Examining effective procurement procedures of goods in Public Universities - a case of Kwame Nkrumah University of Science and Technology, Kumasi.

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The study examined the effectiveness of procurement of goods as a financial control adopted by the management of Kwame Nkrumah University of Science and Technology, Kumasi. Effective internal controls promote efficiency, reduce the risk of asset loss, and ensure the reliability of financial statements and compliance with laws and regulations. For effective control, KNUST has in place Financial and Stores Regulation Act enacted by Parliament in 1961 as amended from time to time. This serves as a benchmark for all financial transactions in the university. The study employed both qualitative and quantitative methods where primary and secondary data were used to ascertain the necessary information needed for the analysis. The research findings showed that procurement rules in the KNUST Financial and Stores Regulation Act 1961 as reviewed from time to time, is in line with the Public Procurement Act 2003 (Act 663). The Public Procurement Act 2003 (Act 663) is a major factor that influences procurement processes, as such public institutions should adopt, use and comply. Though KNUST members of staff are aware of the existence of the Public Procurement Act 2003 (Act 663) they have little knowledge on what it entails due to the fact that seminars on procurement are not held for them. The existence of bureaucratic processes involved in procurement of goods is too cumbersome, which takes three to six months to complete one procurement process leading to delays, splitting of items and dodging of procurement procedures. (This happens in a way of the user department finding a credible, reputable and competitive supplier, and making a requisition through the procurement officer to the procurement committee for approval and receipt of the goods). It might in a way affect the economic benefit of the item since time may elapse for its use. To the best of my knowledge, no study has been conducted in the field of effective procurement procedures in public universities since the inception of the Public Procurement Act 2003 (Act 663). Finally, time and financial resource constraints limited the study to a sample of eighty six members of staff where 58 responded to the study.
A thesis submitted to KNUST School of Business, Kwame Nkrumah University of Science and Technology In partial fulfilment of the requirement for the award of Master of Business Administration, 2008