Decision details

To outline the case for replacement of the Financial Management System in conjunction with Cambridge City Council and South Cambridgeshire District Council.

The Cabinet:

i.  Agrees the involvement of the Council in the procurement and implementation of a new Financial Management System in partnership with its strategic partners, Cambridge City Council and South Cambridgeshire District Council.

ii.  Approves the release of up to £258,667 to finance the £192,000 capital acquisition and implementation costs and £66,667 first year revenue costs from the Special Earmarked Reserve.

iii.  Delegates final approval, subject to a 10% contingency, to the Head of Resources in consultation with the Executive Portfolio Holder for Resources for the release of the reserve to finance the project.

The joint procurement of a Financial Management System with Cambridge City Council and South Cambridgeshire District Council will enable development of a common accounting platform and practices, and in time the joining of teams in relation to debtors, creditors and cash receipting. Further, a new Financial Management System will improve resilience and introduce more effective financial and budget management processes that are expected to generate savings.

As explained in paragraph 3 of the Officer’s report:

1.  Continue with the current system

2.  Enhance the current system

3.  Procure alone

4.  Procure in collaboration

One-off and ongoing costs that will depend on the replacement Financial Management System chosen and the supplier’s charging model.

As at the start of 2015/16 the Council had an Earmarked Reserve entitled ‘Special Reserve’ totalling £2.5m. Funds will be released from this Reserve to finance the capital acquisition and implementation costs and first year revenue costs of the replacement Financial Management System.