Review and reconciliation :

Review and reconciliation is a very important part of purchase internal control system. Timely review of supplier’s invoice, packing slips, and purchase orders is very necessary to ensure accuracy of the information for prior payment, correct quantity ordered, and price charged. Monthly ledger reconciliation enables to find improper charges and validate appropriate financial transactions.

It is advisable to –

(i) Review supplier invoices for accuracy by comparing charges to purchase orders.

(ii) Verify that the goods and services purchased have been received.

(iii) Perform monthly reconciliations of operating ledgers to ensure accuracy and timeliness of expenses.

In case review and reconciliation process is missing, it may result into improper charges to the department budgets, Disallowances resulting from costs charged to incorrect accounts/funds, payments made for items or services not provided