From Rigid Systems to Strategic Control: How Intelligent Monitoring Transformed Capital Planning for the London Borough of Bexley
In effective capital programming, it is essential that local authorities manage their capital program successfully. As a result of current financial pressures and increasingly complex funding patterns, there has been a heightened emphasis placed on the issue of transparency and governance regarding capital programming budgets for councils. In the London Borough of Bexley, improving the capital program review system has been a major priority.
The challenge: a solution is no longer fit for purpose
Similar to most public sector bodies, Bexley was working with a capital monitoring solution, which though evolved over the years, was no longer suited to the requirements of the organisation. Further, it was quite difficult to work with, rigid, and offered a degree of visibility, which, to say the least, was not ideal for making financial decisions. Long-term forecasting was a problem, and being able to trust the data itself became a concern as the programs expanded.
There was a need for easier forecasting updates for budget holders, an improved understanding of cash flow and funding for financial professionals, and enhanced traceability and transparency for the organisation to the capital programming system. It was not only a replacement tool that was required but a better way of doing business.
An enabling brief: simplicity, usability, and transparency
Bexley’s brief for a new solution was very specific and realistic. Any new system was required to be user-friendly and easy to navigate and provide a complete overview of the capital program. However, the system was also required to be supportive of good governance. An audit trail and the ability to monitor changes while they happen were necessary.
Collaboration with Bexley’s finance and support staff allowed Verostone to develop and deliver a Capital Programme Monitoring solution that fully supported these objectives.
A streamlined monthly forecasting process
What this solution centers on are a structured way to facilitate the updating of capital forecasts by business users for the coming year as well as the five years that follow. What this ensures is that the information is kept as up-to-date as possible.
The user-friendly interfaces help the budget controllers navigate through the system effortlessly. This results in the error-free compilation of data. Since the system empowers the users to be responsible for their own forecasting, the system fosters accountability and allows the financial experts to analyse rather than collect data.
Enhanced end-to-end visibility and improved financial acumen
Among the most critical value-for-money aspects created is the full visibility of committed and actual spend and forecasts to support the entire capital programme. The finance team is in a better position to see how projects are performing and understand future demands based on changes in real time.
This solution also allows funding sources to be applied as well as tracked on a period basis, which helps to accurately monitor funding of capital projects. This is fundamental to manage cash flow as well as make sure that funding sources are always aligned with delivery.
Regulatory compliance, auditability, and data integrity
Strong governance remains an essential prerequisite for effective management of capital programs, especially in a public setting. The system comprises an overall audit trail of changes, which can drill down to evidence of approvals. This facilitates traceability of amendments, date of amendments, as well as reasons for amendments.
The tool improves the quality and traceability of the data to enable the institution to make informed decisions based on improved figures reported by the system.
Facilitating adoption and sustainability efforts
It is dependent on people as much as it is on technology. This process has been introduced to around 100 budget holders in the council, ensuring there is a standardized approach to the capital forecasting process. Good processes, designs, and efforts at engaging the users have resulted in successful adoption.
In addition, full knowledge transfer of the solution has been completed during the implementation process, with the ownership of maintenance transferred to the support team at Bexley. This means that the solution will be sustainable, adaptable, and fully integrated into the organisation with minimal dependence on external expertise.
Real-world benefits from day one
With improved visibility and control, the finance team at Bexley is in a better position to clearly understand cash flow and funding requirements as changes occur across the business. This real-time insight enables proactive management of the capital programme, offering early response to emerging risks and opportunities.
Initial feedback from users has indeed been very positive, citing the clarity of the process and how easy the new solution is to use. Most importantly, however-the council now has a solid foundation for managing its capital programme with confidence.
Public Sector Finance Transformation Support
Bexley’s experience shows how focused attention to capital programme monitoring delivers real results. Simplicity and transparency of information are key, but equally, the strength of governance is critical to ensure local authorities improve financial control while empowering teams throughout the organisation.
At Verostone, we work with public sector organisations to design and deliver finance solutions that underpin better outcomes, today and into the future.
Schedule a call with one of our Verostone consultants here to learn how we can assist your organisation in enhancing capital programme visibility, control, and governance.