Report 2014-116 Recommendation 17 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 #17 To: Consumer Affairs, Department of

To the extent that Consumer Affairs chooses to implement BreEZe at the phase 3 regulatory entities, it should first complete a formal cost-benefit analysis to ensure that BreEZe is a cost-effective solution to meet these regulatory entities' business needs. To make certain this analysis is complete, it should include an assessment of the potential changes these regulatory entities may require to be made of the BreEZe system and the associated costs. Consumer Affairs should complete the cost-benefit analysis before investing any more resources into the implementation of BreEZe at the phase 3 regulatory entities, and it should update this analysis periodically as significant assumptions change.

Annual Follow-Up Agency Response From November 2017

The Department of Consumer Affairs, in conjunction with phase 3 regulatory entities, has developed a Business Modernization Plan (Plan) to effectively facilitate the analysis, approval, and potential transition to program specific licensing and enforcement platforms. The Plan outlines our approach to identifying board/bureau specific business needs, determining cost effective options, and proposes initial schedules. The Plan also considers the impacts and requirements of the Project Approval Lifecycle (PAL), the project approval process required by the California Department of Technology. Each board/bureau will perform a cost benefit analysis, or determine the cost effectiveness of each alternative platform, during Stage 2 of the PAL process. The Financial Analysis Worksheets (FAW) facilitate fiscal planning and comparison, and will be used to determine cost benefit on a board by board basis.

Currently there are four boards/bureaus actively documenting their current business processes to identify needs and requirements. The remaining boards/bureaus are working to inventory their business processes and schedule documentation workshops with departmental Organizational Change Management staff. One program has submitted Stage 1 of the PAL process and a second is scheduled to submit theirs within 90 days.

The thorough planning, business analysis, and program-specific nature of this effort will ensure success for our remaining boards and bureaus (formerly Release/Phase 3).

Implementation Timeframe: Proposed timelines are included and maintained in a board/bureau's individual Business Modernization Reports and may change due to business resource contention.

Individual board/bureau progress through business modernization will vary based on individual program resources, current legislative/business landscape, complexity, fiscal landscape, and the PAL process.

  • Estimated Completion Date: TBD

California State Auditor's Assessment of Annual Follow-Up Status: Pending


Annual Follow-Up Agency Response From October 2016

The Department will perform a formal cost benefit analysis after Release 2 is completed. Part of this formal evaluation will include a gap analysis that will compare existing BreEZe functionality as delivered at the completion of Release 2, to Release 3 boards and bureaus' business needs and current systems' functionality to determine if BreEZe is a cost-effective IT solution for Release 3 boards. The results of this analysis will guide the Department's future efforts to implement BreEZe. In addition, the Department will ensure that the formal cost-benefit analysis is updated periodically as significant assumptions change.

  • Estimated Completion Date: Unknown

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2016

The Department will perform a formal cost benefit analysis after Release 2 is completed. Part of this formal evaluation will include a gap analysis that will compare existing BreEZe functionality as delivered at the completion of Release 2, to Release 3 boards and bureaus' business needs and current systems' functionality to determine if BreEZe is a cost-effective IT solution for Release 3 boards. The results of this analysis will guide the Department's future efforts to implement BreEZe. In addition, the Department will ensure that the formal cost-benefit analysis is updated periodically as significant assumptions change.

  • Estimated Completion Date: TBD

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


1-Year Agency Response

The Department will perform a formal cost benefit analysis after Release 2 is completed. Part of this formal evaluation will include a gap analysis that will compare existing BreEZe functionality as delivered at the completion of Release 2, to Release 3 boards and bureaus' business needs and current systems' functionality to determine if BreEZe is a cost-effective IT solution for Release 3 boards. The results of this analysis will guide the Department's future efforts to implement BreEZe. In addition, the Department will ensure that the formal cost-benefit analysis is updated periodically as significant assumptions change.

  • Estimated Completion Date: February 18, 2018
  • Response Date: February 2016

California State Auditor's Assessment of 1-Year Status: Pending


6-Month Agency Response

The Department will perform a formal cost benefit analysis after Release 2 is completed. Part of this formal evaluation will include a gap analysis that will compare all existing BreEZe functionality as delivered at the completion of Release 2, to the Release 3 boards and bureaus' business needs and current systems' functionality to determine if BreEZe would be the most cost-effective IT solution for Release 3 boards. The results of this analysis will guide the Department's future efforts to implement BreEZe. In addition, the Department will ensure that the formal cost-benefit analysis is updated periodically as significant assumptions change.

  • Estimated Completion Date: February 18, 2018
  • Response Date: August 2015

California State Auditor's Assessment of 6-Month Status: Pending


60-Day Agency Response

The Department will perform a formal cost benefit analysis after Release 2 is completed. Part of this formal evaluation will include a gap analysis that will compare all existing BreEZe functionality as delivered at the completion of Release 2, to the Release 3 boards and bureaus' business needs and current systems' functionality to identify necessary BreEZe enhancements. The results of this analysis will guide the Department's future efforts to implement BreEZe. In addition, the Department will ensure that the formal cost-benefit analysis is updated periodically as significant assumptions change.

  • Estimated Completion Date: TBD
  • Response Date: April 2015

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2014-116

Agency responses received are posted verbatim.


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