Nearly seven years after it came online, a federal audit of the state’s welfare computer system says it has “serious” problems.

Results of the audit of the Colorado Benefits Management System were released late Wednesday.

The system processes eligibility for programs including Medicaid, food stamps and Temporary Assistance to Needy Families. It was blamed for application backlogs after its introduction in September 2004. The audit was started following problems with delayed benefits and crashed computers in 2010.

The Denver Post reports that the state must make changes recommended by the audit or risk losing federal funding.

State Medicaid spokeswoman Joanne Zahora says the state has made “tremendous progress” in determining eligibility since interviews for the audit wrapped up in December.

The state must complete monthly progress reports as it works toward compliance.