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Financial Management Practice Manual

FMPM 710: Policy

Purchasing

Intent

The University as a Queensland Government ‘Statutory Body’ is required to comply with the State Procurement Policy 2010 and compliance with this policy may be subject to audit by the Queensland Audit Office.

Scope

Function	Responsibility of
Establishment and review of the University’s purchasing arrangements	Executive Director Finance and Resource Planning
Approval of purchase requisitions	Financial Delegate
Procurement of goods or services	Purchasing Officer
Compliance with State Purchasing Policy	Executive Director Finance and Resource Planning
Compliance with the State Government’s Information Technology & Telecommunications Purchasing Framework	Financial Delegate
Compliance with taxation legislation	Executive Director Finance and Resource Planning

Policy

The University must seek to use its procurement activities to advance the following State Procurement Policy 2010 objectives:

Advance the Priorities of the Government:

through procurement activities advance the social, economic and environmental objectives as set out in Schedule B of the State Procurement Policy;

Value for Money:

The University must seek to obtain value for money in its purchasing of goods and services. Services include the engagement of contractors and consultants. The concept of value for money is not restricted to price alone. The value for money assessment must include consideration of:

Contribution to the advancement of Government priorities;
Non-cost factors such as fitness for purpose, quality, service and support; and sustainability considerations;
Cost related factors including whole-of-life costs and transaction costs associated with acquisition, use, holding, maintenance and disposal.

Ensure Probity and Accountability for Outcomes:
- The University must conduct its purchasing activities in a transparent manner which demonstrates probity and accountability. The University must ensure that its purchasing is carried out in accordance with such obligations as may be placed upon it by:
  - The Financial Accountability Act 2009;
  - The Financial and Performance Management Standard 2009;
  - The Public Sector Ethics Act 1994;
  - Other legislative or government policy obligations which may apply to the procurement activities of the University.
Endeavour to ensure that competitive local suppliers are given a full, fair and reasonable opportunity to supply the University.
Deal with suppliers which treat their employees fairly.

Compliance

The Executive Director, Finance and Resource Planning is responsible for ensuring that procurement activities are managed in accordance with the State Procurement Policy 2010, relevant legislation and JCU policies.

This means ensuring:

University compliance with the State Procurement Policy 2010 including:
- the preparation of Corporate Procurement Plans;
- the preparation of significant Procurement Plans;
- integrating the practice of sustainability into the procurement of goods, services and construction;
- reporting on relevant contracts entered into by the University to the Queensland Government Chief Procurement Office;
- the good governance of the procurement function, as demonstrated by an established procurement planning regime which supports the University’s strategic and operational goals; an appropriately structured procurement function; clear management standards embodied in delegations, policies and processes; and appropriate control, monitoring and reporting frameworks;
- that the University’s procurement capability is commensurate with the value and risk of the University’s procurement;
- that processes are in place to review procurement structures as required, to ensure that an appropriate level of senior leadership is in place to manage and drive reform of the University’s procurement;
- that University staff have proper access to procurement training and development activities;
- that University procedures and documentation result in procurement which is transparent and accountable, and able to withstand external scrutiny; and
- a commitment to continuous improvement, as demonstrated for example by innovative practices, and the regular measurement and review of procurement.

The procurement procedures which guide University staff with regard to procurement systems and practices within the University are contained in FMPM 711: Procedure - Procurement Manual. The financial delegation to undertake procurement activity is contained in Appendix A -Delegations.

Policy sponsor:	Executive Director, Finance and Resource Planning
Approval authority:	Finance Committee
Version no:	11-01
Date for next review:	12/2016

Version no.	Approval Date	Date notification sent by Approval Authority to policy@jcu.edu.au	Implementation date	Details
11-01	15/11/2011		15/11/2011	Finance Committee 7/11
08-01	13/11/2008		19/11/2008
04-01	06/2004		06/2004