Agenda item

We received a report from the Strategic Procurement Manager to update Members on the steps taken to address the recommendations of Internal Audit, with timelines, as discussed at the meeting on 22^nd October 2015.

We were informed that many of the recommendations had been addressed in the Service Improvement Plan 2015/16 and would be actioned by the end of the financial year.  Off contract expenditure had not been covered as it was considered there was a lack of resource to interpret and act on any information that would need to be procured via a third party expenditure software analyst.  Also a bespoke set of procedural rules for schools had not been covered as it was considered they were covered with the current rules.

Following presentation of the information, Members were invited to comment.

A query was raised regarding the Councils policy not to ask for a performance bond to prevent contractors bidding at a low price.  It was questioned if Officers thought it would be a good idea to use performance bonds for single contracts.  In response we were informed that under collaborative arrangements, the lead body would look to scope out what was to be included within any future mini competition arrangements.  With regards to contracts not in the framework agreement it would be down to individual officers to provide comment.

Clarification was required regarding the Internal Audit recommendation 10 - ‘off contract expenditure and inefficient use of resource’.  The Chief Internal Auditor explained that this referred to the review of spending money not part of a contract and ensuring we were using staff resources efficiently to avoid duplication of effort.

It was noted that the report did not address the lower than average procurement score of 31%.  In response, the Strategic Procurement Manager explained that an All Wales Maturity Model was established and that the audit was carried out by set by KPMG, another external audit of the procurement function was due to be carried out between January and March 2016 in order to assess MCC performance.  Welsh Government had provided a guidance pack which could be forwarded to the committee if required.

A Member noted that there were only 2 procurement officers but support was provided through the Internal Corporate Procurement Network.  It was noted that bi-monthly meetings were held with management with the highest spending cost centres, where advice and best practice were communicated.

The Chief Internal Auditor expressed that the actions raised by Internal Audit had been addressed in part.  It was important to support the network group and for Heads of Service to encourage attendance.  The action plan addressed most of the concerns.  It was noted that monitoring the off contract procurement was a key issue, It was key to ensure officers were compliant with contracts which it was felt had not been completely addressed.

With regards to schools, it was important for schools to comply with procurement rules.  It was thought if schools did not have their own precedures, they could adopt our rules.  It was noted that where schools were moving to work in clusters there would be more emphasis on collaborative buying.

It was agreed that it would be useful for Audit Committee to receive an update in 6 months, following the assessment.