FINANCIAL DELEGATION

PROCEDURAL GUIDELINE

2

ORDERING AND SUBSEQUENT PROCEDURES

ORDERING AND SUBSEQUENT PROCEDURES

A.INTRODUCTION

  1. Schools are familiar with the recommended ordering procedures as they have been in existence for many years. The principles have not changed under Local Management of Schools (LMS).
  1. The Governing Body are responsible for the budget delegated to them, ie they can spend their “own” budget but they cannot spend somebody else’s.
  1. “Value for Money” (part of the Best Value plan) must be considered at all times. A good way to take account of this is to imagine that it is your own personal money you are spending.
  1. For details of ordering/ cancelling orders on SIMS FMS please refer to the SIMS FMS6 guideline (No. 25).

B. Security Of ordering System

  1. SIMS FMS or the finance system used by the school should comply with the following:

Passwords are allocated to each authorised user of the system and updated regularly.

Levels of access are determined in accordance with individual user responsibilities.

Ensure segregation of duties is in place and complied with.

  1. Official Order stationery is locked away securely, when not in use.
  1. Official Order stationery must only be used to purchase items for the school.

C.METHODS OF ORDERING GOODS/SERVICES

There are several ways of obtaining goods/services:

-order from Yorkshire Purchasing Organisation (YPO)

-order from a supplier other than YPO

-pay from petty cash – see separate guideline No 6 for more detail.

-order & pay with School Credit Card – see separate guideline No 23 for more detail.

D.PURCHASING AND TENDERING PROCEDURES

Schools must comply with the LA Financial regulations for ordering goods and services as stated below:

The Authority’s Financial Standard Section 151 Local Government Act 1972, Extract:

  1. Introduction

1.1This procedure ensures that proper arrangements are in place for the purchase of goods and services.

1.2The procedure covers ordering, receipt of goods, invoicing, record keeping and authorisation limits.

  1. Procedure – Placing of orders for goods and services

2.1The staff member placing the order must firstly confirm that budget provision has been made. To place an order where there is no budget provision is in breach of the Council’s Financial Procedure Rules.

2.2Calderdale Council’s Contracts Procedure Rules concerning quotations and advertising, must be followed for all purchases. Contracts Procedure Rule (CPR) requirements are summarised below:

  • Orders above £60,000

The Council’s official tendering arrangements have to be operated for all purchases above £60,000. (CPR 7)

  • Orders between £10,000 and £60,000

The appropriate Officer must invite at least 3 written quotations or tenders for a proposed contract of an estimated value of over £10,000 and up to £60,000. A record must be kept of the reasons for accepting a quotation.

Quotes cannot be considered unless they comply with CPR rule 11.

If 3 quotes cannot be obtained owing to a lack of suitable contractors willing to quote, then the appropriate officer (i.e. Head Teacher) must retain a written record of this.

  • Orders below £10,000.

For contracts valued at below £10,000 the appropriate officer(i.e. Head Teacher)should select the most efficient method of procurement, which demonstrates value for money, keeping a written record of the reason and action taken. (CPR 8)

e.Procedure for ordering

In normal circumstances:

  1. Requests for an order should detail the goods/services required, the cost centre to be charged and the amount. Requests should be authorised by the Budget Holders.
  1. Before an order is placed, the remaining balance on the cost centre should be checked to ensure that sufficient funds are available to meet the anticipated cost. If this is not the case the request should be referred to the Headteacher
  1. Orders should be raised on the SIMS FMS system (see Guideline No 25 for details), or the financial system used by the school. On SIMS FMS the order number will be generated automatically.
  1. As much detail of goods/services as possible should be provided to avoid incorrect items/services being supplied.
  1. Orders should be authorised by the Headteacher or designated responsible member of staff.
  1. The order should be sent to the supplier, a copy being retained for the school file.
  1. Orders should be placed for Local Authority Services covered by Service Level Agreements (SLAs) using the same procedure as above. The order sent to the supplier should be marked ‘Confirmation Only’.
  1. Unless paid by Standing Order or Direct Debit, orders should be raised for Utilities (Water, Rates, Electricity, Gas) for the year.

In exceptional circumstances:

Where there is extreme urgency a supplier can be notified directly of an order. If this is the case an official order must be raised at the first opportunity and sent to the supplier marked ‘Confirmation’.

Outstanding orders should be reviewed regularly to ensure goods and services are received in a timely way. The review will also ensure that duplication is avoided.

F.Receipt of goods/services

  1. When goods are received they will in most cases be accompanied by a Delivery Note.
  1. To avoid any possibility of discrepancy, it is necessary to carry out a “three way check” – from goods to delivery note to copy order. Only if all three coincide is it certain that there is no discrepancy.

Check from goods to delivery note to see that the firm has sent what it says they have sent.

Check from goods to copy order to see that the firm has sent what you asked them to send.

  1. Any discrepancy should be notified immediately to the supplier. Perhaps the best way is to telephone them.

Find out the name of the person you are talking to.

Discuss the discrepancy and agree how it is to be rectified.

Make a note of all these details and the date of the conversation.

Keep the note with the rest of the relevant papers.

If you do this, you are not relying on memory. In addition, other members of staff can quickly and easily see what is going on.

  1. Assuming the “three way check” is in order, this needs to be recorded on the copy order.

For services provided, job sheets, authorised by the appropriate school representative should be retained wherever possible, and marked off on the copy order.

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