COLLEGE OF BUSINESS EDUCATIONDEPARTMENT: PROCUREMENT

TOPIC: FIELD ATTACHMENT

A CASE STUDY: MINISTRY OF FINANCE

PREPARED BY:

SUBIRI J. MHEZA

OD.1042F/D1.2012

ACADEMIC YEAR: 2012/2013

SUPERVISED BY: SHARIF ABDUL

A FIELD ATTACHMENT REPORT SUBMITTED IN A PARTIAL FULFILMENT OF

THE REQUIREMENT FOR THE AWARD OF ORDINARY DIPLOMA IN PROCUREMENT

AND SUPPLIES

JUNE 2013

DECLARATION

I hereby declare in the senate that this report is my own work

and my own effort. It has not been presented at any higher

learning institution for the academic award.

Student signature S. Mheza Date 25/08/2013

SUBIRI J. MHEZA,

Supervisor signature……………………… Date…………………….2013

SHARIF ABDUL,

DEDICATION

This report work is dedicated to a very special, loving and

highly inspiring person in my life, my aunt REGINA MUHEZA

NTAHONDI and the most important part of my life my family

especially the most loving, supportive and admirable father

JOSEPH MUHEZA NTAHONDI. Their love, encouragement and faith to

me made confidence in my life, may our good Lord grant them

their heart desire amen.

COPYRIGHT

All rights reserved. Not part of this work should be reproduced

or transmitted in any form by any means, electronically,

photocopy, mechanical, recording or otherwise without the

permission from the author or the college of business education

on behalf.

©SUBIRI J. MHEZA.

June 2013

All rights reserved

ACKNOWLEDGEMENT

All the glory and praises is to the almighty God for his loving-

kindness and overstated grace for being good and granting my

life and all beautiful things in it from the beginning to the

end of writing this report.

However, my indisputable appreciation should go to Ministry of

finance; staffs from procurement management unit for their

mutual cooperation and support in the gathering of data and

making me feel as part of the organization during conducting my

fieldwork.

Staff and class mates and those of the college of business

education (C.B.E) were also most helpful and they deserve my

thanks particularly my group members.

Special thanks to my brother SHARIF ABDUL and PROSPER MUNISI for

all his effort and assistance during my filed work.

However, none of the above bears any responsibility for any

shortcomings in my work. Mistakes and misrepresentations, if

any, are entirely my own doings.

ABSTRACT

The main intention of Practical Training program was to provide an

opportunity of integrating theory and practice in which case

valuable experience in real life situation of what has been taught

in lecture rooms can be obtained.

The expectations were to develop skills and knowledge acquiring

during classes learning period into practical and to create

abilities and having new career attitude in areas of

specialization.

At this program a host organization was expected to receive new

ideas, use good different skills in solving problem, up to date

information, establish a closer links with the institute which will

finally create a conducive environment for assessing future

possible employment opportunity.

To the college practical training creates a closer links with

potential employers, knowledge generation from visits and students

reports and initiates opportunities for research consultancy with

employers.

CHAPTER ONE 1.0 History

Ministry of finance is one among the ministries that were

started after an independence in the year 1961. The first

Government that was created right after the independence

started its function in 1962, where by certificate of

responsibilities of each ministry was presented describing

responsibilities and duties of each ministry in government.

Ministry of finance passed through various changes in

leadership, aiming to increase its efficiency in monitoring

different governmental functions and activities. These changes

aimed at mainly in leadership area, responsibilities even also

the ministries name has been changing frequently in order to

suit accomplishment of responsibilities planned.

Different memories available shows that in different times

ministry of finance has being called; ministry of finance

(1962), ministry of finance and planning (1976), ministry of

country, planning and economic (1983), ministry of finance and

economics (2008) and ministry of finance (2011).

Since the year 1962 when the first government was formed after

independence till today, ministry of finance has been led with

12 ministers in different period of time and more than 10

assistant ministers, as it is today, election of assistant

ministers considered representation from all side of the union

of our country.

1.1 About the ministry

The ministry of Finance and Economic Affairs manages the

overall revenue, expenditure and financing or the Government of

the United Republic of Tanzania and provides the Government

with advice on the broad financial and economic affairs of

Tanzania in support of the government’s economic and social

objectives.

1.1.0 Vision and values

The Vision of the Ministry of Finance and Economic Affairs is

stipulated in the following statement:

High economic growth and macro-economic stability, sound

financial management and accountability achieved and sustained

The following were agreed to be the Core Values of the

Ministry:

Innovativeness

Professionalism

Customer focused

Commitment to work

Efficiency

Participatory management

Teamwork

Timely service delivery

Integrity

1.2 Role and Function of the ministry

The Ministry of Finance and Economic Affairs manages the

overall revenue, expenditure and financing of the Government of

the United Republic of Tanzania and provides the Government

with advice on the broad financial affairs of Tanzania in

support of the Government’s economic and social objectives.

The Ministry oversees budget preparation and execution. Each

year in June, He or She presenting the Budget Speech to

Parliament, which contains the Government’s fiscal revenue,

expenditure and financing policies and plans. The Ministry

monitors fiscal developments during the year and reports to

Parliament. The Ministry also formulates and manages revenue

policies and legislation that are presented to Parliament. Its

responsibilities include preparing the Central Government

budget; developing tax policy and legislation; managing

Government borrowings on financial markets; determining

expenditure allocations to different Government institutions;

transferring central grants to local governments; developing

regulatory policy for the country's financial sector in

cooperation with the Bank of Tanzania and representing Tanzania

within international financial institutions. The Ministry is

also vitally concerned with the performance of the Tanzanian

economy, international trade, monetary affairs and other

aspects of the global economy that affect Tanzania’s domestic

performance. Given the Ministry's wide-ranging advice and

policy role, Ministry officials work closely with officials in

other Ministries, agencies and departments to ensure that the

Government’s overarching poverty reduction strategies are

implemented and objectives attained.

Because the Ministry’s work directly affects all Tanzanians, it

is actively engaged in public consultations – examples include

the Task Force on Tax Reforms and the Public Expenditure

Review. The Ministry recognizes that an open, accessible

budget-planning process plays an important role in more

effective, responsive decision-making. This is an integral

element of the Ministry’s Client Service Charter.

1.5 Number of employees

MOF is committed towards employment policy that follow best

practices, based on equal opportunity for all employees in

respect of gender, race, religious, disability, Age or

marital status. Thus the ministry has about 800 employees in

all sections. The ministry recognizes the need for ensuring

fair employment practices in recruitment and selection, and

the retention and career development of staff. But the number

keeps changing because the available workers are not

sufficient to cover the all the tasks available at the

ministry offices, but recruiting new employees depends on the

budget of the Government.

1.6 Activities

The Ministry of Finance and Economic Affairs is a central

Ministry responsible for

Mobilization and allocation of financial resources,

formulation of fiscal and monetary policies, control and

accounting for public finances. Additionally, it is a

custodian of government assets and finally, responsible for

servicing of the public debt. In brief, our core functions

include: Revenue collection and expenditure management

Formulation of fiscal and monetary policies and strategies

Mobilization and management of External resources Management

of government property and public investments.

1.7 Level of technology

In the world today the success of any modern business

depends on how well the business manages its information and

its investment in Information Technology (IT). The level of

technology in the MoFEA varies from one section to another

while some have high technology other sections uses neither

too or low technology, all in all to some extent the

technology used in the MoFEA is high. There are Computer

applications and computer network/ internet service installed

in the offices which brings the simplicity in performing

activities and also it facilitates the staff to accomplish

their task in time.

In the accounting and finance department there is computer

system software known as Epicor, this system is installed in

all accounting and finance sections. The system is used to

prepare all forms of payments. Also another point is at the

entry exit/ gate where the security guards with the

assistance of card machine in connection to computer are

used to all members who enter the place so that to make sure

no one is getting in without of electronic key card. The

system is allowed if you have electronic card. Also the

surrounding environment is equipped with cameras for easy

monitoring of any actions taking place around the premises of

the MoFEA.

1.8 Customers of the organization

the organization is concerned with provision of services to

its customers, the MoFEA has a number of stakeholders such

as; International community, lenders, and donors, Ministries,

Departments and Agencies, (MDAs), and Local Governments,

Civil Society, Pensioners, Business Community & Investors

MoFEA employees, Office of the Controller and Auditor

General.

1.9 Strategic direction

As we cannot know the direction of the organization without

knowing the Vision and mission of the Ministry which are as

follows

The vision of the ministry

High economic growth and macro-economic stability, sound financial management

and accountability achieved and sustained.

The Mission of the Ministry is stated as:

 The mission of the Ministry of Finance and Economic Affairs is to achieve and

maintain high economic growth, macro-economic stability, sound financial

management through development of robust fiscal and monetary policies and

enhancing professionalism and promote the use of Information Technology (IT).

Thus the strategic direction of the ministry is set as according to the vision and

mission.

All though the ministry has many department

CHAPTER TWO

Introduction

This chapter is consisted with the findings. The findings of

the report are made up of the different activities done,

challenges and the relationship between the theory and the

actual practical. One department is used to report on the topic

presented.

s, I had a privileged of working in the procurement management

unit. The department working environments are conducive for any

professional worker and friendly. Works are performed in team

works also independently depending on the task on hand, but

both staff members and my fellow practical trainee were

cooperating in everything.

In the department the description of tasks and duties performed

are done by the budget officers according to the need of theday but mostly the wage bill reduction analysis is like thedaily routine work and the problems solving is done in teamworking by the budget commissioners with officers who are themost and important part in the department.

ACTIVITIES PERFORMED

2.1 Placement in the organization.

The MoFEA office has many departments including the procurement

management; according to the courses I am studying. I was

attached in procurement management unit of which it is the

field of my career. Despite of the department being one among

the departments in the MoFEA office, the department has its own

divisions/sections. The first day we had an orientation so as

to familiarize us with the working environment in the

organization. The internal supervisor instructed the main

sections for me to go about throughout my PT period which are

within the PMU in the organization; these are procurement

techniques, issuing of quotation and bids to suppliers,

receiving goods from suppliers, preparation or R.P.O, issuing

L.P.O to suppliers, issuing stock to user departments prepare

tender documents, tender opening, receiving schedule of

requirement from user department during preparation of APP,

entering stocks in to ledgers and call off order. The

department is headed by the director of procurement management

unit who oversees day to day activities of the procurement

management unit. I was able to work in all these sections

during the period of my PT training.

2.2 Tasks and duties performed in the organization

Most of duties which were done in the organization were routine

duties although rarely there were problem solving duties. The

duties were varying from one section to another but with the

cooperation of officers and colleagues in the particular

section I was able to tackle most of the works due to the fact

that upon the entry of each section I was given a short

description of the duties performed within the section. In case

of problem I sought assistance immediately to the respective

officers. Tasks and duties assigned and performed in those

sections in the Department can be analysed as follows:

Preparation of RPO

This was the first activity assigned to me; the activity

basically is one among the procurement cycle. RPO is a form

filled requiring the name and address of the supplier,

goods description, price per item and total amount of items

to be supplier and their unit of measure, of that we

register them in the RPO registry book, here we registry the

user department that’s who needs the goods ordered, the

suppliers name, the date of registering the form, and serial

number according where the last one ended example if it was

number 25 the last one registered you will continue with 26

and this serial number is written on RPO and bind with the

file that has a minute sheet from the user department

requesting for the goods.

Issuing of Quotation/bids documents to suppliers;

Quotations are bid documents prepared by the PE, bidders for

a certain come to take this quotations to guide them in the

bidding for the tender. I was in charge of issuing quotation

for sabasaba exhibition for vote 50 of 2013, suppliers were

altered to come and take quotation documents, were we had a

form with supplier company and a book for issuing tender

were bidders had to write company name, of the

representative ,signature , date and time. Bidders came to

collect quotation during work only and they had only a week

to return them for opening.

Receiving of quotation;

I received quotation for saba saba exhibition for vote 50 of

MOF 2013. Bidders/ suppliers who were serious and willing

returned bids in working hours and working days before the

deadline for the submission, the procedure here was a bit

different the registered themselves in receipt of tender

book and they was a form to filled as the field in the

receipt book but here they had a column to fill how many

envelopes they submitted. This form is used during the

opening of tender.

Entering stocks in to ledgers

After receiving stocks in the store, stocks are entered in

ledgers, for financial year July 2013 I had a task to enter

stock of FMIS into ledgers, here we have a form with stock

items, codes, price per item and total amount also quantity,

were write the item name on the file and code on minute and

in the file there is a ledger were we enter the opening

balance for the financial year July 2013.

call off orders

Receiving goods from suppliers

Issuing LP.O to suppliers

Issuing stock to user departments

Prepare tender documents;

In this activity we combine all necessary document that are

needed by the PPA 2004 and its regulation of 2005 to be

attached in the tender documents, this documents are written by

officers and we combine them, bind them ready to be issued by

to bidders.

Tender opening

Receiving schedule of requirement from user department during

preparation of APP

2.3 Work environment

The first day of my PT was both exciting and intimidating since

this was my first time working in a big organization. It is

among the organizations I admired to carry my practical

training with. I found that MOF office has friendly working

environment, and its employees were friendly, cooperative and

understanding.

I was assigned by my internal supervisor to pass through at

least each section so that I may get a short orientation about

offices as a result to familiarize me with the work in the

particular section.

Some of the duties I was assigned required me to work

independently example preparation of R.P.O. Team work in some

cases was inevitable for example for receiving of goods from

the suppliers, I and my fellow trainees, we did the works that

was given to us cooperatively . In some cases, I was given some

tasks without close supervision this was opportunity to me to

exercise my skills and improve my confidence.

2.4 Interest in tasks performed

All the duties that I performed during the time of my PT were

interesting to me because I was doing practically some of the

things that I was taught in class. Some of these tasks were

simple to perform while others were challenging such that I was

required some times to use theories I learnt in class. The

tasks I performed were highly related to my career in such a

way, that I managed to recognize some of my weakness and

strengths. For instance tender preparation, those documents

like bid security forms and other forms that I did not know

their importance; I was able to reason why they are important.

Some of the works demanded analytical skills and that they

needed creativity and self-initiative in performance but I was

able to accomplish those duties that which made me acquire a

good working experience in almost all areas concerning in my

course.

The practical training gave me the spirit that I’m ready to be

employed/ self employed in the field of procurement and

supplies management soon after completing my studies.

2.5 Measurement to the demand of duties

The assigned duties were too challenging and require creativity

skills and the use of PPA 2004 knowledge to be able to justify

or to know how to attempt them. This made me demand to know how

to reason things from the act and hence perform my duties

ethically.

2.6 Problems faced

Since Problems are inevitable, but honestly I didn’t face any

very difficult problems, most of the problems were minor such

problem are like

Bidders who came to submit bids without writing on their bid

envelopes the bid ID number, which made me and my colleague not

show if it was valid and hence helped them the id number of

their bids.

2.7 How the problem was solved and its recommendations

I solved the problems I faced from the assistance of staff

member particularly from procurement and supplies officers

where I was working and since it was a team work then I always

got whatever was challenging me.

In the manner I suggest to my beloved college (C.B.E) to give

chance for procurement and supplies students to participate in

procurement activities in the college this will help them even

in attempting their exams as exam questions are relevant to

what is done in the procurement world today.

2.8 Expectations before going for the training

Before going to the PT I was expecting that the work would be

so tough, complicated and challenging but I found out that some

of the tasks were simple and easy to accomplish. despite the

fact that they were some of the works that were difficult

My excitation with the PT Program drove me to make certain

expectations of which a lot were met although some were not,

because not all l learnt in class I practiced them only part of

them .I realized that I need extra training if I had to work in

other organizations, the main reason being the frequency such

as changing of technology and different technology that are

used in the organization.

But below are my expectation I had before having my practical

training

I thought that everything I learnt in class could be

practices in the field work

Little cooperation from my other fellows who were doing

their practical training

I also thought that English could be the only language

that I was to use as the media of exchange.

I thought that after the training I would be the expert in

the works that I was doing in which it happened but the

time was limited for me to be get to know everything and

also since we are only trainee the not every work done in

the offices we had to know or to do them

2.9 New things learnt in the practical training

From my practical training I learnt many things concerning

public procurement that I learnt theoretically most important

things is the officers were willing and helpful to elaborate

anything or question that was a procurement vocabulary to us,

PT students this enabled us when facing the same situation even

out of the office to be able to address it as a procurement

expert.

I learnt confidence that made me a really expert, no more fear.

2.10 Information Technology knowledge

Mostly I used computers in doing the works but some involved

networking and application of various computer programs and

software’s that I have never come across with before because of

that I was forced to ask for help as a result I was aware of

many IT stuffs.

Time management, was difficult because some tasks required me

to be completed them on time which forced me to work on

deadlines in order to comply with various regulating authority

and to ensure that the reports are delivered to the authorities

in time.

Thus I learnt that patient and dedication myself to the work

I’m given is very important. Teamwork and co-operation, people

have to work together as one family, helping each other out

since they all aim achieving the same goals; success of

employees and the company. Maintaining confidentiality in the

way that confidential information has to remain in the company

and not taken outside for security reasons.

2.11 Gaps between theory and practice

In executing some of the duties that I was assigned, there was

no a huge difference of what I learned practically and

theoretically, as I applied most of the concepts that I learned

at the college.

Little time is spent in learning new concepts practically than

as it is in theory. In theory you may cram some of the concepts

and understand later but with practice learning is faster with

little effort.

In theoretically I learnt procurement techniques but did not

know how to apply them physically, but through practical

training I came to realize procurement is not complicated as I

thought, it gave me the whole concept and a wider view to see

procurement in business perspective and am now an expert in

procurement and supplies management.

2.12 Employment prospects

Working at MOF is something I desire, and I do believe that i

will be part of the MOF staff someday.

The working environment is conducive due to the fact that it is

among the important organizations in the country. This made me

admire to work with the office upon completion of my degree

course.

Also in this organization, there is a system of giving

sponsorship to workers so that they can improve their education

in undergraduates and postgraduates programs both within and

outside the country. All these benefits help its employees to

feel responsible for the assigned duties. Also by providing

training reduces the risk to the firm and employees who are the

executors.

This has motivated my ambition to work with any authority under

Procurement Management Unit within Ministry of Finance.

I did not get employment promise because this is not like the

private institutions; this is government institution where

employment opportunity is available when a vacant is announced.

But successfully completion of the work that I was assigned

showed that I was competent and I can deliver what I was

supposed to.

2.13 Relevance of my attachment

My attachment was plus point as I’m knowledgeable with

information technology and procurement and supplies

management related matters which I have never come across with

before PT program. To work in the MoFEA office for 52days has

developed my skills in procurement and supplies management,

Information system and related subjects and to work

collaboratively with other workers in the organizations.

Before practical training is like I was studying with no clear

vision of who I want to be. But since then my attitude about my

career plan have changed completely and now I have a clear

picture of what I have to do to meet my objectives.

After explaining the activities performed in the chapter two

above then next chapter will highlight for the conclusion. The

conclusion is about the writers view concerning the PT

attendance and coverage

CHAPTER THREE

3.0 CONCLUSION

My six weeks at MoFEA made me to recognize the importance of

the Practical training as well as the reason why the Practical

training should be carried on as it helps in building up

confidence which is one of the factors which help most people

to win a career opportunity in different organization. It also

enables students to improve different skills such as working

skills, and other interpersonal skills for their professional

Practical Training has made possible to expose the students to

the prospective employers, this has increased their odds of

getting employment. Furthermore PT is the basis for the

foundation in bringing up the managerial and entrepreneurial

skills of the students and there for the Faculty Procurement

management and Government at large should strive to maintain

and ensure that there is improvement of this program even by

modifying the time for practical training from eight weeks to

one semester duration that is to say sixteen weeks. This is due

to the facts that practical training is what real transform the

students mind and sets from theoretical aspect of studying to

the work itself in the real world and hence improve the

students’ skills. As a results making them to be competent in

work or practically in the real world.

I faced some challenges in my PT program as I met with many

people with different behaviors and views due the kind of

responsibilities that I was assigned to do. This has given me a

new focus and attitude about my career plan of becoming a very

successful person in economic and finance.

After this program I have realized that I have to work hard

once I get the chance to work and also to advance my education

by pursuing professional exams, as well as pursuing Masters

Degree so as to be competent in the labor market.

3.1 RECOMMENDATIONS

Improving the gaps in teaching theory and practice

There exists a gap between theory and practice due to the fact

that in class students do a lot of paper works with less

practical of what they are taught. This brings the need to

undertake the practical training so as to put the theory learnt

into real practice and it becomes more understandable because

theory and practice are related. The following recommendations

on reducing the gaps between theory and practice can be used

according to my view.

Improvement in computer facilities: most of the

organizations now days are investing in technology, their

tasks are becoming computerized they are using computer

software programs. The college has to increase the number

of computer and networking facilities so as each student

gets the opportunity to grasp the knowledge.

Restructuring of courses: some of the courses remain being

uncovered by the time the student begin their PT program

in the way that they fail to integrate what has already

learnt theoretically into practice. This affects the

intention of making students feel and establish a clear

real difference between theory and practice.

Increasing the practical training duration: I recommend

that practical training period should be lengthened to

give students enough time to practice what they have

learnt in the class and to enable them to revolve around

different departments in organization.

3.1 Recommendation concerning handling the gaps in the

placement process

I recommend that the Training organizations should reply its

responses as early as possible to the applicants so as to avoid

any inconveniences due to delay in informing the student

whether he/she has accepted by the organization.

Not only that but also timing for PT should be put under

consideration as most of the tasks are done seasonally. For

example for in Governmental organizations some of tasks such as

preparation of year-end financial statements are conducted in

June on the contrary the PT begins in July (as for the case of

2012/2013) hence these duties are missed by the student. The

department of accounts and finance and the college should make

necessary adjustments to enable the students to acquire most of

the practical knowledge.

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References:

Ministry of finance and economic affair website – www.mof.go.tz

Guideline to MoFEA (2007)