Issue - meetings

To receive a report regarding Retrospective Purchase Orders.

Members were updated on Retrospective Purchase Orders. (RPOs)

During the discussion of this item the following points were made:

·         Reporting for April 2016 stood at 10%.  A total of 97 RPO’s were raised in the month, covering 77 suppliers. 

·         During April 2016 the value of retrospective orders raised was £388,297.51, ranging from £5.20 to £166,267.66.  10 retrospective purchase orders were in excess of £5,000, and of these one was over £50,000.  The largest RPO was raised for £166,267.66 against Capita Business Services Ltd which related to various modules including training, consultancy, licence fee, subscriptions and support; fees were funded through the Schools Block.

·         Councillor Lee proposed that in future the Committee only look at material Retrospective Purchase Orders.  He asked that Officers give consideration as to the appropriate level of materiality.

·         Members asked when a purchase order was required.  Rob Stubbs commented that procurement cards could be used for very small items. 

·         Rob Stubbs indicated that retrospective purchase orders would never be completely eradicated.  For example, with regards to the Public Health sexual health services, invoices were received for services from GPs all over the country, which made it difficult to budget for. 

·         Councillor Jorgensen commented that many of the retrospective purchase orders related to the Schools Block and asked whether the Committee was likely to continue to see this in the future.  Rob Stubbs explained that the relevant finance business partner would be focusing on improving this area.

·         In response to a query from Councillor Margetts, Rob Stubbs indicated that the lowest level of retrospective purchase orders was 7% a month.

RESOLVED:  That the report and the actions being taken to reduce the incidence of raising retrospective purchase orders be noted.