MCPPO Contracting Overview-Public
Purchasing Principles 2025/2026 Exam
Questions and Answers | 100% Pass
Public Purchasing Objectives: - 🧠ANSWER ✔✔obtain the materials,
services and facilities required by public organizations, when and where the
materials, services, and facilities are needed, at the best price reasonably
available through open, fair competition, at a reasonable cost.
Price = ? - 🧠ANSWER ✔✔contract amount
Cost =? - 🧠ANSWER ✔✔What's paid to vendor and other cost associated
e.g., soft costs -time, research, etc., bid process, contract administration.
Key control activities related to procurement are: - 🧠ANSWER ✔✔#1-
Establishing authority for approval of transactions
#2-Estalishing responsibility for executing transactions
,#3-Segregation of duties
#4-Control of Access to Assets and Records
#5-Monitoring
#1-Establishing authority for approval of transactions - 🧠ANSWER ✔✔the
organization should clearly establish and document which position within
the organization have the authority to approve specific transactions.
#2-Estalishing responsibility for executing transactions? - 🧠ANSWER
✔✔The organization should clearly establish and document which positions
within the organization are responsible for carrying out specifically defined
transactions and should provide a detailed description of the procedures for
carrying out and documenting each type of transaction
#3-Segregation of duties? - 🧠ANSWER ✔✔segregation of duties means
that no employee should be in a position to carry out an improper
transaction and then conceal it. In other words, a single individual should
not have the ability to authorize a transaction, carry out the transaction,
records the transaction, maintain custody of the assets resulting for the
transaction, and control the books and records relating to the transaction.
For example, in the context of procurement of supplies, no single employee
, should be able to authorize a purchase, issue a purchase order, verify
receipt of the ordered good, and approve payment of the resulting invoices.
Vesting absolute control in one person invites embezzlement, theft and
fraud, and collusion. These duties should be segregated by assigning them
to several individuals.
#4-Control of Access to Assets and Records? - 🧠ANSWER ✔✔Reasonable
care should be taken to maintain physical security over assets. The term
"assets" refers generally to items, equipment, and furnishing that are the
property of the public organization. Inventories should generally be
maintained in locked storage areas accessible only to designated
individuals. The organization should establish a sign-out system to keep
track of value items such as tool that are needed temporarily by
employees. items such as laptop computers can be assigned on a long-
term basis to employees who need them, and a designated individual
should be responsible for maintaining records pertaining to these
assignments. the internal control system should ensure that employees are
held accountable for valuable equipment that they need to use in
connection with their jobs. Controlling access to records is also very
important. specific positions should have responsibility and physical control
over designated categories of records. Similarly, access to computer
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Purchasing Principles 2025/2026 Exam
Questions and Answers | 100% Pass
Public Purchasing Objectives: - 🧠ANSWER ✔✔obtain the materials,
services and facilities required by public organizations, when and where the
materials, services, and facilities are needed, at the best price reasonably
available through open, fair competition, at a reasonable cost.
Price = ? - 🧠ANSWER ✔✔contract amount
Cost =? - 🧠ANSWER ✔✔What's paid to vendor and other cost associated
e.g., soft costs -time, research, etc., bid process, contract administration.
Key control activities related to procurement are: - 🧠ANSWER ✔✔#1-
Establishing authority for approval of transactions
#2-Estalishing responsibility for executing transactions
,#3-Segregation of duties
#4-Control of Access to Assets and Records
#5-Monitoring
#1-Establishing authority for approval of transactions - 🧠ANSWER ✔✔the
organization should clearly establish and document which position within
the organization have the authority to approve specific transactions.
#2-Estalishing responsibility for executing transactions? - 🧠ANSWER
✔✔The organization should clearly establish and document which positions
within the organization are responsible for carrying out specifically defined
transactions and should provide a detailed description of the procedures for
carrying out and documenting each type of transaction
#3-Segregation of duties? - 🧠ANSWER ✔✔segregation of duties means
that no employee should be in a position to carry out an improper
transaction and then conceal it. In other words, a single individual should
not have the ability to authorize a transaction, carry out the transaction,
records the transaction, maintain custody of the assets resulting for the
transaction, and control the books and records relating to the transaction.
For example, in the context of procurement of supplies, no single employee
, should be able to authorize a purchase, issue a purchase order, verify
receipt of the ordered good, and approve payment of the resulting invoices.
Vesting absolute control in one person invites embezzlement, theft and
fraud, and collusion. These duties should be segregated by assigning them
to several individuals.
#4-Control of Access to Assets and Records? - 🧠ANSWER ✔✔Reasonable
care should be taken to maintain physical security over assets. The term
"assets" refers generally to items, equipment, and furnishing that are the
property of the public organization. Inventories should generally be
maintained in locked storage areas accessible only to designated
individuals. The organization should establish a sign-out system to keep
track of value items such as tool that are needed temporarily by
employees. items such as laptop computers can be assigned on a long-
term basis to employees who need them, and a designated individual
should be responsible for maintaining records pertaining to these
assignments. the internal control system should ensure that employees are
held accountable for valuable equipment that they need to use in
connection with their jobs. Controlling access to records is also very
important. specific positions should have responsibility and physical control
over designated categories of records. Similarly, access to computer
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
