Further delays have hit Birmingham City Council’s disastrous attempt to implement a functioning finance system after it emerged that off-the-shelf software to solve “one of the fundamental problems” with the beleaguered Oracle implementation has been put back.
In a council audit committee meeting last week, an external auditor said the bank reconciliation system (BRS) within the current Oracle implementation “just posted things all over the place.”
The council – Europe’s largest local authority – went live with an Oracle Fusion ERP, finance, and HR system in April 2022 and has since failed to produce auditable accounts or fully understand its financial position. Custom code in the BRS was highlighted as one of the culprits.
In May 2024, the council decided to buy off-the-shelf software to resolve the BRS customization issues from the initial Oracle deployment, opting for a CivicaPay solution, which it said would “go live no later than March 31, 2025.”
In the council’s audit committee, Mark Stocks, public assurance lead for auditor Grant Thornton, said he had been told to expect the go-live in August. “It’s the same as the ERP system. The cash system is one of the fundamental problems because the way the BRS was set up, it just posted things all over the place. I see the ERP and the cash system as one and the same: you ought to be monitoring both.”
Stocks was responding to a question from Councillor Jamie Scott, an audit committee member, who said he had heard the new income management system had been delayed until September. “Things seem to be almost getting away [from] themselves,” he said.
The delay raises questions about the cost of staff doing manual work to make up for problems with the BRS. In February last year, the council allocated £5.3 million ($6.6 million) in the 2024/25 budget to pay for manual workarounds and backfill to support the release of Oracle subject matter experts.
The Oracle Fusion project to replace an aging SAP system began in October 2019 with an expected budget of £19 million ($23.6 million) and go-live dates of December 2020 and February 2021. Auditors now say the costs may be as high as £130 million ($161 million), and although the new software went live in April 2022, the council is “unlikely to have a fully functioning finance system until at least 2026.”
The council continues to work to make the current system safe and compliant with financial requirements after it missed an auditor deadline to do so in October 2023. It also plans to reimplement Oracle “out-of-the-box” in 2026.
"*" indicates required fields
Software Asset Management is a business practice that involves managing and optimising the life cycle of software within an organisation.
Software asset management is relevant to many facets of a business - take a look at some of the roles that it can form part of the focus of.
Software vendors come in all shape and sizes - all with their own set of licensing models and rules. We take a look at just a few of them.
As a constantly evolving subject, SAM is not without its challenges. We take a look at some of the most common ones.
Wondering what an investment in SAM could do for your business? Fill out a few details and find out what return you could get!
Answer a few questions about your SAM infrastructure & experience, and we'll put together a personalised recommendation for the future.
A simple health check of what's being used across your Office 365 estate in this FREE, Microsoft backed and easy to setup review.
Just like you would with your vehicle each year, get an annual check up of your software asset management programme.
Overwhelmed by the task of documenting the steps for a successful SAM programme? Get the experts in to help!
Concerned your SAM tools aren't covering your whole estate? Or on the look out for an entirely new tool? Get us in to assist.
Not content with covering all things SAM related, we've teamed up with Capital to provide a comprehensive hardware asset management review.
A simple, one-time reconciliation of the software you have deployed versus the licence entitlement you own.
A regularly scheduled analysis of your organisation's estate, specifically adapted to your needs and budget.
A full appraisal of your Microsoft 365 setup and how best to optimise it through automated recommendations.
An add-on to our SAMplicity One, MOT and Plus offerings, quickly diagnose your ability to migrate your resources to the cloud.
In collaboration with law firm Addleshaw Goddard, ensure the legality of your SAM programme and get assistance with any contract disputes.
Available as standard with SAMplicity Plus, ensure you're compliant if you're unexpectedly audited by a vendor.
We've teamed up with some of the forefront experts in licensing knowledge so you can teach yourself to be an expert too.
Stumped by the continually evolving complexities of SAM? Join us for one of our comprehensive courses, either in-person or online.
It’s chock full of useful advice, exclusive events and interesting articles. Don’t miss out!