http://au.news.yahoo.com/thewest/a/-/breaking/13884738/payroll-bungle-to-cost-ql...Queensland Health's failed payroll system will cost the state more than $1.2 billion by 2017, an audit has revealed.But Health Minister Lawrence Springborg told parliament on Wednesday the figure KPMG reported was a "bare-bones price".
It failed to provide for contingency plans for further repairs that could push the bill up by more than 30 per cent, he said.
It also did not take into account fringe benefits tax costs associated with overpayments to Queensland Health staff.
And there was also no provision for necessary upgrades or reimplementation of the system before licensed support ends in 2014/15.
The report, tabled in parliament on Wednesday, showed just over $1 billion of the projected $1.253 billion cost related to day-to-day operation, to ensure Queensland Health staff were paid fortnightly.
The rest, about $245.5 million, is to be spent fixing key flaws with the system and an analysis to determine a longer-term solution.
The report showed the former government, which never conducted a business case, estimated the payroll system to cost about $530 million less to implement and maintain.
The surge in costs was attributed to extra staff required to operate the system, increased demand to fix repairs and the complexity of Queensland Health's award conditions and pay combinations.
About 1000 payroll staff had to make 200,000 manual processes to ensure about $250 million was paid to Queensland Health's 85,000 staff each fortnight, the report showed.
Mr Springborg said the "abomination" was due to the former Labor government's "reckless management".
"This is a damning report," Mr Springborg said.
"It is a shocking citation of failure and bad faith by the former government."
The March 2010 rollout of the new payroll system led to thousands of workers being overpaid, underpaid, or not paid at all.
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