Agenda item

(To receive a verbal update in relation to progress made following the implementation of Agresso)

The Committee considered a verbal update from Judith Hetherington Smith (Chief Information and Commissioning Officer) on Agresso.  The verbal update included information on: Payroll; Accounts Payable; Mosaic.

Payroll

Members were reminded that the Agresso system went live on 7 April 2015.  Officers were anticipating some issues with the system, as they had not managed to complete as much testing of the system as initially hoped for.  Officers had a choice between repeating the March payroll through BACS for April 2015 knowing that it would be 100% incorrect owning to the changes to the tax basic allowance, and subsequent corrective measures having to be taken with all employees, or running with Agresso.

Payrolls for April, May and June 2015 had all been undertaken via Agresso.  There had been issues with each payroll.  However, the number of issues was significantly reducing each time.

Members were advised that a very small number of staff had not received any pay as part of the April 2015 payroll.  However, hardship payments were processed.  Some of the other issues had included errors with maternity payments and pension deductions but these had since been addressed.  There were outstanding issues with Trade Union payments but these were being addressed.  Members were assured that the Internal Audit team were currently looking into these issues.

Payments to the Pension Authority were made late and the HM Revenue and Customs were completed manually in April and May 2015.  However, it was hoped that these payments would be automatic for the June payroll.

At this stage in the update, Members were provided with an opportunity to ask questions, where the following points were noted: -

·       99% of the issues were generally caused by the system, not through the operation of the system;

·       Officers were satisfied that Serco were putting in the right level of resources to address the issues;

·       It was noted that Mouchel's Payroll Control Team did not transfer over to Serco until 1 April 2015, with no training on the system owing the terms and conditions within the Mouchel contract not requiring staff to be released for training prior to transfer;

·       Members were assured that the Internal Audit team were looking into the issues;

·       All Members of staff had been asked to contact the Payroll team should they have received an over or underpayment;

·       Members were assured that all of the issues would be looked at in depth once the system was fully operational, without any issues;

Accounts Payable

Members were advised that as there had been a change in process, both process and system were contributing factors to the issues which had been encountered.

The Council had attempted to introduce a 'no purchase order number, no payment' policy.  However, approximately 30% of invoices received had included a purchase order number, leaving approximately 70% without purchase order numbers.  There had been problems with the system in terms of producing purchase orders, which had since been eradicated.  However, for this reason the Council could not enforce its 'no purchase order number, no payment' policy.

There was a backlog in the processing of invoices and it was hoped that this would be cleared by the end of June 2015.  In response to a question, Members were advised that the backlog of invoices could potentially damage its reputation.

A critical invoice process had been implemented to process emergency payments, where necessary.  Members were also advised that the Audit team were currently exploring the extent of duplicate payments.

Members were provided with a further opportunity ask questions, where the following points were noted: -

·         The Council had engaged with suppliers to ensure they understood the implications of the Council's new policy on 'no purchase order number, no payment';

·         The vast majority of duplicate payments had been resolved;

·         The Council's Finance department would not undertake a full budget monitoring exercise until September/October 2015 to allow time for the issues to be resolved;

·         The Council's Finance department had produced a 'Budget Holder Checklist' and members of the team were scheduled to sit down with the 300-400 budget holders to ensure the accounts were accurate;

·         It was suggested that the Committee received information on the section covering the 'end of contract' within the terms and conditions of the Serco contract to provide reassurance to members that the same issues experienced with Mouchel could not be repeated when the contract comes to an end with Serco.

Mosaic

Members were advised that the system did not 'go live' in April 2015 and the implementation date had been put on hold until officers were confident that the system was ready.  It was anticipated that this would be around September 2015. In the meantime, testing of data was continuing.

RESOLVED

(1)  That the verbal update and comments made be noted.

(2)  That a further update on the backlog of contracts be presented to the Committee at its meeting on 20 July 2015.

(3)  That information on the section covering 'end of contract' within the Serco contract be sent to the Committee, for information.