ZHRC/HTI Financial Management Training Session 3: Budgeting, Accounting and Financial Reporting.
ZHRC/HTI Financial Management Training
description
Transcript of ZHRC/HTI Financial Management Training
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ZHRC/HTI Financial Management Training
Session 6: Public Procurement Environment and Legal Framework in Tanzania
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Learning Objectives
• By the end of this session, participants will be able to:• Define procurement• Explain objectives of procurement for procuring
entities• List categories of procurement• Identify principles of procurement in the public sector• Explain legal framework of the different procurement
entities • Describe roles and responsibilities of Public
Procurement Regulatory Authority (PPRA) and procuring entities
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What is Procurement?
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Definition of Procurement
• Procurement is the process of buying goods, works and services to satisfy the identified needs
• 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, Agency or Local Government or public body (PPA, 2004)
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Importance of Procurement
• Procurement is an important function as it enables an organization to acquire the goods and services needed to fulfill its objectives
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Legal Guidelines for Procurement
1.Public Procurement Regulations, 2005
• Procurement of Goods, Works, Non-Consultancy Services
• Disposal of Public Assets by Tender
• Selection and Employment of Consultants
2.The Public Procurement Act 21 of 2004
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Procurement in Procuring Entities
• The overall responsibility for procurement process rests with the Accounting Officer or Chief Executive Officer
• Act requires each Procuring Entity to establish a Tender Board for procurement
• Tender Boards have power to award procurement contracts
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Objectives of Procurement
• To provide procuring entities with a flow of goods, services and works to meet its needs
• To reduce costs through more efficient and effective purchasing by buying appropriately to obtain “value for money”
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Categories of Procurement
• Works
• Supplies
• Non-Consultancy Services
• Consultancy Services
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Principles of Public Procurement
• Transparency
• Accountability
• Equal treatment/fairness
• Value for money
• Appeal rights
• Integrity
• Competition
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Activity in Pairs:
Procurement
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Legal Framework for Procurement in Tanzania
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The Public Procurement Act, 2004 (1)
• PPA 2004 is applicable to:• All public bodies• Non-public bodies that receive or use public
funds• Defense and National Security Organs for
non-restricted items.• PPA 2004 repeals No.3 of 2001
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The Public Procurement Act, 2004 (2)
• Establishes a Public Procurement Regulatory Authority (PPRA) in place of the Central Tender Board
• Decentralises procurement to Procuring Entities with no limits of authority
• Changes the composition of Tender Boards so Accounting Officers are no longer Chairpersons of Tender Boards
• Changes the membership of PPRA to include private sector and professional bodies
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Procuring Entities: Who are They?
• Ministries• Government Departments• Autonomous Bodies• Regions• Districts• Parastatal Organisations• Executive Agencies• Local Government Authorities• Tanzanian Foreign & High Commissions
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The Public Procurement Regulatory Authority (PPRA)
• The Public Procurement Act of 2004 establishes the PPRA as an autonomous body under the Ministry of Finance and Economic Affairs
• The PPRA replaces the Central Tender Board
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Objectives of the Public Procurement Regulatory Authority (PPRA)
• Ensuring the application of fair, competitive, transparent, non-discriminatory and value for money procurement standards and practices
• Harmonization of the procurement policies, systems and practices
• Setting standards for public procurement
• Monitoring of compliance of procuring entities
• Building procurement capacity in Tanzania
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Functions of PPRA (1)
• Advise on procurement principals and practices
• Monitor performance of public procurement systems and advise on changes
• Set training standards, competence levels, and certification requirements for procurement experts
• Update and issue tendering documents and forms
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Functions of PPRA (2)
• Implement measures to build procurement capacity in Tanzania
• Store and disseminate information on procurement opportunities and tender awards on any relevant information on public procurement in the country
• Facilitate resolution of procurement complaints
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Powers of PPRA
• PPRA is given wide powers that include but are not limited to:
• Carrying out investigations for alleged mis-procurement (PPA 2004: Sec. 8 - 16)
• Calling for any documents or information regarding procurement
• Recommending disciplinary actions for those in breach of the Act
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Disciplinary Actions (Sec. 17)
• Disciplinary actions include but are not limited to:
• Discipline or suspension of accounting officers and chief executive officers
• Replacement of the head of a Procurement Management Unit, the Chairperson, or any member of a Tender Board
• Temporary transfer of procurement functions to a third party procurement agent
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Roles and Responsibilities of the Accounting Officer (1)
• Establish a Tender Board • Appoint members of the Tender Board• Establish a Procurement Management
Unit • Advertise tender opportunities • Appoint the tender evaluation committee • Communicate award decisions
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Roles and Responsibilities of Accounting Officer (2)
• Certify availability of funds to support procurement activities
• Sign contracts for procurement activities on behalf of the procuring entity
• Investigate complaints by suppliers, contractors or consultants
• Submitting a copy of complaints and reports of finding to Authority
• Ensuring implementation of awarded contract is in accordance with terms and conditions of award
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Composition of the Ministerial Tender Board (Sec. 28)
• Ministerial Tender Board shall consist of:• A Chairperson• Six members• A Secretary
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Functions of Tender Board (Sec. 30)
• A Tender Board is responsible for: • Approving tendering and contract documents • Approving procurement and disposal by tender
procedures • Reviewing applications for variations or amendments
to ongoing contracts within its jurisdiction• Adjudication of recommendations from the PMU and
award of contracts• Ensuring best practices are used • Ensuring compliance with the Act• Liaising with the Authority on matters within its
jurisdiction
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Procurement Management Unit (Sec. 34) (1)
• In every procuring entity there shall be established a Procurement Management Unit (PMU) staffed to an appropriate level
• PMU shall consist of procurement and other technical specialists together with necessary supporting and administrative staff
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Procurement Management Unit (Sec. 34) (2)
• Procuring entities shall: • Identify all those engaged in procurement
within their organizations and identify skills need in each post
• Set out strategies to meet the needs of Procurement Management Units
• PMU shall be headed by a person with sufficient academic qualifications and experience in procurement functions
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Functions of Procurement Management Unit (Sec. 35)
• Managing and planning procurement activities except adjudication and the award of contract
• Preparing Tender Documents• Acting as a secretariat to Ministerial Tender
Board• Implementing the decisions of the Ministerial
Tender Board• Recommending procurement procedure• Planning the procurement activities of the
Procuring Entity
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Functions of User Departments (Sec. 34) (1)
• User department of a procuring entity shall perform the following functions:
• Assist Procurement Management Unit with procurement and disposal
• Propose technical inputs to statements of requirements
• Assist with technical evaluation of tenders as requested by the PMU
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Functions of User Departments (Sec. 34) (2)
• Certify payments to suppliers and consultants
• Report departures from terms and conditions of an awarded contract
• Forward details of contract amendments to PMU for action
• Maintain and archive records of contracts
• Prepare any reports required for submission to Procurement Management Unit, Tender Board or Accounting Officer
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Functions of User Departments (Sec. 34) (3)
• Prepare a procurement work plan for submission to PMU, Tender Board or Accounting Officer
• Prepare a work plan for procurement based on approved budget, which shall be submitted to Procurement Management Unit for implementation when required
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Evaluation Team (Sec. 37)
• All evaluations shall be conducted by an evaluation committee, which shall report to PMU
• Membership of evaluation committee shall be recommended by Procurement Management Unit in accordance with the act and approved by Accounting Officer or Chief
• Number of members shall depend on the value and complexity of procurement requirement, but shall be a minimum of three members
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Independence of Functions and Powers (Sec. 38)
• Subject to provisions of this Act, the following entities shall act independently in relation to their respective functions and powers:• Accounting Officer or Chief Executive• Tender Board• Procurement Management Unit• User Department• Evaluation Committee
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Activity in Pairs:
Procurement Responsibilities
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Key Points (1)
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Key Points (2)
• Functions of Public Procurement Regulatory Authority (PPRA) include:
• Monitoring performance of public procurement systems
• Setting training standards for procurement experts
• Issuing tender documents