Assessment on the Contribution of Procurement Audit Towards Improving Procurement Ethical Practices in Public Institutions:

Abstract

This study has examined the contribution of procurement audit towards improving ethical practices in procurement in public institutions at TANAPA in Arusha. The study has specifically assessed the effectiveness of procurement audit towards improving procurement ethical practices in public institutions; examined the indicators of improved procurement ethical practices in public institutions; and determined the effect of procurement audit towards improving procurement ethical practices in public institutions. The study was guided by the Agency Theory. Descriptive research design and the quantitative approach were adopted. Sample size was 115. Structured questionnaire was used to collect data. Quantitative data was analysed by using descriptive statistics. Correlation analysis was applied to assess relationship between procurement audit and procurement ethical practices. The findings revealed that financial audit, compliance audit and performance audit are highly effective towards improving procurement ethical practices at TANAPA. It also ensures accountability to management as well as fairness. It was also revealed that there are high sense of ethics and morality, and procurement process. It is concluded that financial audits, compliance audits and performance audits carried out at TANAPA in Arusha are highly contributing to improvement in procurement ethical practices. It is also concluded that procurement audit has generally high effect on improving procurement practices at TANAPA, and there is moderate positive linear relation between procurement audit and procurement ethical practices of transparency and openness, accountability, fairness, integrity, equality and equity. It is recommended that TANAPA should carry out a comprehensive review of its existing procurement processes to identify inefficient processes. The review should identify factors that hold back meaningful progress and how much they cost the organization, and find ways to increase efficiency. TANAPA should provide periodic trainings to all staff in the procurement department on procurement compliance issues, value for money, legality and correctness of all operations.