Qld Health needs to cut payroll staff: A-G

Queensland Health's payroll woes have improved but the government should look at how it can cut payroll staff to reduce its costs, the state's auditor-general says.

A report by the auditor-general into the government's IT systems has found poor planning and management among some projects in an audit of 14 public sector entities.

Among the departments audited was Queensland Health (QH), following the disastrous introduction of its new payroll system in March 2010 that caused catastrophic errors with staff pay.

The report said the system had now stabilised under a new, localised model where staff are paid from within the district they work, although "actual benefits" had not yet been formally measured.

But it did note the blow-out in staff that the new system required.

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"The new payroll operating model may assist with improving client satisfaction but requires higher staffing costs," the report said.

It said the ratio of payroll staff to process transactions to QH employees was now about 1:90 but had been about 1:160 under the old "Lattice" system.

"The strategic direction of the payroll should continue to be reassessed and complexities addressed over time to decrease the number of staff required to process payroll transactions," it said.

The report also criticised the cost and time blow-outs involved in the introduction of Queensland's new smartcard driver licences.

The new licences will replace laminated cards and store a digital photograph, signature and embedded computer chip for added security.

The report said planning was not adequate for the project that began in 2003 and there was no plan to realise the goals the cards were to meet.

"Consequently, benefits have not been clearly identified, measured and monitored," it said.

Originally due for rollout by June 2009, the cards are now expected to be in place by late 2011 at a cost of $148.3 million.

The report also warned network security should be improved across government systems given the risks associated with internet hacking and constant advancements in technology.

Opposition transport spokesman Scott Emerson said the cost of the licence project had soared from an original costing of $84 million in 2009.

The licences will now cost $150 - more than double what had been projected - for a five-year licence because of the government's mismanagement, Mr Emerson said.

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