Grant Funding In Procurement

Grant Funding in Procurement

Staff that are in receipt of grants from external sources are required to comply with the conditions of offer in the funding allocation letter. In all cases compliance with the Public Contract Regulations 2015 and the EU Treaty of Rome principles of transparency, openness and equality of opportunity in the procurement of services, supplies and works is essential.

Recipients of funding should be aware that a breach of the procurement requirements set out in the funding allocation letter is the most common reason for recovery of grant monies by funding bodies and the procedures must be carefully followed and monitored throughout the project to mitigate the risk of claw back for failing to procure correctly.

Thresholds

To ensure that the procurement requirements of grants are met it is essential that recipients understand the thresholds for obtaining quotes or tenders which may differ to those within the College’s Financial Regulations. Any loss to the College resulting from a failure to meet conditions of funding is the responsibility of the Budget Holder and will be charged against their Department’s budget.

Where no thresholds are stated then the recipient must comply with the College’s Financial Regulations as detailed below:

Total Value Spend Procurement Procedure Approval 

Up to £3,000 (inc VAT)

One quotation

Budget holder

 

£3,001 to £25,000 (inc VAT)

Three written quotations

Budget Holder

 

£25,001 to £50,000 (inc VAT)

Three written quotations

Member of Executive

£50,001 – EU threshold

Invitation to tender – minimum ofthree tenders

Member of Executive

Above EU threshold European Procurement Tender-contact Director of Procurement & Governance

Member of Executive up to £300,000. (Contracts above £300,000 must be reported to Resources & Capital Projects Committee followed by Board of Corporation if in excess of £500,000)

*Current EU Thresholds: Goods & Services £164,176, Works £4,104,394 (excluding vat)

It is important to note that where the services, supplies or works are of a similar type or have similar characteristics then the requirements must be combined to determine the overall value and not split into separate orders over a period of time.

Procurements in excess of £50,000

Where the anticipated value of the grant is in excess of £50,000, the Director of Procurement & Governance must be consulted at the earliest opportunity to ensure competitive tenders are obtained. Research into the most appropriate piece of equipment or service provision should form part of the procurement evaluation process and should not be conducted outside of this process.

The Director of Procurement & Governance will work with staff to ensure that value for money is obtained, grant conditions are met and that a clear audit trail is available should the funding body wish to audit the procurement in the future. This is not intended to delay the process, but to ensure that the College obtains value for money and to prepare the way for ensuring that grant conditions and audit requirements are met.

Procurements less than £50,000

Where the value of the procurement is less than £50,000 and the funding allocation letter determines quotations must be obtained, departments must invite a minimum of 3 written quotations.

In all cases, if you have any queries or are unsure which procurement process to follow please contact the Director of Procurement & Governance who will be happy to discuss your requirements in more detail.

Last modified: Tuesday, 10 January 2017, 4:20 PM