Friday, August 25, 2017

The Path

A state audit released Thursday rips the University of California again — this time for bungling a plan to streamline its payroll systems.

The payroll overhaul will cost UC nearly $1 billion — triple the expected cost — and will take five years longer than planned, says the audit that is the third deep dive into UC finances this year. The audit of the “UCPath” payroll system also faults the UC president’s office for failing to fully inform the governing Board of Regents about problems with the overhaul, which was supposed to save UC $753 million. Those savings — mainly from reduced staff — “will not materialize,” the audit says.

Independent State Auditor Elaine Howle agreed that the university has no choice but to replace its 11 aged, problem-plagued systems for dealing with payroll and human resources. Those systems were blamed for UC’s botched overtime payments to nearly 14,000 employees over three years, a problem that forced UC in May to agree to pay $1.3 million in back wages and damages.

The transformation to a new payroll system began in 2011 and was expected to be done in 2014. The announced price tag: $306 million. The audit determined it will take until mid-2019 and cost at least $942 million, although UC maintains it will be $504 million...

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