| Action | Risk | Solutions |
|---|---|---|
| Payment process not managed |
- Late payments leading to complaints of not paying suppliers promptly and payment of financial penalties as permitted under legislation - Payments made for goods or services not received - Payment made to the wrong supplier - Payments are not matched to correct purchase order leading to double accounting - Loss of prompt payment discounts |
- Ensure staff involved with recording goods received documentation and authorising payments are aware of need to do this promptly - Ensure staff are aware of the importance of carefully checking deliveries for correctness and taking appropriate action where there are errors on problems - Ensure staff are aware of the need to identify suppliers accurately when identifying suppliers (on orders and invoices authorisations) - Where purchase order processing is computerised, or order details are uploading into the financial system and the information is used to prepare commitment accounting information – ensure that staff are aware of the importance of accurately quoting order numbers and matching goods received documentation and invoices back to the correct order number - Ensure staff involved with recording goods received documentation and authorising payments are aware of need to do this promptly |
| Inadequate separation of duties | - Staff open to challenge of inappropriate behaviour | - Ensure different staff are involved at the different purchasing phases |
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