The federal education department has written off nearly $10 million from its failed national apprenticeship management IT system.

The Australian Apprenticeship Management System (AAMS) has become a $9.7 million impairment after it was dumped by the department in May.

The system was scrapped after a review that found evidence of systemic project weaknesses and declared the AAMS “not fit for purpose”.

The system was designed to replace the sixteen-year-old Training and Youth Management System (TYIMS), which had been under pressure for several years.

Replacing the former paper-based process was intended deliver $93 million worth of savings, but there were critical defects with the NEC-built system.

The total cost of the project reportedly ballooned to $24.1 million –$10.5 million of which was paid out the system designer NEC.

The department has told reporters that “only part of [the $10.5 million paid to NEC] was capitalised and was reflected in the $9.7 million write-down”.

“The contract between NEC and the department was terminated on the terms agreed between the parties,” a spokesperson said.

“The department is developing a new business case for the replacement of the Training and Youth Management System (TYIMS) and will assess reused opportunities as part of the work.”