Risk Matrix
Library Ordering And Purchasing

"A" = Actual Control "P" = Proposed Control

              CONTROLS                                                                                                    
    C-1 C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9 C-10 C-11 C-12 C-13 C-14 C-15 C-16 C-17 C-18 C-19 C-20 C-21 C-22 C-23 C-24 C-25 C-26 C-27 C-28 C-29 C-30 C-31 C-32 C-33 C-34 C-35 C-36 C-37 C-38 C-39 C-67 C-68 C-69 C-70 C-71 C-72 C-73 C-74 C-75 C-76 C-183 C-184 C-185 C-186 C-187 C-188 C-189
  THREATS Requisitions are placed on the order table so librarians can consolidate orders. Clerical staff collate requisitions in alpha order. INNOVACQ checks for duplicates within lats 6 months. Librarian specifies duplicate on order or by phone. Written procedures covering Acquisitions functions. Experienced/competent staff. Vendors assigned by publisher (per Charlotte's instructions in binder). Senior librarians review fund activity report. Neoma accepts rush orders. INNOVACQ password protection. INNOVACQ checks vendor/fund codes (typos). INNOVACQ prints PO's for mailing and clerk proofs. INNOVACQ rush vendor codes print rush po. Branch and unit allocations are set at the bsginning of the year. INNOVACQ alerts clerk that 95% spent. Charlotte's approval for po over allocation. Librarians stop placing orders before year end. Process for reallocating funds. OOF MR's are prepared at year end. On-line ordering requires account number. Procedures for local purchase are documented. Local purchase memo requires approval of supervising librarian. Interpreters usually accompany librarians on local purchase trips. List of local vendor discounts is distributed to staff. Charlotte signs off all local purchases. Neoma assigns po# (bib#) for local purchase. Neoma prepares local purchase receiving document. Receiving unit processes materials and invoice. Senior librarians are authorized to select materials. Senior librarians review fund activity reports. Supervising librarians review monthly financial statements. Requisitions must be initialled. Main library requisitions must be stamped. Receiving will reject shipment if no authorizing order. Requisitions are kept toghether on the order table. McNaughton lists are available to units. Periodicals are ordered once a year. Standing orders are placed once a year. Librarians receive copies of trade publications (order from sheets). Charlotte solicits on approval plans & specifies types of materials. Acquisitions tracks number of materials received and number returned to vendor. On approval books are kept on shelf at order table (returned after 1 month). Acquisitions receives books and inserts MR's for librarians to mark. Senior librarians authorized to select McNaughtons. Policy to order McNaughton books priced $17-$20 each. On-line ordering system requires account number. McNaughton sends confirmation of on-line order to branch/unit. McNaughton sends monthly status report to acquisitions. Acquisitions phones unit if exceeds allocation. Homer Fletcher memo concerning applicability of city purchasing regs. Charlotte shops for the best discounts and service. Charlotte discusses pricing service with other librarians. Charlotte monitors complaints about vendors. Annual library memo to Sam Gaetz concerning purchasing intentions. Library's Executive Policy Group approves key vendor changes. Individual orders are kept below $5,000 limit.
  ORDERING PROCESS:                                                                                                                
T-1 Ordering may not comply with established procedures.         A A                                                                                                    
T-2 Orders for multiple copies may not be consolidated. A A     A A                                                                                                    
T-3 Duplicate orders may be placed.   A A A   A   A                                                                                                
T-4 Purchase order - error/ommissions.           A   A     A A                                                                                        
T-5 Ordering errors on-line or by phone.               A                                                                                                
T-6 Order may not receive the best price (may be assigned to the wrong vendor.)         A A A                                                                                                  
T-7 The order may cause a unit or a branch to exceed its allocation.           A   A           A A A A A A                                                                          
T-8 Selectors may be using the rush process too often.                                                                                                                
T-9 Process may slow up book purchases.                 A       A                                                                                      
T-10 Unauthorized orders may be placed and charged to the library's account.                   A                   A                                                                        
  LOCAL PURCHASE PROCESS:                                                                                                                
T-11 May not comply with its local purchase process.                                         A A     A A                                                            
T-12 The amount purchased may exceed the amount allowed.                                         A A         A                                                          
T-13 Librarians may use the local purchase process too often.                                         A A                                                                    
T-14 Local purchases may not receive the best discount.                                               A A                                                              
T-15 May not be using separate invoices for different types of materials.                                                   A A                                                          
T-16 The vendor may charge more than the agreed upon price.                                                       A                                                        
T-17 The vendor may deliver goods not ordered.                                                       A                                                        
T-18 The buyers may not know what they are buying.                                           A A                                                                  
T-19 Librarians may use local purchase orders inappropriately.                                         A A     A A                                                            
T-20 Local purchase merchandise may not be properly received and cataloged.                                         A                                                                      
T-21 Unauthorized person may submit a requisition.                                                         A A A A A A A                                          
T-22 Unauthorized purchase by authorized purchaser.                                                         A A   A A A A                                          
T-23 A requisition may be lost before the order is placed.                                                         A A                                                    
T-24 Books are purchased that are available from McNaughton at lower price.                                                         A A         A A                                        
T-25 Allocation may be used up too early.                                                         A A A                                                  
T-26 Selections may not be coordinated (orders may not be consolidated).                                                         A A         A   A A A                                  
  ON APPROVAL PURCHASE PLAN:                                                                                                                
T-45 On approval materials received are not appropriate.                                                                               A A                              
T-46 On approval books lost and not returned to vendor.                                                                                 A A                            
T-47 Librarians may not be able to easily examine and order on approval books.                                                                                   A A                          
T-48 Librarians may not be taking advantage of available approval plans.                                                                               A                                
T-49 Librarians may make wrong lease/buy decision.                                                                                       A A                      
T-50 Librarians may exceed or not use their McNaughton book allocation.