Ensure that the total budget for awarded contracts does not exceed the predetermined limits
1. Objective Overview
The primary objective for this quarter is to ensure the efficient and transparent allocation of budgets through the SayPro Quarterly Bidding Process. This includes the awarding of contracts aligned with procurement needs while strictly adhering to the budgetary limits established in SayPro Monthly January SCMR-1.
2. Key Focus Area: Budget Allocation
Target:
Ensure that the total value of awarded contracts does not exceed the quarterly budget limits as defined in SCMR-1.
Guiding Document:
- SayPro Monthly January SCMR-1 – This document outlines the total allowable budget for each procurement category and sets financial thresholds per project and supplier engagement.
3. Actions & Requirements
a. Contract Valuation and Approval Workflow
- All contract proposals must go through a pre-award budget compliance check.
- Each contract’s estimated cost must be logged and approved by the SayPro Finance Oversight Committee (FOC).
- Procurement officers must cross-reference proposed bids with the remaining quarterly budget allocation before issuing any contract award notices.
b. Budget Tracking Mechanism
- A real-time digital tracking system should be used to:
- Record awarded contract values.
- Compare cumulative contract values against category-specific quarterly budget caps.
- Trigger alerts when 80% of the budget cap is reached.
c. Procurement Category Allocations
From SCMR-1, the budget allocations for the quarter are divided as follows:
- Infrastructure & Facilities: ZAR 5,000,000
- Technology & Systems: ZAR 2,500,000
- Training & Development Services: ZAR 1,200,000
- Consulting & Professional Services: ZAR 800,000
- Operational Supplies & Logistics: ZAR 1,500,000
Note: Any adjustments or reallocation of unused funds between categories require prior approval from the FOC.
4. Monitoring & Reporting
Monthly Reporting Milestones:
- End of Month 1: Preliminary budget usage report, identifying potential over-allocations or underspendings.
- End of Month 2: Mid-term performance review to realign procurement strategies.
- End of Month 3: Final budget and contract award reconciliation submitted to SCM Review Board.
5. Compliance and Governance
- All awarded contracts must include a compliance certification statement indicating adherence to the quarterly budget.
- Random audits will be conducted by SayPro Internal Audit Unit to assess adherence to the SCMR-1 provisions.
- Any procurement unit found in breach of budget constraints will be required to submit a Corrective Action Report (CAR) within 10 business days.
6. Risk Mitigation Measures
- Implement a Contractual Cap Buffer System to reserve 5–10% of the total quarterly budget as a contingency.
- Design a Procurement Forecasting Tool to better anticipate high-value bidding items earlier in the quarter.
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