Intermediate level · Module 4: Financial Controls and Fraud Prevention · Lesson 2 of 3
Authorisation and Procurement Controls
Ensure money is spent only on approved purposes at fair prices.
In this lesson you will
- Set authorisation limits
- Apply simple procurement controls
Key concepts
authorisation limitsquotationspurchase ordersgoods received
The lesson
Authorisation limits state who can approve what: a manager up to a set amount, the director above it, the board for very large purchases.
Procurement controls include written quotations from several suppliers above a threshold, purchase orders and a goods received note before payment.
Match the purchase order, goods received note and invoice before paying — the 'three-way match'.
Step by step
- Draft authorisation limits.
- Set quotation thresholds.
- Design a simple purchase order and goods received note.
- Test a three-way match.
Practice activity
Write authorisation and procurement procedures for the NGO.
Expected result: Practical procedures with limits, thresholds and matching.
Check your understanding
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What is a three-way match?
Show answer
Matching the purchase order, goods received note and invoice before paying.
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Why require several quotations?
Show answer
To obtain fair prices and avoid favouritism.
Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.