5 Missed Steps in the Nonprofit Procurement Process: See How We Assisted One of Our Clients

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​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: 

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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

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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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