Issue - meetings

This report sets out all breaches of Financial Regulations (the Regulations) and the four circumstances described in Part G, Paragraph 5 (para 5), recorded within Procurement Decision Records (PDRs), where circumstances exist where the expected and normal procurement related activity, requirement or expectation could not be followed for some good reason, during the 2025/26 financial year.

Circumstances described in Financial Regulations paragraph 5 are:

i.                Standard competition requirements not followed as they would likely cause harm to health or property. 

ii.               A particular supplier is required because competition is absent for technical reasons 

iii.              Payments in advance for goods, services or works 

iv.             Spot-purchase (i.e. off-contract) when buying against a compliantly procured contract was an option. 

An analysis of breaches and PDRs highlights the following:

Whilst no breaches of Financial Regulations is the preferable position, the relatively low number of breaches  suggests a good level of understanding of the requirements among managers and officers across most service directorates, resulting in general compliance with the Regulations.

The breaches were primarily due to a lack of awareness of Financial Regulations, which is being addressed through targeted training and guidance, alongside reminders to managers of their responsibility to ensure staff are properly trained and managed.

Whilst full compliance can never be guaranteed and ‘under-reporting’ of breaches, in particular, is an inherent possibility, arrangements were in place to detect instances of non-compliance.

There were 382 PDRs approved during 2025/26 totalling approximately £231m and of these 133 were circumstances as described in Financial Regulations Part G Paragraph 5 which require reporting to this committee.

An effective and transparent breaches and PDR governance process maximises the chances of the Council achieving value for money and complying with UK Procurement Legislation (Public Contract Regulations 2015 & Procurement Act 2023).