Procurement & Financial Policy

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Procurement & Financial Policy

Date: April 5th, 2023


This policy outlines the procedures and guidelines for procurement and financial management for Skills House Company. The purpose of this policy is to ensure that all procurement activities are conducted in a transparent, ethical and efficient manner and financial transactions are recorded accurately and reported in a timely manner.

Procurement Policy for Skills House

1. Procurement Process:

Skills House will follow a formal procurement process for all goods and services. The procurement process will include the following steps:

  • Identifying the need for goods and services
  • Conducting market research to identify potential suppliers
  • Preparing a request for quotation (RFQ) or a request for proposal (RFP)
  • Evaluating supplier responses and selecting the best value supplier
  • Negotiating and awarding the contract
  • Monitoring supplier performance and managing contract changes

2. Supplier Selection:

Skills House will select suppliers based on their ability to provide quality goods and services at competitive prices. Suppliers will be evaluated on their experience, technical capability, financial stability, and compliance with relevant laws and regulations. Skills House will also consider the supplier’s environmental, social, and ethical practices in the selection process. The supplier selection process will be conducted by the relevant department or procurement manager, with input from other departments as necessary.

3. Contracting:

All procurement contracts will be in writing and will clearly define the terms and conditions, delivery timelines, payment terms, and warranties. The contract will also specify the scope of work, the quality standards, and any other requirements. The contract will be signed by both parties, and a copy will be kept on file. Skills House will ensure that it complies with the contract terms and conditions, and will manage any changes to the contract in accordance with the agreed procedures.

4. Ethical Standards:

Skills House is committed to ethical procurement practices and will not tolerate any form of unethical behavior or corruption. All suppliers will be required to adhere to ethical standards, including compliance with relevant laws and regulations, anti-bribery policies, and conflict of interest policies. Skills House will also conduct due diligence on suppliers to ensure compliance with ethical standards.

5. Risk Management:

Skills House will conduct a risk assessment of all procurement activities to identify and manage any potential risks that may impact the procurement process. The risk assessment will include risks related to supplier performance, cost overruns, legal compliance, and reputational risk.

Financial Policy for Skills House

1. Budgeting:

Skills House will prepare an annual budget that will be reviewed and approved by the board of directors. The budget will be based on realistic revenue and expenditure forecasts and will be regularly monitored and adjusted as necessary. The budget will be reviewed on a quarterly basis to ensure that it is on track and to identify any variances. The budget will include all operational expenses, such as salaries, rent, utilities, and travel expenses, as well as capital expenditures, such as equipment purchases and office renovations. 

2. Financial Reporting:

Skills House will maintain accurate and up-to-date financial records, including income statements, balance sheets, and cash flow statements. These records will be reviewed and audited annually by an independent auditor. Monthly financial statements will be prepared to provide an accurate picture of the financial performance of the organization. The financial reports will be shared with the board of directors, management team, and relevant stakeholders.

3. Payment Process:

All payments will be processed in accordance with the procurement process and the terms and conditions of the contract. Payment requests must be supported by appropriate documentation, such as invoices and delivery notes. All payments will be made through the organization’s bank account, and cash payments will be madesometimes. The payment process will be managed by the finance team, which will ensure that payments are made in a timely manner.

4. Cash Management:

Skills House will maintain appropriate cash reserves to ensure the organization’s financial stability. Surplus funds will be invested in accordance with the organization’s investment policy. Cash flow projections will be prepared on a regular basis to identify any potential shortfalls and to ensure that there is sufficient cash to meet the organization’s obligations.

5. Financial Control:

Skills House will establish appropriate financial controls to prevent fraud, errors, or other financial irregularities. These controls will include segregation of duties, approval processes, and regular internal audits. All financial transactions will be recorded in the Excel, and access to the these sheets will be restricted to authorized personnel.

6. Compliance:

Skills House will comply with all relevant financial and accounting regulations and standards, including tax laws, accounting principles, and reporting requirements. The organization will maintain appropriate documentation to support all financial transactions and will ensure that all tax filings are submitted in a timely and accurate manner.