Auditing and reviewing existing financial regulations, procedures and processes related to expenditure is critical. The procurement board needs to address the following questions:
Are your institution’s rules governing procurement expenditure ‘fit for purpose’?
Do existing processes/procedures encourage and support good procurement practice, such as using purchasing consortia (such as CPC) and procurement cards?
Do the existing processes encourage procurement staff to monitor and review what is being bought, spotting trends and anomalies to identify opportunities and manage risks better?
Conduct a risk analysis
A key priority for every institution is to ensure it is exposed to as little risk as possible. A clear view of the risks and any potential consequences that could arise from procurement malpractice is essential. Financial and legal risks will almost certainly be high if:
Large numbers of untrained staff are authorised to make purchases and negotiate contracts
Procurement processes are not compliant with UK public procurement legislation
Your institution does not have an established process for dealing with contracts if, for example:
Procurement contracts are verbal
It does not operate an electronic purchasing order system
Supplier relationships are based on their terms and conditions rather than your institution’s
School / MAT members - the information on this page aligns with the following ISBL Professional Standards: 3.1, 3.2, 3.3, 3.4, 3.9