Influence of financial application system on procurement management of hermann gmeiner school at sos Eldoret, Uasin Gishu Kenya
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.