FREQUENTLY ASKED QUESTIONS
Q1. Why does CPD charge?
Managing Public Money NI provides that costs should normally be met by departments
in proportion to their share in the consumption of resources. CPD is required to charge
for professional procurement services and advice to cover the costs of providing them.
These costs include staff salaries and General Administrative Expenses (GAE).
Charges do not cover CPD’s policy development function, which is centrally funded.
Q.2 What framework does CPD charge under?
CPD is required to apply charges in accordance with a charging regime agreed by the
Permanent Secretary Group (PSG). Should Departments wish to propose any variation
to this regime the matter must be referred to PSG. CPD’s charges are based on an
hourly rate using a forecast level of activities, staff costs and other expenses.
Q.3 Does CPD make a profit?
CPD is only allowed to recover its costs.
Q.4 What does CPD do with any surpluses/deficits?
CPD’s charging rates are based on assumptions as to its future level of chargeable
activity. Where actual activity is greater than was assumed, and CPD costs are over
recovered as a result, there are arrangements where the surplus can be rebated to
customers on a pro-rata basis. When annual activity is below the level assumed, and
there is an under recovery of CPD costs, then any deficit will be charged to customers,
again on a pro-rata basis.
Q5. Why should we treat CPD invoices differently from other Suppliers?
CPD’s charges are calculated to recover its costs. There is no profit element and, in this
respect, CPD differs from a private sector consultant. CPD is part of a central
government department and is bound by the same internal governance and control
arrangements as its customers. This includes the requirement for compliance with
Managing Public Money NI (MPMNI).
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Q6. How do I check what is being invoiced is correct? We used to be able to
check the number of hours charged to a project. Can you provide us with the
information?
The initial fees estimate is based on the time which the project should take. Any queries
should be raised at this point. Once the initial estimate is agreed there should be no
need to raise any further queries unless this estimate is exceeded. Consequently the
detail of information provided with monthly invoices has been restricted to summary
level only. This is an important change of emphasis in the invoicing process in order to
simplify administration.
Q7. What happens if Estimates are exceeded?
Job Officers/Procurement Managers will agree any additional charges if additional
services are required. CPD staff will discuss this in advance and agree a revised fee
estimate with the Requesting Officer.
Q8. How are Estimates determined?
At the commencement of a project/programme, an estimated cost for the envisaged
service required is agreed with the Requesting Officer. This is based on the time which
it is estimated that CPD will be required to work on the project/programme. The actual
hours expended in providing the service are robustly recorded by each individual using
electronic timesheets which are subsequently validated by the Grade 7 within each
branch. CPD uses this timesheet information to monitor fee expenditure.
Q9. What happens if Estimates are too high?
Customers will only be charged for the hours actually spent on the project.
Q10. Who do I ring if I have a query?
In most cases where the amount invoiced is within the Estimated Costs, there should
be no need to query the invoice. In circumstances where there is a query, this should
be addressed to the Job Officer/ Procurement Manager for the project or if there is any
invoicing query, this should be addressed to the Finance Contacts.
Q11. How do we know we will not be overcharged?
CPD endeavours to deliver efficiency savings within overhead and corporate services
costs. This is reflected in the fact that hourly rates charges were reduced by 2% for
2011/12 and the same rates are maintained for 2012/13, 2013/14 and 2014/15. In
accordance with MPMNI, CPD has a financial objective of Full Cost Recovery, and its
rates therefore include salary, employer’s National Insurance Contributions, employer’s
pension, overheads, senior management costs, travel expenses, printing, etc.
CPD’s charging rates are also based on assumptions as to its future level of chargeable
activity. Where actual activity is greater than was assumed, and CPD costs are over
recovered as a result, then there are arrangements where surplus can be rebated to
customers on a pro-rata basis. Where annual activity is below the level assumed, and
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there is an under recovery of CPD costs, then any deficit will be charged to customers,
again on a pro-rata basis.
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Process of fee agreement, invoicing and payment
CPD
Discussion of contract by CPD
and Customer
Initial stage
Agree details
Assigned to CPD
CPD raise the Fee Initiation or
relevant documents for customer
to sign off
CPD Cost Estimate provided
based on contract value/scope of
service (Note 1)
Discuss further. Agree details
Reject
Charge & invoice
Approve
CPD staff charge time as incurred to
CPD time recording system. Time
charged reviewed by Grade 7
Carry out services
(Note 2)
Note 1 For construction projects the fee estimate
can only be given when the scope of the project and
service is determined. At times, invoices may issue
prior to scope and estimate being agreed.
Invoice raised. Backup provides
information by project, Cost Estimate
for the project, charges incurred for
the month and charges incurred todate
for the project.
Process invoice based on time
charged.
CUSTOMER
Note 2 Fee estimates will be revised and agreed
with clients if the extent of the work changes. While
a best estimate of cost is provided, CPD is a full
cost recovery organisation. As such, all outturn cost
still has to be borne by the Department.
Invoice with backup provides
information by project,
Cost Estimate for the project, charges
incurred for the month and charges
incurred todate for the project.
Customer reviews
invoice
Invoice cost
greater than Cost
Estimate?
Invoice does not
provide details by
name and hours
charged to simplify
invoice and payment
process.
Refer FAQ
CPD Complaints
and Dispute
Resolution
Process
Yes
Query with CPD
No
Approve invoice for
payment
No
Yes
Satisfied with
reasons?
Yes
No
Resolved?
Resolve with CPD
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End