The failure of a high profile computer project designed to increase Highland Council’s debt recovery is a “major embarrassment”, the local authority’s finance director confessed yesterday.
Derek Yule also apologised for abandonment of the corporate arrears recovery system, which was meant to save thousands of pounds by linking all of the council’s debtors.
He said that it was “important that lessons are learned” from the debacle.
Members of the resources committee were yesterday given details of the project’s failure in October last year – at a cost of £287,565 to the taxpayer.
It was launched two years previously, with the aim of making significant savings.
However “due to successive failings to deliver a system that was fit for purpose”, it was dumped.
The audit report was discussed in private at a meeting of the audit and scrutiny committee in June.
Yesterday was the first time that councillors discussed the issue in public.
Mr Yule told the committee: “It is a major embarrassment to the council and to me personally as the director responsible for the service.”
He added: “It is important to recognise that there were a number of controls in place but on several occasions, even with the judgment of hindsight, the wrong decisions were taken.
“There was not one aspect taken at the level of competency required.”
An internal audit revealed a number of weaknesses in governance, reporting and accountability.
Among the flaws was that a full business case was not provided and there was a failure to report progress and costs.
It is understood that the lead official on the project has since left the local authority.
Mr Yule added: “This is a very poor report and I apologise to the committee for it.”
Councillor Richard Laird said: “I think it is most important that lessons are learned and we do not see a report like this again.”
He praised Mr Yule for his candour in bringing the report to the public committee.
Councillors also agreed that training to be given to councillors and officials on how to scrutinise project management.
*The Press and Journal has been asked to clarify that the system featured in this report is not related in any way to the company Merchant Software or its product, Corporate Arrears Recovery System (CARS).