2. Northgate Public Services
Content
What is Procure To Pay (P2P)
Why introduce P2P
Current practices
New Process
Impact on the Council
Timetable
What we will cover in today’s Session
4. Northgate Public Services
Procure To Pay refers to the business processes that cover activities of
requesting (requisitioning), purchasing, receiving, paying for and
accounting for goods and services. P2P is often associated directly with
the technology that supports the processes it describes, which for
Scarborough Borough Councils, is Technology One.
Introducing procure to pay is one of three transformation changes as
part of the review of Financial Services
The P2P process was intended to be introduced as part of the
implementation of Tech1 but was sidelined for a variety of reasons
This process has a number of advantages as part of strong financial
governance and control and will introduce a high degree of discipline in
the procurement of goods and services.
5. Northgate Public Services
Why Introduce P2P
The introduction of P2P to Scarborough Borough Council will help us:-
Increase our understanding on how money is spent
Act upon that information to increase compliance to contracts
Negotiate better pricing
Reign-in maverick buying
Negotiate and take more discounts
Prevent suppliers from overcharging
Increase visibility
With increased Budgetary Control
Understand and control spend
Increase Audit Controls
With more efficient processing, facilitate a cultural change in how we
order our goods/services
6. Northgate Public Services
Current Practices
Some examples of current bad practices include:-
Only 25% of spend going through a PO
Officers not raising orders
Failure to accurately maintain orders
Goods or services being ordered without budget holder approval
Failure to act on workflow items
Suppliers sending invoices without a valid PO number
Users buying goods/services from unapproved, non-contract
suppliers
Officers emailing other officers to raise an order for them
Officers who have received T1 training on how to raise an order
emailing another officer to raise an order
Non compliance with Contract Procedure Rules and Procurement
Guidelines
7. Northgate Public Services
New Process
Some of the processes being introduced include:-
All purchases (few exceptions) will be via a purchase order
Approval will be before spend is incurred not after
Spend will be checked against available budget prior to authorisation
Move to more on line internal catalogues
Engaging with suppliers to support process and informing them that
invoices cannot be processed without an order number
Exceptions
Utility bills – already excluded from PO process and will continue
Emergency purchases, possibly outside of normal working hours. In
which case a retrospective order will need to be raised as soon as
possible after the event.
8. Northgate Public Services
Impact on SBC
More compliance with procurement and financial
procedures and regulations
More efficient, cost effective ways of working
Officers would be required to raise a requisition rather
than send an instruction to another officer to do it for
them
Tighter control on supplier spend
More training and awareness needed to mitigate negative
impacts
9. Northgate Public Services
Timetable
April 2012 – Approval from DT to introduce process
April 2012 – Presentation to SMT
May 2012 – determine detailed technical system requirements
from Tech1
May 2012 – Prepare training workshops
June/July - 2012 – Deliver training on system and change
management workshops to all staff
June/July 2012 - agree measures for system restrictions and
controls
June/July 2012 – write to all suppliers to inform that SBC cannot
process an invoice for payment without a purchase order number
August 2012 – issues guidance notes to all staff and place on
intranet
1st September Go live with process
10. Northgate Public Services
What we will cover in today’s training session
Steps before raising a requisition
How to raise a Purchase Requisition
How Requisitions are approved and released
The receipting
Invoicing process
Frequently Asked Questions (FAQs)
Multiple Choice Questions