The government has adopted the accrual based accounting system that is in use by the private sector. Part of the conversion to the new system will entail a valuation of the government's capital assets. The committee noted that FMBS has purchased the capital tangible assets software system to assist the government in completing and maintaining its capital assets reporting process.
Committee members remain concerned that this new software system may result in another PeopleSoft debacle where the government is consistently paying for required upgrades and training for a program that is difficult to use.
The government advised the committee that it has spent $744,000 to date on the capital tangible assets software program and stated that it is a one-time expense. The committee noted that the government requested $500,000 in its 2000-2001 interim appropriation proposal for purchase of the same program. In addition, the government stated then, that the $500,000 "is a one-time initiative", page 3, FMBS, 2000-2001 Interim Appropriation.