The ACT will abandon an uncompleted project to introduce a new human resources management computer system after spending nearly $76 million after a review found it was "deficient" from the start.
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A consultant's review of the project found there was no single person accountable for delivering the new system and overall governance was "deficient" at all levels.
There was "no single source of truth" about the status of the project, the review found.
Special Minister of State Chris Steel said the findings of the review into the human resource information management solution project had identified significant governance issues.
"It is disappointing that the reviews of this long-running project have found that upgrades to the existing HR and payroll systems were not properly scoped at the beginning, which is the approach we are now pursuing at less risk and cost to the territory," Mr Steel said in a statement.
Governance on all technology projects would be strengthened, the government said.
A review of the program completed by Deloitte noted the ACT government had appointed consulting firms Ernst and Young and RXP to work on the project.
Deloitte was appointed in mid-December 2021 to review the program, handing a report to the ACT government that made 34 recommendations, including improvements to governance.
But a second review completed by Geoff Leeper at Yarrabee Consulting found assumptions were made about the need for a new system but not challenged and an incomplete business case had been put forward for budget consideration that included an "overly optimistic" cost estimates and delivery timetable.
Mr Leeper made a series of recommendations that Mr Steel said would inform changes to the way information technology projects are governed across the ACT government.
The program began in 2017 to introduce SAPSuccessFactors to serve as a new human resources and payroll system for ACT government employees, which would replace an older system first introduced in 2005.
The Chief Minister, Treasury and Economic Development Directorate said the project would increase efficiency, improve service delivery and "allow us to take a strategic approach to managing our people".
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SAP, on its website, said the system was used by large private employers including Kmart and Vodafone as well as federal government agencies.
The system is a "powerful cloud HR software that empowers individuals to reach their full potential at work while strengthening the connection of HR across the business", SAP's website said.
The ACT government has conceded delays to introducing the new program were a result of its size and complexity, while resources were also diverted to other areas during the COVID-19 pandemic.
Suppliers had been paid $44.5 million excluding GST to March 31, 2023, while the total cost to government of the program was $75.7 million excluding GST.
The ACT budget, released on Tuesday, said the government would work "to improve payroll and human resource management within the ACT Public Service and revise the implementation approach by ending the HRIMS program and upgrading existing HR and payroll solutions".
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Jasper Lindell
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
