The division of duties, for example supplier selection and supplier management can also be asserted at policy level if desired. There can be tension within areas of the policy for example, balancing the principles of competitive neutrality against the administrative costs and commercial drivers of the organisation. The reform challenge for Local Government is to determine optimum minor purchasing thresholds. They should be sufficiently high such that best value is derived through the collection and qualitative evaluation of formal quotes, but not too high to the extent that there is an overinvestment of administrative time into the purchase decision making. Checks and controls to minimise the propensity of fraud are also important considerations within the establishment of a minor purchasing threshold framework and to this end the procedural requirements of each threshold tier should be considered as part of the policy development. Buy Local considerations should also be represented at policy level. Summary: A well constructed purchasing policy can derive significant process benefits and also feed into a more meaningful annual budget process. It is a regulatory requirement to have a policy, but good governance will move beyond the minimum requirements and utilise the policy as an effective way to derive value and best practice procurement. Checklist: Procurement Policy Task Critical Considerations Stage Review current purchasing policy documents of the Draft a schedule of differences Stage 1 to July 2014 (review) – current entities. Reconcile content Check all elements of the policy are included Determine if Regional Price Preference is required and what Buy Local inclusions apply. future size of procurement operation and Develop thresholds that are commensurate Stage 2 Aug 2014 to March 2015 (plan) – determine suitable thresholds with the number and of envisaged contracts. Review procurement process controls, separation of Relate back to organisational structure and Stage 2 Aug 2014 to March 2015 (plan) – duties and fraud minimisation strategies. reporting delegations register, and internal audit Determine additional purchasing policy requirements Beyond the minimum consider audit, Stage 2 Aug 2014 to March 2015 (plan) – analytics, regional economic development and supplier review requirements that should be elevated to policy level outside of operational practice. Merge the current purchasing policies in conjunction Maintain a focus on the future, not the past. Stage 3 April 2015 to June 2015 (mobilise) – with the model template and other discussions to draft The new entity has the opportunity to a new Purchasing Policy improve and enhance its procurement function, driven by the new policy.
The division of duties, for example supplier selection and supplier management can also be asserted at policy level if desired. There can be tension within areas of the policy for example, balancing the principles of competitive neutrality against the administrative costs and commercial drivers of the organisation. The reform challenge for Local Government is to determine optimum minor purchasing thresholds. They should be sufficiently high such that best value is derived through the collection and qualitative evaluation of formal quotes, but not too high to the extent that there is an overinvestment of administrative time into the purchase decision making. Checks and controls to minimise the propensity of fraud are also important considerations within the establishment of a minor purchasing threshold framework and to this end the procedural requirements of each threshold tier should be considered as part of the policy development. Buy Local considerations should also be represented at policy level. Summary: A well constructed purchasing policy can derive significant process benefits and also feed into a more meaningful annual budget process. It is a regulatory requirement to have a policy, but good governance will move beyond the minimum requirements and utilise the policy as an effective way to derive value and best practice procurement. Checklist: Procurement Policy Task Critical Considerations Stage Review current purchasing policy documents of the current entities. Draft a schedule of differences Reconcile content Check all elements of the policy are included Determine if Regional Price Preference is required and what Buy Local inclusions apply. Stage 1 – to July 2014 (review) future size of procurement operation and determine suitable thresholds Develop thresholds that are commensurate with the number and of envisaged contracts. Stage 2 – Aug 2014 to March 2015 (plan) Review procurement process controls, separation of duties and fraud minimisation strategies. Relate back to organisational structure and reporting delegations register, and internal audit Stage 2 – Aug 2014 to March 2015 (plan) Determine additional purchasing policy requirements Beyond the minimum consider audit, analytics, regional economic development and supplier review requirements that should be elevated to policy level outside of operational practice. Stage 2 – Aug 2014 to March 2015 (plan) Merge the current purchasing policies in conjunction with the model template and other discussions to draft a new Purchasing Policy Maintain a focus on the future, not the past. The new entity has the opportunity to improve and enhance its procurement function, driven by the new policy. Stage 3 – April 2015 to June 2015 (mobilise)
Reform-Toolkit-Procurement-Guide_99.docx