AccessFocus
P.o.
Box946ARTARMONN.S.W.Australia1570
I·
.
,
3.1
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a;
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3.2
CHAPTER3~ACCESSFOCUS
AvrioServicesPty.Limited,anAustralianlimitedliabilitycompany,wasregisteredon22Aptil1996.Itchangeditsnameon
11
September2002toAccessFocusPty.Limited,andon25SeptemberofthesameyeartoAutioServicesPty.Limited.Thecompany,whichtradesasAccessFocus,hastwoshareholders,eachofwhomholdsa$1.00share:GlenDowningandMichelleDowning.HeandAlfredAlexanderDowningof
7
TheOutlook,Bilgola,atedirectorsofthecompany.Thelatter,whois
generally
knownas
Alf
Downing,istheguiding
light
ofthecompanyandthebusinessitconducts.WewereprovidedbytheUnionwithalargebundleofinvoicesandchequerequisitiondocuments,whichshowthatAccessFocusreceivedalittleover
$4.5M
(excluding
GS1)
fromHSUeastduringtheperiodfrom
3
October2007to
30
September2011.Atypicalinvoiceappearsbelow:TaxInvoiceInvoice
#:
00005618
A.B.N.23
073
709949
Date:26/5/11
Bill
To:
ShipTo:HSULevel
2
109Pitt
StreetSYDNEY
NSW
2000HSULevel
2
109PittStreetSYDNEYNSW2000AmountescriptionToprovide2x
1000
BusinessCardsPrinted
&
CelloGlazed$750,00each$1,500.00Freight:$0.00Terms:Net30
Days
GST:
$150.00
TotalIncGST:
$1,650.00
22
3.5
3.6
3.7
3.3
It
will
benotedthisinvoicecontainsneithertelephonenumbernoroperatingaddress.Thatistrueofalltheotherinvoices.Mostofthemcontainlittledetail.Perhapsmoresignificantly)thechargefor1,000businesscardsshownonthe.invoicewas$750excludingGST.Competitivequotesweobtainedwereforathitdasmuch:25centspercard,asopposedto75centspercardpaidtoAccessFocus.WedonotaccuseAccessFocusofovercharg.ing:ifcustomers
will
notprotectthemselves
by
testingthemarketfromtimetotime,itmaybethatsupplierscannotbeblamedforchargingwhatevertheycangetawaywithforgoodsandservicesprovided.Wedosaythattheamountpaidwasverymuchhigherthannecessary.
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3.4
AlfDowningagreedtobeinterviewed,Heis
asalesman,
andlikesto
talk.
Tembywrotetohimon5Decemberlast,andheCaine
in
twodayslater.HearrangesforprintingworktobedonefortheUnion,butisnotaprinter.Healsosources,generallyfrom
China,
andsuppliesclothingandpromotionalgoodstotheUnion:everythingfrombusinessshirtstobeanies,frombreathalyser
kits
tobottlesforwater.HealsohelpswiththeannualUnionconvention,andarrangestransportand
delivery
ofgoodsboth
then
andatothertimes.Heagreedwiththesuggestionheisa
Hbroker
t:
andalsothatheisa
'Mr.Fix-I:"
fortheUnion.
I
Downing'sdealingsatelargelywithCherylMcMillan.HeandshediscusswhattheUnionwants,andhegivesheraprice,whichsheonbehalfoftheUnioncanacceptorreject.Downingcouldnotrecallanoccasionwhenshehadtriedtobargain
him
down.TheUnionhasbeendoingbusiness
in
thiswaywithAccessFocusforanumberofyears.IthasnotsoughtcompetitivequotesatanytimeforanyofthegoodsandserviceswhichDowning'scompanysupplies.WecannotputafigureonwhatthishascosttheUnion,butclearlythefigurelies
in
therangefromlargetoprodigious.Weobta.inedfromtheUnionsomeitemswhichwerethesubjectofrecentinvoices,andobtainedpricesfotsupply.Somedetailsfollow.
23
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ItemQuantity
$
UnitPdce
$
UnitPrice
Access
FocusIndustry
5618-
BusinessCards
1,0000.750,255619-3
ColourPads
50019.846.665531-
LuggageScales
60027.5034.28
5589-WaterBottles
6,0006.301.725696-
Beanies
5,0006.503.155603-
EmbroideredHats
15,0007.503.405645-
PrintedPens
10,000
1.35
0.325950-
Key_RingPulls
10,0001.850.735686-
MembershipBooks
10,0004.201.095586-
Lanyards
5,0003.50
1.25
3.8
3.9
Threepointsshouldbemade.ThefirstisthattheseinvoicescoveredonlyasmallproportionofthetotalgoodsprovidedbyAccessFocusovertheyeats.Theymaybetakentoberepresentative.Secondly,AccessFocusseemstohavesourcedluggagescaleswell,andchargedbelowindustryprices.
Thirdly,
wedonotknowwhetherAccessFocuschargedmorerelativeto
fair
averageindustrypricesthandidothersuppliersofgoodsandservicestotheUnion.Astotheallegation-see[1.13Jabove-largeamountswerecet~ypaidtoAccessFocus,includingatotalof
$107,481.60
in
threepayments
in
November
{
2011.
ItdoesprovidegoodsandservicestotheUnion.StepsmustbetakentoensurethattheUnionreceivesfairvaluefortheamounts
it
pays.Atthemomentithasnorealidea,onewa.yortheother.Thisis,tosaytheleast,unsatisfactory.
3.10
ProcurementpracticesattheUnionareveryinadequate.Thisextendsbeyondthefailuretocalltendersorobtaincompetitivequotes.Thesystemsforensuringthatgoodsasorderedhavebeenreceived,andforapprovinginvoicesforpayment,arerudimentaryandopentoabuse.Thisaspectistakenup
in
Chapter9.
3.11
WhetherornotitcontinuestodealwithAccessFocusisfortheUniontodecide.In
any
event,werecommendthatalldealingswithsuppliers,includingfor
.
.
printing,promotionalgoodsandclothing,be
in
thefutureonthebasisofthesatisfactorysystemforprocurementdealtwith
in
[9.12],
ataminimum.
24
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