Renfrewshire Council staff have not always been following the rules when buying goods and services worth between £2,000 and £25,000, according to the council's own auditors.

An internal audit of how council services handle these smaller purchases has been given a "limited assurance" rating, the second-lowest of four grades. The findings go before the council's Audit, Risk and Scrutiny Board on Monday (2 November).

What the auditors found

Auditors picked a random sample of purchases in that price range and tested them against the council's procurement rules. They found occasions where officers:

  • did not check whether the council already had a contract or framework agreement in place before buying;
  • did not estimate and write down the total expected cost of a purchase;
  • did not get three competitive quotes, or use set criteria to judge them;
  • did not make sure more than one person was involved in approving the purchase;
  • did not consistently tell unsuccessful suppliers the outcome; and
  • did not keep quotes, scoring records and notes explaining why bids were accepted or rejected.

The report warns that not checking for existing contracts "weakens the Council's assurance over achieving value for money, fair competition, and compliance with procurement policy," and that the missing paperwork limits the council's ability to show it followed the rules and to defend its decisions.

Auditors did say the rules themselves are clear: the procedures are set out in the council's Standing Orders Relating to Contracts, with guidance that is easy to find and clearly presented on the staff intranet. The problem was that they were not always followed. Four "important" recommendations and one "good practice" recommendation have been made.

What the council is doing

In its response, management says a new online training module is being prepared to take staff through the correct steps for a purchase under £25,000, with communications going out to all services before it launches. Templates are also being drawn up so staff can record the quote and evaluation process properly, including having more than one officer involved where possible, although the council notes that some flexibility will be needed in smaller teams. All managers will be reminded of the existing guidance, which will be reviewed and updated if needed.

Other audits

Two other audits completed between July and September came out better. The council's handling of non-domestic (business) rates, which it also runs on behalf of East Renfrewshire Council, was rated "reasonable", with auditors finding satisfactory controls and only a couple of delays in processing rates relief applications. A review of the Housing Assurance Framework received the top "substantial" rating, with no recommendations.

Image: Paisley Town Hall and County Square.