TANZANIA INSTITUTE OF ACCOUNTANCY

TITLE: ASSESSMENT OF TENDERING PROCEDURES

CAMPUS: DAR ES SALAAM
DEPARTMENT OF: PROCUREMENT
BACHELOR DEGREE IN: PROCUREMENT AND LOGISTIC MANAGEMENT
FIELD REPORT
NAME: MRINDOKO KHAMISI, S.
REG.NO: DSM/BPLM/13/11518
ACADEMIC YEAR: 2015/2016
SUPERVISOR: MR.
SUBMISSION DATE: MAY

A FIELD REPORT SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF

BACHELOR DEGREE IN ACCOUNTANCY (BAC) OF TANZANIA INSTITUTE OF
ACCOUNTANCY (TIA) DAR ES SALAAM CAMPUS. MAY 2016

EXECUTIVE SUMMARY
The report is about Assessment of Tendering Procedures in Korogwe District council. The field
study undertaken from 09th July to 10 September. The intention of the study was to examine the
effectiveness of Tendering in Korogwe District Council. Thus the study also tried to insight the
policies and procedure employed in dealing with Tendering Procedures and finally come with the
findings that depicted that the tendering strategies employed in Tanga especially in Korogwe
District council.
The purpose of the report was to compare the theory learn in the institute with the actual done in
the field area, since most can be taught at the Institute theoretically at the end of the day there
was a high need of this program to be undertaken so as to facilitate student understanding upon
the organizational management styles and behaviour from the theoretical understanding that
students possessed before the start of the practical Training.
The procedure used to get information was through observation and which was used to ask
questions to the coordinator so as to get relevant information.
However, findings showed Tendering control at (KDC) involving of stores procedures, Issuing
Procedures, Receiving Procedures, Procurement Cycle, Tender Documents, Contracts and
documentation such as copy of purchase order, supplier advice note, supplier packing note and
receipt voucher, and it has showed that how efficient receiving procedure is done at (KDC) and
the importance of documents as a part of stores procedures.
Its concluded that Tendering Process at (KDC) is not a new thing it has been there for a long
time since the emergent of accounting era even the government of Tanzania was not out of these
area because the Effectiveness of stores procedures are contained in the public finance act 1962
under government store.

AKNOWLEDGEMENT
I would like to grant my grateful thank to our almighty God for his blessings, love and providing
me with good health during my field study. There is no way I could have to completed this field
report without the heartfelt contributions of some people, who moralized and enabled me to
collect data which are relevant to my field report. I am in-debited to many for ideas and
assistance.
My sincere appreciation goes to Mr. Nzera my field supervisor, for her support, constant advice
and guidance throughout the study and the management of Procurement Management Unit for
accepting me to conduct my field study in their Council. Indeed, they were cooperative during
my field study and granted me an opportunity to go through necessary information, records and
materials relevant to my study.
In addition, I would like to thank my beloved parents, Mr. & Mrs
my beloved friends
Omary Makalle, Alex Mapunda as well as other relatives who raised me to the standard of being
capable of completing this work.
Also I would like to acknowledge the discussions which I made with my fellow colleagues from
other Institutes who helped me to keep up to this date.
Lastly, I express my thanks to the Tanzania Institute of Accountancy for the better guidance and
theory that enabled me to undertake field attachment at the Korogwe District council.

LIST OF ACRYNOM

BPLM- BACHELOR DEGREE IN PROCUREMENT AND LOGISTIC MANAGEMENT

GRN-

GODS RECEIVED NOTE

KDC -

KOROGWE DISTRICT COUNCIL

LPO -

LOCAL PURCHASING ORDER

MD

MUNICIPAL DIRECTOR.

PMU - PROCUREMENT MANAGEMENT UNITY

PPA -

PUBLIC PROCUREMENT ACT

PPRA- PUBLIC PROCUREMENT REGULATORY AUTHORITY

TIA-

TANZANIA INSTITUTE OF ACCOUNTANCY

Contents
EXECUTIVE SUMMARY..............................................................................................................i
AKNOWLEDGEMENT.................................................................................................................ii
LIST OF ACRYNOM.....................................................................................................................iii
CHAPTER ONE..............................................................................................................................1
1.0

INTRODUCTION................................................................................................................1

Wards..........................................................................................................................................5
Overview......................................................................................................................................6
Health care...................................................................................................................................6
Transport......................................................................................................................................6
1.2

BASIC FUNCTION OF KOROGWE DISTRICT COUNCIL............................................7

1.3

STATEMENTS OF PROBLEMS.........................................................................................8

1.4

SIGNIFICANCE OF THE STUDY.....................................................................................8

CHAPTER TWO.............................................................................................................................9
2

WORKDONE AND LESSON LEARNT................................................................................9

CHAPTER THREE.......................................................................................................................22
3.1 ANALYSIS..............................................................................................................................22
3.2

GAPS BETWEEN THEORY AND PRACTICES.............................................................22

3.2.1

TRAINING ASSESSMENT....................................................................................22

3.2.2

SKILLS LEARNT AND ENHANCED...................................................................23

3.3

PROBLEMS FACED................................................................................................23

3.4

RECOMMENDATIONS TO SOLVE THE ABOVE PROBLEMS......................24

3.5

PRACTICAL TRAINING EXPECTATIONS........................................................24

CHAPTER FOUR.........................................................................................................................25
4.0
4.1

CONCLUSSION AND RECOMMENDATION.....................................................25

CONCLUSION...................................................................................................................25
4.2

RECOMMENDATION.............................................................................................26

5.0

BIBLIOGRAPHY.....................................................................................................27

CHAPTER ONE
1.0

INTRODUCTION

Korogwe is one of the eight districts of Tanga Region in Tanzania. It is bordered to the north by
the Lushoto District, to the east by the Muheza District, to the South by the Handeni District and
to the West by the Kilimanjaro Region.
The Korogwe district Council was established in 1984 in terms of the provisions of section 8 and
9 of the Local Government (District Authorities) Act 1982. Besides the Act, the council operates
within the framework of the following instruments.
Local Authority Financial Memorandum 1997.
Public Procurement Act no 21 of 2004.
Local Government Finances Act no 9 of 1982.
.1.1

Operational Objectives

According to the Government (District Authorities) Act the Korogwe district Council has the
following objectives:
(a) To maintain and facilitate maintenance of peace, order and good
Governance within its area of jurisdiction.
(b) To promote the social welfare and economic wellbeing of all persons within its area
of jurisdiction.
(c) Subject to the national policy and plans for Rural and Urban Development, to further
the social and economic development of its area of jurisdiction.
(d) Collection of Public funds through taxes, licenses, fees and charges.
(e) To convince the public that the use of funds has achieved the maximum benefits
through sound financial management.

1.1.3

Financing

The Council has two sources of funds, own sources and external source. The Internal source
included collection of Public funds through, taxes, fees, License and charges. On the other hand
external source include subsides from central government, grants and loans from donor
community. Total Income during the year was Shs. 5,412,998,763 made up of Shs.131,554,894
from own sources and Shs.5,281,443,869 from government grants.
Office of the Controller and Auditor General AR/LG/112/2005 5

Management
The Korogwe District Council operates under directives of the full Council, which is a supreme
body for legislative responsibilities. Under the Full Council there are three Committees which
are directly answerable to it. The Chief Executive for the District Council is the District
Executive Director (DED) who is responsible for the daytoday activities. The structure has
positions of Internal Auditor and Legal Officer with responsibilities of advising the Director on
matters falling under their jurisdiction.
In addition, the structure provides for functional departments namely: Administration, Finance
and Health, Education, Works, Town Planning and Environment and Agriculture, Livestock and
Cooperatives as well as Social Welfare and Community Development.
The pictorial management structure of the District Council is shown as appendix to this report.
Internal Control System
A System of internal control that should be adopted by councils is given under order 9 through
11 of the Local Authority Financial Memorandum 1997. The Order requires the finance
committee to adopt written procedures for proper control of finances. In addition, the Director
and the Treasurer should ensure there is assignment of specific responsibilities to individual
officers, an organization chart of the Finance Department division of responsibilities and periodic
rotation of duties. Accountability of all areas of operations by the Director or his designated
representative to check effectiveness of the control system is mandatory. The Council is also
required to employ its own Internal Auditor who reports directly to the Director. Similarly, the
Public Procurement Act No.21 of 2004 Section 28 (1) requires the Council to establish a Tender
Board and Sect.34 (1) provides for establishment of Procurement Management Unit.
The Internal Control set up of Korogwe District Council complies with this order and
Procurement Act but it is lacking an Audit Committee which is part of Transparence and good
governance, nevertheless weaknesses arising from review of internal control system are included
under part 3 of this report.

Financial Performance Issues

Revenue
The District Council collected an amount of Shs. 131,554,894 from own sources against the
internal revenue budget of Shs. 205,449,806 reflecting a collection shortfall of Shs. 73,894,912
or 36%. The large Office of the Controller and Auditor General AR/LG/112/2005 6

difference between the actual revenue collection and estimates was not explained but would
appear to be a result of unrealistic revenue budget. In addition, the Council received grants
amounting to Shs. 5,281,443,869 making total revenue of Shs. 5,412,998,763 during the year.
Expenditure
The Council spent Shs. 3,896,605,721 during the year against total income of Shs. 5,412,998,763
or 72% of total revenue, leaving unspent amount of Shs. 1,516,393,042.
A comparison of the internal revenue of Shs. 131,554,894 against expenditure of Shs.
3,750,247,793 (net of depreciation) is only 3.5% implying that the District Council cannot
sustain either its recurrent or development expenditure without depending on grants
Wards
The Korogwe District is administratively divided into two Councils, Korogwe District Council
and Town Council,With 20 wards. The following list show wards that are in Korogwe District
Council, and that in In Bold and Italic are in Town Council.

Bungu

Chekelei

Dindira

Kizara

Kerenge

Korogwe

Kwagunda

Kwamndolwa

Lutindi

Magoma

Makuyuni

Mashewa

Mazinde

Mkalamo

Mkomazi

Mombo

Msambiazi

Mnyuzi

Ngombezi

Vugiri.

Korogwe is a town in Tanzania, with a population of 44,000 in 2002. It is the main centre of
Korogwe District, which is within the Tanga Region.
Overview
The town is the seat of the Anglican Diocese of Tanga and has a cathedral church dedicated to St.
Michael and All Angels. It also has a teacher Training college and a number of secondary
schools.
The district is drained by tributaries of the pangani river.
Health care
The Magunga district hospital is the home of the NIMR Korogwe Research Laboratory. The
building was designed by the Danish architect Jakob Knudsen (see also picture below). Great
effort was taken to adapt the building to local environment and climate. The building was
officially opened on 19 September 2008 and has since been used to support malaria vaccine
trials.
Transport
Korogwe is a road and rail junction, where the routes from Tanga link those from Dar-es-Salaam
to the northern cities of Arusha and Moshi.
1:1:4 DEMOGRAPHIC
Korogwe District council according to the census of 2012 there are total population of 310,346,
There are rapidly change of population from 44,000 in 2002.

1.2 BASIC FUNCTION OF KOROGWE DISTRICT COUNCIL

KDC

as

one

of

the

local

Government

authorities

perform

both

mandatory and

permissive function. But generally the council performs the following function;
To carry out participatory planning where by all stakeholders and the Residents of
the City council are involved in preparation of developments.
To ensure that the district council delivers efficient and

improved

Services.
To ensure good governance within the current legislative laws in order to
Ensure Transparency and fairness among all stakeholders in carrying out the
Affairs of the council.
Collection of

revenue within the city in order to ensure that the council

Has sufficient fund.

To ensure that the district delivers efficient and improved services to the residents
like education, water supply, roads construction, general maintenance of the Council and so
forth.
To create conducive environment to enable

the residents of the council to reduce

their poverty.
To make laws that that will ensure the developments plans and services plans are
implemented

1.3 STATEMENTS OF PROBLEMS

Financial difficult; Is among the difficult faced by most of the student during practical
Training due to the fact that most of the student have no sponsorship, I was pay bus fare,
breakfast, lunch and stationary for preparing report while I have no reliable financial
source.

Supervision; It was very difficult to obtain enough supervision from the person I was
instructed to report to as he was too busy with his other duties and there were only three
supplies staff which all make supervision be very difficult.

The student is usually isolated from being delegated of some duties though he/she might
perform it.

The student is also limited from accessibility of some information in some departments
due to the confidential and other civil servant code of ethics. That no one is allowed to
access any information from the organization of any procurement procedure

1.4 SIGNIFICANCE OF THE STUDY

The finding of this study is very useful in various ways to the KDC located in Dar es Salaam
Region; the following are some of significance which I experience during my study;

The study will enable the KDC to minimize the weakness revealed and emphasize
improvement of internal control system.

The finding from this study will be useful to internal control system to operate
effectively.

To the concern student will help to widen knowledge procurement procedure and
tendering and enable student to attain award of Bachelor degree in procurement and
logistics management.

Recommendation on this study will enable the KDC to practice

CHAPTER TWO
2

WORKDONE AND LESSON LEARNT

The following was the duties that I was assigned by my supervisor during Training: 2.1.1 RECEIVING
Receiving of goods from the suppliers was among the dairy routine work that I was assigned by
my supervisor, the activities involved inspecting the materials/goods to ensure that it conform
with the required quantity and quality. This is done by comparing the contract document against

the materials delivered, after ensuring that the materials is of the required quality and quantity,
delivery note is signed as the evidence of accepting in the incoming goods, recording them in the
goods received note and updating its balance in the ledger.

2.1.2 ISSUING
Issuing of items from store to users is the second duties that I was assigned by my supervisor, the
activities also involved inspecting the store requisition permit to ensure that requirement was
risen by the appropriate officer, this involve checking if the permit is appropriate signed, then
after ledger is checked to see if the items required is within the store and giving the item to user
after signing the issue voucher by the user requesting the materials in the store.

2.1.3 PREPARING CONKDCCT DOCUMENT

It was also my duty, prior supply the materials or service to the organization there must be
contract between the Korogwe District Council and that supplier or service provider. Therefore,
after completing all the selection process I was assigned to prepare contract document (LPO) and
after obtain all the required authorization copy of LPO were given to supplier so that he/she can
supply the required item.

2.1.4 ATTENDING TO TENDER BOARD MEETINGS

Attending to tender board meetings as a student for learning purpose but not for making decision,
Korogwe District Council tender board usually meet to discuss various agenda as prepared by the
secretary of the tender board.

2.1.5 UPDATING LEDGERS

After every receipt or issue is made store ledger is usually updating to obtain the actual balance
of items in the store.
2.1.6 INTERDEPARTMENTAL RELATIONSHIP
During the Training I have learn that PMU interrelate with all departments within the Council.
The relation with each department is explained below as follows;

Procurement with engineering department

PMU receives specifications of various kinds from engineering department like small and heavy
plants equipments specifications, drawings and Bill of Quantities (BOQ). The procurement
section prepares tender documents and manages the tendering process so as to obtain consultant
and contractors for the execution of various projects undertaken by the Council.
Procurement with Health department

Procurement section receives various specifications from health department like specification of
Laboratory equipments, hospital equipments, medicine and medical supplies. Procurement
section arranges procurement of that requirement so as to ensure that, people within Council
have access to quality health services.
Procurement with Information Technology Section (IT)
The Information Technology specialist help to draws specifications of computers and its
accessories, also they inspect the incoming Information technology related items like computers,
printers, photocopy and scanners.
Procurement with Finance department
In finance department is where all the payment is made for all goods, works and services,
therefore the finance department pay for all procurement made and helps the Procurement
management unit to have a good relationship with the suppliers/ service providers.
Also finance department certify the availability of funds before procurement is made so that the
procurement section can have assurance that there is fund available to pay for expected
procurement.
The procurement section procures stationary, furniture and many other goods and services for the
operation of the finance department.
Procurement with the solicitor office
Usually the procurement contracts / Local purchasing order (LPO) are prepared by procurement
management unit and taken to Council Solicitors office for proof reading as he/she is a legal
specialist so that he/she can make corrections, improvement of the contract document before the
contract signs.

2.1.7 PARTICIPATION IN ANNUAL PROCUREMENT;

During practical Training that, Procurement planning is an important element of public

procurement and in most procurement systems around the world, that a mandatory requirement
for the public entities to prepare annual procurement plan, the first task was to identify
items/goods and other assets that must be included as new in the plan those existing but where
not bought is the previous financial year.

Also after the process of identification is down, the next task was to suggest the method of
procurement to be used according to different criterias such as urgency, value availability of
supplies, time duration and other factors.

The procurement management headed the by using different guide lines public procurement and
past document for reference. After everything is done authorization from top management was
required, and later the authorized document was sent to PPRA for approval and advertisement.

PROCUREMENT PLAN FOR INTERNAL USE5

Below is a sample draft of a procurement plan

DESCRIP

TEND

LO

TION

ER

BASIC DATA

INVITATION

BID

PLAN

FOR

EVALUATI

VS

NO.

BIDDING

ON

ACTUAL

Quot

O.

APPROVA

ation

BY

no

TENDER
BOARD
AND
AWARD
OF
CONKDC
ESTMAT Procure Bid

Bid

CT
SUBMISSI

ED

ment

Invita

Closi

ON

AMOUN

Method

tion

ng-

BID

TENDER

Date

open

EVALUATI

BOARD

ing

ON

AND

date

REPORT

AWARD

APPROV

OD AL

BY

CONKD
CCT

2.2Local purchase order (LPO) processing

The local Purchase Order (LPO) is the Prepared by the Procurement department or procurement
Management Unit (PMU). It is also known as Purchase Order.

This document is prepared soon after receiving the indent sheet from stock Department, where.
Whereby the data from the identity are used as the primary data in the purchases Order.

The purchase Order, must state the Vender Item Number. Description of what the supplier is
required to supply, measure of Unit, Quantity to be supplied, unit price and the extended price
which the supplies will receive soon after the delivery is made.

Also the purchase order must specify to whom it is addressed (vendor) and the term and
condition which must be fulfilled by the vendor. The purchase order prepared in five copies,
whereby two copies remain within PMU, one copy is returned in the stock control department
together with a copy of indent, another copy is to supplier to for delivery purpose and the final
copy remain within cash office (Account Department) for payment when time for payment is
due.

NOTE; A purchase order can contain the following gapes as below, but may differ from
one organization to another, and also must have some condition, as per below sample please
Supply Goods/Services Details below:Vender

item Descripti

number

on

Unit

Qty

Unit

Extended

Ordere

price

Price

Tshs

2.3 Issuing and receiving tender document;

Thus tender document means the document prepared by a procuring entity. These document
contain the description of item/goods to be brought by the qualified supplier during the tender
process.

During my practical Training I used to participate in the process of selling these document to
supplies/bidders, these tender documents always differ in price depending on the contents
contained. Procurement department and other technician are to prepare and suggest the price.

During the process of issuing/selling these document the supplier is required to come with cover
letter that introduce his company and himself than he/she will be registered is the issuing
registry. Payment can be done though the bank or account department can be used to receive the
cash and giving them a receipt as evidence of payment.

In receiving the tender document, I was required to make sure that all tender before a received
must be sealed in the envelopes and must be addressed properly on top of it.

There after the receiving register will be filled by the person delivering the bidding document so
the date of receiving tender document must be the same to all suppliers, because the receiving

date is also the opening day of tender so as to find the winner of the tender, Any tender which is
found to have any mistake either is not sealed or not well addressed want be accepted during
receiving and any tender that will come after the time and date stipulated during receiving and
any tender that will come after the time and date stipulated on the advertisement will be rejected
on the spot.

2.4 Tender opening and choosing the supplies

The process of receiving of tender Document at Korogwe District Council is always followed by
the process of tender opening; these two processes must be separated by not more one hour. All
tender submitted before the deadline shall be opened in public, in the process of all the tender or
their submitted before the deadline shall be opened in public, in the presence of all the tender or
their representatives and other parties with legitimate interest in the tender preceding.

Also I noted that, the secretary of tender board who is also the head of PMU shall record the
name of all these present at the tender board and opening all other organization member who are
within the opening room. And all tender was numbered consecutively.

During the opening the following were read out loudly

- The renderers names

- The tender pricing and the total amount of each other

- Discount if any

- The presence of requisite tender security

Then each tender was supposed to be signed signed by the chairperson/accounting officer if
present and head of PMU and one representative as proof that all the process has been followed.

Once the process of opening is done, in order to find the bidder to be given a contact the process
of Evaluation of Tender must be done were by the accounting officer or chief executive officer
on recommendation from PMU shall establish a tender evaluation committee. As I was told since
I was not in the evaluation team, that the evaluation committee upon completion of its task, will
prepare a detailed report on evaluation of tender, in the report the committee will give specific
reasons which the determination of the lowest evaluation tender is based.

And may either approve and authorize the award of contact or refuse the award. And the winner
will be notified on the award and other tender will be notified on failure.

2.5 Receiving to inspection of consignment

Receiving is the process of accepting goods from different suppliers as per LPO specifications

During my Training I used to receive different goods, but I was given procedures that must be
observed during the process.

I was required to follow the below procedures

To ensure goods received are stored as per manufacturing requirement.

To ensure goods supplied meet specifications on the purchase order

To ensure batch number and expire date if any are document

To unpack and inspect the goods

To prepare the receiving report based on the condition of the goods

Thus receiving and inspection of goods are two inseparable procedures, after receiving
inspection must be done on the spot so that in case of any damage, shortage or any problem to be
noted immediately and if possible to return supplier with the good.

2.6 Preparation of receiving report;

Receiving report may be indicating damages, shortage, or rejection due to different reason,
Damage report base on detection that were noted during inspection, then a report must be drafted
stating the reason for damage whether it is due to Transportation, or unloading and other reasons.
When it comes to shortage factors must considered such as evaporation, theft wrong counting
during loading or human errors error, so a report must specify possible the shortage and if a
certain item totally rejected also the report must indicate the item and reason for total rejection.

As member of the receiving team I participated in drafting some report basically on shortage and
member of the receiving team I participated in drafting some report basically on shortage and
damage report, where by copies of the report were distributed as follows; one copy to the store
officer, another to supplier another to procurement and final copy to be retained in the books
were by account department were given also given a copy so that con not pay for item not
receiving.

2.7 Stock taking exercise

This was the process of physical verification of item in the store house and checking the
condition of goods in general. This exercise is done periodically depending on the system of a
particular organization. This exercise is accomplished by counting, weighing or otherwise
measuring all items in stock and recording the results.

During the Training I noticed the following, that the process of stock taking shall be drawn up
and agreed upon with all personnel concerned, including department of finance, accounting
Technical and Auditing.

Also the whole process will be supervised and witnessed by an external stock Auditor who will
issue a certificate accordingly. The all personnel concerned shall be instructed in their duties and
roles in writing. All stockholder was instructed to arrange their stock properly prior to
commencement of stocking. All stock taking sheet shall be under the control of one personal and
shall be numbered consecutively and all stock taking sheet shall be written in ink and we used to
mark all items that were yet counted to avoid double counting or omission. Then all officers
participating in stock taking were required to sign the stock-taking sheets alongside their
respective full names.

2.8 Problems faced in executing task and their solution

Despite the placement being very interesting and enjoyable there some problem during execution
of duties as follows:

It was a bit difficult to cope with the system and software technology application at the
beginning something caused hardship in performing duties as all work must into the
systems but after two weeks the problems of mastering the system was and the
knowledge was used to train other practical Training students in the absence of internal

supervisor.
Another challenge is being isolated to perform the causal and confidential activities of the

department especially in decision making.

Some assigned duties were new the thing which bring some difficulties in performing
those tasks especially the feasibility study issue which I didnt learnt before. Solution to
this was consulting my fellow trainees who were reading existing feasibility study to gain
more knowledge on it.

PROCUREMENT CYCLE
At the Korogwe District Council the Procurement cycle starts from the user department. User are
all department, they initiate procurement by completing the

requisition form and obtain

authority from the head of the department concerned, the District Executive Director then the
requisition form is forwarded to procurement section where the quotations are written and sent to
suppliers or service providers with a minimum of three quotation who will complete it by
indicate their price for each items and the total value and sent them back to procurement section
where evaluation is undertaken to identify the supplier/service provider who quote the most
competitive price, then local purchasing order is prepared and sent to supplier who quote the
most competitive price, he/she will then deliver the goods or service and finally he/she will
submit original copy of local purchasing order(LPO) , tax invoice and delivery note. After that,
the local purchasing order, tax invoice, delivery note, goods receipt note, quotation forms and the
requisition form is attached together and sent to finance department for payment.

Goods will be handled to user by the storekeeper using the store issue voucher and updating the
ledger to remain with the available balance.

Purchasing cycle

Delivery
6

ConKDCct award
5

Develop specification
3.

Identify supplier
4

KEY

1. User rise specification and sent to Procurement Management Unit (PMU).

2. User and procurement management unit draws specifications and procurement
management unit sent quotations to suppliers.
3. Suppliers quote their most competitive price.
4. Procurement management unit prepare local purchasing order and sent to the most
competitive supplier.
5. Supplier delivers the goods ordered.
6. Stores person inspect the goods to conform with the order and issue goods to user.
7. Delivery note, local purchasing order, tax invoice, profoma invoice, quotations and
requisition forms are sent to finance department.
8. Finance department arrange payment for goods received.

CHAPTER THREE
3.1 ANALYSIS
3.2

GAPS BETWEEN THEORY AND PRACTICES

In analyzing the situation of Korogwe District Council concerning the procurement department, I
focused on several issues like general performance of the organization that KDC as an
organization stands its own than depending on other sources.
According to the theories learnt in the class is that; in order to improve the procurement
procedures and stores operations, the ones whose deal with such activities must cooperate well,
and keep well all necessary records and documents and documents at the required place. Other
relating departments within the organization also must prepare early their requisitions, in order to
facilitate the procurement process as the procedure requires.
In the market what appears relate to what we lean in class, e.g. in procurement process in case 1
step skipped it may lead the entire process to be scrapped. And the most important thing in the
procurement process and stores operation is coordination and cooperation between the workers.
It is learnt that at the time of receiving goods at a working place, the goods received must be
inspected and the records must be maintained. Relate that theory with what is done in KDC is
quite equal, because in receiving process inspection is conducted and records are kept.
KDC organization was very suitable since they made me to realize my working environment, am
expecting after graduating. Also they taught me to be competent being performing the task given
in a good manner and be honest with the public money.

3.2.1

TRAINING ASSESSMENT

Training assessment was excellent since the given supervisors were ready to direct and lead me
on performing the task given appropriate and competent, so that to improve my career. Hope the
organization enjoyed my presence at their organization and the services I rendered.

3.2.2

SKILLS LEARNT AND ENHANCED

The skills learnt during the practical Training were a lot though; I was able to enhance some of
them, so relate to my carrier that I will be able to improve my professional. The skills enhanced
were like to prepare annual procurement plan, how to write and filling purchasing order also to
co-ordinate assist my fellow staff in stock taking.
3.3 PROBLEMS FACED
Because the environment was friendly that supported team work and the closeness of the workers
this made me face fewer problems within my PT Training operations.
The breakdown of the system due to loss of network was the major problem faced in executing
my duties that were assigned to me. The system slowed down most of the time and sometimes
cut off completely for the whole day and it mostly happened when we were uploading and
retrieving data from the system.
Complaints from customers
There were times customers with complains faced me and even abused me without knowing that
I was just a student. Most of these complains came after physical visits and sending them letters
of offence.
Poor arranging of files.
KDC had a good and well organized registry room but the only problem was misplacement of
files due to human errors. Because I was still new when I went back without a file they never
trusted me and they also went back to search for the same file and if they would not find it thats
when they believed. This was a bit embarrassing to me.
Lack of enough computers.

KDC never had computers specific for field students this made our operation of duties to be slow
and in case of any assignment one had to work and the other had to wait for the first to
accomplish his duty for him to use a computer.

3.4 RECOMMENDATIONS TO SOLVE THE ABOVE PROBLEMS

I would like to recommend that KDC should try to improve over the network problem by either
employing advance IT (information technology) members so that this network problem could be
solved.
Organize for some new computers.
Since KDC is a very large organization it should at least try to organize for some computers that
would be used by field students because the work that the PT students do is for their own good
since they are the ones that benefit much compared to the students themselves.
Carefulness should be maintained.
The problem of overlooking could be solved by all those that are responsible for handling the
registry issues by observing carefulness in their operations and the people who send others
should at least try to trust them because it makes people feel out of place.
The problem of complaints from customers was a bit out of my control but the staff members
tried to help us in case one tried to disrespect us so at least this was reduced during our PT time.
3.5 PRACTICAL TRAINING EXPECTATIONS.
Close relation for employment opportunity. My first main expectation of taking my practical
training at KDC was to create a closer relationship with the organization so that I would work
with it in the future after accomplishing my studies at the institute. I would like to say that to a
greater extent my expectations were met because I was able get close to many of the organization
staff and got a chance to ask them on ways of how to get an opportunity to work with KDC and
they were free to give as the information. I was also able to get most of the staff contacts so that

in case of any query I would ask for their assist once. Most of the KDC staff members used to
praise us over how hardworking and promising students we were at the organization.
Though everything went on well but there were some problems on this because

KDC does not get its employees direct from school.

Most of the workers of KDC do not want to retire at the right age of retirement so this
becomes a challenge to me and my colleagues

CHAPTER FOUR
4.1
4.2

CONCLUSSION AND RECOMMENDATION

CONCLUSION

Practical Training session is among the valuable programs set to enhance students learning and
understanding the facts about their career. The Training exposes students to new challenges and
opportunities in their chosen profession. Most of the things taught theoretically are practiced
during this period. It enables students to experience different working environment before they
are actually employed or self-employed upon completion of their studies.

For instance, at KDC I learn many things about administration of stores and procurement which
are my career and I have obtained something in excess and which is beneficial. Further I gained
personal confidence and self-trust as I working with different people having different managerial
positions.

The report itself show from a chronological arrangement of different finding that I was able to
achieve during the Training. All aspect that is important for procurement and stores has been
explained at least in detail as per system on material management.

Generally, I enjoyed working with this Organization and I managed to meet my expectations.
New things which I learn help me to broaden my procurement knowledge while the problems I
faced were solved. the work environment was extremely good such that I enjoyed each moment
of my stay. Though at the beginning my knowledge seems to be narrow I appreciate that I came
out with significant knowledge which is something I didnt imagine at the start. Therefore,
practical Training session is essential and should be carried on for students to be competent in
what they have been taught theoretically.

4.3

RECOMMENDATION

Inclusion of software packages in to the syllabus

Most of the courses taught at the Tanzania institute of accountancy are taught manually which is
very common to the really world because most of the organizations are specialized in softwares
like Epicor. So by including it in the syllabus this will introduce students to different knowledge
of the softwares and easy their application at the office.
Practical Training duration
The practical Training duration should be extended or be done in both first and second year
because most of the students get to learn few of the tasks done by the organization because of
limited time compared to how large the organization and its duties are. In case it seems to be
costly to the institute because it requires paying the lectures for supervision the Training can just
take place and the students required to prepare reports but and supervisors my not visit the
specific organizations.
Organize for regular visits to the organization

I would like to encourage the institution to organize regular visits to specific organization that are
related to some courses like Procurement and Logistic Management. Students who study these
courses should arrange for regular visits to organizations like Councils, PPRA and others to learn
the practical part of it because most of the students do not understand when they are taught but
just cram because of limited time and having many other courses to study with a short period of
time of four months. So by having these visits this will help them understand most of the
important basics to grasp on their theory.
Issue of management information system and computer application.
The importance of computer and information technology should not be undermined, this will
help the student to cope with the current change of science and technology, also will help the
student to type their report and other assignment given by their teachers and supervisor using
Microsoft office program.

5.0

BIBLIOGRAPHY

Menon K, S. (1993) Purchasing and Inventory Control, W heeler

Publication New Delhi. 3rd Ed
Saleem N .S, (1997) Storekeeping and Stock Control Simplified, Saleem
Publishers, Nairobi.
Varma .M .M, (1993) Material Management 3rd Ed Sultan Chand and
Sons New Dehil.