Services Australia discloses “delays” on GovERP project

Services
Australia
has
blamed
unspecified
“delays”
for
$60
million
of
planned
work
on
a
SAP-based
common
ERP
system
for
government
being
pushed
back
by
a
year.

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Services Australia discloses "delays" on GovERP project
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Services
Australia
has
blamed
unspecified
“delays”
for
$60
million
of
planned
work
on
a
SAP-based
common
ERP
system
for
government
being
pushed
back
by
a
year.

GovERP
is
designed
to
consolidate
corporate
and
financial
systems
across
the
government’s
six
shared
services
hubs,
replacing
existing
SAP-based
ERP
systems
that
will
reach
end-of-life
by
2025
with
a
single,
modern
S/4
HANA
platform.

Services
Australia

received
two
years
of
funding
in
the
2021
federal
budget

for
GovERP
though
the
amount
was
withheld
at
the
time,
citing
“commercial
sensitivities”.

Appearing
at
senate
estimates
on
Wednesday,
Services
Australia’s
chief
financial
officer
Angela
Diamond
said
that
$60
million
of
work
on
GovERP
that
had
meant
to
be
performed
this
financial
year
had
been
shifted
into
2023-24
instead.

“We’ve
moved
$60
million
from
this
financial
year
into
next
financial
year,”
Diamond
said.

“That
was
for
the
GovERP
project

due
to
some
delays.
Obviously
there’s
a
lot
of
activity
in
trying
to
undertake
this
work.”

Diamond
said
the
funds
had
been
“reprofiled”

meaning

the
timing
of
the
spend
had
been
pushed
out
,
but
that
the
project
would
not
lose
the
funding.

She
suggested
that
chief
information
and
digital
officer
Charles
McHardie
would
know
more
specifics
about
why
the
GovERP
work
had
been
pushed
out.

However,
Western
Australian
senator
Linda
Reynolds,
whose
questions
about
budget
allocations
led
to
the
disclosure
of
the
“reprofiling”
of
GovERP
funds,
suggested
that
Services
Australia
could
provide
any
additional
information
on
the
cause
of
the
delays
at
a
later
date.

Services
Australia’s

most
recent
corporate
plan
[pdf]

had
shown
no
signs
of
any
change
to
the
cadence
of
planned
work
on
the
GovERP
project,
compared
to
the

previous
iteration
of
the
plan.
[pdf]

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