Procurement

Question 1 of 60.

What should be done if the quantity of goods received is less than what was ordered?

 All goods must be shipped back to the supplier

 Pay for only the items received after the contract has been adjusted
 Ensure subcontractors are compensated for completed work
 Ensure goods/service are approved by a logistics coordinator

Question 2 of 60.

Which action by a staff member increases the potential for fraud?

 Assigning computer permissions to team members only

 Making expensive purchases beyond what they can afford with their income level. Obtaining a
bid from company owned by the government
 Hiring a third-party to audit payment transactions

Question 3 of 60.

Which of the following examples illustrates competitive procurement?

 A rental company offers a procurement officer two sizes of tents to rent

 A rental company provides two procurement officers with different pricing for the same style of
tent
 A rental company provides a procurement officer different pricing for two styles of tents
 A procurement officer obtains price quotes for renting tents from three rental companies

Question 4 of 60.

Which action will help an organization ensure a more transparent procurement process?

 Establishing a feedback and complaints mechanism for staff, suppliers, and the community.
 Establishing procedures that ensure no one is prevented from obtaining their supplies
 Defining clear expectations for its distribution staff
 Conducting audits of policies and procedures to ensure they meet applicable laws

Question 5 of 60.

In a Request for Proposal (RFP), where would you find information related to tasks, activities,
responsibilities, and deliverables?

 Scope of Works (SOW)

 Technical specifications
 Note to File
 Declaration of Impartiality

Question 6 of 60.
Which situation represents a conflict of interest?

 Vehicle manager monitoring fuel usage and purchasing fuel

 Payroll manager approves employee cheques/checks and the Chief Executive Officer signs them
 Third-party auditor conducting monthly reviews of purchasing contracts
 Procurement officer and a potential supplier serving on the same nonprofit board

Question 7 of 60.

At which stage does an organization officially take ownership of ordered goods?

 Receipt
 Inspection
 Acceptance
 Rejection

Question 8 of 60.

What is the purpose of a Note to File (NTF)?

 Provide the scope of work a supplier must perform

 Explain unintentional deviation from the organizational procurement process
 List the technical specifications of needed items
 Identify lots that may be grouped to reduce individual purchases

Question 9 of 60.

Which of the following situations will require a consultant contract?

 Training sessions conducted by a security expert

 Obtaining office space for a 12-month period
 Purchasing a dozen portable water pumps
 Purchasing fuel from a local supplier for company trucks

Question 10 of 60.

What should be done with rejected items that a supplier cannot pick-up immediately?

 Ship the items back that day

 Leave the items where they are
 Place the items in a separate area

Question 11 of 60.

A humanitarian organization contracted a local automotive repair shop to perform maintenance on its
cars for the duration of their stay. This is an example of which type of contract?

 Supply
 Purchase Order
 Framework/Preferred Master Supplier Agreement
 Rental/Leasing
Question 12 of 60.

A warehouse manager submits a purchase request for spare tires for a forklift. What role is this in the
procurement process?

 Originator
 Budget holder
 Finance manager
 Operations manager

Question 13 of 60.

What is a performance bond?

 Payment made by an organization to cover a supplier's up-front expenses

 Payment made in installments for goods/services provided at various stages
 Refundable payment/guarantee made by a supplier as a promise of quality/completion
 Financial sanction for failing to carry out the terms of a contract

Question 14 of 60.

The time it took for authorized personnel to approve a purchase request and then to sign the contract
with the supplier was 30 days. This is an example of which type of time?

 Lead Time
 Time to Award
 Supplier Delivery Time

Question 15 of 60.

Which document provides potential suppliers with information on your organization's bidding process?

 Supporting Document Matrix (SDM)

 Request for Quotations (RFQ)
 Purchase Request Form (PR)
 Action Priority Matrix (APM)

Question 16 of 60.

Who is responsible to provide all details required about an item that needs to be purchased?

 Finance Office
 Originator (Requestor)
 Procurement Officer
 Supplier

Question 17 of 60.

Which documentation serves as evidence supporting the proposed quality of a supplier's bid?
  Compare the catalog photos of pumps to photos of the installed pumps
 Compare the catalog item numbers of the pumps to be installed
 Signed and dated purchase orders for the water pumps
 Signed and dated minutes from a meeting discussing the proposed bids

Question 18 of 60.

What is the minimum number of voting individuals that can comprise a procurement committee?

 2 staff from two different departments

 3 staff from two different departments
 3 staff from one department
 5 staff from two different departments

Question 19 of 60.

A supplier estimates it will take a minimum of 60 days from the time the contract is signed to fill the
order. This is an example of which type of time?

 Lead Time
 Time to Award
 Supplier Delivery Time

Question 20 of 60.

How should an organization's procurement manager respond to a request for purchasing prescribed
pharmaceutical items?

 Request management have a special place to store such pharmaceutical items

 Explain that the request is denied as the item may lead to corruption activities
 Ask the requestor to check if such procurement may need special donor/organizational approval


Question 21 of 60.

What is the purpose of procurement thresholds?

 Establish a series of organizational detective controls

 Establish the acquisition method for differently priced goods
 Establish a series of organizational preventative controls
 Establish the maximum amount an organization can spend on certain goods

Question 22 of 60.

How often is it recommended to review available suppliers for Framework/Preferred Master Supplier
Agreements to ensure cost effectiveness?
  Every month
 Every 6 months
 Every 1 years
 Every 5 years

Question 23 of 60.

Which role in the procurement process is responsible for ensuring that local purchases are in
compliance with country tax laws?

 Budget holder
 Finance manager
 Operations manager
 Procurement manager

Question 24 of 60.

A supplier agrees to reimburse the organization 10% of the total contract cost for any deliverable date
exceeded by one week. Where in a contract would you find this specification?

 Bid guarantee
 Change order
 Code of Ethics
 Penalty clause

Question 25 of 60.

In general, who is responsible for coordinating contracts?

 Community member
 Procurement Officer
 Warehouse Officer
 Donor

Question 9 of 60.

Where should a person list the amount, type, and condition of items delivered by a supplier?

 Note to File (NTF)

 Goods Received Note (GRN)
 Service Completion Report (SRN)
 Scope of Works (SOW)

Question 10 of 60.

Which responsibility is associated with the role of budget holder?

  Submitting an invoice for payment
 Requesting the purchase of a specific item
 Obtaining bids from approved suppliers
 Verifying a purchase request is permitted

Question 11 of 60.

Which situation represents a detective measurement/control?

 Ensuring the amounts on a purchase request, purchase order, and invoice are the same
 Implement a two-person system for determining a list of approved suppliers
 Require computer passwords to be stronger and changed quarterly
 Establish a policy that states procurement staff cannot be related to suppliers

Question 13 of 60.

In general, for high value procurement the selection committees are assigned the responsibility of
selecting the supplier/service providers. However, there are instances when committee members may
not have the entire knowledge to make the supplier selection. What action should the committee take?

 Just make the selection decision using their current knowledge

 Consult a technical expert to provide support for making the selection
 Identify one supplier to explain technical details on all bids
 Cancel the procurement and advise the program to procure something less complicated

Question 14 of 60.

Which evidence supports the satisfactory procurement of a specific medication to treat bacterial
infections?

 Catalog listing the assorted items available for purchase

 Copies of an approved purchase order and delivery invoice
 Signed and dated purchase order for the medication
 Photographs of the unopened delivery boxes

Question 15 of 60.

What type of contract is mostly likely used to buy three desktop computers and a printer?

 Supply
 Purchase Order
 Framework/Preferred Supplier Agreement
 Rental/Leasing
Question 16 of 60.

Why is it important to publicly announce the tender?

 Demonstrate transparency and attract more competitive potential bidders

 Inform communities about ongoing procurement activities
 Encourage suppliers to read newspapers and access the internet

Question 17 of 60.

Investigating the quantity and quality of what the local wood suppliers have in stock is an example of
which part of the procurement process?

 Verifying the suitability of suppliers providing goods

 Verifying the cost and availability of required goods
 Estimating the lead time of potential suppliers
 Determining the resources needed to manage the purchase

Question 18 of 60.

What is the minimum number of quotes or proposals required in Open Tender?

 8
 5
 3
 1

Question 20 of 60.

A purchase request lists the following required item: 2 Off-the-road (OTR), all-season radial tires / size
17.5R25. This is an example of what?

 Evaluation criteria
 Payment terms
 Scope of Works (SOW)
 Technical specification

Question 22 of 60.

The educational program team has decided to build a two-story school building. What is the most
suitable way of communicating to procurement what is needed from a supplier?
  Provide verbal instruction to procurement team on the construction of school building
 Provide few photos of a similar building and ask procurement to find a contractor
 Provide procurement team, scope of work, approved bill of quantity and drawings of the
building
 Request procurement team to take part in building construction course.

Question 23 of 60.

Where in a contract would you stipulate that in the event of a war, all vehicle rental service will be
immediately suspended?

 Claims
 Product/technical specifications
 Terms of payment
 Termination

Warehousing
Question 26 of 60.

What are the four key work activities in warehouse operation?

 Purchasing, storage, issuing, distribution

 Goods receipt, storage, picking, dispatch
 Manufacturing, purchasing, delivery, receipt
 Assembling, repacking, issuing, storage

Question 27 of 60.

Which one of the following can be a constraint for warehousing and storage in fragile/conflict sensitive
areas?

 Damage through flood

 Sanitary conditions are not available
 Seizure of inventory by armed groups
 Good access to the facility

Question 28 of 60.

What is the key step in an inventory check?

 Compare the items received to the records on Goods Received Note

 Compare the physically available stock to the stock records maintained
  Verify the damaged and loss items recorded
 Verify the accuracy of all warehouse records

Question 29 of 60.

What is the primary purpose of a Goods Received Note (GRN)?

 Validate the arrival of an organization's purchase order

 Record the information of stock issuances
 Confirm the arrival of purchased materials
 Facilitate supplier payment on stock purchased

Question 30 of 60.

What are the three most important criteria for warehousing?

 Goods are protected, kept clean and on shelves

 Goods are protected, kept in separate bins, and out of direct light
 Goods are documented, protected, and accessible
 Goods are documented, kept in separate bins, and regularly checked

Question 31 of 60.

What is the guideline for the proper rotation of stock?

 Last in, first out

 First in, last out
 First in, first out

Question 32 of 60.

What should be the minimum and ideal space between different groups or stacks of materials?

 0.5m
 1m
 2m
 2.5m

Question 33 of 60.

What is the maximum height of the stacking items or boxes?

 2.5m
  3m
 4m
 4.5m

Question 34 of 60.

What is the priority when disposing of stock?

 Amount of stock in the warehouse

 Status of the stock (damaged, spoiled, etc.)
 Requirements from donor organizations
 Country of Origin of the stock

Question 35 of 60.

Which statement indicates ideal stock management within a warehouse?

 Excess stock must be available for urgent program need

 Sufficient stock is available to cover lead-time in replacement orders and prevent stock-out
 Replacement orders should only be placed when the current stock is depleted
 Blame procurement officer when a stock-out situation occurs.

Question 36 of 60.

What is doughnut stacking?

 Stacking goods to a dangerously high level

 Stacking goods with a hole in the middle
 Stacking goods in a circular pattern
 Stacking goods of diverse types on top of each other

Question 37 of 60.

What is recorded on a Stock Card?

 Name of the stock item's manufacturer

 Information of stock issuances from the warehouse
 Movement and balance of individual stock items in the warehouse
 Amount of stock available in the warehouse

Question 38 of 60.
Which of the following actions will best prevent insect/rodent infestation within a warehouse?

 Removing garbage on a regular basis

 Having spare bags and boxes available
 Recycling items when possible
 Allowing only certain food and drinks inside

Question 39 of 60.

What should be done when a discrepancy is discovered while conducting an inventory check?

 Change the records where the discrepancy exists

 Remove the excess items identified as a discrepancy
 Validate the discrepancy by checking records for mistakes and conducting a recount
 Obtain enough stock when placing replenishment orders to off-set the discrepancy

Question 40 of 60.

To effectively store and turn-over warehouse materials, which type of inventory should be cleared first?

 Damaged
 Largest
 Newest
 Oldest

Question 32 of 60.

What specific storage information may be obtained on an item's container or box?

 Whether items must be placed on shelves or pallets

 The distance items must be from the facility's ceiling
 Maximum space required between it and different items
 Maximum number of items that can be stacked

Question 34 of 60.

What is the function of a warehouse daily register?

 Record the staff working in the warehouse

 Record all activities within the warehouse
 Record vehicle movement to and from the warehouse
 Record the inventory stored in a warehouse for audit purposes

Question 38 of 60.
On which document would you record damage to items due to insects or rodents?

 Stock Request Form

 Warehouse Register
 Goods Received Note
 Daily Logbook

Question 40 of 60.

A medical aid organization is planning to help people of a country devastated by war. What should be
the primary consideration for determining the location of its medical supply warehouse?

 Security for stock and personnel

 Availability of a well-maintained access road
 Availability of vehicles such as forklifts
 Current rental costs of existing buildings

Fleet Management
Question 41 of 60.

Which of the following vehicle conditions is necessary for emergency preparedness?

 Keeping vehicles locked in all situations

 Recording all journeys in the vehicle log
 Parking vehicles so they face the direction of travel
 Assigning a specific driver to each vehicle

Question 42 of 60.

Which fuel storage practice will mitigate vehicle damage?

 Using specifically designed tanks

 Shading tanks/barrels from direct sunlight
 Displaying proper safety signage
 Keeping petrol and diesel labeled and separated

Question 43 of 60.

Which of the following vehicle scenarios indicate the potential for fraud and corruption?

 Driver receiving several excessive speed violations

 Fuel station receipt and vehicle log showing same amount
  Driver discovered to have an expired license
 Log showing disproportionate mileage

Question 44 of 60.

Which of the following selection criteria is important for ensuring vehicle versatility when operating in
many countries?

 Cost
 Color
 Dealer availability
 Fuel type

Question 45 of 60.

An organization's driver accidentally strikes a child that ran out into the street. The driver immediately
stops to verify the extent of the child's injuries. A crowd of witnesses immediately begin yelling at the
driver? What action should the organization's driver take?

 Move to a safe location and notify the authorities

 Explain that the child could not been seen
 Apologize for hitting the child with the car
 Prepare a detailed incident report

Question 46 of 60.

What is the formula for calculating a vehicle's Total Cost of Ownership (TCO)?

 Operating Costs + Disposal Value - Acquisition Cost

 Acquisition Cost + Disposal Value Operating Costs
 Acquisition Cost Operating Costs - Disposal Value
 Acquisition Cost-Operating Costs + Disposal Value

Question 47 of 60.

Which of the following actions should you AVOID doing if involved in a motor vehicle collision?

 Directing traffic on busy roadways

 Seeking medical attention for local individuals
 Informing senior management of the accident
 Admitting liability for the accident
Question 48 of 60.

Which of the following items is NOT necessary to keep in a vehicle?

 Spare tire
 First aid kit
 Blank incident reports
 Vehicle rental request

Question 49 of 60.

You are involved in a collision while driving an organizational vehicle. One of the other drivers has a
severe head injury. What immediate action should you take?

 Prepare an incident report

 Notify your organization
 Seek medical assistant
 Direct traffic to slow down

Question 50 of 60.

Which of the following is a responsibility of a vehicle manager?

 Replacing damaged or worn-out parts

 Providing basic first-aid training
 Arranging repairs for damaged vehicles
 Purchasing vehicles for the organization's fleet

Question 44 of 60.

Which of the following is an indicator of vehicle maintenance/repair corruption?

 Replacement of parts according to the maintenance schedule

 Need for repairs discovered during routine service
 The same maintenance/repairs keep occurring regularly
 Several insurance claims due to fleet accidents

Question 47 of 60.

Which situation provides justification for renting vehicles rather than purchasing them?

 Use in rocky and hilly terrain

 High incidence of stolen vehicles Excessive heat and drought conditions
 Long-term duration of use

Question 48 of 60.

What is a best practice for how long a vehicle log should be maintained?
  One year
 One month
 One week
 One day

Question 49 of 60.

Which of the following travel scenarios could potentially create a safety and security issue?

 Carrying a car jack in the trunk of your vehicle

 Leaving a backpack on the passenger side seat of your vehicle
 Using a cell phone to report an accident involving your vehicle
 Placing copies of vehicle documents in the glove box

Question 50 of 60.

An organization discovers that a commercial vehicle workshop used replacement parts not made by the
vehicle's manufacturer. How can this have been prevented?

 Avoid using service departments of vehicle rental companies

 Note the specific vehicle parts in a service contract/task order
 Conduct a daily vehicle inspection using a detailed checklist
 Physically mark all premium vehicle parts prior to service

Asset Management
Question 51 of 60.

What is the purpose of an asset tag?

 Inform staff that all items are tracked

 Identify items needing repair and/or maintenance
 Identify and link items to documentation records
 Notify transporters that items should not be removed in transit

Question 52 of 60.

What are the three key elements you need to consider when developing the definition of asset for your
organization?

 Non-consumable, acquisition cost, and useful life

 Manufacturing year, current market value, and duration of program
 List of accessories, size, and value of the item
Question 53 of 60.

What is the purpose of having an asset register?

 Ensure proper recording and tracking

 Complete the purchase process
 Make payments to suppliers
 Record general ledger entries

Question 54 of 60.

Which of the following documents is suitable to provide reassurance that the recipient (community
group, other NGO, etc.) of donated items has received full responsibility for them?

 Partnership Agreement
 Official certificate or letter of acceptance
 Asset Register
 Original specification for the asset

Question 55 of 60.

While performing a random asset verification, an asset controller discovers that a staff member does
not possess the item he was issued. What action should the asset controller should take?

 Dispose of the asset from the register

 Contact the police
 Inform the organization's management
 Purchase a replacement

Question 56 of 60.

Zaid chose to have a staff member transport a laptop computer from the organization's main office to
one of its field offices. What document should he use to manage this process?

 Printed photo of the asset

 Asset movement form
 Goods Received Note
 Purchase order

Question 57 of 60.

After a project officer receives her new laptop while on a field assignment, how should she confirm its
receipt with the local office?
  Call the person that issued it
 Text the person that issued it
 Email the person that issued it
 Skype the person that issued it

Question 58 of 60.

Which of the following is a main internal control of fixed assets?

 Purchasing of assets
 Repair and maintenance of assets
 Maintaining an asset register
 Always storing assets in a warehouse

Question 59 of 60.

Who should be responsible for the issuance of an asset?

 Finance Officer
 Designated/authorized person
 Procurement Officer
 Office Assistant

Question 60 of 60.

How should an error be indicated on a manually entered Asset Register?

 Erase the error as much as possible

 Cover the error using White-Out
 Mark the error with a single line strike-through
 Cover the error with dark ink

Question 54 of 60.

Which of the following supporting documents is suitable to justify disposal of an item that has been
lost?

 Copy of Asset Register details

 Completed loss/damage report
 Project report
 Original estimate

Question 55 of 60.

What are the key responsibilities of asset management?

  Purchasing, donating, and selling
 Registering, issuing, tracking, reporting, and disposing
 Assembling, maintaining, and auctioning
 Installing, repairing, and dismantling

Question 56 of 60.

What type of asset is a computer purchased with private funds?

 Donor asset
 Organizational asset
 Information technology asset

Question 57 of 60.

What is a donor asset?

 An asset stored at donor's office for safety/security

 An asset purchased using organizational funds
 An asset the organization is accountable to the donor for disposing
 An asset given to beneficiaries by the local authority

Question 60 of 60.

Which document would identify the individuals issuing, receiving, and transporting organizationally
owned laptop computers?

 Asset Tag
 Asset Register
 Asset Movement Form
 Asset Disposal Form