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The Canberra Times
The Canberra Times
Connor Pearce

Report into cost-increase and delays suffers its own cost increase, delays

An independent report into the over-budget and delayed parliamentary expenses management system is itself over-budget and delayed.

In September 2023, big four consultancy Ernst & Young was contracted to conduct a review of the delayed Parliamentary Expense Management System (PEMS) at a cost of $247,930.

But that review has now increased in price by 61 per cent and is months late.

Coalition Senator Jane Hume said the delay was "appalling".

"It is appalling that a review into how a project ran overtime and over budget is now also overdue," she said.

"Surely at this point the Department and the Minister can see how ridiculous they look. If not, I'm sure they'll conduct another six figure review to find out. Eventually."

Coalition Senator Jane Hume has requested a copy of the Ernst & Young report, once it is ready. Picture by Elesa Kurtz

The IT system for parliamentarians and their staff to manage travel, payroll and other expenses has been a longstanding headache and was the subject of a report from the Australian National Audit Office (ANAO), which found a lack of planning led to cost blow outs and delays.

The Finance Department was also unable to assess if the benefits of the system, which replaced a manual process, were being realised.

The system was suspended in November 2022 after a cost blowout and a software upgrade that year left it virtually unworkable.

The system was brought back online just over a year later in December 2023.

Currently, there are still elements of the system which are being rolled out.

A team of eight staff within the Department provide support for the system, including five who are specifically assigned to delivering the remainder of the project.

Elements of the system that are still being worked on include submitting leave applications and international travel processing and reporting.

The deployment of the system received extra funding in the May 2024 budget, with an additional $10 million across the next two financial years.

In July last year, the Finance Department sought an external system auditor for legal, assurance, fraud and risk on the system, after a gateway review found there was no evidence of an assurance plan or activities to ensure the system met the legal requirements.

After EY was appointed to carry out this review, the Department told the audit office this would be delivered in mid-February 2024.

During Senate Estimates in February, first assistant secretary at the Department of Finance Kylie Bryant said the report would be in the next couple of weeks, however in April the contract was extended and increased in value by $153,662 - a 61 per cent increase.

Responding to questions from Senator Hume in Senate Estimates in May, Ms Bryant said there were no "significant red flags" in a draft report that had been shared with the Department and that the delays were due to the "complexity" of the work expenses framework.

"There were over 400 elements that needed to be checked for compliance. That was really the main reason," Ms Bryant said.

"We have received a draft report, and we expect to finalise that over the coming weeks."

The Canberra Times understands that the report, which was requested by the Senate committee, will be provided in the coming months.

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