It recommended a revised project budget be developed and given to the Department of Health. 

The new system is expected to bring financial and pay systems across the HSE and associated organisations together.

In 2015, a proposed budget of €132m included €82m for capital costs and €50m in recurrent spending for system support over 11 years.

By June of this year “around €136 million has been spent on the IFMS project”, the audit found.

This included €60.2m in capital costs, €50.75m projected in-house current expenditure, and €24.8m in current software and operating costs.

It said an additional €40m was allocated this year to accelerate the rollout. This means the total approved budget to date is €172m.

The audit team said this was likely to rise, as the final cost for full deployment has not been developed.

It also notes a report from the HSE saying further funding will be needed from 2026 onwards.

In addition, since 2021, an extra annual funding allocation of €10m has been made for HSE/financial management system pay and overhead costs.

The audit also says while a key aim is improved financial reporting, this has not yet been the case.

In terms of delays, the audit cited issues such as the covid-19 pandemic, industrial action by trade union Fórsa which led to a ‘go-slow’ in some areas, the original systems integrator procurement and related design challenges; the HSE cyberattack and the subsequent change in systems integrator.

The HSE defended progress made since last year, saying greater support and time was now available to help with the complex changeover.