Procurement and Contract Audit Forum

Terms of Reference

Procurement and Contract

For the purposes of this Forum, the terms ‘procurement' and 'contract’ are defined as being those processes within an organisation that are associated with the acquisition of goods, works and services. Such processes span the whole life cycle from initial concept and definition of business needs through to the end of the useful life of an asset or end of a services contract.

 

Procurement and Contract Audit

Procurement audit in the public sector is often referred to as ‘contract audit’, ‘capital audit’ and sometimes ‘project audit’. Whatever the terminology, it involves the review of those risk management processes, control systems, accounting records and governance arrangements within the organisation that are associated with the acquisition of goods, works and services.

 

The review process covers the commissioning of services and acquisitions that are delivered ‘in-house’ as well as those that are supplied by external third parties, such as private contractors and service providers. Both conventionally funded and more innovative types (e.g. PFI/PPP) of funded projects are included, as are acquisitions on behalf of an organisation through partnerships with other bodies.

 

Mission Statement

 

“To facilitate the identification, development and widespread adoption of best practice in procurement and contract audit.”

 

Objectives

  1. To raise the profile of procurement and contract audit;
  2. To identify and address procurement and contract audit issues, in conjunction with the Forum’s network of supporting groups;
  3. To facilitate knowledge sharing and networking on issues of common interest; and
  4. To maximise training and development opportunities and the promotion of best practice procurement audit skills / knowledge to all auditors.

The above objectives will be achieved by:-

a)  Monitoring the ‘state of the art’ and identifying procurement audit needs;

b) Developing efficient two-way communications with individual auditors through the Forum’s supporting member groups;

c) Establishing regular communications with professional bodies (e.g. Constructing Excellence, LG Improvement and Development, OGC etc) to discuss procurement issues deemed by the Forum to be of importance;

d) Encouraging organisations to liaise with others, and share and co-ordinate their annual procurement audit plans and programmes;

e) Facilitating, through the CIPFA Audit Panel, the delivery of procurement audit courses, training, and the publishing of procurement audit guidance.

 

Membership

 

Between 12 and 16 ‘executive members’ each representing a specific sector or region within the UK. Executive membership will report to the CIPFA Audit Panel and will be supported by a network of ‘interested parties’ who will each be provided with key documents (e.g. agenda, minutes etc) in order to keep them advised of the work of the Forum.  

    

Meetings

 

‘Executive members’ are to meet three times a year (in February, June and October).

 

[The above Terms of Reference for the PACAF were approved by CIPFA's Audit Panel on the 23rd February 2011]