Updated authorised 20092013 Lynn Lee Finance Manager Wollongong Page 48 of 54

Updated authorised 20092013 lynn lee finance manager

This preview shows page 51 - 54 out of 57 pages.

Updated/ authorised 20/09/2013 – Lynn Lee (Finance Manager, Wollongong) Page 48 of 54
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Australian Hardware Simulated Business Principles governing the procurement process 1. Probity and ethical behaviour The principle of probity (which means to have strong moral principles, honesty and decency) and ethical behaviour governs the conduct of all procurement activities. Employees who have authority to procure goods and services must comply with the standards of integrity, probity, professional conduct and ethical behaviour. Employees or directors must not seek to benefit from supplier practices that may be dishonest or unethical. 2. Sustainability Follow the sustainability policy and principles outlined in the sustainability policy when procuring supplies. 3. Value for money Value for money is the core principle underpinning procurement. Organisations contracted to do work for Australian Hardware must be cost-efective and efficient in the use of resources while upholding the highest standards of probity and integrity. In general, a competitive procurement process that is carried out in an open, objective and transparent manner can achieve best value for money in procurement. 4. Non-discrimination This procurement policy requires that the procurement process is non-discriminatory. All potential contracted suppliers should have the same opportunities to compete for business and must be treated equitably based on their suitability for the intended purpose. 5. Risk management Risk management involves the systematic identification, analysis, treatment of risk as well as, where possible, the implementation of appropriate risk mitigation strategies. It is integral to efficiency and efectiveness to proactively identify, evaluate, and manage risks arising out of procurement related activities. The risks associated with procurement activity must be managed in accordance with the organisation’s risk management policy. 6. Responsible financial management The principle of responsible financial management must be applied to all procurement activities. Factors that must be considered include: the availability of funds within an existing approved budget staf approving the expenditure of funds strictly within their delegations measures to contain costs of the procurement without compromising any procurement principles. Page 49 of 54
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Australian Hardware Simulated Business 7. Procurement planning In order to achieve value for money, each procurement process must be well planned and conducted in accordance with the principles contained in this document. The process must also comply with all of the organisation’s policies and relevant legal and regulatory requirements. When planning appropriate procurement processes, consideration should be given to adopting an approach that: encourages competition ensures that rules do not operate to limit competition by unnecessarily discriminating against particular suppliers recognises any industry regulation and licensing requirements
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