1. Appendix B - Member Session Part 2 – Procurement Specifics Legislative Framework Financial Thresholds Corporate Scheme of Financial Delegations Hot Topics (Appendix 3) Waivers, exemptions, breaches Defined circumstances Emergency Expenditure 1

2. We must have regard to European and UK legislation and see our own Financial Regulations in context. Other legislation includes for example, Bribery Act 2010, Localism Act 2011, Freedom of Information Act 2000, Public Services (Social Value) Act 2012 Financial thresholds exist in legislation. eg. Public Contract Regulations Works £4.322M, Goods & Services £172,514 2

3. Financial Thresholds (relating to procurement) Current Financial Regulations (currently live) Procurement Value £ (Total Value not Annual) Method Up to £5,000Value for Money (VFM) £5,000 to £30,000At least 3 verbal quotes (but must be documented) £30,000 to £150,000At least 3 written quotes Over £150,000Formal Tender (open)* Re-drafted Financial Regulations (proposals) Procurement Value £ (Total Value not Annual) Method Less than £30,000At least 1 written quote BOP Financial Regulations £30,000 to £150,000 (to £500,000 for works) At least 3 written quotes ** Over £150,000 (Over £500,000 for works) Invite 5 bidders to tender to secure at least 3 complete tender quotes *** Over Public Contract Regulations. (OJEU thresholds) (Works £4.322M, Goods & Services £172,514) Formal tender (open)* Law * Formal open tender means openly advertised (and if over Public Contract Regulations thresholds this means in the European Journal (OJEU). ** For works only, the method described above applies if the manager is certain supplier can meet requirement. If not certain openly advertise. *** For works only, the method described in the table above applies after an openly advertised Pre Qualification Questionnaire process designed to identify who can definitely meet specification. 3

4. Corporate Scheme of Financial Delegations Appendix 1 of re-drafted Financial Regulations In the same order as the sections in Financial Regulations Sets out the powers and duties delegated to various senior officers (and where members must be involved) Sets out the approved financial limits within which senior officers may conduct the Council’s business 4

5. Hot Topics Appendix 3 of re-drafted Financial Regulations Further navigation tool – to try and eliminate any slip-ups or non-compliance Covers topics that may be high profile or where there has historically been a lack of awareness/clarity Topics like – Appointment of interim staffing, consultants, ex-employees working as a self employed individual or consultant, purchase and disposal of ICT equipment, cancellation of debts, write of debts, establishing new fees and charges, changes to existing fees and charges, reimbursement of staff expenses 5

6. Waivers, exemptions and breaches Reported annually to Audit Committee About 100 waivers, 10 exemptions and 20 breaches per annum. (About 25% of all Council spend) Waivers and exemptions can be obtained in advance of the procurement process if it is not possible to comply with normal financial regulation requirements. Approved by CFO, PH approval also sought if over £150,000 But the Law is the Law ! The number of Breaches are reducing year on year – disciplinary action an option 6

7. Defined Circumstances Recognition that there may be instances where the financial regulations cannot be followed precisely. Proposal to define circumstances where waivers, exemption not required – but control log in place and local auditable evidence required We estimate about half the current waivers won’t be required – keeping the Council moving and allowing scarce resources to be deployed more meaningfully. Some examples – No influence over the supplier eg. utility company, single source supplier on a framework contract, payments in advance, 7

8. Emergency Expenditure Extreme emergencies – such as major incident or natural disaster Immediate danger to life or Council’s assets or interests Freedom to act – as necessary by means that are reasonable under the circumstances Report to CFO and Portfolio Holder within 5 working days Does not allow for accelerated procurement due to urgency – in which case waiver applies 8

9. Any other content Members wish to discuss or have clarified? ? Have we done enough in the non- procurement sections? 9