Skip to main content

An Audit Report on the Department of Information Resources' Administration of the TexasOnline Contract

November 2005

Report Number 06-011

Overall Conclusion

In September 2005, the Department of Information Resources (Department) significantly strengthened the provisions of its Framework Agreement (hereafter referred to as the contract) with the contractor that is developing and operating TexasOnline, the e-government Web portal for the State of Texas. However, the Department should improve its current contract monitoring, and in future contracts it should establish additional contract provisions.

Since its inception in 2000, TexasOnline's development and operation have been financed by a unique arrangement. The contractor agreed to pay the cost of system development in exchange for retaining between 80 to 100 percent of TexasOnline gross revenues that are generated through the fees charged for services offered through TexasOnline. The TexasOnline contractor complied with the majority of the contract requirements we audited. We identified nearly $1.3 million in expenditures that require the Department's further review (approximately 1.6 percent of the $83.1 million in total TexasOnline expenditures).

Contact the SAO about this report.

Download the Acrobat version of this report. (.pdf)

If you prefer an HTML version, follow this link to an Adobe site which converts PDF files to HTML.