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Novopay Owes Schools $16 million

11 February 2013

Novopay Owes Schools $16 million

The results of a survey conducted by the New Zealand Principals’ Federation (NZPF) last week shows that 1,030 schools are collectively owed $8,080,070 due to the Novopay shambles which schools have endured for the past six months. Extrapolating that figure to all 2,242 schools brings the total to over $16 million.

‘We have repeatedly warned the Minister and Ministry of Education officials since last September that persistent Novopay mistakes were costing our schools,’ said Philip Harding, NZPF President.

‘Comments that principals made through the survey indicate that their estimated costs from Novopay are conservative, and the real costs could run as high as $20 million,’ said Harding.

‘We are asking that compensation be awarded to schools promptly. No school is in a position to be carrying this sort of debt. Not a cent of it has been accrued through any fault of any school,’ said Harding, ‘and it is time this was publicly acknowledged.’

Other results of the survey showed that 98% of principals have no confidence that Novopay will deliver an efficient payroll within the next twelve months, The 1,030 schools have paid out $5,765,386 from their bulk grants due to Novopay errors and 93% continue to have on-going errors from previous pay rounds still not resolved.


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