Purpose of Procurement

At Top Way, our procurement practices are designed to uphold integrity, transparency, and efficiency in the acquisition of goods and services across all departments. Our goal is to ensure that we procure high-quality goods and services at competitive prices while maintaining rigorous compliance with internal controls and budgetary policies. These procedures apply to all Top Way personnel involved in procurement activities, regardless of location or project scale.

Procurement Oversight Committee

The Top Way Procurement Committee shall be comprised of:

• The Executive Management Board

• The Finance & Accounting Department

• The Procurement Department

• The Quality Control Department

The committee convenes as necessary to discuss and approve procurement actions.

Committee Responsibilities:

• Review and award tenders

• Approve purchase orders

• Authorize procurement contracts

• Review and approve contract amendments or variations

Separation of Duties

Top Way ensures a strict separation of duties to maintain procurement integrity. Responsibilities are divided as follows:

• One team initiates purchase requests

• Another verifies and inspects goods or services

• A separate entity accepts deliveries

• Only authorized personnel may approve procurement and payments

Procurement Planning

Procurement planning is integrated into Top Way’s annual budgeting cycle. Department heads are required to forecast procurement needs by quarter using an official Procurement Plan, which details expected purchases, quantities, and timeframes. The procurement officer consolidates this data and submits it for committee review, followed by final approval by the Executive Director.

Procurement Requisition Process

Procurement is initiated via Procurement Requisition (PR) Forms, submitted by the requesting department. These forms must include:

• Detailed item/service specifications

• Justification for the purchase

• Confirmation that the item is budgeted

All requisitions must be signed by department heads or authorized designees. Emergency or unplanned procurement must receive prior approval from Top Way’s Executive Management.

Procurement Controls

Procurement must remain within the bounds of approved budgets, with exceptions only granted for critical needs with Executive approval. Responsibilities include:

• Verifying quality and quantity of goods received

• Matching invoice details to delivery records

• Updating inventory systems

• Signing and submitting delivery notes to Finance

The Finance Department conducts periodic audits to verify adherence to procurement protocols.

Procurement Reporting

Upon receiving approved requisitions, the procurement officer updates the Procurement Report Worksheet with:

• Requisition details

• Status updates

• Expected delivery dates

A monthly report summarizing procurement status and financial impact is submitted to the Executive Director and copied to the Finance Department.

Vendor Selection Process

Top Way maintains a pre-qualified vendor list to streamline and ensure ethical sourcing. Vendors are evaluated annually by the Procurement Committee based on:

• Price competitiveness

• Product or service quality

• Delivery lead time

• Warranty and after-sales support

• Ability to provide product samples

The vendor list is reviewed and updated annually to reflect performance and market changes.

Local Purchase Orders (LPO)

All LPOs and contracts must clearly define:

• Product/service descriptions

• Quantities and unit pricing

• Delivery timelines and destinations

• Payment terms and dispute resolution clauses

Contracts must be signed by both parties prior to delivery of goods or services.

Goods & Services Delivery Certification

Goods and services must be fully verified and certified by the requisitioning department before payment can be initiated. Guidelines include:

• Cross-verification of goods with invoices and delivery notes

• Mandatory physical inspection by the requesting department

• Immediate reporting of discrepancies to Procurement

• Secure updating of inventory records

Payment Processing

The payment cycle involves the following steps:

1. The requisitioning department submits a payment requisition

2. The Procurement Department certifies delivery and validity

3. The Finance Department performs a final review and authorizes payment

All payments must be made in accordance with contractual terms and internal financial governance policies.

Top Way is committed to ethical procurement, supplier fairness, and adherence to internationally accepted best practices. Our procurement policy not only supports the operational needs of the company but also reflects our dedication to transparency, accountability, and sustainable sourcing.