THE ROLE OF CONSULTANTS DURING THE
IMPLEMENTATION OF THE INTEGRATED ACCOUNTS SYSTEM (IAS)
QUESTION 134 AND
CHAIRMAN'S
CLOSING REMARKS
Introduction
1. This note responds to Committee's requests
for details of the specific advice sought from the consultants
employed during the development of the Agency's integrated accounts
system, their contractual terms and the quality of advice provided.
2. The attached table provides a summary of
the information sought with appropriate cross references to the
NAO report.
Contractual Arrangements
3. Throughout the development of the IAS all
contracts were let in accordance with recognised procurement policy,
most being subject to competitive/open tender. In phases 1 and
2 most contracts were based on time and materials with certain
fixed price elements which was general practice at the time. In
phase 3 the main contracts were fixed price.
Key Deliverables and the Quality of Advice Provided
4. During the Accounts Project development and
subsequently, consultants have provided a range of services and
deliverables covering routine application support and maintenance,
technical accountancy support as well as advice on technical implementation.
In addition the Oracle License has provided for fault correction
and software upgrades.
5. The following paragraphs summarise the key
deliverables for each of the phases of the Accounts Project together
with an overview of the quality of the advice provided.
6. The key deliverables from the Price Waterhouse
contract for phase 1 of the Accounts Project were two external
assurance reports and support for user acceptance testing. The
reports included specific recommendations and revised implementation
plans were approved as a result. The support of acceptance testing
overcame a skills shortage at IB and enable comprehensive testing
to be carried out. The quality of the advice was acceptable and
met contract requirements.
7. Advice provided by Oracle consultants in
phase 1 of the Accounts Project included analysis of requirements,
design of system and system tested software. In general the advice
provided was acceptable although due to Oracle staff's inexperience
(see paragraph 19 of the report) there was need to change the
team leader. In recognition of this we received free consultancy
time.
8. The key deliverables from phase 2
of the Accounts Project were provided by Oracle (system tested
software and functional review) and Price Waterhouse (documentation
of accounting policy). The quality of the advice and support provided
was acceptable and met contractual requirements.
9. The independent contractors who supported
phase 1 of the Accounts project provided analysis and design documentation
and system tested software. The quality of advice and support
provided was acceptable and met contract requirements.
10. The programme management advice provided
by Price Waterhouse in the initial stages of Phase 3 included
a series of reports which led to the production of a Statement
of Service Requirement. These were provided in accordance with
contractual requirements and to an acceptable standard.
11. The main implementation of phase 3
was undertaken by KPMG and consisted of a technical implementation
and change management consultancy. The deliverables from the technical
implementation were analysis, design, system tested software and
procedures. The deliverables from the change management consultancy
were a communications strategy, training strategies and a review
of the Finance Division organisation. The quality of the advice
and support provided was acceptable and met contractual requirements.
However, with our agreement the completion of some software remained
outstanding, as result of which we received a financial settlement
at the end of the contract. It is now clear that reconciliations
necessary to manage the integrated system were underestimated
by the KPMG Change Management team and ourselves.
12. The analysis, design and delivery of system
tested interface software by Sherwood and KPMG was acceptable
and met contract requirements.
13. The application support provided by the
Data Sciences and IBM Global Services for phases 1, 2 and 3 covering
fault reports and change requests was acceptable and met contract
requirements.
14. The Accounts Receivable study conducted
by IBM required a review of processes to establish whether system
or procedural faults existed. The advice provided was acceptable
and met contractual requirements.
15. The advice by KPMG in a contract commencing
October 1997 (paragraphs 27-28 of the report) is still ongoing.
Its deliverables consist of a reconciliation strategy, a series
of reports and procedures. To date the work is acceptable and
in accordance with contractual requirements.
16. The work of the independent accountants
is also ongoing and covers reconciled accounts, procedures, training
and control checks. To date the work is acceptable and in accordance
with contractual requirements.
17. The support provided by Oracle under standard
license agreements requires the correction of any software faults
and delivery of software upgrades. Whilst these are provided in
accordance with the license agreement the Agency has experienced
varying levels and quality of support. In order to enhance her
level of service the Agency now has regular meetings with Oracle
to monitor progress on fault corrections and enhancements. Recently
Oracle has set up a Public Sector Customer Satisfaction Team.
Intervention Board
April 1998
Intervention Board—Accounts Project
Contracts
