Pursuant to Senate Bill 222 of the 1999 Session Laws as passed by the General Assembly, we are submitting this second Interim Report, covering the period January 1, 2000 through December 31, 2000, on the performance audit of the Office of Information Technology Services (ITS) procurement function. This interim report updates the data contained in the first interim report dated February 20, 2001 and identifies additional operational and procedural issues discussed with ITS management.