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Contact Officer | Director, Corporate Finance, Finance and Resource Planning |
Approval Date | 02/11/2010 |
Approval Authority | Executive Director, Finance and Resource Planning |
Date of Next Review | 01/11/2013 |
5.3.1 Policy statement
5.3.2 Application
5.3.3 Roles and responsibilities
5.3.4 Objectives
5.3.5 Principles of sustainable procurement
5.3.6 Procurement strategic planning
5.3.7 Procurement approach
5.3.8 Procurement methods
Modification History
5.3.1 Policy statement
The QUT Purchasing Policy is guided by provisions outlined in
- Financial Accountability Act 2009
- Financial and Performance Management Standard 2009
- Public Sector Ethics Act 1994
- Queensland Government State Procurement Policy 2010
- Australian New Zealand Government Procurement Agreement.
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5.3.2 Application
This policy applies to the acquisition and supply of all goods and services, including contractors and consultants, to QUT.
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5.3.3 Roles and responsibilities
Authority and approvals
Procurement within the University is primarily decentralised. Faculties, institutes and divisions are responsible for their individual purchasing requirements, and are guided by University-wide procurement policies and procedures, which are administered by Corporate Finance. Staff must not enter into any financial commitment unless funds are available and the appropriate approval obtained. The specific financial management authorities and delegations are included in the MOPP Schedule of Authorities and Delegations (Appendix 3). Internal controls are implemented through the separation of purchasing authorities from payment functions.
Training
QUT has identified four levels of purchasing involvement. Each has a requirement of a particular level of skill and or training which staff are required to possess prior to undertaking associated purchasing tasks.
The minimum requirements are listed in the Financial Management Practices and Procedures Manual (chapter 4). It is the responsibility of each organisational area to ensure that purchasing staff have the appropriate level of training or equivalent experience for their level of purchasing involvement.
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5.3.4 Objectives
Advance Government priorities
QUT will seek to advance Queensland Government ambitions and targets, focused on improving Queensland's economy, community and environment. This includes ensuring that competitive local suppliers are given a full, fair and reasonable opportunity to supply the University.
Achieve value for money
QUT will seek to achieve value for money in all its purchasing. Value for money is the optimum combination of quality, performance and price across the life of the goods or service. Decisions should not be made on lowest cost alone.
Ensure probity and accountability for outcomes
QUT will conduct its purchasing activities with probity and in accordance with relevant legislation. Employees must comply with the following four principles
- Fairness and impartiality
- Transparency of process
- Confidentiality and security of information and materials
- Effective management of conflicts of interest.
An independent probity auditor or advisor must be engaged for goods and services procurements above $10 million, and for construction procurements above $100 million. The engagement of the Probity Auditor will be coordinated by the Audit and Risk Management Services.
Basic details of all awarded contracts and standing offer arrangements with a value of $10,000 and greater, over the initial term of the contract, must be published on the Queensland Government Chief Procurement Office's eTender website within 60 days of the contract being awarded. Additional details will be required for those with a value of $10 million and over.
Integrate sustainability principles
QUT will assess the economic, social and environmental impacts of the supply of goods and services. Through purchasing, QUT will actively influence sustainable development by preferencing businesses and industries that demonstrate sustainability.
Handling Complaints
The University is required to have in place a central point of contact for suppliers unable to find resolution of complaints within the relevant faculty or division. Concerns of this nature should be formally addressed in writing to the Procurement Manager, Finance and Resource Planning Division. The process for handling complaints will follow guidelines set out in the Queensland Government Chief Procurement Office Complaints Management document.
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5.3.5 Principles of sustainable procurement
All procurement decisions should be based on the principles of sustainable procurement.
Sustainable procurement is the process of acquiring goods and services that
- Meet the users' needs (functional, fit for purpose)
- Deliver long term 'value for money' by considering whole-of-life costs
- Maximise social and economic benefits
- Minimise damage to the environment and health.
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5.3.6 Procurement strategic planning
Faculties, Institutes and Divisions are responsible for providing information on planned significant purchases through the strategic planning process which links to the QUT Blueprint.
Corporate Finance is responsible for reviewing and preparing QUT's Corporate Procurement Plan which links the University's procurement to its institutional plan. QUT's Corporate Procurement Plan is reviewed annually and prepared on a triennial basis. The Plan outlines QUT's procurement approach and strategies, and provides information on QUT's procurement profile, planned significant purchases and forward procurement schedule.
The forward procurement schedule must be published and maintained on the Queensland Government Chief Procurement Office website (eTender) by Strategic Procurement.
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5.3.7 Procurement approach
The principles and objectives of this policy are supported by the Financial Management Practice and Procedures Manual (Chapter 4 - Expenditure - Purchasing). The acquisition and supply of all goods and services to QUT must comply with these procedures.
The purchasing approach to be undertaken when acquiring goods or services will be dependent upon the value and risk associated with the purchase. The financial delegates outlined below are to be used only as a guide. Approval must be obtained in accordance with the MOPP Appendix 3 (Schedule of Authorities and Delegations). Purchases that are of high risk to QUT due to difficulty of supply or significant sustainability impacts require a Planned Procurement Approach irrespective of value.
Value of Purchase |
Procurement Approach |
Method |
$5,000 and below |
One quote |
One quotation is obtained (QUT Corporate Card is the preferred method of payment) |
$5,001 to $20,000 |
Two quotes |
Invite at least two suppliers to submit offers for supply of the requirement or use Planned Procurement Approach |
$20,001 to $100,000 |
Three quotes |
Issue written invitations to offer to at least three genuine suppliers, requesting written responses or use Planned Procurement Approach |
$100,001 and above |
Planned Procurement Approach |
A Planned Procurement Approach is to be undertaken. |
To ensure that the rationale for any purchasing decision is transparent and auditable, appropriate documentation must be maintained.
Health and Safety Considerations
All goods and services purchased by the University must be safe for use by staff and students and comply with the Queensland Workplace Health and Safety Act 1995 and relevant standards. Purchasers must consider if there are any health and safety requirements associated with the purchase.
Engagement and Use of Consultants
A consultant is an organisation or individual contracted to perform a specific task and to provide specific expert advice as an independent contractor by exercising his or her own skill and judgment, where the University does not exercise detailed control over the work performed. Detailed procedures when engaging a consultant can be found in the Financial Management Practice and Procedures Manual (Chapter 4). Responsibility Centres must comply with this policy when engaging consultants.
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5.3.8 Procurement methods
The value and nature of the purchase guides the best purchase to payment method.
Petty Cash
Whilst the preferred method of payment for all purchases under $5000 is by Corporate Card, where a vendor does not accept Corporate Card, purchases of individual items under $100, can be made using Petty Cash. Faculties and divisions may establish a Petty Cash Float, to be managed by a suitably trained Finance Officer, for the reimbursement of low value miscellaneous expenses.
Procedures for the establishment, use and reconciliation of Petty Cash Floats are detailed in the Financial Management Practice and Procedures Manual (Chapter 2).
Corporate Card
Corporate cards are to be used for one off low value transactions under $5000 (excluding GST). The Financial Management Practices and Procedures Manual (Chapter 4(B) - Corporate Card) outlines the procedures to be followed when using the Corporate Card.
Purchase Orders
For purchases greater than $5000 or single source low value re-occurring purchases, a purchase order is required to be raised within the Oracle Financial System. It is essential that the purchase order is only issued once the quotation and tender requirements have been met. All executed contracts must have a covering purchase order raised. Once a contract has been executed a purchase order must be raised for the total value of the contract to facilitate the matching of invoices and facilitate commitment and encumbrance reporting.
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Modification History
|
Date |
Sections |
Source |
Details |
11.11.10 |
All |
Director, Corporate Finance |
Policy revised to incorporate sustainable procurement principles; new corporate procurement planning procedures; new financial threshold; and Health and Safety considerations. |
12.07.10 |
G/5.3.3 |
Executive Director, Finance and Resource Planning |
Revised changes in accordance with changes to Chemical management policy (A/9.8) |
19.06.08 |
All |
Acting Executive Director, Finance and Resource Planning |
Policy reviewed - no change required |
17.06.08 |
All |
Director, Corporate Finance |
Updated in accordance with revised legislation (State Purchasing Policy 2000 replaced by State Procurement Policy 2008) |
|
24.07.06 |
G/5.3.5 |
Executive Director, Finance and Resource Planning |
New policy relating to software acquisition (endorsed by Information
Technology Advisory Committee 13.09.05) |
|
06.09.05 |
G/5.3, G/5.3.1, G/5.3.2 |
Executive Director, Finance and Resource Planning |
Revised policy |
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14.10.03 |
G/5.3.4 |
Acting Director, Financial Services |
New policy to ensure compliance with relevant Queensland Government legislation
and best practice. |
|
06.06.03 |
G/5.3.3 |
Acting Director, Financial Services |
New policy to regulate acquisition of chemicals (in line with chemical management
policy A/9.8) |
|
03.02.03 |
G/5.3.1 |
Acting Director, Financial Services |
Revised policy to reflect new purchasing arrangements effective from 20.12.02 |
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21.06.02 |
G/5.3.1 |
Director, Accounting Services |
Revised policy to reflect increase in Corporate Credit Card limit |
|
14.06.01 |
G/5.3 G/5.3.1 |
Director, Accounting Services |
Updated to reflect new State Purchasing Policy |
|
08.05.00 |
G/5.3.1 G/5.3.2 |
Accounting and Business Services Director |
Revised policy (in accordance with GST substantiation requirements) |
|
24.05.99 |
G/5.3 |
Finance Manager |
Updated |
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