The Office of the Arizona Auditor General has issued a damning performance report about the state’s Department of Revenue information technology operations. The beleaguered agency is responsible for handling more than $13 billion per year to fund state and local government services.

The Auditor General said the department of revenue “did not adequately design and implement its primary computer systems.” It also blamed ineffective IT leadership.

Sean Laux is with the Department of Revenue. He cited several challenges facing the agency, such as the inefficient IT system, budget issues, and legislative mandates, including the Transaction Privilege Tax Simplification plan passed two years ago by the legislature.

"That project requires the department, we had to rewrite one-third of the tax system, and we’re in that process now, and so this is really an all-hands-on-deck project that’s requiring massive personnel involvement," said Laux.

In response to the report, the Department of Revenue’s director wrote the project was much more complicated than anticipated and they are now a year behind. The agency also said it agrees with the Auditor General’s findings and will work to implement the recommendations.