Company Finance Policy
Discussion
Not sure if the correct forum.
Looking for views on a scenario at a major global company (UK based) and the requirement to adhere to internal policy or just circumnavigate as required ignoring the policy and standards that are in place.
A strict policy is in place regrading raising of Service Orders where multiple orders for a service below £50k are not allowed, with a Bid Waiver & MD approval being required for high value single source service.
Over the last 12 months one company has been issued 18 Service Orders under £50k to carry out work, the only reason for raising these below the £50k is to remove the requirement of raising the required Bid Waiver for single source and MD approval.
The company policy is quite clear with the statement "Multiple Service Orders to the same vendor must not be used to avoid Bid waiver rules" with process now monitored by SOX control.
Is it normal to have a policy that is in place but can be ignored to suit parts of the business, not sure why they would go against policy and not follow BW requirement and MD sign off other than trying to keep it low profile.
This is also a manpower service only, the director used to work internally at the Company as Limited Company Contractor, Company made a decision on a blanket PAYE across the whole company.
Note that other contracts are in place for this work and are considerably less in cost with this provider charging 30% above current contract and market rate.
Just wondering the thoughts on such practice and that if this would be normal within a large company who say they take their ethics, standards very seriously.
Looking for views on a scenario at a major global company (UK based) and the requirement to adhere to internal policy or just circumnavigate as required ignoring the policy and standards that are in place.
A strict policy is in place regrading raising of Service Orders where multiple orders for a service below £50k are not allowed, with a Bid Waiver & MD approval being required for high value single source service.
Over the last 12 months one company has been issued 18 Service Orders under £50k to carry out work, the only reason for raising these below the £50k is to remove the requirement of raising the required Bid Waiver for single source and MD approval.
The company policy is quite clear with the statement "Multiple Service Orders to the same vendor must not be used to avoid Bid waiver rules" with process now monitored by SOX control.
Is it normal to have a policy that is in place but can be ignored to suit parts of the business, not sure why they would go against policy and not follow BW requirement and MD sign off other than trying to keep it low profile.
This is also a manpower service only, the director used to work internally at the Company as Limited Company Contractor, Company made a decision on a blanket PAYE across the whole company.
Note that other contracts are in place for this work and are considerably less in cost with this provider charging 30% above current contract and market rate.
Just wondering the thoughts on such practice and that if this would be normal within a large company who say they take their ethics, standards very seriously.
No policy can accommodate every nuance of operation and good ones should allow for justifiable variance in application. The key word here is 'justifiable'.
As Ean218 says, it's common in public sector and something I benefit from occasionally with justifiable reason. The usual example is where we have been appointed to deliver a small piece of work and the project that work supports increases in scope requiring an increase in the scope of what we need to do. There's seldom the time for the client to run a full tender and given the work we've already done, no other vendor would be able to perform the additional work to the same price or with the same efficiency. So they would go into a tender situation knowing who would win which itself is contrary to policy.
The other thing that's important is that all this is transparent. I have a few times been awarded contracts with the requirement to split the costs under different project headings to avoid the need for tendering. Whilst the reasons were understood and I gratefully accepted the work, I always felt a little uncomfortable.
So I would say that providing things are justifiable and transparent then there's no issue. However, if it is a regular occurrence then one needs to either examine the policy as it would suggest that it is overly restrictive - or - the motivations of those following this course of action.
As Ean218 says, it's common in public sector and something I benefit from occasionally with justifiable reason. The usual example is where we have been appointed to deliver a small piece of work and the project that work supports increases in scope requiring an increase in the scope of what we need to do. There's seldom the time for the client to run a full tender and given the work we've already done, no other vendor would be able to perform the additional work to the same price or with the same efficiency. So they would go into a tender situation knowing who would win which itself is contrary to policy.
The other thing that's important is that all this is transparent. I have a few times been awarded contracts with the requirement to split the costs under different project headings to avoid the need for tendering. Whilst the reasons were understood and I gratefully accepted the work, I always felt a little uncomfortable.
So I would say that providing things are justifiable and transparent then there's no issue. However, if it is a regular occurrence then one needs to either examine the policy as it would suggest that it is overly restrictive - or - the motivations of those following this course of action.
StevieBee said:
No policy can accommodate every nuance of operation and good ones should allow for justifiable variance in application. The key word here is 'justifiable'.
ie 'for the guidance of wise men and the obedience of fools'. Usually the P-word is trotted out as it saves thinking or being imaginative.Would be better to invest in a software company. Try to read this blog https://mlsdev.com/blog/it-outsourcing Custom web software is designed to fulfill the organization's unique requirement. The software applications can support different web-based activities including web e-commerce, online marketing, customer relationship management, and database driven software. Custom web software contains comprehensive functionality and the solution can be customized as per the organization's needs. The organization can get help from web software development companies that offer integrated web application development, custom software design, and website programming services. These companies are able to develop customized web software according to the organizational requirements.
Edited by Kimmiller on Monday 24th May 13:13
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