Income and Expenditure

136 Ordering/Paying for Goods

• Official orders for work, goods and services shall be in a form approved by the Head of Resources and are to be signed only by Officers authorised by the Business Unit Head concerned who shall be responsible for official orders issued from his Unit.  An up-to-date list of such authorised staff, including specimen signatures identifying in each case the limits of their authority must be readily available. 
• Official orders shall be issued for all work, goods or services to be supplied to the Council except for supplies from public utility services, for periodical payments such as rent or rates, for petty cash purchases or such other exceptions as the Head of Resources may approve.  In cases of emergency, orders may be given orally and confirmed in writing.
• No order for work, goods or services shall be given which will commit the Council to expenditure unless Council authority exists to incur that expenditure. 
• A Business Unit Head may order goods to be supplied or work to be done by requisition on another Council service on any occasion where more favourable terms are obtainable by this method than would be the case by direct ordering.
• Where it appears to be advantageous for supplies to more than one Business Unit to be ordered from one source, the Head of Resources shall be responsible for co-ordinating the arrangements.
• The signatory of the order should be satisfied that the goods and services ordered are appropriate and needed, that there is adequate budgetary provision and that quotations or tenders have been obtained if necessary.  Value for money should always be obtained.
• Goods and services must be checked on receipt to ensure they are in accordance with the official order.  This check should, where practicable, be carried out by a different officer to the officer who signed the original order. 
• On receipt of goods, entries should be made in inventories or stocks records as appropriate.
• Separation of duties at different stages of ordering and paying for goods should be in place.
• Official orders must not be raised for any personal or private purchases, nor should personal or private use be made of Council contracts;
• Any purchase of IT software or hardware (except for consumables) shall require the approval of corporate IT services.
• All orders must be made on the Authority’s official order, with terms and conditions attached.  
• Official order books can be obtained by authorised staff from the Purchasing & Office Services Manager.
• All orders must be recorded, along with delivery and receipt of invoice.

 
136.2  Paying for Goods (click here for Guidance Notes for the processing of creditor invoices for payment)

• Payment must not be made on a photocopied or faxed invoice (unless the original invoice has been mislaid), a statement or other document other than the formal invoice.
• Payments to suppliers should be by the most economical means for the Council.  Direct Debit or Standing Orders may be used with the agreement of the Section 151 Officer. 
• Certification of interim and final contract payments, checking, recording and authorising these payments, the system for monitoring and controlling capital schemes and the procedures for validation of sub-contractors’ tax status must be documented and agreed with the Section 151 Officer. 
• Payment must not be made unless a proper VAT invoice has been received, checked, coded and certified for payment confirming:

• Receipt of goods or services.
• That the invoice has not previously been paid.
• That expenditure has been properly incurred and is within budget provision.
• That prices and arithmetic are correct and accord with quotations, tender, contracts or catalogue prices.
• Correct accounting treatment of tax.
• The invoice is correctly coded.
• Discounts have been taken where available.
• That appropriate entries are made in the accounting records.

• No loan, leasing or rental arrangements must be entered into without prior agreement from the Head of Resources   
• All orders/purchases of goods and services must comply with the Council’s Contract Procedures and the Procurement Code of Practice.
• No payment shall be made to any organisation in advance of goods or services being rendered to the Council except in instances of subscriptions, memberships, training courses etc. 
• All appropriate payment documents must be retained and stored for at least the defined period in accordance with the Council’s “Guidelines on the Destruction of Records” (reference).
• Where possible, payment for goods should not take place before receipt.
• Official orders must be issued for all work, goods or services to be supplied to the Council, except for supplies of utilities, periodic payments such as rents and petty cash purchases.
• Invoices must be authorised for payment by an officer who has completed Form FSC 016 “Persons Authorised to Certify Invoices on Behalf of the Budget Manager”.  (click here for Form FSC 016).