Department of Internal Audit and Compliance

Purchasing

Effectiveness and efficiency of operations 

A. Materials purchased satisfy the University’s requirements and needs.

  1. Is the usage scheduling system integrated with the purchasing system?

B. Materials received meet required quality standards.

  1. Is the entry to facilities checked, appropriate visiting documents issued, and random checks of persons on the premises performed?
  2. Is the receiving function physically segregated from end users and shipping, unless good business practice dictates otherwise?

C. The receiving process is safe.

  1. Are vendors notified of University personnel authorized to approve purchase orders?
  2. Does the system use an approved vendor master file to verify appropriate vendors during purchase order creation?
  3. Is authorization required for all changes to program routines?

D. Receipts are properly authorized.

  1. Are only supplies, merchandise, and services accepted that are supported with an authorized purchase order?
  2. Are receipts without an authorized purchase order or its equivalent returned to the supplier, or investigated for propriety in a timely manner?
  3. Are all discrepancies noted on the receiving reports and resolved with the supplier?

E. All receipt transactions are reliably processed and reported.

  1. Is authorization of all changes to program routines required?
  2. Have objectives been developed for identifying potential candidates for strategic alliances?
  3. Are integrated system technologies, such as EDI, employed to streamline the accounts payable process and link with strategic partners?
  4. Is purchasing policy provision for meeting ethical and procedural requirements complied with when evaluating vendors?

    Back

Last Updated: 1/3/23