Re: Probably not upgradeable
Local government accounting is so different form business accounting that they were mis-sold SAP in the first place. Given the amount of customisation required to get a usable SAP system often requires more man hours than writing a system from scratch the added complexity of Local Government finance and personal requirements only complicates things further.
By requirements stuff like every penny spent has to be traced back to a "resolution of the council" and anyone who voted for the resolution is personally liable for any mis-spending.
As for HR many council officers have legal responsibilities when carrying out there duties (others do not!) and just working out who is allowed to do what can be a nightmare (consider that "what" can involve removing children from a parent and putting them in a care home.)