Agenda item

To present a summary of the KPMG report.

A summary report on the KPMG fitness review of procurement arrangements at the Isle of Anglesey County Council was presented for the Committee’s information.

The Interim Head of Procurement informed the Committee that KPMG was commissioned to undertake Fitness reports on procurement arrangements at all local authorities in Wales subsequent to a review commissioned by the WG’s Minister for Finance into maximising the impact of Welsh Procurement Policy. The review recommended the re-introduction of capability assessments which the Minister then confirmed would be re-introduced. The objective of the work by KPMG was to determine whether organisational procurement capability is adequate and also to enable organisations to identify their strengths and areas for improvement. The Officer explained the methodology adopted in undertaking the review and confirmed that the actions for improvement recommended for the Authority recognise the activities that are already on-going and planned and are intended to support those activities and provide practical advice to support those improvements.

Members of the Audit Committee commented to the effect that they would have liked to have seen more of the detail of the KPMG report in terms of the aspects examined and the findings thereon, given that procurement is an area of interest for the Committee and is one that has been identified as in need of strengthening.

The Interim Head of Procurement elaborated on the main conclusions of the KPMG report under each of the dimensions reviewed and the recommended actions along with explanatory comments made as to the current status and context. The Officer said that weaknesses had been highlighted in a number of areas and that overall the report concludes that the benefits of implementing the recommendations of the review along with those of the December 2012 Internal Audit report is that the Authority will have a consistent and compliant approach to procurement for the organisation which will act as a building block from which future improvements and cost savings can be achieved. The Interim Head of Procurement emphasised that he had discussed the issue of procurement with all Service Heads and that they have been proactive in seeking solutions to address the shortcomings. He confirmed that Heads of Service are fully supportive of the actions to be taken. Moreover a procurement strategy has been drafted to be presented to the Executive and revised contract procedure rules are being looked at by the Legal Section which collectively will add to the benefits.

The Internal Audit Manager said that the review provides an opportunity to put in place a procurement system that meets the Authority’s needs and will generate savings.

Members were agreed that a further meeting of the Committee was necessary to enable them to consider in greater detail the recommendations of the KPMG review and the planned actions to implement them and it was decided to reconvene for that purpose before the end of April with an invitation to attend to the Chief Executive, Deputy Chief Executive and Leader of the Council.

It was resolved –

•           To note the information presented.

•           That the Committee reconvenes before the end of April to consider further the recommendations of the KPMG review of procurement arrangements and the response to them.

ACTIONS ARISING:

•           Committee Officer to confirm arrangements for a further meeting in consultation with the Chair.

•           Interim Head of Procurement to prepare a presentation for the meeting setting out the issues highlighted by the KPMG review and the actions proposed/required to address them.