States of Guernsey confirms no financial audit followed £200m Agilisys contract cancellation

No financial audit took place after the States of Guernsey cancelled its £200m contract with IT provider Agilisys in July 2025, the States has revealed. Yahoo reported the correction, which came in a Freedom of Information response.

Agilisys Guernsey is the IT provider whose contract the States ended midway through 2025 following a report critical of its services. The States is Guernsey's government, which moved from the single Agilisys arrangement to a Multi-Vendor Model involving several companies.

How the States Corrected Its Audit Claim

In October 2025, Policy and Resources said a "full financial audit" of the cost impact had been carried out. The States now says the exercise was a "financial review".

"The scope of the financial review undertaken as part of the Transition Project did not meet the criteria of an audit - in reference to the October 2025 Freedom of Information response, the responders mistakenly referred to a 'financial audit' in error," the States said.

The FOI response shows the review had no formal terms of reference, sign-off process, audit report or audit opinion. "The exercise was an internal financial review and was not conducted as an independent or external audit," the States said. It added that the review considered the financial position and impacts of moving from Agilisys to the Multi-Vendor Model.

The £2.8m Staffing Bill Behind the Transition

The FOI response shows the States spends £2.8m on ongoing staffing costs resulting from the move away from Agilisys. Twelve new roles were created within the government at a cost of £928,608 per year.

Policy and Resources also said it had taken on 29 former Agilisys employees, with pay costs of more than £1.9m. "The employment costs of those 29 employees... Had previously formed part of the Agilisys service charge and transferred from non-pay to pay expenditure," the States said.

The disclosure follows other recent States business. On October 21, 2026, the States of Guernsey temporarily took several government and public websites offline as a precaution after international warnings about cyber-security flaws in web software, BBC reported. The UK's Cyber Security Centre said the issue was resolved.

What the FOI Response Leaves Open

The FOI response sets out the scope and staffing costs of the transition but does not include an audit report or opinion. The States has not said whether it will commission an external audit of the cancellation's cost impact.