International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 21 Evaluation Assessment of Capacity Building Programme on the Performance of LGAs Procurement Functions. A Case of Tanzania LGAs. Muhsin Danga 1 and Ismail Juma Kaudunde 2 Local Government Training Institute, P.O Box 1125, Dodoma, Tanzania dangamuhsin@gmail.com Abstract: Public procurement is the acquisition of right goods, works and services required to satisfy certain needs at the right time, from the right supplier, in the right quantities, in the right quality, and at the right price. Worldwide it accounts 10% – 30 % of GNP while in Tanzania it accounts for about more 45% of the total budget. Appropriate procurement system in the public sector is a tool for achieving political, economic and social goals. The research examined the impact of the capacity building on the performance of LGAs procurement function, was conducted in Tanzania to the four regions in 2018, comprised a sample size of 224 respondents from eight Local Government Authorities (LGAs). Qualitative and quantitative data were collected, employed the case study method intended to the Evaluate Assessment of Capacity Building Programme on the Performance of LGAs procurement functions. The study revealed that procurement functions have improved because of the intervention of capacity building such as the improvement of the; Use and application of PPA and PPR, use and application of Procurement Planning, use and application of Contract Management and Administration, use procurement record keeping and reporting, use and application of PMIS & Other Procurement Systems, appropriate Tendering Process. Also, the researchers have revealed challenges hindering LGAs procurement system such as; lack training, unpredictable funds flow and political interference. Moreover, based on the contributions attributed by the capacity building further research can be undertaking to measure the impact of capacity building in the other areas apart from procurement field such as; health, agriculture, good governance and so on. In addition to that, another research can be undertaken to assess the factors hindering the performance of LGAs procurement system. Keywords: public procurement, capacity building, evaluation, assessment, compliance, value for money, PPRA, CAG, Tanzania, PPA, EPC-LGAP, LGAs 1. INTRODUCTION AND STATEMENT OF THE PROBLEM Appropriate procurement system in the public sector is a tool for achieving political, economic and social goals. In the era of diminishing resources and increased demand, the stakeholders of the public sector are demanding to be more effective and efficient in the use of public resources it is the key element in achieving economic development and poverty reduction in the country (Nkinga N.S.D, 2003). In recognition of the public procurement system, the government of Tanzania in 1995 and 1996 commissioned two organs (Crown Agent and World Bank) to conduct a study of the country‟s procurement system and its adequacy. The reports of the consultants revealed that; the country procurement system was fragmented, absences of standard documents and lack of central organ responsible for the coordination and regulation of public procurement functions. Following the assessment, in 2004 the country had enacted the PPA, 2004, in 2013 had enacted PPA, 2004 and in 2011 had enacted PPA, 2011. Apart from the enactment of the laws, it has also established the Public Procurement Regulation Authority (PPRA) whereby its main responsibility is to oversee public procurement functions over the country. The government of Tanzania had adopted the policy of D by D includes; the transfer of procurement function to the respective Procuring Entities (Pes). Following the transfer of procurement functions to the respective PEs an Accounting Officer (AO) has been given the responsibility of overseeing procurement activities in his institution. AO has the responsibility to ensure that procurement functions are adhering by the laws and regulations governing the procurement process. Although the accounting officer has given the responsibility of overseeing the procurement matters, the law mandated PPRA as overall overseer whereby its main responsibility is to ensure that public entities are adhering to PPA and its Regulations. Apart from PPRA and AO mandated to overseeing procurement functions also the following laws have been enacted such as; The Permanent Commission of Enquiry Act, 1966, Prevention of Corruption Act No. 16 of 1971, The Economic Sabotage Act, 1983, The Economic and Organized Crimes Control Act of 1984, The Economic and Organized Crimes Control Act (Amendment) 1998, The Public Leadership Code of Ethics (Amendment) Act, 2001, Human Rights and Good Governance Commission Act, 2001, and The Anti-Money Laundering Act, 2006. In ensuring that, the oversight tasks are done properly apart from the establishment of PPRA, the government had established the internal and external control mechanism. The internal Control mechanism provides set up of procurement functions in the PEs by the establishment of organs such as; Accounting Officer, Tender Board, User Department, Evaluation Committees, Internal Audit Unit and International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 22 Procurement Management Unit these organs are required to undertake procurement functions independently and be accountable PPA, 2011. The main duty of the Internal Audit Unit is to ensure that internal control systems are properly working properly in efficiency and effectiveness manner. The availability of internal auditor it assists PPRA as the Authority cannot conduct procurement audits to all PEs within the financial year due to human and financial constraints. The external control mechanism is done by the National Audit Officer (NAO) under the supervision of the Controller and Auditor General (CAG). The Constitution of the United Republic of Tanzania under Article 143 acknowledged the availability of NAO and CAG. Apart from the Constitution also Public Finance Act (PFA) No. 6 of 2001 and the Local Government Finance Act No.9 of 1982 have described the statutory duties and responsibilities of the Controller and Auditor General (CAG). The NAO has responsibilities of undertaking an external financial and performance audit of all government entities, public authorities and other bodies at least once a year. It is required under section 48 (30) of the PFA 2001 to carry out Performance Audit and report to the Parliament on the economy, efficiency and effectiveness in the use of public money and other resources. The Act requires Auditor General to state whether or not the provisions of PPA‟s have been complied with in his annual report every year. Compliance, in general, means adherence to applicable law, regulations, rules and ethical standards by employees, agents and others. Despite the effort made by the government in ensuring that the procurement process in the country particularly Local Government Authorities is complying with the laws (PPA and PPR), reports from different organs revealed the noncompliance of the laws governing good governance includes PPA. The CAG report, 2011 and PPRA report, 2011 revealed the following weaknesses of procurement functions; non-submission of performance bonds, contracts not vetted by Attorney General, non-deduction of retention monies, inadequate variation orders, improper extension of contract period and alteration of the contract price, Procurement made without tender board approval, Procurement of goods and services without competitive bidding, Procurement of medical supplies without MSD approval, procurements of goods and services from unapproved suppliers, purchased items not recorded in the store ledger, non uses of systems developed by PPRA thus hindering effective monitoring of procurement activities, non-compliance with the requirement of law on submission of information to PPRA thereby hindering efficient delivery of PPRA services, nonsubmission of periodic reports thus hindering effective monitoring of procurement activities; and Poor record keeping that jeopardize effective monitoring by PPRA, weaknesses in contract management by PEs leading to time and cost overruns, inadequate staffing, lack of competency staff and inadequate office facilities. Many of the weaknesses were attributed to the lack of competent staff. Since the non-compliance of LGAs procurement functions' was caused by the lack of competent staffs, CAG and PPRA recommended the need for the capacity building to the LGAs procurement practitioners. Apart from the shortage revealed by CAG and PPRA also procurement field is not static, always it changes in response to markets, legislated requirements and emerging practices, therefore, being updated on procurement functions is inevitable because it will eliminate the tendency of cut and paste. Despite the challenges identified and the dynamics of procurement functions, LGAs do not always provide proper training on procurement policies and practices to their Council/Board, senior management and staff at the right time. Many of the reports revealed that LGAs is willing to conduct capacity building to its staff the main challenges is the lack of funds and lack of procurement training priority in the MTEF CAG, 2010/ 2011 and PPRA, 2011). Following the recommendation of the statutory organs regarding the weakness realized, especially in addressing the issues of capacity building, the government of the United Republic of Tanzania in collaboration with the government of The Kingdom of Belgium in the year 2012 have agreed to form The Enhancement of Procurement Capacity of Local Government Authorities‟ project (EPC-LGAP). It the project of capacity building of five years starting from May 2013 to May 2017, which supports reform under the Public Procurement Act (PPA) of 2004 and its subsequent amendments starting from May 2013 to May 2017. It had covered four regions namely; Coastal, Dodoma, Kigoma and Tanga region of which twenty-eight LGAs were involved in the project. The selection criteria involving the four regions to the project were based mainly on the low compliance of procurement matters of the respective regions based on PPRA compliance audit report, CAG reports of the previous years and BLS, EPC-LGAP, 2012. The aim was to enhance sustainable procurement capacity at local government level by ensuring that; systems and structures of government uphold the rule of law and are democratic, effective, accountable, predictable, transparent, inclusive and corruption free at all levels. In order to meet its objectives, project had implemented many of the activities includes; Development & dissemination of training materials, Development of professional courses, Establishment and provision of ToT training at district (HLG) level, Development of Operation Manuals, Provisions of Professional Trainings, Workshops, and Action Researches, disbursement of office tools and Technical assistant specifically on job training through follow-up mission. As mentioned above, the project ceased on operations on May 2017, but since its cessation, there is no published research conducted to evaluate the impact of EPC-LGAP in LGAs procurement process, although the project had conducted follow-up and internal evaluation assessment regarding the procurement status before and after the intervention of the project. Therefore research on the evaluation assessments of capacity Programme on the Performance of LGAs International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 23 Procurement Functions is called. The significant of the study is to inform stakeholders about outcomes, baseline description for follow-up projects and strengthening future approaches to capacity building. 2. LITERATURE REVIEW 2.1 Public Procurement PPA 2011-S.3, Defines "Procurement" as "buying, purchasing, renting, leasing or otherwise acquiring any goods, works or services by a procuring entity spending public funds on behalf of a ministry, department or regional administration of the Government or public body and includes all functions that pertain to the obtaining of any goods, works or services, including description of requirements, selection and invitation of tenderers, preparation and award of contracts;". Procurement as a function should ensure acquisition of the right goods (equipment, material, consumables), works (construction, repairs, rehabilitation), and services (individual consultants, consulting firms, training, workshops) required to satisfy certain needs at the right time, from the right supplier or service provider, in the right quantities, in the right quality, and at the right price. Public procurement accounts 10% – 30 % of GNP, other statistics show that Public procurement accounts for about 20% of government expenditure worldwide in Tanzania it accounts for about more 45% of the Tanzania annual, URT budget (2016). 2.2 Procurement Process The standard public procurement cycle incorporates three main phases: pre-tendering, tendering, and contract management, with each phase incorporating specific steps OECD (2016). 2.3 Methods of Procurements Public procurement enables Public Institutions to procure inputs which are vital for their operations and investments. The procured inputs can be in the form of; works, goods, consultancy and non-consultancy, PPA 2011-S.3. 2.4 Guiding Principles of Public Procurement in Tanzania The public procurement principles encompass; economy, efficiency, integrity, accountability, transparency and competition, honesty and fairness. The overall objective of the principles of public procurement system is to provide value for money to the Government. Procuring entities shall, in the execution of their duties, strive to achieve the highest standards of equity, taking into account-equality of opportunity to all tenderers; fairness of treatment to all parties; and the need to obtain the best value for money in terms of price, quality and delivery, having regards to prescribed specifications and criteria PPR, 2017. 2.5 Stakeholders of Public Procurement Stakeholders are those who stand to benefit from the results of public procurement, including those interested in the process and who might be affected, directly or indirectly, by a particular procurement action. The difference between actors and stakeholders is primarily participation. Actors play an active role in the procurement process, while stakeholders a more passive role. Actors are also stakeholders because of the benefits they derive from the use of public goods and services. 2.6 Tanzania Local Government Authorities Local government authorities is a government tier of a country operating at a local level functioning through a representative organ known as a council, established bylaws to exercise specific powers within a defined jurisdiction (Warioba,1999). It was established over 100 years ago since the periods of; the pre-colonial period, the colonial era, the period after independence up to 1972, the period between 1972 up to 1984 and the period between 1984 up to now (Mustafa, 2008). Its objectives are to; maintain law, order and good governance, promote the economic and social welfare of the people and ensure effective and equitable delivery of qualitative and quantitative services to the people within their areas of jurisdiction (URT constitution, 1977 Section 146). 2.7 internal setup of LGAs with Respect to Procurement The PPA 2011 provides the procedures on how procurement functions should be handled using the organs established within the PEs that are Accounting Officer (AO), Tender Board (TB), Procurement Management Unit (PMU), Evaluation Committee (EC), User Departments (UD) and inspection and Acceptance Committee (IAC). 2.7.1 The Finance Committee It the budgeting approving authority, they are required to approve the names of the members of the TB and overseeing contract implementation through inspection of project works and goods received. The role of the Finance Committee is to oversee the procurement function to ensure that complies with the laws PPA 2011-S.33 (2) & (3) and PPA 2011-S36 and GN. 330-R.17. 2.7.2 The Accounting Officer (AO) In every PE, PPA 2011-S.48 (1) tasks the AO to ensure that the execution of the procurement process within the organization is smooth and within the requirements of the law and regulations, failure of which s/he shall be accountable PPA 2011-S.36 (3) & (4). 2.7.3 Tender Board The function of Tender board (TB) is to approve tendering and contract documents. TB deliberations for the approval of the award of the contract depends on the provisions of the International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 24 tendering documents. Similarly, TB approval of variations, addenda or amendments to ongoing contracts depends on the provisions of the contract documents. Therefore, if the job of approving the tendering and contract documents were done properly by the TB, there will be no controversy when approving tendering, PPA 2011-S.36 (2) & (3) and GN. 330R.7. 2.7.4 Procurement Management Unit The function of PMU is to manage all procurement or disposal activities of the PE except adjudication and the award of contracts and to support the functioning of the TB. It is the unit responsible for handling all procurement matters on behalf of other departments within the organisation. The procurement unit must be staffed with procurement professionals and may include staff with relevant technical skills, where a PE has a significant volume of specialised procurement or procurement requiring significant technical input PPA 2011-S.37 and GN. 330-R.24 & R.25. 2.7.5 User Department Initiate procurement requirements, disposal by tender, propose technical specifications to the Procurement Management and forward them to the Procurement Management Unit PPA 2011-S.39 and GN. 330-R.26. 2.7.6 Tender Evaluation Committee Responsible for evaluating tenders. The members of the evaluation committee are required to be at least three including the chairman and are appointed by the AO upon recommendation by the PMU, PPA 2011-S.40, PPRA 2014, and GN. 330-R.27. 2.7.7 Inspection and Acceptance Committee It is responsible for inspecting good, works and services delivered for acceptance by PE to ensure that they meet the specified quality requirements. 2.8 Compliance Audit Indicators The compliance audit indicators involves the following criteria; Assessment on institutional setup and performance (TB, PMU and internal audit unit and User Department) weighting 10, Appropriateness of preparing and implementing the Annual Procurement Plan (APP) (10), Appropriateness and efficiency of tender process (from preparation of tender documents to communication of contract awards) (20), Appropriateness of contract preparation, formation and implementation (40), Assessment on the management of procurement records (10), Assessment on the implementation of systems prepared by PPRA (10) and Penalty for mishandling bidders‟ complaints (-10). A score of 80 100 indicate satisfactory performance meaning that there is sufficient assurance that most requirements of PPA comply, though few observed weaknesses required to be addressed, score from 60 79 it show fair performance explain that, although most of the procurement comply with requirements of PPA, there are significant weaknesses that need to be addressed by the Management while a score of 0 59 indicate poor performance meaning that most of the procurement does not comply with the requirement of PPA therefore urgent management action is required to address the observed weaknesses in order to minimize the effects PPRA, 2017. 2.9 Value for money audit indicators Planning, designing and tender documentation is weighting 20, Procurement processing (10), Contract Implementation and Administration (20), Quality & quantity of executed works, delivered goods or services (40), and Project completion and closure (10). A score of 75 100 indicate satisfactory performance, meaning that there is sufficient assurance that project objectives and VFM are likely to be achieved, although the project is exposed to some risks. The score of 50 74 indicate fair performance meaning that, although most of the project objectives are likely to be achieved there are significant weaknesses that need to be addressed for the project to realize VFM while a score of 0 49 reveals poor performance meaning that most of the project objectives are unlikely to be achieved because key risks are not being managed effectively therefore urgent and significant management action is required to address the observed weaknesses to minimize the effects PPRA, 2017. 2.10 Capacity building Capacity building is integral to the country efforts in fighting the challenges facing procurement functions in the world. It is what we do and how we do our work. Capacity is defined as, ―the ability of individuals and organizations or organizational units to perform functions effectively, efficiently and sustainably. Capacity building is an evidencedriven process of strengthening the abilities of individuals, organizations, and systems to perform core functions sustainably, and to continue to improve and develop over time FY, 2012. 2.11 Evaluation assessment of project intervention Evaluation can play a significant role in contributing to effective performance management. It can strengthen accountability, promote lesson learning and provide reliable information for management to use in decision making in relation to policy formulation and programme implementation. Many of the evaluation assessment of the impact of project intervention is mainly use before/after and/or with/without comparison London, 2005.). 2.12 An empirical review of the Capacity building in procurement European bank, 2012, in its report, observed that capacity building in procurement it provide a positive improvement of procurement performance. The report shows that, after the training the following of procurement indicators has improved such as; a clear legal institutional framework that removes uncertainties of the market, the availability of quality legal advice to support procurement decisions, the use of standard forms for local procurement to facilitate consistency, the clarification processes that are properly recorded and handled quickly using e-mail, the production of tender evaluation reports that are clear and plainly explain the reasons for disqualification of contractors, clear procurement laws and regulations, adequate filing techniques, periodic procurement planning, evaluation International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 25 criteria that adhered to terms and conditions in the tender documents, award to the lowest evaluated and competent tenderer and hold no negotiations, most disagreements solved amicably and early in the process, availability of skilled contract managers. 1.13 Theoretical Framework of Public Procurement Performance The diagram below shows the theoretical framework of the indicators that influence the satisfactory performance of procurement if complied according to the laws and regulations LGAs will attain satisfactory performance. 3. RESEARCH METHODOLOGY Methodology -doing qualitative as well as quantitative periodic assessment using appropriate country-level mechanisms. 3.0. Introduction The research methodology is the systematic way used by a researcher to solve research problems. It includes steps that are generally adopted by a researcher in studying his/her research problem along with the logic behind them (Kothari, 2004). The study was conducted to evaluate the impact of EPC-LGAP in the LGAs procurement in Tanzania, using a case study of 8 LGAs of four regions; Coastal, Dodoma, Kigoma and Tanga region. Therefore, this chapter deals with the methods and strategies used to conduct this study. It describes the area of the study, population, sample and sampling techniques and data collection techniques and analysis. 3.1. Research Design The research started by reviewing internal and external documentation such as; PPRA audit reports, CAG reports Project follow-up evaluation report. The research was adopting a descriptive and explanatory type, hence data collected was both qualitative and quantitative. The research was designed to allow for triangulation and data validity by using multi-methods for data collection from those key stakeholders. Therefore the research was conducted in three stages; i. In-depth interviews with officials responsible for LGAs. This helped the researcher to get a picture of important contextual issues, ii. Questionnaires were administered to senior officials from the sampled institutions. This enabled the collection of data in a systematic manner and facilitated the process of compiling, classifying and summarizing the information in a meaningful way and iii. Finally, there were some follow-up interviews and Focus Group Discussion (FGD) to all LGAs to get clarification on some findings. For these, a semistructured interview approach was applied. International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 26 3.2. Data Types and Sources The research collected both qualitative and quantitative information. Both primary and secondary data were collected for primary data, the researchers intended to know the current situation and perceptions of the people who were interviewed by using in-depth interviews, questionnaires and follow up the interview as described in 3.1. For secondary data, the researchers intended to get both the findings of other researches and LGAs procurement practices reports that have been done already in order to know the current situation. The primary data helped to get answers to specific questions that are designed to capture specific issues from respondents, especially those issues that could not be obtained from the secondary information. While the secondary data helped to reduce costs and time of doing the research by utilizing the information already collected. 3.2.1 Questionnaire Questionnaires are widely used in collecting structured information for different purposes. A total of 50 questionnaires was administered to people working in the selected microfinance institutions. Questionnaires were very useful in drawing accurate information from the respondents in a logical sequence. Questionnaires (Appendix 1) were developed to capture information about the status of LGAs procurement before and after the intervention of the project. The questionnaire is one of the most widely used survey data collection methods. In this study, both closed and open questions were used so as to get a standardized response from respondents. 3.3 Sampling and sampling procedures The sampling technique in this study was random sampling and purposive sampling. According to Dooley (2001), random sampling is one of the best methods for assuring that all elements in the sample have an equal chance of being chosen. Each region was represented by two LGAs whereby the simple random sampling procedure was used and also the council management team was selected randomly. In addition to that, the purposive sampling procedure was adopted to select staff from some key office who participated in-depth interviews such as District Executive Directors (DED‟s), Procurement management units (PMU), internal audit, human resources, planning officer, registry office and works and water engineering offices. 3.4 Study Area and sample size The study was conducted in the four regions to the eight LGAs in the year 2018. The study involved the sample size of 240 respondents, of which 224 respondents equivalents to 93% responded the circulated questionnaires while the remaining 16 equivalents to 7% were not returned the circulated questionnaires. 3.5. Data Analysis Plan Data Collected were categorized and coded according to a Predetermine coding scheme. An effort was made to code the data at the point of collection to simplify work during the analysis stage. Descriptive data were coded after data collection since it is difficult to do so before due to the diversity of possible responses (Saunders et al 2003). The data were then entered into the data analysis computers for analysis using Microsoft Excel software. Processed data and the results were summarized and presented using appropriate statistical methods such as tables, Charts or graphs depending on data type and the important aspect in it. 3.6 Reliability and Validity of Measurements Reliability means consistency and stability of an observed scored from a measurement scale. Reliability occurs when the obtained score is free from random error (Saunders, et. al., 2009). It is ensured by having a pilottesting and an interviewer-administered questionnaire to guide the interview rather than the "drop and collect later" approach (Kothari, 2009). The study had observed, the question as also has used an interview administered method. Validity is concerned with whether the findings are really about what they appear to be about (Saunders, et. al., 2009). Meaning that, the aspect interviewed is the one supposed to be interviewed and respondent interviewed is the one proposed to be interviewed of which the questions and respondents is the one who included in the study respectively. The people who are interviewed are the real practitioners of LGAs procurement practices as the study had interviewed the staff of the respective regions and LGAs. Therefore, because the study is mainly on evaluation the assessment of project intervention to make the study valid, the following international evaluation principle and standards have been observed; Objectivity, Independence of evaluators, Participation of all parties concerned in the entire process, Transparency and Focus, Reliability. To ensure the objectivity of the exercise the evaluation assignment must be clearly defined and focused. Also, the Results, conclusions and recommendations need to be supported by evidence and must be comprehensible. 4. PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 4.0. Introduction This chapter provides presentation, analysis and discussion of findings on Evaluation assessments of Tanzania LGAs procurement process after the intervention of EPC-LGAP. It provides an interpretation of the main issues revealed in this study and also provides the researcher‟s views on each of the issues revealed. It provides the linkage between objectives and findings of the study, which will enable the researcher to provide good recommendations in the next chapter. 4.1. Profile of the Respondents The study involved 224 respondents out of that 156 (70%) were males while 68 (30%) were female as illustrated in table 4.2 below: Table 4.1: Respondents by Gender Category (Gender) Frequency Percentage Males 156 70% International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 27 Females 68 30% Total 224 100 4.2. Age of the Respondents The distribution of responses based on age group is shown in table 4.2. The table revealed that majority of the respondents (64%) were within the age of 40-60 years, 35% were within the category of 25-40 years while 2% were within the category of below 25 years. This implies that in a few years later many of the staff at the LGAs will be retired from the public services, therefore, the office responsible for recruitment is required to think about the gap of staffing which is expected to occur at LGAs. Table 4.2: Age group distribution of respondents Category (Age) Frequency Percentage 40-60 143 64% 25-40 76 34%, Below 25 5 2% Total 224 100 4.3. LGAs involved in the study The study involved 8 LGAs from four regions namely Coastal, Dodoma, Kigoma and Tanga and the assessment was done to determine the number of respondents from each LGAs. The study revealed that 31 respondents (13.8%) were drawn from Korogwe DC, 31 (13.8%) Kondoa DC, 30 (13.4%) Bagamoyo DC, 29 (13%) Uvinza DC, 27 (12.1%) Korogwe, 26 (11.6%) Chemba DC, 26 (11.6%) Kigoma DC while 24 (10.7) of the respondents are from Kibaha DC as indicated in figure 4.4 below: Table 4.3: LGAs involved in the study Name of Region Name of LGAs Frequency Percentage Coastal Bagamoyo DC 30 13.4% Kibaha DC 29 13.0% Dodoma Chemba DC 26 11.6% Kondoa DC 31 13.8% Kigoma Kigoma DC 26 11.6% Uvinza 24 10.7% Tanga Korogwe DC 31 13.8% Korogwe TC 27 12.1% Total 224 100% The study shows that some LGAs were represented by few respondents because of the double responsibility as during the field mission some of the key staff were out of the offices for other commitment like field project supervision and other unavoidable circumstances. Even though some staff were in the field work, but LGAs staffs distribution is fluctuating some LGAs possess a large number of staffs while others possess a small number of staffs. During the discussion, with the offices of human resources management, some of the experienced human officers revealed that LGAs located at the remote area suffer the scarce of the staff because many of the staffs are willing to work at town areas than rural areas. After the detailed discussion respondents argued that, the government should think to introduce a control mechanism that will not allow some LGAs to have a large number of staffs and others to have a small number of staffs. The details of the names, positions, departments, age, experiences and other important issues like offices space and facilities were also recorded. 4.4 Awareness of Project Interventions in the LGAs. Majority of the respondents were aware of the project intervention as 200 respondents out of 224 respondents equivalents to 89% said YES while 24 (11%) said no. For those who said yes they mentioned two areas where the project intervened such as; office equipment and training. In the case of training, they mentioned the following specific training that was provided by project includes; Application and the use of PPA & PPR, Tender proceedings, procurement records keeping, Procurement reporting, Uses of EPICOR and PMIS, Contract management and administration, Contract closure, Procurement audit. In the case of office equipment, they mentioned equipment like; computers, photocopy machines, printers and other accessories. The researcher observed that for those who said no most of them are newcomers to the respective LGAs because for example one respondent during the discussion she said that "I was not aware of this project because am new in this LGAs can I withdrawal my questioner?" Table 4.4: Awareness of Project Interventions in the LGAs The degree of awareness of project interventions in your LGAs Frequency Percentage Yes 200 89% No 24 11% Total 224 100 4.5: Number of LGAs practitioners of procurement attained training Table 4.5 shows that, total number of 758 of LGAs procurement practitioners includes Member of finance committees, AO, PMU, Internal Auditor, Registry, User Departments, Lawyers, and other lower level staff of Local Government Authorities participated training that was financed by the project in the following areas; Contract Management/Administration and closure, use and International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 28 application of PPA/PPR, TOT training skills, pre-tendering and tendering process, Procurement audit Skills, procurement record keeping and reporting, uses and application of APP, uses of EPICOR, PMIS and other related systems. During the discussion, respondents attended the training said that the training was very useful as the training provider was using different methodologies to make sure that all participates are acquire the intended training goal. Table 4.5. Number of LGAs practitioners of procurement attained training S/N Names Of LGAs Frequency Percentage 1 Bagamoyo DC 115 15% 2 Kibaha DC 103 13% 3 Chemba DC 104 14% 4 Kondoa DC 102 13% 5 Kigoma DC 63 9% 6 Uvinza 57 8% 7 Korogwe DC 113 15% 8 Korogwe TC 99 13% 758 100% 4.6 Assessments of LGAs procurement process after the intervention of EPC-LGAP 4.6.1: Improvements in the way of doing things in procurement Table 4.6.1 shows that 91% of the respondents agreed that the LGAs procurement functions have improved after the intervention of EPC-LGAP while the remaining 9% disagree with the performance of procurement function at LGAs levels. During the discussion, respondents said that there is a substantial reduction against procurement complaints from stakeholders while others complained that yet the EPICOR and PMIS is not performing well as the system is too slow. In addition to that, there is unnecessary delaying from the office of the Attorney General (A.G) during contract vetting. Table 4.6.1 Improvements in the way of doing things in procurement Status of LGAs procurement Frequency Percentage LGAs procurement is improved 204 91% LGAs procurement is not improved 20 9% Total 224 100 4.6.2: Use and application of PPA and PPR in LGAs Table 4.6.2 shows that 212 (95%) of respondents agreed that the use and application of PPA and PPR in LGAs have improved while 12 (5%) not satisfied with the application of PPA and its PPR. During exist meeting respondents mentioned the areas which have shown significant positive impact such as; Fulfillment of responsibilities, observing power and authority boundaries specified under PPA, compliance with the law in tender processes, award and contract compilation and documentation, procurement records management and reporting and use of appropriate approving authorities, use of PPRA standard documents and reporting formats. For those who were not satisfied with the improvement attained have argued that, yet LGAs procurement is surrounded by unethical cases such as; corruptions and complaints received through councils‟ suggestion box. Table 4.6.2 Assessment of use and application of PPA and PPR in LGAs Status of the use and application of PPA and PPR Frequency Percentage Improve 212 95% Not improved 12 5% Total 224 100 4.6.3: Assessment of use and application of Procurement Planning Procurement compliance encompasses the use and application of PPA/PPR in procurement planning, development of procurement plan, management of the implementation of annual procurement, reporting, review and updating procurement plans. 100% of the respondents appreciate the way the procurement planning is done at the LGAs levels most of them said that nowadays annual procurement plans are properly compiled and progress reported using PPRA formats and submitted using PMIS in a monthly and quarterly basis. In addition to that they said that even though, there are significant positive results some LGAs not updated their annual procurement plan based on reallocation or additional funding received and it lacks lower level procurements based on direct disbursement to cost centers. Also, actors failing to adhere to the procurement plan due to lack of funds and prefer using imperest method thus deviating from selected procurement methods and thresholds without prior approvals. Table 4.6.3: Assessment of use and application of Procurement Planning Status of the uses and application of Procurement Planning Frequency Percentage Improve 224 100% Not improved 0 0% Total 224 100 4.6.4: Assessment of use and application of Contract Management and Administration Table 4.6.4 shows that 85% of the respondents acknowledged that there is a significant improvement of International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 29 procurement contact management at the LGAs because more than 90% of the contracts use PPRA documents while 5% disagree with improvement contract management and administration. For respondents who disagreed with the improvement they said it because it lacks proper records recording of retention monies, lack liquidated damages imposed on contractors, lack quality assurance kit and poor contract management arrangements/capacity at the lower level. Table 4.6.4 Assessment of use and application of Contract Management and Administration Status of the use and application of Contract Management and Administration Frequency Percentage Improve 190 85% Not improved 34 15% Total 224 100 4.6.5: Assessment of use procurement record keeping and reporting Procurement record keeping and reporting are among the indicator applied by the PPRA once conduct procurement audit. The study shows the improvement of LGAs procurement record keeping and reported as 98% of the respondents agreed that the record keeping at LGAs has improved after the intervention of EPC-LGAP while 2% of the respondents say no they are not happy they the procurement record keeping are done in their LGAs. During the discussion, respondents said that nowadays at LGAs level, Records Management Assistants stationed to PMU office and there is a special room for procurement records, this has attributed the availability of proper filled management. For those who disagreed with the improvement, they raised some concerns such as; inadequate space, lack of controls in the movement of files and removal of records in files. Table 4.6.5 Assessment of use procurement record keeping and reporting Status of the use of procurement record keeping and reporting Frequency Percentage Improved 220 98% Not improved 4 2% Total 224 100% 4.6.6: Assessment of use and application of PMIS & Other Procurement Systems Table 4.6.6 shows that 76% of the respondents acknowledged the improvement achieved on the uses of PMIS and other systems while 24% disagreed. For those who agreed on the performance of the uses of PMIS and EPCIOR, they said that 100% of LPOs are processed through EPICOR while in addition to that reports and other important documents are submitted to the PPRA through PMIS. For those who disagreed they claimed that up to now the system is not installed things which contribute to the preparation of LPOs and submission of reports to PPRA in manually. Table 4.6.6 Assessment of use and application of PMIS & Other Procurement Systems Status of the use and application of PMIS & Other Procurement Systems Frequency Percentage Improve 170 76% Not improved 54 24% Total 224 100% 4.6.7: Assessment of Tender Process Management Tender process management is an important Compliance Procurement Indicator (CPI) it involves; the use of PPRA standard documents and procedural forms, Evaluation, Using of appropriate approving authority threshold and methods as per procurement plan. Table 4.6.7 shows that 83% of the respondents realized that there is an improvement of the way LGAs behave in tender process management after the intervention of the project while the remained 17% are not satisfied with the situation of the tendering process at LGAs particularly lower level LGAs (village, CBO‟s and facility levels). During discussion some of respondents revealed some weakness in tendering process such as; the use of imprest instead of selected methods in APP, lack of awareness on appropriate use of TB special resolutions, and challenges in the uses of TEMESA, MSD and TBA services and limited awareness on how to use TB special resolutions in award of tender. Table 4.6.7 Assessment of Tender Process Management Status of Tender Process Management Frequency Percentage Improve 185 83% Not improved 39 17% Total 224 100% 4.5.8: Assessment of Institutional setup and arrangement Assessment of institutional setup and arrangement is the CPI that elaborate on the roles and responsibilities of the job family in the management of the LGAs procurement process. Table 4.6.8 indicates that 100% of the respondents agreed that the institution set up and arrangement at the LGAs level had significantly improved since the Working relationships International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 30 have improved as each actor observe role boundaries. During discussion it was explained that, although the institutional set up had improved significantly, but there is some weakness hindering the LGAs procurement system such as; Interference among actors in the decision-making process, lack of office attendants to support distribution of files in the main registry, Premature termination of the tender board and staff deployment and transfer. Table 4.6.8 Assessment of Institutional setup and arrangement Status of Institutional setup and arrangement Frequency Percentage Improve 224 100% Not improved 0 0% Total 224 100% 4.5.9: Assessment of Procurement Monitoring/Supervision by the RAS/ LGAMSS to the LGAs The study also was evaluating the tendency of RAS/LGAMSS weather is conducting regular supervision as required by the laws or not. Table 4.6.9 shows that 62.5% of the sample LGAs has supervised by the RAS/LGAMSS while 37.5% has not. During the discussion, some respondents revealed that the supervision was useful because it has increased the levels of compliance at LGAs and sometimes the team provided some guidance on how to solve procurement critical issues. Table 4.6.9 Assessment of Procurement Monitoring/Supervision by the RAS/ LGAMSS to the LGAs Status of Procurement Monitoring/Supervision Frequency Percentage Conducted 5 62.5% Not conducted 3 37.5 % Total 8 100% 4.6.10: Assessment of application of procurement value for money Table 4.6.10 shows that many of LGAs their score of value for money before project intervention were below 57% indicating poor performance but, after the intervention of the EPC-LGAP, the score has remarkably increased to more than 82% indicating satisfactory performance with except Kondoa DC whereby it was awarded 72% indicating fair performance. During discussion it was observed that, the improvement attained was attributed by training which was provided by the project on the following areas; Uses and application of PPA & PPR, Preparation of APP, Tender proceedings, procurement records keeping and reporting, Contract management and administrations, Contract closure, use and application of EPICOR and PMIS, TOT training and Procurement audit skills. Table 4.6.10 Assessment of application of procurement value for money Name of LGAs Before EPC-LGAP Performance After EPC-LGAP Performance Improved Bagamoyo DC 43% Poor 88% Satisfactory 45% Kibaha DC 56% Fair 90% Satisfactory 44% Chemba DC 43% Poor 89% Satisfactory 46% Kondoa DC 43% poor 72% Fair 29% Kigoma DC 50% Fair 86% Satisfactory 36% Uvinza 43% Poor 80% Satisfactory 45% Korogwe DC 40% poor 89% Satisfactory 49% Korogwe TC 43% Poor 82% Satisfactory 39% 4.6.11: Assessment of procurement performance and compliance Table 4.5.11 shows that there is a significant improvement in the level of procurement compliance with all LGAs involved in this study. Before the intervention CAG report and PPRA revealed the compliance level of below 57% (poor) except Kibaha DC and Korogwe DC before the project intervention while after project intervention the score had increased above 75% (fair) with the exception of Kondoa DC, whereby its score of compliance is increased to 70% from 50% as revealed in table 4.6.11. During discussion it was observed that the improvement attained was attributed by training which was provided by the project on the following areas; Uses and application of PPA & PPR, Preparation of APP, Tender proceedings, procurement records keeping and reporting, Contract management and administrations, Contract closure, use and application of EPICOR and PMIS, TOT training and Procurement audit skills. Kondoa DC has International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 31 been awarded a low score compared to other LGAs because of political interference from elected leaders. Table 4.6.11 Assessment of procurement performance and compliance Name of LGAs Before EPC-LGAP Performance After EPC-LGAP Performance Improved Bagamoyo DC 50 Poor 77 Fair 27% Kibaha DC 62 Fair 79 Fair 17% Chemba DC 50 Poor 77 Fair 27% Kondoa DC 50 Poor 70 Fair 20% Kigoma DC 54 Poor 78 Fair 22% Uvinza 50 Poor 76 Fair 26% Korogwe DC 61 Fair 76 Fair 15% Korogwe TC 56 Poor 78 Fair 22% 4.7: The willingness of LGAs willing to continue with procurement CB for sustained improvement of their procurement performance Table 4.7 shows that 100% of LGAs is willing to continue with procurement capacity building since it has seen the benefits. Apart from the willingness shown by the LGAs to sustain the improvement, LGAs internal capacity to sustain the improvements is very limited because of the following factors such as; lack of funds for training due to the budget constraints, resistance from budgeting approving authority and lack of procurement training priority in the MTEF. In addressing the problem of lack of funds some LGAs started mobilizing resources from the Urban Local Government Strengthening Programme (ULGSP) as alternative means. Table 4.7 Willingness of LGAs to continue with procurement CB for sustained improvement of their procurement performance Name of LGAs Frequency Percentage Is willing 8 100% Is not willing 0 0% Total 8 4.8: challenges hinder attainment project objectives Even though the study revealed the positive impact of the capacity building on LGAs procurement functions however the following challenges were identified during the study such as; limited office space, change of staff and leadership, unpredictable flow of funds, political interference and the Lack of integrity, corrupt and fraudulent practices among public officers and bidders, thus hindering attainment of VFM in procurement. 5. CONCLUSION AND RECOMMENDATION 5. 1 Conclusion The purpose of the EPC-LGAP was to improve LGAs procurement functions within the country through capacity building programs. The results indicate that many of the LGAs procurement practitioners have attended training that was provided by the project. Majority of them have improved their knowledge and competency in the procurement process. A considerable number of participants have applied the knowledge at Application and the use of PPA & PPR, Tender proceedings, procurement records keeping, Procurement reporting, Uses of EPICOR and PMIS, Contract management and administration, Contract closure, Procurement audit. Efforts have been made to influence other stakeholders in procurement, mainly through the establishment of Council‟s TOT because the establishment of TOT many of the respondents have managed to integrate the knowledge in their work, though the lack of funds has hindered their effort. Generally, the capacity building has improved the changes in behaviour, relationships, actions and activities of the LGAs procurement. The study concluded that capacity building is the key factor that determines the improvement of LGAs procurement functions includes; appropriateness of preparation and implementation of Annual Procurement Plan, appropriateness and efficiency of tender process, appropriateness of contract preparation, formation and implementation, appropriate implementation of systems prepared by PPRA, appropriate handling of bidders‟ complaints, and appropriateness of institutional setup and performance. 5.2 Recommendation The study revealed that the intervention of the capacity building program ascertained a significant positive impact on the way LGAs are executing procurement functions. Because of the lesson learned, therefore, LGAs are advised to budget enough funds for capacity buildings. International Journal of Academic Accounting, Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 4, April – 2019, Pages: 21-33 www.ijeais.org/ijaafmr 32 The law is mandated PPRA to overseas and to provide capacity building to the procurement practitioners but, the study has revealed that PPRA is providing training to the stakeholders at the costs of stakeholders. Therefore PPRA is advised to reverse their tuition fees because it seemed that the tuition fees charged by PPRA are very high things hinder many LGAs to finance their staff once required to attend procurement training. PPRA is mandated to audit all PEs over the country but, the number of PEs managed to be audited by PPRA is low due to the lack of funds and lack of sufficient staffs. Therefore PPRA is advised to recruit competent enough staff and enough budget that will facilitate them to audit many PEs. Mismanagement of funds and unethical issues, including corruption are among the factors affecting the performance of LGAs procurement functions. Therefore, LGAs are advised to recruit smart staff that has no element of the unethical manner in financial management. Apart from that PCCB is advised to open eyes on LGAs procurement functions by ensuring that the procurement process complies with the laws. Unpredictable funds flow is the factor that hinders the effective implementation of the LGAs annual procurement plan. Therefore central government and donors are advised to transfer funds on the due date. Change of staffs and leadership is also has identified that is the factor that affects LGAs procurement functions. Therefore responsible ministry is advised to avoid unnecessary transfer particularly to the top member of the council management team (DED and HODs). Following the interference from the politicians on LGAs procurement process, the government is recommended to issue regular circular instructing politicians particularly councilors to not interfere the procurement process. Limited space and office computer the study identified that most of LGAs are suffering from limited office space and lack of office facilities like computers, photocopies and weak interment. Therefore the government is advised to budget funds for procurement of permanent offices and office facilities specifically to the new LGAs whereby most of them are use renal buildings. REFERENCES 1. Baseline Survey Enhancement Procurement Capacity Local Government Authority Project, December 2012, Dar es Salaam. 2. Controller and Auditor General (CAG) (2017): Procurement and Contract Management, General Report on LGAs for 2016/2017, A Report of the Controller and Auditor General of the United Republic of Tanzania, Dar es Salaam. 3. 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