www.spb.sa.gov.au

Procurement Accreditation Document 2Accreditation Assessment Report

Insert public authority name

Date:

Table of Contents

1. BACKGROUND................................................................................................3

2. OBJECTIVE AND SCOPE OF THE REPORT..............................................3

3. ACCREDITATION ASSESSMENT MATRIX...............................................4

4. ACCREDITATION DEVELOPMENT PLAN...............................................29

5. CONCLUSION................................................................................................31

ATTACHMENT ONE – EVIDENCE LOG............................................................32

ATTACHMENT TWO – KEY PERSONNEL INTERVIEWED..........................33

1. BACKGROUNDThis report contains the XXXXX (insert public authority name) accreditation submission to the State Procurement Board (Board). It has been compiled in response to the letter dated XXXX from the Board requiring XXXX (insert public authority name) to complete this Accreditation Assessment Report as a self–assessment and return to the Board by XX XXX 201X.

XXXXX (insert public authority name) have evaluated the procurement capacity and capability for each of the procurement performance categories and supporting principles defined in the Board’s Procurement Accreditation Guideline. The results of this assessment have been documented utilising the Board’s Accreditation Assessment Report.

The report also contains the Lead Reviewer findings following the accreditation review process.

2. OBJECTIVE AND SCOPE OF THE REPORTThe objective of this self-assessment is to demonstrate to the Board that XXXXX (insert public authority name) has clearly defined and implemented appropriate procurement strategies, processes and systems to ensure it effectively manages its procurement operations.

The Board has identified five procurement performance categories, each of which is supported by defined procurement principles. The Accreditation Assessment Report has been completed and provides the following information:

a detailed description of how the public authority fulfils the objective of the procurement principle;

the assessment of capability against the Board’s pre-defined scale; a reference to the development plan where relevant; and a reference to the supporting documentation collated to support the conclusions.

The scale utilised to assess capability is:

Meets expectations (ME) means that the achievement of the principle can be fully demonstrated.

Partially meets expectations (PME) means that the achievement of the principle cannot be fully demonstrated, but there is positive progress towards achieving the principle and the deficiency does not seriously compromise the procurement process.

Does not meet expectations (DNME) means that there is no observable evidence of achievement of the principle.

For every principle where the assessment is PME or DNME, the required developmental actions have been documented in the Development Plan. This Development Plan will describe the required developmental activities, the responsible officer and the planned timeframe for completion.

The scope of this assessment was limited to procurement activities undertaken by XXX (insert public authority name) and reflects the status of procurement governance, processes and resourcing as at XXXX (insert date). Procurement was deemed to include the relevant contract management processes but excluded accounts payable and other finance functions.

3. ACCREDITATION ASSESSMENT MATRIX

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

PERFORMANCE CATEGORY 1: LEADERSHIP AND STRATEGY

This category is concerned with ensuring high level leadership exists and that the profile and influence of procurement is high in the public authority with strategies in place that enable the public authority’s procurement objectives to be achieved.

1.1 The public authority provides clear leadership of the procurement function with high level support by senior management.

Identification of an individual / structure formally designated as responsible for procurement and the position of the individual / structure in the organisation.If there is a procurement function, then there should be a clearly identifiable head of the function with appropriate visibility, seniority and influence amongst senior management.An understanding of the scope of this role, reporting line and limits of authority.An assessment of the visibility and influence of this role in the public authority.Evidence that executive management in general and the CFO/CEO in particular, solicit and follow advice from the head of procurement on relevant issues.Supporting evidence may include: Organisation chart Job and Person Specification/s Procurement Framework document/policy Minutes relating to procurement advice to senior management Executive meeting minutes with procurement attendance Accredited Purchasing Unit membership list which includes senior

executive managers across the public authority

Lead Reviewer Findings

Accreditation Assessment Report Page 4 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

to be completed by lead reviewer after review

1.2 A procurement function / designated personnel are responsible for procurement spend for the public authority.

All expenditure on goods and services is managed or influenced by the procurement function/designated personnel.

The processes for managing procurement spend vary depending upon the type, value and complexity of the expenditure.

Supporting evidence may include: Organisation chart Job and Person Specification/s Procurement Framework document/policy Policies relating to management of ICT, Facilities, Travel etc

procurements

Lead Reviewer Findingsto be completed by lead reviewer after review

1.3 The procurement strategy supports the public authority's strategic priorities and core business objectives.

An approved procurement strategy should be available that is current, regularly updated and relevant to the public authority.

The procurement strategy should include measurable outcomes, responsibilities and activities that are regularly reviewed to support the public authority’s strategic objectives.

Key internal stakeholders should be aware of the procurement strategy.

Realisation of the strategy should be evident in the normal operations (that is, delivery) of the procurement function.

The procurement team should be aware of the public authority’s strategy and demonstrate that it has been used to inform the procurement strategy.

Evidence should exist that the procurement strategy is reviewed and

Accreditation Assessment Report Page 5 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

updated in response to changes in the public authority.

Supporting evidence may include: Annual Procurement Plan Procurement strategy documents Organisational strategy documents with relevant procurement links Communication documents advising key stakeholders of procurement

strategy Accredited Purchasing Unit minutes and documents

Lead Reviewer Findingsto be completed by lead reviewer after review

1.4 Key internal stakeholders have a good understanding of the role of procurement together with its strategy and policies.

The key internal stakeholders and their roles and responsibilities should be clearly identified by the public authority.

Their involvement in procurement should be documented in their job descriptions, if appropriate.

These stakeholders should display a clear understanding of the role of procurement, and the relevant strategies and policies.

Supporting evidence may include: Organisation chart Job and Person Specification/s Procurement Framework document/policy identifying key stakeholders Communication documents advising key stakeholders of procurement

strategy Accredited Purchasing Unit minutes and documents

Lead Reviewer Findings

Accreditation Assessment Report Page 6 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

to be completed by lead reviewer after review

1.5 There is a clear, methodical and comprehensive framework to guide the public authority's procurement operations.

The framework should be documented and include a clear statement from the principal officer they authorise the framework and expect it to be followed diligently by all public authority personnel.

Supporting evidence may include: Procurement Framework document/policy Communication documents advising key stakeholders of procurement

framework Procurement Policy documents practical procedures or guidelines explaining how to follow

procurement policy

Lead Reviewer Findingsto be completed by lead reviewer after review

1.6 A procurement expenditure profile is prepared regularly to enable the identification of uncontracted spend, leveraging and cost saving opportunities.

Regular procurement expenditure profiles are prepared that identify spend by category and uncontracted spend, leveraging and cost saving opportunities by category.

The level of detail may vary depending upon the size of the public authority and scale of procurement.

However, it is expected that the reporting is sufficient to permit executive management to properly assess cost saving opportunities and be able to prioritise procurement projects.

Progress against the expenditure profile is tracked to ensure value for money is achieved.

Supporting evidence may include: Spend analysis (breakdown of procurement spend by category and

Accreditation Assessment Report Page 7 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

supplier) Annual Procurement Plan that includes spend analysis

recommendations recent procurement acquisition strategy documents that relate to

spend analysis recommendations Regular reports on achievement of spend analysis recommendations

Lead Reviewer Findingsto be completed by lead reviewer after review

1.7 A procurement business plan including a forward procurement plan is prepared annually to guide the procurement function.

A documented business plan for staff involved in the procurement function is prepared on at least an annual basis.

This plan will include details of planned procurement activities including estimated expenditure. There should also be evidence that progress against the plan is monitored and measured.

At a minimum a forward procurement plan must be prepared annually.

Supporting evidence may include: annual procurement business plan forward procurement plan Regular reports on achievement of procurement business plans

Lead Reviewer Findingsto be completed by lead reviewer after review

PERFORMANCE CATEGORY 2: ORGANISATION AND PEOPLE

Accreditation Assessment Report Page 8 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

The organisational framework within which procurement operates can have a profound effect on its effectiveness. No procurement operation can be effective unless it has high quality professionals who are continually updating their knowledge and skills and who can promote procurement within their public authority.

2.1 An appropriate organisational structure (centralised, decentralised or centre led) is in place to maximise procurement effectiveness and efficiency.

The organisational structure for procurement should be appropriate to the public authority’s procurement activities and objectives.

The organisational structure for procurement should be clearly documented, including reporting lines and roles and responsibilities of procurement personnel.

If a decentralised model is applied, the public authority should be able to demonstrate a consistent application of policy and procedures across the organisation.

The procurement structure should be clearly understood by internal stakeholders.

Supporting evidence may include: Organisation chart Job and Person Specification/s Reviews of procurement organisational structures and rationale for

existing structure

Lead Reviewer Findingsto be completed by lead reviewer after review

2.2 Specific responsibilities are assigned for key market sectors (category management) where appropriate.

Roles and responsibilities for key market sectors should be clearly documented and understood by internal stakeholders.

Different categories of procurement should be identified and segment owners formally appointed where appropriate.

Supporting evidence may include: Organisation chart

Accreditation Assessment Report Page 9 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

Job and Person Specification/s Contract/Category Management Plans Procurement segmentation analysis defining categories Procurement policies and procedures related to management of

different market sectors

Lead Reviewer Findingsto be completed by lead reviewer after review

2.3 The public authority has people with sufficient procurement capability and skills (including procurement planning, market research, negotiation, contract management, project management and risk management) to ensure effective performance for the public authority’s complexity and expenditure.

The public authority should demonstrate that the resourcing of the procurement function is appropriate for the public authority.

The procurement personnel should possess an appropriate mix of formal qualifications, experience and training in procurement and related fields for the nature and extent of the public authority’s procurement activities.

Supporting evidence may include: Organisation chart Job and Person Specification/s Training plans Training attendance records Document on relevant existing staff qualifications

Lead Reviewer Findingsto be completed by lead reviewer after review

2.4 There is a clear workforce strategy (including effective people management and development processes) in place for resourcing the

There should be evidence that an appropriate workforce strategy exists for procurement that includes an assessment of the staffing complement / skills mix required for the public authority.

Accreditation Assessment Report Page 10 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

procurement function. There should be evidence that the procurement team is operating within clearly understood human resources policies, procedures and guidelines.

Formal job descriptions should be aligned to the actual roles and responsibilities executed by procurement personnel.

There are procedures in place to ensure that procurement personnel receive appropriate training and have an appropriate development plan to ensure they remain competent to perform their role.

Personnel involved in procurement have an adequate performance management plan.

Recruitment processes and procedures are effective in filling vacancies that may occur within acceptable time frames.

Supporting evidence may include: Organisation chart including identified vacant positions List of existing vacancies and length of vacancies over previous 12

months Plan for filling vacancies Job and Person Specification/s Training plans Training attendance recordsLead Reviewer Findingsto be completed by lead reviewer after review

2.5 There is a process in place for ensuring that all staff that have authority to approve procurements have the appropriate capability and skills.

Key personnel involved in approving procurement transactions should be clearly identified.

These personnel should receive adequate training when taking up this role for the first time.

Procurement roles, responsibilities and measurable objectives should be

Accreditation Assessment Report Page 11 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

clearly documented in the relevant job descriptions.

Experience and training in procurement and related fields should be appropriate to fulfil the responsibilities required by their roles.

Supporting evidence may include: Lists of procurement delegations Organisation chart including identified procurement delegates Job and Person Specification/s Training plans Training attendance records

Lead Reviewer Findingsto be completed by lead reviewer after review

PERFORMANCE CATEGORY 3: GOVERNANCE AND PERFORMANCE MANAGEMENT

An effective governance framework is important for effective management, including the establishment of user friendly policies and procedures aligned to State Procurement Board policies and guidelines. Such a framework includes measuring performance and the provision of adequate controls, as well as establishing an effective relationship with the internal audit function.

3.1 The public authority has appropriate governance processes in place to ensure procurement achieves the outcomes required, including a clear and effective system of delegation and authority for procurement.

Governance structures for procurement should be clear, understandable and integrated where possible.

Delegations of authority relevant to procurement should be documented, integrated with other related delegations, consistent with the SPB delegation and kept up to date.

The delegation limits should be known to all internal stakeholders.

Supporting evidence may include: lists of procurement and procurement related delegations Accredited Purchasing Unit terms of reference

Accreditation Assessment Report Page 12 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

Procurement Framework document/policy Documentation related to governance processes

Lead Reviewer Findingsto be completed by lead reviewer after review

3.2 A process is in place to obtain independent assurance over procurement activities.

There should be evidence that procurement processes are subjected to regular review by internal audit, the Auditor General or other independent auditors.

If these reviews have occurred, the reports should be reviewed to understand that type of issues identified (if any) and how management has responded to these issues.

Supporting evidence may include: Internal Audit audit plans and reports Auditor General reports Procurement policies related to assurance Management responses to issues identified

Lead Reviewer Findingsto be completed by lead reviewer after review

3.3 Other public authorities managed under the public authority procurement authority are aligned and managed in an effective and timely manner.

There should be evidence of the delegation and formal adoption of the delegated authority to other public authorities managed under the public authority procurement authority.

There should be evidence that these sub-delegated authorities demonstrate a clear ownership of their delegated authority with, for example, a designated person of appropriate seniority and experience

Accreditation Assessment Report Page 13 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

responsible for procurement in each entity.

The public authority’s procurement function should act as a sponsor / support function for the sub-delegated authorities. There should be evidence of the nature and extent of the formal and informal relationships between the public authority and the sub-delegates.

It is expected that the “parent” procurement authority adopts a leadership role and provide training, staff development and share policies and procedures where appropriate.

Supporting evidence may include: communication with other aligned public authorities procurement policies related to other aligned public authorities procurement delegations for other aligned public authorities correspondence to State Procurement Board re aligning other public

authorities communication with other aligned public authorities re procurement

policies and issues

Lead Reviewer Findingsto be completed by lead reviewer after review

3.4 The procurement risk management process is incorporated into the public authority’s overall risk management process and systems.

The public authority should be able to demonstrate the existence of an enterprise risk management process. It is expected that procurement risks formally form part of the consolidated risk register and are considered in the risk management process.

The procurement function must demonstrate that it is risk aware and applies appropriate risk management techniques. This could include the maintenance of a procurement risk register that is reviewed and updated regularly.

Accreditation Assessment Report Page 14 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

There are appropriate channels for reporting and escalating risks.

The management of risk should flow through the entire procurement process from end to end.

Supporting evidence may include: enterprise wide risk management policies and procedures documentation of procurement risks as part of enterprise wide risk

management process procurement related risk management policies and procedures

Lead Reviewer Findingsto be completed by lead reviewer after review

3.5 Adequate records management frameworks and processes are in place to ensure access to and retrieval of key documents and information.

An appropriate records management framework should be defined and practical steps implemented to ensure that documentation is appropriately indexed, filed and safeguarded.

Backups for key documents should be available and retained off-site.

Supporting evidence may include: records management frameworks and documented processes, policies

and procedures specific procurement related records management processes, policies

and procedures documented processes for ensuring adequate procurement records

management occurs evidence of filing systems for procurement documentation, contracts

etc

Lead Reviewer Findings

Accreditation Assessment Report Page 15 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

to be completed by lead reviewer after review

3.6 Procurement policies, guidelines and templates are standardised and sufficient to meet organisational needs and are updated regularly including when changes are made to State Procurement Board policies and guidelines.

Procurement policies and guidelines should be documented and published in such a manner that all stakeholders in the public authority can access the information easily.

The policies and guidelines should either reference the relevant SPB material or there should be evidence that the SPB requirements have been integrated into them.

The procurement policies and guidelines should support effective organisational decision making, planning and the appropriate allocation of resources.

There should be a process for regularly reviewing and updating the procurement policies and guidelines, including identifying SPB amendments in a timely manner.

There should also be evidence that changes are communicated to affected personnel.

Communications that promote understanding of procurement policies and guidelines and the requirement to comply with the relevant policies and procedures should occur regularly.

Supporting evidence may include: procurement policies and procedures documented processes for regularly reviewing and updating

procurement policies and guidelines, including SPB amendments procurement intranet site access or screen dumps communication documents advising key stakeholders of procurement

policies and procedures and of changes that have occurred

Lead Reviewer Findings

Accreditation Assessment Report Page 16 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

to be completed by lead reviewer after review

3.7 Ethical behaviour standards, probity, accountability and transparency receive prominence in procurement policy documents.

These requirements should be clearly defined in the procurement framework and evident in the day to day activities of the procurement function.

The procurement function must demonstrate consistency and transparency in all interactions with third parties.

The procurement framework should stipulate the circumstances in which an external probity advisor should be consulted / appointed by the public authority.

A fraud prevention policy, fraud risk management framework and plan for procurement are in place.

Confidential reporting channels are available for whistleblowers to report misconduct by public authority personnel.

Supporting evidence may include: procurement policies and procedures related to ethical behaviour

standards, probity, accountability and transparency fraud prevention policies, risk management framework or plan documentation of confidential reporting channels probity plans for major acquisitions

Lead Reviewer Findingsto be completed by lead reviewer after review

3.8 Other public authority policies that support procurement (e.g. fleet, travel and Information Technology standards) are consistent with the

All public authority policies that affect procurement activities should be aligned to the procurement strategy and objectives to ensure that procurement objectives are not unnecessarily compromised by other

Accreditation Assessment Report Page 17 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

procurement framework. criteria.

Supporting evidence may include: procurement policies and procedures fleet, travel, Information Technology and other procurement related

policies and information

Lead Reviewer Findingsto be completed by lead reviewer after review

3.9 Demand management (consumption and compliance) procedures for goods and services expenditure are defined and applied.

Management information systems should provide regular and clear reporting on procurement expenditure across the public authority for the procurement function / personnel responsible for procurement. This information should be stratified by supplier, cost centre, category of expenditure or other relevant metric.

Internal quality / audit processes exist to monitor compliance with the policy framework requirements. This process should include ensuring that contracts are utilised appropriately and contract leakage is minimised.

Communications that promote the requirement to comply with the relevant policies and procedures should occur regularly.

Supporting evidence may include: procurement policies and procedures fleet, travel, Information Technology, printing, stationery and other

procurement related policies and information on how to utilise the contract effectively and efficiently

procurement expenditure information that enables tracking of contract usage to ensure effective use

contract management plans policies and procedures to manage and track contract leakage

Accreditation Assessment Report Page 18 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

communications that promote the requirement to comply with the relevant policies and procedures

Lead Reviewer Findingsto be completed by lead reviewer after review

3.10

Complex, high value procurements are well managed and the public authority has a process for considering procurement options for these, especially early in the planning phase.

The process for defining, identifying and managing complex high value procurements should be documented and there should be clear evidence that it is being applied by the public authority.

There are processes and procedures that facilitate early involvement of procurement in major acquisitions, and there is a clear message from senior management that this involvement is necessary.

For major procurements there is an effective procurement project process in place covering the entire procurement.

Complex, high value procurements should be resourced appropriately with the involvement of key internal stakeholders and governance structures.

Key projects where procurement has an important role to play should have representation from the procurement function.

The need for specialist advice and input should be considered.

Supporting evidence may include: list of complex, high value procurements for previous 24 months acquisition plans for complex, high value procurements processes and procedures that facilitate early involvement of

procurement in major acquisitions documented governance structures for major procurements including

early and ongoing involvement of procurement

Lead Reviewer Findings

Accreditation Assessment Report Page 19 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

to be completed by lead reviewer after review

3.11

Performance measures are developed and monitored to ensure continuous improvement of the procurement function.

There should be evidence that appropriate performance measures for the procurement function have been developed.

Performance should be measured against defined performance measures and monitored by senior management.

Continuous improvement strategies are developed based on performance measures.

The procurement function can demonstrate that they are adding value to the public authority by demonstrating, for example, quality measures, value for money initiatives or sustainability outcomes.

Supporting evidence may include: list of utilised performance measures procurement performance reports documentation of continuous improvement strategies documented implementation of quality measures, value for money

initiatives or sustainability by procurement function

Lead Reviewer Findingsto be completed by lead reviewer after review

PERFORMANCE CATEGORY 4: PROCESSES AND SYSTEMS

Appropriate processes and systems are in place to ensure that procurement activities are efficient and effective. They also contribute to maintaining an appropriate internal control environment

4.1 There are efficient and robust systems and processes to support procurement activity including

The public authority utilises effective processes and systems appropriate to the size of the organisation and the scale and extent of their current and

Accreditation Assessment Report Page 20 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

purchasing, sourcing and contract management.

anticipated procurement activities.

Processes should be standardised as far as possible and integrated into an end to end process. Processes may vary for different types of procurement but the required procurement policies and standards should be integrated into business processes and systems to ensure compliance and consistent application.

The public authority demonstrates an appropriate balance between efficiency, effectiveness and internal control in their processes and systems.

The public authority should demonstrate an appropriate use of technology in its procurement processes. This should include illustrating how integration is achieved between the operational systems and financial systems.

Finance systems should support provision of appropriate management information to the procurement function.

There are defined processes for measuring and reporting on procurement and contract management performance with the objective of improving this performance year by year.

Supporting evidence may include: information on purchasing, sourcing and contract management

systems utilised by the public authority procurement process documentation procurement process documentation/models/flow charts

Lead Reviewer Findingsto be completed by lead reviewer after review

4.2 There are rigorous quality processes The public authority has defined and implemented an appropriate project

Accreditation Assessment Report Page 21 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

for developing and managing category/commodity/project strategies for significant procurement spend within the public authority.

management strategy and methodology for managing procurements defined as complex and high value.

Standard commodity procurement is managed in a collaborative manner across the public authority or is centralised.

Supporting evidence may include: documentation of project management approach project management plans for complex and high value procurements category/commodity based acquisition plans or procurement strategy

documents

Lead Reviewer Findingsto be completed by lead reviewer after review

4.3 Quality outcomes of environmental sustainability are sought within the procurement framework.

Environmental sustainability is integrated into the procurement framework and the required outcomes achieved.

Procurement should at least demonstrate compliance with minimum environmental standards and acquisition of goods at a higher standard should be achieved if possible.

Environmental sustainability should be incorporated into disposal processes and procedures.

Supporting evidence may include: Procurement Framework document/policy sustainability related procurement policies and procedures disposal policies and procedures sustainability plans acquisition plans and purchase recommendations with major

sustainability focus

Accreditation Assessment Report Page 22 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

Lead Reviewer Findingsto be completed by lead reviewer after review

4.4 Procurement structures and people are integrated into the overall procurement and financial management processes to ensure end-to-end process effectiveness and oversight.

The public authority is able to demonstrate that the procurem ent function is integrated into the overall procure to pay chain and there is meaningful collaboration between teams throughout the process.

Operational systems that manage procurement are integrated into the public authority’s financial systems.

Supporting evidence may include: Procurement Framework document/policy Organisation chart procure to pay/purchasing policies and procedures internal audit reports that validate compliance purchase card policies and guidance

Lead Reviewer Findingsto be completed by lead reviewer after review

4.5 Post sourcing reviews take place for significant procurements to identify lessons to be learned from the procurement process.

Systematic processes for undertaking post sourcing reviews for significant procurements are documented by the public authority.

Post sourcing reviews should be retained and lessons learnt from post sourcing reviews utilised to improve the procurement process.

Supporting evidence may include: documented post sourcing reviews policies and procedures for undertaking post sourcing reviews documented continuous improvements based on lessons learnt

Accreditation Assessment Report Page 23 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

Lead Reviewer Findingsto be completed by lead reviewer after review

4.6 Post contract reviews take place to identify lessons to be learned from the contract and to determine whether planned benefits and value for money were achieved.

Systematic processes for undertaking post contract reviews for significant procurements are documented by the public authority.

The contract management process should include performance indicators that enable supplier performance to be measured in an objective manner.

Post contract reviews should be retained and lessons learnt from post contract reviews utilised to improve the procurement process.

It is expected that this documentation will include evidence of improvements being identified and incorporated into contract management processes and procedures by management. This process would include improvements being incorporated into contract renewals.

Supporting evidence may include: documented post contract reviews policies and procedures for undertaking post contract reviews acquisition plans for contract renewals utilising lessons learnt from

past contract reviews

Lead Reviewer Findingsto be completed by lead reviewer after review

4.7 Adequate and timely research is undertaken to ensure required goods and services are appropriately specified.

There should be a clear understanding by the procurement function of the relevant market segments and the importance of clearly specifying requirements in an effective manner.

The requirement for appropriate research is documented in policies and procedures and that it has been conducted for relevant procurements

Accreditation Assessment Report Page 24 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

including encouraging discussions with potential suppliers.

The market could be involved in the procurement process through various market research methods, for example, a “Request for Information” process or pre-tender briefing before the actual procurement process commences.

Supporting evidence may include: policies and procedures on developing specifications acquisition plans for major procurements which include relevant

market research documentation for different market research methods including request

for information, pre-tender briefings

Lead Reviewer Findingsto be completed by lead reviewer after review

4.8 The supply positioning tool or a similar matrix based approach is utilised to segment the supply market and to develop appropriate procurement strategies.

The public authority is able to demonstrate segmentation of their key supply categories.

A strategy is in place to ensure that interaction with each procurement strategy is tailored appropriately.

Supporting evidence may include: acquisition plans for major procurements which include utilisation of

supply positioning or similar models policies and procedures on how to develop appropriate procurement

strategies including information on Supply Positioning, Supplier Preferencing or similar models

Lead Reviewer Findingsto be completed by lead reviewer after review

Accreditation Assessment Report Page 25 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

PERFORMANCE CATEGORY 5: RELATIONSHIPS – INTERNAL AND EXTERNAL

Procurement is not an isolated function. It is important for procurement to be involved early in the business decision process and to build effective relationships with suppliers and internal stakeholders. Strategies that are specific to a supplier or category of supply need to be developed as opposed to a uniform approach to all suppliers.

5.1 Relationships with internal stakeholders are managed to ensure an effective procurement process.

The public authority is able to demonstrate that internal stakeholders have been identified and steps taken to formalise and strengthen the relationships.

The procurement function has a stakeholder engagement plan that covers the different types of stakeholders and their varying requirements.

There are clear communication channels available between stakeholders and they are being used effectively.

Internal stakeholders share a common view of the role, responsibility and value added by the procurement function.

Channels of communication for addressing procurement related queries should be available to all stakeholders in the public authority.

Supporting evidence may include: stakeholder engagement or communication plans Procurement Framework document/policy identifying key stakeholders Communication documents advising key stakeholders of procurement

matters Documentation from stakeholders acknowledging procurement as a value

adding function that supports the achievement of business objectives

Lead Reviewer Findingsto be completed by lead reviewer after review

5.2 Transparent and ethical relationships are established with key suppliers.

The public authority is able to demonstrate that they have defined what constitutes an ethical and transparent process with suppliers and that this has

Accreditation Assessment Report Page 26 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

been followed appropriately.

Feedback from suppliers and potential suppliers on how procurement relationships are managed by the public authority is sought using suitable questionnaires / surveys.

Confidential reporting channels are available for whistleblowers, including suppliers, to report misconduct by public authority personnel.

Supporting evidence may include: contract management or ethical and probity related policies and

procedures including gift and hospitality policy documentation of confidential reporting channels for supplier feedback feedback from suppliers procurement policies and procedures related to ethical behaviour

standards, probity and transparency fraud prevention policies, risk management framework or plan

Lead Reviewer Findingsto be completed by lead reviewer after review

5.3 Effective contract management processes are established and monitored.

The public authority is able to demonstrate the documentation, publishing and application of contract management processes in accordance with good practices such as those identified in the Board’s Contract Management Guideline.

All significant contracts have key performance indicators that are monitored throughout the term of the contract with feedback provided to suppliers.

Feedback from suppliers is that contracts are managed effectively by the procurement function using suitable questionnaires / surveys.

Supporting evidence may include:

Accreditation Assessment Report Page 27 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Ref

Accreditation principle

(refer Procurement Accreditation Guideline)

Public Authority response to principle

Illustrative guidance for compiler to assist in determining whether the public authority response to the procurement principle is “fit for purpose”

Assessment of Capability1: Meets expectations2: Partially meets

expectations3: Does not meet

expectations

Reference to Development

Plan

Reference to Public Authority Evidence

Log (Attachment

One)

contract management related policies, procurements, processes, systems and templates

contract management plans for complex, high value contracts performance monitoring reports for major contracts feedback from suppliers re contract management effectiveness

Lead Reviewer Findingsto be completed by lead reviewer after review

5.4 Supplier development strategies are planned for and implemented as appropriate.

The public authority is able to demonstrate that the need for creating capacity in the market has been considered and, where appropriate, implemented.

There is evidence that the public authority has considered the potential impact of significant procurements on the market (where relevant).

Relationship management processes and owners are established for each major market segment. Formal processes are established for key suppliers.

Ongoing engagement and communication occurs with key suppliers across major market segments.

Supporting evidence may include: acquisition plans for major procurements which include documentation on

supplier development strategies and/or consideration of the impact of selected strategies on the supply market

documented supplier development strategies documented engagement and communication with key suppliers

Lead Reviewer Findingsto be completed by lead reviewer after review

Accreditation Assessment Report Page 28 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

4. ACCREDITATION DEVELOPMENT PLAN

A summary of the development areas identified during the review and the respective development plan is documented in this table. The responsibilities for delivering on the defined development actions and planned completion dates have been identified and documented in the development plan. In addition, overall responsibility for ensuring that these tasks are completed within the agreed time frames has been assigned to XXXXXX and is subject to the oversight of XXXXX. The contents of this report were discussed with PPG in a meeting held on XX XXXX 201X. It was agreed that the development plan is reasonable based on the information provided in the Accreditation Assessment Matrix.

Each Development Plan action has been prioritised as follows.

Priority Rating Timeframe for completion

Completed by:

A 0 – 6 monthsB 6 – 12 monthsC 12 – 18 monthsD 18 – 24 months

Accreditation Assessment Report Page 29 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

Assessment Report

ReferenceIdentified Accreditation Development Area Management Agreed Development Plan Responsible

OfficialPlanned

Completion Date/Priority

The unique performance criteria / principle reference from the Accreditation Assessment Report.

A brief description of development areas identified by the public authority while completing the Accreditation Assessment report.

Details of the planned response by the public authority to the development area identified, i.e. what will be done and how it will be implemented.

The name of the official responsible for delivering the relevant development plan. This official should at least be a senior manager.

The planned completion date for the development plan.

Accreditation Assessment Report Page 30 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

5. CONCLUSION

Based on the information contained in this report, and the supporting evidence we have collated, we believe that we should receive conditional / unconditional accreditation for all procurement activities subject to the oversight of the Board with a procurement authority of XXX for the period 2013-2016.

Add if applicable:

We accept that accreditation will remain conditional pending completion of the approved development plan.

Accreditation Assessment Report Page 31 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

ATTACHMENT ONE – EVIDENCE LOG

Document No Document Name Document Description

Accreditation Assessment Report Page 32 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

ATTACHMENT TWO – KEY PERSONNEL INTERVIEWED

Name Title Role

Accreditation Assessment Report Page 33 of 34 Issue Date August 2013Version 1.2 Review Date January 2015

ATTACHMENT THREE – SUMMARY DEVELOPMENT PLAN

to be completed after Lead Reviewer’s review

Accreditation Assessment Report Page 34 of 34 Issue Date August 2013Version 1.2 Review Date January 2015