Introducing procure to pay

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Procure to pay training

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Introducing procure to pay

  1. 1. Northgate Public ServicesScarborough Borough CouncilProcure to Pay June 2012
  2. 2. Northgate Public ServicesContent  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
  3. 3. Northgate Public ServicesWhat Is Procure To Pay (P2P)
  4. 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. 5. Northgate Public Services Why Introduce P2PThe 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. 6. Northgate Public ServicesCurrent PracticesSome 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. 7. Northgate Public ServicesNew ProcessSome 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. 8. Northgate Public ServicesImpact 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. 9. Northgate Public ServicesTimetable 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. 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

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