Procurement for NGOs
Every organization whether non- governmental organization or nor buy goods and services to implement projects or its activities within the organization in other to ensure effective use of the funds, in my years of experience working with small NGO, they got into procurement of goods and services without proper process and procedure in fact some of them did not have procurement policy and where there is no rules to guide the processes abuse is inevitable
Note also organization should design procurement procedures that suit its own circumstance for instance the number of persons involve, to support the process, level of risk involve and the kind of purchase needed by the organization differ in every organizations.
THREE ASPECT TO BE CONSIDER DURING PROCUREMENT
Procurement Process: this shows the steps and rule to be followed in ordering, receiving and payment for the goods and service received
Process differ from one organization to another and also type of service and goods involve, small NGO should note that the higher the value of goods and services, the more risk and more process or steps need to be followed
The people shows number of persons involve, that initiate, check and authorized every stage of the procurement, the procurement process principles is builds on the segregation of duties the higher the value and risk, the more persons should be involved to protect against fraudulent activity
The paper work each steps of the procurement process there is a paper work to be done and supporting documentations
Let’s look at a simplified procurement process:
Prepare specification and check budget: Specify what we need and check our budget.
Prepare purchase requisition: Formally request the goods or services.
Check and authorize purchase requisition: Make sure the purchase is necessary and budgeted.
Obtain quotations: Get price quotes from reputable suppliers.
Select supplier: Choose the best supplier based on price, quality, and terms.
Issue purchase order (PO): Send the authorized PO to the supplier.
Receive goods from supplier: Confirm receipt and file with the PO.
Receive and check invoice: Verify the invoice matches the order and terms.
Prepare and authorize payment authority: Prepare payment forms, check details, and authorize payment.
Pay supplier invoice: Pay the supplier as per the terms.
Enter payment into cashbook: Record the payment in our books of account.
Remember, organization whether small NGO its common practice and better to separate duties between different team members to strengthen the process and minimize the risk of fraud. That’s the essence of procurement procedures – keeping things transparent, efficient, and accountable.