CPFO – Procurement UPDATED Exam
Questions and CORRECT Answers
The strategic purpose of procurement - CORRECT ANSWER - Compliance w/ law
Provide operating G&S
Risk reduction
Promote fairness
Maintain public trust
Promote overall goal of organization
Fairness in vendor selection - CORRECT ANSWER - MBE/WBE. Find balance
What is procurement authority - CORRECT ANSWER - Power to award or approve the
award of legally binding procurement
Approval req & process - CORRECT ANSWER - Different levels of cost require different
levels of approval
Delegated purchase authority - CORRECT ANSWER - Authority based on price
Legal oversight of procurement policies - CORRECT ANSWER - Those designated in
compliance w/ govt procurement policies
Potential conflicts of interest - CORRECT ANSWER - Equality vs equity
Equality - CORRECT ANSWER - Means ppl should be treated the same by public policy
to remove barriers to the individual's success. It is commonly associated w/ giving people
equality of opportunity
, Equity - CORRECT ANSWER - Means people should be treated uniquely by public
policy to compensate for different circumstances & consequent need for help from government.
Equity is commonly associated with equality in outcomes
Encumbrance - CORRECT ANSWER - Earmark the funds for purchase
Requisitions ( - CORRECT ANSWER - Request submitted to encumber funds for a
purchase
Also is considered a budgeting tool
Documenting internal approvals to purchase G&S - CORRECT ANSWER - End user must
provide documentation for price for requisition req
Provides transparency
Purchase order - CORRECT ANSWER - Used to communicate with vendors
Identifies terms of purchase
Assign/award vendor and confirms order
Sets not-to-exceed price
Serves as contract
Commits funds in budget (encumbers)
Justification of single source vendor - CORRECT ANSWER - Only one supplier available
Alternatives to POs - CORRECT ANSWER - Pcards
Contracts
Blanket PO (BPO) - CORRECT ANSWER - Open PO of set amount for routine purchases
Pcards - CORRECT ANSWER - Provides convenient purchases
Questions and CORRECT Answers
The strategic purpose of procurement - CORRECT ANSWER - Compliance w/ law
Provide operating G&S
Risk reduction
Promote fairness
Maintain public trust
Promote overall goal of organization
Fairness in vendor selection - CORRECT ANSWER - MBE/WBE. Find balance
What is procurement authority - CORRECT ANSWER - Power to award or approve the
award of legally binding procurement
Approval req & process - CORRECT ANSWER - Different levels of cost require different
levels of approval
Delegated purchase authority - CORRECT ANSWER - Authority based on price
Legal oversight of procurement policies - CORRECT ANSWER - Those designated in
compliance w/ govt procurement policies
Potential conflicts of interest - CORRECT ANSWER - Equality vs equity
Equality - CORRECT ANSWER - Means ppl should be treated the same by public policy
to remove barriers to the individual's success. It is commonly associated w/ giving people
equality of opportunity
, Equity - CORRECT ANSWER - Means people should be treated uniquely by public
policy to compensate for different circumstances & consequent need for help from government.
Equity is commonly associated with equality in outcomes
Encumbrance - CORRECT ANSWER - Earmark the funds for purchase
Requisitions ( - CORRECT ANSWER - Request submitted to encumber funds for a
purchase
Also is considered a budgeting tool
Documenting internal approvals to purchase G&S - CORRECT ANSWER - End user must
provide documentation for price for requisition req
Provides transparency
Purchase order - CORRECT ANSWER - Used to communicate with vendors
Identifies terms of purchase
Assign/award vendor and confirms order
Sets not-to-exceed price
Serves as contract
Commits funds in budget (encumbers)
Justification of single source vendor - CORRECT ANSWER - Only one supplier available
Alternatives to POs - CORRECT ANSWER - Pcards
Contracts
Blanket PO (BPO) - CORRECT ANSWER - Open PO of set amount for routine purchases
Pcards - CORRECT ANSWER - Provides convenient purchases
