Backlash over Gov refusal to report "financial benefits" of £63m IT upgrade

Monday 17 July 2023

The Government's decision not to produce annual reports on the financial benefits of its £63m IT upgrade – despite concerns that much of the scheme's predicted savings may never materialise – has sparked criticism from the committee responsible for determining whether public funds are being used effectively.

The Public Accounts Committee has also highlighted concerns over the "big bang" approach that saw the new software rolled-out across all departments at the same time - arguing that this was a "considerable risk event".

A total of £3m in savings were attributed to the Integrated Technology Solution (ITS) project, which sought to replace the Government’s disparate finance, HR, inventory and asset management, health and safety and supplier systems and move them onto cloud-based technology

However, the Government's spending watchdog - Comptroller and Auditor General Lynn Pamment - found that there had been "insufficient" focus during the course of the project on quantifying its financial benefits and making sure they come to fruition.

She found that the forecast benefits were now “not expected to begin to be realised until 2026”.

The Government later rejected a recommendation from Ms Pamment to "produce annual reports on benefits realisation from closed programmes to allow transparent reporting on long-term benefit realisation".

In an executive response presented to the States Assembly by the PAC last month, the Government said that "this recommendation cannot be progressed at this time" due to "the current maturity of the organisation, and limited SME resources in this area".

The response noted that "once the ITS programme is complete, a closure report will be prepared", with a target date of January 2024.

Public Accounts Committee chair Lyndsay Feltham.

Addressing the Government's response in a recently published follow up report, the PAC said it was "concerned" that the recommendation had been rejected.

The Committee commented: "Given the significant investment that is being made within the ITS space in the Government of Jersey, the PAC would expect to see clear links between the outcomes of the programme and the initial business cases and objectives which have been set out at the outset of the programme.

"Whilst it is noted that a closure report will be produced at the end of the programme, further consideration is required around how the Government of Jersey highlights the long-term benefits of the programme."

The Committee also pointed out that the the roll-out of the ITS programme "has not been without issues", citing problems with the Connect Finance software earlier this year that resulted in suppliers not being paid on time.

"Whilst this has seemingly been resolved, there is concern over the risk management framework that was used in relation to roll-out of the programme, specifically the ‘big bang’ approach to roll-out where all departments took on the new software at the same time.

"The PAC would highlight that this situation was a considerable risk event and the escalation process in that regard is something it will be seeking further evidence of to ensure any future rollouts of ICT programmes are not affected in the same manner. It would also like assurances that the risks of suppliers not being paid on time have been documented within the corporate risk register."