$1m on consultants and Novopay still doesn’t work

Chris Hipkins  |  Thursday, December 20, 2012 - 09:38

The Government spent more than $1,000,000 on consultants as part of the switch over to Novopay including $650,000 on testing of the payroll system, which was completely ignored, says Chris Hipkins.

Teachers have now put up with four months of botched pay days thanks to Novopay, and tomorrow’s big year-end pay is expected to throw up even more anomalies, errors and failures.

“Novopay has been an unmitigated disaster - but it didn’t have to be this way.  The Government spent $650,000 on “User Acceptance Testing,” which showed that less than half of the 731 trial-users felt they were ready for the system to go live.

“But the Education Minister Hekia Parata, and her associate minister Craig Foss, didn’t even ask to see those test results.  They ploughed ahead regardless.

“Why spend $650,000 on testing if you’re not interested in the results?  It’s crazy.

“The Government has poured $30-million into Novopay so far.  That’s a hell of a lot of taxpayer’s money.  You would have thought that the Ministers in charge might have taken their responsibilities more seriously, and at least looked at the testing they shelled out more than half-a-million dollars on.

“Novopay has been an embarrassing and expensive failure.  And it is teachers, support staff, principals and students that are suffering, while taxpayers pick-up the tab for the National Government’s incompetence,” says Chris Hipkins

NOTE: Attached to this email is the relevant pages of the Education Select Committee’s Financial Review of the Ministry of Education covering the Ministry’s responses to the Committee’s questions.

         
   
 

Authentication: Ministry of Education Written Responses to 2011/12 Financial Review Questions - Appendix 1

 

Company

Total Cost

Contract Service Description

Page No.

 

Syfir Wellington

$33,840

HRMIS Payroll Support consulting Services

117

 

Encompass Consulting NZ Ltd

$34,410

Payroll merger

117

 

Project Partners Ltd

$22,000

Datacom payroll negotiations

165

 

Nicky Bonne

$128,280

Business Analyst services - Education Service Payroll, Manager Service Delivery

163

 

RedVespa Consultants Limited

$147,720

Leadership support to Group Manager, Education Workforce and Novopay

163

 

Geraldine Richardson

$8,630

Development - Payroll Subject Matter Expert

166

 

Jennifer Short

$649,998

User Acceptance testing - Payroll Subject Matter Expert

166

 

Margaret Wagstaff

$69,563

Education Service Payroll - Leave Project

166

 

Total

$1,094,441