Source: http://www.scribd.com/doc/100804933/Final-Temby-Report-Part-2
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Final Temby Report Part 2
P. 1Final Temby Report Part 2Final Temby Report Part 2Ratings: 0|Views: 4,103|Likes: 2Published by Latika M Bourke More info: categoriesTopics, Art & DesignPublished by: Latika M Bourke on Jul 23, 2012Copyright:Attribution Non-commercialAvailability:Read on Scribd mobile: iPhone, iPad and Android.Free download as PDF, TXT or read online for free from ScribdFlag for inappropriate content|Add to collectionSee MoreSee lesshttp://www.scribd.com/doc/100804933/Final-Temby-Report-Part-207/25/2012pdftextoriginal AccessFocus
Box946ARTARMONN.S.W.Australia1570
CHAPTER3~ACCESSFOCUS
AvrioServicesPty.Limited,anAustralianlimitedliabilitycompany,wasregisteredon22Aptil1996.Itchangeditsnameon
September2002toAccessFocusPty.Limited,andon25SeptemberofthesameyeartoAutioServicesPty.Limited.Thecompany,whichtradesasAccessFocus,hastwoshareholders,eachofwhomholdsa$1.00share:GlenDowningandMichelleDowning.HeandAlfredAlexanderDowningof
TheOutlook,Bilgola,atedirectorsofthecompany.Thelatter,whois
Downing,istheguiding
ofthecompanyandthebusinessitconducts.WewereprovidedbytheUnionwithalargebundleofinvoicesandchequerequisitiondocuments,whichshowthatAccessFocusreceivedalittleover
fromHSUeastduringtheperiodfrom
October2007to
September2011.Atypicalinvoiceappearsbelow:TaxInvoiceInvoice
A.B.N.23
Date:26/5/11
ShipTo:HSULevel
109Pitt
2000HSULevel
109PittStreetSYDNEYNSW2000AmountescriptionToprovide2x
BusinessCardsPrinted
CelloGlazed$750,00each$1,500.00Freight:$0.00Terms:Net30
TotalIncGST:
benotedthisinvoicecontainsneithertelephonenumbernoroperatingaddress.Thatistrueofalltheotherinvoices.Mostofthemcontainlittledetail.Perhapsmoresignificantly)thechargefor1,000businesscardsshownonthe.invoicewas$750excludingGST.Competitivequotesweobtainedwereforathitdasmuch:25centspercard,asopposedto75centspercardpaidtoAccessFocus.WedonotaccuseAccessFocusofovercharg.ing:ifcustomers
notprotectthemselves
testingthemarketfromtimetotime,itmaybethatsupplierscannotbeblamedforchargingwhatevertheycangetawaywithforgoodsandservicesprovided.Wedosaythattheamountpaidwasverymuchhigherthannecessary.
AlfDowningagreedtobeinterviewed,Heis
asalesman,
andlikesto
Tembywrotetohimon5Decemberlast,andheCaine
twodayslater.HearrangesforprintingworktobedonefortheUnion,butisnotaprinter.Healsosources,generallyfrom
andsuppliesclothingandpromotionalgoodstotheUnion:everythingfrombusinessshirtstobeanies,frombreathalyser
tobottlesforwater.HealsohelpswiththeannualUnionconvention,andarrangestransportand
ofgoodsboth
andatothertimes.Heagreedwiththesuggestionheisa
andalsothatheisa
'Mr.Fix-I:"
fortheUnion.
Downing'sdealingsatelargelywithCherylMcMillan.HeandshediscusswhattheUnionwants,andhegivesheraprice,whichsheonbehalfoftheUnioncanacceptorreject.Downingcouldnotrecallanoccasionwhenshehadtriedtobargain
down.TheUnionhasbeendoingbusiness
thiswaywithAccessFocusforanumberofyears.IthasnotsoughtcompetitivequotesatanytimeforanyofthegoodsandserviceswhichDowning'scompanysupplies.WecannotputafigureonwhatthishascosttheUnion,butclearlythefigurelies
therangefromlargetoprodigious.Weobta.inedfromtheUnionsomeitemswhichwerethesubjectofrecentinvoices,andobtainedpricesfotsupply.Somedetailsfollow.
UnitPdce
1,0000.750,255619-3
ColourPads
50019.846.665531-
60027.5034.28
5589-WaterBottles
6,0006.301.725696-
5,0006.503.155603-
15,0007.503.405645-
PrintedPens
0.325950-
Key_RingPulls
10,0001.850.735686-
MembershipBooks
10,0004.201.095586-
5,0003.50
Threepointsshouldbemade.ThefirstisthattheseinvoicescoveredonlyasmallproportionofthetotalgoodsprovidedbyAccessFocusovertheyeats.Theymaybetakentoberepresentative.Secondly,AccessFocusseemstohavesourcedluggagescaleswell,andchargedbelowindustryprices.
wedonotknowwhetherAccessFocuschargedmorerelativeto
averageindustrypricesthandidothersuppliersofgoodsandservicestotheUnion.Astotheallegation-see[1.13Jabove-largeamountswerecet~ypaidtoAccessFocus,includingatotalof
$107,481.60
threepayments
ItdoesprovidegoodsandservicestotheUnion.StepsmustbetakentoensurethattheUnionreceivesfairvaluefortheamounts
pays.Atthemomentithasnorealidea,onewa.yortheother.Thisis,tosaytheleast,unsatisfactory.
ProcurementpracticesattheUnionareveryinadequate.Thisextendsbeyondthefailuretocalltendersorobtaincompetitivequotes.Thesystemsforensuringthatgoodsasorderedhavebeenreceived,andforapprovinginvoicesforpayment,arerudimentaryandopentoabuse.Thisaspectistakenup
WhetherornotitcontinuestodealwithAccessFocusisfortheUniontodecide.In
event,werecommendthatalldealingswithsuppliers,includingfor
printing,promotionalgoodsandclothing,be
[9.12],
ataminimum.
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