CLG 006 Certifying Officer Practice Exam

What are the three parts of a valid payment?

1. Bank invoice, valid requirement, reallocation (if necessary)

2. Bank invoice, purchase order, contract agreement

3. Valid requirement, receipt, client confirmation

4. Invoice confirmation, payment authorization, delivery receipt

The correct answer is: Bank invoice, valid requirement, reallocation (if necessary)

The correct answer identifies the three essential components that constitute a valid payment in the context of government contracting. These components ensure accountability and proper documentation in the financial transaction process. A valid requirement signifies that there is a legitimate necessity for the goods or services being procured, which is fundamental in government spending to avoid waste and ensure efficacy. The bank invoice provides a detailed account of the transaction, itemizing the costs and serving as a request for payment. Reallocation refers to the process of adjusting budgetary funds if there is a need to shift spending to ensure proper funding is maintained in the respective accounts for the payment. Understanding that these three elements are crucial helps maintain the integrity of the procurement process. The other choices, while they include relevant terms, do not collectively represent the complete and correct components necessary for a valid payment in this context.