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Procurement Policy/Accounting Officer System

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  • Procurement Policy/Accounting Officer System

    What are the key factors in developing/refining a procurement policy within the PFMA(Public Finance Management Act) and National Treasury Regulations parameters.Minimizing risks.

  • #2
    Re: Procurement Policy/Accounting Officer System


    I fully understand you. Since i will now be joining a parastatal company , i would really like us to communicate on the subject so that we can share some ideas and come up with strategy in putting into practice relevant procurement strategies in line with PFMA so as to start implementing a world class procurement.

    what do you think????


    • #3
      Re: Procurement Policy/Accounting Officer System

      Good idea, will show you what I have compiled thus far as soon as you start in the new job.Congratulations


      • #4
        Re: Procurement Policy/Accounting Officer System

        Hi Mququ
        I'm relatively new to the ProcurementTips, so apologies if my reply is too late.
        One of the things to consider in your "system" is to get your policies structured into an optimal set of documents. This may already have been decided by the Province or National Department you fall within. For example, in the Eastern Cape, the Provincial Treasurer developed a set of policies and cascaded it down to the different Departments. The Education Department in the Eastern Cape had already developed a set of Supply Chain Processes (their blueprint) and decided to integrate the two sets. This however has now became a pretty big manual (not recommended). In Gauteng (Shared Services), they have one set of policies and processes across all departments.
        Here's my suggestion on the documentation structure you could use:
        1) Supply Chain Policy Manual. This should include the key policy issues for adoption in your Department. Follow the different areas in the PFMA/MFMA Supply Chain Management Framework and keep this very legalistic and concise. The audience for this document is all levels and sections who procure goods, assets or services or get involved in the disposal of assets, so also keep it easy to read and distribute.
        2) Delegation of Authorities. This must specify the different layers in the organisation and the spending levels that they are authorised to approve. This should also specify the different committee structures that must be followed for different spending levels or commodities.
        3) Commodity Sourcing Strategies. This is the sourcing strategy and or approach that is used for different commodity types. For example, Consultants (one of the commodities) are a major focus in the PFMA's "Supply Chain Management: A guide for Accounting Officers and Accounting Authorities" available at But other commodities may be important for your Department such as vehicles or different pharmaceuticals or medical products.
        4) Supply Chain Process Manual (or Blueprint). This manual is probably optional if you are in a relatively small organisation but it is critical if you have a large organisation or multiple offices across the country/province. Include the actual process flows that should be followed in each of the areas of the SCM Framework. Also use this manual for your current templates and forms. It is also useful to keep copies of the different circulars and SCM Practice Notes from National Treasury. Some Departments are looking at making this available on an intranet site.
        Hope this helps and good luck.


        • #5
          Re: Procurement Policy/Accounting Officer System

          Hi there Guys,

          Havn't posted in a while...i feel so shy now....haa haa haa....

          Anyway, i have been tasked to compile a purchasing policy and tender policy for the company and i would like to know what tips you could provide me with - i know that it would vary according to complexity and nature of business...but i need some sort of guideline to work with.

          Is there anyone that could possibly direct me in terms of a template or structure for both?...

          Much appreciated - I think this forum is a blessing as there are many of us that are fairly new to the industry and that can draw strength from the 'veterans' who could show us a thing or two....thanks!!



          • #6
            Re: Procurement Policy/Accounting Officer System

            Hi Graham,
            (Welcome back).
            Private sector company or public sector?


            • #7
              Re: Procurement Policy/Accounting Officer System

              Hi there Shaun,

              Thanks for the welcome...seems like ages that i've had the privilege to read the comments here on
              Our company falls in the private sector - Do you have any info for me?...If so, please send to - any info would be invaluable no matter how big or small...



              • #8
                Re: Procurement Policy/Accounting Officer System

                guys please help I need a topic to write my research project


                • #9
                  Re: Procurement Policy/Accounting Officer System

                  Here are a few ideas.
                  Assuming you are in local government in the Eastern Cape of South Africa you may want to do some research on the implementation of Supply Chain Management in the MFMA. Here are a few topics to consider:
                  1) The Impact of a National Supply Chain Management Programme as perceived at a local level. You can explore:
                  • The methods and effectiveness of the communications used
                  • The type of leadership required at a local level for the effective implementation of the policy
                  • The barriers to the effective implementation
                  • The results and achievements observed during and after implementation
                  2) The effectiveness of specific policies at achieving broader empowerment objectives such as:
                  • The rotation policy for Quotations
                  • The Registration Process for reducing fraud and corrupt practices
                  3) The level of understanding (inside or outside) the Supply Chain Unit of national strategies such as the BBBEE and PPPFA policies
                  Let me know if these interest you or if you would like to look at other topics outside the above. When is the research project due and how much time will you spend per week on the project?
                  Good luck with the selection process.
                  Best Regards
                  Last edited by ShaunScott; 02-15-2007, 09:26 PM.


                  • #10
                    Re: Procurement Policy/Accounting Officer System

                    Thanks Shaun I Was Attending Workshop The Whole Month