Agenda item

Officers showed a presentation on the Finance Modernisation Programme (FMP), explaining that the programme had been initiated to improve accounting & control, budget monitoring, Oracle EPM (planning and budgeting tool) and Oracle ERP (main Oracle system). Progress had been made across the four key areas, with significant changes implemented and further improvements planned for the next phase.

Officers reported that the benefits of the programme would be realised by budget holders, the finance function, and the audit process. For budget holders, the changes would affect how they interacted with financial systems and would be supported by targeted training. The finance team expected reduced friction and improved reliability and clarity of financial data, enabling better analysis and forecasting. The audit process would benefit from enhanced transparency and higher quality working papers. Budget submission templates for capital projects for the budget year for 2026/27 had been introduced to enhance consistency.

Next steps included a refresh of Oracle EPM and addressing the backlog of finance system issues.

Members noted that progress had been made, and asked what challenges and risks remained. Officers acknowledged that fixing the system required specialist support, which had been secured. Officers also emphasised the importance of user engagement and training to ensure budget holders understood their responsibilities and could provide robust forecasts. Governance arrangements around the FMP and Oracle systems had been strengthened, with regular monitoring and risk management in place.

Members noted the need for more information regarding threats and barriers to success and requested more information on the struggles encountered and how these were being overcome. Officers noted that future reports could provide a clearer analysis of strengths, weaknesses, opportunities, and threats. It was suggested that Grant Thronton could present to the Committee to offer further insight. This would be discussed with the Chair.

Officers confirmed that Phase One had concluded and that contracting for Phase Two was underway, with a report due to go to Cabinet. It was noted that not all objectives from Phase One had been met, with some deliverables carried forward to Phase Two.

Members requested clarification on the reasons for these shortfalls, the impact on costs and timelines, and the measures in place to ensure successful delivery by March. Officers noted that it was a yearly programme in order to have everything delivered by the end of the budget year. The work was reviewed regularly and changes were made as necessary.

Members referred to the budget monitoring reports scheduled for each Select Committee and noted that the Health & Social Care Select Committee had not received one in November. It was clarified that this had been a decision of the Chair of that Committee, as they would be holding an additional meeting in December.

Questions were asked about the clarity of budget lines and the pace of improvements. Members highlighted the importance of accurate information for decision-making and scrutiny, and sought assurances that issues such as blurred budget lines would be resolved promptly. Officers explained that improvements in transparency and reporting were ongoing.

Questions were asked about reporting to Full Council. Officers outlined the Constitutional arrangements of reporting to Full Council or to Committees. The Audit Committee was considering matters within its Terms of Reference. The budget approval process ended with referral to Full Council.

RESOLVED: That the update to the FMP was noted and the Committee sought clarifications and assurances