual Follow Up
  • Completion Date: March 2017
  • Response Date: November 2017

California State Auditor's Assessment of Status: Pending

In following up with CalTech regarding its implementation of this recommendation, we learned that it has not yet developed procedures to ensure that contracting departments forward all change requests to it and that it conducts reviews of all change requests to determine whether the changes exceed the scope of the respective contract. Until it develops such procedures, we will report this recommendation as pending.

  • Auditee did not substantiate its claim of full implementation

Agency Response*

ITPOD will examine change requests in the normal course of the oversight activity and if any are identified as exceeding the scope and intent of the current contract, ITPOD will raise that issue with the department and will bring the issue to the attention of the State Technology and Procurement Division (STPD), as needed. STPD will conduct a more detailed review to make the final determination whether or not the changes exceed the scope of the respective contract. Procedural documentation of these new oversight activities are expected to be completed by December 2016.

  • Response Type†: Annual Follow Up
  • Estimated Completion Date: December 2016
  • Response Date: October 2016

California State Auditor's Assessment of Status: Not Fully Implemented


Agency Response*

It is important to recognize that change requests are often necessary and proper. ITPOD uses SIMM 45, Appendix F: Project Oversight Review Checklist to evaluate the conditions which necessitate changes to the contract as well as the processes for ensuring adequate decision making at the appropriate level for issuing a change request. This includes verifying that key specification documents (e.g. contracts, requirement specifications and/or contract deliverables) and software products are under formal configuration control, with items to be controlled and specific staff roles and responsibilities for configuration management identified in a configuration management plan. This also includes verification that a formal governance process is in place, which necessitates the documentation of the reasons for approval of change requests.

ITPOD will examine change requests in the normal course of the oversight activity and if any are identified as exceeding the scope and intent of the current contract, ITPOD will raise that issue with the department and will bring the issue to the attention of the State Technology and Procurement Division (STPD) as needed. STPD will conduct a more detailed review to make the final determination whether or not the changes exceed the scope of the respective contract.

  • Response Type†: 1-Year
  • Completion Date: January 2016
  • Response Date: February 2016

California State Auditor's Assessment of Status: Pending

In following up with CalTech regarding its implementation of this recommendation, we learned that it has not yet developed procedures to ensure that contracting departments forward all change requests to it and that it conducts reviews of all change requests to determine whether the changes exceed the scope of the respective contract. Until it develops such procedures, we will report this recommendation as pending.


Agency Response*

The Department's Procurement division will continue to work with ITPOD to identify if a Change Request has deviated outside a procurement requirement. The division will then be notified to conduct a more detailed review to determine if the changes exceed the scope of the respective contract.

We expect to be able to report progress for the next scheduled update.

  • Response Type†: 6-Month
  • Estimated Completion Date: TBD
  • Response Date: August 2015

California State Auditor's Assessment of Status: Pending


Agency Response*

To address the audit recommendation that CalTech review all contract requests, STPD has formally requested staff augmentation. We will be able to provide an update on the progress of this additional resource request in our 6-month status update report.

  • Response Type†: 60-Day
  • Estimated Completion Date: 1/31/2016
  • Response Date: May 2015

California State Auditor's Assessment of Status: Pending


All Recommendations in 2014-116

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.


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