Purchasing-A/P Cycle

Self Assessment of Internal Control Questionnaire

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Objectives and Risks
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.