General Applicability of Purchase to Pay Receiving regulations
The requirements of the normal receiving process as set out on page 21 and on page 68 also apply to ‘receiving’ from stores, unless otherwise provided.
A2.11. Main requirements for receiving goods from stores
The mandatory requirements centre around;
2.11.1. Initial receipt and safe custody of deliveries/collections from stores – this is a key priority and must be appropriately planned for and implemented.
2.11.2. Receipt of appropriate stores issue documentation (equivalent of “Proof of Delivery” in standard Purchase to Pay process)
2.11.3. Checking of goods received for match to stores issue documentation and original requisition 2.11.4. Early notification and resolution of any discrepancies between what was requisitioned and
what was received.
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A2.12. Importance of Stores Issue Documentation that clearly references the original requisition
2.12.1. Stores Issues - Mandatory requirements;
It is the responsibility of the stores manager to ensure that every collection or delivery is accompanied by the appropriate stores issue documentation that clearly shows:
(i.) What goods are being issued from stores and
(ii.) The quantity and value of those goods
(iii.) Clearly references each item to the relevant requisition document
2.12.2. The stores manager must ensure that at time of issue or as soon as possible thereafter that the requisitioner is ;
o Notified of any goods on the requisition not included in the current stores issue, o Advised as to possible alternatives or date when goods will be available etc.
A2.13. Checking of expenditure relating to ‘Stores issues’ on Financial Information System / Accounting System.
2.13.1. Budget Holders and their staff must be in a position to monitor expenditure including expenditure incurred via stores.
2.13.2. It is a mandatory requirement that the level of expenditure recorded as stock issues can be reconciled by the Budget Holder to his/her records of stock requisitioned and received.
2.13.3. Stores issues recorded on the Financial Information System/ Accounting system against cost
centres or Internal Orders (Capital cost centres) must incorporate the requisition number or equivalent.
2.13.4. Appropriate monthly summary and detail reports must be available to and reviewed by Budget
Holders showing stock items issued to them by: Cost centre / internal order
Stock type or category Value
Store / storage location
This is to facilitate efficient tracking by Budget Holders of expenditure back to the original requisition.
2.13.5. Stores managers must ensure procedures are in place to facilitate this requirement.
A2.14. Recording and resolving non fulfilled requisitions
2.14.1. The stores manager and the person(s) approving requisitions must ensure that records are
kept of outstanding or part outstanding requisitions i.e. where some or all of the goods on a requisition have not yet been issued.
2.14.2. On a monthly basis requisitions outstanding for more than 2 months must be reviewed and
closed by both the person approving the requisition and the stores manager.
Co-operation between stores and requisitioning staff is required to enable this process to operate efficiently.
TOPIC 3: Expenditure Approval - More information (2d VI)
A2.15. Expenditure Approval by Non-Clerical Administrative and Management Grades Government and Health Service policy promotes the engaging of clinicians more fully in all aspects of the formal management of the health services they deliver.
These regulations require:
2.15.1. The formal identification and approval of managers who are being delegated authority as Budget Holders and also,
2.15.2. The formal documentation by Budget Holders of the key elements of the purchasing
arrangements in force within their areas of responsibility.
2.15.3. In the context of 2.15.1. and 2.15..2 above there is scope to formally approve non clerical / administrative or management grades as both Budget Holders and expenditure approvers. 2.15.4. Given the diversity of such grades within the health service it is not proposed to prescribe
equivalents to each of the grades listed in the Financial Limits by Grade table above.
2.15.5. Approval of Budget Holders and Expenditure Approval [
Approval of all Budget Holders by ‘Deemed’ Budget Holders and takes effect when notified to the relevant Assistant National Director of Finance.
2.15.6. There is a need to strike an appropriate balance between:
i.
The need to deepen the general management and financial management involvement of staff in grades outside the clerical / administrative and management stream,and
ii.
the requirement to have appropriately trained and experienced staff with sufficient knowledge and understanding to maintain a high level of internal control.It remains the responsibility of the Budget Holder member making the delegation to take all steps necessary to oversee that any person they delegate responsibility to as a budget holder complies with requirement of such delegation.
This is particularly important with regards to managing within available budget and full compliance with these regulations.
A2.16. Requirement for Written Decisions for Expenditure Approval – Use of FIS
(Expenditure Approval on Financial Information System/Accounting system by Nominees)
2.16.1. Whenever practical the aim should be to facilitate the streamlining of the expenditure approval process without any reduction in financial control.
This aim can be achieved by ensuring that managers approving the issue of purchase orders / contracts e.g. do so using the system directly.
2.16.2. The above assumes that managers, including the most senior managers whose approval is required in respect of higher value amounts, are in a position to utilise the FIS to approve purchase orders.
2.16.3. In the event that certain managers do not utilise the System directly, then they must nominate a manager(s), at Grade VI or above, to implement on the System their decisions to approve expenditure.
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2.16.4. The nominated manager will be responsible for approving the necessary purchase orders within the Financial Information System (FIS)/Accounting System to give effect to the senior manager’s decision.
2.16.5. It is good practice to nominate a substitute to address any absences by the nominated person.
2.16.6. A decision to nominate a manager (applies to NHO/LHO managers or above) and any
substitutes in this context must be given in writing and recorded along with the other written decisions of that senior manager.
2.16.7. The relevant Assistant National Director of Finance must be notified of all managers nominated in this way and the Budget Holder for the area must ensure that all such nominations are reviewed at least annually.
A2.17. Formal Written decisions approving expenditure greater than €50,000 – minimum requirements.
Each written decision that approves expenditure must:
2.17.1. Be sequentially numbered with a sequence that identifies both the senior manager signing off on the decision and the year.
2.17.2. Be dated.
2.17.3. Set out a synopsis of, or refer to documents outlining, details of the ‘need’ that is being addressed.
2.17.4. Set out a synopsis of, or refer to documents (preferably attached) outlining details of the procurement options followed to source the goods / services and the recommended supplier(s).
2.17.5. Identify or refer to documents identifying quantity, specification, price, time period and any other relevant details.
2.17.6. Specify total expenditure being approved (showing VAT exclusive, VAT and VAT inclusive amounts) and periods over which expenditure will be incurred.
2.17.7. Be specific as to funding source in place to cover the expenditure.
2.17.8. Detail cost centre(s) and cost element(s) that charges are to be made against (or refer to appropriate documents for same).
2.17.9. Be recommended by a manager of at least grade V level who is not the manager approving the decision.
2.17.10. Be signed by a manager with the authority to expend the amount in question.
2.17.11. Be summarised in an electronic format list as specified by the HSE Chief Financial Officer. Updated copies of this list to be forwarded each month before the third working day of the following month to the relevant National Leadership Team Member and the relevant Assistant National Director of Finance.