PROCUREMENT PROCESS CONTROL MANUALvra.com/kmportal/policies/policies/VRA Policies... · Process...

Process Control Manual for Procurement

Volta River AuthorityCONTROLLED DISCLOSURE

Document Location

Revision History

Revision date Summary of Changes

Document Reviewers

Name Title

Alexandra Totoe Deputy Chief Executive, Finance

Richmond Evans-Appiah Director Pr

William Sam-Appiah Director Engineering

Ann Siaw Project Team Lead (Procurement)

Compliance with this Process

Compiled by:

Functional Responsibility:

Accountable

Authorised by:

Document Number:


Server location...

Summary of Changes

Date of Issue

Deputy Chief Executive, Finance

Director Procurement

Director Engineering

Project Team Lead (Procurement)

APPLICABILITY

rocess Control Manual is mandatory throughout Volta River Authority

PROCUREMENT

PROCESS CONTROL

MANUAL

PricewaterhouseCoopers


Director, Procurement


PROC/01/2012

1

Changes marked

Date of Issue Version

is mandatory throughout Volta River Authority

PROCUREMENT

PROCESS CONTROL

MANUAL


2Volta River AuthorityCONTROLLED DISCLOSURE

TABLE OF ABBREVIATIONS

Abbreviation Definition

AP Approval

APO Accounts Payable Officer

CE Chief Executive

CM Category Manager

CO Category Officer

CTRB Central Tender Review Board

DCE Deputy Chief Executive

DE Director Engineering

DF Director Finance

DO Delivery Order

DP Director Procurement

ET Evaluation Team

ETC Entity Tender Committee

FCVR Final Classification and Valuation Report

ICT International Competitive Tendering

IDF Import Declaration Form

IF Informed

IN Input

KPI Key Performance Indicator

MPO Material Planning Officer

MTRB Ministerial Tender Review Board

NCT National Competitive Tendering

OIC Officer In-Charge

OSA Oracle Sourcing Application

PO Purchase Order

PQ Price Quotation

PR Processing

PV Payment Voucher

RCM Risks and Controls Matrix

RfQ Request for Quotation

RV Review

SAO Stores Accounting Officer

SO Shipping Officer

VRA Volta River Authority



TABLE OF CONTENTS

TABLE OF ABBREVIATIONS...................................................................................................................................... 2

Introduction............................................................................................................................................................. 11

Foreword.................................................................................................................................................................. 11

Purpose .................................................................................................................................................................... 11

Scope ........................................................................................................................................................................ 11

Information processing objectives ......................................................................................................................... 12

System training requirements ................................................................................................................................ 12

Applicable policies................................................................................................................................................... 13

Procurement operating model................................................................................................................................ 14

Single Frame ............................................................................................................................................................ 15

Symbol legend ......................................................................................................................................................... 16

1. STRATEGIC PROCUREMENT MANAGEMENT ......................................................................................... 17

Process description.............................................................................................................................................. 17

Strategic procurement management process flow chart .................................................................................. 18

Strategic procurement management activity detail .......................................................................................... 19

2. PROCUREMENT SPEND REVIEW .............................................................................................................. 21


Procurement spend review process flow chart .................................................................................................. 22

Procurement spend review activity detail.......................................................................................................... 23

Procurement spend review key performance measures ................................................................................... 25

Procurement spend review standard reports .................................................................................................... 25

3. MANAGEMENT INFORMATION REPORTING .......................................................................................... 26


Segregation of duties matrix............................................................................................................................... 26

Management information reporting process flow chart................................................................................... 27

Management information reporting process activity detail ............................................................................. 28

Management information reporting key performance measures .................................................................... 29

Management information reporting standard reports ..................................................................................... 29

Management information reporting process risk and control matrix (RCM) ................................................ 30

2. REQUISITION PROCESS ............................................................................................................................... 31





Requisition process flow chart ........................................................................................................................... 32

Requisition activity detail ................................................................................................................................... 33

Requisition key performance measures............................................................................................................. 34

Requisition standard reports ............................................................................................................................. 34

Requisition process risk and control matrix...................................................................................................... 35

PROCUREMENT METHODS .................................................................................................................................... 36


Overview............................................................................................................................................................... 36

4. PRICE QUOTATION ....................................................................................................................................... 39


Price quotation process flow chart ..................................................................................................................... 40

Price quotation activity detail ............................................................................................................................. 41

6. SOLE SOURCING............................................................................................................................................ 44


Sole sourcing process flow chart ........................................................................................................................ 45

Sole sourcing activity detail ................................................................................................................................ 46

7. TWO-STAGE TENDERING ............................................................................................................................ 49


Two-stage tendering activity detail .................................................................................................................... 51

8. NATIONAL AND INTERNATIONAL COMPETITIVE TENDERING ......................................................... 56


National and international competitive tendering activity detail .................................................................... 58

9. RESTRICTED TENDERING........................................................................................................................... 63


Restricted tendering activity detail .................................................................................................................... 65

Procurement methods key performance measures .............................................................................................. 67

Procurement methods standard reports ............................................................................................................... 67

Procurement methods process risk and control matrix (RCM)........................................................................... 68

10. CONTRACT AWARD................................................................................................................................... 72


Contract award process flow chart ..................................................................................................................... 73



Contract award activity detail............................................................................................................................. 74

STORES AND INVENTORY MANAGEMENT PROCESSES................................................................................... 76

11. ITEM CREATION ........................................................................................................................................ 76



Item creation process flow chart ........................................................................................................................ 77

Item creation activity detail ................................................................................................................................ 78

Item creation standard reports........................................................................................................................... 79

12. ISSUING ....................................................................................................................................................... 81



Issuing flow chart ................................................................................................................................................ 82

Issuing activity detail .......................................................................................................................................... 83

Issuing key performance measures .................................................................................................................... 84

Issuing standard reports ..................................................................................................................................... 84

Issuing process risk and control matrix (RCM)......................................................................................................... 85

10. RECEIVING (GOODS FROM SUPPLIERS) .............................................................................................. 86



Receiving goods process flow chart.................................................................................................................... 87

Receiving goods activity detail ........................................................................................................................... 88

Receiving goods key performance measures ..................................................................................................... 89

Receiving goods standard reports ...................................................................................................................... 90

11. RECEIVING (DIRECT RECEIPT TO PROJECT SITE) ............................................................................ 91



Receiving (direct receipt to project site) process flow chart ............................................................................ 92

Receiving (direct receipt to project site) activity detail .................................................................................... 93

Receiving (direct receipt to project site) key performance measures .............................................................. 94

Receiving (direct receipt to project site) standard reports ............................................................................... 94

12. RECEIVING (SERVICES) ........................................................................................................................... 95





Receiving services process flow chart ................................................................................................................ 96

Receiving services activity detail ........................................................................................................................ 97

Receiving services key performance measures.................................................................................................. 97

Receiving services standard reports................................................................................................................... 98

13. RECEIVING (SAFEKEEPING) ................................................................................................................... 99



Receiving (safekeeping) process flow chart ......................................................................................................100

Receiving (safekeeping) activity detail..............................................................................................................101

Receiving (safekeeping) key performance measures .......................................................................................102

Receiving (safekeeping) standard reports ........................................................................................................102

14. RECEIVING (SAMPLES) ...........................................................................................................................103

Process description.............................................................................................................................................103

Segregation of duties matrix..............................................................................................................................103

Receiving (samples) process flow chart ............................................................................................................103

Receiving (samples) activity detail ....................................................................................................................105

15. RECEIVING (TRANSIT) ............................................................................................................................107



Receiving (transit) process flow chart...............................................................................................................108

Receiving (transit) activity detail ......................................................................................................................109

16. RETURNS TO SUPPLIER ..........................................................................................................................114



Return to supplier flow chart.............................................................................................................................115

Return to supplier activity detail .......................................................................................................................116

Return to supplier key performance measures ................................................................................................117

Return to supplier standard reports .................................................................................................................117

14. PHYSICAL INVENTORY COUNT .............................................................................................................119





Physical inventory count process flow chart ....................................................................................................120

Physical inventory count activity detail ............................................................................................................121

Physical inventory count key performance measures......................................................................................123

Physical inventory count standard reports.......................................................................................................123

15. CYCLE INVENTORY COUNT....................................................................................................................125



Cycle inventory count process flow chart .........................................................................................................126

Cycle inventory count activity detail .................................................................................................................127

Cycle inventory count key performance measures...........................................................................................129

Cycle inventory count standard reports............................................................................................................129

16. PROJECT RETURN TO INVENTORY ......................................................................................................133



Project return to inventory process flow chart .................................................................................................134

Project return to inventory activity detail.........................................................................................................135

Project return to inventory standard reports ...................................................................................................136

Project return to inventory risk and control matrix (RCM) ............................................................................137

17. INTER-STORES TRANSFER (FROM CENTRAL TO SATELLITE STORES) ......................................138



Inter-stores transfer process flow chart............................................................................................................139

Inter-stores transfer activity detail ...................................................................................................................140

Inter-stores transfer key performance measures .............................................................................................141

Inter-stores transfer standard reports ..............................................................................................................141

Inter-stores transfer process risk and control matrix (RCM) .........................................................................142

Inter-stores transfer process risk and control matrix (RCM) .........................................................................142

18. VENDOR SET-UP .......................................................................................................................................143



Vendor set up process flow chart ......................................................................................................................144

Vendor set-up activity detail..............................................................................................................................145



Vendor set-up key performance measures .......................................................................................................147

Vendor set-up process risk and control matrix (RCM)....................................................................................148

19. MASTER DATA MANAGEMENT..............................................................................................................149



Master data management activity detail...........................................................................................................151

Master data management key performance measures ....................................................................................152

Master data management standard reports .....................................................................................................152

Master data management process risk and control matrix (RCM) ................................................................153

20. RE-ORDER POINT PLANNING................................................................................................................154



Re-order point planning process flow chart .....................................................................................................155

Re-order point planning activity detail .............................................................................................................156

Re-order point key performance measures ......................................................................................................157

Re-order point planning standard reports .......................................................................................................157

Re-order point planning process risk and control matrix (RCM)...................................................................158

SHIPPING PROCESSES............................................................................................................................................159

21. EXPORT ......................................................................................................................................................159



Export process flow chart ..................................................................................................................................160

Export activity detail ..........................................................................................................................................161

Export standard reports.....................................................................................................................................162

22. HARBOUR CLEARING ..............................................................................................................................163



Harbour clearing process flow chart .................................................................................................................164

Harbour clearing activity detail.........................................................................................................................165

Harbour clearing standard reports ...................................................................................................................168

23. AIRPORT CLEARING ................................................................................................................................170





Airport clearing process flow chart ...................................................................................................................171

Airport clearing activity detail ...........................................................................................................................172

Airport clearing key performance measures ....................................................................................................174

Airport clearing standard reports......................................................................................................................174

24. BORDER CLEARING .................................................................................................................................175



Border clearing process flow chart ....................................................................................................................176

Border clearing activity detail............................................................................................................................177

Border clearing key performance measures .....................................................................................................179

Border clearing standard reports ......................................................................................................................179

Shipping process risk and control matrix (RCM) ............................................................................................180

25. CONTRACT MANAGEMENT ....................................................................................................................181



Contract management process flow chart ........................................................................................................182

Contract management activity detail ................................................................................................................183

Contract management key performance measures..........................................................................................185

Contract management standard reports...........................................................................................................186

25. SERVICE DELIVERY .................................................................................................................................188



Service delivery process flow chart ...................................................................................................................189

Service delivery process activity detail..............................................................................................................190

Service delivery key performance measures.....................................................................................................191

Service delivery standard reports......................................................................................................................192

Service delivery process risk and control matrix (RCM) .................................................................................193

APPENDICES .............................................................................................................................................................194

Appendix I PPA/VRA AUTHORISATION THRESHOLD MATRIX ...................................................................194

Appendix II OVERVIEW OF JOB ROLES (SAMPLE).......................................................................................196

Appendix III – Standard Documents .......................................................................................................................197





IntroductionThe purpose of the Procurement Process Control Manual (PCM) is to serve as a detailed communication

guideline in delivering consistent and structured procurement processes within the Authority. The processes

covered are aligned to the Oracle R12 software and are also designed to align processes by functionality. The

PCM is driven by content from the process models developed during the Business Process Re-engineering

project.

ForewordThe PCM was developed based on the scope and nature of business activities in the functional area for which it

is deemed responsible at the date on which the PCM was approved. Even though the PCM is limited to the

Procurement Function, there may be certain interdependencies with processes in other functional areas. It is

thus recommended that users within the Procurement Function familiarise themselves with the responsibilities

and interdependencies with other functional areas within the Authority and External Regulators to ensure the

correct interpretation of its content. Periodic reviews of the PCM should be done to ensure any changes in

business and regulatory requirements are incorporated into future releases.

PurposeThis document serves multiple purposes including:

Establishes detailed procedures for the Authority to follow in executing it’s key procurement

responsibilities

Provides a reference guide for the Procurement Department

Provides as a training manual for new employees

Supports Internal Control Framework initiatives for documenting key activities and identifying key

controls

ScopeThe PCM covers the scope and sequences of activities, control points and responsibilities required to perform

technical and administrative Procurement Functions. It is intended to provide a holistic view of all the key

elements of each procurement process including process measures and reporting requirements. It comprises

the following elements:

Process and Sub-Process Flow(s); Activity detail (narratives to the process flows); Segregation of duties matrix; key performance measures (KPIs) documented at an Activity Process Flow level and/or for Activities; Key reports documented at Activities or Tasks; Risks and Controls Matrix (RACM) documented at a Sub-Process Flow and/or Activity Process Flow

level; and Referenced documents such as policies.

The processes covered in the PCM are:

Requisitioning;

Procurement methods;

o Sole/Single sourcing

o Price quotations



o National/International Competitive Tendering

o Restrictive tendering

o Two-stage tendering

Preparation of tenders

Tendering

Contract management

Stores and inventory management

o Item creation

o Issuing

o Receiving (goods)

o Receiving (services)

o Return to supplier

o Physical inventory count

o Cycle inventory count

o Project returns to inventory

o Inter-stores transfer

o Vendor set-up

o Re-order point planning

Shipping

o Exports

o Harbour clearing

o Airport clearing

Information processing objectivesThe primary information processing objectives of the procurement function are:

Purchases are approved by appropriate individuals and recorded on a timely basis;

Receipts are based on legitimate purchases;

Procurement spend is properly authorised, recorded and monitored;

Access to update, change and delete standing data information (e.g. vendor master, price contract file

etc) is limited to appropriate individuals;

Adequate segregation of authorisation and custodial functions; and

Adequate vendor evaluation is conducted prior to selection.

System training requirementsThe following systems are applicable to the procurement function:

Oracle ERP MS Excel MS Project Market Analysis Module Spend Analysis Module Savings tracking system Online research tools Business intelligence tools



Applicable policiesThe following policies and regulations are referenced to this manual.

Public Procurement Authority Act 2003 (Act 663)

Public Procurement Authority Manual

Public Procurement Authority Regulations

VRA Chart of Authority



Procurement operating model

INSERT PROCUREMENT OPERATING MODEL



Single FrameThe single frame provides an overview summary of the entire procurement cycle.



Symbol legend

Symbol Legend

Start

Control Reference Point

Approval Process

Decision Point

Manual Input

Manual Process

Automated Process

Referenced Process

Output Document

Pre-defined Workflow Routing

Process Flow Connector

Process End

A

End

START

CRP



1. STRATEGIC PROCUREMENT MANAGEMENT

Process description

Overview

This process provides guidance for delivering strategic supply chain value to the business.

Process Owner


Process Objectives

To ensure control and delivery of value streams to the business.

To provide a framework by which corporate and functional strategies are aligned

Process Scope

This process applies to procurement value delivery to the business

Timeframe

N/A



Strategic procurement management process flow chart

End

1. DP collatesAuthority’s

procurementplan from

departments

2. DP withCM identify

savingsopportunities

and extractsavings plan

6. CMimplements

categorystrategy

4. CMdevelopscategory

strategy toachieve cost

savings target

3. DPapportionscost saving

target tocategories,committing

CMs to targets

5. DP reviewsand approves

category strategydocument for

implementation

A

7. CMreports on

monthly costsavings

8. DP reviewsmonthly cost

savings reportand revises

plan



Strategic procurement management activity detail

ActID

Process Flow Responsibility Tasks InvolvedTransactionType(Manual/Auto)

OutputControlref. point(CRP)

1. Collate Authority’sprocurement plan

DirectorProcurement

Director Procurement collates spendrequirements for materials andservice from the variousdepartments of the Authority into aprocurement plan.

The procurement plan is approved aspart of the Authority’s overall annualplan.

Manual ApprovedProcurementPlan

2. Set cost savingtargets (% ofapproved budget)for the variouscategories of spend

DirectorProcurement

Director Procurement in conjunctionwith Category Managers identifypotential areas for savings and addedvalue, and extract cost savings plan

Manual Business costsavings plan

3. Apportion costsaving target tocategories

DirectorProcurement

Director Procurement apportionscost saving target to CategoryManagers on the basis of savingspotential of categories and commitsmanagers to targets

Manual Cost savings planby category

4. Develop categorystrategies

CategoryManager

Category Manager develops categorystrategy to achieve cost savingstarget

Manual Category StrategyDocument

5. Approve categorystrategy document

DirectorProcurement

Director Procurement reviews andapproves Category StrategyDocument for implementation byCategory Managers

Manual ApprovedCategory StrategyDocument

6. Implement categorystrategy

CategoryManagers

Category Managers implementcategory strategy keeping a record of

Manual Record of costsavings

START

CRP



ActID



cost savings and value adds that areachieved for each transactionand cumulatively

7. Report on costsavings

CategoryManagers

Category Managers report onmonthly cost savings for the variouscategories

Manual Monthly costsavings report

8. Review monthly costsavings report

DirectorProcurement

Director Procurement reviewsmonthly cost savings report andrevises plan to achieve annual target

Manual

END



2. PROCUREMENT SPEND REVIEW

Process descriptionOverview

This process provides guidance for reviewing and aligning spend and savings target as well as planning

resources to meet supplier relationship expectations

Process Owner


Process Objectives

To ensure a positional spend is presented for management decision making

To forecast future spend and provide adequate required resources

Process Scope

This process applies to reviewing spend within approved budgets and maverick spend outside budget

Timeframe

N/A



Procurement spend review process flow chart



Procurement spend review activity detail

ActID



1. CollateAuthority’sprocurementplan

DirectorProcurement

Director Procurement collates spendrequirements for materials and servicefrom the various departments of theAuthority into a Procurement Plan

Manual ApprovedProcurementPlan

2 Review spendanalysis

DirectorProcurement

a) aDirector Procurement reviewsspend for various business unitsby category and comparesagainst budgetary provisionsand savings target.

b) Director Procurement inconjunction with CategoryManagers identify correctiveactions to re-align to budget andtargets

Manual ReviewedSpend AnalysisReport

3. Submit analysisreport

DirectorProcurement

Director Procurement submits SpendAnalysis Report to Deputy ChiefExecutive, Finance by email for review

Manual

4. Discuss analysisreport

DirectorProcurement

Director Procurement/ Deputy ChiefExecutive, Finance discuss analysisreport at management and executivemeetings respectively

Consensus on corrective action isobtained at both management andexecutive meetings

Manual

5. Implementcorrective

DirectorProcurement

Director Procurement in conjunctionwith relevant Heads of Departments

Manual

START



ActID



actions implement corrective actions

END



Procurement spend review key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. % of total savings target achieved by

category

Per savings plan Monthly Director

Procurement

Category Manager

2. Average credit days negotiated and agreed Per savings plan Quarterly Director

Procurement

Category Manager

Procurement spend review standard reports

SN Report Name Brief Description Purpose SourceReport

Frequency

Reviewer

1. Variance report This report shows the

differences between

planned/ budgeted and

actual spend

To identify areas and

reasons for significant

variances to re-align

actual to budget and

targets

ERP Monthly Director

Procurement

2. Spend analysis

report

This report provides a

distribution of total

spend across various

spend categories

To provide an analysis

of spend patterns over a

specified period

ERP Monthly Director,

Procurement



3. MANAGEMENT INFORMATION REPORTING


The purpose is to describe the activities to be followed to ensure relevant and timely management information

is distributed to identified stakeholders

Process Owner


Process Objectives

To ensure relevant and timely information for management and executive decision making To ensure the quality of reporting is validated by the relevant stakeholders

Process Scope

This process applies to procurement related information that impacts on VRA business performance

Timeframe

N/A

Segregation of duties matrix

Activity / Resources CategoryManager

DirectorProcurement

Deputy ChiefExecutive,Finance

Generate reports IN

Review report RV

Follow up on corrective actions RV

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Management information reporting process flow chart

1. DCE, F andDP engage

stakeholdersto definereporting

requirementsand timetable

2a. CategoryManagers (CM)

generate and reviewrelevant reports

2b. CMforwardsreports

generatedoutside the

system to DP

3. DP generatesconsolidated reportsand forwards to DCE,

F

4. DCE, F reviewsconsolidatedreport and

distributes torelevant

stakeholders fordiscussion andfurther action

5. CM liaiseswith heads ofbusiness unitsto implement

correctiveactions

6. DP reportson follow-up

actions toDCE,F and

otherstakeholders

End



Management information reporting process activity detail

ActID

ProcessFlow

Responsibility Tasks InvolvedTransactionType(Manual/Auto)


1. Define/ review

reporting

requirements

Deputy ChiefExecutiveFinance

Deputy Chief Executive Finance and DirectorProcurement engage relevant internal stakeholdersto define reporting requirements and timetable

(Reporting requirements should be reviewedperiodically, preferably every year)

Manual Reporting

requirements

2. Generate andreview reports

CategoryManagers

a) Category Managers generate and review

relevant reports.

b) For information generated outside the system,

e.g. compliance issues, Category Manager

forwards report to Director Procurement

Auto ManagementInformationReport

3. Generateconsolidatedreports

DirectorProcurement

Director Procurement generates consolidatedreports and forwards to Deputy Chief Executive,Finance

Auto

4. Reviewconsolidatedreports


Deputy Chief Executive, Finance reviewsconsolidated report and distributes to relevantstakeholders for discussion and further actionwhere applicable.

Manual

5. Implementimprovementactions

CategoryManagers

Category Manager liaises with heads of businessunits to implement corrective actions

Manual Documentedimprovementopportunity

6. Report onfollow upactions

DirectorProcurement

Director Procurement provides report on follow-upactions to Deputy Chief Executive, Finance andother stakeholders

START

END



Management information reporting key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Timely submission of management information

reports

5 days after month

end

Monthly Deputy Chief

Executive, Finance


2. % of timely implementation Per agreed

implementation plan

Monthly Deputy Chief

Executive, Finance


Management information reporting standard reports


Frequency

Reviewer

1. Procurement

reporting pack

The reporting pack comprises:

Overview of spend variance

against budget by category

and business unit

Overview of spend analysis

by category and business

unit

Compliance report

highlighting significant

compliance issues

Target cost savings and

variance analysis

Status on follow up actions

To provide executive and

management with relevant

spend information for

information purposes, decision

making and business

performance review

ERP/ other

relevant data

Monthly/

Quarterly

Deputy Chief

Executive

Finance



Management information reporting process risk and control matrix (RCM)Key risks

1. Management reporting targets may not be achievedN

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,F,O

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(C,A

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)

Fin

an

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(I,S

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pr

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(P,D

)

Fr

eq

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(E,D

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1 Management

Information

Reporting

To ensure reports are

timely and relevant for

management use

O N/A N/A N/A Deputy Chief Executive Finance and

Director Finance engage relevant internal

stakeholders to define reporting

requirements and timetable. Adherence to

management reproting targets are

monitored quarterly

N/A R P M N/A Deputy Chief

Executive,

Finance



2. REQUISITION PROCESS

Process description

Overview

The purpose of the process is to describe the communication and processes to be followed to manage user

demands and expectations by engaging a sequenced set of requirement gathering, prioritisation, resourcing,

and approval(s).

Process Owner

Users in various departments

Process Objectives

To efficiently manage User requests while setting and controlling service expectations;

To manage the intake funnel and integrate business demand for appropriate integrated prioritisation,

review and resolution; and

To ensure that requisitions are within budget limits and have gone through the appropriate approval

processes.

Process Scope

This process applies to any part of the Authority where staff can requisition for stock, non-stock items and

services.

Timeframe

On need basis.


Activity / Resources User Requestor’sLineManager

CategoryOfficer

Create internal requisition IN

Approve requisition AP

Informed IF

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Requisition process flow chart



Requisition activity detail

ActID

Process Flow Responsibility Tasks Involved

TransactionType(Manual/Auto)

Output

Controlref.point(CRP)

1. Check availabilityof items in stock

Requestor Requestor checks for availability of items instock on the system.

Manual

2. Generate storesrequisition

Requestor Requestor generates a stores requisition androutes it for systems check if item is instock.

Auto Generatedrequisition

3. Generateshopping cart

Requestor Requestor generates a shopping cart/specialpurchase and routes for systems check ifitem is not in stock.

Auto Generatedshopping cart

4. Verify requisition System The system checks for the following: Budget limit Financial approval threshold and

prompts for approval orrecommendation for approval

Appropriate cost center selection Status of previous carts Incompleteness

Auto Exceptionreport

5. Approverequisition

Requestor’sLine Manger

User’s Line Manager reviews requisitionand approves electronically. Request isrouted back to Requestor if request isdenied

Manual Approvedrequisition

6. For storesrequisition,requests arerouted to Stores

System After approval, System automaticallysubmits approved requisition to Stores tobegin issuing process

Auto

7. For Purchaserequisition,requests are

System After approval, System automaticallysubmits approved requisition to Buyer tobegin procurement process

Auto

START

CRP

CRP



ActID



Output


routed toCategory Officer

Requisition key performance measuresPerformance Measure Target Frequency Reviewer Reviewee

1. Requisition to approval cycle XX days Monthly Category Manager

Requisition standard reports


Frequency

Reviewer

1. Requisition

initiated details (by

category and

location)

The report provides details of

requisitions generated over a

given period, sorted by

category, location, etc.

To recognise the volume

of requisition generated

over a stated period

System Monthly Category Officer

2. Outstanding

requisitions

The report highlights

requisitions outstanding and

ageing status for the various

locations originating the

requisitions

To provide a summarised

source to prompt and

expedite action

System Weekly Category Officer

3. Stock versus non-

stock requisitions

The report segregates

requisitions serviced from

stock holding and those

directly sourced externally on

demand

To offer insight on

materials for which stock

holding may be necessary

and those that have to be

sourced on demand

System Monthly Category Officer

END



Requisition process risk and control matrixKey Risks:

1 Unauthorised requisitions are processed which may allow spending limits to be exceeded.

No

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(C,A

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an

cia

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tate

me

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Ac

co

un

t/D

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Fin

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on

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/P

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oc

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)

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ntr

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(I,S

,M,R

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Co

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(P,D

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Fr

eq

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y(E

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1 Requisitioning To ensure requisitions

are valid and

appropriately approved.

To ensure purchase

authorisation is based

on limits of authority

established by company

policies.

F V N/A N/A ERP performs an automated

check to ensure:

requisition is within budget and

appropriate cost centre selection.

Rejected requisitions are routed

to requestor for needed changes

to be made.

S P E N/A ERP Yes

2 Requisitioning To ensure special

purchase requests are

authorised

F V N/A N/A System approved requisitions

are reviewed and approved

electronically by a Line Manager

.

M P E N/A User's Line

Manager

Yes



PROCUREMENT METHODS

Process description

OverviewProcurement methods describe the processes, communications and actions to be followed in procuring

goods and services in accordance with the Public Procurement Act 2003, (Act 663) and the Authority’s

approval hierarchy.

Process Owner

Category Managers

Process Objectives

Ensure the regulatory requirements of Act 663 are complied with;

Ensure that request for purchase have gone through the appropriate approval processes as per

the General Approval Limits;

Ensure transparency and fairness throughout the tendering process; and

To ensure that only qualified suppliers are invited to tender.

Process Scope

This process applies to all goods and services purchased by the Authority. The procurement methods

covered in the PCM are:

Procurement Method Overview1

Price Quotation Price Quotation procurement method is used for : readily available goods or technical services that are not specially

produced or provided to the particular specifications of the Authority;and

goods where there is an established market if the estimated value of theprocurement contract is less than GH¢ 20,000 (goods), GH¢ 50,000(works), and GH¢ 20,000 (technical services).

Sole Sourcing Sole Sourcing procurement method is used with the approval of the PublicProcurement Authority (PPA) where: goods, works or services are only available from a particular supplier or

contractor, or if a particular supplier or contractor has exclusive rights inrespect of the goods, works or services, and no reasonable alternative orsubstitute exists;

there is an urgent need for the goods, works or services and engaging intender proceedings or any other method of procurement is impracticaldue to unforeseeable circumstances giving rise to the urgency which is notthe result of dilatory conduct on the part of the procurement entity;

1PPA 2003, Act 663, Part IV – Methods of procurement



owing to a catastrophic event, there is an urgent need for the goods,works or technical services, making it impractical to use other methods ofprocurement because of the time involved in using those methods;

a procurement entity which has procured goods, equipment, technologyor services from a supplier or contractor, determines that:

o additional supplies need to be procured from that supplier orcontractor because of standardisation;

o there is a need for compatibility with existing goods,equipment, technology or services, taking into account theeffectiveness of the original procurement in meeting the needsof the Authority;

o the limited size of the proposed procurement in relation to theoriginal procurement provides justification;

the procurement entity seeks to enter into a contract with the supplier orcontractor for research, experiment, study or development, except wherethe contract includes the production of goods in quantities to establishcommercial viability or recover research and development costs; or

the procurement entity applies this Act for procurement that concernsnational security, and determines that single-source procurement is themost appropriate method of procurement.

Restricted Tendering Restricted tendering procurement method may be used for reasons ofeconomy and efficiency, subject to the approval of the Board if: goods, works or services are available only from a limited number of

suppliers or contractors; or the time and cost required to examine and evaluate a large number of

tenders is disproportionate to the value of the goods, works or services tobe procured.

National Competitive

Tendering (NCT)

National competitive tendering procedures may be applied where onlydomestic suppliers or contractors may submit tenders. The NCTprocurement method is for goods with estimated values from GH¢ 20,000 toGH¢ 200,000, works with estimated contract values ranging from GH¢50,000 t0 GH¢ 1,500,000, and technical services ranging from GH¢ 20,000to GH¢ 200,000. The Authority may stipulate in the tender documents thattenderers must quote only in the local currency and payments must be madewholly in the local currency

International

Competitive Tendering

(ICT)

International competitive tendering shall be used whenever open competitivetendering is used and effective competition cannot be obtained unless foreignfirms are invited to tender. International competitive tendering is for goodswith estimated values above GH¢ 1,500,000, works with estimated contractvalues above GH¢ 2,000,000 and technical service above GH¢ 200,000. Itmay be considered in the following circumstances: The goods, works or services are proven not to be available under

competitive price and other conditions from two or more suppliers in

Ghana; or

Two previous national competitive tenders have failed to identify an

acceptable.

Two-stage tendering The Authority shall engage in procurement by two-stage tendering where: it is not feasible for the procurement entity to formulate detailed



specifications for the goods or works or, in the case of services, to identifytheir characteristics and where it seeks tenders, proposals or offers onvarious means of meeting its needs in order to obtain the mostsatisfactory solution to its procurement needs; or where the character ofthe goods or works are subject to rapid technological advances;

the procurement entity seeks to enter into a contract for research,experiment, study or development, except where the contract includes theproduction of goods in sufficient quantities to establish their commercialviability or to recover research and development costs.

Timeframe

Aligned to requests for goods and services.



4. PRICE QUOTATION


Activity /Resources

CategoryOfficer

CategoryManager

EvaluationTeam

DirectorProcurement

EntityTenderCommittee

Prepare tenderdocuments and selectsuppliers

IN

Review tenderdocuments RV

Evaluate quotationsRV

Review and approveevaluation report RV

RV

APGenerate purchaseorder

IN

Approve purchaseorder

AP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Price quotation process flow chart



Price quotation activity detail

Act IDProcessFlow



1. Route specialpurchasetransaction toCategoryOfficer

Requestor’s Line

Manager

After approving requisition is

automatically routed to Requestor’s

Category Officer.

Auto

2. Generate RFQ Category Officer Category Officer converts Purchase

Requisition into Request for Quotation

(RFQ) and completes RFQ schedules

Manual

3. Initiatesourcingmethod

Category Officer Category Officer determines total

estimated value of shopping cart and

initiates the Price Quotation sourcing

method if the purchase requisition is

between the ranges of GH¢0 and

GH¢20,000.

Manual

4. Populate on-line tenderdocument

Category Officer Category Officer selects a minimum of 3

preferred suppliers from registered

supplier database, populates online

Tender Documents, sets evaluation

criteria, and sends electronically to the

Category Manager for review

Manual Draft Tender

Documents

5. ReviewTenderDocuments

Category Manager Category Manager reviews Tender

Documents

Manual Final Tender

Documents

6a. Send TenderDocuments tosuppliers

Category Officer Category Manager instructs Category

Officer for electronic copies to invite

Manual Invitation to

tender

START



Act IDProcessFlow



bids from preferred suppliers

6b. Shopping cartvalue is lessthan or equalto GH¢5,000?

Category Officer/

Finance Officer/

Category

Manager/ User

Category Officer, Category Manager,

Finance Officer and Requestor evaluate

submitted bids and a winning bidder is

selected

Manual Evaluation

report

7. Shopping cartgreater thanor equal toGH¢ 5,000

Category Officer/

Category Manager

Category Manager proposes a team

composition for evaluation

Manual Proposed

Evaluation

Team

8. Approve teamcomposition

Director

Procurement

Director Procurement approves team

proposed by Category Manager

Manual Approved

Evaluation

Team

9. Public tenderopening

Category Officer Category Officer organises the tender

opening ceremony which takes place a

minimum of 14 days after tender date.

Manual

10. Input vendorquotations forevaluation

Category Officer Category Officer inputs vendor

quotations into the Oracle Sourcing

Application to map and generate

system ranking evaluation report.

Manual System

ranking

evaluation

report

11. Reviewevaluationreport

Evaluation Team Evaluation Team reviews system

ranking evaluation report, makes

recommendations and forwards to

Director Procurement for approval

Manual Draft

Evaluation

Report

12. Approveevaluationreport

Director

Procurement

Director procurement approves

evaluation report up to GHC5,000 and

notifies Category Manager

Manual

CRP

CRP



Act IDProcessFlow



13. Review andapproveevaluationreport

Entity Tender

Committee

a. Entity Tender Committee reviews

and approves evaluation for

GHC5,000.01 – GHC20,000 and b.

informs the Category Officer to run

purchase order by email, copying the

Category Manager and Director

Procurement

Manual Final

evaluation

report

14. Generatepurchaseorder

Category Officer Category Officer runs system to

generate purchase order which is

routed to Director Procurement for

approval

Manual Purchase

Order

15. Approvepurchaseorder

Director

Procurement

Director Procurement approves

purchase order and appends electronic

signature, and routes signed purchase

order to Category Officer

Manual Signed

purchase order

16. Submitpurchaseorder tosupplier

Category Officer Category Officer prints and scans

purchase order and sends electronically

to supplier and request receipt

acknowledgement

Manual Submitted

purchase order

END

CRP

CRP



6. SOLE SOURCING

Segregation of duties matrixActivity / Resources User Category

OfficerCategoryManager

Requestor’sLineManager

DirectorProcurement/Engineering

ChiefExecutive

PPA Board

Identify sole sourcingrequirements IN

Review sole sourcing planRV

Approve sole sourcingplan AP AP

Create request to use solesourcing IN

Approve request for solesourcing AP

Review justification forsole sourcing andquotation

RV

Generate purchase order IN

Approve purchase order AP AP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Sole sourcing process flow chart



Sole sourcing activity detail

ActID



1. Identify annualsole sourcingrequirements

Category Managers Category Managers identifies annual

sole sourcing requirement

Manual Draft annual Sole

Sourcing Plan

2. Review SoleSourcing Plan

Directors

Engineering/

Procurement

Directors Engineering/ Procurement

review sole source plan and forward it

to Deputy Chief Executives, Finance/

Engineering/ Operations and Entity

Tender Committee for review

Manual

3. Approve SoleSourcing Plan

Chief Executive Chief Executive approves Sole

Sourcing Plan and forwards request

to PPA Board for approval

Manual Approved Sole

Sourcing Plan

Approval letter to

PPA Board

4. Approve request PPA Board PPA Board approves sole sourcing

request

Manual PPA Board

approval letter

for sole sourcing

5. Create request touse sole sourcing

Requestor Requestor requisitions for items

indicating sole sourcing method with

justifications and copy of prior

approval and routes to Line Manager

for approval

Manual Online

requisition

6. Approverequisition

Requestor’s Line

Manager

Line Manager approves requisition

and routes to Category Manager for

review

Manual Approved

requisition

START

CRP

CRP

CRP



ActID



7. Reviewjustification forsole sourcing

Category Manager Category Manager reviews sole source

request in light of the Sole Sourcing

Plan and notifies Category Officer

Manual Agreed

procurement

method

8. Request forquotation

Category Officer a. Category Officer sends request for

quotation to preferred vendor.

b. Vendor/Supplier submits

quotation.

Manual Vendor quotation

9. Review quotation Category Manager Category Manager reviews quotation

and notifies Category Officer to

generate purchase order

Manual

10. Generatepurchase order

Category Officer Category Officer generates purchase

order which is backed by justification

for sole sourcing and routes to

Director Procurement to sign

Auto

11. Approvejustification andpurchase order

Director Procurement Director Procurement, Deputy Chief

Executive, Finance or Chief Executive

approve purchase order in accordance

with Authority’s Chart of Approval

Auto Approved

purchase order

12. Notify Category Officer Whoever approves the Purchase Order

forwards approved justification and

purchase order to Category Officer,

notifying the Category Manager.

Manual

13. Submit purchaseorder to supplier

Category Officer Category Officer prints and scans

purchase order and sends

electronically to supplier and request

Manual Submitted

purchase order

CRP



ActID



receipt acknowledgement

14. Prepare solesource report

Category Officer Category Officer prepares sole source

report for each sole source transaction

Manual Sole source

report

15. Submit andpublish solesource award

Director Procurement Publication of contract award on PPA

website in accordance with PPA

regulations

Manual Website

publication

END



7. TWO-STAGE TENDERING


Activity / Resources CategoryOfficer

CategoryManager

EvaluationTeam

DirectorProcurement


Receive requisition IN

Review tenderdocument RV

Approve tenderdocument

AP

Receive proposals IN

Evaluate proposals RV

Review and approveevaluation reports

RVAP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Two-stage process flow chart



Two-stage tendering activity detail

ActID



1a. Receiverequisition

Category Officer Category Officer receives

requisition from Requestor to

purchase services relating to

provision of research, experiment,

study or development services, or

where detailed specifications

cannot be formulated

Auto

1b. Assess the needfor two stagetendering

Category Officer Category Officer assesses the need

for two stage tendering

Manual

2. Populate on-lineTenderDocument

Category Officer Category Officer populates online

Tender Document, sets evaluation

criteria, and sends electronically to

the Category Manager for review

Manual Draft request

for proposals

3. Review TenderDocument

Category Manager Category Manager reviews tender

documents in consultation with

Legal Department and Requestor

Department where necessary and

seeks approval from Director

Procurement to place advert

Manual

4. Approve TenderDocument

Director Procurement Director Procurement approve

Tender Document, signs

electronically and notifies

Contracts Manager to place advert

in the media

Manual Approved

Request for

Proposals

START

CRP



ActID



5. Place advert/invite tenders

Contracts Manager Contracts Manager places advert in

media (refer section 47 for

procedures for inviting tenders or

applications to pre-qualify).

Contract Manager invites tenders

from selected suppliers where it is a

restrictive tender


tender

6. Sell TenderDocuments

Contracts Manager Contracts Manager sells tender

documents and proposes an

Evaluation Committee to the


Manual

7. ReceiveTechnical andFinancialProposals

Category Manager Category Manager receives

Technical and Financial Proposals

from suppliers

Manual Technical and

Financial

Proposals

8. Public tenderopening oftechnicalproposals

Category Officer Category Officer organises the

tender opening ceremony which

takes place a minimum of 14 days

after tender date.

Manual

9. Review technicalproposals

Chairman Evaluation

Team / Category

Manager

Evaluation Team reviews technical

proposal based on pre-determined

scoring criteria, make

recommendations and forwards to

Director Procurement for review

Manual Draft

Technical

Evaluation

Report

10. Recommendevaluationreport forapproval

Director Procurement Director Procurement forwards

Technical Evaluation Report to the

Entity Tender Committee with

recommendation for approval

Manual



ActID



11. Review andapproveevaluationreport

Entity Tender

Committee

Entity Tender Committee reviews

and approves recommendations

within its approval limit and

recommends for approval by either

Ministerial Tender Review Board

or Central Tender Review Board if

budget is beyond its approval limit

(Reference to approval hierarchy)

Manual Final

evaluation

report

12. Inform CategoryManager ofapproval

Entity Tender

Committee/

Ministerial Tender

Review Board/

Central Tender

Review Board

Entity Tender Committee/

Ministerial Tender Review Board/

Central Tender Review Board

inform Category Manager of

approved evaluation report based

on budgetary provisions and

directs for public opening of

financial proposals

Manual

13.Invite successfulbidders

Chairman Evaluation

Team / Category

Manager

Category Manager invites

successful bidders by email to

attend public opening of Financial

Proposals and returns bids to

unsuccessful bidders

Manual

14. Evaluatefinancialproposals

Category Manager Evaluation Team evaluates

Financial Proposals and prepares a

Combined Evaluation Report and

forwards to Director Procurement

review

Manual Draft

Combined

Evaluation

Report

CRP



ActID



15. Review andrecommendcombined reportfor approval

Director Procurement Director Procurement reviews and

recommends combined report for

approval and forwards to Entity

Tender Committee/ Ministerial

Tender Review Board/ Central

Tender Review Board based on

approval limits and informs Deputy

Chief Executive, Finance

Manual

16. Approvecombined report

Entity Tender

Committee/

Ministerial Tender

Review Board/

Central Tender

Review Board


Ministerial Tender Review Board/

Central Tender Review Board

approve combined report and

forwards to results to Director

Procurement who notifies Category

Manager to issue award

notification

Manual Final

Combined

Evaluation

Report

17. Preparenotification ofaward letter

Category Manager Category Manager prepares

Notification of Award and supplier

Acceptance Letter using standard

template, forwards to Chief

Executive for electronic signing and

informs Deputy Chief Executive,

Finance and User’s Director

Manual Notification of

Award and

Acceptance

Letter

18. Notify successfulbidder

Category Manager Category Manager notifies

successful bidder by issuing

Notification of Award and

Acceptance Letter by email

Manual Issue

Notification of

Award and

Acceptance

Letter

CRP



ActID



19. Accept award Successful Bidder Successful Bidder signs

Notification of Award and

Acceptance Letter and submits to

Category Manager.

Manual Signed

Notification of

Award and

Acceptance

Letter

END



8. NATIONAL AND INTERNATIONAL COMPETITIVE TENDERING



CategoryManager

EvaluationTeam

DirectorProcurement


Determine need forNCT/ICT

IN

Review tenderdocument RV

Approve tenderdocument

AP

Receive proposals IN

Evaluate proposals RV

Review and approveevaluation reports

RVAP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



National and international competitive tendering process flow chart



National and international competitive tendering activity detail

ActID



Output


1a. Route specialpurchase transactionto Category Officer

Requestor’s Line

Manager

After approving requisition from User,

User’s Line Manager routes special

purchase request to the Category Officer

Manual

1b. Determine sourcingmethod

Category Officer Category Officer determines total

estimated value of shopping cart and

sourcing method.

NCT procurement method is for goods

with estimated values from GH¢ 20,000

to GH¢ 200,000, works with estimated

contract values ranging from GH¢

50,000 t0 GH¢ 1,500,000, and technical

services ranging from GH¢ 20,000 to

GH¢ 200,000.

International competitive tendering is for

goods with estimated values above GH¢

1,500,000, works with estimated contract

values above GH¢ 2,000,000 and

technical service above GH¢ 200,000. 2

Manual

2. Populate on-lineTender Document

Category Officer Category Officer populates online Tender

Document, sets evaluation criteria, and

sends electronically to the Category

Manual Draft Tender

Documents

22 Public Procurement Act, 2003 (Act 663), Section 45

START



ActID



Output


Manager for review

3. Review tenderdocument

Category

Manager

Category Manager reviews tender

documents in consultation with Legal

Department and Requestor’s Department

where necessary and seeks approval from

Director Procurement to place advert

Manual Reviewed

tender

documents

4. Approve TenderDocument

Director

Procurement

Director Procurement approves Tender

Document, signs electronically and

notifies Contracts Manager to place advert

in media

Manual Approved

Request for

Proposals

5. Place advert/ invitetenders

Contracts

Manager

Contracts Manager places advert in media

(refer section 47 for procedures for

inviting tenders or applications to pre-

qualify). For ICT, the advert is posted on

one international media, two local media

and on the PPA website.


tender

6. Finalise and selltender documents

Category Officer Category Officer finalises tender

documents, makes them available for sale,

and organises pre-bid opening

conferences (for contract values above

GHC200,000)

Manual

7. Constitute evaluationteam

Chairman

Evaluation

Team/ Category

Officer

Category Officer constitutes an Evaluation

Team prior to bid opening and seeks

approval from Procurement Director

Manual Evaluation

Team

CRP



ActID



Output


8. Open bids Category Officer Category Officer is notified of

Procurement Director’s approval, and

organises public bid opening

Manual

9. Evaluate tenders Category Officer Evaluation Team evaluates bids and

submits evaluation report to Deputy Chief

Executive, Finance for review

Manual Draft

evaluation

report

10. Review evaluationreport

Deputy Chief

Executive,

Finance

Deputy Chief Executive, Finance reviews

evaluation report and forwards comments

to Procurement Director for finalisation of

report

Manual

11. Finalise report Procurement

Director

Procurement Director and Category

Manager address issues raised by the

Deputy Chief Executive, Finance, finalise

report and forward to Entity Tender

Committee for review and approval

Manual Final

evaluation

report

12. Approve evaluationreport

Entity Tender

Committee

Entity Tender Committee approves

Evaluation Report depending on the

recommended contract or endorses

evaluation report to the relevant authority

(Central or Ministerial Tender Review

Board)

Refer to appendix 1 for guidance on PPA

and VRA approval hierarchy

Manual Approved

evaluation

report

13. Review and approveevaluation report

Central/

Ministerial

Tender Review

Central/ Ministerial Tender Review Board

review and approve evaluation report.

Manual Approved

evaluation

reportCRP

CRP



ActID



Output


Board Unapproved evaluation reports are

returned and reworked by Entity Tender

Committee for approval

Notify approval Central/

Ministerial

Tender Review

Board

Central/ Ministerial Tender Review Board

notify Chief Executive who notifies


Executive Assistant of the Chief Executive

will notify Director Procurement of

approval?

Manual

14. Issue notification ofaward

Category

Manager

Category Manager notifies successful

bidder of award by issuing notification of

award and requests for Performance

Security

Manual Performance

Security

15. Prepare and issueAcceptance Letter

Category

Manager

Category Manager prepares and issues

Acceptance Letter using standard

template, forwards to Chief Executive for

electronic signing and informs Deputy

Chief Executive, Finance and User’s

Director and Successful Bidder

Manual Acceptance

Letter

16. Accept award Successful Bidder Successful Bidder signs Notification of

Award and Acceptance Letter and

submits to Category Manager by email and

by courier.

Manual Signed

Notification of

Award and

Acceptance

Letter



ActID



Output


END



9. RESTRICTED TENDERING


Activity /Resources

CategoryOfficer

CategoryManager

Requestor’sLineManager

DirectorProcurement/Engineering

Deputy ChiefExecutiveFinance/Engineering/Operations

Identify restrictedtenderingrequirements

IN

Review restrictedtendering plan

RV

Approverestrictedtendering plan

AP

Approverequisition AP

Reviewjustification forrestrictedtendering

RV

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Restricted tendering process flow chart



Restricted tendering activity detail

ActID



1. Identify annualrestricted tenderingrequirements

CategoryManager

Category Manager identifies annualrestricted tendering requirement basedon annual Procurement Plan

Manual Draft annualRestrictedTendering Plan

2. Review RestrictedTendering Plan

DirectorsEngineering/Procurement

Directors Engineering/ Procurementreview Restricted Tendering Plan andforward it to Deputy Chief Executives,Finance/ Engineering/ Operations forapproval

Manual

3. Approve restrictedtendering plan

Deputy ChiefExecutive,Finance/Engineering/Operations

Deputy Chief Executive, Finance/Engineering/ Operations approvesrestricted tendering plan and forwardsrequest to PPA Board for approval

Manual ApprovedRestrictedTendering PlanApproval letterto PPA Board

4. Approve request PPA Board PPA Board approves restrictedtendering request

Manual PPA Boardapproval letterfor restrictedtendering

5. Initiate requisitionand attachjustification

Requestor Requestor initiates requisitions andattaches justification for approval

Manual Requisition andjustification

6. Approve request Line Manager Line Manager approves requisition androutes to Category Officer

Manual Approvedrequisition

7. Select restrictedtenderingprocurement methodand short listedsuppliers

Category Officer Category Officer selects the restrictedtendering procurement method inSourcing, short listed suppliers,attaches justification for restrictedtendering and forwards to CategoryManager for approval

Manual

START

CRP

CRP

CRP



ActID



8. Review justificationfor restrictedtendering

CategoryManager

Category Manager reviews restrictedtendering request in light of therestricted tendering plan

Manual Agreedprocurementmethod

9a. Confirm whether twostage or pricecompetition

CategoryManager

Category Manager reviews nature ofpurchase. Where items relate toprovision of research, experiment, studyor development services, or detailedspecifications cannot be formulated, theCategory Manager applies two stagetendering method3. Otherwise CategoryManager applies price competition

Manual

9b. Initiate Two StageTendering

CategoryManager

Category Manager initiates Two StageTendering method if this is a two-stagerestricted tendering method

Manual

9c. Apply pricecompetition

CategoryManager

Category Manager applies pricecompetition using Price Quotation,National Competitive Tendering andInternational Competitive Tendering asapplicable ( refer to processes)

3PPA 2003,Act 663,section 36-37

END



Procurement methods key performance measures

Performance Measure Target Frequency Reviewer Reviewee/processowner

1. Requisition receipt to

Purchase Order cycle

Method Days Quarterly Category

Manager

Category

OfficerInternal LegalSole sourcing 5 -

Price quotation (0–5,000) 10 7

Price quotation (5,000 –20,000

42 37

Two-stage tendering 113 90

Restricted tendering 9 7

NCT/ICT 98 80

Procurement methods standard reports


Frequency

Reviewer

1. Evaluation report This report provides

results of tender

evaluations

To provide the basis for

contract awards

Evaluation

Committee

Aligned to bidding

process

Director

Procurement

2. Spend by

procurement

method

This report shows

proportions of spend to

the various procurement

methods

To provide information

for future strategic

decision making

ERP Quarterly Category Manager



Procurement methods process risk and control matrix (RCM)Key risks

1 An inappropriate procurement method may be selected for a transaction

2 Scope of service specified in tender documents may not be consistent with requirements

3 Non-compliance with requirements of the Public Procurement Act

4 Unauthorised use of a procurement method

5 Evaluation of proposals/ quotations could be biased

6 Misuse of restricted tendering/ sole source blankets

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

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Ca

teg

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,F,O

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(C,A

,V,R

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Fin

an

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Sta

tem

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cc

ou

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Dis

clo

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Fin

an

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l

Sta

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en

t

Asse

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Co

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/P

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Fo

cu

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Or

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Bu

sin

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Pr

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To

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Fr

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(E,D

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)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 All procurement

methods

C, O V N/A N/A Shopping cart value is reviewed

to determine an appropriate

procurement method for each

transaction per the Public

Procurement Act, 2003 Act

663).

Mn P E Public

Procurement

Act, 2003 Act

663)

Category Officer

2 All procurement

methods

O A N/A N/A Tender documents are prepared

with an evaluation criteria and

are reviewed by a Category

Manager to ensure the scope of

service detailed in the tender

document is consistent with user

requirements

Mn P E N/A Category Manager



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

l

Sta

tem

en

t

Ac

co

un

t/

Dis

clo

su

re

Fin

an

cia

l

Sta

tem

en

t

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

3 All procurement

methods

O A N/A N/A

Quotations/technical and

financial proposals are

evaluated by an independent

evaluation team proposed and

approved by Director

Procurement.

M, Mn P E N/A Director

Procurement

4 All procurement

methods

C V N/A N/A Evaluation reports are initially

reviewed by Director

Procurement and recommended

for approval to Entity Tender

Committee where amounts

exceed Director Procurement's

threshold. Approvals are given

according to approval threshold

specified in the Public

Procurement Act, 2003 (Act

663).

For two stage tendering

procurement method, technical

and financial proposals are

evaluated separately. A

combined evaluation report is

prepared and forwarded to


Ministerial Tender Review

Board/ Central Tender Review

Board for approval

Mn P E Public

Procurement

Act, 2003 Act

663)

Director

Procurement



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

5 All procurement

methods

O, C A, V N/A N/A Approvers for purchase orders

are dependent on the Authority's

approval threshold

Mn, M D E N/A Director

Procurement

6 All procurement

methods

F C, A N/A N/A Purchase Orders are system

generated and routed to

appropriate authorities for

approval. Approver performs a

system check to ensure purchase

order details tally with

requisitions details.

S, Mn D E N/A

7 Sole Sourcing O, C R, V N/A N/A Annual sole sourcing

requirements are identified and

incorporated in a sole souring

plan. Approval to sole source is

sought and granted by the VRA

Executive team.

Approved sole sourcing plan is

forwarded to Public

Procurement Authority Board

for further approval.

M, Mn P A N/A Category Manager

8 Sole Sourcing O R N/A N/A Sole sourcing requests with

justifications should be reviewed

in the light of the approved sole

sourcing plan for the year to

avoid abuse of the use of sole

sourcing blanket

M, Mn P E N/A Category Manager



No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

9 Restricted

tendering

O, C N/A N/A Annual restricted tendering

requirements is identified and

incorporated in a restricted

tendering plan. Approval is

sought and granted by the VRA

Executive team

The approved restricted

tendering plan is forwarded to

the Public Procurement

Authority Board

A N/A

10 Restricted

tendering

O R N/A N/A Restricted tendering requests

are to be supported with

justifications and reviewed in

the light of the approved

restricted tendering plan for the

year

M, Mn P E N/A Category Manager



10. CONTRACT AWARD



ContractsManager

DirectorProcurement

Chief Executive

Generate purchase orderIN

Approve purchase orderAP

Draw up contractIN

Negotiate contractIN IF IF

Sign contractAP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Contract award process flow chart

2. CO runs system togenerate PO and

routes PO to DP forapproval

3. DP approves POand notifies

Contracts Managerto draw up contract

Predefinedworkflowrouting

9a. Successfulbidder signsand submits

both copies toContractsManager

9b. ContractsManager

sends signedcontact to CE

for signing

9c. CE signscontract

and notifiesContractManager

10. ContractsManager sends

one copy oforiginal finalcontract toSuccessful

bidder

END

11. ContractsManger

creates extractfor

certificationand payment

A

1. CM notifiesCO by email,of acceptanceof award bySuccessful

Bidder

4. ContractsManager draws

up contractwith Legal

Dept

5. ContractsManager invites

CM, User andsuccessful Bidder

for contract

negotiations

6. ContractsManager sends

draft contract viaemail to

Successful bidder

for review

7. ContactsManager revises

contract based onSuccessfulBidder's

comments

8. ContractsManager sendstwo copies of

final contract tosuccessful bidderfor signing andattaches a copy

of PO



Contract award activity detail

ActID



1. Notify CategoryOfficer

Category

Manager

Category Manager notifies Category

Officer of acceptance of award by

Successful Bidder

Manual

2. Generatepurchase order

Category Officer Category Officer runs system to generate

purchase order and routes to Director

Procurement for approval

Manual Purchase

Order

3. Approve purchaseorder

Director

Procurement

Director Procurement, Deputy Chief

Executive, Finance or Chief Executive

approves purchase order in accordance

with Authority’s Chart of Approval.

Manual Signed

purchase

order

4. Draw up draftcontract

Category

Manager

Category Manager draws up Contract in

consultation with Legal Department

Manual Draft

Contract

5. NegotiateContract

Category

Manager

Category Manager invites Director

Procurement, Representative from

Finance, Legal, User, and Successful

Bidder for contract negotiations

Manual Minutes of

meeting

6. Send draftContract toSuccessful Bidderfor review

Contracts

Manager

Contracts Manager amends draft Contract

and forwards to Successful Bidder for

review based on outcome of contract

negotiation meeting,

Manual

7. Revise contract Contracts

Manager

Contracts Manager revises contract based

on Successful Bidder’s comments

Manual Revised

Contract

START

CRP



ActID



8. Send finalContract toSuccessful Bidderfor signature

Contracts

Manager

Contracts Manager sends two copies of

final contract to the successful bidder for

signature and attaches a copy of the

purchase order

Manual

9. Finalise contract Contracts

Manager

Successful Bidder signs contract and

submits both originals to Contracts

Manager who forwards to Chief Executive

for signature and notifies Director

Procurement and Deputy Chief Executive,

Finance

Manual

10. Send one originalfinal contract toSuccessful Bidder

Contracts

Manager

Contracts Manager sends a hard-copy of

the original final contract to Successful

Bidder

Manual Final

Contract

11. Create contractextract forcertification andpayment

Contracts

Manager

Contracts Manager creates contract extract

in pdf format (consisting of pages relating

to signature, terms of payment and

deliverables) and saves in shared point

folder.

Note: Payables Officer would be required

to attach extract to requests for approval

of invoices and certification

Manual

END



STORES AND INVENTORY MANAGEMENT PROCESSES

11. ITEM CREATION


The item creation process describes how items are created and coded in the system.

Process Owner

Local and Global Governance Teams

Process Objectives

To provide a common reference for identified user needs

To avoid duplications of user needs in the system.

To ensure consistency and accountability in item creation

Process Scope

N/A

Timeframe

N/A.


Activity / Resources User GovernanceTeam

Governor

Complete item request form IN

Create item in system IN

Review item list RV

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Item creation process flow chart

1a. Userdepartment

performs itemsearch in the

system

Doesitem exist ?

Is itemspecialised?

End

Yes

No

No

End Yes

1b. Usercompletes item

request formand submit to

LocalGovernance

Team

2b. Localgovernance

team forwardrequest to global

governanceteam to create

item

2a. LocalGovernance teamcreates item in the

system

3. LocalGovernanceTeam notifyuser of itemcreation via

email

2c. Globalgovernance team

creates item insystem and

informs the localgovernance team

4. Local andGlobal

Governance Teamperiodically

review items listto identify and

clean errors



Item creation activity detail

ActID


OutputControl ref.point (CRP)

1. Perform item searchin system

Requestor a. Requestor performs search insystem.

b. If item does not exist, completeItem Creation Request Formand submit to GovernanceTeam by email

Manual Item Creation RequestForm

2. Create item GovernanceTeam

Governance Team creates item insystem if item does not exist

Manual

3. Notify User GovernanceTeam

Local Governance Team notifiesRequestor of item creation viaemail

Manual

4. Review item list GovernanceTeams

Governance Team review codeditems list to identify and cleanerrors, duplications, obsolescence,etc

Manual Updated coded items

START

END



Item creation key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Request to creation of item cycle 10 line items

created per day

Quarterly Governor Governance Team

Item creation standard reports

SN Report Name Brief Description Purpose Source Report Frequency Reviewer

1. New codes

created report

This report

highlights items new

items created over a

period

To provide

management

information on

codes created and

the basis for review

ERP Monthly Governor



Item creation process and control matrix (RCM)

Key risks

1 Duplications in the system

2 Unauthorised creation of items in the system

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

fF

oc

us

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y(E

,D,W

,M,Q

,A)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

eO

wn

er

1 Item

Creation

To prevent

duplications of

item codes in the

system

O V, R N/A N/A A search is done to

confirm whether item

exists in system. The item

creation process is

initiated when item does

not exist.

M D E N/A Governance

Team

2 Item

Creation

To ensure item

codes are created

by authorised

persons

O V, R N/A N/A Responsibility for

creating items in system

lies with the local and

global governance teams

to avoid duplications.

System is cleaned

periodically, to identify

and clean errors,

M, Mn P E N/A Governance

Team



12. ISSUING

Process description

Overview

This process describes the communication, actions and activities involved in issuing items from stores.

Process Owner

Stores Supervisor

Process Objectives

To ensure that issues are authorised and approved

To ensure that issues are as specified on the picking list

To secure and control stock movements

Process Scope

OIC Stores

Timeframe

In alignment with requisitions


Activity / Resources StoresOfficer

StoresSupervisor

Security Requestor

Pick goods PR

Approve issue AP

Inspect items RV RV

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Issuing flow chart



Issuing activity detail

ActID



1. Receive requisition Stores Officer Stores Officer receives approvedrequisition routed by Requestor’s LineManager

Auto

2. Generate Pick List Stores Officer Stores Officer generates and prints PickList

Auto Pick List

3. Pick items from binlocations toshipping bay forverification

Stores Officer Stores Officer picks the items from theirbin locations to the shipping bay usingPick List as a guide, and verify to ensureaccuracy and completeness

Manual Checked PickList

4a. Inform Requestorto pick items fromstore

Stores Officer Stores Officer informs Requestor byemail to pick goods from stores

Manual

4b. Pick and transportitems todepartment

Requestor Requestor picks items from stores andsigns off Pick List as evidence Requestorhas picked the goods from stores

Manual Signed Pick List

4c. Sign pick list Stores Supervisor Stores Supervisor appends his signatureto Pick List to indicate review andapproval of issue to Requestor

Manual Signed off PickList

5. Check items beingtransported

Security Officer Security Officer checks items beingtransported by Requestor to ensure itemsbeing transported are those on the PickList.

Security Officer signs off Pick List asevidence that he has checked forcompleteness of items being transported

Manual Pick List signedoff by SecurityOfficer

6 Transport items User User transports items to department Manual

START

CRP

CRP



ActID



Issuing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Approved requisition to issue cycle 24 hours after expected

delivery date

Monthly Stores Supervisor Store Officer

Issuing standard reports

SNReport

NameBrief Description Purpose Source

Report

FrequencyReviewer

1. Issues Report Details issues to various

departments by category

and value

To provide an

overview of usage

patterns

Oracle Inventory Monthly Stores Supervisor

END



Issuing process risk and control matrix (RCM)Key risks

1 Inappropriate authorisation of issues

2 Stock quantities may not be updated with issues

No

.

Su

bp

ro

ces

s

Co

ntr

ol

Ob

jec

tive

Co

ntr

ol

Ob

jec

tive

Ca

teg

ory

(C,F

,O)

Co

ntr

ol

Ob

jec

tive

Typ

e(C

,A,V

,R)

Fin

an

cia

lS

tate

men

t

Acco

un

t/D

isc

los

ure

Fin

an

cia

lS

tate

men

t

Ass

erti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Ora

cle

Bu

sin

ess

Pro

ce

ss

To

ols

Tco

de

(s)

Co

ntr

ol

Typ

e

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pro

ach

(P,D

)

Fr

eq

ue

ncy

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pro

ced

ur

e

Refe

re

nce

Co

ntr

ol

Ob

jec

tive

Ow

ner

1 Issu in g To en su r e

issu es a r e

appr opr ia tely

au th or ised

O V N/A N/A Stor es Officer con fir m s

a ppr ov a l of r equ sit ion in

th e sy stem beor e

pr in t in g pick list

Mn P E N/A Stor es Officer

2 Issu in g To v er ify

accu r a cy a n d

specifica t ion s

of issu es

F C, A , V N/A N/A Item s a r e picked fr om bin

loca t ion s to sh ippin g ba y ,

u sin g a pick list a s a

g u ide to v er ify th e

a cu r a cy a n d

specifica t ion s of issu es.

Ph y sica l item s a r e

ch ecked a g ain st pick list

for a ccu r a cy , a n d pickin g

list is sig n ed-off by

r equ est in g sta ff.

Secu r ity Officer

per for m s secon d ch eck of

item s lea v in g stor es a n d

sig n s pick list

M P E N/A Stor es Officer

3 Issu in g To en su r e stock

qu a n tit ies a r e

u pda ted w ith

issu es

F C, A N/A N/A Su per v isor u pda tes

sy stem w ith g oods issu ed

a fter sig n in g pickin g list

M, Mn P E N/A Stor es

Su per v isor



10. RECEIVING (GOODS FROM SUPPLIERS)


The purpose of the process is to describe the steps to be followed in receiving goods into stores.

Process Owner

Stores Supervisor

Process Objectives

To ensure the proper steps are followed in order to successfully control the receiving process

To ensure goods received from suppliers meet expectations in-terms of quantity, quality, and

specifications

To ensure goods are binned at the right locations

To ensure goods received into stores are backed by approved purchase orders or contracts

To ensure that documentation covering the receipt of goods are complete and accurate

Process Scope

This process applies to all goods received into the Authority’s stores.

Timeframe

Aligned to delivery of purchase orders/ contracts for goods



StoresSupervisor

BinningOfficer

CategoryOfficer

Requestor

Receive items and updatesystem

IN

Inspect goods RV RV

Accept or reject items RV RV RV

Bin goods / Update stock PR

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Receiving goods process flow chart

End

Are goods asspecified?

8b. Stores Managerrejects receipt inoracle inventory

Yes

No

1. Supplierdeliversgoods to

store

3. Stores Officerreceives goods to

receiving bay,endorses waybill

and issuesSupplier with copy

of endorsedwaybill

5b. Stores Officerupdates system with

goods received

6. CO,Requestor and

SO inspectitems for

quantity andquality

8c. Supplierreturn to

settlementprocess isinitiated

8a. Stores Manageraccepts receipt in

oracle inventory andnotifies Binning

Officer

2. Securitychecks waybill

and recordsDriver’s

details in logbook

7. CO generatesinspection report insystem and forwards

to Stores Manager

10. Stores Officerupdates stock with

binned items

5a. StoresOfficer notifiesUser of receipt

and invitesUser to inspect

goods

4. Stores supervisorreceives items to

electronic receivingbay

9. Binning Officerruns receiving

transactions reportand bins items



Receiving goods activity detail

ActID



1. Deliver goods Driver Supplier delivers goods to VRAstores

Manual

2. Check waybill Security Security checks waybill to ensuregoods are addressed to VRA andacknowledges entry of truck andgoods into the yard.

Security indicates waybill, vehiclenumber and drivers name in a logbook

Manual Security log book

3. Receive goods Stores Officer Stores Officer receives goods toreceiving bay, endorses waybilland issues supplier with a copy ofendorsed waybill

Manual

4. Receive intoelectronicinspection bay

Stores Officer Stores receives goods intoelectronic inspection bay in thesystem

Auto

5. NotifyRequestor

Stores Officer Stores Officer notifies Requestorand Category Officer by email ofreceipt of goods and invitesRequestor to inspect goods

Manual

6. Inspect goods CategoryOfficer/Requestor

Category Officer, Stores Officer andRequestor (for specialised items)inspect goods received againstpurchase order for quantity andquality

Manual

START

CRP



ActID



7. Accept/rejectreceipt

CategoryOfficer/Requestor

Category Officer (for standarditems), Requestor (for specialiseditems) accepts or rejects receipts inoracle inventory

Auto

8. Initiate returnto supplierprocess

Stores Officer Stores Officer initiates return tosupplier process for rejected items

Manual

9. Run receivingtransactionsreport and binitems

Binning Officer Binning Officer generates receivingtransactions report, electronicallybins items, identifies binninglocations and physically bins itemsaccording to the storageinstructions advised by Supplier

Auto Receivingtransactionsreport

10. Update stock Stores Officer Stores Officer updates stock withbinned items. The systemautomatically updates Stocks withquantity and value

Manual UpdatedInventoryAccount

Receiving goods key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Delivery to provisional receipt cycle Within 24 hours Monthly Stores Supervisor Stores Officer

2. Provisional receipt to inspection cycle 1 – 5 days Monthly Stores Supervisor Stores Officer

3. Inspection to binning cycle 1 day Monthly Stores Supervisor Stores Officer

END



Receiving goods standard reports


Frequency

Reviewer

1. Inspection report This report provides

results of inspection


on acceptance parameters

e.g. quality, quantity, etc.

ERP Aligned to receipt

of goods

Stores Supervisor

2. Rejection report The report provides

details of items rejected

by department and by

category


on goods rejected

To provide reference for

supplier performance

assessment

ERP Monthly Stores Supervisor



11. RECEIVING (DIRECT RECEIPT TO PROJECT SITE)


The purpose of the process is to describe the steps to be followed in receiving items directly at diverse locations

of the business. This process is handy to items that are unique to specific projects and locations. These are

usually part of turn-key projects or cases where vendors conduct installation and commissioning along-side

delivery of goods at the project site.

Process Owner

Project Manager

Process Objectives

To maintain control over inventory at project site where materials are delivered and received directly

To ensure the proper steps are followed in order to successfully control the receiving process

To ensure goods received from suppliers meet expectations in-terms of quantity, quality, and

specifications

To ensure goods received are backed by approved purchase orders or contracts

To ensure that documentation covering the receipt of goods are complete and accurate

Process Scope

This process applies to all receipts of items at project site or location.

Timeframe

Aligned to delivery of purchase orders/ contracts for goods

Segregation of duties matrixActivity / Resources Site In-Charge Project Manager

Receive items IN

Inspect goods RV RV

Accept or reject items AP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Receiving (direct receipt to project site) process flow chart

1. Supplierdeliversgoods to

project site

2. Securitychecks waybill

to ensure goodsare addressed to

site location

3a. ProjectManager

receives goodsand endorses

waybill

4. Projectmanager

with Site-Incharge

inspectsgoods

5. Project Managerissues an accept/

reject note to CO andStores Supervisor by

email

End

3b. ProjectManager

issues suppliera copy ofendorsedwaybill

6. Supplierreturn to

settlementprocess is

initiated forrejected goods



Receiving (direct receipt to project site) activity detail

ActID



1. Deliver goods Driver Supplier delivers goods to project site Manual

2. Check waybill Security Security checks waybill to ensure goodsare addressed to site location andacknowledges entry of truck and goodsinto the yard.

Security indicates waybill, vehiclenumber and drivers name in a SecurityLog Book

Manual Security Log Book

3. Receive goods Project Manager a. Project Manager receives goods,endorses waybill andb. issues supplier with a copy of endorsedwaybill

Manual

4. Inspect goods Project Manager Project Manager and Site In-Chargeinspect goods received against purchaseorder for quantity and quality

Manual

5. IssueAcceptance/Rejection Note

Project Manager Project Manager issues an Acceptance/Rejection Note to the Category Officerand Stores Supervisor by email

Manual Acceptance/

Rejection Note

6. Initiate return tosupplier process

Stores Officer Stores Officer initiates return to supplierprocess for rejected items

Manual

START

END

CRP



Receiving (direct receipt to project site) key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Delivery to provisional receipt cycle Within 24 hours Monthly Site In-Charge Project Manager

2. Provisional receipt to inspection cycle 1 – 5 days Monthly Site In Project Manager

3. Inspection to binning cycle 1 day Monthly Site In Project Manager

Receiving (direct receipt to project site) standard reports


Frequency

Reviewer

1. Acceptance/ rejection

report

The report provides

details of project items

accepted/ rejected at

project site

To provide

reference for

supplier

performance

assessment

Project Manager Aligned to

delivery of

goods directly

to project site

Category Manager



12. RECEIVING (SERVICES)


The purpose of the process is to describe the processes to be followed in receiving services.

Process Owner

Category Manager

Process Objectives

To ensure services received from suppliers meet expectations in-terms of timing, quality and

specifications

To ensure services delivered are backed by approved purchase orders or contracts

To ensure that documentation covering the receipt of services are complete and accurate

Process Scope

This process applies to all services received by the Authority.

Timeframe

Aligned to delivery of contracts/purchase orders for services


Activity / Resources Supplier User

Deliver service IN

Inspect work done RV

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Receiving services process flow chart



Receiving services activity detail

ActID



1. Deliver service Supplier Supplier delivers service toRequestor’s department based oncontract or purchase order

Manual N/A

2. Inspect work done Requestor Requestor inspects work done,electronically accepts or rejectswork done and notifies categorymanager by email

Manual Inspection Report

3. Notify Supplier Requestor Requestor notifies Supplier ofrejected work for rectification andnotifies Category Manager by email

Manual Suppliernotification

4. Submit invoice Supplier Supplier submits invoice andpayments process is initiated

Manual Invoice

Receiving services key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Service delivery to certification cycle Per contract terms Per Contract terms Category Manager User

END

START

CRP



Receiving services standard reports


Frequency

Reviewer

1. Supplier performance

report

The report provides

a summary of

supplier

performance

Reviews supplier

performance against

set expectations based

on contract/ purchase

order

Users review Deliverable

timelines per

contract

Project Sponsor

2. Inspection report

(works)

This report provides


To provide

information on

acceptance

parameters e.g.

quality, quantity, etc.

Users review Aligned to

receipt of works

User/ Project Manager



13. RECEIVING (SAFEKEEPING)


The purpose of the process is to describe steps to be followed in receiving goods into stores for safekeeping.

Items under this description are non-stock or project items not covered under contract.

Process Owner

Stores Supervisor

Process Objectives

To ensure proper steps are followed in receiving goods for safekeeping purposes

To ensure goods are appropriately tagged and binned at the right locations

To ensure appropriate approvals are received for safekeeping of items

Process Scope

This process applies to all goods received into the Authority’s stores for safekeeping.

Timeframe

Aligned to the receipt of goods for safekeeping.


Activity / Resources Stores Officer StoresSupervisor

DirectorProcurement

Approve request for safekeeping AP

Receive goods IN

Tag and bin goods IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Receiving (safekeeping) process flow chart



Receiving (safekeeping) activity detail

ActID



1. Submit request forsafe keeping

Users User submits request to DirectorProcurement for safekeeping providingdetails of items and purpose

Where safekeeping is covered under contractwith vendor, storage terms of contractapplies

Manual Safekeepingrequest

2. Approve requestfor safekeeping

Director

Procurement

Director Procurement approves safekeeping

request and forwards approval to Warehouse

OIC

Manual Approved

safekeeping

request

3. Confirmavailability ofstorage space

Warehouse OIC Warehouse OIC checks and confirms

availability or otherwise of storage space to


Manual

4. Notify User Director

Procurement

Director Procurement notifies User of

availability of storage space or otherwise

Manual

5. Issue safekeepingterms andconditions

Stores Supervisor Stores Supervisor issues User with the terms

and conditions of safekeeping clearly stating

the extent of Stores/ Authority’s liability

Manual Safekeeping

terms and

conditions

6. Initiate receivingprocess

Stores Supervisor Refer to steps of receiving process Manual

7. Receive itemsvirtually

Stores Supervisor Stores Supervisor receives items to virtual

receiving bay

Auto

8. Bin and tag items Stores Officer Stores Officer bins and tags items as

‘Safekeeping Items’

Manual Tags

START



ActID



Receiving (safekeeping) key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Delivery to provisional receipt cycle Within 24 hours Monthly Stores Supervisor Stores Officer

2. Provisional receipt to inspection cycle 1 – 5 days Monthly Stores Supervisor Stores Officer

3. Inspection to binning cycle 1 day Monthly Stores Supervisor Stores Officer

Receiving (safekeeping) standard reports


Frequency

Reviewer

1. Safekeeping items in

stores report

The report provides

a summary of

safekeeping items

kept in stores

To provide

information on the

percentage of items in

stores that are

safekeeping items

Stores

Supervisor

Quarterly Procurement Director

END



14. RECEIVING (SAMPLES)


The purpose of the process is to describe steps to be followed in receiving sample goods as part of a tendering

process.

Process Owner

Stores Supervisor

Process Objectives

To ensure proper steps are followed in order to successfully control the receiving process

To ensure samples are appropriately tagged and binned at the right locations

To ensure documentation covering the receipt of samples are complete and accurate

To ensure security of samples and integrity of tendering process

Process Scope

This process applies to all samples received as part of a procurement process.

Timeframe

Aligned to submission of samples arising from the tendering process


Activity / Resources Stores Officer StoresSupervisor

Receive goods IN

Tag and bin goods IN

Legend

Input

Processing

Review

Approval

Informed

Receiving (samples) process flow chart

IN

PR

RV

AP

IF





Receiving (samples) activity detail

ActID



1. Request forquotations

Category Officer Category Officer invites bidders to submit

quotations with samples (if required)

Manual

2. Receive samples Category Officer Category Officer receives samples with

quotations and forwards to stores for

safekeeping

Manual

3. Receive itemsvirtually

Stores Supervisor Stores Supervisor receives items to virtual

receiving bay in the system

Sample items are not added to stock

Auto

4. Bin and tag items Stores Officer Stores Officer bins and tags items as ‘Sample

Items’ indicating vendor name, bid number,

etc

A register of the movement of sample items

is maintained

Manual Tags

END

START



Receiving (samples) standard reports


Frequency

Reviewer

1. Sample items report The report provides

a summary of sample

items kept in stores

To provide

information on the

movement of sample

items

Stores

Supervisor

Per transaction Procurement Director



15. RECEIVING (TRANSIT)


The purpose of the process is to describe the steps to be followed receiving transit goods temporarily into

central stores.

Process Owner

Stores Supervisor

Process Objectives

To ensure proper steps are followed in order to successfully control the receiving process

To ensure transit goods are appropriately tagged and sealed for delivery to final location

To prevent accumulation of cost for goods that are rejected

Process Scope

This process applies to all goods transiting through central stores.

Timeframe

Aligned to delivery of goods transiting through central stores


Activity / Resources Stores Officer CategoryManager

User

Inspect goods IN IN

Tag and seal goods IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Receiving (transit) process flow chart



Receiving (transit) activity detail

ActID



1. Supervisetransport of goodsto stores

Shipping Officer Shipping Officer supervises the transport ofgoods from harbour to central warehouse

Transit goods could be local purchases forsatellite stores that are first received at thecentral warehouse

Manual

2. Conduct securitychecks

Stores Officer Stores Officer oversees the conduct ofsecurity checks ( on delivery truck) andmatches items delivered to purchase order

Manual

3. Check shippingdocuments

Stores Supervisor Stores Supervisor checks shipping documents

to determine final destination of item (i.e. if

item is a transit good)

Manual

4. Tag items Stores Supervisor Stores Supervisor tags items as ‘Transit

Goods, notifying Category Manager and User

Manual

5. Determine theneed for inspection

Category

Manager/ User

Category Manager/ User determines the

need for inspection

Manual

6 Inspect goods Category Officer/Requestor

Category Officer, Stores Officer andRequestor (and Expert for specialised items)inspect goods received against purchase orderfor quantity and quality

Manual

7 Tag and seal items Stores Supervisor Stores Supervisor tags and seals items for

transportation

Manual Tags

8 Accept/rejectreceipt

Category Officer/Requestor

Category Officer (for standard items),Requestor (and Expert for specialised items)accepts or rejects receipts in oracle inventory

Manual

START



ActID



Store Officer a) If accepted, Stores Officer arranges fortransport of accepted items to finallocation

b) If rejected, Stores Officer initiates returnto supplier process for rejected items

END



Receiving (transit) standard reports


Frequency

Reviewer

1. Inspection report This report provides


To provide

information on

acceptance

parameters e.g.

quality, quantity, etc.

ERP Aligned to

receipt of goods

Stores Supervisor

2. Rejection report The report provides

details of items

rejected by

department and by

category

To provide

information on goods

rejected

To provide reference

for supplier

performance

assessment

ERP Monthly Stores Supervisor



Receiving goods process risk and control matrix (RCM)

Key Risks:

1 Goods and services received are not completely and accurately recorded

2 Unauthorized or fictitious receipt of goods/services may be posted and paid

3 Goods received may not be backed by a purchase order

4 Stock may be overstated with goods received for safekeeping, transit or sample purposes

5 Goods and services received are not recorded in the appropriate transaction period resulting in understatement of accounts

No

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Re

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1 All receiving To ensure goods

received into

stores are

addressed to the

authority

O C, A, V N/A N/A Waybills are checked to ensure

goods are properly addressed.

Delivery trucks are inspected and

details such as waybill number,

vehicle registration number and

drivers name are recorded in a

log book.

Goods received may be transit,

safekeeping, sample goods.

M, Mn D E N/A Stores

Officer



No

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2 All receiving To ensure goods

received match

with purchase

order details

O C, A, V N/A N/A Inspection of goods and services

received is done against the

purchase order for quantity and

quality. Inspection team includes

procurement representative and

user. Goods are either accepted

or rejected in system.

Supplier return process is

initiated for rejected items

S D E N/A Category

Officer

3 All receiving To ensure stock

is updated

accurately and

completely with

received goods

O C, A, V IS/BS C,A, CO Sample, transit and safekeeping

goods are not added to stock but

are tagged and binned at separate

locations.

System update with received

stock items is reconciled to

purchase order to ensure entries

are accurate and correct

M,Mn P E N/A Stores

Officer



16. RETURNS TO SUPPLIER


The purpose of the process is to describe the activities involved in returning defective and rejected deliveries to

supplier.

Process Owner

Stores Supervisor

Process Objectives

To ensure only accepted goods are binned and added to stock

To ensure only rejected goods are returned to the supplier

Process Scope

This process applies to all goods rejected

Timeframe

N/A


Activity / Resources Stores Officer Stores Supervisor

Generate return material authorisation IN

Approve return material authorisation AP

Organise return items IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Return to supplier flow chart



Return to supplier activity detail

ActID



1. Generate ReturnMaterial Authorisation

Stores Officer Store Officer generates a ReturnMaterial Authorisation andforwards to Stores Supervisor forapproval

Manual Return MaterialAuthorisation

2. Approve ReturnMaterial Authorisation

Stores Supervisor Stores Supervisor approves ReturnMaterial Authorisation and routesto Category Manager

Manual

3. Notify Supplier Category Officer Category Officer notifies Supplierof rejected items and issues ReturnMaterial Authorisation to Supplier

Manual

4. Organise return items Store Officer Store Officer organises the returnof items to Supplier

Manual

5. Receive replacementsgoods

Store Officer Store Officer receives replacementgoods from supplier

Manual


Store Officer Store Officer initiates receivingprocess

Manual

START

END

CRP



Return to supplier key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Supplier notification Within 24 hours of

identifying defect

Per occurrence Stores Supervisor Stores Officer / Category

Officer

Return to supplier standard reports


Frequency

Reviewer

1. Goods returned

report


a summary of goods

returned by category,

supplier and reasons

for rejection

To provide

information on

rejected goods and

supplier

performance

ERP Monthly Category Manager



Returns to supplier process risk and control matrix (RCM)

Key Risks:

1 Returns to suppliers may not be approriately approved

2 Supplier may not be notified on a timely basis leading to disputes

No

.

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1 Returns to

supplier

To ensure that only

approved stock items

are returned to

suppliers

O V N/A N/A Stores Supervisor approves

Return Material

Authorisation and routes to

Category Manager

M D E N/A Stores

Officer

2 Returns to

supplier

To ensure that stock

items identified to be

returned are done so

in a timely manner

O N/A N/A N/A Supplier is notified within 24

hours of detecting defect

M D E N/A Category

Manager



14. PHYSICAL INVENTORY COUNT


The physical inventory process provides a description of inventory count procedures and adjustments

Process Owner

Stores Accountant

Process Objectives

To determine physical inventory on hand

To ensure accurate physical and system inventory quantities

To identify damaged, expired, slow moving and obsolete inventory

Process Scope

This process applies to all stores in the Authority

Timeframe

Yearly


Activity / Resources DirectorFinance

StoresAccountingOfficer

StoresAccountingTeam

StoresAccountant

Create snapshot of inventory IN

Perform count IN

Review stock count report RV

Approve stock count report AP

Approve adjustment AP

Pass adjustments IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Physical inventory count process flow chart



Physical inventory count activity detail

ActID



1. Draw stock takingplan

Director Finance Finance Manager develops anannual Stock Take Plan consistingof locations, resources, budget, etc.

Manual Stock take plan

2a. Develop stock takeinstructions

Finance Manager Finance Manager develops StockTake Instructions, guidelines andrecording templates

Manual Stock takeinstructions

2b. Organise orientation Finance Manager Finance Manager organisesorientation course for stock takersto set standards and expectationsfor stock take

Manual Minutes oforientationmeeting

3 Create snapshot ofinventory on hand

Stores AccountingOfficer

Stores Accounting Officer creates asnapshot of inventory in system

Auto Inventorysnapshot

4 Generate and printinventory count tags


Stores Accounting Officergenerates and prints PhysicalInventory Count Tags

Auto Physicalinventory counttags

5 Perform physicalinventory count

Stores AccountingOfficers

Stock Taking Team performphysical inventory count andrecord results on Stock-Take Sheets

Manual Stock-take

sheets

6a. Sign-off stock takesheets


Stores Accounting Officer andStores Officers sign-off stock takesheets

Manual Signed stock

take sheets

6b. Update inventorymodule


Stores Accounting Officer updatesinventory module with countquantities

Auto

START



ActID



7 Run variance check Stores AccountingOfficer

Stores Accounting Officer runs avariance check of physical againstsystem quantities and generatesvariance report and provides a copyto the Stores Supervisor

Auto Variance report

8 Review variancereport

Stores Supervisor Stores Supervisor reviews variancereport to identify any discrepanciesbetween signed physical stocksheets and variance report

Manual

9 Investigate variances Stores AccountingOfficer

Stores Accounting Officerinvestigates variances and submitsstock count report (includingobsolete, damaged etc. ) to StoresAccountant by email for review

Manual Stock countreport

10a. Review variancereport

StoresAccountant

Stores Accountant reviews variancereport and stock count report

10b. Review stock countreport

StoresAccountant

Stores Accountant reviews stockcount report and forwards toDirector Finance for approval

Manual

11. Approve stock countreport

Director Finance Director Finance approves stockcount report

Engage other stakeholders such asEngineering for adjustments tospecialised stock items

Manual Approved stockcount report

12. Approveadjustments

Director Finance Director Finance approvesadjustment online where variancesare due to quantities and stock isautomatically updated

Auto

CRP

CRP



ActID



13. Adjust for valuevariances

Director Finance Director Finance adjusts for valuevariances due to obsolescence, etc.by passing a manual journalvoucher via the system

Auto

Physical inventory count key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Days to complete year-end inventory

count

Per stock take plan Yearly Director Finance Stores Accountant

2. Total book-to-physical adjustment %

3. Book-to-physical adjustment % by

inventory type

4. % of obsolete inventory against total

inventory

Physical inventory count standard reports


Frequency

Reviewer


differences between

actual and system stock

To assure the accuracy

of stock quantities as

Physical count and

ERP inventory

Yearly Stores Accounting

Manager

END




Frequency

Reviewer

quantities captured by the system system

2. Stock count

report

This report highlights

the results of the stock

count.

To provide details of

stock differences and

condition such as

obsolescence, damage,

etc

Physical count and

ERP inventory

system

Yearly Stores Accounting

Manager



15. CYCLE INVENTORY COUNT


The cycle inventory count process provides a description of cycle stock count procedures that offers a reliable

degree of accuracy for planning purposes and stock replenishment.

Process Owner

Stores Accountant

Process Objectives

To focus on items with higher value, higher movement volume, or critical to business processes

To determine physical inventory on hand

To ensure accurate physical and system inventory quantities

To identify damaged, expired and obsolete inventory

Process Scope


Timeframe

Monthly


Activity / Resources DirectorFinance

StoresAccountingOfficer

StoresAccountingTeam

StoresAccountant

Create snapshot of inventory IN

Perform count IN

Review stock count report RV

Approve stock count report AP

Pass adjustments IN

Approve adjustment AP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Cycle inventory count process flow chart

5. SAOs sign-offstock take sheets andenters actual countvalues into system

Yes

3. Material PlanningOfficer (MPO)

generates count listspecifying class of

items to be counted

4. SAOsperformphysical

inventorycount

6. SAO runs avariance check by

comparing physicalagainst system

quantities

7. SAO investigatesvariances and

submits stock countreport to StoresAccountant for

review

1. DirectorFinance

draws cyclestock taking

plan

2. FinanceManager

develops cyclestock take

instructions

8. StoresAccountant

reviews stockcount report andforwards to DF

for approval

9. DFapproves

stock countreport

A

10b. SAO completesphysical count

Yes

No

11. Director Financeadjusts for value

variances by passing amanual journal voucher

via the system

End

10a. DF approvesadjustment online

Is quantityadjustment

required?

A



Cycle inventory count activity detail

ActID



1. Draw stock takingplan

Director Finance Director Finance develops an annualcycle stock take plan consisting oforganisations, locations, resources,budget, sub-inventories, cycle countclasses, frequencies (period based) etc.

Manual Stock take plan

2. Develop stock takeinstructions

Finance Manager Finance Manager develops stock takeinstructions, guidelines, standards,expectations and recording templates forcycle count

Manual Stock takeinstructions

3. Generate count list Stores AccountingOfficer

Stores Accounting Officer generatescount list specifying the class of items tobe counted

Auto Count list

4. Perform inventorycount

Stores AccountingOfficers

Stores Accounting Officers performinventory count and record results onstock-take sheets

Manual Stock-take

sheets

5a Sign-off stock takesheets


Stores Accounting Officer and StoresOfficers sign-off stock take sheets

Manual Signed stock

take sheets

5b Update inventorymodule


Stores Accounting Officer updatesinventory module with count quantities

Auto

6. Run variance check Stores AccountingOfficer

Stores Accounting Officer runs a variancecheck of physical against systemquantities and generates variance report.

A copy of the variance report is sent tothe Category Manager as an alert onpotential stock-out

Auto Variance report

START



ActID



7. Investigatevariances


Stores Accounting Officer investigatesvariances and submits stock count report(including obsolete, damaged etc. ) toStores Accountant by email for review

Manual Stock countreport

8. Review variancereport

StoresAccountant

Stores Accountant reviews variancereport and stock count report andforwards to DF for approval

9. Approve stockcount report

Director Finance Director Finance approves stock countreport

Engage other stakeholders such asEngineering for adjustments tospecialised stock items

Manual Approved stockcount report

10. Approveadjustments

DirectorFinance/StoreAccountant

a) Director Finance approvesadjustment online where variancesare due to quantities and stock isautomatically updated.

b) Store Accountant completes physicalcount by approving in system ifadjustments are not required.

Auto

11. Adjust for valuevariances

Director Finance Director Finance adjusts for valuevariances due to obsolescence, etc. bypassing a manual journal voucher via thesystem

Auto

END

CRP

CRP



Cycle inventory count key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Cycle count frequency

2. Cycle count accuracy %

3. % of obsolete inventory against total

inventory

Cycle inventory count standard reports


Frequency

Reviewer


differences between

actual and system stock

quantities by category

To assure the accuracy

of stock quantities as

captured by the system

Physical count and

ERP inventory

system

Per cycle Stores Accounting

Manager

2. Stock count

report

This report highlights

the results of the stock

count.

To provide details of

stock differences and

condition such as

obsolescence, damage,

etc

Physical count and

ERP inventory

system

Monthly Stores Accounting

Manager



Inventory Count Process risk and control matrix (RCM)

Key risks:

1 Inventory balances write-offs are misstated because physical inventory is different than perpetual inventory.

2 Errors or omissions in write off or manufacturing variances are not detected timely.

3 Inventory theft is not detected timely.

4 Physical counts result in inaccurate write-on / write-offs.

5 Stock values in the general ledger maybe misstated

6 Closing stock values in financial records are inconsistent with physical stocks on hand.

No

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ntr

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1 Inventory

count

To ensure all

inventory is

counted. All areas

where inventory

may be stored are

included in the

scope of physical

counts.

C,F C,A BS C, V, A An annual cycle and physical stock

take plan consisting of locations,

procedures, budget and resources is

prepared and distributed to ensure

completeness.

Physical inventory counts are

supervised or monitored by personnel

stores accounting staff. Orientation is

organised for stock takers to ensure

consistency during. Inventory count

tags are generated and printed to

facilitate a visual review for

completeness of coverage.

I,Mn P E, A N/A Director

Finance



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(E,D

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ntr

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2 Inventory

count

To ensure proper cut

off is achieved to

ensure inventory is

only counted once.

F C, V BS C,A,CO Written procedures include cut off

procedures for receiving, shipping, and

issues to/from stores.

I,Mn P E, A N/A Director Finance

3 Inventory

count

To ensure all counted

items are input to

inventory system.

Count sheets / tags

are all collected for

system input.

F C,A BS A, CO, C,

CL, V

Count sheets are signed off by stock

takers. Data entry of count results is

segregated from the counting task.

I, R P E, A N/A Stores

Accountant

4 Inventory

count

To ensure physical

counts are accurate.

Counting procedures

result in accurate

count documents.

F A,V BS C, A Variances between physical and book

quantities are investigated prior to

posting.

M D E, A N/A Stores

Accounting

Officer

5 Inventory

count

To ensure differences

between count

quantities and

physical quantities

are accurate and

complete

F C,A BS/IS A, CO, C,

CL, V

Written procedure establishes threshold

over or under which differences must be

fully investigated prior to posting

adjustments. Reasons for differences

and action plans, where necessary, are

documented and reviewed by

management. Management reviews and

approves differences prior to posting

and release of the systems.

M, Mn D E, A N/A Stores

Accounting

Officer



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6 Inventory

count

To ensure system

update is complete

and accurate. Counted

items are input or

uploaded into the

inventory system

completely and

accurately.

F A,V BS/IS A, V Inventory module is updated with

count quantities. Adjustment

totals are calculated prior to

upload / posting, and compared

to general ledger postings after

upload / posting.

S D E, A N/A Director

Finance

7 Inventory

count

To ensure closing

stock values in

financial statement is

consistent with

physical stocks on

hand

F A, C BS/IS A, C Adjustments are approved by

management where variance a

are due to quantities. A manual

journal voucher is passed in the

system to adjust for value

variances.

M, Mn P E, A N/A Director

Finance



16. PROJECT RETURN TO INVENTORY


This process describes the activities involved in receiving project material leftovers into stores.

Process Owner

Stores Supervisor

Process Objectives

To ensure project returns are appropriately identified and coded

To ensure project returns are accounted for

To ensure stock on hand is updated with project returns

Process Scope

This process applies to all projects

Timeframe

N/A


Activity / Resources Project Manager Stores Officer

Identify and send project leftovers to store IN

Receive and check project returns IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Project return to inventory process flow chart



Project return to inventory activity detail

ActID



1. Identify projectleftovers

Project Manager Project Manager identifies and preparesa Project Leftover List describing theitems, machinery or plant to which theyrelate and quantities

Manual Project LeftoverList

2. Send ProjectLeftover List anditems to store

Project Manager Project Manager sends Project LeftoverList and items to store

Manual

3. Receive projectreturns

Stores Officer Store Officer receives project returns,checks items against list, and signs off list

Manual

4. Create item code insystem for non-standard items

Global GovernanceTeam

Local/ Global Governance Team createitem code in system for non-standarditems(refer to item creation process)

Auto Item code

5. Bin items Stores Officer Stores Officer bins items at theappropriate virtual inventory locations

Manual

END

START



Project return to inventory key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Salvage value of unusable project

returns as a % of item cost

Financial Accounting Manager Project Manager

Project return to inventory standard reports


Frequency

Reviewer

1. Project return

report


summary of project

returns by project


on project returns

ERP Per occurrence Stores supervisor



Project return to inventory risk and control matrix (RCM)Key risks

1 Pilferage of project leftoversN

o.

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1 Project return

to inventory

To ensure all

identified

leftovers are

declared and

returned to stores

F, O A, C N/A N/A A project leftover list is

prepared describing the items,

machinery or plant to which

they relate and the quantities.

M P E N/A Project

Manager

2 Project return

to inventory

To ensure project

leftovers returned

to stores are

intact

F, O A, C N/A N/A Project returns received to

stores are checked against the

project leftover list to ensure

all listed items have been

received at stores.

Items received into stores are

appropriately tagged and

binned. The items creation

process is initiated where

items do not have system

codes

M P E N/A Stores Officer



17. INTER-STORES TRANSFER (FROM CENTRAL TO SATELLITE

STORES)


The purpose of the process is to describe the processes to be followed in transferring goods between stores

within the Authority

Process Owner

Stores Supervisor

Process Objectives

To ensure that inter-stores transfers are completely and accurately recorded

To control inter-stores transfer

To manage stock holdings

Process Scope


Timeframe

Aligned to requests from satellite and main stores



CategoryOfficer

CategoryManager

StoresSupervisor

SecurityOfficer

Run internal requisition INApprove internal requisition RV

APApprove transfer AP

Inspect items RV

Sign-off for dispatch AP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Inter-stores transfer process flow chart



Inter-stores transfer activity detailActID

Process Flow Responsibility Tasks Involved TransactionType(Manual/Auto)


1. Check stock holding Stores Officer Stores Officer checks items stockholding to determine items forreplenishing

Manual

2. Run internalrequisition

Stores Officer Stores Officer raises internal requisitionfor items for replenishment andforwards to Category Officer forapproval

Manual Internalrequisition

3. Approve internalrequisition

Category Officer Category Officer reviews and approvesinternal requisition

Manual

4. Approve transfer Category Manager Category Manager approves transfer Manual

5. Generate pick list Store Officer Issuing Store Officer generates andprints pick list

Auto Pick list

6. Pick items from binlocations

Binning Officer Binning Officer picks items from binlocations to issuing bay for inspection

Manual

7. Inspect items Stores Officer, Stores Officer, Driver and Securitycheck items against picking list

Manual

8. Sign-off fordispatch

Stores Supervisor Stores Supervisor, Security and Driverendorse pick list/ waybill for dispatch

Manual

9. Dispatch Driver Transport goods to receiving satellitestore

Manual

START

CRP

CRP



ActID



Inter-stores transfer key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Frequency of stock outages Monthly Stores Officer Stores Supervisor

2. Transfer requisition to receipt cycle Monthly Stores Officer Stores Supervisor

Inter-stores transfer standard reports


Frequency

Reviewer

1. Internal transfer

report

This report shows

internal transfers by

location and category

To provide a

cumulative trail of

internal inventory

movement


END



Inter-stores transfer process risk and control matrix (RCM)Key risks

1 Unauthorised internal requisitions

2 Transfers may not be appropriately recorded

No

.

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1 Interstores

transfer

To ensure

appropriate

approvals are

obtained for

internal

requisitions

O C, A, V N/A N/A An internal requisition is generated in

the system for stock items requiring

replenishment. Requisitions and

transfer of goods are reviewed and

approved by management.

Management reviews to ensure

internal transfer is warranted and

does not affect business activities

S P E N/A Category

Manager

2 Interstores

transfer

To ensure

items picked

match with

requisitions

O C, A, V N/A N/A A pick list is generated and items are

picked from bin locations using the

pick list as a guide. Picked items are

inspected and the pick list is signed off

by inspectors and supervisor.

M D E N/A Stores

Supervisor,

Stores Officer,

Security



18. VENDOR SET-UP

Process description

Overview

The purpose of the process is to describe activities involved in registering and setting up vendors

Process Owner

Manager, Planning and Procurement

Process Objectives

To ensure registered vendors have been appropriately vetted prior to registration

To ensure the Authority has a pool of qualified vendors to deal with

Process Scope

This process applies to all vendors who engage with the Authority.

Timeframe

In alignment with registration by potential vendors.


Activity / Resources Officer inCharge

CategoryOfficer

DirectorProcurement

Perform vendor due diligence RV

Sign vendor acceptance letter AP

Set up vendor in system IN

Review vendor database RV

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Vendor set up process flow chart



Vendor set-up activity detail

ActID

ProcessFlow



Registered Vendors

1a. Downloadapplicationform

Vendor Vendor downloads Vendor Application

Form from VRA website

Manual Vendor

Application Form

1b. Complete andsubmitapplicationform

Vendor Vendor completes and submits Vendor

Application Form with supporting

documents addressed to the Officer-in-

charge

Manual Vendor

Application Form

2. Performvendor duediligence

Officer-in-Charge Officer-in-Charge performs vendor due

diligence by vetting vendor response and

supporting documentation against a

predetermined set of criteria for the

category (s) for which the prospective

vendor is applying; and forwards

recommendations to Director Finance for

approval

Manual Vendor due

diligence

recommendations

3. Approve duediligence work

Director

Procurement

Director Procurement approves

recommendation for registration or

rejection

Manual Vetted list

4. Preparevendoracceptance /rejection letter

Officer-in-Charge Officer-in-Charge prepares acceptance /

rejection letter and forwards to Director

Procurement for signature

Manual Acceptance /

Rejection letter

5. Signacceptanceletter

Director

Procurement

Director Procurement signs

acceptance/rejection letter and notifies

Manual Signed

Acceptance letter

START

CRP



ActID

ProcessFlow



Officer-in-Charge

6. Dispatchacceptance

Officer-in-Charge Officer-in-Charge dispatches letter and

notify the vendor by email requesting

payment and registration fees

Manual

7. Payregistration fee

Vendor / Cashier Vendor pays registration fee Manual Receipt

8. Submit receipt Vendor Vendor submits copy of receipt to the

Officer-in-charge and a registration

certificate is issued

Manual Registration

Certificate

One-Time vendors

1. Purchasetenderdocuments

Vendor Vendor purchases tender document from

VRA offices

Manual

2. Receive andevaluateproposals

Evaluation

Committee

Evaluation committee receive and evaluate

proposals from vendors to select a winning

bidder

Manual Evaluation report

3. Set up vendor Category Officer Category Officer partially sets up vendor

on the system

Auto

4. Notify Officer-in-Charge

Category

Manager

Category Officer notifies Officer-in-charge

of winning tenderer after contract award

and forwards copies of relevant documents

(company registration, tax and SSNIT

clearance certificates, etc) to Officer-in-

charge to complete vendor set up

Manual

Vendor database review

1. Review vendordatabase

Officer-in-charge Officer-in-charge periodically reviews Manual



ActID

ProcessFlow



vendor database

Vendor set-up key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner1. % of inactive suppliers who are

registered in the database

END



Vendor set-up process risk and control matrix (RCM)Key risks

1 Set-up of unqualified vendors

No

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1 Vendor set-up To ensure vendors

seeking registration

meet a

predetermined set

of criteria

O V N/A N/A Vendor registration

applications go through due

diligence procedures to

ensure their authenticity.

M P E N/A Officer in Charge

2 Vendor set-up To ensure there is

adequate

segregation of

duties

O R N/A N/A Responsibilities for

performing vendor due

diligence and setting up

vendor are segregated

Mn D E N/A Category

Manager



19. MASTER DATA MANAGEMENT

Process description

Overview

The purpose of the process is to describe steps involved in changing standing data.

Process Owner

Systems Administrator

Process Objectives

To ensure changes to standing data are appropriately authorised and approved

To ensure changes to standing data are adequately communicated to Users

Process Scope

This process applies to all standing data in the Authority.

Timeframe

N/A

Segregation of duties matrixActivity / Resources Director

ProcurementSystemsAdministrator

User

Review and approve request AP RV IF

Execute change, update change log, generateaudit trail

IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Master data management process flow chart



Master data management activity detail

ActID

ProcessFlow



1. Raise masterdata changerequest

Requestor Requestor identifies need and raises a master

data change request by completing a Master

Data Change Request Form and forwards to

Systems Administrator

Manual Master Data

Change

Request Form

2. Assess impactof change

Systems

Administrator

Systems Administrator logs request, assesses

whether change is warranted and the impact

on other Users, and provides

recommendation to Director Procurement

(Recommendation could be for approval or

denial to change standing data)

Manual Impact

Assessment

Report

3. Approverequest

Director

Procurement

Director Procurement approves request and

forwards to System Administrator notifying

Requestor of approval by email

Manual

4. Communicatechanges toimpactedUsers

Systems

Administrator

Systems Administrator communicates

planned changes and impact to impacted

Users by email

Manual

5. Executechanges

Systems

Administrator

Systems Administrator creates back up of

standing data (if required), executes changes,

updates a Change Log and generates an audit

trail with details of changes made

Manual Updated

Change Log

START

CRP



ActID

ProcessFlow



Master data management key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/

process owner1. Number of complete change requests

that are not supported with sufficient

information

Zero Per occurrence Director Procurement SystemsAdministrator

Master data management standard reports


Frequency

Reviewer

1. Change request

report


information on the

number of change

requests to standing

data over a specific

period

To provide a summary

of change requests over

a specific period

Change request log

book

Quarterly Director Procurement

2. Exception report This report provides an

audit trail of changes to

standing data over a

specific period


on changes made to

standing data over a

specific period

ERP Per occurrence Director Procurement

END



Master data management process risk and control matrix (RCM)Key Risks:

1 Incomplete and/or inaccurate changes to standing data increases risk of inaccurate accounting

2 Invalid or unauthorised changes may be made to standing data

No

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1 Master Data

Management

Control

Activity

To ensure changes

to standing data

are completely and

accurately

inputted.

F C, A, V N/A N/A Requested changes to

standing data are

reviewed and approved

by management for

validity, accuracy and

completeness and proper

authorisation

M, R P E N/A

2 Master Data

Management

Control

Activity

To ensure access to

effect changes to

standing data is

appropriately

limited.

F R N/A N/A Access standing data is

restricted to authorised

personnel.

Access levels are pre-

defined based on clear

job responsibility

User access is

independently review by

management on a

periodic basis

M, R P E N/A

3 Master Data

Management

Control

Activity

Standing data is

accurate and up-to-

date.

F C, R N/A N/A Standing data is

periodically analysed for

old or duplicate records.

M, R D E N/A



20. RE-ORDER POINT PLANNING

Process description

Overview

The purpose of the process is to describe activities involved in replenishing stock levels to limit the possibility

of stock outs and excessive storage costs.

Process Owner

Category Manager

Process Objectives

To maximise cash flow and minimise holding cost whiles ensuring optimum stock levels

To ensure business needs are procured on a timely basis

Process Scope

This process applies to all categories and sub-categories

Timeframe


Activity / Resources Category Officer Category Manager

Set parameters for reorder planning INReview and approve reorder planning parameters RV

AP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Re-order point planning process flow chart

1. CO runsrequisitions report in

system

2. CO analysesrequisitions

report toassess

comsumptionlevels of items

3. CO checks systemquantities of items at

all locations

4. COidentifiesactive PO

and cancelsinactive POs

5. CO generatesreorder planning

report in system andforwards for

approval

6. CM reviewsreorder

planning reportand grants

approval forreplenishment

of stock

7. CO initiatesrequisitionprocess to

replenish stock

End

A



Re-order point planning activity detailActID



1. Run requisitions report Category Officer Category Officer runs requisitions

report in system

Auto Requisitions

report

2. Analyse requisitionsreport

Category Officer Category Officer analyses requisition

report to identify items with large

consumption levels

Manual

3. Check for availability Category Officer Category Officer checks system for

availability of items at all locations,

including outstanding purchase orders

Auto

4. Identify purchase orderquantities

Category Officer Category Officer identifies active

purchase orders in system to identify

expected quantities, and cancels

expired purchase orders

Auto

5. Generate re-orderplanning report

Category Officer Category Officer generates re-order

planning report in system with the

following parameters:

Lead times Item ordering and carrying costs Demand forecast

Auto Reorder

planning

report

6. Review reorder planningreport

Category

Manager

Category Manager reviews reorder

planning report and grants approval for

replenishment of stock

Manual

START

CRP



7. Generate requisitions Category Officer Category Officer initiates requisition

process to replenish stock

Auto

Re-order point key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/

process owner1. Inventory run out time Monthly Category Manager Stores Supervisor

2. Order waiting time Monthly Category Manager Stores Supervisor

Re-order point planning standard reports


Frequency

Reviewer

1. Re-order point

report


information on the lead

time, safety stock, supply

quantity, quantity on-

hand and the re-order

quantity

This report provide

planning information by

category


END



Re-order point planning process risk and control matrix (RCM)Key risk

1 Excess inventory leading to working capital tie up

2 Shortage of inventory leading to hold up in production

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Re-Order

Point

Planning

To ensure

optimum

quantities are

are held on

stock.

O C, A, V N/A N/A A check for availability of items

including outstanding purchase

orders is done to identify needed

quantities. Re-order planning

report is generated and

approved by management to

ensure that only required items

are requisitioned.

M, R P E N/A Category

Officer



SHIPPING PROCESSES

21. EXPORT


The export process describes how items are exported. Export could either be by air, sea or land. Items exported

are mostly machinery, parts and equipment for repairs.

Process Owner

Shipping Officer

Process Objectives

To ensure the timely export of equipment

To ensure adequate documentation to cover exports

Process Scope

This process applies to the required documentation necessary for export and return of repaired parts

Timeframe

N/A


Activity / Resources Requestor’sLineManager

SponsoringDirector

DirectorProcurement

Deputy ChiefExecutiveFinance

Run requisition to export IN

Approve requisition to export AP

Approve invoice AP IF

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Export process flow chart

1. Supervisor runsrequisition to export

item


2. SponsoringDirector approves

requisition andemails to SponsoringExecutive for second

approval

4. ShippingOfficer (SO)determines

mode of exportand obtainscompetitivepro-forma

invoices

5a. SO contactsUser for item,

prints approvedrequisition with

proforma invoiceand forwards toDP for approval

6. SO notifiesshipping line totransport item

from VRApremises

7. SOcompletescustoms

repair andreturn forms

8. Shippingline issues

freight invoiceto VRA forsettlement

9. Payablesprocess isinitiated

End

A

5b. DPapproves

competitiveinvoice

A

3. SponsoringExecutive

approves requestnotifying

sponsoringDirector, DP,

Shipping Officer

A



Export activity detail

ActID



1. Requisition to exportitem

Supervisor Supervisor runs the request toexport together with packing list toSponsoring Director

Manual Packing list

2. Approve request forexport

SponsoringDirector

Sponsoring Director approvesrequest for export and sends toSponsoring Executive for approvalby email

Manual

3. Approve requisition Deputy ChiefExecutive,Engineering andOperations

Sponsoring Executives approvesrequest to export item for repairsand notifies Sponsoring Director,Director Procurement and Shippingofficer

Manual

4. Determine mode ofexport and pro-forma freight cost

Shipping Officer Shipping Officer determines mode ofexport depending on item size, cost,critical need, etc.; and competitivefreight cost (refer to price quotationprocurement method) of exportchoice

Manual Pro-formafreight invoice

5. Approve pro-formainvoice


Shipping Officer sends pro-formainvoice to Director Deputy ChiefExecutive, Finance for approvalthrough the Director Procurement

Manual

6. Notify Shipping Line Shipping Officer Shipping Officer notifies successfulShipping Line to make available acontainer, transports items fromVRA premises to the port andforwards shipping instructions toShipping Line

Manual

START

CRP

CRP

CRP



ActID



7. Complete customsdocumentation

Shipping Officer Shipping Officer complete customsdocumentation

Manual Customsdocuments

8. Issue invoice Shipping Line Shipping Line issues freight invoiceto Authority for settlement

Manual Shipping invoice

9. Initiate paymentprocess

Shipping Officer Shipping Officer forwards invoice toaccount payables to initiate paymentprocess

Manual

Export key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Cost savings As per cost savings

target

Per export Category Manager Shipping Officer

Export standard reports


Frequency

Reviewer

1. Export status

report

This report provide

an overview of items

exported for repair

and return

To keep a monitor on

all item exported and

not returned

Shipping Officer Monthly Shipping Officer

END



22. HARBOUR CLEARING


The harbor clearing process describes the activities involved in clearing goods imported through the sea ports,

fully complying with the import regulations of the country.

Process Owner

Shipping Officer

Process Objectives

To ensure compliance with import regulations

To ensure speedy clearing of goods

To prevent avoidable rent and demurrage charges

Process Scope

This process applies to clearing imports from the harbour.

Timeframe

N/A.


Activity / Resources ShippingOfficer

DirectorProcurement

Payables Officer

Generate payment voucher IN

Process shipping documents PR

Review and approve payment voucher RVAP

Process payment and issue checque PR

Make payment IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Harbour clearing process flow chart

Is amount>100?

Yes No

5. SO prepares GCnetentry through thecustoms network




7. DP approves PVand routes to

Accounts PayablesOfficer (APO,Finance) forprocessing

A

13. DP approves PVand routes to APO

(Finance) forprocessing

A

6. Shipping Officer(SO) raises online PVfor payment of GCnetcharges and routes to

DP

14. APO processpayment and raise

cheque

12. Shipping Officerraises online PV forpayment of shippingcharges and routes to

DP

19. DP approves PVand routes to APO,

(Finance) forprocessing

A

18. SO raises onlinePV for payment ofstorage charges ad

routes to DP


1. SO raises IDFand lodges IDFand supplier’sinvoice withinspectioncompany

2. SOreceivesshipping

documentsfrom

supplier

3. SO verifiesaccuracy andcompletenessof documents

4. SO submitsIDF and invoice

to inspectioncompany forissuance of

FCVR

8. APO receivesPV and process

payment

9a. Chequeis raised

and given toSO

9b. SO isgiven petty

cash forpayment

9c. SO payscash/cheque

to bankand is issued

a receipt

10.SOforwardsdocs to

customs forverification

11. SO assessesand obtains

shipping anddemurrage

charges fromshipping line

15. SOmakes

paymentand is

issued areceipt

16. ShippingLine issues

a DO for therelease of

goods

17. SO collectsstorage charges

invoice fromterminaloperator

20. APO processpayment and raise

cheque

22a. SO makespayment and

is issued areceipt

22b.TerminalOperatorreleasesgoods

23. SOsupervises the

transport ofconsignment

to stores

End

21. Shippingofficer raisesrequisition to

transportgoods



Harbour clearing activity detail

ActID



1. Raise ImportDeclaration Form

Shipping Officer Shipping Officer raises ImportDeclaration Form (IDF) to cover alldutiable imports and lodges IDF andSupplier’s pro-forma invoice withinspection company

Manual ImportDeclarationForm

2. Receive shippingdocuments fromSupplier

Shipping Officer Shipping Officer receives shippingdocuments such as Bill of Lading,invoice and packing list from supplierthrough Director Procurement’ssecretary

Manual Shippingdocuments

3. Verify shippingdocuments

Shipping Officer Shipping Officer verifies the accuracyand completeness of shippingdocuments

Manual

4. Submit copies ofshipping documentsto inspectioncompany

Shipping Officer Shipping Officer submits copies ofIDF and invoice to inspectioncompany for issuance of FinalClassification and Valuation Report(FCVR) where applicable

Manual Final ValuationClassificationReport (FCVR)

5. Prepare GCnet entry Shipping Officer Shipping Officer prepares GCnet entrythrough the customs networkattaching copies of shippingdocuments, IDF and FCVR forCustoms Excise and PreventiveService (CEPS) review and validation

Manual GCnet entry

6. Raise online paymentvoucher for GCnetcharges

Shipping Officer Shipping Officer raises onlinepayment voucher for payment ofGCnet charges and routes to DirectorProcurement

Manual Payment

voucher for

GCnet charges

START



ActID



7. Approve paymentvoucher

DirectorProcurement

Director Procurement approvespayment voucher online which isrouted to the Accounts PayablesOfficer

Auto

8. Process payment Account PayablesOfficer

Accounts Payables Officer processespayment as per General ApprovalLimits

Auto Cheque/ petty

cash

9. Make payment Shipping Officer Shipping Officer makes payment toCustoms through bank and is issued areceipt.

Manual Receipt

10. Seek verification ofreceipt and shippingdocuments

Shipping Officer Shipping Officer sends receipt frombank and shipping documents (bill ofladen, GCnet entry) customs forverification. Customs Officer verifiesdocuments for accuracy

Manual

11. Assess and obtainshipping charges anddemurrage

Shipping Officer Shipping Officer collects invoice onassessed shipping charges anddemurrage from the shipping line

Manual Shipping linecharges invoice

12. Raise online paymentrequest for shippingline charges

Shipping Officer Shipping Officer raises onlinepayment request for payment ofshipping charges and routes toDirector Procurement

Manual Payment

voucher for

shipping line

charges

13. Approve paymentrequest for shippingcharges

DirectorProcurement

Director Procurement approvespayment request for shipping chargesonline and routes to AccountsPayables Officer

Manual Approvedpaymentvoucher

14. Process payment andraise cheque

Account PayablesOfficer

Accounts payables officer processespayment for shipping charges andraises cheque

Manual Cheque for

shipping

CRP

CRP



ActID



charges

15. Effect payment toshipping line

Shipping Officer Shipping Officer makes payment toshipping line for shipping charges andis issued a receipt

Manual Receipt

16. Issue delivery order Shipping line Shipping line issues a Delivery Order(DO) for the release of goods afterpayment receipt

Manual Delivery Order

17. Assess and collectstorage charge invoice

Shipping Officer Shipping Officer collects assessedstorage charges invoice from terminaloperator

Manual Storage chargesinvoice

18. Raise online paymentvoucher for storagecharges

Shipping Officer Shipping Officer raises onlinepayment voucher for storage chargesand routes to Director Procurement

Manual Storage chargespaymentvoucher

19. Approve paymentvoucher

DirectorProcurement

Director Procurement approvespayment voucher online which isrouted to the Accounts PayablesOfficer

Manual Approvedstorage chargespaymentvoucher

20. Process payment andraise cheque

Account PayablesOfficer

Accounts Payables Officer processespayment and raises cheque

Manual Cheque for

storage charges

21. Raise requisition totransport goods

Shipping Officer Shipping Officer requisitions fortransport from the Transport Officerto convey goods from harbour onplanned delivery date

Manual Requisition fortransport

22. Effect payment forstorage charges

Shipping Officer Shipping Officer makes payment toterminal operator, is issued a receiptand a release of the goods

Manual Receipt

CRP



ActID



23. Transportconsignment to store

Shipping Officer Shipping Officer supervises thetransport of consignment to stores

Manual Waybill

Harbour clearing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. Average demurrage days Monthly Category Manager Shipping Officer

2. Clearing days variance Monthly Category Manager Shipping Officer

3. Receipt of shipping documents to vessel

arrival days

Monthly Category Manager Shipping Officer

4. Payment processing cycle Monthly Shipping Officer Disbursement

Manager

Harbour clearing standard reports


Frequency

Reviewer

1. Status report on

items at port

This report shows date

items have arrived at port

and how long they have

overstayed at the port

To provide a ready reference

source for all items sitting at the

port. It also alerts on delayed

clearance leading to avoidable

demurrage and rent charges.

Excel working

sheet

Weekly Category

Manager

END




Frequency

Reviewer

2. Demurrage report This report shows the

cumulative demurrage

charges incurred

To highlight demurrage cost for

remedy

ERP Monthly Category

Manager



23. AIRPORT CLEARING


The airport clearing process describes the activities involved in clearing goods imported through the airport,

fully complying with the import regulations of the country.

Process Owner

Shipping Officer

Process Objectives



To prevent avoidable storage and rent charges at the airport

Process Scope

This process applies to clearing imports from the airport.

Timeframe

N/A



DirectorProcurement

Payables Officer

Generate payment voucher IN

Process shipping documents PR

Review and approve payment voucher RVAP

Process payment and issue receipt PR

Make payment IN

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Airport clearing process flow chart



Airport clearing activity detail

ActID




Shipping Officer Shipping Officer raises ImportDeclaration Form (IDF) to cover alldutiable imports and lodges IDF andSupplier’s pro-forma invoice withinspection company

Manual Import DeclarationForm

2. Collect shippingdocuments

Shipping Officer Shipping Officer collects copy of airwaybill, invoice, and packing list fromairline

Manual Shipping documents


Shipping Officer Shipping Officer verifies the accuracyand completeness of shippingdocuments

Manual

4. Submit copies ofshippingdocuments toinspectioncompany

Shipping Officer Shipping Officer submits copies of IDFand invoice to inspection company forissuance of Final Classification andValuation Report (FCVR) whereapplicable

Manual Final ClassificationValuation Report(FCVR)

5. Prepare GCnetentry

Shipping Officer Shipping Officer prepares GCnet entrythrough the customs network attachingcopies of shipping documents, IDF andFCVR for Customs Excise andPreventive Service (CEPS) review andvalidation

Manual GCnet entry

6. Raise onlinepayment requestfor GCnet charges

Shipping Officer Shipping Officer raises online paymentvoucher for payment of GCnet chargesand routes to Director Procurement

Manual Payment voucher for

GCnet charges

7. Approve paymentrequest

DirectorProcurement

Director Procurement approvespayment voucher online which is routed

Manual Approved paymentvoucher for GCnet

START

CRP



ActID



to the Accounts Payables Officer charges

8. Process payment Account PayablesOfficer

Accounts Payables Officer processespayment as per general approval limits

Manual Cheque/ petty cash

9. Seek authorisationfor the release ofgoods

Shipping Officer a) Shipping Officer pays cash/ chequeto the bank and is issued a receipt.

b) Shipping Officer presents shippingdocuments to Customs Official whoreviews and endorses shippingdocuments, authorising the releaseof goods.

Manual Endorsed shippingdocuments

10. Present documentsfor release of goods

Shipping Officer Shipping Officer presents documents toaviance Official for the release of goodsfrom aviance warehouse.

Manual

11. Transport goods toVRAstore/warehouse

Shipping Officer Shipping Officer organises thetransport of goods to the VRA centralwarehouse or satellite store andreceiving process is initiated.

Manual

END



Airport clearing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Average storage days Monthly Category Manager Shipping Officer

2. Clearing days variance Monthly Category Manager Shipping Officer

3. Receipt of shipping documents after air

plane arrival

Monthly Category Manager Shipping Officer

4. Payment processing cycle Monthly Shipping Officer Disbursement Manager

Airport clearing standard reports


Frequency

Reviewer

1. Status report on

items at port

This report shows date

items have arrived at

port and how long they

have overstayed at the

port


source for all items sitting at the

port. It also alerts on delayed


storage and rent charges.

Excel working

sheet

Weekly Shipping Officer

2. Storage report This report shows the

cumulative storage

charges incurred

To highlight storage cost for

remedy

ERP Monthly Shipping Officer



24. BORDER CLEARING


The border clearing process describes activities involved in clearing goods imported through the borders, fully

complying with the import regulations of the country.

Process Owner

Shipping Officer

Process Objectives



To prevent avoidable storage, rent and truck demurrage charges

Process Scope

This process applies to clearing imports through the borders.

Timeframe

N/A



DirectorProcurement

Monitor clearing of goods IN

Endorse invoice AP

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Border clearing process flow chart

1. SO raises IDFand lodges IDFand supplier’s

pro-formainvoice withinspectioncompany

2. SOreceivesshipping

documentsfrom

supplier

3. SO verifiesaccuracy andcompletenessof documents

4. SO submitsIDF and invoice

to inspectioncompany forissuance of

FCVR

5. SO submitsIDF, FCVR,

shippingdocuments,and customs

duty checks toClearing Agent

6. SOmonitors

clearing ofgoods

throughClearing

Agent

7. StoresOfficer

initiatesreceivingprocess

8. SO receivesinvoice from

ClearingAgent and

forwards toDP for

endorsement

9. DPendorses

invoice andforwards to

accountpayables forprocessing

10. Payablesprocess isinitiated

End

A



Border clearing activity detail

ActID




Shipping Officer Shipping Officer raises Import DeclarationForm (IDF) to cover all dutiable imports andlodges IDF and Supplier’s pro-forma invoicewith inspection company

Manual ImportDeclarationForm

2. Receive shippingdocuments fromSupplier

Shipping Officer Shipping Officer receives shipping documentssuch as certificate of origin, waybill andpacking list from supplier through DirectorProcurement’s Secretary

Manual Shippingdocuments


Shipping Officer Shipping Officer verifies the accuracy andcompleteness of shipping documents

Manual

4. Submit copies ofshippingdocuments toinspectioncompany

Shipping Officer Shipping Officer submits copies of IDF andinvoice to inspection company for issuance ofFinal Classification and Valuation Report(FCVR) where applicable

Manual FinalValuationClassificationReport (FCVR)

5. Submit documentsto Clearing Agent

Shipping Officer Shipping Officer submits IDF, FCVR,shipping documents, and customs dutychecks (where applicable) to third partyClearing Agent on terms of existingagreement

Manual

6. Monitor clearing ofgoods

Shipping Officer Shipping Officer monitors third partyClearing Agent through the clearing process

Manual


Stores Officer Stores Officer initiates receiving processwhen goods are delivered to store

Manual

8. Receive invoice Shipping Officer Shipping Officer receives invoice from thirdparty Clearing Agent and forwards to Director

Manual Invoice

START



ActID



Procurement for endorsement

9. Endorse invoices Director

Procurement

Director Procurement endorses invoice andforwards to Accounts Payables for processing

Manual

10. Initiate payablesprocess

Payables Officer Payables Officer initiates payables process Manual

END

CRP



Border clearing key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Average transit days Per transaction Category Manager Shipping Officer

2. Accrued demurrage days Per transaction Category Manager Shipping Officer

Border clearing standard reports


Frequency

Reviewer

1. Status report on

cleared items

This report shows

date items arrive at

border and how long

it takes to clear them


source for all items received at the

border. It also alerts on delayed


storage and demurrage charges.

Excel working

sheet

Weekly Shipping Officer

2. Storage report This report shows the

cumulative storage

charges incurred

To highlight storage cost for

remedy


3. Truck demurrage

charges report

This report shows the

cumulative truck

demurrage charges

To highlight truck demurrage

costs for remedy




Shipping process risk and control matrix (RCM)Key risks

1 Non-compliance to import/export regulations

2 Accumulation of demurrage and storage charges

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

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on

Co

ntr

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/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

ess

Pr

oc

ess

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Export To ensure appropriate

approvals are obtained.

F C, A, V N/A N/A Requests to export and pro-forma

invoices should be approved by the

appropriate authorities.

M, R P E N/A Director

Procurement

2 All shipping

processes

To ensure the accuracy

and completeness of

shipping documents and

compliance with

import/export

regulations

C C, A, V N/A N/A Appropriate shipping documents

from suppliers should be verified

for their accuracy and

completeness prior to submission

to an inspection company (where

required)

M, Mn P E N/A Shipping Officer

3 All shipping

processes

To avoid the

accumulation of

demurrage fees

O V N/A N/A Approvals needed to make

payments for storage charges are

promptly given to avoid

accumulated demurrage fees

M, Mn P E N/A Shipping Officer



25. CONTRACT MANAGEMENT


The contract management process describes how the supplier service delivery performance would be

monitored against contract obligations, and where required, appropriate actions taken to improve supplier

performance. Performance of suppliers will be monitored by a set of hard factors (operational KPIs). Supplier

performance scores, KPIs and actions feed into the supplier continuous improvement plan (CIP) and the

procurement dashboard.

Process Owner

Category Manager

Process Objectives

To improve supplier reliability, quality and performance

To drive continuous improvement of supplier capability, flexibility, responsiveness, innovation and

competitiveness

To build better relationships, especially with key suppliers, through improved communication

To improve supplier selection through the provision of performance data

To provide an objective basis to discuss supplier performance and sanctions

Process Scope

This process applies to contracts to deliver goods, services and works.

Timeframe

The timeframe is aligned to the procurement of goods, services and works.

Segregation of duties matrixActivity / Resources Category

ManagerDirectorProcurement

Executive

Set contract expectations and KPIs, reviewsupplier performance update continuousimprovement plans

IN

RV

Approve supplier disengagement decision AP IF

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Contract management process flow chart



Contract management activity detail

ActID



1. Set contractassessmentexpectations

Category Manager Category Manager agrees with Stakeholdersand sets contract assessment expectationswith the Supplier

Manual

2. IdentifyoperationalKPIs

Category Manager Category Manager identifies operational KPIsand updates supplier dashboard withoperational KPIs and any other agreedmilestones at a frequency agreed in thecontract with the particular supplier.

Manual Updateddashboard

3a. Conductperiodicsupplierperformancereview

Category Manager Category Manager together with Stakeholdersconducts periodic supplier operationalperformance review. The review will includea review of the supplier dashboard andprogress against the continuous improvementplan

Manual Performancereviewdocument

3b. Send copy ofperformancereviewdocument toSupplier

Category Manager Category Manager sends a copy ofperformance review document to Supplier forfeedback and agreement. Feedback is sharedwith Stakeholders

Manual

4 Agree correctiveactions withSupplier

Category Manager Category Manager and Stakeholders agreecorrective actions with Supplier and updatesContinuous Improvement Plan whereperformance issues are identified

Manual Correctiveaction plan

5. Implementcorrective actionplan

Supplier Supplier implements agreed CorrectiveAction Plan, keeping the Category Managerand Stakeholders fully informed of progressand any further issues

Manual

START



ActID



6a. Updatecontinuousimprovementplan

Category Manager Category Manager updates and circulatescontinuous improvement plan with relevantKPI detail and any agreed actions

Manual Updatedcontinuousimprovementplan

6b. Escalate issue asper governance

Category Manager Category Manager escalates unresolvedperformance issues in line with governanceprocedures

Manual

7. Identify newsuppliers

Category Manager Category Manager commences a sourcingexercise if performance issues with theexisting Supplier continue

Manual

8. Developcontingencyarrangements

Category Manager Category Manager puts in place contingencyarrangements to mitigate the risk of supplyfailure as far as possible if no alternativesuppliers are available (or switching is a highcost or lengthy process)

Manual

9. Outline steps fordisengagement

Category Manager Category Manager develops a DisengagementPlan (in consultation with the LegalDepartment) notifying all in the governanceprocess

Manual Proposeddisengagement plan

10. Approvedisengagementdecision

DirectorProcurement

Director Procurement together withSponsoring Director reviews and approvesdisengagement decision and notifies CategoryManager of approval (this may be an iterativeprocess until all parties are comfortable withthe proposed disengagement plan)

Manual Approveddisengagement plan

11. Advise Supplierof decision andagreedisengagementplan

Category Manager Category Manager discusses and agreesdisengagement decision and plan withSupplier, and discusses actions required for asmooth transfer to the new Supplier

Manual

CRP



ActID



12. Deactivatesupplier insystem

Category Manager Category Manager deactivates Supplier inOracle if no other contract exists with theSupplier or on completion of the finalpurchase order.

Manual

13. Close contract Category Manager Category Manager closes all relevantcontracts, consulting with the LegalDepartment

Manual

Contract management key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process owner

1. Frequency of performance review of top

20% suppliers by value

Per contract Director,

Procurement

Category manger

2. % of change to contract specifications Director Category manger

3. % of order value variance from original

contract value

Director Category manger

4. Number of contract concessions Director Category manger

5. % of contracts successfully closed Director Category manger

END



Contract management standard reports


Frequency

Reviewer

1. Supplier

performance

report


summary of supplier

performance measured

against agreed standards

To provide stakeholders

with an objective

assessment of Supplier’s

ability to deliver to

promise within the set

standards

Category Manager Quarterly Director Procurement

2. Supplier

evaluation

scoreboard

This details parameters

of assessment and

Supplier’s scoring

To provide detailed

evidence on evaluation

parameters and scoring


3. Continuous

improvement

report

This furnishes details of

identified gaps and

corrective measures

To assure performance

and mitigate risk of

non-performance




Contract management process and control matrix (RCM)

Key Risks:

1 Inadequate supplier monitoring

2 Operational discontinuity after supplier disengagement

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

e

Ty

pe

(C,A

,V,R

)

Fin

an

cia

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tate

me

nt

Ac

co

un

t/D

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losu

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Fin

an

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tate

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Asse

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Co

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tso

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Or

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Bu

sin

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Pr

oc

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To

ols

Tc

od

e(s

)

Co

ntr

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Ty

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(I,S

,M,R

,Mn

)

Co

ntr

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Ap

pr

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(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Contracts

Management

To ensure supplier

performance is

adequately

monitored

O N/A N/A N/A Periodic supplier operational performance

reviews include a review of supplier dashboard

and progress against a continuous improvement

plan.

Supplier dashboard is updated with identified

operational KPIs and any other agreed

milestones.

M P E N/A Category

Manager

2 Contracts

Management

To ensure

operational

continuity after

supplier

disengagement

O N/A N/A N/A Contingency arrangements are in place to

mitigate the risk of supply failure as far as

possible

M P E N/A Category

Manager



25. SERVICE DELIVERY


This process defines activities involved in setting expectations between the Procurement Function and its

customers, measuring and tracking the levels of service quality and performance.

Process Owner

Category Manager

Process Objectives

To ensure proper elements and commitments are in place to provide consistent service support anddelivery to customers by the Procurement Function

To provide clear reference to service ownership, accountability, roles and/or responsibilities To present a clear, concise and measurable description of service provision to the customer To match perceptions of expected service provision with actual service support and delivery.

Process Scope

This process applies to all Sections and Departments of the Authority that depend on the Procurement

Function for service.

Timeframe

Aligned to periodic review agreed between service provider and customer (at least bi-yearly)

Segregation of duties matrixActivity / Resources Category

ManagerCustomerDepartment

DirectorProcurement

Define and negotiate service level agreement INRV

RVApprove service level agreement AP AP

Review service level agreement for continuousimprovement

RV RV

Legend

Input

Processing

Review

Approval

Informed

IN

PR

RV

AP

IF



Service delivery process flow chart



Service delivery process activity detail

ActID



1. Identify service

type

Category Manager Category Manager classifies services intocategories that can be covered with specificservice level agreements

Manual Itemisedservices subcategories

2. Establish servicelevelexpectations

CategoryManager/CustomerRepresentative

Category Manager together with customerrepresentative establishes customerexpectations and establishes all relevantparameters, key performance measures andspecifications for quality service.

Manual Documentedkeyparameters

3. Documentservice levelagreement

Category Manager Category Manager documents a draftservice level agreement

Manual Draft servicelevelagreement

4. Negotiateservice levelagreement

Category Manager Category Manager negotiates draft servicelevel agreement with CustomerRepresentative and forwards to DirectorProcurement and Head of Customer’sdepartment for review

Manual Negotiateddraft servicelevelagreements

5. Review andapprove servicelevel agreement

Director Procurementand Head ofCustomer’sDepartment

Director Procurement and Head ofCustomer’s Department review and approveservice level agreement

Manual Approvedservice levelagreement

6. Monitorperformance

CategoryManager/Head ofCustomer’sDepartment

Category Manager and Head of Customer’sDepartment monitor performance againstparameters, key performance measures overagreed period

Manual EvaluationReport

7. Reviewperformance

Head of CustomerDepartment/DirectorProcurement

Head of Customer Department togetherwith Director Procurement measure actualperformance delivered against expectationstandards agreed

Manual Servicedeliveryevaluationreport

START

CRP



ActID



8. Implementcorrective actionplan

Category Manager Category Manager implements correctiveaction plan that may include review of keyperformance measures to manageexpectations

Manual

Service delivery key performance measuresPerformance Measure Target Frequency Reviewer Reviewee/ process

owner

1. % time frame response achievement on service issues

classified as high , medium, low priority

High : 8 Hours

Medium: 48 Hours

Low: 5 days

2. Customer requirements- in -support satisfaction level:

% payment for all support costs at the agreedinterval

% availability of customer representative(s) whenresolving a service related incident or requests

99%

3. % Frequency of notification to customer for all

scheduled service delivery (say maintenance)

% changes to services communicated and

documented to all stakeholders

100%

4. Overall customer satisfaction % 95%

END



Service delivery standard reports

SN Report Name Brief Description Purpose Source Report FrequencyReviewer

1. Service delivery

evaluation report

This report compares

actual service delivery

with standards and

expectations set forth in

the service level

agreement

To have an objective assessment

of service delivery and provide

grounds for improvement and

customer satisfaction

Manual At least Bi -Yearly Procurement

Director



Service delivery process risk and control matrix (RCM)Key Risks:

1 Inadequate provision of service to internal stakeholders leading to risk of non-accomplishment of finctioal and corporate goals

No

.

Su

bp

ro

ce

ss

Co

ntr

ol

Ob

jec

tiv

e

Co

ntr

ol

Ob

jec

tiv

e

Ca

teg

or

y(C

,F,O

)

Co

ntr

ol

Ob

jec

tiv

eT

yp

e

(C,A

,V,R

)

Fin

an

cia

lS

tate

me

nt

Ac

co

un

t/D

isc

losu

re

Fin

an

cia

lS

tate

me

nt

Asse

rti

on

Co

ntr

ols

/P

oin

tso

f

Fo

cu

s

Ap

pli

ca

ble

Or

ac

le

Bu

sin

es

sP

ro

ce

ss

To

ols

Tc

od

e(s

)

Co

ntr

ol

Ty

pe

(I,S

,M,R

,Mn

)

Co

ntr

ol

Ap

pr

oa

ch

(P,D

)

Fr

eq

ue

nc

y

(E,D

,W,M

,Q,A

)

Po

lic

y/

Pr

oc

ed

ur

e

Re

fer

en

ce

Co

ntr

ol

Ob

jec

tiv

e

Ow

ne

r

1 Service level

agreements

To ensure

optimum

provision of

service to internal

stakeholders

O N/A N/A N/A Director Procurement and Head of Customer’s

Department review and approve service level

agreement. Head of Customer

Department together with Director Procurement

measure actual performance delivered against

expectation standards agreed

M P E N/A Category

Manager



APPENDICES

Appendix I PPA/VRA AUTHORISATION THRESHOLD MATRIX

RFQ/PR PO AWARD RFQ/PR PO AWARD

0 5,000.00 HOE/DP 0 10,000.00 HOE

5,001.00 20,000.00 ETC 10,001.00 20,000.00

20,001.00 50,000.00 DSCH/DP DSCH/DP

RFQ/PR PO AWARD

20,001.00 50,000.00 DP RFQ/PR PO AWARD

50,001.00 100,000.00 50,001.00 200,000.00 ETC

100,001.00 700,000.00 200,001.00 700,000.00

700,001.00 800,000.00 700,001.00 1,500,000.00 CE

800,001.00 1,500,000.00 CTRB

RFQ/PR PO AWARD

RFQ/PR PO AWARD 1,500,001.00 PLUS CE DIRECTOR CTRB

1,500,001.00 PLUS CE DP CTRB

THRESHOLD

THRESHOLD

THRESHOLD

PRICE QUOTATION

NATIONAL COMP. TENDERING (NCT)

INT'L. COMP. TENDERING (ICT)

CE

DPMTRB

DP DP

DCE

ETC

PRICE QUOTATION

THRESHOLD

DTGD/DNED/

DHS/

DTGD/DNED/

DHS/

ETC


THRESHOLD

DCEDIRECTOR

MTRB


THRESHOLD



METHOD RFQ/PR PO AWARD

0 5,000.00 HOE RFQ/PR PO AWARD

5,001.00 35,000.00 0 5,000.00 HOE

35,001.00 50,000.00 5,001.00 20,000.00 ETC

50,001.00 70,000.00

70,001.00 350,000.00

350,001.00 PLUS CTRB RFQ/PR PO AWARD

20,001.00 100,000.00 ETC

100,001.00 200,000.00 MTRB

RFQ/PR PO AWARD

200,001.00 800,000.00 MTRB

800,001.00 PLUS CTRB

CONSULTING SERVICES

SBCQ

CE DCELEAST COST

MTRB

EOI

THRESHOLD

ETC

TECHNICAL SERVICES

PRICE QUOTATION

THRESHOLD

CE DCE

THRESHOLD

CE DIRECTOR


THRESHOLD

CE DCE




Appendix II OVERVIEW OF JOB ROLES (SAMPLE)

Category Manager Develops monthly updates for overall benefit tracking strategy Investigates shortfalls to understand caused and develop remedies Works with end-users in refining specifications Ensures that sourcing perspective is incorporated into new buying decisions Investigates new opportunities for realising values within the category Communicates sourcing recommendations, pricing, and policy to organisational stakeholders Serves as single-point of contact for questions for responsible category Works with entity stakeholders to understand concerns/issues with implementation Communicates changes/alterations to sourcing policy Resolves critical implementation and/or supply issues Serves as mediator between internal stakeholders and supplier representatives Monitors performance of key suppliers in order to remediate any issues



Appendix III – Standard Documents

No. Term Definition

1. Category Strategy Document Outlines the strategy for each category2. Procurement Plan Details annual budgeted procurement spend and

expected savings3. Request for Quotations/ Proposals Invites suppliers into a bidding process4. Tender Documents Issued to prospective tenderers ( for free or at a fee) when

they are invited to tender and forms the basis on whichtenders would be evaluated

5. Sole Sourcing Plan Details annual sole sourcing requirements6. Restricted Tendering Plan Details annual restricted tendering requirements7. Technical and Financial Proposals Submitted by tenderers in response to requests for

quotations or proposals8. Notification of Award Issued to a winning tenderer or bidding after evaluation

has been done9. Acceptance Letter Issued to and signed by winning tenderer or bidder to

indicate acceptance of terms and conditions of contract10. Performance Security Bond provided by a contractor/ vendor/ service provider/

supplier to the Authority and consists of an undertakingby a bank or insurance company to make a payment tothe Authority if the contractor/ vendor/ service provider/supplier become insolvent or defaults under the contract.

11. Item Creation Request Form Completed when the need to create an item in the systemarises

12. Pick/ Pack List Shows a list of items to be picked or packed for dispatch13. Security Log Book Shows records of items dispatched, received,14. Acceptance/ Rejection Note Issued after delivered goods or services have been

inspected15. Return Material Authorisation Raised when delivered goods are rejected after inspection

and would have to be returned to supplier16. Stock-Take Plan Plan that details annual stock-take staffing requirements,

expectations, method and time of stock-take, etc17. Stock-Take Instruction Step by step guide to stock – takers to ensure stock take

expectations are met18. Physical Inventory Count Tags Help identify items or locations that have been counted19. Stock Take Sheets Sheets on which stock take quantities are recorded20. Vendor Application Form Downloaded from the corporate website of the authority.21. Import Declaration Form Customs document22. Final Classification and Valuation

ReportCustoms document

23. Master Data Change Request Form Completed when there is the need for changes to be madeto standing data. Information to be completed includechange description, reason, impacted staff/departments,and estimated time

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