8. Purchase Goods

  1. Charles K. Coe

Published Online: 9 MAR 2012

DOI: 10.1002/9781118386064.ch8

Nonprofit Financial Management: A Practical Guide

Nonprofit Financial Management: A Practical Guide

How to Cite

Coe, C. K. (2011) Purchase Goods, in Nonprofit Financial Management: A Practical Guide, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118386064.ch8

Publication History

  1. Published Online: 9 MAR 2012
  2. Published Print: 13 JUN 2011

ISBN Information

Print ISBN: 9781118011324

Online ISBN: 9781118386064

SEARCH

Keywords:

  • CFO;
  • purchase order;
  • purchasing policy

Summary

The CFO is normally responsible for the purchasing system, which has two principal features: (1) a Board-adopted purchasing policy and (2) a procedures manual that covers the best practices. The governing board should adopt a purchasing policy addressing the best practices. After adopting a purchasing policy, the next step is to order goods, which entails: preparing a specification; preparing a requisition; taking quotations or bids; and approving a purchase orders (P.O.s) and contracts. Goods are received either at a central location or at the program that ordered the good. Goods should be very carefully inspected to ensure they meet the specification. The vendor next sends an invoice to the CFO. To protect against fraud and theft, the duties discussed in the chapter should be separated among personnel.

Controlled Vocabulary Terms

Chief financial officer; Purchase and decision implementation; purchase order