05/07/2024
Recently, the council issued a memo providing feedback on the Fincore system audit (see Toplist 25 June 2024).
Here is an excerpt about Fincore:
The internal auditors, Ernst and Young (EY), presented an audit report on the Fincore System to the council. The review aimed to determine whether Fincore was suitable as the University's financial system. The report was based on extensive feedback from a diverse group of users. EY informed the council that the system had superior functionality and was more efficient regarding financial controls compared to Protea. However, it was noted that there was significant frustration with the system and that some improvements were necessary. The following concerns were highlighted:
- Better management of user access rights.
- Reporting functionalities.
- System delays in cost allocations.
- Helpdesk capacity.
- Customized training.
- Appointment of a permanent system administrator.
- Processing of subsistence and expense claims.
- Design aspects of various system forms.
- Certain aspects of system security.
NTEU's response follows: The NTEU welcomes the auditors' report which has validated NTEU's position and the concerns raised by staff across the university including key leadership structures.
The issues listed above are widespread, affecting everything from training and support for end-users, right down to the fundamental design and security of the system. Reporting functionalities and processing of claims are basic and essential components of any financial system, yet Fincore reportedly struggles with these as well. We are certain that if the report had indicated Fincore was currently fit for purpose, Council's memo would have unambiguously said so. It is thus regrettable that the memo muddied the waters around what the outcome actually was. Despite the FNGP chair's assertion that the system is "fit for purpose," members are encouraged to form their own opinions after reading the original memo. NTEU would welcome the release of the auditors' report in full as a proactive step in transparent leadership.
It is also noteworthy that the 2023 Financials have been delayed without explanation. Given the past experiences of various university entities with Fincore's poor reporting functionalities, it is reasonable to suspect that Fincore may be a contributing factor. It would have been beneficial if the council's report had clearly stated whether Fincore was implicated. Nevertheless, it is extremely concerning that RU's financials are delayed at a time when we are in financial distress. This too undermines our faith in university leadership.
Additionally, although the memo contains notices or reports received, it lacks details about actual deliberations, decisions, or explanations. Further clarification from the council is needed. A system with this many problems more than two years after its implementation does not inspire confidence. If the system is as effective and efficient as claimed, responsibility for the continued issues, evident since the pilot stage, must be ensured. The decisive leadership needed for this situation appears lacking. According to the King Code, delegation of responsibilities does not absolve the governing body of its accountability. The council must collectively evaluate the information, opinions, recommendations, reports, and statements presented to it. Those decisions and reasons for them must, according to the King Code IV, be communicated. The memo received does not meet this bar.
Overall, there is a poor impression of our financial management: RU financials are delayed, the financial system lacks basic capabilities, continues to incur significant costs, and will require substantial additional investment to become fully effective. The council has not communicated its decisions or demonstrated adequate leadership.
We urge the council to adhere to the King IV standards it has publicly endorsed: make public its decisions and explanations, identify accountable parties and explain how they will be held accountable. Make the auditor's report available to unions, Senate, and Faculties. Provide a transparent budget for addressing the deficiencies in Fincore, including the costs of additional Oracle patches and upgrades, and of employing and assigning staff to roles such as system administrators and helpdesk and the cost of providing customized training.
As a university, we aim to collaborate and utilize the substantial experience and capability of staff in resolving this issue and achieving our collective vision. We, as stakeholders, are essential in building our university.
For those interested in the King IV governance principles, please start here: [King IV Governance Principles](https://www.pwc.co.za/en/publications/king4.html)