Policy and Procedures April2011

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    PURCHASING PROCEDURES

    INTRODUCTION

    PURCHASING PHILOSOPHY

    PURCHASING POLICY

    PROCEDURES Last amended

    1. - Services (March 2010)

    2. - Primary Budget Holder (March 2010)

    3. - Authority to Order (March 2010)

    4. - Selection of Potential Suppliers (March 2010)5. - Invitations to Tender/Quote (March 2010)

    6. - EC Procurement Legislation (March 2010)

    7. - Use of Purchase Orders (March 2010)

    8. - Dealing with Suppliers (March 2010)

    9. - Use of Specifications (March 2010)

    10. - Expediting (March 2010)

    11. - Contracts (March 2010)

    12. - Purchasing Consortium (March 2010)

    13. - Equality Statement (April 2010)

    14. - Buyers Guide (March 2010)

    15. - Financial Health Checks (March 2010)16. - Supplier Appraisal (March 2010)

    17. - Approved Suppliers (March 2010)

    18. - Purchasing Cards (March 2010)

    19. - Negotiation Briefing Notes (March 2010)

    20. - Purchasing Guidance Notes (March 2010)

    (when bidding for funds)

    21. - Consultancy (March 2010)

    22. - Environmental Statement (May 2010)

    23. - Purchasing Flowchart (March 2010)

    24. - IT Policy (January 2011)

    25.- Community Benefits (March 2011)

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    INTRODUCTION

    The purpose of these procedures is to advise and assist those staff within the

    University who undertake purchasing duties as part of their overall responsibilities.

    Purchasing Services is part of Financial Services and its primary purposes are to

    formulate Purchasing Policy, co-ordinate purchasing activities within the University

    and to provide professional purchasing advice and assistance to all parts of the

    University Group. A more detailed description of the role of Purchasing Services can

    be found under the Service Standards section of these procedures.

    All purchasing procedures are derived from the Purchasing Policy of the Universityand the Policy Statement now forms part of the Financial Regulations of the

    University Group.

    To assist with the location of Purchasing Policies within the regulations of the

    University Group the following details are supplied:

    Financial Regulations

    The Financial Regulations of the University establishes approved practices governing

    the purchasing process. The Purchasing Procedures cover the operational detail and

    standard documentation which implement the Financial Regulations.

    Purchasing Policy

    Section E (46) of the Financial Regulations sets out the University's approved

    Purchasing Policy.

    Tendering Procedure

    Section E (49) of the Financial Regulations sets out the University's procedures for

    purchases valued in excess of 50,000.

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    PURCHASING PHILOSOPHY

    The University aims to establish an effective and efficient organisational structure for all its

    purchasing activities to ensure the promotion and achievement of value for money.

    The established organisational structure seeks to secure the management advantage of devolved

    budgets and decentralised purchasing with arrangements to secure best price, to promote good

    practice in purchasing and ensure co-ordination of all buying activity across departments.

    To achieve these aims, the University has a central Purchasing Office responsible for the

    development of a purchasing strategy, the implementation of good purchasing practice, and the

    provision of professional purchasing advice across the University.

    Within each faculty and service, the University has finance officers to focus on the purchasing

    activities and to develop a common approach to purchasing. These people are assisted by the

    central Purchasing Office in areas such as contract compliance, purchasing procedures, and the

    negotiation of standard item goods/services for use across all faculties and services.

    The purchasing philosophy underpins the purchasing policy of the University, and the

    implementation of the policy is detailed in the following procedure notes.

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    PURCHASING POLICY

    The University's Views on Purchasing

    The University seeks to ensure that its operational activities are consistent with, and supportive of,

    the Mission Statement and its associated values and aims, and are consistent with the policy stances

    taken by the institution on equal opportunities, regional affairs and environmental issues. The

    University, therefore, wishes to ensure that the process of the purchasing of goods for the

    University is sensitive to environmental factors, that it shows commitment to the region by,

    wherever possible, procuring goods from local firms, and that it facilitates equality of opportunity

    through contract compliance measures. These principles of purchasing will only be adopted,

    however, where value for money can be achieved.

    Policy Statement on Purchasing

    The University's Purchasing Policy consists of a number values and aims. The Purchasing Policy

    will also operate within the wider framework of the Financial Regulations and legislative

    requirements.

    The Purchasing Policy is as follows: -

    1. The University will seek to achieve value for money in all purchases.

    2. Environmentally friendlier products will be purchased, wherever possible.

    3. Wherever possible, the University will not deal with companies who are known to operate

    discriminatory practices. All University contracts will include a clause upon which contract

    compliance will be sought.

    4. Subject to European directives, products will normally be purchased within the North West

    of England.

    5. Goods and Services will be purchased from within approved contracts and ranges where

    available.

    6. Purchasing will be on the basis of "just-in-time" to prevent unnecessarily large levels of

    stock being maintained.

    Principles of Implementation

    All contracts for standard items and environmentally friendlier products (as defined in the

    purchasing procedures) will be negotiated by the Head of Procurement. Major items and group

    purchases (as defined in the purchasing procedures) will be technically specified by the specialist

    staff, and the Head of Procurement will undertake all contract negotiations.

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    PURCHASING PROCEDURES

    1: SERVICES

    The role of Purchasing Services within the University is to formulate Purchasing Policy, co-ordinate

    purchasing activities within the University, provide professional purchasing and insurance adviceand assistance to all parts of the University Group.

    In general, Purchasing Services shall be responsible for the following on behalf of the University

    Group:

    Central Role - Purchasing Services has a responsibility for all major purchases of

    non-pay expenditure, including Capital.

    Contract Development - Commodity Research; Contract Strategy; Supplier Appraisal; Contract

    Reviews; Supplier Management.

    Tender Process - Production and issue of documents; Supplier Appraisal; Commercial Evaluation;

    Contract Award.

    Operational Issues - Professional Purchasing advice and guidance relating to: acquisition of goods

    and services; assistance with compilation of Specifications; obtaining quotations; commercial

    negotiations; sourcing of Suppliers and commodities.

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    2: PRIMARY BUDGET HOLDER

    The Financial Regulations of the University Group (see Section E (42) detail budget policy and

    budgetary control.

    Primary Budget Holders are authorised to approve expenditure, ensuring:

    - the goods and/or services are necessary and the expenditure which will be incurred can

    be contained within that part of the budget for which they are responsible;

    - established contracts or supply arrangements as contained in the Buyers Guide are

    utilised wherever possible;

    - where alternatives are available, the purchase represents economy(using the whole life

    costing method) and operational efficiency, and the advice of Purchasing Services has

    been sought where necessary;

    - action is taken on incorrect or poor quality deliveries and/or services, and that

    Purchasing Services is advised of such instances;

    - the correct purchasing route has been taken in accordance with the specified purchasing

    limits, (see Section E ( 49.2) Financial Regulations).

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    3: AUTHORITY TO ORDER

    Purchase Orders to be issued for any goods or services necessary may be authorised by a Budget

    Holder with the following exceptions:

    The Supplier attempts to impose terms and conditions which conflict

    with the University's Standard Conditions (especially payment

    terms); only the Head of Procurement, as nominee of the Director of

    Finance, may vary the Standard Conditions under which the

    University trades;

    The single or cumulative value is in excess of 5,000 and three

    quotations have not been obtained;

    The single or cumulative value is in excess of 50,000 and has not

    been subject to the Tendering procedure;

    If there are any doubts or concerns with regard to the authority necessary to make a particular

    purchase, please go to http://intranet.salford.ac.uk/fina