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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 11/07/2006
REQUEST TO WAIVE CONTRACT PROCEDURE RULES


Summary & Purpose
A request is made by the Director of Finance to appoint another company to provide internal audit resources without undertaking a tendering exercise.
APPENDIX D
Waverley Borough Council

Executive – 11TH july 2006

Title:
REQUEST TO WAIVE CONTRACT PROCEDURE RULES
[Wards Affected: N/A]

Note pursuant to Section 100B(5) of the Local Government Act 1972

An annexe to this report contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Summary and purpose:

A request is made by the Director of Finance to appoint another company to provide internal audit resources without undertaking a tendering exercise.
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Environmental implications:

There are no environmental implications arising from this report.

Social / community implications:

There are no social/community implications arising from this report, except the provision of an adequate internal audit service is a key aspect of the Council’s internal control system which in turn improves public accountability.

E-Government implications:

There are no e-government implications arising from this report.

Resource and legal implications:

The contract will be funded from the existing budgets for internal audit resources.
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Introduction

1. For the past three years, the Internal Audit Section has used a commercial company to provide resources to fulfil the Internal Audit Plan. In 2005 a joint tender was issued with Guildford Borough Council, as the then existing contract was due to expire.


2. Two contracts were let, one for IT audit and one for general audit. There have been operational difficulties with the contractor appointed to undertake the general audit work. Full details of the history and issues are contained in the (Exempt) Annexe to this report, together with details of officers’ proposals concerning the provision of audit resources in the current financial year.

Conclusion

3. Because of the problems that have been encountered, a new service provider is needed for 2006/07 that offers the flexibility required, given the importance of internal audit for the corporate governance of the Council. A short-term contract with an option to extend would appear to provide the flexibility that is required.

4. If a new contract needs to be awarded to the contractor named in the (Exempt) Annexe, it would require a waiver of Contract Procedure Rules. If granted, the Audit Manager will continue to monitor performance and identify when action is needed. An option to extend would provide flexibility in the period when a new structure for the Council is being determined.

Recommendation

It is recommended that

1. CPRs be waived in accordance with CPR W101 to allow a new contract to be awarded to the contractor named in the (Exempt) Annexe to this report, if the current contractor’s performance does not improve, at the increased day-rate quoted in the same annexe, to undertake the work contained in the Internal Audit Plan; and

2. an option be included to extend the contract to encompass work contained in the 2007/08 Internal Audit Plan.
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Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

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CONTACT OFFICER:

Name: Mr M Hill Telephone: 01483 523240
E-mail: mhill@waverley.gov.uk


Name: Mr P Wenham Telephone: 01483 523238
E-mail: pwenham@waverley.gov.uk



Comms/exec/2006-07/072