EXPENDITURE ENGAGEMENT OF EXTERNAL CONSULTANCY SERVICES

Transcription

1 EXPENDITURE ENGAGEMENT OF EXTERNAL CONSULTANCY SERVICES 1.0 Engagement of External Consultants The engagement of external consultants can consume considerable resources and so it is important that departments manage appropriate external consultancy in order to ensure value for money. External consultants should only be accessed when such skills and expertise are not available in-house. External consultancy is defined as normally involving one or more of the following: - Investigating problems; Providing analysis; Providing advice; Assisting with the development of new systems or structures; Developing an intellectual output to assist the University in decision-making. External consultancy will involve work that is outside of the normal, ongoing business of the University. While the vast majority of external consultancies will be undertaken by the private sector, some may be undertaken by organisations which ostensibly belong to the public sector, such as universities or hospitals, or their staff. While such organisations are strictly classified as public sector, the principles in this guidance still apply. The following activities are not considered to be external consultancy. Internal consultancy: Where consultancy is provided internally, or in-house and focuses upon other parts of the same Faculty/Department, or where one Faculty/Department provides services to another Faculty/Department. Staff substitution: The contracting of individuals from other organisations to carry out work which is in the normal, ongoing business of department. Staff substitution is necessary when there is insufficient internal staff to undertake the work. For example, when a technical division employs technical staff through a recruitment agency. Contracted services: The contracting of clearly defined, essentially routine services from an external provider on the basis of a contract for a specified duration. For example, contracts for security or cleaning personnel. Physical Resources: Within the department of Physical Resources capital projects frequently require the engagement of property related consultancy services such as Quantity Surveying, Architectural services etc. This process has two conditions on it; (i) work undertaken on these projects has been approved through the Corporate Planning process

2 (ii) use of consultants on projects are appointed by means of the Select Tender list, in line with existing procurement procedures. External consultants can be used/may be necessary: - When independence/objectivity is required and cannot be provided within the University; When specialist knowledge or expertise is unavailable internally; When specialist knowledge or expertise is available internally, but would prove inefficient and impractical to use (eg the cost of diverting staff to perform the task would outweigh the benefits of assigning the task internally); When alternatives are unavailable; When there is a direction to do so from Government or by another body, such as the EU. 2.0 Authorities Deans and Heads of Administrative Departments are responsible for authorising purchase requisitions for all general expenditure in their area. Purchasing authority may be delegated to named individuals within the department. However, this does not absolve the Dean, Head of Department or Head of School from ultimate responsibility and accountability for the proper management of the purchasing process. 3.0 Value of Purchases 3.1 Low value purchasing (individual orders that do not exceed 5,000) is devolved to Faculty/Departmental level. 3.2 Goods and services with a value in excess of the 5,000 threshold, and which are not covered by a central contract or agreement, are subject to market testing. In some cases, the University will be legally required to adhere to European Commission Directives which govern regulated spending by public bodies within each of the member states. In either case, staff located in the Central Procurement Office on the Coleraine Campus will carry out the necessary market testing. When the market testing exercise has been completed and a decision reached, Procurement Office staff will pass all of the information necessary to enter the requisition to the central requisitioning point in the appropriate Faculty / Department. 4.0 Specification of requirements 4.1 Care must be exercised when describing goods and/or services to ensure that there is sufficient information and detail to enable the procurement staff to encourage competition and to make informed purchasing decisions or recommendations. This can be best achieved by describing performance standards and listing desirable features. 4.2 Individuals wishing to engage the services of a consultant must complete a Pro- Forma tendering document for consultants. (Appendix C) A full, but proportionate, business case should be completed for all external consultancy contracts expected to cost in total 10,000 or over. All business cases should set out in detail proportionate to the proposed assignment: -

3 The purpose of the assignment; A reasoned assessment of the alternatives to external consultancy and justification for using external consultants; The immediate and long-term outputs and benefits expected from the external consultancy service and when they are likely to accrue; The proposed project management arrangements including management of deliverables, expectations and risks; The means by which skills/expertise will be transferred to in-house staff if appropriate; The proposed division of work between the external consultant and any in-house staff who will be assisting them; The expected costs of the external consultant and the in-house effort; The performance review arrangements; How the results of the consultancy will be implemented and monitored; Any other considerations specific to the assignment. When using external consultants, they should be briefed on: The functions, structure, aims and policy/strategy of the organisation for which they will be providing a service; The background to the service it is providing (eg if it is a result of a legislative or policy requirement); A full definition of the problem and comprehensive terms of reference; The arrangements for monitoring and the form and timing of progress reports (including meetings at key stages), to ensure delivery or outputs and VFM; Details of the particular skills/experience needed from the service. 5.0 Rationale & Source of Consultancy 5.1 Internal Consultant Where a department or faculty wishes to engage the services of a consultant, they should, in the first instance, determine if the service can be provided in-house either within the Faculty/Department or using expertise in other Faculties/Departments 5.2 External Consultant Only in the instance, where this source is unsuccessful, will the Requisitioner be entitled to source an external consultant. In this case, the Requisitioner must ensure that the consultancy provision is in accordance with the strategic objectives of the University.

4 Any consultant engaged by the University, where the costs are expected to exceed 10k per annum, must receive the prior approval of a Senior Officer and the Chief Finance and Information Officer before the appointment is formalised. The application to the Chief Finance and Information Officer should include a detailed business case, integrating with the University resource strategies, demonstrating that the engagement is based on a realistic strategic analysis. 6.0 Quotations and Tenders 6.1 Where the purchase order value for goods/services is likely to exceed 5,000 the following thresholds will apply: - Range Approach 5,000-30,000 3 quotations will be sought 30, ,176 Publicly tendered and subject to Resource Committee approval 164,176+ Subject to EC Legislation If the value is less than 5,000 then two quotes will be sought. Source: Procurement Office Procedure For amounts of 30,000 and upwards a public tendering system will be adopted except where there is clear evidence that there is a limited source of supply, in which case the Dean or Head of Department will provide a covering letter in support of the request. 7.0 Purchase Orders 7.1 Upon agreement of the Chief Finance and Information Officer and/or the Senior Executive Team, the Requistioner should raise a Purchase Order covering the period of appointment, and have same duly authorised by the Assistant Chief Finance and Information Officer. All Purchase Requisitions should be accurately priced, covering the total period of the service provision. If the service is to be extended beyond the original agreed period, the Requisitioner should raise a subsequent Purchase Requisition and follow the above process again. 7.2 This policy should be read in conjunction with the attached Appendices.

5 ULSTER UNIVERSITY POLICY IN RELATION TO THE ENGAGEMENT OF EXTERNAL CONSULTANTS Appendix A Procurement Office Procedure 5.1 Declaration of Interest / Conflict of Interest: Any personal interest that may impinge, or might reasonably be deemed by others to impinge, upon impartiality in any matter relevant to purchasing duties should be declared to the Dean, Head of School or Head of Department before conducting the business. It is University policy that members of staff are responsible for identifying potential conflicts of interests which might arise from personal fiduciary involvement in the supply of goods and/or services to the University.

6 Appendix B Procurement Office Procedure 5.6 Fraud Misuse or misappropriation of the assets and funds of the University is a serious disciplinary matter, which could lead to an internal disciplining process being instigated and/or ultimately lead to criminal proceedings. The direct contact between the University and outside agencies selling goods or services is an area, which is particularly vulnerable to fraud. It is therefore critical to protect the University and all members of staff by strictly adhering to the formal procedures for obtaining quotations, authorising purchasing expenditure, recording the receipt and acceptance of goods and services and the clearance of invoices for payment.

7 Appendix C: ULSTER UNIVERSITY ENGAGEMENT OF EXTERNAL CONSULTANCY SERVICES Specification of Requirements: Faculty/Department: Cost Centre: Nominal Code: Supplier Details (if known): 1. What is the purpose of the assignment and how does the consultancy integrate with the overall strategic goals of the institution? 2. Is the skill or expertise available within the University? YES/NO Please outline the research undertaken in order to reach this conclusion 3. What are the immediate and long-term outputs and benefits expected from the consultancy service and when are they likely to accrue? 4. Outline the proposed project management arrangements including management of deliverables, expectations and risks. 5. Describe how the skills and expertise will be transferred to University staff? 6. Detail the division of work, if appropriate, between external consultants and University staff. 7. Outline the expected cost of the external consultant.

8 8. Outline any additional expected in house costs. 9. Provide detail as to the performance review arrangements and supplier evaluation process to be undertaken. 10. Describe how the results of the consultancy will be implemented and monitored. 11. Any other considerations: APPROVAL PROCESS Requisitioner Name: Signed: Date: Approver Name: Signed: Date: Resources Committee (if required): Signed: Date: