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The Chronicle of Higher Education
Wednesday, November 7, 2001

U. of Cambridge Report Criticizes Online Accounting System

By KATE GALBRAITH

A computer system that handles accounting at the University of Cambridge has been an expensive, bug-riddled failure, according to a sharply worded report released last week by the university.

The two-part report, submitted to both the university's Audit Committee and its Board of Scrutiny, starkly concludes that the problems with the system, called CAPSA, caused "significant disruption to the working of the university."

CAPSA went live in August 2000 at a cost of over $13-million -- more than double early estimates. Oracle, the principal supplier for CAPSA, and KPMG, the university's external auditor, are both heavily criticized in the report for their roles in delivering a flawed product.

The report details a cascade of managerial and governance lapses that led to the adoption of what it calls a flawed system. It states that the CAPSA situation is "a symptom of a wider problem" and goes on to say: "The CAPSA difficulties have illustrated the lack of clearly defined principles of accountability or of a culture of accountability within the university."

Criticisms include little vetting of potential suppliers, inattention to how much the system would cost, a "weakness in staffing procedures" in the finance department and other departments, a persistent lack of oversight, and an unwillingness to postpone CAPSA's activation despite awareness that serious bugs remained.

KPMG is considering mounting a legal challenge to the report's findings, according to a company spokesman. The University of Cambridge is reportedly considering a lawsuit against some of the companies involved.

CAPSA's highly publicized woes are an embarrassment for the university, which has a reputation as a pioneer in information-technology research in Britain. The area around Cambridge, full of start-up businesses connected with the university, is known as "Silicon Fen."

The university's finance department has little alternative to CAPSA, which remains in place. The report states that while "usability remains poor -- the situation is no longer chaotic and there is a good basis for moving forwards." A full ironing-out of the system, the document says, may take at least two years.

The report was written in separate parts by two professors -- Michael Shattock, a visiting professor at the University of London's Centre for Higher Education Studies, and Anthony Finkelstein, a software-systems specialist at University College London.


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Copyright © 2001 by The Chronicle of Higher Education