Agenda item

Officers introduced the Finance Modernisation Programme (FMP) update. The programme had been established to respond to findings from past internal audits and external audits and was designed to address weaknesses in financial management; improve the Oracle system and related processes; strengthen the Council’s capability to manage and understand its financial performance; and provide sustainable, reliable insight into the Council’s financial position.

Officers summarised that Phase 1 centred on strengthening internal basics and addressing previously identified control weaknesses. This included:

Financial Management & Core Controls:

Addressing balance sheet risks; validating accounting transactions; enhancing accuracy of reporting; and improving audit readiness.

Improving Budget Monitoring:

Training delivered to all budget holders; simplified budget?monitoring processes; corrections to pay forecasting and other mis?forecasting issues; and introduction of good?practice standards for monitoring and forecasting.

Reducing Oracle Burden:

Tackling data and access risks; reducing manual admin effort and requisition workload; increasing system availability and reducing errors during monthly resets; and improving user understanding of Oracle.

The strategic vision of the finance function was to build a strong foundation of consistent processes, accurate data, and reliable systems; develop continuous improvement as a cultural norm; move Finance from correcting numbers to interpreting them, offering insight and analysis; to become trusted advisors to support organisational decision?making; and to ensure staff have clear expectations, strong support, career paths, and relevant training.

Current work in Phase 2 included:

Audit Readiness (2025/26):

Continuing work to strengthen controls and processes ahead of the next audit cycle.

Planning, Budgeting & Reporting:

Oracle improvements and a new forecasting system, ensuring staff can access the right reports and rely on them, and strengthened MTFS modelling and forward planning.

Financial Clarity:

Improving strategic insight; and identifying weak areas and shaping support frameworks.

Officers highlighted the importance of clear financial and performance accountability as well as a coherent leadership culture across senior officers, linking financial, performance, HR, and risk responsibilities.

Officers presented a detailed forward plan covering January to June:

Current Period – Foundations:

Included reviewing organisational hierarchies for budget reporting; Corporate Directors validating structures for future monitoring; and ensuring system setup aligned to how services actually manage budgets.

March:

Included reviewing licensing costs and ensuring only staff who required monitoring access were licensed.

April:

Included finalising reporting elements for launch at start of financial year.

May–June (Month 2 Execution)

Included execution of Month 2 budget monitoring in Oracle – the first full cycle of new arrangements (core target of FMP); and tracking return on investment and resolving identified issues.

Officers stressed that success depended on clear communication; trained change champions; business?led training; and avoiding a repeat of past mistakes.

Officers described extensive work on mapping skills across all finance roles and Member learning needs. Oracle changes would require continuous training, and it was important to ensure that new starters were consistently trained. A new framework had been established to strengthen professional capability across the finance function.

Officers outlined current constraints. These included:

Capacity Pressures:

Finance was simultaneously running EFS, audit readiness, budget monitoring reforms, FMP, and the Oracle rebuild.

Concurrent Corporate Change:

Many large corporate programmes running simultaneously required careful sequencing and communication.

Supplier Dependency:

Implementation depends on Mastek, who must support deployment into the live environment.

Budget Holder Accountability:

A critical dependency is strengthening accountability across directorates, not just within Finance.

Change Fatigue:

Previous Oracle experiences created scepticism; robust communications and visible quick wins were needed.

It was summarised that the 2026/27 budget monitoring would be managed through Oracle and start in month 2. There would also be a learning and development framework aligned with finance.

Members asked why the presentation focused heavily on vision rather than tangible updates. Officers responded that Phase 1 results had been included. Phase 2 necessarily involved significant behind?the?scenes technical work.

Members asked if Phase 2 was on track. Officers confirmed it was on track. Workstreams were progressing in accordance with the detailed roadmap and technical elements were being implemented.

Members asked about risk management and mitigations. A detailed FMP risk register was maintained and reviewed regularly with the Leader and Chief Executive. Mitigations were in place for all major risks.

Members stressed the need for a clear narrative in financial reporting, better modelling explanation, and stronger Member development. Officers acknowledged the point and confirmed that member training will be strengthened as part of the organisation?wide development refresh.

RESOLVED: That the update to the Finance Modernisation Programme was noted.