Tasmania spent $47 million on digital program that failed to deliver intended modules

The Tasmanian government has spent $47 million on a digital transformation program that has failed to deliver any of its intended modules after four years, according to an audit report. Auditor-general Martin Thompson found the program, initially focused on human resources and payroll systems for the Health Department, remained "at risk" and projected total costs could reach $119 million before completion.

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Health's planning, early implementation, and program governance for the HRIS Program was not effective or economical.

The initiative, launched in 2020 as the Human Resource Information System (HRIS) program, was expanded in 2021 to serve all government agencies. However, by 2024, following an external review, responsibility shifted to the Department of Premier and Cabinet (DPAC) and it was rebranded as the Human Resource Transformation Program (HRTP). Thompson stated that the Health Department's planning, early implementation, and governance were "not effective or economical," leading to approximately $47 million being spent without progressing to system testing.

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As the program of work did not progress to system testing, Health was not able to deliver any of the intended HRIS modules.

Key reasons for the failure included the "never finalised" business case and other critical documentation due to scope changes. The project also evolved into an "IT system project" rather than an "organisation change program." Furthermore, the Health Department lacked an adequate communications strategy, providing insufficient briefings to ministers and leaving Parliament uninformed about progress impediments and the decision to expand the program government-wide.

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The business case, and other critical documentation, were 'never finalised'.

While DPAC has since improved governance and planning for the HRTP, Thompson noted that significant issues left unaddressed by the Health Department persist. The business case for HRTP had not been finalized or approved by all stakeholders by March, leading the auditor-general to express uncertainty about the program's success in its current form. DPAC has spent $19.7 million since taking over, with an additional $53.1 million anticipated for completion, bringing the total expected cost to $119.8 million.

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Health did not provide sufficient briefings to Ministers, meaning Parliament was not adequately informed on impediments to progress and the decision made by Cabinet to expand the program to whole-of-government.