Department spent €10.2m over six years posting payslips to teachers 

The issue surrounding the payslip expenditure was first discussed at the Department of Education’s appearance at PAC last October, where it emerged €13.8m had been spent by the body on postal and telecommunication services over those six years. File picture

The Department of Education has agreed that it must develop a new payroll system “as a matter of urgency” after it emerged it spent €10.2m on paper payslips in six years.

A briefing note from the Department of Public Expenditure and Reform to the Public Accounts Committee said the Department of Education “accepts” that a new, electronic system was required, as recommended by the committee.

It adds the department will provide the PAC with a “detailed timeline” for the implementation of that recommendation by the third quarter of 2021, with progress on the matter to be communicated to the committee on an annual basis.

The issue surrounding the payslip expenditure was first discussed at the Department of Education’s appearance at PAC last October, where it emerged €13.8m had been spent by the body on postal and telecommunication services over those six years.

The €10.2m was spent on posting payslips to roughly 130,000 members of school staff on a fortnightly basis.

The department estimated at the time that any upgrade of its existing payroll infrastructure would take “approximately three to four years”.

In its review of the situation, the PAC expressed itself “unsatisfied”, stating it was of the opinion that “a modern State organisation could expend approximately €1.7m annually in a more productive manner than posting payslips”.

Value for money

It said it was aware that any upgrade of the systems currently in place would require significant up-front capital expenditure, but that this would “represent value for money for the State in the long-term”.

The department had said it currently operates four separate payroll systems with a range of complex circumstances “that need to be taken into account before any system upgrade takes place”.

The Department of Public Expenditure and Reform, meanwhile, said an “interim upgrade” of the existing payroll is currently “in progress”, and would be completed this year.

Previously the Department of Education had said it would look to “explore” the possibility of introducing an electronic system once that upgrade is complete.

According to the Department of Public Expenditure and Reform, the feasibility of introducing self-service functionality and online payslips is being “assessed as a matter of priority”.

“A range of issues need to be considered in providing such functionality, including the security and safeguarding of personal information,” the department said. “The department will keep the committee appraised of progress on an annual basis.” 

Temporary school accommodation

Separately, the department accepted a recommendation that it review all temporary and prefabricated school accommodation for schools in operation for more than five years in order to prioritise the construction of school premises, with that review to be completed in 2021. 

Expenditure on such accommodation increased by €3.3m in the 12 months to the end of 2019 at a total of €26.2m.

The PAC had also requested that “additional clarity and transparency” be provided regarding the reporting of legal costs of departments if possible, a recommendation also accepted by DPER.

Legal costs for the education sector, including settlements, totalled €2.3m in 2018.