William Eichler 29 July 2024

Brum council spends £1m on bookkeepers

Brum council spends £1m on bookkeepers  image
Image: Juan Garcia Hinojosa / Shutterstock.com.

Birmingham City Council has been forced to spend £1m on manual bookkeeping after the new Oracle software failed to automate the process.

The city council is facing financial difficulties due in part to the failed implementation of its new £38m accounting system.

Last year the local authority had to hire a manual bookkeeping team to perform emergency cashbook roles.

This team has carried out more than 40,000 hours of manual bookkeeping to maintain day-to-day functions, the Times reports.

A spokesperson for the council said the challenges since the implementation of the new system had been ‘frustrating’.

‘The indicative cost for Oracle work is a high-level estimate based on planning work performed so far and represents a worst-case planning scenario,’ they said.

‘This includes Oracle subscription/licence costs, IT running costs and business running costs as well as the expected costs for re-implementation.

‘We recognise that further work and investment is significant to resolve issues identified, that a properly functioning Finance and HR system is crucial to the effective running of the council.’

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