Testifying before a state legislative committee Wednesday, University of Wisconsin System officials said that a multimillion-dollar software project derailed last year due to insufficient planning, nonstandard business practices and poor communication.

UW System Senior Vice President Don Mash said a more thorough planning process and increased oversight, both internal and external, would help prevent similar problems in the future.

"UW takes seriously its responsibility to manage our IT systems effectively and efficiently," Mash said.

Implementation difficulties with the appointments, payroll and benefits system resulted in an eventual cancelation in July 2006. Officials estimate $26 million of taxpayer money was sunk into the project.

Kate Wade, a member of the nonpartisan Legislative Audit Bureau, said the UW System is largely exempt from Department of Administration oversight. She recommended the Board of Regents report periodically to the Joint Legislative Audit Committee on IT system issues.

UW System spokesperson David Giroux called transparency a "top priority" in an interview with The Badger Herald and said the UW System welcomes the call for oversight.

According to Giroux, the Board of Regents would likely approve a resolution supporting further oversight, including reports to the committee, at next week's meeting.

"The legislators are effectively our shareholders, our major investors, and they deserve to know what's going on here," Giroux said.

He added that, while system officials knew the decision to cancel the project would expose them to criticism, it was ultimately the right choice.

Many mistakes were made along the way, Giroux added, but continuing to implement the project would have cost "millions and millions more."

"To stop it and save the taxpayers money was the right thing to do," Giroux said.

Janice Mueller, another member of the Legislative Audit Bureau, said the bureau's IT projects report found themes of poor planning, monitoring and oversight across Wisconsin.

According to Wade, 81 projects were underway July 1, 2006, and 22 are labeled "high-risk," since they account for more than 92.7 percent of the projected $201 million final cost.

Wade said accurate cost projections were difficult to find since cost estimates and timelines are not updated as projects progress. The 22 "high-risk" projects, she added, should be reassessed.

Several legislators inquired about contract penalties — punishments written into contracts in case a company fails to complete its work in a satisfactory manner.

State Sen. Julie Lassa, D-Stevens Point, said incentives and penalties could both be written into contracts, but said accountability is vital.

"For me, I come down on the heavy-handed penalty side of people when contractors don't do what they say they will do," Lassa said.

Michael Morgan, secretary for the Administration Department, said the department "plans to convene a legal team that will look at the contracts of all these big IT projects … and hopefully come up with recommendations or provisions."

Giroux said there were no penalties issued for contract failures in the UW System's software project.