MCPPO Contracting Overview-Public Purchasing Principles Questions and Answers 2024/2025
4 views 0 purchase
Course
MCPPO
Institution
MCPPO
Public Purchasing Objectives:
obtain the materials, services and facilities required by public organizations, when
and where the materials, services, and facilities are needed, at the best price
reasonably available through open, fair competition, at a reasonable cost.
Price = ?
cont...
MCPPO Contracting Overview-Public
Purchasing Principles Questions and
Answers 2024/2025
Public Purchasing Objectives:
obtain the materials, services and facilities required by public organizations, when
and where the materials, services, and facilities are needed, at the best price
reasonably available through open, fair competition, at a reasonable cost.
Price = ?
contract amount
Cost =?
What's paid to vendor and other cost associated e.g., soft costs -time, research, etc.,
bid process, contract administration.
Key control activities related to procurement are:
#1-Establishing authority for approval of transactions
#2-Estalishing responsibility for executing transactions
#3-Segregation of duties
#4-Control of Access to Assets and Records
#5-Monitoring
#1-Establishing authority for approval of transactions
the organization should clearly establish and document which position within the
organization have the authority to approve specific transactions.
#2-Estalishing responsibility for executing transactions?
The organization should clearly establish and document which positions within the
organization are responsible for carrying out specifically defined transactions and
should provide a detailed description of the procedures for carrying out and
documenting each type of transaction
#3-Segregation of duties?
segregation of duties means that no employee should be in a position to carry out an
improper transaction and then conceal it. In other words, a single individual should not
have the ability to authorize a transaction, carry out the transaction, records the
transaction, maintain custody of the assets resulting for the transaction, and control the
books and records relating to the transaction. For example, in the context of
procurement of supplies, no single employee should be able to authorize a purchase,
issue a purchase order, verify receipt of the ordered good, and approve payment of
the resulting invoices. Vesting absolute control in one person invites embezzlement,
theft and fraud, and collusion. These duties should be segregated by assigning them to
several individuals.
#4-Control of Access to Assets and Records?
Reasonable care should be taken to maintain physical security over assets. The term
"assets" refers generally to items, equipment, and furnishing that are the property of
the public organization. Inventories should generally be maintained in locked storage
areas accessible only to designated individuals. The organization should establish a
sign-out system to keep track of value items such as tool that are needed temporarily
by employees. items such as laptop computers can be assigned on a long-term basis to
employees who need them, and a designated individual should be responsible for
maintaining records pertaining to these assignments. the internal control system should
ensure that employees are held accountable for valuable equipment that they need to
use in connection with their jobs. Controlling access to records is also very important.
specific positions should have responsibility and physical control over designated
categories of records. Similarly, access to computer records should be controlled.
Employees should not have access to records beyond the specific needs of their jobs.
Passwords should be kept secret and changed periodically. Controlling access for both
hard copy and computer records will make employee theft more difficult to cover up.
#5-Monitoring
1|Page| GradeA+ | 2 0 0 2 5
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestTrackers. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
