Issue - meetings

To consider a report by the Head of Resources regarding the joint procurement of a new financial management system in partnership with South Cambridgeshire District Council and Cambridge City 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 Cabinet considered a report by the Head of Resources (a copy of which is appended in the Minute Book) that was presented in his absence by the Corporate Director (Services) regarding the joint procurement and implementation of a new Financial Management System (FMS) in partnership with the Councils strategic partners, Cambridge City Council (CCC) and South Cambridgeshire District Council (SCDC).

It was reported to the Cabinet that the Councils current FMS had been in operation for a number of years with little improvement or modifications to the system.  Although the system continued to meet basic accounting requirements a new system would provide better financial reporting, improved financial management and support the sharing of financial resources.

Both CCC and SCDC had recently gained approval from their Members for the joint procurement of a new FMS and it was considered that there were distinct advantages for the Council to enter into a joint procurement exercise.

Until the formal procurement had concluded the exact costs of a new FMS were unknown and it was noted that the financial figures contained within the Officer’s report were indicative figures.  CCC had undertaken some preliminary soft market testing earlier in 2015 and the initial costing exercise had indicated a range of possible costs, which ultimately depended upon the system eventually procured.  As both CCC and SCDC were statutory landlords, and the service was financially resource intensive, it was assumed that the Councils implementation and subscription costs would be less as Huntingdonshire District Council did not operate a Housing Revenue Account.

The Cabinet agreed that although the matter had progressed quicker than expected it was an opportune time to enter into a joint procurement exercise with CCC and SCDC and therefore the Cabinet supported the recommendations.  Although all three Councils did not need to operate the same FMS system it was important that each system provided the same standard of information and the main issue was that the Council’s current FMS was no longer fit for purpose.  The new system needed to be versatile and meet the progressing demands of the commercial market.  It was suggested that savings would be generated from areas identified via the new FMS rather than from the IT system itself.

In response to questions the Cabinet were assured that the replacement FMS would meet the required International Financial Reporting Standards.  The savings would be generated from the licence fee of the current FMS and other efficiency savings that the replacement system would deliver.  It was confirmed that financing the replacement FMS would be obtained from the Revenue side of the Special Earmarked Reserve budget and that there were no Minimum Revenue Provision implications as the Council was not borrowing any money.  Whereupon it was,

RESOLVED

That the Cabinet:

i.  Agreed 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.  Approved the release of up to £258,667 to finance the  ...  view the full minutes text for item 41