Purchasing / Accounts Payable Cycle
|All requests for goods and services are initiated and approved by authorized individuals, and are in accordance with budget and appropriation guidelines.||Purchases from unauthorized vendors.
Purchases are in violation of a conflict of interest policy.
Purchases are not timely.
Purchases not in accordance with budget and/or appropriations provisions.
|All purchase orders are based on valid, approved requests and are properly executed as to price, quantity an vendor.||Payment in excess of optimum price.
Quantities not adequate or in excess of need.
Quality of materials or services received or substandard.
|All materials and services received agree with the original orders.||Payment for materials or services not received.
Damaged or missing goods not reported.
Inferior quality of materials or services received.
|All invoices processed for payment represent goods and services received and are accurate as to terms, quantities, prices and extensions; account distributions are accurate and agree with established account classifications.||Payment based on improper price or terms.
Accounting distribution of cost is inaccurate.
|All checks are prepared on the basis of adequate and approved documentation, compared with supporting data and properly approved, signed and mailed. -Incorrect or duplicate payments.||Alteration of checks.
Disbursement for materials or services not properly documented or approved.
|All disbursement, accounts payable, encumbrance transactions are promptly and accurately recorded as to payee and amount.||Improper cash, accounts payable, and encumbrance balances.|
|All entries to accounts payable, reserve for encumbrances, asset and expense accounts and cash disbursements are properly accumulated, classified and summarized in the accounts.||Misstated financial statements.
Misstated internal financial data.
Inoperable budgetary control.
|Division of Purchases policies are followed in procurement, sufficient competitive bids/quotes are obtained and the State receives the best possible price - Purchasing policies violated.||Insufficient opportunity for potential bidders/suppliers.
State pays unnecessarily high price for goods or services.
Goods procured are of lower quality than those for same or lower price.
Loss of funds from procurement fraud.