Issue - meetings

REPORT OF SERVICE DIRECTOR - RESOURCES

To inform Council of the expected benefits and costs of the new finance software system.

RESOLVED: That Council approved a capital budget allocation in 2023/24 of £200k for the initial work to develop and implement the new finance software system.

REASON FOR DECISION: A new finance system was expected to lead to more efficient processes and a better customer experience. A new finance system would incur up-front installation and development costs. These costs can be charged to capital but require a capital budget. Additions to the capital programme above £50k require approval by Full Council.

Audio recording – 53 minutes 10 seconds

Councillor Ian Albert, Executive Member for Finance and IT, presented the report ‘Financial Systems Budget’ and advised that:

·       This was a request to approve a £200K budget to purchase an IT System that would be cost effective and allow the Council to have an accurate financial system, which was especially important given the reported overspend at Hertfordshire County Council this week.

·       A tender exercise had taken place to identify the best value option.

·       The new system would provide efficiency improvements and would improve the production of our accounts.

·       This report had been approved by Cabinet and now required Full Council approval.

·       The new system would produce cost savings that would recover the revenue costs and revenue impact of the purchase.

·       This was an off the shelf package with some customisations.

·       Once purchased, work would commence with Officers and Members to ensure that the benefits were achieved.

·       The report highlighted the alternative options explored, including extending the current contract.

·       The new system included Cloud based technology.

Councillor Elizabeth Dennis, Leader of the Council presented the referral from Cabinet of the ‘Financial Systems Budget’ and advised that Cabinet had considered this item and fully supported the expenditure.

Councillor Terry Hone raised a point of clarification that the overspend at the County Council referred to expected revenue and not capital expenditure, as was suggested by Councillor Albert. 

The following Members asked questions:

·       Councillor Ralph Muncer

·       Councillor Adam Compton

In response to questions, Councillor Ian Albert stated that:

·       The efficiency savings would be achieved over the 10-year lifetime of the system.

·       The request to review financial data on the existing systems for errors ahead of budget setting was noted.

·       Any service improvements that occurred during implementation could be noted.  

Councillor Ian Albert proposed and Councillor Elizabeth Dennis seconded and, following a vote, it was:

RESOLVED: That Council approved a capital budget allocation in 2023/24 of £200k for the initial work to develop and implement the new finance software system.

REASON FOR DECISION: A new finance system was expected to lead to more efficient processes and a better customer experience. A new finance system would incur up-front installation and development costs. These costs can be charged to capital but require a capital budget. Additions to the capital programme above £50k required approval by Full Council.