Quotes for your project

Quotes!

Hurrah! You’ve been accepted to full application with your project, more than likely the first thing you will be thinking about is getting the large number of quotes together but before you start please read the information below (taken from the handbook!).

When you submit your full application to the Dorset LEADER team we begin a very thorough quote checking process – there are over 20 things we check each quote for, if you don’t follow the rules below then we’ll send the quote back to you asking for more information; delaying your application.

How many quotes do I need for each item?

A note about VAT – the thresholds below are based on what you will actually pay – so if you are VAT registered and able to reclaim VAT, it will be the net price of the item; if not it will be the gross price. If you can’t supply the number of quotes required below then contact your sponsor to discuss.

Value of item or service How to show value for money
£1,500 or less 2 quotes or references to 2 catalogue listings (including online suppliers)
£1,501 to £10,000 3 quotes or references to 3 catalogue listings (including online suppliers)
£10,001 – £50,000 3 quotes or 2 quotes and a reference to a catalogue listing (including online suppliers)
£50,001 or more 3 quotes

General Points

Quotes must;

  • Come from different suppliers
  • Come from suppliers that are not linked to the applicant or the applicant’s business
  • Be comparable in terms of quality, size, quantity, units and specification
  • Be still valid and dated within the last 6 months
  • Include an itemised break down of costs, if this is not possible then the applicant must provide the specification that the supplier quoted against
  • Include the suppliers name/a contact name, address and telephone number
  • Include company registration number (if they are a limited company)
  • Include the VAT number (if they are VAT registered)
  • Be addressed to the applicant or their business

Print outs from online catalogues or photocopies of paper catalogues are acceptable, they must conform to all of the above and also show the date they were printed/copied and the full web address/page number.

Have a look at an example: Quotes.pdf

Project hints & tips: preparing a cash flow forecast

Notes on preparing a cash flow

A cash flow forecast is a standard tool to help organisations plan and manage their income and expenditure.  It is a normal part of any business plan for both commercial and non-profit companies.  A forecast normally covers a 12 month period – but it is good practice to up-date this on a monthly basis with the actual amounts, once you have got the basic information the updating of the cash flow is relatively simple and a really useful tool for business planning. For your LEADER grant it shows us when the ‘outputs’ from the project will occur e.g. increase in sales.

 

Step 1

  • First, gather your bank statements and records for your last financial year.
  • Go through each month and work out what money went in and out of your accounts in that month. Record the amount of income received and expenditure paid out in the month by category/type of expenditure. Your accounts may already have this information in them.
  • Add rows to the cash flow statement if necessary to account for all of your income and expenditure

 

Do this exercise in some detail – even if this is tedious, this will be the worst of it.  Remember that you are accounting for the month in which money actually left or entered your accounts.  And not when an invoice was received or issued.  The result is that you will get a picture of the last financial year. Use last year as a template for the cash flow moving forward.

 

Step 2

Now think about forecasting for the future.

 

  • What differences in income do you expect? And what differences in the timing of income do you expect?
  • Look at your expenditure. What changes are you expecting in your expenditure?  And what differences in timing do you expect?

 

Step 3

Once you have your forecast income and expenditure,

  • You need to include the opening cash balance amount as at the beginning of the year as a starting point for the month in your cash flow statement. The LEADER template should then automatically update the closing balance and other totals.

By Jessica Saunters, Project Officer for the Northern Dorset Local Action Group