Risk Matrix

Procurement Process
"A" = Actual Control "P" = Proposed Control
CONTROLS C-1
THREATS Employees properly
trained

OPEN PURCHASE ORDERS - COMPLIANCE

T-1 Purchasing issues open POs
>$5,000 without obtaining at least 3 quotes, whenever practicable A
T-2 Departments make a single purchase
>$20,000 under an open PO. A
T-3 Purchasing issues open POs
>$75,000 without obtaining Council approval. A
T-4 Departments make an addition to an open PO which brings the cumulative
total amount of the open PO A
>$75,000 without obtaining Council approval.
T-5 Purchases between $20,000 and $75,000 are not reported to the City
Council on a quarterly basis. A
T-6 Departments authorize open purchase orders when conditions for using
them have not been met. A
OPEN PURCHASE ORDERS - AUTHORIZATION PROCESS

T-7 Purchasing issues open POs for requisitions that were not properly
authorized A
T-8 Unauthorized users (i.e. from the department, from other departments)
charge items against an open PO. A
T-9 Departments order unauthorized items under open POs. A
OPEN PURCHASE ORDERS - SELECTION PROCESS
T-10 Open POs are not processed efficiently. A
T-11 Purchasing does not process open purchase orders in a timely manner.
A
T-12 City does not obtain best price because Department does not have
sufficient information to properly analyze procurement history (i.e. monitoring
usage of items or services. Vendors who have monitored the City's usage of A
items and services).
T-13 The City loses volume discounts because open POs from different
departments are not combined. A
T-14 Vendor selection is not properly justified. A
T-15 A vendor list is not maintained and categorized to solicit responsible and
responsive competition in each commodity area. A
T-16 Purchasing uses problem vendors repeatedly. A
T-17 The City is not adequately protected when a vendor does not perform.
Open PO agreements do not provide the City with sufficient rights to ensure
satisfactory vendor performance.
OPEN PURCHASE ORDERS - RECEIVING PROCESS
T-18 Items that do not meet quality standards are received.
STANDARD PURCHASE ORDERS - COMPLIANCE
T-19 Purchasing issues purchase orders between
$5,000 and A
$20,000 without obtaining at least 3 quotes.
T-20 Purchasing makes a purchase
>$20,000 without using the formal bid process. A
STANDARD PURCHASE ORDERS - REQUISITION PROCESS

T-21 Purchasing Division issues inappropriate items due to unclear or

incomplete requisitions. A
STANDARD PURCHASE ORDER - AUTHORIZATION PROCESS

T-22 Purchasing issues purchase orders for requisitions that were not authorized
by department head or authorized designee. A
STANDARD PURCHASE ORDER - SELECTION PROCESS

T-23 Purchase orders are not processed efficiently A

T-24 Purchasing does not process purchase orders in a timely manner.
A
T-25 City does not obtain best price because management does not have
sufficient information to properly analyze procurement history. A

T-26 The City loses volume discounts because purchases from different
departments are not combined. A
T-27 Vendor selection is not properly justified. A
T-28 A vendor list is not maintained and categorized to solicit responsible and
responsive competition in each commodity area. A
T-29 Purchasing uses problem vendors repeatedly. A
STANDARD PURCHASE ORDER - RECEIVING PROCESS

T-30 Items that do not meet quality standards are received.

FORMAL BID -
SELECTION PROCESS
T-31 The City does not obtain best value because the Code requires selection of
lowest responsible and responsive bidder. A
T-32 Formal bid process is not cost effective.
T-33 The City Manager or Council must reject bids because of specification
irregularities A
CREDIT CARD PROGRAM
T-34 Controls and procedures over the credit card program are not adequate,
reasonable and cost beneficial.
T-35 Credit card purchases are not properly budgeted and purchases are not paid
promptly.
EMERGENCY PURCHASE ORDERS
T-36 Emergency Purchase Orders (EPOs)are used in situations that do not
qualify as emergencies (as defined in the purchasing manual). A

WAREHOUSE
T-37 Warehouse space is not fully utilized.
PURCHASE ORDER PAYMENT PROCESSING
T-38 Inappropriate payments are made.
T-39 Departments do not process invoices in a timely manner. A
FORMS MANAGEMENT
T-40 The City does not use current technology to improve the efficiency of
forms management and printing needs.
 C-2 C-3 C-4 C-5
Policies and PO's are reviewed and Procedures exist to System controls are in
procedures exist and approved by dept approve PO place
are documented head or designee violiations

A P P

P A P A

A P A

A P A

A P

A A P

P P A
A

A P
A P
P
P P

A P P

A A P A

A P
P P
P
P P
P

A A P

P
 C-6 C-7 C-8 C-9
Management info Approved vendor list Purchasing requests Processes are
produced on a regular is maintained on-line feedback from automated
basis departments about electronically to the
problem vendors extent possible

P P

P P

P P

P P

A P

P P P

P P
P P
 P P
P P P

P P

P P P

P P
P P
P P
P P P
P
 C-10 C-11 C-12 C-13
Terms and conditions Electronic data PO's evaluated on Buyer assignment are
on agreements give interchange with city-wide basis and commodity based
sufficient rights vendors is used combined to extent
possible

A A

P A A
A A

A A
A
P A

P?

P A A
A A

A A
A

P A
 C-14 C-15 C-16 C-17
Open PO contracts Users must have Departments can Performance objective
are monitored on a proper open PO indicate suggestions clearly defined and
monthly basis by numbers or vendors for vendors on system tracks
Department will not accept the purchase requisitions appropriate
order information

P P

A P
A

A
 P

A P
A

A
 C-18
Employee
performance is
evaluated on regular
basis

P
P

P
T-15 A vendor list
is not maintained and categorized to solicit responsible and responsive competition in
each commodity area. A
T-16 Purchasing uses problem vendors repeatedly. A
T-17 The City is not adequately protected when a vendor does not perform. Open PO
agreements do not provide the City with sufficient rights to ensure satisfactory vendor
performance.
OPEN PURCHASE ORDERS - RECEIVING PROCESS
T-18 Items that do not meet quality standards are received.
STANDARD PURCHASE ORDERS - COMPLIANCE
T-19 Purchasing issues purchase orders between
$5,000 and
$20,000 without obtaining at least 3 quotes. A
T-20 Purchasing makes a purchase
>$20,000 without using the formal bid process. A
STANDARD PURCHASE ORDERS - REQUISITION PROCESS
T-21 Purchasing Division issues inappropriate items due to unclear or incomplete
requisitions. A
STANDARD PURCHASE ORDER - AUTHORIZATION PROCESS
T-22 Purchasing issues purchase orders for requisitions that were not authorized by
department head or authorized designee. A
STANDARD PURCHASE ORDER - SELECTION PROCESS
T-23 Purchase orders are not processed efficiently A
T-24 Purchasing does not process purchase orders in a timely manner. A
T-25 City does not obtain best price because management does not have sufficient
information to properly analyze procurement history. A
T-26 The City loses volume discounts because purchases from different departments are
not combined. A
T-27 Vendor selection is not properly justified. A
T-28 A vendor list is not maintained and categorized to solicit responsible and responsive
competition in each commodity area. A
T-29 Purchasing uses problem vendors repeatedly. A
STANDARD PURCHASE ORDER - RECEIVING PROCESS
T-30 Items that do not meet quality standards are received.
FORMAL BID -
SELECTION PROCESS
T-31 The City does not obtain best value because the Code requires selection of lowest
responsible
T-32 Formaland responsive
bid process bidder.
is not cost effective.
T-33 The City Manager or Council must reject bids because of specification irregularities
CREDIT CARD PROGRAM
T-34 Controls and procedures over the credit card program are not adequate,
reasonable
T-35 and cost
Credit card beneficial.
purchases are not properly budgeted and purchases are not paid
promptly.
EMERGENCY PURCHASE ORDERS
T-36 Emergency Purchase Orders (EPOs)are used in situations that do not qualify as
emergencies (as defined in the purchasing manual).
WAREHOUSE
T-37 Warehouse space is not fully utilized.
PURCHASE ORDER PAYMENT PROCESSING
T-38 Inappropriate payments are made.
T-39 Departments do not process invoices in a timely manner.
FORMS MANAGEMENT
T-40 The City does not use current technology to improve the efficiency of forms
management and
printing needs.
P P P
P P P P P P A

P?

A P P P P P P

A A P A P

P P P P P A A A P P
A A A

P P A

A P P P A A
P P P P A A

P P P
P P P P P P A
SELECTION PROCESS
T-31 The City does not obtain best value because the Code requires selection of lowest responsible and re
T-32 Formal bid process is not cost effective.
T-33 The City Manager or Council must reject bids because of specification irregularities
CREDIT CARD PROGRAM
T-34 Controls and procedures over the credit card program are not adequate, reasonable and cost benefic
T-35 Credit card purchases are not properly budgeted and purchases are not paid promptly.
EMERGENCY PURCHASE ORDERS
T-36 Emergency Purchase Orders (EPOs)are used in situations that do not qualify as emergencies (as def
WAREHOUSE
T-37 Warehouse space is not fully utilized.
PURCHASE ORDER PAYMENT PROCESSING
T-38 Inappropriate payments are made.
T-39 Departments do not process invoices in a timely manner.
FORMS MANAGEMENT
T-40 The City does not use current technology to improve the efficiency of forms management and
printing needs.
P

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