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Change Management: An International Journal A Study of Fixed Asset

Management Practice and its Challenges with special reference to Public
Sector of North Shewa Zone in Oromia Regi...

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 Change Management: An International Journal
ISSN: 2327-798X (Print) ISSN: 2327-9176 (Online)
Volume 22 No. 1, 2022

A Study of Fixed Asset Management Practice and its

Challenges with special reference to Public Sector of North
Shewa Zone in Oromia Region of Ethiopia
Meseret Dame Tafa1, Solomon Tessema Worku2
1
Lecturer at Salale University, Department of Accounting and Finance, Fitche, Ethiopia
2
Lecturer at Salale University, Department of Economics, Fitche, Ethiopia

Abstract
Fixed asset management in public sectors is one of the most challenging areas in many
countries of the world. Business sectors give critical attention to managing their long-term
assets properly and avoid unnecessary holding of these assets. Moreover, they record,
depreciate and dispose of the assets properly. However, this is not practical in local public
sector. As a result, the problem is various and very high in Ethiopia. Excessive holding and
failing to value, depreciate and dispose of the assets are the main challenges, and due to these
challenges the loss resulting from mismanagement of the assets is substantial. Therefore the
study was designed to assess practice and challenges of fixed asset management by public
sectors in North Shewa Zone. Types of research design which is incorporated for this study
was descriptive research design and Data also collected from primary and secondary source of
data and the collected data was analyzed by using descriptive techniques on the data that was
collected from 364 respondents. The major finding indicates that, the practice of procurement
and property management department ineffective on planning process, enforcement of rules
and directives and organizational structure and accountability system, due to procurement plan
beyond each department needs and request, absence of disposal plan, absence of disposal
committee and their functionality, poor property documentation, poor concern and
commitment of the officials and awareness and skill gap on public property administration,
therefore, to alleviate those problems the researchers recommend government and concerned
bodies on the following concerns such as to enhance effective property management practice

1
First Author, email: [email protected]
2
Corresponding Author, email: [email protected]
© Common Ground Research Networks, Solomon Tessema Worku, All Rights Reserved.
Acceptance: 25Feb2022, Publication: 25Mar2022

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government should work on improving of staff professional competency, giving clarity on

government owned property management rules, regulation, directives and manual,
procurement and public property administration department and concerned bodies should
committed for all stage in property management.

Keywords
Fixed Asset, Fixed Asset Management, Disposal Practice, Public Sector, Challenges.

1. Introduction

Resources possessed by a region must be used optimally for the welfare of society. Regional
fixed assets are a very important component of resources in public services, so they need to be
managed properly and inevitably every year will increase in terms of quantity and quality of
benefits (Brigitha & Rosidi, 2019). If fixed assets are idle and not utilized properly it affects
the long term sustainability of the service delivery to customers. FDRE Public Procurement
and Property Administration proclamation no.649/2009 suggested that public bodies should
make sure that property is used economically and efficiently. They are also required to ensure
property at their disposal is registered and traced, properly handled and looked after and
disposed when it is no longer useful. However, different related studies confirmed that poor
property management practice in public sectors (Abdi & Doyo , 2019 ), (Beverly, 2011), (Getu,
2018), (Lativa, Yesi, & Nasrizal, 2019) and (MICHAEL, 2014).

Fixed asset management in public sectors is one of the most challenging areas in many
countries of the world. Evenly business sectors give high attention in managing their long-
term assets properly and avoid unnecessary holding of these assets. Moreover, they record,
depreciate, and dispose of the assets properly. However, this is not practical in local public
sectors. As a result problem is various and very high in Ethiopia. From such excessive
holding, failing to value, depreciate, and dispose of the assets are the main challenges, and
due to these challenges the poor performance resulting from mismanagement of the assets is
substantial in all public sectors (Abdi & Doyo , 2019 ).

As stated in Oromia Regional State Bureau of Finance and Economic

Cooperation2016/17audit report, out of the studied 113 public sector organizations 44 (39%)
conduct their asset control actively in a timely manner where 69 (62%) don’t do it on time.

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Regarding property disposal, the report shows that 26 (23%) organizations undertake the
property disposal process in time and accordance with the regulations. On the other hand, 87
(77%) don’t perform their asset control as per the regulations (Getu, 2018). This indicates
that majorities of local public sectors in Ethiopia, especially Oromia regional state do not
have a good public asset management and disposal practice.

In addition the study conducted by (Getu, 2018) summarize that the absence and problem of
asset management plan in public organization stated as a crucial problem which is described
as the difficulty to determine what is needed in times, difficulty to determine what assets has
the organization got, difficulty to determine what will close the gap, difficulty to determine
how the organization will know it is getting there, difficulty to determining which asset should
be a acquired, renewed, improved and maintained or disposed of. Moreover study by
(Teshome, 2015), shows that there was a large accumulation of public properties in different
public sectors without functions. But there is no quantified indicator of disposable public
property. This shows that there is a poor appropriate property management practices within
the public sectors in Ethiopia and especially in Oromia regional state public sectors.
Furthermore Study by (Mata, 2018 ) revealed, the Heads, Disposal Committee, and Property
Management Units of public organizations as well as Regulatory Body in Ethiopia public
sectors have given less attention to disposal functions. As a result, full long stayed no longer
usable fixed assets and stock items have occupied store spaces and shelving equipment, and
found under the custody of public organizations of different woredas.

Local studies on fixed asset management practice was conducted by (Getu, 2018, Teshome,
2015 and Mata, 2018 are limited at federal level (evidence from selected sub cities in Addis
Ababa public sectors) and another similar study by Abdi and Doyo, 2019 also close to only
one woredas of Oromia regional state (Dire wereda), however their findings may not be
generalized to other public sectors specifically to north shewa zone oromia regional state. In
other hand, previous studies in Ethiopia (Teshome, 2015)suggested that to achieve effective
fixed asset management practice, researches in the area especially at wereda level are very
critical. This study will try to fill that gap.

Therefore, in line with the above stated problems researchers visits to public sectors of north
shewa zone have shown that the existence of fixed assets in public sectors without function,
fixed assets lie idle, place of work have dirty furniture’s and equipments that are not being
serviceable, different means of transportation grow grass in parking yards, and different

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warehouse/ store facilities hold things that have not been separated as serviceable and not
serviceable (mixed property) and not distributed or used in several years (disposal
problems).To sum up, this may a reason for increased risks of unnecessary expenditure/attract
additional cost; unwise management work; assets continue to loss their value. However, no
much care and potential study has been advanced towards assessing the impact of these
practices on effectiveness of fixed asset management, even if they have impact on total
operations and performance of public sector organizations. Therefore, those challenges for
effectiveness of fixed asset management also another reason for this study in study area which
is north shewa zone public sectors. Generally, to the best of researcher’s knowledge, there are
no studies on government owned property management practice as well as its challenges in
north Shewa zone public sector. Therefore, by considering the above listed hindering problems
this study tries to fill the gap by assessing fixed asset management practice and its challenges
in north shewa zone public sector.

1.1 Objectives of the Study

Specific Objectives
i. To identify current practice of north shewa public sectors in managing fixed assets.
ii. To examine the planning process in property management practice of public sector.
iii. To analyze the practice of rules, regulation, procedures and their implementations in
fixed asset management practice.
iv. To explore the challenges of fixed asset management in public sector.

2. Methodology

2.1 Descriptions of Study Area

The study was conducted in the North Shewa Zone of Oromia regional state in Ethiopia. North
Shewa Zone is located in the north-western direction of Addis Ababa. The zone is situated
between 9030N and 38040E. The topography is ragged terrain with some mountains. The
altitude ranges between 1300 and 2500 meters above sea level. It is divided into three agro-
ecologies, namely, 15% Highland, 40% Midland and 45% Lowland (CSA, 2007). There are
two rainy seasons, namely Belg (February - April) and Meher (June - September). The average
annual rainfall ranges from 1400 to 1600 mm; while mean annual temperature varies between
15 and 19 oC.3.3. In other way according to North Shewa administration office there are 30

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offices at wereda level and there are two town administration offices (Fiche and
GarbaGuracha).

2.2 Research Design

The choice of a research design is determined by the combination of many factors such as the
research problem, objectives of the study, resource availability and personal experiences of the
researcher ( Creswell, 2009). Accordingly descriptive research design where employed to deal
with research objectives in this study. This study tries to assess current practice and challenges
of fixed asset management and disposal practice in public sector, so that in this study both
qualitative and quantitative (mixed) research approach was applicable, using the combination
of both qualitative and quantitative research approach is sometimes essential to understand
complexity in society.

2.3 Sources of Data

The researchers used both Primary and secondary data sources. Primary data were collected by
using questionnaires (a research instrument consisting of a set of questions (items) intended to
capture responses from respondents in a standardized manner); interviews, focus group
discussion and observations (involves systematically selecting, watching and recording the
asset management in the selected district) from officials of the selected office. The researchers
also used Secondary data from reviewing of documents from North Shewa Zone different
office.

2.4 Data Collection Instrument

The necessary data was collected by using questionnaires, interviews, observations and focus
group discussion as well as by reviewing secondary data sources documents. Questionnaires
was used to collect data from wereda administration office employees, education, health, tvet,
water and energy, Finance and cooperation office, road authority, transport, municipality and
electricity head office employees of districts excluding manager/ heads and procurement
committee of each office/sectors based on the varieties of their experience, duties and
responsibility toward the subject. Both open-ended and close ended questionnaires employed.
Interview was used as a support to collect data from procurement committee of sample

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districts. In addition focus group discussion with head of each sector was incorporated and key
informants were employed at each selected woredas and town administration to dig out further
information for this study. Furthermore, observation also conducted by the researchers to see
the visible parts of the public property as well us utilizations of fixed assets in public sector of
north shewa zone.

2.5 Target Population

According to North Shewa administration office there are 30 offices at wereda level and there
are two town administration offices Fiche and Garba Guracha while the Zone has other offices
which contain some offices with 4032employees. Referring the same sources there are 30
offices in each wereda, these are wereda administration office, agricultural office, animal
production, and emergency and food security, cooperative, environmental protection and
climate change, land management, education , health, public services, children, youth and
women social affairs, record of basic evidence, tvet, water and energy, mineral, revenue
authority, finance and cooperation office, market, trade, peace and security, justice , road
authority, transport ,micro and small enterprises, culture and tourism , municipality , electricity
and telecommunication offices. The population of the study is the total office and employees
of North Shewa zone, Oromia regional state. So, the study was generalized to north shewa zone
public sectors.

Among these 10 of them (wereda administration office employees, education, health, tvet,
water and energy, Finance and cooperation office, road authority, transport, municipality and
electricity) and the 2-town administration (Fitche and GarbaGuracha) and corresponding Zonal
offices are selected purposively. The following table shows the offices sample:

Table 1: Sectors and Number of Employees

S.No Offices Number Site Total

1. Finance and cooperation office 20, (employees) 8 160
2. education office 1, (head) +2workers 8 24
3. health office 1, (head) +2 workers 8 24
4. TVET office 1, (head)+1.5 workers 8 20
5. water and energy office 1, (head) +2 workers 8 24

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6. administration office employees 1, (head) +2 workers 8 24

7. road authority office 1, (head) +2 workers 8 24
8. transport office 1, (head) +2 workers 8 24
9. municipality office 1, (head) +2 workers 8 24
10. electricity office 1, (head) +1 workers 8 16
Total 364
Source: North Shewa Zone administration Office 2020

2.6 Sample and Sampling Techniques

The population of the study is the total office and employees North Shewa zone, Oromia. The
researchers purposively select those woredas considering that relatively more Populated towns.
Accordingly, Fitche, Gerba Guracha town, KuyuWereda, WeraJaarso , YayaGulale,
DebreTsige,Sheno and HidhabuAbote were which are the focus of this study. As the
population of the study is the employees of the 30 stated offices according to North Shewa
Zone at least there are 4032 employees in these offices. Finance office employed on average
20 employees and other remaining office have on average 8 workers.

Based on this Finance workers 20x16(13 woredas+2towns administration+1zone) and 29

offices x16 site (13woredas+2towns administration+1zone) x 8 average workers which gives
total of 4032 total population.

There is total population of 4032 in the zone that was used to determine sample size. From
these projects, Yemene formula of determining sample size was used to determine sample size.
The formula is given by:

N
n=
1 + Ne2

Where: n = Sample size N = Population size e = Error tolerance, by using this formula, the
sample size for this study was: Accordingly

N
n=
1 + Ne2
n = 4032/(1+4032*0.052)
= 363.89
=364

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2.7 Methods of Data Analysis

Data analysis was beginning with the editing to ensure the completeness, consistency, and
readability of the data and coding of the survey data. While the data analysis method
accomplished for this study was descriptive statistics by using SPSS version 23.

2.8 Ethical Consideration

During the data collection and any information regarding the personal life it may be grim to
interfere individual life, but the researchers will train the enumerators to preserve respondents
by awareness creation and preparing question in the form that the respondents not to frustrated
off. All the activities in the preliminary study, with key informant persons and discussion with
focus groups will give attention for the moral of the people (safuuuummataa).

3. Interpretation and Data Analysis

To assess the practices and challenges of public property management in north Shewa zone
public sectors questionnaires were distributed to a sample size of 364 selected employees by
using purposive sampling techniques.

3.1 Demographic Data Analysis

Table 2: Characteristics of Respondents

Variables Category Freq. Percent
Sex Male 201 55.22
Female 163 44.78
Total 364 100.00
Age 18-25 49 13.46
25-35 83 22.80
35-45 92 25.27
45-55 86 23.62
Above 55 54 14.84
Total 364 100.00
Education 12 grade 24 6.59
Certificate 126 34.62
1st degree 186 51.10

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2nd degree 26 7.14

Above 2nd degree 2 0.55
Total 364 100.00
Qualification Accounting and finance 122 33.52
Management 13 3.57
Economics 63 17.31
logistics and Supply management 20 5.49
Procurement and management 65 17.86
other 81 22.25
Total 364 100.00
Experience 1-3 104 28.57
4-7 118 32.42
8-10 57 15.66
Above 10 85 23.35
Total 364 100.00
Source: Survey Result 2021

As presented on table 2, 201(55.22) percent of respondents were male and 163(44.78) percent
of the respondents were females. It indicates that public sectors in north shewa zone are being
occupied by males. Therefore, female should highly be encouraged to involve in the public
sectors functional department to create gender balance and good working environment.
Regarding to their age, 25.27 percent is between35-45; it reveals that it is in productive age, so
public sectors in north Shewa zone should be used properly for better service delivery and
effective fixed asset management in sectors. And also, 51.10 percent of the respondents hold
1st BA degree. Regarding the respondent’s qualification and experiences, 33.52 percent of the
respondents were studied accounting, and most of the respondents which means above 61
percent have at least 4years and above working experiences in public sector.

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3.2 Survey Result Analysis

Table 3: The Practice of Planning Process in Fixed Asset Management Practice

No. Item Response Rating scale
1. Procurement of fixed SA A N DA SD Total
asset is based on Frequency 56 121 30 88 69 364
specification and needs Percentage% 15.4 33.2 100.0
8.2 24.2 19.0
of the sector.
2. After Procurement, Frequency 84 123 61 63 33 364
distribution and Percentage
allocations of fixed 100.0
asset performed based
23.1 33.8 16.8 17.3 9.1
on their demand and
requests from
respective sectors
3. There is an annual Frequency 38 137 75 110 4 364
disposal plan in the percentage 10.4 37.6 20.6 30.2 1.1 100.0
public sector.
4. Fixed asset disposal Frequency 44 117 53 62 88 364
process is planned as percentage 12.1 32.1 14.6 17.0 24.2 100.0
Formal work rather
than committee work.2

Source: Survey Result 2021

The computed data in table3, indicates that 157(43.2) percent of the respondents strongly
disagreed and disagree respectively for the presence of an annual need based procurement plan
in the public sectors, 30(8.2) percent of the respondents were neutral on this statement, it
indicate that they do not have any information about it, 177(48.6) percent of the respondents
agreed on the existence of Procurement of fixed asset based on specification of the functional
unit. In addition, the researchers tried to review each sectors annual plan, conducted interview
with concerned bodies in public sectors, and focused group discussion with procurement
department show that there is poor annual procurement plan. in other hand, the procurement

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departments in north Shewa zone public sectors failed to gather annual or semiannual needs of
different departments in sector as their capacity, as a result of this, procurement without plan
and distributions of fixed assets beyond their departments, specifications, needs and request is
stated as a causes to inefficient use of asset as well as overall asset mismanagement.
Table 3 also reveal that 96(26.3) percent of respondents are disagree with allocation of fixed
asset as each sectors demand and request, 61(16.8) of the respondents were neutral with the
statement, which indicate that they have a doubt on fixed asset distribution and allocation as
per department demand and request, 207(56.9) percent of the respondents agree with fixed
asset allocation as demand and their request. It indicate that majority of the respondents agree
with fixed asset allocation as each sectors functional department demand and requests. In
addition to respondents respond interview with concerned bodies clarified that, in north Shewa
zone public sector crucial problem is the shortage of budget to acquire property according to
approved plan and also to meet their demand and balance supplies. Furthermore they said that,
property needs raise most of the time from property administration team based on past
experience of repetitive purchase rather than from current period functional departments work
plan/ their capacity, means that more procurement and allocations of fixed asset in north Shewa
zone public sector is based on personal filling and intention, and previous year work plan than
institutions desires and capacity. This indicates that poor planning process on procurement
stage as well as for asset utilization.
From the same table about existence of fixed asset disposal plan in the public sector, 114(31.3)
percent of the respondents strongly disagree and disagree with idea. In fact, this is because of
lack of overall fixed asset management practice/effectiveness in all sectors due to lack of
awareness, understanding of manual and more disposal practice is treated as committee work
only in the sectors. in other hand, 75(20.7) of respondents replied neutral, since more than
31percent of respondents response shows that there is low fixed asset disposal plan progress in
public sectors, so, the respondents who answered “neutral” response did not know current
progress in public sector regarding to fixed asset disposal plan. In other hand, 175(48.0) percent
of the respondents are agreed about the issues in the study area. In general majority of the
respondent’s response indicate that there is sectors weakness regarding to annual disposal plan
as guideline.
From the same table the majority of respondents 161(44.2%) replied strongly agree and agree,
for property disposal not to be the committee work it would be formal activity. The less number

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of respondents 53 (14.8%) replied neutral. In other hand, 150(41.2%) of respondents replied

strongly disagree and disagree whether disposal activity is formal activity rather than
committee work in public sectors. This survey result indicate that in north Shewa public sectors
disposal practice is treated as committee work rather than regular and formal activity. In
addition to respondent’s response, interviewee with concerned bodies and passive researcher’s
observation again confirm it.
Table 4: Enforcement of Rule, Regulations and Directives on Fixed Asset Management
Practice
No. Item Response Rating scale
1. As an employee of north SA A N DA SD
Shewa public sector, you have Frequency 91 126 27 77 43
a good understanding of Percentage 25 34.6 7.4 21.2 11.8
property rule, regulation,
directive and manual.
2. Fixed asset management and Frequency 61 123 56 76 48
disposal process in your
Percentage 16.8 33.8 15.4 20.9 13.2
functional department are
performed according to rules,
regulations and directive
3. Fixed asset Disposal Frequency 99 118 0 65 82
committee is assigned and percentage 27.2 32.4 0 17.9 22.5
Performs according to
directive
4. The handling of fixed asset in Frequency 0 142 48 59 115
the warehouse and office is Percentage 0 39.0 13.2 16.2 31.6
suitable to meet public sectors
objectives as stated.
Source: survey result 2021

Regarding to respondents awareness and understanding on rules, regulations and procedures

for fixed asset management in public sectors, computed result in table 4 shows that, 120(33%)
of the respondents strongly disagree and disagreed with the idea, However 27(7.4%) of
respondents are neutral for the statement. In other hand 59.6 % of the respondents strongly

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agreed and agreed respectively with ideas stated. From the same table, about implementations
of fixed asset management and disposal practice as rule and directives, 125(33%) of the
respondents replied they strongly disagree and disagreed with the statement, 56(15.4%) of the
respondents neutral with this statement. However, 183(50.6) percent of the respondents
strongly agree and agree respectively, which means that as respondents response even if in few
sectors fixed asset management and disposal process are performed according to the rules,
directions, and regulation of the public sector, but still now respondents have knowledge gap
to carry out their work properly. Again as shown on the table 4 of question no 3 respondents
asked regarding follow up and commitment by top manager or leadership to fixed asset
acquisition, utilization, maintenance and disposal practice, and majority of respondents
160(44%) strongly disagree and disagree respectively on the idea. While 51(14%) respondent
replied neutral and 153(40.1%) of respondents answered agree. It shows that fixed asset
management practice was not got effective follow up and necessary commitment from top level
management as well as from leadership of each woredas and zonal office. Regarding to the
establishment and functionality of disposal committee as directives, As it is stated in
Government Owned Property Management Manual (GOFAM, 2016), the establishment of
disposal committees is critical for disposing unserviceable Properties on necessary time,
however, as this study survey result shows above 40% of respondents replied absence of the
establishment and functionalities of disposal committees in each Weredas sectors. In other hand
59% of the respondents reported committees have been established in their sectors but it is not
fully functional. Again interview with concerned bodies and researcher’s observation shows
critical problems in north Shewa public sectors are, less attention to disposal practice, low
follow up to committee’s functionality and less remedial action for weak performance.

From the same table (table 4) of question number 5 the respondents asked whether the handling
of fixed asset in the warehouse and office is suitable to meet its objective, the result revealed
that 174(47.6%) respondents replied strongly disagree and disagree, 43(13.2%) respondents
were neutral for the idea, but 142(39 %) respondents were answered agreed. In addition to
respondents response passive researcher’s observation result shows there were no sufficient
warehouse in each woredas sector office and the accessible by itself also not managed well by
responsible bodies. Therefore, all acquired or serviceable and unserviceable fixed asset were
stored in one place and other also stored out of office ware house/specially in corner of office.

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Which indicate that insufficient store place for both serviceable and unserviceable properties
in public sectors, which also a reason for poor performance.

Figure 1: Presence of Clearly Defined Maintenance Procedures and Maintenance Practice

Clearly defiend maintenance procedure and

maintenance practice

160 141
140
120 94
87
100
80
60
26
40 16
20
0
Strongly dis Disagree Neutral Agree Strongly agree
agree

As can be seen on figure1 a majority of the respondent (238) agreed with the statement
“Existence of clearly defined maintenance procedure and immediate maintenance action in
case of failure to government owned properties in the public sectors”. It shows that presence
of maintenance procedures and a good trend of maintenance practice to prevent parts from
being damaged.
Figure 2: Reasons for Disposal and Respondents Awareness

180 173171
160
140 123
120
111
100 82 89
77 96 only surplus
80
60 50 70
surplus, obsolete ad damage
40 20 30
scrapness and abondondness
20
0
disagree
neutral
agree
strongly
agree

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As shown on figure2, majority of the respondents agreed on surplus, obsolete and damage as a
reason for government owned property disposal, but few of them replied that scrap and
abondondnees is the only reason for disposal. Over all respondent’s response confirmed that
they have knowledge gap on reasons for disposal of government owned property. However, as
Ethiopian government GOFAMM, 2016 (Government Owned Property Management Manual),
to effectively carry out disposal practice without any difficulty, properties owned by an
organization need to be identified as serviceable and unserviceable (surplus, obsolete,
damaged, scrap and abandoned) and handled separately. Based on the figure 2 result, from
observation, interview and focus group discussion with concerned bodies the researcher’s has
identified a number of problems such as properties which hold and collected in public
organizations within each functional departments of the zone are not properly separated as
surplus property, obsolete property, damaged property and property ready for scrap
(serviceable and unserviceable). Even in few functional department as well as sectors in which
they were segregated and placed as unserviceable, they haven`t been handled separately,
knowledge gap to separate properties as serviceable or unserviceable, absence of presence of
committee and the existed committee also give high priority for their regular responsibilities
than disposal issue and poor follow up as well as low attention to property management
practice.

Table 5: Staff Professional Competency in Fixed Asset Management Practice

No. Item Response Rating scale
1. As employees of public sector, SA A N DA SD
your Educational background Frequency 84 184 68 24 4
enables you to perform well. Percentage 23.1 50.5 18.7 6.6 1.1
2. You are getting the necessary, Frequency 28 46 63 176 51
timely and continues training Percentage 7.7 12.6 17.3 48.4 14.0
on fixed asset management as
well as disposal practice
3. The existing employees of Frequency 81 227 28 22 6
property management percentage 22.3 62.4 7.7 6.0 1.6
department have enough work
experiences.
Source: survey result 2021

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Above table shows that, majority of the respondents above 73 percent replied that they have
appropriate educational back ground, each property management department also filled by
necessary professionals and majority of the respondents have good work experiences on
property management, but as respondents reported for question number 2 and from
observation, interviews and focus group discussion with concerned bodies, the crucial problem
is not about their educational back ground, experience, but it is about low access or opportunity
on capacity building training to employees, less management attention and follow up on their
performance.

Figure 3: Organizational Structure and Accountability System

111

87
67 68

31 existed orgaizatioal structure

realize accoutailty system

As stated in proclamation no 157/2010 and procurement and property administration

proclamation no.649/2009, Procurement and property administration staff or heads of
procurement and property administration units and members of the procurement endorsing
committee in public bodies shall be accountable for their action in accordance with
proclamation and directives issued there under by the bureau. Beside to this, the computed data
shown in the figure 5 reveals that, 178 respondents reported the existed organizations structure
is not realize accountability system, few respondents are silent for issues stated in study,
however 155 respondents replied that current organizational structure would be realized
accountability system since property procurement and administration unit is separated from
other functional department activity and had enough professional staff.

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4. Conclusion and Recommendations

4.1 Conclusion
By depending on the major findings derived from the discussion and interpretation of the data
collected through questionnaires, key informant interview with concerned bodies, focus group
discussion and observation by researchers the following conclusions are made:

The practice of planning process in fixed asset management practice

Regarding to practice of planning process in property procurement, distribution, maintenance

and disposal practice, finding shows that poor acquisition plan, which is because of the
procurement departments in north Shewa zone public sectors failed to gather annual or
semiannual needs, demands and requests based on their current capacity or work schedule, as
a result of this, procurement without plan and unbalanced distributions and supplies of fixed
assets to each departments raised by respondents as crucial problem, again in relation to
disposal plan practice, the finding reveal that poor disposal plan practice, this is because of lack
of knowledge on disposal directives and still more employees and office by itself consider
disposal activity as committee work.

Enforcement of rule, regulations and directives on fixed asset management practice

In studying enforcement of rules, regulations and directives (GOFAMM) on property

management practice (on acquisition, utilization and distribution, maintenance and disposal
practice), respondents clarified that lack of continues training to employees, less attention and
follow up by concerned bodies and absence of public property procurement and administration
department commitment throughout properties whole life and lack of sufficient warehouse and
store place are raised as a crucial reasons for poor property management practice as stated rule,
procedures and directives (GOFAMM).

Staff professional competency in fixed asset management practice

As stated in EFG procurement and property administration proclamation no.649/2009 and

Oromia Regional State proclamation no157/2002 E.C public sectors employees are responsible
to establish procurement and property administration unit with professional and adequate staff.
Beside with this the study result shows that the property administration department of north

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ISSN: 2327-798X (Print) ISSN: 2327-9176 (Online)
Volume 22 No. 1, 2022

Shewa zone and related office had no enough employees and the existing employees were not
professionally competent as well as most of them have no sufficient experience for work.

Organizational structure and accountability system

From the study result majority of the respondents said that existed organizational structure of
public sectors is not realize accountability system due to the following problems such as lack
of good communication and alignment between each sectors and departments, poor
commitments by respondents their duties and less follow up by management bodies.

In general, to derive the planned benefits from fixed assets, effective and efficient management
practice throughout their life should be a mandatory work in public sectors. For undertaking
the task of the assets management in efficient and effective way, commitment of all concerned
bodies to whole-life property management is crucial. Without having effective and efficient
fixed asset acquisition, utilization, maintenance and disposal of obsolete, surplus, and scrap
materials that are unserviceable to an organization, it is not viable to say that whole-life asset
management function of an organization efficient and effective.

4.2 Recommendations

By Taking into account the findings obtained and conclusions drawn, the following
recommendations are made:

• To improve the problems of inefficient procurement practices, north Shewa zone public
sectors should follow policies, procedure and manuals effectively.
• To alleviate the problem of inefficient and unbalanced fixed asset allocation or
distribution in to functional department, the procurement activity of the sectors should
be planned depend on needs, demands and request from functional departments and
eventually distribute as their request. .
• To improve employees level of awareness, understanding on GOFAMM (rules,
procedures, directives and manual) and to carry out effective and efficient property
management practice, government should give continues capacity building training to
employees and as well as public procurement and administration department should
give hard copy and soft copy of GOFAMM to each functional departments to improve
their level of awareness and it should take discussion with them.

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• To alleviate warehouse and store place problem government and zonal office should
construct appropriate building.
• To improve disposal practice problems, annual or semi-annual disposal plan should be
prepared by each public sectors property procurement and administration department
or directorate.
• Disposal committee should be established in each sector and public procurement and
administration department should follow their functionality.

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