A nonprofit client downsized their procurement department. This resulted in changes to workflow, staff roles and responsibilities. I was retained to review and evaluate their procurement processes to ensure that there were proper internal controls, efficient workflow and best practices in place.
I began my assignment by meeting with the procurement team. I reviewed and documented the processes that each member followed. My investigation identified 5 critical missed steps in their procurement processes:
Missed Step #1 – Absence of a Formal Vendor Review and Vetting Process
Missed Step #2 – Absence of a Database for Executed Vendor Contracts
Missed Step #3 – Services Were Performed & Goods Were Received Without Proper Authorization
Missed Step #4 – Failure to Review and Approve All Vendor Invoices Prior to Payment
Missed Step #5 – The Procurement Policies and Procedures Were Not Documented, Approved & Distributed to All Staff
I then submitted a report to senior management with recommendations for:
- Implementing internal controls and best practices where they did not exist
- Establishing an online tracking system for managing executed contracts
- Eliminating workflow inefficiencies
- Optimizing the use of automated systems
- Documenting, distributing and enforcing procurement policies and procedures.
As a result of my recommendations, the organization put processes in place to help ensure that they were only paying for goods received and services performed; payments to vendors were in agreement with executed contracts; the vendors chosen were properly vetted, and the procurement processes were uniformly followed throughout the organization.
You are invited to schedule a complimentary consultation to discuss how we can help your organization improve the processes in your procurement department.
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