Procurement Anomalies
Just-Below-Threshold Bunching
Detects orders clustered just under the R30k and R200k procurement thresholds.
Why orders clustering under thresholds signal control evasion
South African SCM sets procurement thresholds, notably around R30 000 for quotations and R200 000 for competitive bids, and a cluster of orders priced just below them is a textbook sign of deliberate splitting to avoid competition. The AGSA routinely identifies threshold manipulation as irregular expenditure. AuditPro Core detects bunching immediately under these limits so SCM can investigate whether requirements were artificially divided.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Orders Near R30k
612
within 5% below
Orders Near R200k
188
Bunching Index
2.7x
vs expected density
Repeat Buyers
23
Order Count by Value Band Around R30k
Buyers With Most Just-Below Orders
| Buyer | Department | Orders | Value (R'm) |
|---|---|---|---|
| Buyer 014 | Infrastructure | 47 | 1.3 |
| Buyer 028 | Corporate | 39 | 1.1 |
| Buyer 041 | Community | 31 | 0.9 |
| Buyer 053 | Water | 26 | 0.7 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
How thresholds shape procurement
The applicable threshold determines whether a single quote, three quotes or a full competitive bid is required. Each step up adds scrutiny, so values are engineered downward to avoid it.
Splitting a requirement
Dividing one genuine requirement into several smaller orders to keep each below a threshold is prohibited. The tell-tale pattern is repeated orders to the same supplier just under the limit within a short window.
Statistical bunching
In a clean population, order values spread naturally across the range. An abnormal spike in the band just below a threshold is statistically unnatural and merits investigation.
How AuditPro Core Bridges the Gap
- Bunching detection: measures order-value density just beneath the R30k and R200k thresholds against the wider distribution.
- Split-order linkage: groups near-threshold orders to the same supplier and period to expose divided requirements.
- Exception workflow: routes suspected splits for SCM confirmation and irregular-expenditure assessment.
- Traceability to source: connects each flagged order to its requisition and approval trail.
Key Takeaways
- A spike of orders just under a threshold is rarely coincidental.
- Splitting one requirement to dodge competition is irregular expenditure.
- Group near-threshold orders by supplier and period to confirm splitting.
- Quantify the band-just-below population for the irregular-expenditure register.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.