034/2013 – Renewal of Payroll contract – 10 April 2013

Executive Summary and recommendation:

The existing payroll contract is a part managed contract which commenced on 1 April 2008 with Midland HR on a 3 year + 3 year basis with an ultimate end date of 1 June 2014 utilising the Trent 6 product. The payroll contract has enabled the organisation to meet its statutory payroll obligations as well as benefiting from third party IT system management such as patching for statutory payroll updates and functional issue resolution. North Yorkshire Police do not have an in-house software application for payroll and there is no dedicated functional support role in the Financial Services Directorate to enable the resolution of payroll system issues when they occur. It is recommended that:

• The contract is renewed
• Regional Procurement resources are requested and secured to deliver the contract renewal.

Chief Executive decision under delegated powers: Approved

Signature:

Date: 10 April 2013

Title: Chief Executive

Part 1 – Unrestricted facts and advice to the PCC

Introduction and background

The Payroll Services contract commenced on 1 April 2008 with Midland HR on a 3 year + 3 year basis with an ultimate end date of 1 June 2014 utilising the Trent 6 product. There was a delay to the go-live of the system in April 2008 due to delays involving data release to Midland HR by the outgoing contractor hence the June end date.

Matters for consideration

The move to a Regional Procurement model means that a request for regional resource is required in order to progress the contract renewal.

Other options considered, if any

North Yorkshire Police do not have an in-house software application for payroll and there is no dedicated functional support role in the Financial Services Directorate to enable the resolution of payroll system issues when they occur.

Whilst cognisance is taken of the replacement of the Human Resources system, there are no specific plans to include payroll functionality in the immediate scope of the replacement project. Therefore, in order to maintain the payroll function in the short to medium term the contract renewal process will need to progress to minimise any potential risks to the organisation.

The recommendation within this report does not take account of any possible service provision changes that may be required to assist with the implementation of the Draft Policing and Crime Plan. This paper, and the associated recommendations, consider the necessary requirements if the status quo in terms of overall service provision in this area are maintained.

Contribution to Police and Crime Plan outcomes

The payroll function is a statutory requirement to ensure employees are recompensed in line with contractual obligations under employment law.

Consultations carried out

The contract renewal has been discussed at internal governance forums and guidance received to renew the contract for a period of 2 years with the option to extend for 2 years.

Financial Implications/Value for money

The current annual value of the ongoing payroll contract is £84,000.00 (eighty four thousand pounds) and this cost has been fixed since the inception of the contract in 2008. The procurement process would invite costs from applicants for the provision of this service and at present these are unknown. This value does not include any discrete work packages or implementation costs.

An estimated contract value for 2 years based on current payments would be £168,000.00 (one hundred and sixty eight thousand pounds) rising to £336,000.00 (three hundred and thirty six thousand pounds) should the annual extensions be undertaken.

Financial advice is requested in respect of the budgetary implications and the impact on this decision.

The annual budget for the payroll contract is £91,400. Any increase in charges over and above this amount will result in an unfunded budget overspend.

Legal Implications

There are no legal implications.

Equality Implications

There are no equality implications.

Originating Officer Declaration