Procurement process compliance audits and procurement performance in the public sector : a case of national agricultural research organization

Abstract

The general objective of the study was to examine the relationship between procurement process compliance audit and procurement performance in NARO. The specific objectives of the study related to examining the relationship between procurement planning, bidding and contracting, contract management process compliance audits and procurement performance in NARO. The study used a case study design using both quantitative and qualitative approaches. The study population consisted of 140 staff who interact with the procurement function as Accounting Officer, Contract Committee, PDU, and user Department. Data was collected using a questionnaire, interview guide and document review. The study found a statistically weak but positive relationship between procurement planning process compliance audit and procurement performance. The study found a moderately strong positive relationship between bidding & contracting process compliance audit and procurement performance. There was a moderately strong positive relationship between contract management process compliance audit and procurement performance. The study recommends that for enhanced procurement performance, the accounting officer should conduct a market price survey to guide the development of the procurement budget.The PDU should require bid securing declaration forms from bidders at bid receipt to avoid the risk of awarding contracts to non-compliant bidders. The PDU should additionally create a record of bid issue, opening and receipt for enhanced transparency and maintain a central repository of records of all action files to ensure accountability. The user departments should ensure that order delivery should reconcile receipts with the order forms to enhance service delivery.