Monitoring and evaluating procurement procedures is an integral part of the management of an organization. The procurement process deserves a high level of attention from management to ensure that it does not fall prey to fraud and corruption. Procurement procedures need to include effective controls to achieve accountability and transparency. Management’s continuous monitoring and evaluating of the procurement process establishes integrity and compliance with laws and ethical standards.
Identify the internal controls that exist and whether the controls are operating as designed. No opportunity should exist for the any of the controls to be overridden. Key internal controls to assess include segregation of duties, supervisory controls, receiving controls, authorization controls and recording controls.
Develop a compliance checklist to determine if procurement procedures are being followed. The checklist should be designed with collaboration from employees and management. By participating in the development of the checklist, the employee is essentially being trained and has greater awareness of the process. A good compliance checklist reinforces existing procedures and translates the objectives of fairness, openness and competition.
Perform a risk assessment to map out or identify possible concerns, weaknesses or areas of high risk. By identifying indicators or “red flags,” the organization can ensure that adequate internal controls are in place to prevent irregularities. By identifying risks, conflicts of interest and incidence of fraud and corruption can be curtailed.
Trace specific procurements through the entire procurement process. Consider whether the procurement provided for open competition and if it was transparent and free from discrimination to certain suppliers. Determine if the procurement method used was appropriate for the good or service being acquired and ensure that it was adequately documented.
With 20 years experience in the area of grant funded fiscal management, Ann Westin has extensive knowledge of Federal regulations and how to establish sound internal controls to ensure fiscal compliance and accountability. Ann Westin earned the designation of Certified Community Action Professional in 2004 and holds Bachelor of Science degrees in business administration and accounting.