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MCPPO CONTRACTING OVERVIEW – PUBLIC PURCHASING PRINCIPLES EXAM
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MCPPO CONTRACTING OVERVIEW – PUBLIC PURCHASING PRINCIPLES EXAM
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MCPPO CONTRACTING OVERVIEW –PUBLIC PURCHASING PRINCIPLES
EXAM 2024-2025
Public Purchasing Objectives: - To procure the products, services, and facilities
necessary for public organisations promptly and at optimal prices, achieved via
transparent and equitable competition, while ensuring appropriate expenditures.
What is the price? - CONTRACT AMOUNT FOR ANSWER
What is the cost? - ANSWER: Compensation to the vendor plus additional
expenses, such as soft costs including time, research, the bidding procedure, and
contract administration.
Essential control tasks about procurement include: - ANSWER #1 - Designating
authority for transaction approval.
#2-Establishing accountability for transaction execution
Segregation of duties
Control of Access to Assets and Records
Monitoring
Establishing authority for transaction approval - The organisation must
explicitly define and document which positions possess the authority to approve
particular transactions.
#2-Establishing accountability for transaction execution? The organisation must
, explicitly define and document the positions accountable for executing certain
transactions and furnish a comprehensive description of the procedures for
conducting and recording each transaction type.
What is the segregation of duties? Segregation of duties entails that no
employee should possess the capability to execute an improper transaction and
subsequently obscure it. A solitary individual should not possess the authority to
authorise, execute, document, safeguard the assets derived from, and manage
the documents pertaining to a transaction. In the realm of supply procurement,
no individual employee should possess the authority to authorise a purchase,
issue a purchase order, verify the arrival of the required goods, and approve
payment for the ensuing invoices. Concentrating complete authority in a single
individual facilitates embezzlement, theft, fraud, and cooperation. These
responsibilities should be distributed among multiple personnel.
Control of Access to Assets and Records - ANSWER Adequate precautions
must be implemented to ensure the physical security of assets. The term "assets"
often denotes things, equipment, and furnishings owned by the public
organisation. Inventories ought to be stored in secured facilities accessible
solely to authorised personnel. The organisation should implement a sign-out
system to monitor valuable things, such as tools, that are briefly required by
employees. Laptop computers may be allocated on a long-term basis to
personnel requiring them, and a specific individual should be accountable for
maintaining records related to these allocations. The internal control system
must guarantee that personnel are accountable for the important equipment
necessary for their job functions. Regulating access to records is crucial.
Particular positions must possess accountability and physical oversight over
assigned types of records. Access to digital records should likewise be
regulated. Employees must not access records beyond the specific requirements
of their positions. Passwords must remain confidential and be updated often.
Regulating access to both physical and digital documents will complicate the
concealment of employee theft.
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