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Novopay review signals further spending on education payroll system

Novopay review signals further spending on education payroll system

Ministry of Education said it plans to enhance, not replace, Novopay.

More investment is needed to update, improve and extend the life of Novopay, Ministry of Education said

More investment is needed to update, improve and extend the life of Novopay, Ministry of Education said

Credit: Supplied

The Ministry of Education is undertaking a strategic review of the infamous education payroll system, Novopay.

Details of the scope or budget for the project are unclear, but it is being monitored by Treasury as part of its major projects performance monitoring programme.

The Ministry of Education told Reseller News it is committed to providing a stable and efficient payroll system for schools. 

"Much progress has been made on this but further investment is required to update and improve the service provided to schools," Kim Shannon, head of education infrastructure service, said.

"We are not replacing Novopay. This investment will extend the life of the current payroll service and provide an enhanced user-friendly, school centered online system."

Novopay is a web-based system using software from Australian vendor Talent2, which was selected to replace the previous payroll system provided by Datacom.

The heavily customised system went live in August 2012 producing thousands of errors and leaving many unpaid. Unravelling over and under payments became a major focus of remediation.

At least $45 million has already been spent to fix the Novopay system on top of the original ten-year contract price of $182 million.

While the system now appears to be more stable and accurate, errors persist. Last year in a major privacy breach pay details of hundreds of staff were sent to the wrong schools.

The ministry and the vendor parted ways in 2014 after agreeing a settlement package of up to $22 million. The software is now supported by government-owned company Education Payroll.

Talent2 rebranded its business as Ascender in 2015.

Reseller News has requested further information about the project under the official information Act.



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