Objectives |
Risks |
| 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.
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