Purchasing Goods and Services and Accounts Payable Financial Procedure ME CCG Policy Reference: MECCG120

Transcription

1 Purchasing Goods and Services and Accounts Payable Financial Procedure ME CCG Policy Reference: MECCG120 Target Audience Brief Description (max 50 words) Action Required All CCG Managers and Directors This document should be read in conjunction with the CCG s Constitution including Standing Orders, Standing Financial Instructions (SFIs) and Code of Conduct and nothing contained herein is intended to override those documents. To be approved and disseminated to all staff via the staff intranet Document Information Version Number Version 3 Accountable Officer Chief Finance Officer Responsible Officer Deputy Chief Finance Officer Date Approved 7 November 2016 Approved By Policy reviewed by CFO and noted by Audit Committee 7 November 2016 and Board, 1 December Review Date November 2018 Stakeholders engaged in Financial Accounting Team development/review Equality Impact Assessment EQUALITY IMPACT ASSESSMENT This document has been assessed for equality impact on the protected groups, as set out in the Equality Act This Policy is applicable to the Board, every member of staff within the CCG irrespective of their age, disability, sex, gender reassignment, pregnancy, maternity, race (which includes colour, nationality and ethnic or national origins), sexual orientation, religion or belief, marriage or civil partnership, and those who work on behalf of the CCG

2 Amendment History Version Date Reviewer Name(s) Comments /09/13 Business Manager/Corporate Support Essex CSU /06/15 Deputy Chief Finance Officer Content of the policy remains unchanged. Only modification is in relation to the formatting of policy to produce version 1.1 Updated for North Essex Partnership FT Supplies service and combined with previous policy MECCG43 Accounts Payable /10/16 Head of Accounting Updated for Provide Supplies Service with effect from 1/10/16. Updated for new EU tender limits Contents Paragraph Page 1 Purchase of goods and services below the OJEU tender limit 3 2 Purchase of goods and services above the OJEU tender limit 5 3 Instances where formal competitive tendering is not required 6 4 Purchase of ICT equipment including mobile phones 8 5 Payment of Invoices 8 Appendix A Delegated Limits For Purchasing Goods and Services 13 Appendix B Exceptions to the Use of Official Orders 14 Appendix C Contact Details 15 Page 2 of 16

3 This document should be read in conjunction with the CCG s Constitution including Standing Orders, Standing Financial Instructions (SFIs) and Code of Conduct and nothing contained herein is intended to override those documents. Reference should also be made to the CCG s Procurement Policy (MECCG 42). All CCG staff must ensure that they comply with: the requirement to seek competitive quotations/enter into a full tendering process as appropriate; the requirement to log eligible contracts on the Contracts Register the requirement to obtain the CCG seal on certain contracts or capital documents. The documents include: All contracts for capital works exceeding 100,000. Lease agreements where the total payable under the lease exceeds 100,000. All contracts for non-capital expenditure that exceed 1m. the requirement to discuss with the Finance Team, in advance of a contractual commitment, any proposal to enter into a formal lease agreement; the requirement to ensure that adequate budget funding is available before the CCG is committed to incurring expenditure. the requirement to pay all valid invoices within 30 days of receipt 1. Purchase of Goods and Services below the full tender limit 1.1. Provide CIC provides the CCG with a supplies service which is designed to ensure value for money to enable the CCG to demonstrate fairness and openness in its purchasing. Budget holders are normally expected to use the supplies team at Provide unless exceptions have been agreed (see references later in this document) Where goods and services are below 500 there is no specific requirement to obtain quotes within the CCG s Scheme of Delegation however it is good practice to ensure that any purchase represents value for money for the CCG. Goods and services should be requisitioned using the process outlined in sections 1.3 to 1.14 below using the Provide supplies team For items over 500 and up to 5,000 there is a requirement to obtain two verbal quotes. These can be obtained by the requisitioner and forwarded to the Provide supplies team along with the requisition or the requisitioner can request that the Provide supplies team obtain the quotes. Page 3 of 16

4 1.4. Where goods and services cost between 5,001 and 50,000 there is a requirement to obtain 3 written quotes. If the cost is over 50,000 and below the full tender limits 4 written quotes should be obtained against a written specification with detailed option appraisal (see table in Appendix A) Where quotes have been obtained and the supplier selected is not the cheapest quote the reasons for this decision must be documented on the requisition or the attached documentation The CCG Business Support Team can supply the requisition template electronically Depending on the type of goods and services being purchased, the requisitioner can obtain quotes first and forward those to the Provide supplies team with the completed requisition or can /telephone the Provide supplies team requesting that they obtain quotes and this information can be used to complete the requisition The Business Support Team will complete the requisition template for the requisitioner providing the following information is available: Quantity & Description of items required Supplier Details Cost centre and subjective codes Budget Holder (in format XX(initial)(surname)) Delivery Details Invoicing Details (see Appendix C) 1.9 The requisition should always be authorised by someone other than the requisitioner who has delegated authority to sign for that code The authorised requisition template should be ed to the Provide supplies team by the approved authoriser The Provide supplies team will check that the appropriate number of quotes has been received. Exceptionally, if the requisitioner has a preferred supplier and has not obtained quotes, a waiver form should be completed and signed off by the Chief Finance Officer prior to submission to Provide (see section 3.2 below for circumstances where waiver forms can be used). Page 4 of 16

5 1.12 Provide will generate a purchase order and send it to the selected supplier. They will also send an ed copy of the purchase order to midessexfinance@nhs.net to enable the CCG finance team to track orders. Provide are responsible for monitoring progress on the order and handling queries around missing items or returns On receipt of goods the requisitioner should sign the goods received note and keep a copy with a copy of the original requisition Provide are informed of changes to CCG authorised signatories as all new or updated forms are scanned and ed to the team. These forms are used to check the appropriateness of signatures on requisition forms. 2. Full Tender Process 2.1. Where the expected value of the supply of goods and services or income to be generated is reasonably expected to exceed the OJEU (Official Journal of the European Union) limits (currently 164,176 for non-clinical and patient transport services - also referred to as non-light touch services and 589,148 for clinical services also referred to as light touch services), over the lifetime of the contract and excluding VAT, the CCG is required to undertake a full formal tender process. The process is outlined in detail in the Standing Financial Instructions and in the CCG s procurement policy (MECCG42). The CCG may determine to undertake a full formal tender process for services where the expected value is less than the legal limits particularly where the procurement is thought to be contentious. The procurement route will normally be determined by the Finance & Performance Committee unless the total value is expected to exceed 500,000 in which case it will be agreed by the CCG Board The CCG has a contract with Attain to provide procurement support. Any queries regarding the appropriate method of procurement should be discussed in advance with the Attain Senior Procurement Manager (see Appendix C for contact details). Advice should also be sought for significant purchases between 50,000 and the OJEU limits Invitations to tender for the supply of goods and services must be issued in the name of the Accountable Officer. The invitation documents must state: The specification of goods and services The date and time by which tenders must be received That responses should be submitted on the e-bravo portal Page 5 of 16

6 2.4. An evaluation report should be produced comparing the financial and non-financial aspects of the tender. The acceptance of tender and award of contract should be carried out in accordance with the delegated limits schedule. The tender register should be completed to show the successful tender and the value of the award In accordance with Standing Orders, no tender shall be accepted which will commit expenditure in excess of that which has been allocated by the CCG and which is not in accordance with Standing Orders except with the authorisation of the Accountable Officer Providing all the conditions and circumstances set out in these Standing Financial Instructions have been fully complied with, formal authorisation and awarding of a contract may be decided by the appropriately delegated staff as set out in Appendix A. 3. Instances Where Formal Competitive Tendering Is Not Required 3.1. In accordance with the SFIs, formal tendering procedures need not be applied: (a) (b) where the estimated expenditure or income derived from the total value of the contract does not, or is not reasonably expected to, exceed the relevant OJEU limit or: where the supply is proposed under special arrangements negotiated by NHS England in which event the said special arrangements must be complied with; (c ) where the supply can be obtained under a framework agreement that has itself been procured in compliance with the duties set out at in the SFIs and where the CCG is entitled to access such framework agreement. Participation in newly agreed frameworks should be reported to the CCG Board and incorporated where applicable into contracts issued by the CCG; (d) where the CCG would be unable to fulfil its statutory functions because of limitation in the supply market, which do not arise from the failure to plan a procurement properly or where specialist expertise is required and can be demonstrated to be available from only one source, then single tender may be appropriate. In such circumstances the approval of the CFO or AO will be required, and the matter should be reported to the Audit Committee as stated in the Scheme of Delegation; Page 6 of 16

7 (e) for healthcare services where a completed contestability questionnaire provides objective evidence that competition is not the most appropriate way to comply with the Principles and Rules for Cooperation and Competition by ensuring Commissioners should commission services from the providers who are best placed to deliver the needs of patients and populations; (f) regarding disposals as set out in Standing Financial Instructions 3.2. Formal tendering procedures may be waived in the following circumstances (see section 8 of the SFIs): (g) (h) (i) (j) (k) (l) (m) in very exceptional circumstances where the CFO decides that formal tendering procedures would not be practicable or the estimated expenditure or income would not warrant formal tendering procedures, and the circumstances are detailed in an appropriate CCG record; where the requirement is covered by an existing contract and there is an agreed and signed record of a contestability and value for money assessment; Where a consortium arrangement is in place and a lead organisation has been appointed to carry out tendering activity on behalf of the consortium members; where the timescale genuinely precludes competitive tendering (failure to plan the work properly would not be regarded as a justification for a single tender); where specialist expertise is required and is available from only one source; when the task is essential to complete the project, and arises as a consequence of a recently completed assignment and engaging different consultants for the new task would be inappropriate; there is a clear benefit to be gained from maintaining continuity with an earlier project. However in such cases the benefits of such continuity must outweigh any potential financial advantage to be gained by competitive tendering; Page 7 of 16

8 (n) for the provision of legal advice and services providing that any legal firm or partnership commissioned by the CCG is regulated by the Law Society for England and Wales for the conduct of their business (or by the Bar Council for England and Wales in relation to the obtaining of Counsel s opinion) and are generally recognised as having sufficient expertise in the area of work for which they are commissioned. The CFO will ensure that any fees are reasonable and within commonly accepted rates for the costing of such work; The waiving of competitive tendering procedures should not be used to avoid competition or for administrative convenience or to award further work to a consultant or contractor originally appointed through a competitive procedure. Where it is decided that competitive tendering is not applicable and should be waived, the fact of the waiver and the reasons should be documented and reported to the next Audit Committee. 4. Purchase of ICT equipment including mobiles 4.1 Any requests for mobile phones and any ICT equipment are to be discussed with the Corporate Business Manager in the first instance as there may be spares in the organisation that can be used. If the Corporate Business Manager confirms that an order needs to be placed the process to be followed will be advised. 4.2 Staff should not place orders for any ICT or phone equipment without agreement from the Corporate Business Manager or the Head of Accounting. 5. Payment of Invoices 5.1 All invoices are scanned by Shared Business Services (SBS) in Wakefield and electronically sent to authorised signatories workflows for checking and authorisation. (See MECCG44 Authorised Signatory Policy for Delegated Powers to Office forms). 5.2 Invoices are to be addressed as follows: XX[Initial of Budget Holder][Surname of Budget Holder] NHS Mid Essex CCG Page 8 of 16

9 06Q Payables K515 Phoenix House Topcliffe Lane Tingley Wakefield WF3 1WE For example if the budget holder was William Smith the first line would read XXWSMITH. This enables SBS to direct the invoice to the correct person s workflow. 5.3 All payments are made by Shared Business Services (SBS) and apart from items financed from Petty Cash (see MECCG45 Petty Cash ); no payments are made by the CCG. It is the CCG s policy to: Maintain internal control to ensure that all payments are made accurately; Keep the number of urgent/manual payments to a minimum (manual payments are still made by SBS; and Pay all creditors within the 30 day period specified in the national Better Payments Practice Code (BPPC). 5.4 Payment Runs take place on Wednesdays and Fridays by BACS and take 4 days from payment to cleared funds. SBS cheque runs take place on Fridays. 5.5 Urgent Payments can take place on any day providing they have been authorised by the CCG by the deadlines below: Chaps Payments Supplier Chaps Payments Salary BACS Faster Payment Supplier BACS Faster Payment Salary am pm am pm Payment Definitions Payment Runs (1) Payments made to suppliers for all invoices approved for payment; Payment Requests; and Ready to Pay files. (2) Payments made to staff in respect of Monthly Payroll. See Section 5.1 below. Page 9 of 16

10 Payment Requests One off payments (ie cheque requests or payments without invoices) that when approved will be paid on the next payment run. Can be made to suppliers already set up on the system or suppliers without prior set up. Manual Payments Requests to make payments in respect of payroll omissions or in an emergency to approved suppliers. Payment will be made on the day of request if made by the deadline set (see below) or the next day if the deadline is passed. Can also be used for standard same day payments (eg retrospective continuing healthcare payments). Pre-Payments A payment made in advance of the invoice being processed or by means of a pro-forma invoice. Care must be taken not to pay the prepayment plus the full amount of the (final) invoice. See below. Ready to Pay Files Spreadsheets detailing required payments which can be uploaded into SBS ISFE via an interface and paid on the next Payment Run. (Used where multiple payments are to be made without invoices for example; for mental health assessment payments). Cashflow A summary of past, present and predicted future receipts and payments to enable the CCG to know that it has sufficient resources to meet its needs whilst ensuring that the bank account remains in balance. 5.6 Payment Runs Any invoice approved for payment will be included in the next Payment Run. SBS starts the Payment Run process at midnight and the Report is submitted to the CCG by 8.30 am the next morning. The Payment Run Report is checked by the Senior Finance Manager or Head of Accounting who makes any necessary amendments and approves the Payment Run. If the payment run has not been approved by 1pm it will be automatically cancelled by SBS therefore there is no risk that unchecked payments will be made. Providing that sufficient funds are available SBS pay the approved payment run. All cheques are posted to the payee by SBS unless certain cheques are requested to be sent back to the CCG. 5.7 Payment Requests Any payment request will need to include the following information so that a member of the CCG Financial Accounting Team can generate a payment: Page 10 of 16

11 Cost centre and subjective code to be charged Brief reason for the payment Supplier or Individual s name Address where payment is to be made Whether the payment should be made by BACS or cheque Whether anything is to be sent with the cheque Appropriate authorisation A member of the CCG Financial Accounting Team will enter the payment request into SBS Oracle. The payment request will need approval from a designated approver other than the individual entering the payment details. Following approval of the payment request the payment is included on the next payment run. 5.8 Manual Payments Manual payments will follow the same process as above except that the manual payment form will be used, it can only be used with pre-set up suppliers and it is used for same day payments. On receipt of the manual payment request SBS will make payment on the same day providing that the request has been authorised by the times specified in section 5.5. If urgent payment requests are not received by the times specified then the payment will be made the next day. Documentation supporting why the urgent payment has had to be raised should be retained. 5.9 Pre-Payments On occasion a pre-payment is made because there is no invoice. The payment (usually a manual payment) is coded to the pre-payment code and, subsequently, a member of the CCG Financial Accounting Team will the details to SBS for them to create a manual invoice for upload onto the supplier record which is automatically matched to the pre-payment Ready to Pay Files Ready to pay files are files in a specified format that allows the CCG Financial Accounting Team to upload approved payment details for multiple payments for example to pay mental health assessment Page 11 of 16

12 claims, collaborative payments to doctors and fostering & housing medicals Cashflow Each time that SBS prepares a payment run it will update the cashflow forecast. No payments will be made if there are insufficient funds available on the day that the payment run is due to be made. If there is a likelihood of insufficient funds being available either to meet a present or future payment runs the Senior Finance Manager or Head of Accounting will liaise with SBS. Page 12 of 16

13 Appendix A Delegated Limits For Purchasing Goods and Services Value ( ) Requirement Purchasing and supply of goods and services (limits relate to total contract value and exclude VAT) 501-5,000 At least 2 verbal or written quotations 5,001-50,000 At least 3 written quotations For non-clinical services and patient transport services: at least 4 written quotes against a 50, ,176 written specification with detailed option appraisal For clinical services: at least 4 written quotes against a written specification with detailed option 50, ,148 appraisal Above 164,176 (non-clinical services and patient transport services) and 589,148 (clinical Full Tender process limits apply to the full term services) of the contract and exclude VAT Acceptance of Quotes/Tenders < 50,000 Director and Award of Contract (limits Director or AO Livewell Committee to relate to total contract value and recommend/finance & Performance Committee to exclude VAT) 50, ,000 agree CFO or Accountable Officer Livewell Committee and Finance & Performance Committee to 500,001-1,000,000 recommend and CCG Board to agree Accountable Officer & CFO or Director Livewell Committee and Finance & Performance Committee to recommend, CCG Board to agree > 1,000,001 and contract requires sealing Page 13 of 16

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15 Exceptions to the Use of Official Orders Appendix B 1. Telephones including mobile phones (see section of purchase of ICT equipment including mobiles) 2. Agency Staff 3. Service level agreements with other NHS organisations 4. GP Practice staff 5. GP In-house services 6. GP Locum fees 7. GP Re-imbursements 8. Joint Finance / Grant payments to voluntary bodies including Section 28A and 31 payments 9. Collaborative fees orange badges, medical examinations, child fostering, infectious diseases 10. Nursing Home clients 11. Learning difficulties clients 12. Corporate Hospitality 13. Fees for disciplinary hearings i.r.o. doctors and dentists 14. Franking Machine Top Ups 15. Professional Fees 16. Petty Cash 17. Village Hall Rental 18. Payroll Deductions UNISON, Council tax 19. Locum travel claims 20. Radiopagers 21. Ambulance Car Service Claims 22. Reimbursements to Staff including travel expenses and eye tests 23. Payroll adjustments including long service awards. Page 15 of 16

16 Appendix C CONTACT DETAILS Provide Procurement Department telephone Provide Procurement Department fax Provide Procurement Department PROVIDE.procurement@nhs.net All requisitions and purchase order queries should be either ed or faxed Attain Eagle Street London WC1R 4AQ All queries to be addressed to: Sarah Clark Senior Procurement Manager Sarah.clark@attain.co.uk or mobile Mid Essex CCG Head of Accounting Rob Chivas robchivas@nhs.net Senior Finance Manager Gill Speed Gillian.speed@nhs.net Page 16 of 16