CLG 006 Certifying Officer Practice Exam

What is a bonafide need in the context of Purchase Card use?

1. A historical record of past purchases

2. Documentation of budget approvals

3. A purchase that must meet specific requirements

4. A procedural guideline for future purchases

The correct answer is: A purchase that must meet specific requirements

A bonafide need, in the context of Purchase Card use, refers to a genuine requirement for goods or services that must be satisfied to fulfill the operational demands of an organization. This concept emphasizes that the items or services requested are necessary at the time of purchase, ensuring that the expenditure aligns with the immediate needs of the agency or department. In this scenario, the choice that describes a purchase needing to meet specific requirements captures the essence of bonafide need because it highlights that the request is not arbitrary but rather grounded in actual organizational needs. This principle is fundamental to maintaining effective stewardship of public funds and ensuring accountability in government spending. The other choices relate to aspects of purchasing but do not define what constitutes a bonafide need. Historical records and budget approvals are important for tracking and planning, and procedural guidelines help establish spending protocols, but they do not inherently speak to the genuine necessity of the purchase being made at that moment.