To consider a progress report on the Herefordshire Connects Programme.

The Committee considered the progress of the Herefordshire Connects Programme. 

The Interim Deputy Chief Executive introduced the update on developments in the programme since the major decisions taken by Cabinet on 31 July.

It was noted that Joint Management Team (JMT) recommendations to Cabinet arising from the JMT Connects Programme Board’s evaluation and system selection process would be presented in a report to Cabinet on 20 November 2008.  This included financial considerations consistent with the Connects reports to Strategic Monitoring Committee and Cabinet in July 2008.

The Connects Programme Manager presented the report, outlining progress in evaluating systems for Environment and Regeneration Services (including a new system for Planning Services); a new system for Performance Management and Risk Management; a tool set that would be used to integrate Council and PCT systems; and an Integrated Support Services system (a ‘back office’ system to cover Human Resources, Payroll, Finance and Procurement).  He noted that Cabinet was to be asked to approve the selection of the preferred systems on 20 November.

The Interim Deputy Chief Executive emphasised that the financial model had been checked by Capita and the processes followed had complied with procurement policy and project management best practice.  Internal Audit had been involved at each stage to ensure compliance.

In the ensuing discussion the following principal points were made:

·         Questioned about the financial model the Interim Deputy Chief Executive said that great care had been taken to ensure consistency with the reports to the Committee and to Cabinet in July.  The overall cost reported in July had been £10.387m.  The model now showed a slightly revised cost of £10.196m.  From 2012/13 onwards there were projected annual revenue savings of £5.5m per year.  He added that it was important to remember that the financial benefit was only one aspect of the Programme, improved service delivery being another.

·         In response to a question about the sustainability of the new systems the Connects Programme Manager said that the commercial assessment had examined ongoing support costs.  All future expenditure on upgrades was included in the annual maintenance charge.  Capita had been asked to look at this aspect and had confirmed that the arrangements were sound for the 5-10 year life of the system.

·         The Interim Deputy Chief Executive said that the programme was on course to deliver financial benefits in 2009/10.  One of the most important elements was the work with Deloitte to ensure that staff in ICT services developed the skills to ensure that the systems would be sustainable.  The work of ICT staff would change and they would be managing a small number of specialist systems.  The work to ensure that the skills were in place to deliver the benefits of the systems complemented the work to test the financial model.

·         It was cautioned that whilst the programme was necessary other Councils were substantially reducing the projected savings for similar programmes.  The Cabinet Member (Corporate and Customer Services and Human Resources) acknowledged that some Councils had reduced their forecasts but the Council had already undertaken its own reassessment in developing the financial model presented to the Committee and to Cabinet in July.  The Executive had made clear that savings would be removed from budgets and redeployed.

RESOLVED:   That the Committee’s observations on the Herefordshire Connects update be noted.