Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
2 Procurement
2.1 Introduction
Procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quality and quantity, at the right
time, in the right place and from the right source for the direct benefit or use of corporations, individuals, or even governments, generally via a
contract, or it can be the same way selection for human resource. Simple procurement may involve nothing more than repeat purchasing.
Complex procurement could involve finding long term partners – or even 'co-destiny' suppliers that might fundamentally commit one organization
to another. Procurement can refer to buying, outsourcing, etc of any resources. Almost all purchasing decisions include factors such as delivery
and handling, marginal benefit, and price fluctuations. Procurement generally involves making buying decisions under conditions of scarcity. If
good data is available, it is good practice to make use of economic analysis methods such as cost-benefit analysis or cost-utility analysis.
Fundamental Principles of Procurement
• In all procurement procedures, transparency, competitiveness and fairness must be ensured, to secure best value for money
• All procurements shall be made through tenders, unless exempted under these rules or under specific orders
• Invitation of competitive bids shall be open to all participants, unless otherwise specified under the rules or specially restricted by the
Competent Authority
• The specifications in terms of quality, type etc. as also quantity of goods to be procured, should be clearly spelt out keeping in view the
specific needs of the procuring organizations. The specifications so worked out should meet the basic needs of the organization without
including superfluous and non-essential features, which may result in unwanted expenditure. Care should also be taken to avoid inventory
carrying cost
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