Waivers of Standing Financial Instructions Page 1 Finance Intranet Version 1.2 Review Date: Mar 16

1. Overview Page 2 Standing Financial Instructions (SFIs) set out the requirement for all goods and services to follow strict quotation and tender processes where the lowest price quote or tender is chosen. SFIs are financial polices of the Trust which apply to all budget holders and managers. They are available on the Trust Intranet. Section 9 covers quotations, tenders and waivers. Occasionally it is not possible to follow the requirement to go out to quotation or tender – in this case a Waiver of SFIs is required to be completed. SFIs set out the reasons where a tender is not required and the reasons a Waiver can be accepted. The Scheme of Delegation sets out quotation and tender limits. The scheme of delegation sets out which officers of the Trust are authorised to make a range of approvals. It is available in the Trust Intranet. Regardless of SFIs the Trust has a duty to follow EU Procurement Law (OJEU) and must tender all services above the OJEU financial threshold. The current limit for OJEU tenders is £111,676+VAT for the procurement of supplies and services. It is higher for works contracts £4,322,012. Waivers are monitored by the Audit Committee. They are unhappy with the current level of waivers and the reasons they are requested. Breaching the requirement of SFIs is a potential disciplinary matter and managers may be called to account to the Audit Committee if they do not follow procedures.

2. Quotation and Tender Limits (includes VAT) Page 3 Theses limits apply to all goods and services and works contracts. Orders cannot be split to avoid these limits.

3. Reasons for Waiver Page 4 1. In very exceptional circumstances where the Chief Executive decides that formal tendering procedures would not be practicable or the estimated expenditure or income would not warrant formal tendering procedures – must be formally recorded. 2. Where there is only 1 supplier of the required goods or specification of service. 3. Where the timescale genuinely precludes competitive tendering. Does not include failure to plan the work properly. 4. Where specialist expertise is required and is available from only one source. 5. When the task is essential to complete the project. Engaging different consultants for the new task would be inappropriate. 6. There is a clear benefit to be gained from maintaining continuity. However in such cases the benefits of such continuity must outweigh any potential financial advantage to be gained by competitive tendering. 7. For the provision of legal advice and services (subject to conditions).

4. Further Considerations Page 5 1.Framework contracts A waiver may not be required where a framework contract exists. Seek Procurement advice to ascertain this. 2.Maintenance contracts & software Licences Will no longer covered by the Waiver process but will be monitored and should ensure value for money (i.e. no excessive inflation increases). 3. Multi- year contracts Annual orders not subject waiver process if part of a multi-year tender award. 4. Delegated Orders SFIs apply to all orders including delegated orders. 5. Maverick Transactions Invoices not covered by an order will be subject to a new process of scrutiny requiring managers to account to the DoF for failure to follow SFIs.