JTW-JME-09
Justice, Trade & Work
Justice & Market Ethics
CORE
Excellence
v2.9.7
Procurement spot-checks conducted
Assesses the implementation of regular, unannounced procurement spot-checks. This practice embodies ḥisbah (accountability) and safeguards amānah (trust) by verifying compliance, preventing waste, and assuring stakeholders that resources are managed ethically. Rooted in the Maqāṣid (higher objectives) principle of ḥifẓ al-māl (preservation of wealth), such rigorous oversight prevents khiyānah (betrayal of trust) in financial dealings. Spot‑checks explicitly cover procurement cards, staff expenses, petty cash, and low-value purchases due to elevated misuse risk.
Assessment Questions
- Does the organization conduct unannounced spot-checks on procurement activities? Describe the process.
- Does the sampling protocol explicitly define population, sample size, and stratification for high-risk channels (P-cards, petty cash)?
- How is reviewer independence safeguarded (e.g., no self-review, COI declarations, reporting lines)?
- What severity rating model is used, and what are the explicit triggers for trustee escalation, serious incident reporting, or supplier suspension?
- How are findings documented and tracked to closure? What are the SLAs for remediation?
- How do spot-check findings feed into the annual report (governance/risk disclosures per SORP) and management letter process?
- Do spot-checks include specific tests for related-party transactions and trustee benefits?
- Where analytics are used, how is GDPR compliance for staff/vendor data matching ensured?
Evidence Requirements
- Policy or procedure document for procurement spot-checks.
- Standard spot-check checklist template (version-controlled).
- Sampling log showing population, method, random seed/tool, and risk tags.
- Completed spot-check reports with findings and management responses.
- Corrective action tracker export with dates, owners, and severity ratings.
- Reviewer rota, COI declarations, and 'no self-review' confirmations.
- Ledger extracts/screenshots showing tests run (duplicates, split POs, round sums).
- Quarterly reports/dashboards to Audit/Finance Committee.
- Definition of 'high-risk spend' and calculation workbook for coverage scoring.
Scoring Guidelines
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | ≥6 checks/yr, ≥75% unannounced, ≥30% high‑risk spend coverage, ≥95% actions closed ≤90 days, repeat findings decreasing. |
| 4 | 4/5 | ≥4 checks/yr, ≥60% unannounced, ≥20% high‑risk coverage, ≥90% closure ≤90 days. |
| 3 | 3/5 | ≥3 checks/yr (or 2 if <£100k), ad hoc scope, ≤60% closure. |
| 2 | 2/5 | Sporadic checks, undefined sampling/independence. |
| 1 | 1/5 | None. |
Discussion (1)
Administrator
2026-03-07 11:07:55.787280
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
Sign in to post a comment.