Purpose

To advise Cabinet of the options to ensure business continuity following expiry of the current contract

Decision

Exempt Paragraph 3

Information relating to financial and business affairs of any particular person (including the Authority holding that information)

RESOLVED

That the Cabinet:

a) Instructs officers to commence the procurement process due to the timescales involved.

b) Delegates authority to the Leader of the Council in consultation with the Head of Law & Governance and Head of Corporate Finance to approve the award of the Finance System Replacement contract and subsequent completion of the procurement process.

c) Delegates the negotiation, approval and completion of all relevant documentation, including legal paperwork to the Head of Corporate Finance in consultation with the Head of Law & Governance. (Generic Delegations 2 and 3 will be used to enact this recommendation)

Requests Full Council to approve the addition to the capital programme of the FMS replacement project, and

· this to be funded from capital receipts and earmarked reserves as set out in paragraph 8.1 of report FIN/749, and

· an allocation of a revenue budget as detailed in paragraph 8.1 of report FIN/749 to deliver the project.

Reasons for the Recommendations

a) The current contract for the Council’s Financial Management System (FMS) expires on 31 March 2028. The current supplier has advised that it will not extend the use of the existing system beyond this date. With no feasible way of extending the contract the Council must take action to implement a replacement solution. The report requests the budget to fund a supported, secure and fit-for-purpose FMS which is essential in order to maintain business continuity. The decision will enable the procurement process to be commenced and the contract awarded under delegated authority once the tender process has been concluded. The replacement system is essential to provide the Council with a safe, legal and operational finance platform.

b) As a complex and business-critical system, the replacement FMS will require a substantial implementation programme, with a minimum lead time of 12 months for configuration, testing, data migration, training and deployment.

c) The report considers the threshold for the decision in paragraph 8.4 of report FIN/749. The budget is broken down in paragraph 8.1 of report FIN/749