Reasons for a close liaison between the procurement and finance departments in public procurement systems.

1. Budget management: The finance department is responsible for managing the organization's budget, while the procurement department is responsible for purchasing goods and services. A close liaison between the two departments ensures that procurement activities are aligned with the organization's financial goals and constraints.

2. Cost control: The procurement department is responsible for negotiating contracts and ensuring that goods and services are purchased at the best possible price. By working closely with the finance department, procurement can ensure that costs are kept under control and that the organization is getting the best value for its money.

3. Compliance: Both procurement and finance departments are responsible for ensuring that the organization complies with relevant laws and regulations. By working together, the two departments can ensure that procurement activities are conducted in a compliant manner and that financial transactions are properly documented.

4. Risk management: Procurement activities can pose risks to an organization, such as fraud, corruption, or supplier non-performance. By working closely with the finance department, the procurement department can identify and mitigate these risks, ensuring that the organization's financial interests are protected.

5. Strategic planning: The procurement department plays a key role in supporting the organization's strategic goals by sourcing goods and services that meet the organization's needs. By working closely with the finance department, procurement can ensure that its activities are aligned with the organization's overall strategic plan and financial objectives.