Requisitioning Procedure

Transcription

1 Requisitioning Procedure 1. Introduction This procedure considers expenditure by Future Directions CIC. 2. Relationship of these Procedures with the Standing Financial Instructions The Standing Financial Instructions (SFIs) that have been adopted by the Board lay down a basic framework which regulates the financial activities of Future Directions CIC. All Future Directions CIC s employees are required to adhere to the SFIs, and these procedures are consistent with the rules laid down in the SFIs. The following requirements from the SFIs are of particular significance and form the ground rules from which these procedures have been derived:- All goods and services will be ordered through official orders. Employees will always obtain the best Value for Money. Where the advice of Supplies is not acceptable to the requisitioner, the Director of Finance will be consulted. The Director of Finance will retain a list of employees eligible to order goods and services. The Director of Finance will set down thresholds above which quotations or tenders will be sought as detailed in the Schedule of Delegation of Authority. Pre-payments (i.e. payments in advance of the receipt of the goods or service) can only be made after a written report has been sent to the Director of Finance and the Director of Finance has approved the prepayment. Where consultancy advice is obtained, this is in accordance with guidance issued by the Department of Health. No order shall be made to any firm which has been made an offer of gifts to Directors or employees other than those of a trivial nature (e.g. calendars) or conventional. No requisition/order should be placed for any item for which there is no budget provision unless authorised by the Director of Finance or Managing Director. Verbal orders must only be issued very exceptionally. A schedule of officers eligible to place verbal orders will be retained by the Managing Director and should only be used in cases of emergency or urgent necessity. Verbal orders must be followed by an official order, marked Confirmation Order. Supplies will inform the Director of Finance immediately of any instance where there is the possibility of non-compliance with the Standing Financial Instructions. 1

2 3. Detailed Procedure Future Directions CIC Expenditure 3.1. Completion of Requisition Non Stock A non stock requisition is completed by the officer requiring the service (see specimen at Appendix A). The following is entered onto the requisition: Quantity required. Description/specification of goods and services required. Supplier s name and address (and catalogue number if required). Financial code this should be an 8 digit code. Contact the Management Accounts section of the Finance Department in cases of uncertainty. Name/department/telephone number of the requisitioner should be added. Unit price or the contract or quote reference. If VAT is reclaimable please indicate on requisition. In exceptional circumstances it may be necessary to have a cheque with the order. This must be clearly stated on the requisition Completion of Requisition Stock Items from Logistic Warehouse Complete the requisition in accordance with the instructions for use set out on the top left of the requisition (specimen at Appendix B), by entering: Department Transfer point Number of lines completed Scheduled delivery day and date Description as in the Regional Stores Catalogue Catalogue code(s) Units required 3.3. Authorisation of Requisition All requisitions (stock and non stock) must be signed by an employee with the delegated authority to commit expenditure (see Appendix C). The Managing Director will retain a list of employees who have the delegated authority to authorise requisitions. The signatory can only authorise requisitions where the expenditure will be shown against the signatory s own budget. The authorised signatory must ensure that the items requisitioned are fit for their intended use, and that value for money is obtained while retaining due regard for quality. Any requisition which does not have the signature of an authorised employee will be returned to the requisitioner. Completed requisitions will be forwarded to the following: Non Stock Requisition Supplies Department, Royal Blackburn Stock Requisition - Facilities 2

3 3.4. Requests for Petty Cash Petty Cash requests are ed to the service Financial Adviser who will arrange payment into Future Directions CIC s office bank account accordingly. The funds can then be used for payments by debit card or drawn out to top up the petty cash for the office Advice of Supplies Requisitioning employees must obtain value for money. Where the requisitioner does not accept the advice of Supplies staff, this matter should be discussed with the Director responsible for the relevant budget, in the first instance. If the issue is still not resolved, a report should be prepared for the Director of Finance indicating the reasons for the refusal to accept Supplies advice Verbal Orders Verbal orders will only be made in extreme circumstances. Such orders can only be made by officers authorised to do so by the Managing Director. A documented record of all officers with the authority to place verbal orders shall be kept. A requisition marked Confirmation Order must be completed as soon as possible after the verbal order has been placed, setting down the details of the telephone order, (e.g. date, who was contacted). If the goods or services have already been received when the requisition is completed, indicate on the requisition Confirmation Order Goods Already Received. Directors will set down a system for monitoring the number/value of verbal orders in order to ensure that such orders are only made in exceptional circumstances. Where verbal orders are placed, an order number should be obtained from NHS Supplies, who will also require the requisition number. The order number must be quoted to the supplier as a reference. Any failure to inform the supplier of the order number could cause the confirmation order to induce a duplicate supply and may result in Finance not processing for payment Pre-payments Pre-payments are payments made in advance of the goods or services being received by Future Directions CIC. Pre-payments above a certain threshold must be approved by the Director of Finance following the submission of a report from the requisitioning department. The Director of Finance will lay down the threshold (see Appendix C). No pre-payment above this threshold shall be made until approval has been gained from the Director of Finance. The report to the Director of Finance must indicate the reasons for the pre-payment, and illustrate the costs/benefits of the pre-payment. It should also consider the arrangements if the supplier is unable to provide the goods/services Offers of Gifts and Suppliers No requisition shall be placed with any firm which has made an offer of gifts, reward or benefit to Directors or employees, other than:- 3

4 Gifts are of a trivial and inexpensive nature (e.g. calendars) or conventional hospitality (e.g. lunch in the course of a workingvisit). If there is any uncertainty at all over whether the gift can be considered as falling outside [a] or [b] above, then the matter must be discussed with the Director of Finance Quotations and Tenders Transactions over certain thresholds require quotations and tenders to be submitted and evaluated. These thresholds are set down in the Standing Financial Instructions, and are repeated in Appendix C. The requisitioner is not required to undertake the quotation or tendering process, as this is completed by NHS Supplies. Tenders and quotations should only be obtained from approved contractors or suppliers Request to Waive Standing Financial Instructions Future Directions CIC should ensure that competitive tenders or quotations are sought for goods and services in line with agreed financial limits as set out in the Standing Financial Instructions. However, there may be occasions due to special circumstances when permission is sought to waive Standing Financial Instructions. Further information can be obtained by contacting the Director of Finance for further guidance. NB: For requisition for supplies non stock items, see Procedure Manual For regional warehouse stock requisition, see Procedure Manual 4

5 Requisitioning Procedure Appendix A MONETARY THRESHOLDS AND LIMITS FOR FUTURE DIRECTIONS CIC EXPENDITURE Authority to Spend The following thresholds are set down in the Standing Order Statutory Financial Instructions and Delegation of Authority document which is a Board approved document. Maximum on any one item Chairman/ Managing Director 250,000 Any Single Director 50,000 Director of Operations/ Company Secretary 25,000 Directors can further delegate the authority to spend. Future Directions CIC Board Administrator maintains a list of officers who have delegated responsibilities and their approved limits. Service Managers have delegated the following limits within their services: Role Approved Limit Team Manager 500 Operational Network Manager 1,000 Operations Manager/ 5,000 Service Development Manager Quotations, Tendering and Contract Procedures Director of Operations/ Obtaining 2 minimum verbal quotations for Company Secretary goods/services from 5,000 to 24,999. Any Single Director Obtaining 3 written quotations for goods/services from 25,000 to 49,999. Chairman/ Managing Director Obtaining 3 written competitive tenders for goods/services from 50,000 to 249,999. Chairman/ Managing Director Obtaining 5 written competitive tenders for goods/services over 250,000 of which a minimum of 3 must be returned. If less than 3 are returned then a quorum of Board is to approve the tender. Petty Cash The maximum that can be requisitioned, except in exceptional circumstances, is 300 for any one requisition. 5