A joint report of the Executive Member for Environment and Finance and Governance and the Director of Finance was presented to provide a summary of the Council’s procurement activity over the last financial year including compliance with Standing Orders, practice changes and contract awards.

The Covid-19 pandemic had a significant impact on procurement activity during 2020/21 and there had been some significant challenges, which the procurement team had handled positively with suppliers to ensure continuity of provision and services. 

The table at paragraph 4 of the submitted report showed the thresholds as at 1st April 2020 to 31st March 2021, which all procurement activity should adhere to.  It was clarified that the thresholds were set by OJEU and Central Government.  Some contracts allowed for a variance which might go over the threshold if there were sudden increases in supplies such as fuel but this was closely monitored.

One of the consequences of the Covid-19 pandemic had been the extension of 77 contracts, since it was not possible for formal tenders to be carried out.  These extensions were compliant with the Public Contract Regulations and the relevant PPN’s and contracts were formally varied. These procurements were being re-scheduled into future tender pipeline.

Throughout the pandemic the Council had worked to ensure that services continued without disruption and that suppliers were supported as much possible.  There were currently 475 active contracts recorded on the Council’s Contract Register.

In line with Standing Orders there were occasions where an exemption from Standing Orders could be obtained through a fully transparent approval process.  During 2020/21 there were 48 exemptions approved, compared to 60 in 2019/20.

2020/21 breaches were minimal due to COVID restrictions reducing the procurement activity being undertaken by the Council. However there were recent occasions where standing orders had not be adhered to and assurance measures were being undertaken now to deal with them.   Further training would be beneficial for staff in order to promote better understanding of the contract procedure rules and the Procurement Manager had been tasked with developing this work.

During 2020/21 the Council spent £7,515,013 via purchasing cards via a total of 25,438 transactions.  The majority of spend continued to be low value with 16,842 (66%) being under £99, 6,621 (26%) were £100 to £499.99 and 1,975 (8%) were over £500.  Rebates for the cards were paid 1 December to 30 November and in December 2020 the Council received a rebate of £67,345.83.   A further rebate would be received in December 2021.

Previous audit recommendations in relation to purchasing cards had been implemented and this had strengthened monthly reporting to cardholders and line managers on the reviewing of the purchasing cards, and cards being cancelled where the Council’s policy was not being adhered to.  It was confirmed that purchasing cards were allocated to individuals only and that a pin number was usually required to make a purchase.

Following Executive approval, the Council intended to procure the Supplier Incentive Programme (SIP) (also known as an Early Payment System) with Oxygen Finance via the NEPO Framework in order to enable early as possible payment options for all suppliers in return for a rebate payment.  This project would have a number of efficiencies both in relation to practice as well as financial and would result in decreased use of purchasing cards.  It was anticipated that the SIP would be live by the end of the financial year and more detail on its performance would be provided in next year’s report.

Local spend continued to be monitored against the Council’s target, and work to enhance reporting continued to be developed.  A new report had been designed in Business World and the Data Team had assisted in transferring that report into PowerBI in order to provide a visual data dashboard on spend performance.   A summary of performance during 2020/21 was included at paragraph 31 of the submitted report.

AGREED that the information provided was received and noted.