Risk Matrix
Procurement Process

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

        CONTROLS                                                                                                                  
THREATS C-1 Employees properly trained. C-2 Policies and procedures exist and are documented C-3 POs are reviewed and approved by dept head or designee C-4 Procedures exist to report PO violations to City Mgr/Council C-5 System controls are in place C-6 Mgmt info is produced on a regular basis C-7 Approved vendor list is maintained on-line C-8 Purchasing requests feedback from depts. about problem vendors C-9 Processes are automated electronically to the extent possible C-10 Terms & conditions on agreements give City sufficient rights C-11 Electronic data interchange with vendors is used C-12 POs evaluated on city-wide basis & combined to extent possible C-13 Buyer assignments are commodity based. C-14 Open PO contracts are monitored on a monthly basis by dept. C-15 Users must have proper open PO #s or vendors will not accept the order C-16 Depts. can indicate suggestions for vendors on purchase requisitions C-17 Performance objectives clearly defined & system tracks appropriate information C-18 Employee performance is evaluated on a regular basis C-19 Purch. Dept. monitors # of open Pos with different vendors to evaluate lost discounts C-20 Depts. monitor A/P aging on a regular basis C-21 Dept. procedures require prompt payment C-22 Mgmt. Reports detail discounts lost due to late payment C-23 Significant discounts are reported to the City Mgr C-24 Acctng Dept. ensures that edit list has been properly authorized by Dept. head C-25 Adequate inventory mgmt C-26 Prior to procuring items to be stored in warehouse, purchasing determines "JIT" delivery not available C-27 Surplus scrap is discarded C-28 City-wide inventory system enables dept to determine if items are in stock prior to purchasing items C-29 Proper segregation of duties exist C-30 Maintain electronic library to assist depts preparing specs, proposals, & contracts C-31 Use laser printers to print infrequently used forms C-32 Statements from credit card companies detail items purchased and are reviewed by mgmt C-33 Credit card program eliminates need to raise petty cash limit C-34 Perform post audits C-35 Council resolution allows City Mgr to approve purchases when the Council is absent C-36 All open POs are reviewed and approved by Central Procurement Mgr. C-37 Request for additions to open POs are reviewed & approved by dept heads C-38 Purchasing requires a justification memo with request for addition to open purchase order C-39 All additional encumbrances are approved by Purchasing Division C-40 Dept. staff reviews open PO document prior to placing order to ensure item authorized C-41 Purch. Div. staff reviews the report which shows prior year usage C-42 Purch. Division maintains vendor files in alphabetical order C-43 Purch. Div. buyers review vendor requests to do business with the City C-44 City has vendor disbarment procedures C-45 Purch. Div. will not use known problem vendors C-46 Non-performing vendors are not paid C-47 Receiving dept. staff compares packing slip with open POs C-48 Dept. staff who receives items gives packing slips to dept. accounting staff C-49 Dept. accounting staff ticklerizes invoice due date C-50 Dept. accounting staff gives priority to invoices with early payment discounts C-51 Dept. accounting staff compares invoice with open PO C-52 Dept. accounting staff compares packing slip with invoice before pymt process C-53 Purch. Div. buyer is responsible for a specific commodity & is able to notice split requests C-54 Dept. staff properly completes purchase requisitions C-55 FMS has procurement history by commodity code by vendor C-56 When lowest price not selected, Mgr ensures selection is reasonable & adequately documented C-57 Receiving dept staff compares packing slip with receiving document C-58 Receiving documents are forwarded by depts so the items can be "received" in FMS C-59 EPOs are approved & logged by Purchasing prior to procurement C-60 All payments processed for EPOs must be approved by Purchasing before payment processing C-61 Buyer reviews purchase requisition and ensures they are complete & specific
OPEN PURCHASE ORDERS - COMPLIANCE                                                                                                                          
T-1 Purchasing issues open POs >$5,000 without obtaining at least 3 quotes, whenever practicable A A   P P P P                   P P                                   A                                                  
T-2 Departments make a single purchase >$20,000 under an open PO. A P A P A P     P     A A       P P                     A                                                                
T-3 Purchasing issues open POs >$75,000 without obtaining Council approval. A A   P A P     P               P P                     A           A A                                                  
T-4 Departments make an addition to an open PO which brings the cumulative total amount of the open PO >$75,000 without obtaining Council approval. A A   P A P     P               P P                     A               A A A                                            
T-5 Purchases between $20,000 and $75,000 are not reported to the City Council on a quarterly basis. A A   P   A     P                 P                                   A                                                  
T-6 Departments authorize open purchase orders when conditions for using them have not been met. A A A P   P                     P P                                                                                      
OPEN PURCHASE ORDERS - AUTHORIZATION PROCESS                                                                                                                          
T-7 Purchasing issues open POs for requisitions that were not properly authorized A   A                                                                                                                    
T-8 Unauthorized users (i.e. from the department, from other departments) charge items against an open PO. A P   P A P               P P                                                                 ?       ?                  
T-9 Departments order unauthorized items under open POs. A A                                                                           A                     P                    
OPEN PURCHASE ORDERS - SELECTION PROCESS                                                                                                                          
T-10 Open POs are not processed efficiently. A P       P P   P   P A A     A P P                                                                                      
T-11 Purchasing does not process open purchase orders in a timely manner. A                     A A     A                                                                           A              
T-12 City does not obtain best price because Department does not have sufficient information to properly analyze procurement history (i.e. monitoring usage of items or services. Vendors who have monitored the City's usage of items and services). A P       P             A P                                                     A                                        
T-13 The City loses volume discounts because open POs from different departments are not combined. A A   P   P     P     A A                                                                                                
T-14 Vendor selection is not properly justified. A A   P   P P           A     A                                                                               A          
T-15 A vendor list is not maintained and categorized to solicit responsible and responsive competition in each commodity area. A P         P P                                                                   A A P                                  
T-16 Purchasing uses problem vendors repeatedly. A P   P   P P P   P     A                                                             P A                                
T-17 The City is not adequately protected when a vendor does not perform. Open PO agreements do not provide the City with sufficient rights to ensure satisfactory vendor performance.                   P?                                                                       A                              
OPEN PURCHASE ORDERS - RECEIVING PROCESS                                                                                                                          
T-18 Items that do not meet quality standards are received.                                                                                             A                            
STANDARD PURCHASE ORDERS - COMPLIANCE                                                                                                                          
T-19 Purchasing issues purchase orders between $5,000 and $20,000 without obtaining at least 3 quotes. A A   P P P P                   P P                                   A                                                  
T-20 Purchasing makes a purchase >$20,000 without using the formal bid process. A A                                                                   A                                 A                
STANDARD PURCHASE ORDERS - REQUISITION PROCESS                                                                                                                          
T-21 Purchasing Division issues inappropriate items due to unclear or incomplete requisitions. A   A                                                                                                                   A
STANDARD PURCHASE ORDER - AUTHORIZATION PROCESS                                                                                                                          
T-22 Purchasing issues purchase orders for requisitions that were not authorized by department head or authorized designee. A A A P A P                                                                                                              
STANDARD PURCHASE ORDER - SELECTION PROCESS                                                                                                                          
T-23 Purchase orders are not processed efficiently A P       P P   P   P A A     A P P                                                                                      
T-24 Purchasing does not process purchase orders in a timely manner. A                     A A     A                                                                           A              
T-25 City does not obtain best price because management does not have sufficient information to properly analyze procurement history. A P       P             A                                                                                   A            
T-26 The City loses volume discounts because purchases from different departments are not combined. A A   P   P     P     A A           P                                                                                    
T-27 Vendor selection is not properly justified. A P   P   P P           A     A                                                                               A          
T-28 A vendor list is not maintained and categorized to solicit responsible and responsive competition in each commodity area. A P         P P                                                                   A A P                                  
T-29 Purchasing uses problem vendors repeatedly. A P   P   P P P   P     A                                                             P A                                
STANDARD PURCHASE ORDER - RECEIVING PROCESS                                                                                                                          
T-30 Items that do not meet quality standards are received.                                                                                                                 A        
FORMAL BID - SELECTION PROCESS                                                                                                                          
T-31 The City does not obtain best value because the Code requires selection of lowest responsible and responsive bidder. A                                                         P                                                              
T-32 Formal bid process is not cost effective.                                                                                                                          
T-33 The City Manager or Council must reject bids because of specification irregularities A P                                                                                                                      
CREDIT CARD PROGRAM                                                                                                                          
T-34 Controls and procedures over the credit card program are not adequate, reasonable and cost beneficial.                                                               PENDING A P                                                      
T-35 Credit card purchases are not properly budgeted and purchases are not paid promptly.                                                                                                                          
EMERGENCY PURCHASE ORDERS                                                                                                                          
T-36 Emergency Purchase Orders (EPOs)are used in situations that do not qualify as emergencies (as defined in the purchasing manual). A A A P                                                                                                             A A  
WAREHOUSE                                                                                                                          
T-37 Warehouse space is not fully utilized.                                                 P P P P                                                                  
PURCHASE ORDER PAYMENT PROCESSING                                                                                                                          
T-38 Inappropriate payments are made.                                               A                                                       ?           A      
T-39 Departments do not process invoices in a timely manner. A P                                   P P P P                                                 ? ? ?                      
FORMS MANAGEMENT                                                                                                                          
T-40 The City does not use current technology to improve the efficiency of forms management and printing needs.                 P                                           P                                                            

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