East Lancashire Hospitals NHS Trust
How to Order
Goods & Services
East Lancashire Hospitals NHS Trust
Customer Procedures Guide – An Introduction
From identifying the need to order goods or services – to those goods and services
being available to you at point of use, can involve numerous people or stages of
activity. At each stage there is a risk of error and delay. The simple task of ordering
goods and services can become problematic, with a risk to the quality of your service
and to patient care, if goods and services are not available to you when you need
There is often a perception that the process of ordering goods and services can be
bogged down in bureaucracy, more often than not because of a lack of
understanding of the procedures that must be followed and the reasons why these
procedures exist. They exist to ensure that value for money is obtained in spending
all public funds and that this expenditure is appropriately managed.
As all members of staff are directly or indirectly affected by the Procurement
Department’s activity, this document offers guidance in the operation of procedures
which should aid understanding of the stages involved in procurement of goods and
This guide forms part of and is consistent with the Trust’s Standing Orders and
Standing Financial Instructions. All staff involved in the obtaining of goods,
works and services of any description must ensure they have read and comply
with this guide and the following documents:-
1. Trust’s Standing Orders, Standing Financial Instructions and Scheme of
2. NHSE HSG(93)5 – Standards of Business Conduct for NHS staff.
The guide is intended to be customer friendly whilst still incorporating the
basic rules to be complied with. I hope you find it a helpful guide – please keep
it to hand. I welcome your comments on how we can improve for any future
Head of Procurement
Telephone: 01254 732519 (ext 82519)
East Lancashire Hospitals NHS Trust
Customer Procedures Guide
1. The Procurement Department 5
Procurement Landscape 5
Who Are We? 6
What Do We Do? 9
2. The Trust’s Rules 10
2.1 Authorisation 10
2.2 Competition 10
2.3 Quotations and Tenders 11
2.4 Waiving of Competition 12
2.5 Single Tender Waiver Guidance Notes 12
2.6 Official Orders 13
2.7 Delegated Ordering 13
2.8 Delegated Purchasing 13
3. Procurement of Goods and Services from 13
3.1 General Background 13
Service Continuity Flowchart 16
3.2 Ordering Arrangements 17
3.3 Contract Law 19
3.4 Contract Law – “Do’s and Don’ts” 19
3.5 Completing a Non Stock Purchase Requisition 19
3.6 Expediting Orders 20
3.7 Purchasing Goods from Charitable Funds 20
3.8 Visits by Companies’ Sales Representatives 20
3.9 Trials of Equipment and Consumables 20
4. Obtaining Goods from NHS Supply Chain 21
4.1 General 21
4.2 Delivery and Requisition Schedule 21
4.3 Emergency Orders 22
4.4 On-line Ordering 22
5. Goods Receiving Procedure 22
5.1 Receiving Stock Items from NHS Supply Chain 22
5.2 Receiving Direct Supply Items 23
6. Goods Return Procedure 23
6.1 Returning Goods to NHS Supply Chain (Runcorn) 23
6.2 Returning Goods to Suppliers 24
7. Responsibilities 24
7.1 Of Procurement Staff 24
7.2 Of Customers 25
8. Procedure for High Value Procurement 26
8.1 Introduction 26
8.2 Authorisation 26
8.3 Competition 27
8.4 Audit Trail 27
8.5 Procedure and Business Case submission 28
8.6 Report to the Director of Finance 28
9. Sponsorship 29
10. Disposals 29
Appendix 1 NHS Supply Chain Out of Hours Service 31
Appendix 2 Bribery Act Compliance – A Guide 33
Appendix 3 Procedure for Disposal/Sale of 36
Appendix 4 Key Performance Indicators – ELHT 43
1. The Procurement Landscape
Regional Body, Undertake
A group of Organisations
National Body National Body, Undertake
Corporate Contracting for
Contracts available A group of
to the NHS Organisations
Acute Trusts National Body,
working to Negotiate
standardise SAP NHS National
product Cohort 10 Supply Contracts
/services l Operating Chain
Central team Procurement
liaising with Team
all bodies first (P2P) Financial
point of Service
contact CHT Partner
ABS Calderdale &
System Provider Trust Group
for Finance and model partner
Who We Are
The Procurement Department incorporates Purchasing/Contracts,
Customer Services, Purchase Order Processing and e - Enablement.
The Procurement service is provided to East Lancashire Hospitals NHS
Trust and to eight other Trusts by means of a service level agreement:
Lancashire Care Foundation NHS Trust (LCFT)
Calderstones Partnership Foundation NHS Trust (CPFT)
NHS East Lancashire (NHSEL)
NHS Blackburn with Darwen (NHS BWD)
NHS Blackpool (NHSBPOOL)
NHS North Lancashire (NHS NLANCS)
NHS Central Lancashire (NHSCLANCS)
NHS Northwest (NHSNW)
The department is based at Royal Blackburn Hospital.
Tel: 01254 733173 - External & 83173 - Internal
Fax: 01254 732829 – External & 82829 – Internal
82519 Linda Longton Head of Procurement
Customer Services via Helpdesk
Jade Biggs – Procurement Assistant
Munir Rasul - Procurement Assistant
Nafeesa Patel (Stock) - Procurement Assistant
Main Helpdesk - 01254 733173 - External & 83173 – Internal
Stock Helpdesk - 01254 733033 - External & 83033– Internal
Departmental Website: www.elpd.elht.nhs.uk
The main responsibilities of Customer Services are to provide a
responsive Customer Service Helpdesk facility as the frontline for
advising, taking and resolving routine problems. They are also responsible
for all NHS Supply Chain requirements including Logistics Online (LOL)
their dedicated online ordering service accessed via
Mandy Hanson – Deputy Head of Procurement - Contracts
Paul Stacey – Senior Buyer
John Nelson – Senior Buyer
Sandra Cockell – Lead Buyer/Catalogue Manager
Michelle O’Brien – Lead Buyer /Catalogue Manager
Sue Maudsley – Lead /Buyer
Shaz Azam – Procurement Analyst
Sam Whitney – Procurement Assistant
The Contracts Team manage and organise all contract activity relating to
non pay expenditure across a wide variety of goods and services.
Tasks include the management of tenders and quotations, contract
implementation and supplier management whilst ensuring compliance
with Trusts’ Standing Financial Instructions and, relevant European
e-Enablement & Operational Team
Diane Mitton – Deputy Head of Procurement Service Development
Samantha Crompton – e Enablement Administrator
Janet Rawcliffe - e Enablement Administrator
Lois Fitzpatrick – Quality & Standardisation Officer
Annemarie Morris – Operational Team Leader
Christine Smith – Procurement Assistant
Judith Watson – Procurement Assistant
Judith Lord – Procurement Assistant
Leah Carter – Procurement Assistant
Lynn Mitchell – Procurement Assistant
The e-Enablement Team implement and manage the electronic purchase
order module which enables trusts to select, requisition, approve, order,
receipt, match and pay for goods and services electronically.
The Operational Team process paper requisitions, police adherence to
Standing Financial Instructions and Trusts delegated limits.
East Lancashire Procurement Department
Head of Procurement
Mandy Hanson Julie Haworth
Deputy Head of Procurement - Administration Support
Contracts & Supply Chain Manager Diane Mitton
Shahzad Azam Deputy Head of Procurement -
Service & Business Development Manager
Quality & Standardisation Officer
Paul Stacey John Nelson
Senior Buyer Senior Buyer
Anne Marie Morris
Sam Crompton Operational Team Leader
Sue Maudsley Sandra Cockell
Tony Duree Michelle O'Brien
Judith Watson Michael Prest
Andrea Ingham Lead Buyer Judith Lord Receipts & Distribution
Sam Whitney Husnain Sharif
Linda Longton 01254 732519 ext 82519 Enquiry lines:
Mandy Hanson 01254 733176 ext 83716
Paul Stacey 01254 733517 ext 83517 Diane Mitton 01254 733170 ext 83170 Procurement Faxes 01254 732829 ext 82829
John Nelson 01254 733006 ext 83006 Lois Fitzpatrick 01254 733171 ext 83171
Andrea Ingham 01254 732738 ext 82738 Janet Rawcliffe 01254 735954 ext 85954
Sue Maudsley 01254 732432 ext 82432 Sam Crompton 01254 732218 ext 82218 Receipts & Dist Fax 01254 293241 ext 42241
Tony Duree 01254 732430 ext 82430 Anne Marrie Morris 01254 732433 ext 82433
Sandra Cockell 01254 735955 ext 85955 Helpdesk 01254 733173 ext 83173
Michelle O'Brien 01254 732034 ext 82034 Receipts & Dist Dept 01254 734824 ext 83074 Stock Helpdesk 01254 733033 ext 83033
Shahzad Azam 01254 732423 ext 82423
Ssm Whitney 01254 732436 ext 82436 e-mail addresses for the whole department:-:- first name + firstname.lastname@example.org
Helpdesk e-mail address - all enquiries (example: email@example.com)
East Lancshire Hospitals NHS Trust, Procurement Department, Park View Offices, Royal Blackburn Hospital, Haslingden Road, Blackburn, Lancahsire. BB2 3HH
East Lancashire Procurement Department Contracts Team
Mandy Hanson - Deputy Head of Procurement - Contracts & Supply Chain Manager - 01254 733176 / Ext 83176
Patient Care / Business Services Diagnostics (DAT's) / Theatres
John Nelson - Senior Buyer - 01254 733006 / Ext 83006 Paul Stacey - Senior Buyer - 01254 733517 / Ext 83517
Michelle O'Brien - Lead Buyer - 01254 732034 / Ext 82034 Sue Maudsley - Lead Buyer - 01254 732432 / Ext 82432
Sandra Cockell - Lead Buyer - 01254 735955 / Ext 85955 Tony Duree - Lead Buyer - 01254 732430 / Ext 82430
Mark Robinson - Lead Buyer - 01254 732610 / Ext 82610 Sam Whitney - Procurement Assistant - 01254 732436 / Ext 82436
Patient Care / Business Services Diagnostics (DAT's) / Theatres
Patient Care Business Services DAT's Theatres
Food I.T. Capital Orthopaedics & Trauma
Audiology Corporate Capital Planning General Surgery & Vascular
Facilities Business Services Maintenance Cardiology
Medical & Ophthalmology Human Resources Leasing Urology
Cancer Services Governance Pathology Head & Neck & Plastic Surgery
Diabetes Finance Radiology Anaesthetics & Critical Care
CAMHS Pharmacy Paediatrics & Neonates
Obstetrics Therapies & Orthotics Gynaecology Theatres
Gynaecology & Sexual Health Clinical Outpatients Endoscopy, Theatres & Day Surgery
Elderley Care, Rehab, Stroke & Neurology
Emergency Dept / Urgent Care
What do we do?
Procurement has the responsibility for the purchasing of all goods and
services on behalf of its customers. The only exception is pharmacy
procurement which is managed through National and Regional Pharmacy
networks. The contact for these services would be Neil Fletcher.
This purchasing function must be carried out in accordance with each
Trust’s Standing Orders and Standing Financial Instructions. There must
also be compliance with the European Union’s Directives for the
purchasing of goods and services.
Separation of Responsibilities
The Trust must also ensure appropriate “separation of responsibilities”
in its procurement of goods and services.
This is a public sector requirement to avoid the possibility of fraud by
ensuring that the person who identifies the need to order goods and
services is not the same person who undertakes the purchase, who in
turn, is not the person who pays for them.
All of this is controlled by the Trust’s Standing Orders, Standing Financial
Instructions, Budgetary Control Policy (Authorised Signatories) and EU
SO, WHAT WE REALLY DO….
Is to manage customers’ commercial activity to ensure there is
compliance with the above, optimising value for money across all
contracts and eliminating commercial and corporate risk. In so doing, we
create an Audit Trail which provides an Auditor with evidence that all
procedures have been followed and complied with.
“WE PROTECT THE PUBLIC PURSE AND THE PUBLIC PERSON (i.e.
YOU) IN COMMERCIAL ACTIVITY”
2. The Trust’s Rules
List of Authorised Signatories
Goods and services can only be requisitioned by a member of staff
authorised to do so. They must be Budget Managers or specifically
authorised by their Budget Manager to approve requisitions. A copy of
their signature must be held in the Procurement Department on the
finance approved ‘List of Authorised Signatories’. With regard to e-
procurement the hierarchy and budget approval are signed off by the
appropriate business accountant and business manager and the system
hierarchy is built to reflect the divisions requirements.
Authorisation Levels / Scheme of Delegation
The Trust’s Authorised Signatory list defines expenditure levels at which
authorisation must be given for the purchase of goods and services. Keep
a copy of the current Authorised Signatory list for your Division. Each
Division has the responsibility to ensure the list is kept up to date by
informing their Finance lead of all changes required.
The Procurement Department will obtain Quotes/Tenders on your behalf.
Orders cannot be placed until appropriate authorisation is received.
However, the obtaining of quotations and tenders can take place prior to
authorisation, to help preparation of a business case – or to speed up a
If you are unsure about the level of authorisation you hold your Divisional
Financial Accountant or Finance Lead can provide a copy of your
Divisions Scheme of Delegation.
Standing Orders and Standing Financial Instructions set out the rules
within which the Trust’s Directors and staff must operate.
1) The Director of Finance will advise the Board regarding the setting of
thresholds above which quotations of formal tenders must be
These thresholds are set as follows:
Trust Quote Limit Tender Limit
ELHT £5,000 £25,000
LCFT £10,000 £50,000
CPFT £5,000 £20,000
NHSEL £10,000 £50,000
NHS BWD £10,000 £50,000
NHSBPOOL £5,000 £50,000
NHS NLANCS £5,000 £100,000
NHSCLANCS £10,000 £50,000
NHSNW £15,000 £25,000
2) Managers must ensure orders and requisitions shall not be split or
otherwise in a manner devised so as to avoid the financial thresholds
specified by the Board or those directed by the European Union.
EU Directives state that adverts must be placed in the Official Journal of
the European Union (OJEU) if the value of the goods or services is above
£101,323 excluding vat over the lifetime of the contract. Staff involved in
the procurement of this value need to be aware of the significant
timescales involved in following EU Directives. Advice from the Head of
Procurement should be sought at an early stage, failure to comply with
these rules can result in legal challenges form external sources and
subsequent fines imposed by the EU Commission and the efficacy and
reputational standing of the Trust is compromised.
All business should be advertised and competition invited to evidence and
demonstrate value for money. A set of procedures underpin this principle.
The Procurement Department operate an electronic contracts portal to
advertise Trust business to the marketplace.
2.3 Quotations and Tenders
It is not just the obtaining of quotations and tenders which is a
requirement of the Trust, but also the procedures that surround their
receipt and opening. To guarantee separation of responsibility and public
accountability, the Procurement Department must invite quotations and
tenders on behalf of Budget Managers on approved Trust documentation.
This helps guarantee under contract law, that any orders placed are
subject to the NHS Standard Conditions of Contract, in preference to
supplier terms and conditions. It also allows inclusion of any special
contract requirements that the Trust may have.
The opening of tenders is against a time deadline and must be carried out
by persons other than the person who has an interest in the particular
procurement. Two people, as designated by the Chief Executive, are
responsible for the formal opening and certifying of tenders received.
These officers must not be from the originating Division (see Standing
Orders – Tendering Procedure).
In many cases, value for money will be the deciding factor for award of
business. However, there are a number of goods and services, especially
high value, where the evaluation criteria need to be extended to include
other factors e.g. standardisation, technical advantage and patient quality
issues. The evaluation criteria should be identified prior to quotations and
tenders being issued.
Where the lowest price is not to be accepted, a written record must be
provided of the reason for that decision. Any such decision must be
approved by the Board or its nominated officer
2.4 Waiving Competition
Value for money is the common responsibility of Trust staff. The need to
prove value for money is satisfied by obtaining competition and carrying
out a full cost option appraisal. It is the Trust’s aim to avoid the need to
waive Standing Financial Instruction and Standing Order requirements for
2.5 Single Tender Waiver Guidance Notes for staff
REGARDING THE COMPLETION OF AN APPLICATION TO ACCEPT A NON
1. It is a requirement of the trusts Standing Financial Instructions that the
purchase / lease of all goods and services is subject to competitive Tender /
Quotation. In circumstances where this requirement is to be set aside the
attached application form must be completed by the requisitioning officer /
budget holder with all supporting documentary evidence attached.
2. Circumstances where Tender / Quotation procedures can be waived are;
i. Where the Chief Executive decides that formal tendering procedures
would not be practicable or the estimated expenditure or income would
not warrant formal tendering procedures, and the circumstances are
detailed in an appropriate Trust record.
ii. Where the timescale genuinely precludes competitive tendering but failure
to plan the work properly would not be regarded as a justification for a
iii. Where specialist expertise is required and is available from only one
iv. When the task is essential to complete the project and arises as a
consequence of a recently completed assignment and engaging different
consultants for the new task would be inappropriate
v. There is a clear benefit to be gained from maintaining continuity with an
earlier project. However in such cases the benefits of such continuity must
outweigh any potential financial advantage to be gained by competitive
3. Waiver Procedure
a. The Requisitioning Officer must complete all parts of Section 1 of the
b. The Budget Holder must sign the form where indicated. Failure to do so
will result in the Application Form being returned unauthorised.
c. The Application Form along with the Requisition must be forwarded to
the Procurement Department who will quality assess the application. Any
application which is not fully completed or which does not provide
appropriate supporting documentation will be returned unauthorised.
d. The Procurement Department will forward the Application Form and
Requisition to the Chief Executives office for authorisation by the Chief
Executive or Director of Finance.
e. The Application Form and Requisition will be returned to the
Procurement Department for processing.
2.6 Official Orders
Goods and services can only be ordered via the E Financials/E
Procurement Purchase Order system and Pharmacy Ascribe system.
Responsibility for purchasing rests solely with the following officers who
are responsible for ensuring compliance with Standing Orders and
Standing Financial Instructions:
1. Head of Procurement
2. Director of Estates
3. Director of Pharmacy
The placing of official orders is also a method of ensuring that NHS
Conditions of Contract are in place.
2.7 Delegated Ordering
The Head of Procurement can delegate the ordering of goods and
services available on contracts agreed / formalised by the Procurement
Department to customers in accordance with Procurements policy on
Delegated Ordering. Certain criteria have to be met for this to be
2.8 Delegated Purchasing
Only Procurement staff has the responsibility within the rules to undertake
purchasing activity which requires the negotiation of prices with a supplier.
3. Procurement of Goods and Services from Companies
3.1 General Background
Procurement i.e. the process of obtaining goods and services includes
Identifying the need
Completing and authorising a requisition ( electronic)
Sending the requisition to Procurement ( electronic)
Delivering the goods
Recording the Goods Received Note (GRN)
Payment to the Supplier
Much of the ‘pain’ that can be experienced in obtaining goods can be
avoided by requisitioning in a time frame which allows for all the above
processes to take place and allow delivery before need.
For higher value goods which require quotations and tenders, the earliest
involvement of the Procurement Department will help reduce the time
frame. Competitive quotations can add a minimum of two weeks to the
processing time of an order. Competitive tenders can add a minimum of
six to eight weeks to the processing time of an order. Tenders in line with
EU Directives will add a minimum of 16 weeks to the process of placing
an order. Therefore, early contact with your Procurement Department is
essential if the value of your contract period exceeds £101,323.
Any medical or scientific products which are to be used in patient and
laboratory areas will be subject to a pre-purchase questionnaire (PPQ)
which has to be completed by the supplier and approved by the
appropriate Technical Officer (E.B.M.E. Department), together with
statements regarding decontamination. This can add further time to the
processing of an order. Following receipt, these products are subject to
Acceptance Testing prior to being released for use.
The adherence to National / Regional / Local contracts will normally be
recommended where there are demonstrable benefits e.g. value for
money, product standardisation, expediency.
Low Value Orders
Where e-requisitioning is not available it is essential to consider that the
cost of generating an order is estimated to be approximately £75.
Customers should avoid raising purchase requisitions for goods of low
value wherever possible – especially for regularly used items. If you would
like to discuss this or have a problem in this area, please contact the
High value Orders see flowchart
Goods and services should be ordered via a requisition, this should be fully completed with as much detail as possible.
Ensure that it is correctly procured in line with your Standing Financial Instructions (SFIs), authorised by correct
signatories and that there is sufficient budget to cover the total cost (delivery charges/consumables, VAT etc).
Ensure That the correct financial code is on the request and that the delivery address is clear. On receipt of the goods
ensurecorrect goods and quantity have been delivered. Sign the delivery note and receipt the order in e-Financials. For
up to date prices please telephone ELPD, as often the NHS will receive a discount on the printed price
NonStock Ordering of Goods and Services
Value of Contract/Spend Value of Contract/Spend Value of Contract/Spend
£5,000 - £25,000 -
£25,000 - £100,000 OJEU (currently £101,323) - £199,999
Contact East Lancs Procurement Department (ELPD) for advice and assistance on quotes and tenders
Check with ELPD for a NHS Shared Business Services Commercial Procurement Solutions (SBS CPS)), NHS Supply Chain (NHSSC), Office of Government
Commerce (OGC) or local agreement already in place. And if so, request to procure your requisition quoting the contract/framework number.
Formal tender procedures may be waived by officers to whom powers have been
In line with European Procurement Law, tenders above the OJEU threshold may
delegated by the Chief Executive under certain circumstances. Please refer to the
need to be advertised within the EU. ELPD will advise on a case by case basis.
Breach and Waiver procedure.
Please note YOU CANNOT WAIVER OJEU.
Obtain 3 written quotes to
Obtain minimum of 3 formal tenders to find best value supplier
find best value supplier
Once best value supplier has been established raise an requisition via the ELPD attaching supporting evidence of your contracting process and award
Send your requisition to ELPD in plenty of time (there is a 5 day processing time at ELPD)
Plan large tenders well in advance - EU procurement exercises can take 4 - 6 months to
Ask Suppliers to supply goods or services without having an official order from ELPD
complete and should ideally be brought to ELPDs attention in the prior fiscal year to
facilitate work planning
Submit a requisition without the full requirements of the order
or the correct authorisation
Be aware when wavering, the requisitions must have the waiver attached (see
Commit the Trust to expenditure without following the SFIs
Sign and return delivery notes and receipt goods orders onto e-Financials
Sign delivery notes/invoices without first checking the goods have been delivered and
are as per the order
Annotate the requisition with the contract, framework or capital scheme number, where
ELPD Non - Stock Helpdesk
Business Continuity Process
The flowchart below describes how to order goods and service via the
procurement dept in the case of system or telephone failure or other
unforeseen event whereby service disruption has occurred.
Emergency service continuity flowchart:
EAST LANCASHIRE PROCUREMENT SERVICE
PROCESS FOR ORDERING GOODS/SERVICES
DURING A MAJOR INCIDENT
Are electronic ordering systems operational?
YES – Continue with automated process NO – Liaise with Procurement in person or via
mobile phone number 07921 373394
Is your requirement available via the NHS Supply Chain Catalogue?
STEP 3 STEP 3
INPUT YOUR REQUEST IN THE NORMAL WAY PROVIDE THE CORRECT INFORMATION FOR
The following information must be provided in full. Failure to ORDERING GOODS
comply with these instructions could result in failure to place The following information must be provided in full. Failure to
your order/receive your goods comply with these instructions could result in failure to place
o Correct Organisation/Trust your order/receive your goods
o Correct transfer point and department name o Correct Organisation/Trust
o Full details of your requirements – NPC code (catalogue o Correct transfer point and department name
number) unit of issue, quantity required o Correct financial code
o Name and contact details of the requisitioner and o Full details of your requirements (item description, price,
authoriser. quantity, unit of issue, and name of supplier - if known)
o Name and contact details of the requisitioner. Correctly
authorised by the authorised signatory/budget holder
o Preferred Delivery Date (delivery is typically 3-6 weeks
for non-stock items. This could be longer at financial
year end therefore a lengthy notice period is advisable)
o Please provide/attach copies of quotations/samples etc.
if applicable. Liaise with Procurement if you require
ENSURE COMPLETED REQUISTION IS DELIVERED TO
THE PROCUREMENT DEPARTMENT
Send/Take the request to Procurement. Retain a copy for your
**Please be aware of Standing Financial Instructions
relating to the value of your order** STEP 5
STANDING FINANCIAL INSTRUCTIONS PROCUREMENT PLACE ORDER
Value Process Required Return information to
>£5,000 Verbal Quotation Procurement Once Procurement have placed your order with the supplier,
£5,000 - £25,000 Minimum 3 Quotations Procurement you will receive notification, including any order number.
£25,000 - £100,000 Minimum 3 Tenders Trust If notification is received via e-mail, please retain this e-mail for
your records and quote the purchase order number if you need
to speak to Procurement
regarding any aspect of your order.
3.2 Ordering Arrangements
1. Routine Purchase Requisition
The majority of orders fall into this category. ELHT and NHS Blackpool
now use electronic ordering via E procurement to raise its purchase
orders/requisitions, where possible all goods and services should be
ordered via E Procurement via your log on.
If you don’t have a user name and password for E Procurement then
please contact Sam Crompton (01254 732218 ext 82218) or Janet
Rawcliffe (01254 735954 ext 85954)
A requisition for goods or services must be raised via the Trusts
purchase order system. For Trusts not using eProcurement paper
requisitions must be raised and sent to Procurement for processing
2. Computer Equipment
All requests for any type of computer equipment must be forwarded to
the relevant IT department. Any request received in the Procurement
Department will be returned to the Division. IT can be contacted by
ringing 83135 (01254 733135) alternatively Trust employees can
access a template e-mail ‘mail IT helpdesk’ via the ELHT Mail
Shortcuts folder on their desktops.
3. Capital Expenditure >£5,000 for East Lancashire Hospitals NHS
In general all equipment over £5,000 is defined as Capital
expenditure. Successful bids at the Medical Equipment Committee
should be followed up early by contacting the Procurement
Department to agree the most appropriate purchasing process and
timescales. Approval for funding does not mean approval to purchase.
Capital expenditure is still subject to competitive quotations and
tenders. Requests to League of Friends for funding medical
equipment must be forwarded to the Procurement Department and not
be submitted independently. (Please refer to the Trust Finance Policy
reference F18 Financial Investment/Disinvestment Policy for further
4. Maintenance Contracts
The Trust has assigned the maintenance quotes system to
Contract Expiry Date Approaches
Leaseguard will contact the named Technical
contact to discuss contract requirements. If you are
not the Technical contact please refer back to Sue
Leaseguard then Negotiate and write Contract
Leaseguard then send Contract Proposal to Trust
To agreed all Approvers
Approver queries proposal Approver accepts proposal Approver rejects proposal
Budget Holder to organise for requisition and
purchase order to be raised
Copy of Purchase Order to be sent to Leaseguard
3.3 Contract Law
Official orders, in line with Standing Financial Instructions, contain the
NHS Standard Conditions of Contract for the Purchase of Goods. All
commercial activity is covered by contract law. Conditions of Contract lay
out the rules which govern a transaction and offer protection in law should
there be a problem in the transaction. All orders placed on behalf of the
Trust must be subject to the NHS Standard Terms and Conditions, or any
specific Terms and Conditions which the Trust wishes to impose. Any
variance to these conditions must be agreed in writing prior to an official
order being placed.
Suppliers will try and impose their own Conditions of Sale which may
disadvantage the Trust both financially and in law. Care must be taken to
ensure that Trust Terms and Conditions remain in force.
Formal invitations to submit tenders and quotations on Trust stationery
ask suppliers to submit prices subject to NHS Standard Conditions of
Contract. An order placed against this submission will maintain our
advantage. However, the receipt and acceptance, even by reference, of a
company’s acknowledgement of order can negate the Trust’s rights.
Acceptance of a quotation on a company’s letterhead can also
disadvantage the Trust.
3.4 Contract Law – “Do’s and Don’ts”
Standing Financial Instructions and Standing Orders contain sufficient
protections but to help here is a quick guide.
1. Never give a verbal or written commitment to a company for the
provision of goods or services.
2. All goods and services should be obtained on an official order
following completion and appropriate authorisation of a requisition.
3. Never sign a company lease or contract. The signing of a lease or
contract may in fact commit the Trust to expenditure and potentially
unfavourable terms and conditions of contract. Such documents
should be referred to the Head of Procurement or Director of Finance.
3.5 Completing a Non Stock Purchase Requisition, electronic or
The process of obtaining goods and services can be greatly enhanced by
you providing good quality and timely information. The minimum
information which you must provide on a non-stock purchase requisition
or e requisition is:
1. The quantity of the goods you require
2. A full specification of the goods required including catalogue or part
number where appropriate.
3. When you require the goods
4. The budget code
5.Any special requirements / delivery arrangements
Please ensure you include or attach any other information with the
requisition which you feel is important for Procurement staff to be aware
3.6 Expediting Orders
The Procurement Department can expedite your orders on request. You
will need as a minimum the following information, a requisition number or
an official purchase order number.
Serious delivery problems should always be notified to Procurement to
assist in effective supplier management.
3. 7 Purchasing goods from Charitable Funds
Requisitions for purchase of goods or services from charitable funds must
have the relevant budget code on them. If you are unsure of the correct
code please seek advice from you relevant finance lead.
3.8 Visits by Company Sales Representatives
Numerous Sales Reps visit hospital staff in all disciplines. Their visits can
be time consuming, distracting and a cause of pressure. Sometimes they
may have useful information to share but more often than not they will be
wishing to heavily promote their products and achieve a sale.
Only Procurement staff are authorised to conduct purchasing on behalf of
the Trust. No commitments to companies should be made by any other
Visits by Sales Reps should be discouraged and only conducted when the
1. An appointment has been made
2. Some perceived benefit from the appointment will result
3. There is no intention to commit the Trust to a purchase – Procurement
staff should be involved in all such discussions.
East Lancashire Hospitals NHS Trust staff should also refer to Policy
(Draft Policy awaiting approval)
3.9 Trials of Equipment and Consumables
All equipment required for loan or trial purposes should be arranged by
the Head of Procurement or his / her nominated officer. Goods shall not
be taken on trial or loan in circumstances that could commit the Trust to a
future uncompetitive purchase. Companies will often be keen for the Trust
to undertake trials of their products – such trials can appear attractive in
the short term but can prove costly to the Trust in the longer term. For a
trial to be accepted the following considerations should be made:
1. No commitment to the supplier should be given
2. Is the trial in the genuine interests of the Trust?
3. Is there genuine interest in what is being offered by the supplier?
4. Can I ensure the Trust is fully indemnified against any accidents which
may occur due to a fault with the equipment
5. Is there already a standard product available in the Trust?
6. Are there Risk Management issues to consider in use of the product?
7. Are there ethical considerations?
8. Can the Trust fully resource the trial in the manner required by the
9. Are there any hidden costs associated with an equipment trial e.g.
10. Involve Procurement to undertake procurement process where serious
intention to purchase a product / system.
Note Please refer to the Trust intranet to view policy reference C17: Medical
Devices Management Policy for further information.
A more comprehensive guide on loans/trials can be found on the
Procurement Intranet site under ‘Master Indemnity’
4. Obtaining Goods from NHS Supply Chain
This Trust obtains goods from NHS Supply Chain warehouse at Runcorn.
There are over 600,000 product lines available in a catalogue which is
issued twice yearly in April and October.
Just because a product is in NHS Supply Chain catalogue, there is no
obligation to order it if it can be purchased at a lower cost elsewhere.
However, that lower cost must take into account not only the price but all
other costs attached in purchasing the item non-stock e.g. purchasing,
receiving, distribution and invoice processing i.e. the total supply chain
costs. Seek advice from your procurement department if required.
4.2 Delivery and Requisitioning Schedule
NHS Supply Chain delivers to the Trust and each requisition transfer point
will have designated times to submit an on line order and to receive the
NHS Supply Chain warehouse operates on a 48 hour delivery cycle.
When you log onto LOL (on line ordering), your allocated delivery day
appears after selection of your Trust and the highlighting of your
requisition Transfer Point Number.
Input and authorisation must be actioned 48 hours prior to your delivery
day. For example if your delivery day is Wednesday your order must have
been input and authorised by 4.30pm on Monday.
4.3 Emergency Orders
NHS Supply Chain operates an emergency order system that can
guarantee delivery within 24 hours or less. Their definition of an
emergency is a patient related medical emergency and is provided free of
charge. However, emergencies brought about by the Trust’s inefficiencies
are chargeable and therefore need to be avoided.
(Please refer to Appendix 1, NHS – Supply Chain)
4.4 On Line Ordering
When placing an order on line it is particularly important to ensure that the
correct quantity (unit of issue) is ordered. For instance if you require 100
envelopes and the unit of issue is 50, your requisition should have 2 in the
quantity column. Should you put 100 in the quantity column you will
5. Goods Receiving Procedure
5.1 Receiving Stock Items from NHS Supply Chain
It is the responsibility of Receipts & Distribution to check that the delivery
quantity details in terms of the number of roll cages and the number of
tote boxes received are correct. Receipts & Distribution will check the
delivery to ensure the correct number of roll cages and tote boxes have
It is the responsibility of the ward or department to check that what is in
the cages and tote boxes is what was ordered. If there are any
inaccuracies the errors must be reported to Procurement within 48
hours of receipt, using the discrepancy report form available via the
Procurement Website www.elpd.elht.nhs.uk Failure to report within
that time can result in being unable to obtain the appropriate credit. The
appropriate value is credited to your transfer point within a few weeks.
The return of roll cages and tote boxes is important and every effort
should be made to ensure they are available for collection. The Trust’s
performance in returning them is measured weekly by NHS Supply Chain.
5.2 Receiving Direct Supply Items
The Receipts & Distribution Department receives the majority of deliveries
to the Trust direct from suppliers and ensures they are formally “Goods
Some departments are the exception to the above as they can be very
specialist / technical in nature and are resourced to receive goods direct.
They should receipt the delivery on E Financials in a timely manner.
It is the responsibility of every delivery point to ensure that:
1. The goods received match the Supplier’s Delivery / Advice Note.
2. The goods received match those on the Purchase Order re: the
quantity and specification.
3. The goods are not damaged or incomplete. If there is a discrepancy
the Procurement Department should be asked to assist in remedying
4. A Goods Received Note (GRN) entry is made on the E Financials
system within 24 hours of receipt.
5. No signature should be provided for Goods Received which are
inaccurate or damaged. If insufficient time is available then the
Delivery Note should be clearly marked as “UNCHECKED” adjacent to
6. Goods Return Procedure
6.1 Returning Goods to NHS Supply Chain (Runcorn)
The return of goods to Runcorn is usually for one or two reasons, a
mistake in ordering or an error in delivery. The two must be considered
separately as a mistake in ordering can result in a 15% return charge
whilst a delivery error is dealt with free of charge. Goods to be returned
must exceed a value of £10. Returns must be submitted on the Return
of Goods to NHS Supply Chain form available on the Procurement
For goods to be returned to Runcorn they must be resalable which means
Be well within their sell by date
Have unbroken packaging
Not have writing on the packaging
Be a complete unit of issue
Where the reason for return is due to error by NHS Supply Chain it is
important you notify the Procurement Department within 48 hours of
receipt by completing the discrepancy form available on the Procurement
The following procedure must be followed to ensure that credit is
1. Complete the Return of Goods form with the following information:
Reason for return
Your requisition number against which delivery was received
Catalogue number (NSV Code)
Description of product
Quantity to be returned
2. Forward the form to the Procurement Stock Helpdesk
firstname.lastname@example.org for validation by the
Procurement team. This will then be forwarded to NHS-Supply Chain.
3. You will then be notified of a Returns number and an indication of
when to return the goods to Receipts & Distribution. Under no
circumstances should the goods be returned to Receipts &
Distribution until you have received authorisation to do so.
4. Once the goods have been collected by NHS Supply Chain, the
details verified and the goods returned to stock, the appropriate value
is credited to your transfer point.
6.2 Returning Goods to Suppliers
Returning goods to suppliers can be more problematic because of the
variety of methods they may use to deliver and collect goods. If you have
goods to return you should contact the Procurement Department. You will
be advised of what action to take. Under no circumstances should the
goods be returned to Receipts & Distribution until you have spoken
It should be noted that returns due to requisitioning error are likely to incur
a cancellation or collection charge by the supplier.
7.1 Of Procurement Staff
Procurement staff are experienced and professional. They take pride in
striving to provide excellence and value for money in all aspects of the
The following performance targets are those we adhere to during normal
1. Purchase requisitions will be processed to purchase order from
receipt into the department subject to competitive tendering and
quotation procedures and the approval of Pre-Purchase
Questionnaires (PPQ’s) for all medical and scientific equipment.
2. Telephone queries to Procurement will be dealt with within one
3. Non-stock deliveries will be distributed within 48 hours of receipt at
4. NHS Supply Chain deliveries will be distributed within 24 hours of
receipt at the Stores.
5. Patient emergencies will be dealt with immediately.
These are targets which we set ourselves and are dependent in part to
the quality and timeliness of information received from you the customer.
Should you identify problems in any of these areas please contact the
7.2 Of Customers
It will greatly aid Procurement staff to satisfy your requests accurately and
promptly if you can ensure that your requisition contains:
A budget code
The product code
A clear specification and quantity
Supplier details where known
Reasonable delivery date (ASAP or URGENT is not at all helpful)
All relevant background information / quotations obtained
Any special instructions e.g. pre-payment, charitable funds etc
Special nature of goods / services e.g. COSHH items
e-Procurement Requisitions will require the same information to be
entered into the system. Please ensure that header and footer are
completed before submitting the e-requisition.
Your Business Case Submissions
Involve the Head of Procurement or Buyer at the outset wherever
procurement of goods and services form part of the Business Case.
Let us work together to complete the procurement process at an early
stage rather than at the end of what may be a protracted period prior to
approval of the Business Case.
General Enquiries to the Procurement Department
1. Be brief and concise during your enquiry (other callers may be
2. Have all the relevant details to hand e.g. requisition number, relevant
dates, supplier information.
3. Check that your call is really necessary – you may already have the
answer e.g. copy order details, picking ticket for Runcorn, local stock
4. Ensure you record the name of the person you speak to – in case you
need to follow up your call for any reason.
5. Ensure we have your contact details and agree with them their
timescale to respond back to you if your query cannot be resolved
8. Procedure for High Value Procurement
This guidance is reproduced elsewhere in this guide but is included here
to provide a complete procedure.
The spending of public funds is governed by two main principles.
Public Accountability defines the need to be able to prove to the public,
usually through an Auditor, that their money is being spent in an open,
honest and economical way.
The Separation of Responsibilities requires that the person who wants
or defines a need to order goods or services, is not the same person who
carries out those activities relating to their purchasing, and is not the
person who pays for them.
“He who wants shall not order, he who orders shall not pay”
All of this is controlled through Standing Orders, Standing Financial
Instructions, EU Directives, Delegated Financial Limits (Authorised
Signatory Lists) and the e-Procurement authorisation hierarchy.
These notes exist to help smooth the process of defining need, complying
with both legislation and internal regulations in the procurement of goods
Your attention is drawn to your Trust’s Standing Orders, Standing
Financial Instructions, Scheme of Delegation / Authorised Signatories List
and e-Procurement authority hierarchy. All those customers involved in
the requisitioning of goods and services should be familiar with these.
NB 1. Equipment Committee Requisitions – are subject to
authorisation in accordance with the procedure for completion
of such requisitions.
NB 2. Requisitions for Charitable funds – should be clearly marked
NB 3. Computer Hardware and Software – all requests should be
forwarded to relevant IT Department.
NB 4. Medical and Scientific Equipment – procurement will involve
satisfactory authorisation by EBME of a pre-purchase
questionnaire (PPQ) which the supplier has to complete.
NB 5. Capital Expenditure – requires the approval of the Director of
Finance or his nominated officer.
Authorised Signatory List
This is maintained by Finance who is reliant on customers within each
Directorate / Department notifying them of any changes – including
deletions. Procurement activity will not normally commence until an
authorised requisition has been provided. Requests via e-Procurement
must be compliant with the authorising hierarchy.
Formal competitive quotations must be obtained for purchases over the
trust’s threshold (see page for thresholds). Formal competitive tenders
must be obtained for purchase valued over the trust’s thresholds (see
page for thresholds). Advertisements must be placed in the Official
Journal of the European Union (OJEU) for all orders valued at £101,323
or over prior to issue of a competitive tender. All of these values exclude
Informal written competition is sought for purchases below trust’s
In line with the requirements of Separation of Responsibility, the obtaining
of tenders and quotations must not be carried out by the person who
identifies the need. It is not just the obtaining of tenders and quotations
which is important, but the procedures which surround them which include
their timed receipt and opening by an independent person. These
procedures exist to protect both the public purse and the public person in
commercial activity. The seeking of tenders and quotations is the role of
the Procurement Department for all goods and services with the exception
of Pharmacy products.
8.4 Audit Trail
This is the need to make available to an auditor proof that all procedures
have been followed and where applicable, written authorisation not to
follow these procedures exists.
An “Audit Trail” must be provided for each purchase to include the
appropriate authorisation to purchase, quotation or tender activity where
required, appropriate approval of the purchase order, the receipt of the
goods and services and payment, usually in that order. Authorisation to
waive competition should be able to be supported by documentary
evidence to be kept as a permanent record by Budget Manager and the
Procurement Department. The Budget Manager effectively accepts
responsibility for the recommendation to waive the need for competition
by virtue of their knowledge and experience.
8.5 Procedure and Business Case Submission
The following procedure is to be used for high value procurement and
should be read in conjunction with the procedure note on Business Cases.
A statement of need should be presented taking into account the
service benefit and availability of funds. This statement of need should
be approved by the Clinical Director.
The functional requirement should be defined precisely and with as
much detail as possible.
At this stage the Procurement Department should be involved. They
can comment on the appropriateness of the specification, if required
and will be able to advise on and agree with you the proposed sources
of supply. They will advise you on the likely timescale for the
procurement and any implications of the EU Directives and advise on
the correct Procurement Landscape options available.
On receipt of formal quotations or tenders Procurement staff will ensure
an evaluation process is undertaken in which all Trust staff who need to
be involved can participate fully.
Procurement staff is committed in seeking to achieve Value for Money on
behalf of the Trust and will encourage customers to consider “whole life
costs” including maintenance and consumables costs as well as the
equipment purchase costs.
Customers are advised to consult with Procurement staff at an early
stage, prior to Business Case submission (where this is appropriate).
8.6 Reports to the Director of Finance
All procurement undertaken which is in excess of £5,000 excluding VAT is
reported by the Head of Procurement to illustrate that the Trust’s
procurement has in all cases been in conformance with Standing
Financial Instructions and Standing Orders. The reports will also
demonstrate that value for money has been achieved and will illustrate
any incidence where non-competitive quotations and tenders have been
sought and the reasons for this.
All non-competitive procurement activity is referred by the Director of
Finance to the Audit Committee for their information.
Please see appendix 4 for detailed General KPI’s information.
Detailed guidance is provided in HSG(93)5 – Standards of Business
Conduct for NHS Staff – which all staff should have a copy of and be
familiar with. Significant extracts from the guide are:
1. NHS Staff must - Ensure that acceptance of commercial sponsorship
will not influence or jeopardise purchasing decisions.
2. Refuse “Linked Deals” whereby sponsorship of staff posts is linked to
the purchase of particular products or supply from particular sources.
However, where sponsorship is accepted on the basis that the
sponsorship will have no effect on purchasing decisions, monitoring
arrangements should be established to ensure that purchasing
decisions are not, in fact, being influenced by the sponsorship
As a general guide:
Accept any gifts, inducements or inappropriate hospitality (7-9)
Abuse your past or present official position to obtain preferential
rates for private deals (15)
Unfairly advantage one competitor over another (17) or show
favouritism in awarding contracts (18)
Misuse or make available official “commercial in confidence”
NB: References in brackets are from NHS HSG(93)5 – Standards of
Business conduct for NHS Staff.
3. You may make reference to the Bribery Act introduced on the 1st July
2011 which is the overarching statute with regard to correct practices.
(*Appendix 2) If you are still unsure you should contact either the
Head of Procurement or the Director of Finance for appropriate
10. Disposal of Surplus / Obsolete / Redundant
Please refer to Appendix 3 to view the Trust Policy on Disposal of
Directorates / Departments should regularly review their assets and
identify any items which have become surplus to requirements.
Directorates / Departmental Management should satisfy themselves that
items are genuinely surplus. Once satisfied you should then notify
Procurement of all surplus equipment, ensuring you provide the following
Description - quantity, make, model, age
Condition – good, average, poor – working or not working
External organisations who may be interested in purchasing the
Electrical equipment needs to have a report from the Estates
Suitable for sale to staff
Suitable for spares only or scrap
Budget code to be credited if income generated from sale
The EBME department will notify Procurement of all medical equipment
for disposal which is identified on their Equipment Management System.
You are advised to contact that department initially for all items of medical
equipment which are considered suitable for disposal.
Procurement staff will endeavour to obtain the best possible price for sale
outside the Trust. Competitive quotations will normally be invited except
for such circumstances as described in Standing Orders. Transfers within
the Trust will not normally be subject to internal re-charge.
All sales to staff should be handled by the Procurement Department.
Asset registers must be updated to reflect the disposal of equipment.
Anyone involved in any aspect of the above is welcome to come and visit
the Procurement Department to discuss further. Please contact either
Linda Longton, Diane Mitton or Mandy Hanson or Lois Fitzpatrick re:
specific training requirements.
Appendix 1 NHS SUPPLY CHAIN
NHS Supply Chain - consistently reliable, flexible, convenient
NHS Supply Chain provides a national warehousing and distribution service for consumable healthcare
the English NHS. We take pride in ensuring that we deliver a high standard of service upon which
customers can rely.
We deliver the right products to the right place at the right time, whether in support of an individual NHS
Care Trust (PCT), a confederation of organisations working together or to private customers who
provide services in
support of the NHS.
Our emergency service - there when you need it...
The NHS is a 24/7 organisation that is in constant demand, so when things go wrong it needs 24/7
emergency back up.
NHS Supply Chain’s emergency service means that we will always be there when you need us - 365
days a year, 24 hours
a day, 7 days a week.
Under our emergency service arrangements, we guarantee that we will respond to any major incident or
circumstance efficiently and rapidly, getting a new or replacement product to you as soon as we possibly
One phone call to our teams and we will do everything we can to support your organisation, protecting
continuity of your
service to your patients.
In response to an emergency call, we commit to getting any stocked product to you within 5 hours and
aim to get
Non-stocked products to you by the next working day if not before. (See blue diamond and e-direct in
box). All you need
to do is give us a call as soon as you become aware of the problem:
Non stock products in our catalogue will be marked with a blue diamond or our e-
Blue diamond products are non-stock items but can be consolidated and sent out with
your NHS Supply Chain delivery.
e-direct products are delivered separately, direct from the supplier
Out of hours emergency telephone numbers
Runcorn 01928 858531
Normanton 01924 328757
Bridgwater 01773 724221
Alfreton 01773 724048
Rugby 01773 724039
Maidstone 01622 402669
Bury St Edmunds 01622 402662
How to use our emergency service
Our emergency service operates in support of your own trust’s emergency response.
If your emergency occurs within normal office hours (i.e. 9am to 5pm), your first point of contact should
be your own trust
Supplies/Procurement manager/team who will respond to your emergency in the most appropriate way
in line with your
authorisation procedure. Any need to engage NHS Supply Chain can be done through the normal
customer service contact.
Out of hours
If your emergency happens outside of normal office hours, or at the weekend or on a bank holiday, you
must obtain the
appropriate permission from an authorising Officer within your trust and follow your trust’s
Once authorisation has been obtained, you (or your Supplies/Procurement team depending on your
should contact NHS Supply Chain using the emergency contact telephone numbers.
Our duty security officer will answer and you must clearly state that it is an EMERGENCY SITUATION
and that you require
an urgent delivery.
Before you call, make sure you have the following
• Authorising officer’s name
• Location name and telephone number
• Requisition point details
• NPC code for each commodity required
• Description of product with issue pack size
• Quantity required
• Delivery point if different from normal delivery location
• Precisely when the item(s) are needed.
Our distribution centre staff will let you know the details of the transport to be used and estimated time of
Our full emergency service procedure and commitment is detailed on our website,
What do customers think of our emergency service?
The 2005 London bombings caused uproar for hospitals in the area, and NHS Supply chain had to hit
the ground running:
‘On the day in question, obviously we went into overdrive. The Royal London Inventory management
stopped all other work and ordering to assist with the major incident. We were extremely well supported
by all at the
Maidstone DC, who assisted to our requests without question. Our emergency orders were delivered
into the hospital within
four hours, under police escort, which the driver seemed to enjoy! Our thanks go out to the team for their
Neil Cadywould, Materials Co-ordinator,
Royal London Hospital.
‘This morning we had an urgent requirement for our Intensive care unit. We rang NHS Supply Chain
and, to our delight, the
delivery arrived one hour later. This was an exceptionally quick service by anyone’s standards. Thank
you for this excellent
Steve Begley, Supplies Manager,
Royal Liverpool Children’s NHS Trust, Alder Hey
BRIBERY ACT COMPLIANCE – A GUIDE
An organisation can be found guilty of an offence under the new Bribery Act in two broad
1. A bribe is given or received directly by the organisation. The offending activity needs to
be carried out by a senior person. There is no defence available.
2. A bribe is made by an "Associated Person" on an organisation's behalf. The Associated
Person (e.g. an employee or agent) performs services for the organisation and intends
to obtain or retain business for the organisation. There is a defence if "Adequate
Procedures" are in place to prevent bribery.
Therefore, organisations need to put in place procedures to deal with these two situations:
1. So that no-one immediately connected with the organisation makes or receives bribes
on the organisation's behalf. This is not a defence per se, but an attempt to ensure that
offending activity does not occur in the first place.
2. Putting in place Adequate Procedures to prevent bribery carried on by an Associated
Person on an organisation's behalf.
These two sets of procedures can be effected in one.
The following need to be considered:
1. Risk Assessment.
Before an organisation puts procedures in place, it needs to understand the risk it faces from
bribery. Factors to be taken into consideration include:
Do employees understand the new law and what conduct is acceptable / unacceptable?
Does a bonus / reward program incentivise employees to engage in inappropriate
Does the financial controlling system operate to identify any payments or patterns of
payment that may be suspicious?
Operating in a high risk industry (e.g. defence, construction) or a country where bribery
is perceived to be a risk (e.g. in Europe, Greece, Italy).
Dealing with third parties that perform services on an organisation's behalf e.g.
subsidiaries, agents, sub-contractors, joint ventures.
Payment of commissions, referral fees, success fees etc whether contractual or not.
Payments made to public officials to accelerate an administrative process, sometimes
known as facilitation payments.
Any other payments made to public officials
Payments made by way of political donations, charitable donations, lobbying and
Hospitality / gifts given and received.
"Payments" includes not just monetary payments, but payments in kind e.g. gifts,
entertainment, travel, holidays etc.
In assessing those risks, information should be gathered on:
Historical payments, hospitality and gifts.
The amount and nature of those payments.
To whom those payments were made.
The timing of those payments e.g. was a payment made to a public official at the same
time a company was applying for a permit?
The organisation may also wish to conduct a review of its supplier contracts in order that it
can ascertain whether payment terms are sufficiently clear and whether appropriate
termination provisions are in place.
2. Top-Down Commitment
The organisation should demonstrate its commitment not to participate in activity that could
be construed as bribery or corruption. This can be demonstrated by means of a Board
resolution. In some circumstances, a Compliance Officer can be tasked to deal with anti-
bribery and corruption issues. Further advice can be obtained by contacting the Company
3. Anti Bribery and Corruption Policies and Procedures
Once the risk assessment is completed, the organisation can start to draft its Policy. Actions
must be proportionate to the risks faced.
The starting point will be an expression of the organisation's commitment re bribery and
corruption and a clear explanation of bribery.
The Policy may include guidance on:
Corporate Hospitality and Gifts, for example:
Before hospitality / gifts are offered, consideration is given to whether it can be
demonstrated that this is bona fide e.g. is it for profile raising, to demonstrate
products / services, to maintain relationships.
Is the hospitality reasonable and proportionate? As opposed to lavish.
Is Board sign off required before invites are sent out?
Will the organisation require that employees get written permission before
accepting hospitality / gifts?
What hospitality / gifts are permitted?
Is a register kept of such gifts?
Advice to employees who may travel overseas on business.
The carrying out of enhanced verification checks and other research before engaging in
new business relationships.
Terms and conditions to be imposed required in contracts in order to protect the
business e.g. immediate termination on discovery of corrupt activity.
The taking of local professional advice before any agreements are entered into in which
services may be engaged outside of the UK jurisdiction.
4. Due Diligence
An organisation needs to be sure with whom it is dealing – whether that person is a potential
employee or a supplier of services – to ensure that the person can be trusted not to engage in
bribery on the organisation's behalf.
Suitable pre-contract checks can include obtaining references, carrying out credit checks and
engaging in an enhanced anti-money laundering process.
The organisation may wish to be satisfied that a supplier has similar anti-bribery controls in
Contractual provisions may include a requirement to comply with the organisation's anti-
bribery policy, clear provisions on when payment will be made and termination provisions.
5. Policy Implementation
The organisations' policies must be communicated to employees and also to those carrying
out services on the organisation's behalf.
The organisation should consider providing basic training to its employees and even to e.g.
contractors where this is identified as being appropriate.
Certain employees may require a higher level of training e.g. those who travel abroad for
Refresher training at intervals may be appropriate in the same way that health and safety
training is repeated.
Employees and service providers need to be clear about the consequences of engaging in
appropriate conduct e.g. immediate termination and referral to the Serious Fraud Office.
6. Monitoring and Review
Procedures should be monitored and reviewed to ensure that they remain effective and
relevant to the organisation's business.
Monitoring take place alongside existing compliance systems and may include a "red flag"
whereby unusual activity is highlighted e.g. a request for a large amount of petty cash.
Table of contents
2. Disposals General.............................................................................................4
3. Disposal of IT Assets……………………………………………………………….6
4. Billing Procedures..............................................................................................7
Appendix 1 - REQUEST TO DISPOSE OF EQUIPMENT....................................8
PROCEDURE FOR DISPOSAL/SALE OF SURPLUS ASSETS
1.1 This procedure relates to Sales; Part Exchanges and Condemned Items.
1.2 Responsibility for the notification of proposed disposals is with each
Departmental Manager who will liaise with the Director of Operations or the Head
Estates regarding any temporary storage or security requirements.
1.3 Specific guidance applies to the Disposal of IT assets and is detailed in Section
2. Disposals- General
2.1 The Departmental Manager must in all instances of disposal complete the form at
Appendix I. He/She must be an authorised officer on the Trusts Delegation List which
is maintained by the Technical Accounts Section in Trust Finance.
2.2 The form requests the following information to be completed:-
a description of the item, including its size, weight, age etc.
date of purchase
the serial number
the name of the manufacturer
the asset tag number/bar code (EBME Code)
the condition of the item, whether it has been checked for safety, details of its
maintenance history, hazard notices, or whether it is being condemned *
the net book value of the item (obtained from the Capital Accountant) &
estimated proceeds at disposal
financial coding of the Capital /Revenue or Charitable Fund Item
the location of the item
details of potential buyers
the name of the contact name & requesting the disposal
authorization by a delegated officer
action by the Procurement Manager (PM)(for PM use only on the reverse of
*Liaison with the EBME Electronics Manager is essential and must be followed at all
times. (Electronic Items only). The EBME Manager will report relevant condemned
items to the Capital Accountant in Finance.
2.3 On completion of the Form (accompanied by a complete inventory of items of
applicable) the form will be forwarded to the Deputy Director of Finance. (Not the PM)
2.4 The Deputy Director of Finance, or the Financial Controller (in the DDF absence)
will ensure that the form is date stamped on receipt; checked for authorized signatory
and request confirmation of the item from the Capital Accountant regarding its Asset
2.5 Upon satisfactory completion of the checks the Deputy Director of Finance or the
Financial Controller, will authorize the recording of the Disposal. A copy will be sent
to ELFS the original will be passed to the Procurement Manager (PM) for formal
disposal proceeding to commence.
2.6 The PM must ensure that the process of disposal is in accordance with the Trusts
Standing Financial Instructions. Section 24 and the Scheme of Delegation.
2.7 Where it is practical to do so the PM should inspect the goods where possible
and determine the most appropriate means of disposal in consultation with
specialised officers e.g. Health & Safety Officer, EBME Officer. The PM will ensure
that any Part Exchange deals with suppliers provide the best value for money.
2.8 When an item is declared surplus to requirements the PM will circulate across the
NHS Trust Network any Equipment or Goods must have a full service/maintenance
records and the recipient or purchaser must arrange the collection process and bear
the transportation risk. An indemnity for Equipment or Goods will be required on
2.9 If no offers are received the PM will either:-
in the case of manufacturing or trading sell the item(s) back to the original
supplier on mutually acceptable terms
arrange for the item(s)to be offered at public auction(possibly on site)via the
use a broker or contractor for scrap etc
2.10 Under no circumstances should items of even negligible value be given away to
a third party, and no item should be sold without ascertaining if there is an alternative
use for it.
2.11 In the event of any sale of equipment or any other items, the PM will notify the
Deputy Director of Finance the Capital Accountant and the EBME Manager by
copying the form at App I to all officers.
2.12 The Capital Accountant will ensure that any Profit and Loss or Exchange is
promptly and correctly accounted for through the Trusts General Ledger System and
the Trusts Fixed Asset System.
2.13 In any event a part exchange of equipment to a manufacturer or supplier
requires the completion of the form at App I and must make reference to the
purchase of the new goods, the requisition number, date of exchange etc. The form
should be sent to the Deputy Director of Finance as normal, with a copy being
attached to the Purchase Requisition for processing in the Procurement Department.
2.14 The Director of Operations will ensure that goods for disposal are kept secure at
all times pending physical sale.
3. Disposal of IT Assets
3.1 The Head of IT Services will ensure that all IT assets are disposed of in
a) Trust’s policy for the Disposal/Sale of Surplus Assets,
b) Directive 2002/96/EC on Waste Electrical and Electronic Equipment
c) Best practices on ensuring logical assets are irretrievably destroyed
during the disposal process.
3.3 The term ‘IT asset’ is used as defined in BSI Code of Practice for Information
Security Management BS ISO/IEC 27002:2005 (BS7799).
The main types of assets include:
a) Physical: e.g. computer equipment, comms equipment, removable media;
b) Logical: e.g. databases and data files, application software, systems
Note that an IT asset can be both physical and logical (e.g. data cd containing a
3.4 When a local IT asset (e.g. printer, PC, monitor, etc) is identified as surplus to
requirements, it should be returned without delay to IT Services for reuse or disposal.
The ‘owner’ should initially notify the IT Helpdesk x83135 and agree method of
collection/delivery. The local asset register should be updated accordingly.
3.5 All unused, redundant and outdated equipment should be returned to IT Services
where it will be disposed of in the appropriate manner. Some will be used for spares,
with the remainder being deemed as regulated ‘WEEE scrap’ and handled
3.6 All physical components containing or suspected to contain logical assets
(including storage devices such as hard disks and media such as tapes, cds) will be
removed from the WEEE scrap and handled separately (see below).
3.7 WEEE scrap will be disposed of through a third party company which is certified
by the Environmental Agency under the Control of Pollution Act as registered
carriers/disposers of controlled waste. Prior to collection all physical assets will be
stored securely. At collection time the processes will be overseen by a senior
member of IT Services ensuring a full and complete asset register is compiled.
Following collection, the company will supply a Certificate of Disposal identifying
each item of equipment by its asset/serial number confirming that the waste has
been treated appropriately and disposal/destruction has been carried out in an
environmentally sound and correct manner.
3.8 Where it is the Trusts interest to do so kit to be disposed of that was purchased
after 13 August 2005,will be returned back to the ‘producers’ rather than through a
third-party – similar procedures as those outlined above will be used.
3.9 IT assets will not, under any circumstances, be sold or donated to third parties
(e.g. schools, employees, local businesses, etc.) nor will the physical assets be
placed in the general rubbish stream (e.g. skips) for disposal in landfill.
3.10 In special circumstances the Trust will dispose of redundant specialist IT
equipment through computer brokers, in which case the processes as defined in
section 2 must be carried out to determine whether the asset is recorded on the
Trust’s capital asset register or not, and the form at Appendix 1 must in all cases be
completed. No logical assets must be included in the sale. Additionally assurances
must be obtained from the buyer that they will take full responsibility for future correct
disposal of the equipment under the WEEE regulations.
3.11 To ensure prevention of unauthorized access to data, all physical components
containing or suspected to contain logical assets will be processed according to the
intended future use. If a storage device is to be reused outside the IT Services
Department, it will be reformatted and overwritten at least 10 times using appropriate
software before being prepared for reuse. If a storage device is to be scrapped it will
be processed as per WEEE scrap as detailed above but with the additional
guarantee that it will be shredded and never reused.
3.12 If in doubt of the status of any IT related equipment regarding disposal please
contact the IT Services Helpdesk x83135 who will be pleased to advise.
4. Billing Procedures
4.1 In accordance with the Trusts Standing Financial Instructions the Director of
Finance is responsible for designing, maintaining and ensuring compliance with
systems for the proper recording, invoicing, collection and coding of all monies due,
and for taking appropriate recovery action on all outstanding debts.
4.2 Where the sale of an asset has been agreed, the PM or the IT Manager will be
responsible for raising a standard ‘Request for Invoice Form’, the form must be
promptly sent to the East Lancashire Financial Services (ELFS) Credit Control
Section. The detail on the form must include the Fixed Asset Number when
4.3 The price will be the agreed Market Price plus VAT between both parties and
acknowledged by signature of the buyer and seller on the inventory/contract of sale
drawn up by the PM, a copy of which will be given to the buyer.
4.4 Under no circumstances must the goods leave the premises until the buyers
account has been credited and the funds have cleared the Trusts Bank Account. The
PM or the IT Manager will verify this with the Credit Controller, Technical Accounts
Section. Notification will then be given to the purchaser where an organization
handover of goods will take place.
4.5 Debt Recovery procedures will be applied in accordance with the Finance
REQUEST TO DISPOSE OF EQUIPMENT
This form must be forwarded to the Deputy Director of Finance, Strategy and
Governance, Park View Offices, RBH on completion
Description of Equipment
Date of Purchase Serial Number
Manufacturer Current Location
Condition (Please ) Very Good Good Fair Poor
Part Exchanged for the purchase of Requisition No. Value of P.Ex.£
Nature of Disposal if not Part Ex ? RESALE SCRAP CONDEMNED
If resale, any potential buyers suggested?
Date when Disposal required: Please allow at least 4 weeks for arrangements to be
Arrangements to view Name Please print
Tel. No. / E mail Address
Are Service Records/Instruction
Capital Asset YES NO Donated Asset YES NO
Capital Asset Number: Net Book Value £
Estimated Proceeds on Disposal £
COST CENTRE /
Income Codes for Proceeds: CAPITAL
* To be completed by the Budget/Fund * REVENUE
Disposal requested by:
SIGN PRINT NAME & DATE
Authorised by Departmental
Manager SIGN PRINT NAME & DATE
Authorised by Director of Finance
SIGN PRINT NAME & DATE
For East Lancs Procurement and Trust I.T. Department Use Only
Date Request Received
Signed – Procurement /IT Manager
Finance Book Value
Month to advertise in Aspel’s Gazette
Circulate within Division YES NO
Deadline for Offers
Invoice Request Actioned to Finance By:- Date:-
Payment Confirmed Date
Date arranged for the Collection of Goods
Appendix 4 KEY PERFORMANCE INDICATORS - ELHT
No KPI MEASURE COMPARES INDICATES BENEFIT
1 % of spend by PO. Value of invoices paid to Level of expenditure under procurement Supports need for roll out of order
Purchase Orders raised. control (ie without PO). system and demand management
to drive improved cost control and
2 % of maverick spend. Value of purchase orders after Incorrect processes, and potential for Improved control and compliance
invoice receipt. ordering of non catalogue items. to contract.
3 % of spend under contract. Value of PO items with or without Use of goods and services outside of Identifies lost volume and
Contract Reference. contracts. Potential non compliant aggregation opportunities.
procurement. Ensures legally compliant
procurement process undertaken.
4 % 3 way match (volume Volume and value of invoices Effectiveness of procurement controls Enables prompt payment.
and value). matched with PO and Goods and goods receipt processes. Identifies issues with Goods
Receipt. Receipts process.
5 % of spend mapped to Value of spend allocated to Purchase from catalogue and approved Provides visibility of spend profile
eClass. category area. suppliers. Ability to baseline spend. for ongoing commitment to
6 % of spend via P2P Number of Requisitions received Level of automation and control Drives process efficiency by
electronically, and processed via reached. automation throughout the
auto create to supplier. process chain.
7 Procurement Return on Cost of procurement vs value of Contribution of procurement to the Supports for procurement
Investment (ROI). processed transactions and Authority. controls.
8 Procurement Steering RAG status. Maturity of Authority to progress Enable visibility of procurement
Group in place. procurement agenda. opportunity to senior
9 Local Workplan agreed. RAG status. Maturity of Authority to progress Enable Authority to drive CPS
procurement agenda. procurement strategy as well as
10 Formal Benefits sign off Dialogue on process principles. Maturity of Authority to progress Ensures Authority has visibility of
process in place. Recorded by RAG status. procurement agenda. regional contracts and ability to
No KPI MEASURE COMPARES INDICATES BENEFIT
11 Use of Magic. RAG status. Maturity of Authority to progress Enables Authority to monitor
procurement agenda. delivery of procurement projects.
12 Authority RAG status Maturity of Authority to progress Ensures Authority senior
commercial/procurement procurement agenda. management team are engaged
strategy agreed. with procurement.
13 Savings benefit. Savings target. Non pay trading gap. Cost Improvement Delivery.
14 Systems efficiency savings. Invoice transaction costs. Supply chain improvement. Cohesive supply chain