Public finance management act in compliance with supply chain management of the selected department of home affairs in North West Province

Abstract

The drive of the study contrasts Public Finance Management Act (PFMA) in Compliance with purchasing unit of the selected Department of Home Affairs North West Government. Department of Home Affairs obtained poor Audit Outcome in the year 2014/2015 Financial year; moreover, the issue of non-compliance with legislative framework was prevalent as the main problem of the department's performance. The study explored supply chain management policies, processes, procedures and activities; relevant sources were consulted and reviewed to find out about different authors who have researched on the issues of non-compliance pertaining to supply chain management practices. The positivist method of approach used for the study employed a purposive sample group of 24 officials involved in Supply Chain Management (SCM) and the day to day procurement of goods and services to participates in this quantitative and qualitative study, using self-administered questionnaire, self-developed, open ended questionnaire and Likert scale to support the study. The descriptive and inferential techniques were adopted to probe further information from the study. The findings from the discussion reveal that the policies, process and guidelines are in place, however, there is no uniformity in terms of the application of such policies. It was found that the department does not completely comply with the Supply chain Management Activities .There is still a problem of segregation of duties and lack of supervision of the officials. The researcher recommends that SCM practitioners should be supported with additional skills trainings in Supply Chain area. SCM Practitioners should be registered with professional bodies for further monitoring in line with the latest developments in the field. The entity should be allocated enough financial resources to address the non-compliance issues. The researcher recommends further study to cover all the Department of Home Affairs (DHA) 9 provinces Office's in South Africa. The department has to comply entirely as an entity not limited to individual Provinces.