UC disputes state audit report on new payroll system costs

By Rupan Bharanidaran, Jacob Preal and Madeleine Pauker
The University of California’s plan to update its payroll system will cost millions more than originally estimated and is several years behind schedule, according to a state audit released Thursday.

The audit estimated the UC Payroll, Academic Personnel, Timekeeping and Human Resources project, which seeks to replace campuses’ outdated payroll systems with one processing center, will cost $942 million, triple its originally estimated cost of $306 million. However, the UC maintains that UCPath will only cost $504 million.

Claire Doan, a UC Office of the President spokesperson, said the state audit includes additional costs that should not contribute to the overall cost estimate. In addition to the UC-estimated implementation cost of $504 million, the audit estimates the UC will spend an extra $183 million for UCPath Center operations, $115 million for financing and $140 million for campus implementation.

“We do not agree with (the audit’s $942 million budget estimate),” Doan said. “We primarily look at it as constructive feedback.”

California State Auditor Elaine Howle said the UC originally projected that UCPath would save the university $753 million primarily because of cuts in staff. However, auditors now estimate that the project will have no savings because officials at several campuses they visited said they do not plan to reduce staff.

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[Source]: Daily Bruin