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Case Studies

Northern Ireland Social Security Agency (NISSA)

Northern Ireland Social Security Agency

 

The Background

 

The Northern Ireland Social Security Agency (NISSA) main business is to:

  • Assess and pay social security benefits accurately and securely;
  • Give advice and information about these benefits;
  • Handle reviews and appeals;
  • Prevent and detect benefit fraud, prosecute offenders and recover any benefit which has   been paid incorrectly;
  • Recover benefit which has been paid in compensation cases; and
  • Assess people’s financial circumstances if they are applying for legal aid.

The Agency delivers its services to the people of Northern Ireland- with a population of some 1.7 million-and the people living in 3 Districts within London through back-office services on behalf of the Department for Work and Pensions.

 

The Problem

 

In October 2007 (as a result of a cost and technology review) NISSA issued an open invitation to tender for a new reconciliation software solution to handle the processing of approximately 24,000 cheques issued to benefit claiments every week.

Cheques are then presented to a bank, building society or post office and are upon payment returned to NISSA for processing. NISSA captures the encashed cheques with OCR technology and data is loaded onto GiroRec for reconciliation purposes.

The encashed cheques are then reconciled against the cheques issued enabling NISSA to settle with the Alliance and Leicester Commercial Bank.

 

The Requirements

 

The new reconciliation system was required to Match Records Retain Audit trail Provide an exception management process Have the ability to import data Multiple User Capability Be future proofed Have User

Friendly Reporting Utilise Role Based Security Capable of reconciling multi currency transactions Work in a windows 2003 environment/SQL2000 and 2005.

Further the timelines to install train and go live were reasonable but tight.

 

The Solution

 

This was a Public Tender and as such open to all companies large and small. Many expressions of interest were received and then tenders completed. There was a short leet of some 13 companies.

Meetings were held with front runners along with site visits where the project team from NISSA asked the tough questions as one would expect. In conjuction with their consultants for this exercise Delloite Touche the decision was made. AutoRek from API software.

Key reasons for the AutoRek solution included, excellent reference site visits, superior cost ratio in terms of capital spend and on going costs, feature fit and project team capabilty.

 

The Result

 

Implemtation went ahead on time and on budget. Significant ongoing cost savings to NISSA operations has resulted. Indeed the expected ROI should be within 12 months. User feedback contimues to be positive and NISSA are extremely happy with the result and are now looking to exceed their previous service levels

 

Major Health and Life Insurance Company

Issues

 

The client had implemented a new Finance System in a short time scale in a Shared Services Centre on a tight budget. Reconciliations with the legacy administration systems had not been performing properly due to:

  • Inconsistent data mapping
  • No definitions of accounts
  • Rigid charts of accounts
  • Loss of audit trail
  • No sub-ledgers supporting a thin general ledger
  • Legacy system data issues and robustness

 

  • Financial reporting sat at 35 days after month end and was without any "drill down capability" to determine reasons for variances month on month, year on year, division on division or from budget/plan.
  • Operational management information was out of synch and inconsistent with financial information.
  • System fixes and requests required better specification, evaluation and prioritisation.
  • Legacy systems did not always interface and there was a reliance on end user computing for reporting and analysis.

Solutions

 

  • Reconciliations were defined and built for every nominal ledger account in the balance sheet and every bank account in every division - these carried lowest level Management Information.
  • A data warehouse solution was sought to allow drill down from general ledgers into sub-ledgers and operational systems to allow detective and predictive MI on Finance and Operational matters.
  • New separate entities became fully accountable for P&L and Balance Sheets. No accounts were shared.

Benefits

 

  • Fully auditable and explicable numbers
  • Faster MI and Financial results
  • Elimination of root cause accounting error
  • New automated interfaces from legacy systems

 

 
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