Bournemouth Borough Council’s Cabinet has ratified its previous decision to outsource the operation of its HR and finance departments to Mouchel after carrying out a risk assessment of the troubled consultant.
The council had originally decided to award the deal on 12 October. The transfer of services will now take place on 1 February.
The council’s Cabinet considered a detailed independent risk assessment based on Mouchel’s audited financial statements for the year ended 31 July 2011 along with an impartial review of the risk management and contract governance arrangements that are already in place.
Council deputy leader and Cabinet member for resources John Beesley said that the reviews acknowledge that all the relevant issues have been “fully faced and dealt with by the Council”. But he added that “robust measures” have been put in place to plan for “a strong exit strategy” in the event of needing to bring services back in house.
The council will retain a £135,000 pot to cover the potential cost of bringing HR and finance back in house should Mouchel fail.
The deal is expected to net the council a £2.2M saving over the life of the 10 year contract.