Summary
SSAFA wants to achieve the best value for money from all purchases and at all times. This means purchases need to be in the correct quality, quantity and within the Scheme of Delegation Framework (see Appendix 3).
Routine purchasing
Budget holders will be informed of their budgets at the latest at the beginning of the financial year. It is their responsibility to manage the budget and to ensure that the funds available are not overspent. A report detailing actual expenditure against budget will be supplied to each budget holder by the Finance Team on a monthly basis.
A quote or price must always be obtained before any order is placed. Central Office (CO) budget holders or senior budget holders (see Appendix 1) may create approved supplier lists for some types of purchases. If a relevant approved supplier list exists, budget holders must obtain the senior budget holders agreement to purchases from alternative suppliers. Any such approved suppliers lists must be provided to the Chief Operating Officer.
All requisitions from budget holders or senior budget holders must be made in line with the CO Scheme of Delegation Framework.
Once authorised budget holders or senior budget holders can place orders with suppliers who have email addresses on the system. If not, orders can be placed by either the budget holder or a member of the CO Finance Team.
The budget holder must make appropriate arrangements for the delivery of goods or services to SSAFA. On receipt, the budget holder must undertake a detailed check of the goods received against the dispatch note (DN) and record any discrepancies between the goods delivered and the DN. Discrepancies should be discussed with the supplier without delay and CO Finance Team informed.
If any goods are rejected or returned to the supplier because they are not as ordered or are of sub-standard quality, the CO Finance Team must be notified.
All invoices should be sent to the budget or senior budget holder for approval. Once approved, invoices must be passed to CO Finance Team to enable payment to be processed.
Commitments and orders up to £1000 excluding VAT
Orders at a value of less than £1000 do not require a Purchase Order. Invoices for goods or services at this level are paid in line with the Scheme of Delegation Framework, see Appendix 3.
Orders up to £5,000 excluding VAT
Where appropriate, orders up to £5,000 require two quotes from different suppliers. Budget holders can place orders up to this value.
Orders over £5,000 but less than £30,000 excluding VAT
Where appropriate, at least two written quotations should be obtained for all orders between £5,000 and £30,000. Written confirmation of oral quotes must be obtained before a purchase commitment is made. Confirmations by email are acceptable. Senior budget holders, as specified in the Scheme of Delegation Framework, must approve these orders before any commitments are made. Budget holders must retain evidence of the quotes for audit purposes.
Forms of Tender
There are 2 types of tender that are recognised by SSAFA, restricted or negotiated. These are described below. Before entering into any tendering process you must discuss your requirements with the Chief Operating Officer. For certain items, or in exceptional circumstances, where only one supplier is identified, you will not need to use the tender process. Pre-commitment, Management Board approval must be obtained.
Restricted Tender. A small number of suppliers are identified and specifically invited to tender. Restricted tenders are appropriate where:
- There is a need to maintain a balance between the contract value and administrative costs.
- A large number of suppliers might come forward or the nature of the goods or service is such that only specific suppliers can be expected to meet our requirements.
- The costs of publicity and advertising are likely to outweigh the potential benefits of open tendering.
Negotiated Tender. Terms of the contract are negotiated with chosen suppliers. For example, where existing contracts are in place with a supplier and the supplier is given the opportunity to reduce their fees. This is appropriate in the following circumstances:
- A restricted tender has resulted in no or unacceptable tenders.
- Only one or very few suppliers are available.
- Urgency exists.
- Additional deliveries by the existing supplier are justified.
Preparation for Tender
When preparing to go out to tender, you should consider:
- Overall requirements of the contract.
- Any objectives that exist for the project or services required.
- Technical skills that may be required to meet the tendering criteria.
- After sales service requirements.
- Form of contract.
IT purchases
All IT purchases should be procured directly by the CO IT Team bearing in mind the above.
All IT purchases should be procured directly by the CO IT Team. An IT purchase can be defined as hardware, software, cloud platform or online service (PaaS – Platform as a Service and Software as a Service respectively). Requirements must be fully documented beforehand, and the most appropriate solution will be chosen. Extra due diligence (and time) will need to be applied to anything with an AI component. (AI Policy)
Company Credit Card
Company Credit Card usage in CO has been restricted. A card will be available from the CO Finance Team for use provided the budget holder has approved expenditure in line with the Scheme of Delegation and provided the request is submitted on a Company Credit Card Authorisation Form (see Appendix 2).
Contracts
Any non-routine tenders or purchases, such as leases, are subject to a contract between SSAFA and the supplier which must be signed before the contracted work begins or the goods are delivered.
The contract(s) should clearly set out (as applicable):
- The scope of work with detailed and accurate specifications.
- The timeline and completion date of the work.
- How quality will be controlled on the work.
- The agreed fees or charges and payment dates.
- Specification of the goods to be delivered.
Copies of all contract documentation must be filed in the Contracts Register which is held by the Chief Operating Officer.
The signing of contracts or leases must be in line with the Scheme of Delegation Framework and be checked by the Chief Operating Officer prior to signing.
Appendix 1
Central Office Budget Holders (BH) and Senior Budget Holders (SBH) are as follows:
- Facilities – Head of Service (Estates and Facilities) (BH) and COO (SBH)
- Finance – Financial Controller (BH) and COO (SBH)
- FMC – DDFMC (BH) and Director of Fundraising, Marketing and Communications (SBH)
- Housing (excluding Gildea House) - Head of Service (Estates and Facilities) (BH) and COO (SBH)
- HR – Director of People and Organisational Development (BH) and COO (BH)
- IT – Director of IT (BH) and COO (SBH)
- Learning and Development – Head of Learning and Development (Volunteers) (BH) and COO (SBH)
- Overseas Health Care – Head of Service (BH) & Director of Health Care Operations (SBH)
- Social Work Services and Specialist Services (including Gildea House) – Head of Service (BH) and Director of Social Care Operations (SBH)
- Volunteer Operations – Deputy Director of Volunteer Operations (BH) and Director Volunteer Operations (SBH)
Appendix 2
Corporate Credit Card Authorisation Form