Agenda item

(To receive a report from Andrew McLean (Chief Commissioning Officer), which provides an update on progress for the potential transition of the Council's Payroll/HR Admin services and Enterprise Resource Planning System)

The Chief Commissioning Officer presented a report which updated the Board on progress for the potential transition of the Council's Payroll/HR Admin Services and Enterprise Resource Planning (ERP) system to Hoople Ltd, via a shared service agreement with Herefordshire Council.

The report focused on the outcome of recent workshops held between the Council and Hoople in July 2018; and the due diligence activities being carried out on the suitability and capability of Hoople Ltd and Herefordshire Council to deliver the service and the direction of travel of the areas reported.

It was noted that the following actions had been carried out to date:

·         The Hoople proposal and the high level project plan had been reviewed.

·         The Payroll specification had been reviewed and updated ready for completion in August

·         Engagement with schools and Lincolnshire Fire and Rescue had been established

·         System rectification design work had been completed, with improvement packages under construction

·         Officers had identified gaps in the provision in terms of how Business World On! currently operated and were concentrating on planning to how best resolve these. There had been dialogue with the relevant trade unions

·         Work had continued on the due diligence of Hoople along with Risk Management.

·         Sovereignty issues with ERP along with issues surrounding the transition of contracts had been identified as possible risks.

·         Officers had identified risks with Serco's Council supply, and were working on a continuity plan to ensure a clean transfer.

·         It was highlighted that a move to Hoople would result in a loss of Sovereignty with regards ERP, meaning the loss of a direct decision making power for the Council. Although there would still be some ability to negotiate and influence, there would be loss of overall power as Herefordshire Council would have the majority of the control. 

·         However, officers felt there was a sense of reassurance that the Hoople system was in use and operating effectively for other local government authorities and parts of the NHS.

Questions and comments from members and officers included the following:

·         One member highlighted that some services had not previously adhered to standard business practice and asked how assurance could be provided to ensure that standards and compliance could be guaranteed. Officers explained that they were challenging the process at an early stage and resolving any issues before technical elements were implemented and any new processes were set up.

·         In response to a question, the Chief Commissioning Officer clarified that as there had been not yet been any formal agreement to transfer to Hoople, the Fire Brigade's Union had not yet been consulted. At this stage, there had only been discussions with those directly affected. 

·         Members were largely concerned with the loss of sovereignty as a result of a transfer to Hoople.

·         Officers clarified that the Council did have sovereignty within the current Serco contract and that should a contract with Hoople be established, there would only be the power to influence decision, rather than having a direct decision making power.

·         Members were assured that the sovereignty issue had been recognised and was firmly on the agenda.

·         It was suggested that the risk around loss of sovereignty would need to be looked at by Internal Audit to investigate the extent of the impact on the Council and mitigation would need to be shown.

·         Although Members acknowledged that Hoople operated with other similar organisations, they were concerned that these organisations were much smaller than Lincolnshire County Council and questioned whether Hoople would have the capacity to take on a much larger organisation. 

RESOLVED

1. That the above comments and concerns be considered by officers

2. That the Board receive a further report to compare and contrast the risks of the contract, prior to the Executive decision being made

11:55am – The meeting adjourned for a short break