Issue - meetings

Report of the Strategic Director of Housing and Customer Services

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members.

He advised Members that the report asked Cabinet to agree to replace 3 of the 4 finance related systems, approve the funding and delegate authority of the procurement and contract award to the Strategic Director of Housing and Customer Services.

He highlighted that the current finance system had been identified as requiring replacement due to its age and issues with functionality and that the proposed procurement timetable followed the Council’s contract procedure rules. He stated that the project would deliver a wide range of non-financial benefits to all users across the Council, support the journey of the self-sufficiency programme and that a future cashable saving of £20k per annum was anticipated, based on a review of the structure of the Finance team upon implementation of the new system. 

He reminded Members that capital funding for the project was originally agreed as part of setting the capital programme for 2018/19.  However, following soft market testing, it had been acknowledged that a hosted, cloud based system was more likely to deliver the required benefits and savings to the Council, but highlighted Cloud based systems were predominantly treated as an expense and therefore must be funded largely through revenue.

Councillor N J Rushton informed Cabinet that it was therefore proposed that the project was funded through £200k General Fund surplus arising on the 2017/18 financial year and £200k existing reserves with £100k of the original £450k capital provision retained for costs that would meet the definitions of capital expenditure.

It was moved by Councillor N J Rushton, seconded by A V Smith and

RESOLVED THAT:

1.    The replacement of three of the Council’s four finance related systems be agreed.

2.    Authority be delegated to procure and award a contract for replacement ICT systems for finance to the Strategic Director of Housing and Customer Services in consultation with the Portfolio Holder; and

3.    The funding for system replacement from £100k already set aside in the Capital Programme, £200k from the revenue underspend arising on the 2017/18 financial year and £200k from unallocated reserves be approved.

Reason for decision: The level of expenditure in this contract exceeds the authority threshold in the Scheme of Delegation and to ensure the continuity of provision of the finance service to the Council.