Audit Committee, 1 March 2004, Report 8

Windows User

Sujets

• management

Informations

• Publié par: Zowyir
• Nombre de lectures: 31
• Langue: English

Extrait

Agenda Item No:

Report No:

Report Title:

Value For Money (VFM) Review of IT Procurement

Report To:

Audit Committee

Date: 1 March 2004

Ward(s) Affected:

All

Report By:

Director of Finance and Community Services

Contact Officer(s):

David Heath, Chief Internal Auditor

Purpose of Report:

To present to Councillors the detailed proposals for the VFM Review.

Officers Recommendation(s):

1

To approve the brief for the VFM Review as set out at Appendix A of this report.

2

To recommend to Cabinet the brief for the VFM Review.

Reasons for Recommendations

1

The Audit Committee is empowered to recommend to Cabinet the subjects of

VFM Reviews, to agree the detailed content of the reviews and receive reports

on the outcomes.

The Audit Committee is requested to approve the scope and

objectives of the planned Review.

Information

2

At its meeting on 1 December 2003 this Committee approved a proposal for a

VFM Review of IT Procurement to be carried out as part of the annual

programme of audits for 2004/2005.

The Committee requested that a detailed

brief for the Review be brought to the Committee meeting in March 2004.

3

An audit brief for the VFM Review has been drawn up and is submitted for the

Committee’s approval.

4

The annual plan for 2004/2005 includes 60 days for VFM Reviews.

It is

proposed that the Review of IT Procurement be regarded as the major VFM

Review for the year, and be allocated 40 days from the budget.

Financial Appraisal

5

The VFM study may identify cost savings, but at this stage it is not possible to

say what these might be.

Environmental Implications

6

I have completed the Environmental Implications Questionnaire and there are

no significant effects as a result of these recommendations.

Background Papers

7

None.

Appendices

8

The details of the proposed VFM Review are given at Appendix A.

Appendix A

AUDIT BRIEF

VALUE FOR MONEY (VFM) REVIEW OF IT PROCURMENT

Scope of Review

1.2 To carry out a VFM Review of the procurement of IT equipment and related

goods and services with the aim of identifying ways of improving the procedures

and achieving possible savings.

1.3 The review will cover:

ƒ

Policies and procedures for the procurement of equipment, software,

consumables, maintenance and consultancy necessary for the provision of

the Councils IT services.

For the purposes of this review the term equipment includes desktop equipment

(PCs, printers, faxes, modems) servers, network and communication

equipment.

Objectives of the Review

2.1

To determine the value of IT procurement over the classes of goods and

services in the years 2002/2003 and 2003/2004.

2.2

To determine and document the procedures for identifying the need for IT

equipment and applications, and for deciding the most appropriate means to

meet the needs.

2.3

To determine and document the current procurement methods applied to IT

goods and services.

The procurements methods include:

ƒ

Selection of suppliers including tendering arrangements (where

appropriate).

ƒ

Ordering procedures.

ƒ

Arrangements for the receipt of goods and services.

ƒ

Methods of payment.

ƒ

Fixed asset register/inventory procedures.

2.4

To review the extent of compliance with the Financial and Contract Procedure

Rules contained within the Council’s Constitution, including EC procurement

legislation.

2.5

To review the budgetary control procedures and the arrangements for the

provision of management information applied to IT procurement.

2.6

To benchmark with other Sussex Authorities to determine their approach to IT

procurement and assess the viability of alternative methods, including

consortium, partnerships and government approved schemes.

Notes

VFM Reviews may not always identify significant savings or ways of improving the

service.

Where departments provide an economic, efficient and effective service,

only minor improvements may be identifiable.

VFM Reviews are not solely concerned with reducing costs.

If reduced costs mean

objectives and goals not being accomplished then value for money is not being

achieved.

David Heath

Chief Internal Auditor