I have spent hours poring over the video footage of the Metpro Scandal audit committee report. Perhaps the best question was the one from Mill Hill Conservative Councillor Brian Schama. I have transcribed it below as best I can. Many apologies to Mr Schama if I've not quite got it 100% correct as the sound quality wasn't superb and I've amended a few ums and erms etc to make it readable, but I think that the point is clear. Mr Schama being a Conservative clearly has no axe to grind and his questions were a genuine attempt to try and fix the problem. He got a round of applause for this from the public gallery. I think that anyone, regardless of political affiliation, would agree that Mr Schama's suggestions are the way forward, to ensure Barnet Council sort this mess out
----
Why under our contract management procedures don't we have a due diligence template?
Due diligence template – one for each vendor – signed authorization to be given by Head of Finance – and Head of legal department only after template has been submitted and approved – final sign off by the Commercial Director & the Chief Executive. Delegated responsibility for lower contract values, total not annual value. The Template should include
Viability of the company balance sheet and trading account
Checks on directors and staff if appropriate
Confirmation of vendors Public Liability Insurance
A unique vendor code number for each vendor using vendors initials followed by the contract number. I.e. SUP/ 123, where no invoices can be paid without the vendors unique supplier code and the contract number being entered into the LBB Contracts Register.
Confirmation of settlement terms.
Confirmation of vendors Bank payment account and VAT details which cannot be changed during the term of the contract without written clearance from LBB
Confirmation of quality and delivery requirements and penalty clauses for poor performance
Confirmation of the final expiry date for the contract and an indication of the anticipated quarterly or annual call off value until the expiry date – whichever is appropriate.
Confirmation by name of the senior officer responsible for the ownership of the contract
Confirmation of budgetary provision broken down by timeframe i.e. annual or total
Confirmation of the maximum value for a single purchase order allowable for the contract.
Confirmation that competitive tenders had been evaluated prior to awarding the contract.
----
Why under our contract management procedures don't we have a due diligence template?
Due diligence template – one for each vendor – signed authorization to be given by Head of Finance – and Head of legal department only after template has been submitted and approved – final sign off by the Commercial Director & the Chief Executive. Delegated responsibility for lower contract values, total not annual value. The Template should include
Viability of the company balance sheet and trading account
Checks on directors and staff if appropriate
Confirmation of vendors Public Liability Insurance
A unique vendor code number for each vendor using vendors initials followed by the contract number. I.e. SUP/ 123, where no invoices can be paid without the vendors unique supplier code and the contract number being entered into the LBB Contracts Register.
Confirmation of settlement terms.
Confirmation of vendors Bank payment account and VAT details which cannot be changed during the term of the contract without written clearance from LBB
Confirmation of quality and delivery requirements and penalty clauses for poor performance
Confirmation of the final expiry date for the contract and an indication of the anticipated quarterly or annual call off value until the expiry date – whichever is appropriate.
Confirmation by name of the senior officer responsible for the ownership of the contract
Confirmation of budgetary provision broken down by timeframe i.e. annual or total
Confirmation of the maximum value for a single purchase order allowable for the contract.
Confirmation that competitive tenders had been evaluated prior to awarding the contract.
Whilst I agree with the sentiment Roger, Cllr Schama is only repeating most of what is already in the Contract Procedure Rules they failed to follow. The problem is they didn't stick to the rules. Having a checklist is laudable but it needs somebody to enforce the system. I suspect the fault lies in both the payment systems which allows a vendor number to be raised without the checklist being fully completed and the lack of follow up checks to ensure circumstances haven't changed. That is what management are for. To develop a business culture where everyone buys into the system and to deal firmly with those who ignore it. IMHO neither were present.I would have preferred to hear Cllr Schama asking some tougher, more probing questions and to have got some more definitive answers. Personally I think the committee allowed officers wriggle off the hook.
ReplyDeleteI agree: Were it not for Palmer, the most important questions would not have been raised. Too many councillors of both political persuasions are too comfortable,and too complacent, and need a good kick up the a*se. Happy to oblige if called.
ReplyDeleteFor what it's worth, I think Schama wasn't being lazy in this respect and asked the best questions he could think of. The issue for me wasn't really the meeting, but what happens next. I intend to make sure that it isn't put to bed
ReplyDeleteThe lack of a unique supplier number - the backbone of any sensible system - tells me why suppliers are sometimes on the published list of £500+ spending under different versions of their name.
ReplyDelete