Payroll system latest network under fire

Friday, March 16, 2001 | 9:49 a.m.

CARSON CITY -- A new $20 million computer system to handle the state's payroll is "confusing and cumbersome" and is inefficient when performing certain jobs, according to a legislative audit.

Some processes in the new system are more costly and time-consuming than was the old computer network, the audit, which was released Thursday, stated.

This was the latest computer project in state government to come under criticism. There was the state Welfare Division's "Nomads," which was delayed for years and experienced cost overruns. There were also myriad problems in developing systems at the Tax Department and the Wildlife Commission.

The payroll project is part of an overhaul of the state's financial system, where costs are now at $41 million and rising. Development on the payroll system began in 1997.

The auditors said the processes and controls in the new system "need improvement and should be re-evaluated."

Problems, the auditors said, include recording employee time sheets, which is "confusing and cumbersome." What's more, they said, agency payroll reconciliation is difficult, payroll errors occur and the system is vulnerable to unauthorized access.

"Contributing to these problems is a lack of documented procedures related to the system's use," said the examination. "As a result, aspects of the state's payroll system are inefficient and the cost and complexity of some processes have increased when compared to the previous system."

The audit said the new payroll system uses weekly time sheets to record an employee's time rather than biweekly under the old system. "As a result, the flow of paperwork has increased requiring additional staff time to prepare, review and process the additional time sheet.

"There is also the increased cost of the additional time sheet forms, " according to the audit, which stated that the goals of the new system to reduce paperwork have not been met.

Jeanne Greene, director of the state Personnel Department, said she accepted all of the recommendations but added that the auditors were looking at a system that isn't complete. "The system was implemented under a very aggressive time schedule to avoid system failure due to year 2000 issues," she said.

This limit allowed time to develop only the most critical portions of the system. She said she expects it to be completed by 2003. "Many of the tasks outlined in the audit recommendation were already part of the overall project plan and have been completed or are close to completion."

She challenged the finding that the system was not secure. She said her staff and that of the Department of Information Technology "do not believe confidentiality has been compromised at any time. Two levels of security access have always been required for each new user access," Green said in reply to the audit.