Accountability, authorization, and approval mechanism :

In an efficient purchase system, the mechanism of authorization, review, and approval should exist. All purchases should be made on the basis of signed agreements, contract terms, and purchase orders.

It will always be advisable to –

(i) Comply with ethical buying practices and policy.

(ii) Review and update signature authorizations periodically.

(iii) Obtain pre-approval of consultant agreements by Purchasing.

(iv) Verify receipt of goods and services against contract/ purchase order and invoice information.

(v) Reconcile ledgers for accuracy of recorded transactions.

(vi) Monitor to ensure that invoices are paid in a timely manner.

In case the mechanism of ascertaining accountability does not exist. it may result into unauthorized or unnecessary purchases, purchases at higher rate, misappropriation of funds.