Issue - meetings

Report of Executive Director Finance (Interim)

Purpose of report

This report seeks approval for increased capital funding for the replacement of the financial management system following the end of the current contract with Civica.

Recommendations

As part of the budget setting process for 2019/20, the Council approved a capital project to replace the financial management system.  Following the separation of Cherwell and South Northamptonshire Council (SNC), engagement with the market and other councils who have recently replaced their system, the budget requirement has been revised.  Therefore, Executive is recommended to:

1.1           Approve additional capital funding.

1.2           Note the estimated revenue impact.

Resolved

(1)            That additional capital funding for the capital project to replace the financial management system be approved.

(2)            That the estimated revenue impact be noted.

The Executive Director Finance (Interim) submitted a report to seek approval for increased capital funding for the replacement of the financial management system following the end of the current contract with Civica.

Resolved

(1)            That additional capital funding for the capital project to replace the financial management system be approved.

(2)            That the estimated revenue impact be noted.

Reasons

The current initial five-year term of the contract with Civica ends on 31 March 2020.  The Council approved the replacement and the best route is via a full and open tender process to secure a new finance system that will meet the Council’s business needs – initially for a five-year period, but potentially for up to a further five years – possibly providing the finance functionality for the next decade.

Alternative Options

Option 1: Extend the existing contract with Civica for a period of up to five years.  This has been rejected due to the limited functionality being provided by the system and the inability to provide the high-quality financial reporting information identified in our user requirements gathering exercises.