Report: State To Blame For Payroll System Issue

SACRAMENTO, Calif. (AP) — A new report says California officials failed to properly monitor a $373 million upgrade to the state's outdated payroll system.

The Los Angeles Times says the report, released by a Senate office on Monday, is critical of the state controller's office, which was responsible for the project.

The upgrade, called the 21st Century Project, was stopped in February. The project's contractor, SAP Public Services, was fired after tests showed serious problems.

The state had already spent $254 million on the project, which was five years overdue.

The Times reports state officials are trying to recover up to $135 million from SAP, saying it botched the project.

SAP did not immediately respond to a request for comment. The issue is expected to be settled in court.

Copyright 2013 The Associated Press.