Highland Council debt recovery system 'cost taxpayers thousands'
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DESPERATE failures in Highland Council’s computerised debt-recovery system have cost the tax payer hundreds of thousands of pounds.
The project designed to save time money has forced the council to write-off nearly £300,000.
Derek Yule, the council’s finance director, said setting it up was “the right thing to do” but as with any large investment project, risks were attached.
But Scotland’s taxpayer' alliance, Taxpayer Scotland, said that "this kind of bungling” is totally unacceptable and people in the Highlands will be furious to find out that a system designed to save money has ended up costing hundreds of thousands more.
The Corporate Arrears Recovery System Project was launched in October 2012.
It was designed to bring all the different debts held by the council’s debtors in one computerised system.
The idea was that it would save officers time by allowing them to see at the touch of one button how much money an individual owed on council tax arrears, rent arrears or business rate arrears.
The project costing £235,650 was scrapped last October, two years after it was set up when it finally emerged it was unable to deliver a system that was fit for purpose.
By the time it was wound up, the system had cost the council £287,565 - almost the same figure that councillors cut from this winter’s road gritting budget.
And the failing comes as the council faces a £46 million black hole in its budget.
The full details were initially discussed in private at the June 18 meeting of audit and scrutiny committee, where it is understood Derek Yule was quizzed in detail by councillors
Councillors were angered to hear that they had been kept in the dark about the difficulties with the system.
In his report, Mr Yule admits that “project updates were not being properly reported to the resources committee”.
It is understood that the lead official working on the project has since left the local authority of their own accord. They were not dismissed.
And now, for the first time, the details are being made public, nearly a year after the system was scrapped.
They will be discussed by members of the resources committee in Inverness on Wednesday.
Councillor Richard Laird, who recently took the helm of the audit and scrutiny committee, said it was one of the worst failings that had come to his attention.
“What a disappointing example of taxpayers’ money being wasted,” he said.
“This project should have saved the council money, but has ended up doing the opposite. Lessons must be learned to prevent this from happening again.”
Derek Yule was unavailable for comment yesterday.
In a written statement, he said the software did not become operational and it did not affect actual debt recovery during the life of the project.
He said: “The Corporate Arrears Recovery System Project was aimed at providing a more effective service and corporate approach to debt management.
"The system should have improved debt recovery and increased income to the council. As such, it was the right thing to do, but as with any large investment project, there are risks attached.”
He went on: “The council needs to continue to be innovative to provide effective services and value for money, with appropriate governance measures. Things can go wrong and when they do, it is important to learn the lessons and be open and transparent about these.”
Taxpayer Scotland, an advocacy group set up to “bring the voice of the Scots taxpayer to Holyrood and the British parliament” said the mistake was unacceptable.
A spokesman said: “Taxpayers will be furious that a system designed to save money has ended up costing thousands more. This kind of bungling simply isn’t acceptable when we’re trying to make necessary savings and get the country’s finances back on track.
"This is an appalling catalogue of incompetence. The business case, project design and then the implementation of this system has been a shambles from beginning to end at great cost to local taxpayers. This happens again and again in the public sector despite governance processes that are meant to be followed rigorously.
"The senior management team in Highland Council need to double their efforts to protect taxpayers’ money from being wasted. What an irony that this loss has been incurred on an attempt to recover debt revenue. You couldn’t make it up; accruing yet more losses trying to chase earlier accrued losses.”
