On a 3 Monthly Basis, Estates Management Will Run a Procedure to Randomly Sample Orders

On a regular basis, Estates Services will run a ‘Random Sampling’ report from within the Order Requisition database. This report allows the user to define a chosen value range and to select the date parameters within which the orders to be selected were created and the desired number of orders to be checked within each range. This facility will enable Estates Services to sample orders raised by the Department and ensure that the quotation/tendering processesare being followed. For the purposes of these checks, each single order will be deemed to be a contract in its own right. All Single Source Justification orders under £10,000 will also be included. Depending on the outcome of each random sampling, further investigations into larger project work will follow.

The decision on whether a purchase should be handled under quotation or tender procedures is based on the level of expenditure implicit in the order:

These thresholds apply to the minimum number of offers which must be obtained. Good practice is to invite more offers where any of the following factors apply:

• Some companies may decline from bidding
• New suppliers are entering the marketplace

The following will form the basis of the checks to be performed on the randomly selected orders:

Quotations

1. Has the appropriate number of quotations required under the thresholds been sought.
2. Were quotations sought from approved suppliers
3. If obtaining the best VFM involved accepting an offer other than the lowest quoted price, are the reasons documented.
4. Were University Procurement Services consulted at any time during the process.

Tenders

1. Has the appropriate number of tenders required under the thresholds been sought.
2. Were tenders sought from approved suppliers
3. Re the tender opening, have the details been recorded on the Record of Official Tender Opening Form.
4. Following evaluation of Tenders, has a Letter of Acceptance been issued to the successful supplier.
5. In cases where best VFM is being obtained through acceptance of an offer which is not the lowest, have the reasons been documented.
6. Were University Procurement Services consulted at any time during the process.
7. Was a formal appointment made

Single Source Justification

When the requisite number of offers cannot be obtained, the Single Source Justification procedure may require to be followed.

1. Instances will arise where the purchaser intends to obtain goods or services under a single offer. In all such cases and where the total value exceeds £1,000,hasa SingleSource Justification Form been completed, signed by the Head of Department and retained for Audit purposes?
2. Where the Order is for a value exceeding £10,000, has the form been submitted to the Head of Procurementfor countersignature?

When the report is run to select orders, normally 2 will be selected for each of the categories listed in the above table. The Senior Finance Assistant will advise the originators whose orders have been selected and they will be required to provide evidence that the correct procedures were followed in each case.

When this information has been provided, the Estates Finance Manager, along with the Head of Procurementwill examine the paperwork provided to ensure that all orders have complied with the procedure. The quality of the works will be checked independently of this process.

Details of the orders checked and the outcome of any investigations will be maintained on record by the Senior Finance Assistant and the results of each audit check will be forwarded to the Director and Assistant Directorsfor information.