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A view from the other side – what is it like to be audited?

Gain perspectives on being audited in university procurement operations, including challenges, audit experiences, and key observations.

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A view from the other side – what is it like to be audited?

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  1. A view from the other side –what is it like to be audited? Jonathan Jones  FCIPS Director of Procurement and Insurance University of Birmingham

  2. University of Birmingham 6,600 Staff 31,000 Students

  3. The view from the other side (1) The University Procurement Operation (2) My Audit Experiences (good and bad)

  4. (1) The University Procurement Operation

  5. University Spend Profile

  6. University Spend Profile

  7. University Spend Profile

  8. University Spend Profile Our Zone!

  9. Of the 43%

  10. Of the 43%

  11. Of the 43%

  12. Of the 43%

  13. Of the 43%

  14. Of the 27%

  15. Spend Profile Non Pay Pay

  16. The Annual Cost of Procurement • Procurement Operations = £4,225,000

  17. The Annual Cost of Procurement • Procurement Operations = £4,225,000 • 421 staff spend more than 10% of time on it

  18. The Annual Cost of Procurement • Procurement Operations = £4,225,000 • 421 staff spend more than 10% of time on it • 125 FTE equivalent

  19. The Annual Cost of Procurement • Procurement Operations = £4,225,000 • 421 staff spend more than 10% of time on it • 125 FTE equivalent • 200 procurements at any given time

  20. The Annual Cost of Procurement • Procurement Operations = £4,225,000 • 421 staff spend more than 10% of time on it • 125 FTE equivalent • 200 procurements at any given time • 27,694 orders raised across the campus annually

  21. The Top Table Argument Procurement 27% to 43%

  22. Procurement Challenges • Meeting the demand • Due process and EU Directives compliance • Sustainable procurement • Enough resources • Maverick spend • Savings targets • Performance management

  23. Supplier Awards

  24. (2) My Audit Experiences (good and bad)

  25. What is it like to be audited? • NHS • Orders raised and correct documentation • Spending of Endowment Funds (equipment) • Stock control accuracy

  26. What is it like to be audited? • Birmingham City Council • Savings delivery assessment • Stores annual stock take • Fraud issues / supplier set-up

  27. What is it like to be audited? • Wolverhampton City Council • Forced re-tendering (award criteria) • Pre-approval of suppliers • Contract compliance (DSO overspends) • Audit Committee extracted payments

  28. What is it like to be audited? • University of Birmingham • Two audits for the price of one ! • Purchasing card procedure update • College order raising weaknesses

  29. Key Observations

  30. Key Observations • Over-auditing

  31. Key Observations • Over-auditing • Guilty until proven innocent

  32. Key Observations • Over-auditing • Guilty until proven innocent • Solutions offered too “process driven”

  33. Key Observations • Over-auditing • Guilty until proven innocent • Solutions offered too “process driven” • Work towards a coordinated solutions approach

  34. Common Procurement Problems • Requisitions or orders without a correct contract

  35. Common Procurement Problems • Requisitions or orders without a correct contract • Orders raised incorrectly against a contract

  36. Common Procurement Problems • Requisitions or orders without a correct contract • Orders raised incorrectly against a contract • Suppliers being added to the system

  37. Common Procurement Problems • Requisitions or orders without a correct contract • Orders raised incorrectly against a contract • Suppliers being added to the system • Savings identified not transferring to budgets

  38. Common Procurement Problems • Requisitions or orders without a correct contract • Orders raised incorrectly against a contract • Suppliers being added to the system • Savings identified not transferring to budgets • Tendering weaknesses

  39. Common Procurement Problems • Requisitions or orders without a correct contract • Orders raised incorrectly against a contract • Suppliers being added to the system • Savings identified not transferring to budgets • Tendering weaknesses • Contract award weaknesses

  40. Thank Youj.jones.3@bham.ac.uk

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