Agenda item

The Committee is asked to consider the 2022/23 Value for Money Report from the External Auditor Ernst & Young (EY).

40.1     The Committee considered the report from the External Auditor Ernst & Young (EY) (copy appended to the signed minutes).

40.2     Mr Lazarus (EY) introduced the report and commented on the good value for money work that had happened.  The 2022/23 SmartCore position was noted and it was recognised that there was still a lot of work to do.  Recommendations had been given on the reset and the need for good governance arrangements.

40.3     Mr Mathers (EY) commented that the report was positive aside from the noted comments on SmartCore.

40.4     Mrs Eves, Director of Finance and Support Services, highlighted that the report reflected on the 2022/23 SmartCore position and that officers were working to demonstrate the progress that had been made recently.  A draft business case had been prepared which reflected all the lessons learned.  The revised business case would be considered at the Performance and Finance Scrutiny Committee (PFSC) ahead of a decision being taken.  Mrs Eves stressed the importance of discussing with the Systems Implementor the work undertaken to date (valued at £13m) and how this could be utilised in the programme going forward if a decision to proceed was agreed.

40.5     Cllr Montyn, Chairman of PFSC, confirmed that the committee were preparing to scrutinise the business case as soon as it was ready.

40.6     The Committee made comments including those that follow.

•      Sought assurance that the SmartCore issues were bespoke and not systematic of wider problems.  – Mrs Eves explained that the business case needed to demonstrate assurance and that the organisation had addressed and put in place improvements from the lessons learnt and these are reflected in the revised business case.  The concerns on wider issues were noted and it was proposed that Internal Audit will have a role going forward.

•      Raised disappointment that SmartCore was not on the Corporate Risk Register.  – Mrs Eves confirmed that this would be added to the Corporate Risk Register.  Mr Pake, Corporate Risk and Business Planning Manager, confirmed that it had always been considered on directorate level risk registers.  Thorough consideration had been given to risks and the whole project sphere.  The Committee stressed that presence on the risk register was not enough and that it was important to carefully monitor the project. 

•      Queried if the SmartCore experience demonstrated weak Project Management processes across the sector.  – Mrs Eves highlighted the specific complexities of the SmartCore project which had only been realised as the project progressed.  There was now an improved understanding of the requirements, which involved work across the organisation with services and joined up with the programme team.  SmartCore would be considered as part of the quarter one Internal Audit work plan.

•      Highlighted the important of separating business as usual tasks and focus on major projects.  Dedicated resources were required to ensure projects could progress.  – Mrs Eves recognised the concern and agreed that it was not sufficient to add project work to business as usual practices.  Business change practices would be put in place going forwards and adequate resources provided (capacity and skills) to deliver the programme.

•      Queried if the lessons learned were unique to West Sussex or similar to other authorities.  – Mrs Eves reported that following the county council’s officer’s lessons learned exercise, other Oracle (and similar system) users were consulted, with feedback from new users and also established users.  The feedback chimed with the in house lessons learned.  Learning was also being considered for general projects, along with communications and engagement with programme teams involved in other similar cross cutting projects.

•      Queried if there needed to be a specific task force for SmartCore.  – Mrs Eves agreed to look into this.  It was confirmed that the business case was coming to PFSC and that it was important to determine the specific role of each committee.  The Committee stressed that the project timescales should not be amended to fit around meeting dates.  Bespoke meetings should be set up if required.

•      Cllr Hunt proposed inviting the Cabinet Member for Support Services and Economic Development to the next meeting where Oracle was scheduled for discussion.

40.7     Resolved – That the Committee notes the report.