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RALEIGH, NC (AP) — An audit of the North Carolina Department of Health and Human Services says it has failed to fully test a new $484 million computer system scheduled to begin processing Medicaid claims on July 1.

The report issued by the office of State Auditor Beth Wood raises serious questions about the process used to affirm the complex NCTracks software will be ready to handle the more than $12 billion in Medicaid claims paid by the state each year.

NCTracks is being developed under a contact with Computer Sciences Corporation. The system was originally set to go live in August 2011 at a cost of $265 million.

In a written response, DHHS Secretary Aldona Wos agreed with the audit’s key findings and said the agency is working hard to address the issues.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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