Influence of financial application system on procurement management of hermann gmeiner school at sos Eldoret, Uasin Gishu Kenya
Abstract
Adoption of FAS improves procurement management process because it raises efficiency hence
reducingpilferages that can be as result of ineffective use of FAS. An institution that uses FAS is
perceived to have many benefits that are brought into practice; transparency, accountability and
usage of available resources. More organizations are adopting the use of these systems in their
procurement departments with an aim of reaping benefits. Schools are not to be left behind as
more and more adopt this system in procurement management. The exact nature and types of
benefits have not been properly documented in studies and schools using these systems still are
susceptible to frauds and other malpractices associated with manual functioning of the
procurement department. The study aimed at looking at the influence of financial application
system on procurement management: A Case of Hermann Gmeiner School at SOS Eldoret,
Uasin Gishu Kenya. The study was guided by the following research objectives; to establish the
effect of internal controls of financial application system on procurement management; to
determine the effect of planning and budgeting of financial application system on procurement
management; to examine the effect of tendering of financial application system on procurement
management and finally to determine the effect of reporting of financial application system on
procurement management. The study employed a census research design. The target population
included school director, 10 members of management, 15 members of procurement management
committee, 16 finance officers and 52 teachers. The target population therefore comprised of 94
respondents. Census sampling technique was used to select the respondents for the study. The
researcher used questionnaire as data collection instrument and interview schedules for
management. The data was organized, presented, analyzed and interpreted using descriptive and
inferential statistics. Descriptive statistics that was used to analyze data are frequencies tables,
percentages. Inferential statistics employed the use of regression analysis on the variables. Data
was analyzed and tested at 0.05 level of significance. The study found that procedural internal
controls affects procurement management (87.0%) this implies that the school had set up
effective internal controls that included effective procedural control measures through the
Financial Application Systems that worked to improve procurement management; planning and
budgeting positively affect procurement management (81.9%) this gave an indication that there
was effective planning and budgeting processes that were exhaustive and which then improved
procurement management; Further, tendering positively affect procurement management
(80.5%) giving an indication that the procurement process of tendering was transparent and
accountable which consequently helped to improve procurement management at the school;
finally reporting also positively affects procurement management (79.5%) implying a well set
procedures and guidelines does not allow any manipulation of such processes and that the
procurement process was well documented and finally reported in acceptable formats that then
positively affected procurement management. The study therefore recommends that Hermann
Gmeiner School develops a policy to continuously customize FAS application to suit its main
operational processes related to procurement management. The study also recommends that
Hermann Gmeiner School develops a policy on management of the FAS. This would ensure that
the right persons are recruited and selected to run the system in the most effective manner in a
way that it achieve best results for the organization at Hermann Gmeiner School.
Publisher
University of Nairobi
Description
Thesis