Internal Controls — Procurement & Purchasing

• All requests for goods and services are initiated and approved by authorized individuals, and are in accordance with budget and appropriation guidelines. 
• Segregation of duties and responsibilities of individuals with authorized roles in procurement and purchasing process.
• Maintenance of appropriate monitoring/oversight mechanisms to ensure integrity of process.
• All purchase orders are based on valid, approved requests and are properly executed as to price, quantity and vendor. 
• All materials and services received agree with the original orders.
• Contractors are not involved in writing specifications.
• Contractors are not provided with advance information.
• Proof exists of contractor credentials, certifications, experience, financial performance, success.
• Contractors in a competitive field are used in a diverse manner.
• Solicitations are adequately publicized.
• No fraternization with contractors. 
• Justified prices from all bidders are compared to other markets.
• Policies regarding source selection are well-written and awards are made to contractors with excellent histories of past performance.
• Justification for disqualifying offerors is adequately documented.
• Post-award employment of procurement officials does not occur. 
• Payments requests are consistent with prior cost data.
• Documentation of costs is complete.
• Professional fees have sufficient details.
• Records are accessed in a timely manner.

• Purchases are made 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.
• Excess goods or services are purchased.
• Unwarranted feature creep occurs.
• Specifications that don’t add value are included in requests.
• Performance/quality standards are inappropriate or missing.
• Bid rigging.
• Contract unbalancing.
• Bid rotation and sporadic bidding.
• Kickbacks/“pay-to-play” schemes transpire.
• Token/complimentary/shadow bids are submitted.
• Schemes involving change orders take place.
• Confidential information resulting in a competitive advantage is disclosed.
• Source selection is poorly documented.
• Awards are made to firms that are incapable or unqualified.
• False vendors are awarded contracts.
• Employee ownership or financial interest in a vendor is not disclosed.
• Progress payment fraud.
• Product substitution.