The failed implementation of Birmingham City Council’s new IT system could cost the taxpayer £90m more than was originally budgeted, auditors have revealed.
The roll-out of the council’s Oracle program, which was designed to streamline payment and HR processes, has seen costs escalate beyond the £19m set aside for the initiative.
A report by auditors Grant Thornton estimates the cost of the failed implementation to be ‘at least £90m in excess of the original budget.’
It also warned that the council was unlikely to have a functioning finance system until 2026 ‘at the earliest.’
A council spokesperson said the report made for ‘difficult reading’ but was an important document that sets out clearly ‘where mistakes have been made’.
The auditors found that the council’s governance arrangements ‘did not adequately support’ good management of the programme.
‘They did not provide effective oversight and challenge or sufficiently identify and manage the risks within the programme for the council,’ the report reads.
Grant Thornton’s report concludes that the council’s IT issues were a ‘contributory factor’ to its financial issues rather than the ‘sole causal factor’.
