Auditor-General monitoring Novopay situation

24 January 2013

Auditor-General Lyn Provost is monitoring the problems being experienced with the Ministry of Education’s new payroll system (Novopay).

“Our current priorities around Novopay are completing annual audit work to ensure that schools are able to sign off their payroll reports and their annual financial statements.

“We appreciate that schools may be concerned at the potential for increased audit costs as a result of the Novopay problems. We are working with the Ministry to minimise the workload for schools on their 2012 financial statements, as well as minimising any additional work that auditors have to carry out.

“The Ministry announced last year that it would commission an independent review and last week said that its review is to be brought forward. Therefore, I have decided that it would be premature for this Office to begin an inquiry at the moment. The agencies that are responsible for understanding and fixing the problems should be given a reasonable opportunity to do so.

“I fully appreciate that this is a difficult and stressful time for all involved, and I will be keeping a close eye on developments. If the steps that the Ministry takes do not adequately address the issues, I will reconsider whether there is a role for my Office," Mrs Provost said.

ENDS

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