Publicly traded Computer Sciences Corp., El Segundo, Calif., one of four lead contractors that each developed a prototype of the National Health Information Network under contract with HHS, announced today that it has discovered significant errors in its accounting for tax liabilities in fiscal years 2000 through 2006, and as a result has delayed filing is annual financial reports with the Securities and Exchange Commission.
In a prepared statement, the company said: The correction of these errors, and other insignificant errors, will result in a cumulative charge of $300 million to $400 million through March 31, 2006. CSC also said its annual report for the fiscal year ended on that date along with the accompanying report of CSCs independent registered accounting firm should no longer be relied upon because of errors in the financial statements.
CSC said it will restate prior periods when it files its annual SEC report, or 10-K, for the fiscal year ended March 30, 2007. The company said it expects that report to be filed by June 13.
In late 2005, HHS awarded $18.6 million in contracts to four consortia to develop prototypes of a future NHIN. CSC, Accenture, IBM Corp. and Northrop Grumman Corp. were the lead contractors for the consortia. They delivered their proposals in January to the American Health Information Community, an IT advisory panel to HHS Secretary Mike Leavitt. -- by Joseph Conn