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GUIDE IN THE AUDIT OF PROCUREMENT (First Update – December 200 !
"it# $%c&s %' t#e G%(er'me't Pr%c&reme't P%)ic* +%ard (GPP+! Circ&)ar N%, 0-.200 dated /a'&ar* 220 200 Re(ised Imp)eme'ti'1 R&)es a'd Re1&)ati%'s (IRR! %$ R,A, N%, -23 appr%(ed per GPP+ Res%)&ti%' N%, 04.200 dated /&)* 220 200 Ame'dme'ts t% t#e Re(ised IRR %$ R,A, N%, -23 appr%(ed per GPP+ Res%)&ti%' N%, 05.200 dated 6eptember 400 200 P&b)ic +iddi'1 D%c&me'ts 4rd Editi%' (Oct%ber 200 ! appr%(ed per GPP+ Res%)&ti%' N%, 07.200 dated 6eptember 400 200 G&ide)i'es $%r 6#%ppi'1 a'd 6ma)).8a)&e Pr%c&reme't appr%(ed per GPP+ Res%)&ti%' N%, 0 .200 dated 24 N%(ember 200 Ame'dme'ts t% t#e Re(ised IRR %$ RA -23 appr%(ed per GPP+ Res%)&ti%' N%, --.200 dated 40 N%(ember 200 Ame'dme'ts t% t#e Re(ised IRR %$ RA -23 appr%(ed per GPP+ Res%)&ti%' N%, -4.200 dated -5 December 200

Tec#'ica) 6er(ices O$$ice Special Services Sector Commission on Audit Republic of the Philippines

TA+9E OF CONTENT6
Page COA Memorandum adopting the Guide in the Audit of Procurement Title page Acknowledgments Table of Contents I INTRODUCTION The Development of the Audit uide Ob"ectives of the Audit uide Scope and $imitations of the Audit uide II III GENERA9 IN6TRUCTION6 ON THE U6E OF THE GUIDE GUIDE IN THE AUDIT OF PROCUREMENT O' t#e +asic E)eme'ts %ids and Awards Committee &%AC' %ids and Awards Committee)s Secretariat Annual Procurement Plan &APP' %ids and Awards Committee)s Observers %ids and Awards Committee)s Technical -orking roup &T- ' Customi.ed %idding Documents for oods Customi.ed %idding Documents for /nfrastructure Pro"ects Customi.ed %idding Documents for Consulting Services O' t#e Pr%c&reme't Pr%ced&res COMPETITI8E ; PU+9IC +IDDING FOR THE PROCUREMENT OF GOOD6 /2 %idding Documents //2 Pre4Procurement Conference ///2 Advertising and Posting of the /nvitation to %id /62 Posting of the /nvitation to %id /ssuance of %idding Documents for the 62 Procurement of oods 6/2 Pre4%id Conference Supplemental 7 %id %ulletins for the Procurement of 6//2 oods Submission8 Receipt8 Opening of %ids and 6///2 Preliminar9 :;amination of %ids for the Procurement of oods /<2 %id :valuation for the Procurement of oods :7 30 51 53 +1 +# +0 (1# (13 (!5 (( !* !+ #, #+ *! ,( 01 i ii iv ! # # : -0

TA+9E OF CONTENT6
<2 </2 <//2 <///2 Post4=ualification for the Procurement of oods Award of Contract for the Procurement of oods >ailure of %idding Declared %9 the %AC >ailure of %idding Declared b9 the ?OP: (#3 (,# (0+ (3, -: (51 (+# !1! !15 !(5 !** !*+ !,( !0! !0* 255 !03 !3( !3+ !5# !50 !5+ !+0

A9TERNATI8E METHOD6 OF PROCUREMENT FOR GOOD6 $imited Source %idding Direct Contracting Repeat Order Shopping @egotiated Procurements After Two &!' >ailed %iddings :mergenc9 Agenc9 To Agenc9 Small 6alue Procurement Defense Cooperation Agreement Anited @ations Agencies COMPETITI8E ; PU+9IC +IDDING FOR THE PROCUREMENT INFRA6TRUCURE PRO/ECT6 /2 %idding Documents //2 Pre4Procurement Conference ///2 Advertising and Posting of the /nvitation to %id /62 Posting of the /nvitation to %id /ssuance Of %idding Documents for the 62 Procurement of /nfrastructure Pro"ect 6/2 Pre4%id Conference 6//2 Supplemental 7 %id %ulletins for the Procurement of /nfrastructure Pro"ect Submission8 Receipt8 Opening Of %ids And Preliminar9 6///2 :;amination of %ids for the Procurement of /nfrastructure Pro"ect /<2 %id :valuation <2 Post =ualification </2 Award of Contract <//2 >ailure of %idding Declared b9 the %AC <///2 >ailure of %idding Declared %9 the ?OP:

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Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009

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TA+9E OF CONTENT6
A9TERNATI8E METHOD6 OF PROCUREMENT FOR INFRA6TRUCTURE PRO/ECT @egotiated ProcurementsB After Two &!' >ailed %iddings :mergenc9 Cases Take Over of Contracts Ad"acent or Contiguous Communit9 Participation Small46alue Procurement @on4 overnmental Organi.ation)s &@ O)s' Participation COMPETITI8E ; PU+9IC +IDDING FOR THE PROCUREMENT OF CON6U9TING 6ER8ICE6 /2 %idding Documents //2 Pre4Procurement Conference Advertising and Posting of the ReCuest for :;pression of ///2 /nterest /62 Posting of ReCuest for :;pression of /nterest 62 /ssuance of %idding Documents to Consultants 6/2 :ligibilit9 Checking D Short listing of Consultants 6//2 Pre4%id Conference Supplemental 7 %id %ulletins for the Procurement of 6///2 Consulting Services Submission8 Receipt8 Opening Of %ids And Preliminar9 /<2 :;amination of %ids for the Procurement of Consulting Services &Asing =ualit94%ased :valuation Procedures' Submission8 Receipt8 Opening of %ids and Preliminar9 <2 :;amination of %ids for the Procurement of Consulting Services &Asing =ualit94Cost %ased :valuation Procedures' </2 Post =ualification <//2 Award of Contract <///2 >ailure of %idding Declared b9 the %AC </62 >ailure of %idding Declared b9 the ?OP: 4:: #35 *10 *(( *!( *#( *#3 **0 332 **+ *,# *0( *0, *05 *31 *50 *+! *+3 ,!( ,*+ ,3( ,55 ,+*

TA+9E OF CONTENT6
A9TERNATI8E METHOD6 OF PROCUREMENT FOR CON6U9TING 6ER8ICE6 $imited Source %idding @egotiated Procurement After Two &!' >ailed %iddings :mergenc9 Cases Take Over of Contracts Ad"acent or Contiguous Agenc94to4Agenc9 ?ighl9 Technical Consultants Small 6alue Procurement

7 2 ,++ 0(( 0#3 0*! 0,# 001 00! 000 5:5

O' O$$e'ses a'd 6a'cti%'s ; Pe'a)ties

APPENDICE6
( ! $ist of Risks Associated with Procurement Guidelines Clarifying the Procurement Activities which may be Underta en !ithout an "ssued Allotment as approved through overnment Procurement Polic9 %oard & PP%' Circular 1(41+ dated Eanuar9 !18 !11+ Revised "mplementing Rules and Regulations #"RR$ of Republic Act %o& '()* which became effective in September !8 !11+ as approved through overnment Procurement Polic9 %oard & PP%' Resolution @o2 1#4!11+ dated !! Eul9 !11+ Amendments to the Revised "mplementing Rules and Regulations #"RR$ of Republic Act %o& '()* as approved through overnment Procurement Polic9 %oard & PP%' Resolution @o2 104!11+ dated #1 September !11+ Philippine +idding ,ocuments for the Procurement of Goods- . rd /dition as approved through overnment Procurement Polic9 %oard & PP%' Resolution @o2 1,4!11+ dated #1 September !11+ Philippine +idding ,ocuments for the Procurement of "nfrastructure Pro0ects. rd /dition as approved through overnment Procurement Polic9 %oard & PP%' Resolution @o2 1,4!11+ dated #1 September !11+ Philippine +idding ,ocuments for the Procurement of Consulting Services.rd /dition as approved through overnment Procurement Polic9 %oard & PP%' Resolution @o2 1,4!11+ dated #1 September !11+

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0

3

TA+9E OF CONTENT6

5

Approving by Referendum- the Guidelines for Shopping and Small12alue Procurement through overnment Procurement Polic9 %oard & PP%' Resolution @o2 1+4!11+ dated !# @ovember !11+ Approving Amendments to the Revised "mplementing Rules and Regulations of Republic Act %o& '()* through overnment Procurement Polic9 %oard & PP%' Resolution @o2 ((4!11+ dated #1 @ovember !11+ Approving Amendments to the Revised "mplementing Rules and Regulations of Republic Act %o& '()* through overnment Procurement Polic9 %oard & PP%' Resolution @o2 (#4!11+ dated (0 December !11+

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I, INTRODUCTION

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009

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A, THE DE8E9OPMENT OF THE GUIDE The magnitude of the operations of the overnment makes it undoubtedl9 the biggest bu9er of infrastructure pro"ects8 goods and services in the countr92 The billions of pesos annuall9 spent to bu9 the goods and services needed in its da94to4da9 activities represent a significant percentage of government e;penditures2 The volume of public e;penditure passing through the public procurement s9stem has increased rapidl9 in the last few 9ears2 Averaging around P(!( billion per 9ear from !11# to !11,8 procurement e;penditure "umped to P(05 billion when the overnment)s infrastructure program kicked off in !1108 and increased further to P!!+ billion b9 !1132 a The mone9 spent to finance these procurements came from various sources including foreign borrowing and as such must have been used with prudence2 ?owever8 news of procurement transactions allegedl9 tainted with fraud had been hugging the headlines incessantl92 /n its continuing efforts to promote good governance the overnment has enacted laws on procurement8 the latest of which is Republic Act @o2 +(5* otherwise known as the Government Procurement Reform Act 2 This Act provides for the FModerni.ation8 Standardi.ation and Regulation of the Procurement Activities of the overnment and >or Other PurposesG and took effect on Eanuar9 !08 !11#8 while its /mplementing Rules and Regulations Part A &/RR4A' took effect on 5 October !11#2 After five &,' 9ears of implementation8 much progress has been made in procurement reforms in terms of rules and regulations but implementation and enforcement are still weak8 and the ob"ectives of the reform have not been full9 achieved2 This scenario is consistent with perceptions of a high level of corruption in procurement and with the S-S surve9 findings that onl9 (# percent of the public is aware of the new procurement law and its intended benefits2b As to the assessment on the /nternal Control and Audit8 the finding is that procurement audit is not 9et given enough focus in most of the audit programs because most auditors have inadeCuate knowledge of the law8 its implementing rules8 the harmoni.ed bidding documents and contract forms8 and the procurement manualsH and there is no procurement audit guide to act as the basis for including procurement audit in the annual audit program2 Most auditors are not trained to carr9 out risk4based audit tailored for risk management2 RecommendationB A procurement audit guide should be developed and implemented b9 COA with particular focus on the audit of the implementation of the PRA2 A training program on procurement should be developed and implemented for auditors with the procurement audit guide as a training material8 and both the guide a nd the training should include a ris 1 based approach to audit& c The (+53 Constitution provides for an independent Commission on Audit &COA' that has the power to audit all accounts pertaining to government
Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009

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funds nationwide8 including procurement4related transactions2 The overnment Auditing Code &PD (**,' empowers COA to determine policies8 promulgate rules and regulations8 and prescribe standards governing the performance of its powers and functions and reali.ing the need to address the Countr9 Procurement Assessment Report &CPAR' findings and recommendation8 development of this Guide in the Audit of Procurement is imperative2 +, O+/ECTI8E6 OF THE GUIDE This Guide is intended as a re$ere'ce a'd 1&ida'ce materia) $%r COA a&dit%rs in planning for8 conducting and reporting on the results of the audit on the area of procurement2 COA Auditors are provided with e4copies of this Guide to enable them to immediatel9 utili.e the audit matrices as working papers in their audits2 The9 ma9 also modif9 some aspects of these audit matrices to fit their particular needs2 /n the process8 each individual auditor)s cop9 of the Guide becomes uniCue to him7her as it reflects enhancements which he7she built into the Guide with constant use2 Ander a risk4based audit approach8 audit foci8 ob"ectives and audit techniCues are identified through a risk4assessment process which auditors perform following e;isting COA regulations2 >or the purpose of this Guide8 audit foci8 audit ob"ectives7sub4ob"ectives8 audit techniCues8 and even suggested audit working papers have been developed with no particular risk in mind2 Auditors ma9 adopt portions of the Guide which the9 consider appropriate for their risk4based audit purposes2 To aid auditors in their risk assessment activities8 a list of risks associated with procurement have been developed and included in this Guide as APPENDI< -2 /t is hoped that as Auditors use this Guide the9 will identif9 other risks which are specific to their auditee entities and anal9.e them to identif9 the appropriate audit criteria8 develop the appropriate audit ob"ectives8 identif9 the audit techniCues8 develop the audit programs and design the audit working papers2 Auditors are encouraged to provide feedback for improvement8 through the COA Directors who have supervision over them8 including the inclusion in this Guide of the risks8 audit ob"ectives8 audit techniCues8 audit programs8 and audit working papers the9 have developed2 The public is likewise encouraged to provide feedback to improve the Guide8 either through an9 COA auditor the9 are acCuainted with or through the COA -ebsiteB httpB77www2coa2gov2ph2 >rom the feedback and the continuing polic9 stud98 this Guide is e;pected to evolve through updates which will be issued as the9 are developed2

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009

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C.December 2009 Page * .ed procurements8 the nature of the procurement8 i&e&goods8 infrastructure pro"ects8 or consulting services8 shall be determined based on the primar9 purpose of the contract2 Procurement also includes the lease of goods and real estate2 -ith respect to real propert98 its procurement shall be governed b9 the provisions of Republic Act @o2 5+3* and other applicable laws8 rules and regulations2 d This Guide in the Audit of Procurement will neither cover the entire gamut of procurement nor all possible related risks that could be sub"ect to audit2 The scope of the Guide is limited to the followingB (2 :lements of Procurement a2 Annual Procurement Plan &APP' b2 %ids and Awards Committee &%AC' c2 %AC Observers d2 %AC Secretariat e2 %AC Technical -orking roup &T.' f2 %idding Documents !2 Procurement ProcessesB a2 Competitive %idding &from %idding Documents to Award of Contract' for Procurement of oods b2 Alternative Methods of Procurement for oods c2 Competitive %idding &from %idding Documents to Award of Contract' for Procurement of /nfrastructure Pro"ects d2 Alternative Methods of Procurement for /nfrastructure Pro"ects e2 Competitive %idding &from %idding Documents to Award of Contract' for Procurement of Consulting Services f2 Alternative Methods of Procurement for Consulting Services #2 Offenses and Penalties The Guide ma9 be used as a reference in theB • Fevaluation of compliance with the reCuirements of applicable laws8 rules and regulationsG which is a component of the Fauditorial reviewG provided in COA Circular @o2 !11+411( dated >ebruar9 (!8 !11+ on the sub"ectB Restatement with Amendments of COA Circular %o& )3143) and COA 5emorandum 46671643 re8 submission of copy of government contractspurchase orders and their supporting documents to the Commission on Audit• review of Fbidding procedures8 necessit9 and validit9 of other alternative modes of procurement and manner of award to the winning Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . 6COPE AND 9IMITATION6 OF THE GUIDE Procurement refers to the acCuisition of goods8 consulting services8 and the contracting for infrastructure pro"ects b9 the procuring entit92 /n case of pro"ects involving mi.

December 2009 Page .bidder7contractor and such other relevant reCuirements provided in RA @o2 +(5* and its implementing rules and regulationsG provided in item *2#20 of COA Circular @o2 !11+411! dated Ma9 (58 !11+ dated Ma9 (58 !11+ on the sub"ectB Reinstituting Selective Pre1Audit on Government Transactions& The e.2 Approving b9 Referendum8 the uidelines for Shopping and Small4 6alue Procurement approved per overnment Procurement Polic9 %oard & PP%' Resolution @o2 1+4!11+ dated !# @ovember !11+ &attached to this Guide as APPENDI< 5!H 02 Amendments to the Revised /RR approved per PP% Resolution @o2 ((4!11+ dated #1 @ovember !11+ &attached to this Guide as APPENDI< :!H 32 Amendments to the Revised /RR approved per overnment Procurement Polic9 %oard & PP%' Resolution @o2 (#4!11+ dated (0 December !11+ &attached to this Guide as APPENDI< 2!2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .4!11+ dated September #18 !11+ &attached to this Guide as APPENDI< 7!H . .tent of audit that can be conducted based on the Guide will be limited to the specific elements &areas7foci'8 procurements processes8 audit ob"ectives7sub4ob"ectives and audit activities mentioned in the various components of the Guide& The audit criteria used in the Guide are those prevailing at the time of the development of the Guide as followsB (2 uidelines Clarif9ing the Procurement Activities which ma9 be Andertaken -ithout an /ssued Allotment8 approved per overnment Procurement Polic9 %oard & PP%' Circular @o2 1(4!11+ dated Eanuar9 !!8 !11+ &attached to this Guide as APPENDI< 2!H !2 Revised /mplementing Rules and Regulations &/RR' of R2A2 @o2 +(5*8 approved per overnment Procurement Polic9 %oard & PP%' Resolution @o2 1#4!11+ dated Eul9 !!8 !11+ &attached to this Guide as APPENDI< 4!H #2 Amendments to the Revised /RR approved per overnment Procurement Polic9 %oard & PP%' Resolution @o2 104!11+ dated September #18 !11+ &attached to this Guide as APPENDI< 3!H *2 Philippine %idding Documents #rd :dition &October !11+' approved per PP% Resolution @o2 1.

December 2009 Page 0 .1ppb.&n'8 Republic Act @o2 +(5* otherwise known as the overnment Procurement Reform Act & PRA' which became effective in Eanuar9 !08 !11# Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .p# gppbIgppb2gov2ph END NOTE6 a2 -orld %ank)s Countr9 Procurement Assessment Report &Philippines' !1158 p2 (* b2 -orld %ank)s Countr9 Procurement Assessment Report &Philippines' !1158 p2 (3 c2 -orld %ank)s Countr9 Procurement Assessment Report &Philippines' !1158 p2 #3 d2 Section .1%(.Amendments8 revisions8 repeal8 and other changes in the above4 mentioned law8 rules and regulations will have the effect of correspondingl9 changing the affected portions of this Guide& Asers of this Guide should therefore apprise themselves of the laws7regulations prevailing as of the time of planning for8 e.ecution of8 and reporting on the audit and correspondingl9 modif9 the portions of the Guide affected b9 such amendments8 revisions8 repeal8 and other changes in the above4mentioned law8 rules and regulations2 >or the purpose8 the9 ma9 avail of the internet facilities of the PP%B """.

GENERA9 IN6TRUCTION6 ON THE U6E OF THE GUIDE Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .II.December 2009 Page 3 .

>ollowing are the steps to be considered b9 the user of this Guide8 Step ( J Determine the audit areas and audit ob"ectives based on Ris Assessment pursuant to e.isting regulations &e2g2 COA Circular @o2 !11+411! on selective pre4audit'2 Step ! 4 Determine the audit scope &e2g2 >or 9inancial:Compliance Audit procurement activities and transactions sub"ect to audit during a calendar 9ear'2 Step # J Determine the audit criteria that are relevant to the identified risks and audit scope& The audit criteria identified in the Audit Guide were the /RR of RA @o2 +(5* and PP% issuances prevailing during the time of the development of the Guide& >or his7her specific audit scope8 the auditor Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .isting regulations and7or on reCuirements of other regulations &e2g2 COA Circular @o2 !11+411! on selective pre4 audit'2 Procurement as defined in R2A2 @o2 +(5* should be identified as an audit area2 The audit sub4areas should likewise be identified2 The Table of Contents of this Audit Guide will be useful for the purpose of identif9ing these audit sub4areas2 >or each sub4area8 the audit ob0ectives shall be identified based on the risks determined during the Ris Assessment and7or based on the reCuirements of e.December 2009 Page 5 .

uestions in the #rd column of the audit matrices of this Guide shall be changed to correspond to the identified audit sub1 ob0ectives& 4444 ♣ 4444 /t is suggested that the auditor be proactive in the sense that he7she should have alread9 conducted auditorial review on the audit sub4areas that will impact on the succeeding sub4areas and7or audit sub4ob"ectives where audit findings7conclusions of non4compliance will result in audit decisions leading to the recommendations of imposition of sanctions on liable7responsible persons and7or recommendations of recover9 of pecuniar9 losses on the part of the Procuring :ntit92 The Guide is to be used according to the following seCuenceB • At an9 time during the Audit Period prior to An9 Procurement (stB %asic :lement J %ids and Awards Committee &%AC' !ndB %asic :lement 4 %AC Secretariat #rdB %asic :lement J Annual Procurement Plan &APP' Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . J Determine the audit activities that will attain the audit sub1ob0ectives& The Audit Activities identified in the Guide are mere suggestions and ma9 be substituted b9 the auditor with more effective8 efficient8 and economical activities which are more workable under his7her specific audit situation2 Step 0 J Determine the audit .shall determine versions of RA +(5*8 its /RR and PP% issuances and identif9 those that are applicable to the procurements sub"ect of his7her audit2 /f no changes7updates have occurred8 the Audit Guide ma9 be used as is2 Otherwise8 the audit criteria as Cuoted in the first column of the audit matrices of this Guide shall be changed to reflect those that are applicable to the audit scope& Step * J Determine the audit sub1ob0ectives& The audit sub1ob0ectives in the first column of the audit matrices shall correspond to the identified audit ob0ective#s$ and the audit criteria identified in Step # above2 Step .uestions that will match the audit sub1 ob0ectives& The audit .December 2009 Page + .

*thB %asic :lement J Customi.ed %idding Documents • During Specific Procurements .thB %asic :lement J %AC Observers 0thB %asic :lement J %AC Technical -orking roup &T.December 2009 Page (1 .' 3thB Procurement Process 4 depending on the item to be procured8 i2e28 goods8 infrastructure pro"ects or consulting services D depending on the method of procurement8 i2e28 competitive bidding or alternative method of procurement • Apon discover9 of non4compliances either through the Procurement Monitoring Reports or during the audit conducted Offenses and Penalties Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

III. GUIDE IN THE AUDIT OF PROCUREMENT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (( .

O' t#e +asic E)eme't= +ID6 AND A>ARD6 COMMITTEE (+AC! +A6IC E9EMENT – +ID6 AND A>ARD6 COMMITTEE A2 AAD/T O%E:CT/6:SB (2 To verif9 the e?iste'ce of the %ids and Awards Committee &%AC'8 !2 To verif9 if the +AC c%mp%siti%' is in accordance with laws7regulations8 #2 To verif9 if the term of members of the %AC is fi.December 2009 Page (! .ed at one &(' 9ear reckoned from the date of appointment2 *2 To verif9 if the %AC prepared a pr%c&reme't m%'it%ri'1 rep%rt as reCuired b9 regulations and had it approved b9 the ?ead of the Procuring :ntit9 for submission to the PP% within the reCuired timeline2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R $ist of documents needed &those applicable to the procurements sub"ect of audit for the audit period'B Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

2 Office Orders designating the alternate members of the %ACH 02 Office Orders of replacements and evidences of absence of the %AC members the9 are replacing and the period of absence &e2g2 approved applications for leave'H 32 Plantilla7Organi.December 2009 Page (# .ational Chart of the procuring entit9H 52 -ork ?istor9 and evidences of training on procurement of %AC membersH +2 Minutes of meeting of $ A %AC electing the Chairman and 6ice4ChairmanH (12 Approved Procurement Monitoring ReportsH ((2 Others as appropriate based on the audit sub4ob"ective and audit activit92 Audit Sub4ob"ective • Audit Criteria -.and branches of government? #ii$ the governing Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines !2 Compare the Office Order&s' creating the %AC&s' as followsB a2 @ame and position of the signator9 vs2 the name and position of the ?OP: per his appointment7 designating Office or Assignment OrderH b2 /n @ As8 constitutional commissions or offices8 and branches of governmentH and in OCCs8 >/s8 and SACs8 if the ?OP: is not the signator98 -as the %AC created b9 the ?ead of the Procuring :ntit9 &?OP:'M Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .or his duly authori=ed official. T% (eri$* i$ t#e Head %$ t#e Pr%c&ri'1 E'tit* (HOPE! "as t#e %'e t#at created t#e +AC "mplementing Rules and Regulations #"RR$ of RA '()*.for %GAs and the constitutional commissions or offices. T% (eri$* i$ a +ids a'd A"ards C%mmittee (+AC! e?ists i' t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.ing a specific official to act on his7her7their behalfH #2 Office Orders creating the previous %ACs and the present %ACH *2 Office Orders designating the Chairman and 6ice4Chairman of the %ACH .(2 Appointment of the ?ead of the Procuring :ntit9 &?OP:'8 if an individualH !2 Office Order of or the OCC7 >/ %oard Resolution designating7authori.as amended on September 4.as amended on September 4.466'8 • ((&4&( The >ead of the Procuring /ntity shall designate at least five but not more than seven members of the +AC of un.uestionable integrity and procurement proficiency& • 7 #t$& >ead of the Procuring /ntity& Refers to8 #i$ the head of the agency or body.466'8 • ((&(&( < /ach procuring entity shall establish in its head office a single +AC to underta e the functions specified in Section (4 of the Revised "RR of RA '()* in order to facilitate professionali=ation and harmoni=ation of procedures and standards& Audit Activities (2 >rom the documents &e2g2 Office Orders8 Resolutions' relative to procurements to be audited evidencing the creation of the %AC8 using the one &(' 9ear term from the creation of the %AC as basis8 determine if a %AC e.isted for the procurements at hand or for future procurements to be sub"ect of audit2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer /s there a %AC in the procuring entit9M 2.

but not more than 3M /f the number of %AC members is eCual to the minimum of .466'8 • ((&4&( The >ead of the Procuring /ntity shall designate at least five but not more than seven members of the +AC of un.December 2009 Page (* .8 were there onl9 three &#' regular members and two &!' provisional membersM /f the number of %AC members is eCual to si. T% (eri$* i$ t#e '&mber %$ +AC members c%'$%rms t% t#e re@&ired '&mber %$ at )east 7 b&t '%t m%re t#a' : "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.however.That in an agency.Audit Sub4ob"ective • Audit Criteria board or its duly authori=ed official.for GOCCs.ed official per Office Order or %oard Resolution designating him7her2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer 4.or office& Audit Activities @ame and position of the signator9 vs2 the name and position of the dul9 authori.sub0ect to the limitations and authority delegated by the head of the agencydepartment.uestionable integrity and procurement proficiency& #2 Compare the number of %AC members per Office Order&s' with the reCuired number2 Did the number of %AC members conform to the reCuired number of at least . &0'8 were thereB a2 three &#' regular members and three &#' provisional membersM OR b2 at most four &*' regular members and two &!' provisional membersM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .or office where the procurement is decentrali=ed the head of its decentrali=ed unit shall be considered as the head of the Procuring /ntity.department.G9"s and SUCs? or #iii$ the local chief e@ecutive for AGUs8 Provided.

.th rank and permanent status2 -ere Regular Members of the %AC at least .2 Compare the rank and status of the %AC Chairman per Plantilla of the Procuring :ntit9 with the reCuired at least #rd rank and permanent status2 -as the %AC Chairman designated as suchM -as the %AC ChairmanB a2 at least a #rd ranking official of the Procuring :ntit9M b2 of permanent statusM 02 >or Regular Members8 compare their rank and status per Plantilla of the Procuring :ntit9 with the reCuired at least .th ranking officials of the Procuring :ntit9M 32 >or Regular -ere Regular Members8 compare Members of the their status per %AC of "mplementing Rules and Regulations Plantilla of the permanent #"RR$ of RA '()*.December 2009 Page (. represe'tati(e %$ t#e 9e1a) %r Admi'istrati(e area0 at )east a 7t# ra'Ai'1 perma'e't %$$icia) %$ t#e pr%c&ri'1 e'tit* "it# A'%")ed1e0 e?perie'ce a'd.as amended on Procuring :ntit9 and statusM September 4. represe'tati(e %$ t#e Fi'a'ce area0 at )east a t#ird ra'Ai'1 perma'e't %$$icia) %$ t#e pr%c&ri'1 e'tit* "it# A'%")ed1e0 e?perie'ce a'd.%r e?pertise i' pr%c&reme'tB c. GOCCs.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer /f the number of %AC members is eCual to the ma. C#airma' .GFIs0 t% (eri$* i$ t#e @&a)i$icati%'s %$ t#e re1&)ar members %$ t#e +AC c%'$%rm "it# t#e re@&ireme'ts= a. F%r #ead %$$ices %$ Nati%'a) G%(er'me't A1e'cies. at )east a t#ird ra'Ai'1 perma'e't %$$icia) %$ t#e pr%c&ri'1 e'tit*B b.' regular members and two &!' provisional membersM 3.imum of seven &3'8 were thereB a2 three &#' regular members and at most four &*' provisional membersM OR b2 four &*' regular members and three &#' provisional membersM OR c2 at most five &.466'8 per his7her Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .%r e?pertise i' pr%c&reme't *2 6erif9 from the Office Order constituting the %AC if the Chairman was designated as such2 .

C#airma'0 at )east a 4rd ra'Ai'1 perma'e't %$$icia) (12 6erif9 from the Office Order constituting the %AC if the Chairman was designated as such2 ((2 Compare the rank and status of the %AC Chairman per Plantilla of the Procuring :ntit9)s bureau8 regional office8 sub4 regional office8 or district office with the reCuired at least #rd rank in said Office and permanent status2 -as the %AC Chairman designated as suchM -as the %AC ChairmanB a2 at least a #rd ranking official of the Procuring :ntit9)s bureau8 regional office8 sub4regional office8 or district officeM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .+AC members shall be at least a third ran ing permanent personnel& 7.pertise in procurementM -as7-ere there Regular members representing the legal or administrative area of the Procuring :ntit9M -as7-ere there Regular members representing the financial area of the Procuring :ntit9M %$$ices a'd s&b.constitutional commissions.pertise in procurementH +2 >or Regular Members8 verif9 from their work assignments if at the time of designation the legal area or administrative areas and the financial area were represented2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer • ((&4&4& The +AC for %GAsdepartments.district %$$ices %$ NGAs0 departme'ts0 %r i'str&me'ta)ities %$ t#e G%(er'me't %$ t#e P#i)ippi'es (GOP!0 i'c)&di'1 t#e C&dicia) a'd )e1is)ati(e bra'c#es0 c%'stit&ti%'a) c%mmissi%'s0 6UCs0 GOCCs0 a'd GFIs0 t% (eri$* i$ t#e @&a)i$icati%'s %$ t#e re1&)ar +AC members c%'$%rm t% t#e re@&ireme'ts= a.with nowledge.perience and7or e.who is at least a fifth ran ing permanent official.who is at least a fifth ran ing permanent official.e@perience and:or e@pertise in procurement whoto the e@tent possiblerepresents the legal or administrative area of the procuring entity.who is at least a third ran ing permanent official of the procuring entity? b&An officer.provided that in the case of bureaus.SUCs.GOCCs.with nowledge.December 2009 Page (0 . F%r b&rea&s0 re1i%'a) -ere Regular Members with knowledge8 e.Audit Sub4ob"ective • Audit Criteria Audit Activities appointment8 with the reCuired permanent status2 52 >or Regular Members8 verif9 from their -ork ?istor9 and training documents if the9 have knowledge8 e.regional offices and sub1regional:district offices.and G9"s shall be composed of the following8 Regular 5embers a&Chairman.e@perience and:or e@pertise in procurement whoto the e@tent possiblerepresents the finance area of the procuring entity.provided that in the case of bureausregional offices and sub1 regional:district offices.perience and7or e.offices.or instrumentalities of the GOPincluding the 0udicial and legislative branches.bureaus.+AC members shall be at least a third ran ing permanent personnel? c& An officer. re1i%'a).

regional offices and sub1regional:district offices.and G9"s shall be composed of the following8 Regular 5embers a&Chairman.%r e?pertise i' pr%c&reme't "mplementing Rules and Regulations #"RR$ of RA '()*.or instrumentalities of the GOPincluding the 0udicial and legislative branches.%r e?pertise i' pr%c&reme'tB c.e@perience and:or e@pertise in procurement whoto the e@tent possiblerepresents the legal or administrative area of the procuring entity.offices.+AC members shall be at least a third ran ing permanent personnel? c& An officer.466'8 • ((&4&4& The +AC for %GAsdepartments.perience and7or e.GOCCs.SUCs.pertise in procurement2 (. Fi'a'ce area represe'tati(e0 at )east a 4rd ra'Ai'1 perma'e't %$$icia) %$ t#e pr%c&ri'1 e'tit* "it# A'%")ed1e0 e?perie'ce a'd.e@perience and:or e@pertise in procurement whoto the e@tent possiblerepresents the finance area of the procuring entity.bureaus.as amended on September 4. 9e1a) %r Admi'istrati(e area represe'tati(e0 at )east a 4rd ra'Ai'1 perma'e't %$$icia) %$ t#e pr%c&ri'1 e'tit* "it# A'%")ed1e0 e?perie'ce a'd.who is at least a third ran ing permanent official of the procuring entity? b&An officer.provided that in the case of bureausregional offices and sub1 Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer b2 of permanent statusM (!2 >or Regular Members8 compare their rank and status per Plantilla of the Procuring :ntit9)s bureau8 regional office8 sub4regional office8 or district office with the reCuired at least #rd rank and permanent status2 (#2 >or Regular Members8 compare their status per Plantilla of the Procuring :ntit9)s bureau8 regional office8 sub4regional office8 or district office and per his7her appointment8 with the reCuired permanent status2 (*2 >or Regular Members8 verif9 from their -ork ?istor9 and training documents if the9 have knowledge8 e.who is at least a fifth ran ing permanent official.with nowledge.2 >or Regular Members8 verif9 from their work assignments if at the time of designation the legal area or administrative areas and the financial area of the Procuring :ntit9)s bureau8 regional office8 sub4 regional office8 or district office were represented2 -ere Regular Members of the %AC at least #rd ranking officials of the Procuring :ntit9)s bureau8 regional office8 sub4regional office8 or district officeM -ere Regular Members of the %AC of permanent statusM -ere Regular Members with knowledge8 e.Audit Sub4ob"ective • Audit Criteria %$ t#e pr%c&ri'1 e'tit*B b.pertise in procurementM -as7-ere there Regular members representing the legal or administrative area of the Procuring :ntit9)s bureau8 regional office8 sub4 regional office8 or district officeM -as7-ere there Regular members representing the financial area of the Procuring :ntit9)s bureau8 regional office8 sub4regional office8 or district officeM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (3 .provided that in the case of bureaus.who is at least a fifth ran ing permanent official.with nowledge.constitutional commissions.perience and7or e.

&The +AC for Aocal Government Units shall be composed of the following8 a& One representative each from the regular offices under the Office of the Aocal Chief >or $ocal overnment Anits &$ As'B (32 Compare the Office assignments as indicated in the Appointment and Assignment Documents of the designated members of the %AC with the regular Offices under the Office of the $ocal Chief :.the 2ice1 Chairman shall be a regular member of the +AC& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer 5.466'8 • ((&4&4& < The Chairman and the 2ice1 Chairman shall also be designated by the >ead of the procuring entity& 5oreover.C#airma' "as desi1'ated b* t#e Head %$ t#e pr%c&ri'1 e'tit* $r%m t#e re1&)ar members %$ t#e +AC (02 6erif9 from the Office Order if from among the Regular Members of the %AC8 the 6ice4Chairman was designated as such2 -as the %AC 6ice4 Chairman designated as such from the regular members of the %ACM "mplementing Rules and Regulations #"RR$ of RA '()*.GOCCs.ecutiveM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria regional:district offices.the term BpermanentC shall refer to a plantilla position within the procuring entity concerned& :. F%r )%ca) 1%(er'me't &'its0 t% (eri$* i$ t#e +AC is c%mp%sed %$ %'e represe'tati(e eac# $r%m t#e re1&)ar %$$ices &'der t#e O$$ice %$ t#e 9%ca) C#ie$ E?ec&ti(e "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.ational7 >unctional chart2 Are the members of the %AC from the regular offices under the Office of the $ocal Chief :.December 2009 Page (5 .466'8 • ((&4&.as amended on September 4.ecutive per $ A)s Organi.the 2ice1 Chairman shall be a regular member of the +AC& 9or purposes of this "RR.GFIs0 t% (eri$* i$ t#e 8ice. F%r Nati%'a) G%(er'me't A1e'cies.+AC members shall be at least a third ran ing permanent personnel& • ((&4&4& < The Chairman and the 2ice1 Chairman shall also be designated by the >ead of the procuring entity& 5oreover.

Aegal Office/ngineering Office.Aegal Office/ngineering Office.&The +AC for Aocal Government Units shall be composed of the following8 a& One representative each from the regular offices under the Office of the Aocal Chief /@ecutive such as.466'8 • ((&4&.466'8 • ((&4&.but not limited to.as amended on September 4. F%r )%ca) 1%(er'me't &'its0 t% (eri$* i$ t#e members %$ t#e +AC are pers%''e) %cc&p*i'1 p)a'ti))a p%siti%'s %$ t#e pr%c&ri'1 e'tit* c%'cer'ed "mplementing Rules and Regulations #"RR$ of RA '()*. F%r )%ca) 1%(er'me't &'its0 t% (eri$* i$ at )east %'e %$ t#e members represe'ts t#e e'd.as amended on September 4.the following8 Office of the Administrator+udget Office.December 2009 Page (+ .but not limited to.General Services Offices? and b& A representative from the end user unit& >or $ocal overnment Anits &$ As'B (52 Compare the Office assignment of the designated member4 representative4of4the4 end user unit to the %AC as indicated in the Office Order creating the %AC with the Office assignment of the official as it appears in the Appointment documents7Assignment Order2 /s there a representative in the %AC from the end user unitM .&ser &'it "mplementing Rules and Regulations #"RR$ of RA '()*.General Services Offices? and b& A representative from the end user unit& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer 2.Audit Sub4ob"ective • Audit Criteria /@ecutive such as.&The +AC for Aocal Government Units shall be composed of the following8 a& < b& < The members shall elect among themselves who shall act as Chairman and 2ice1Chairman& The Chairman of the +AC shall be at least a third ran ing permanent official of the procuring entity& The members of the +AC shall be >or $ocal overnment Anits &$ As'B (+2 >rom the Appointment documents7Assignment Orders of the members of the %AC obtain information on their respective position titles and compare these with the Plantilla of the Procuring :ntit92 Did the members of the %AC occup9 plantilla positions of the procuring entit9 concernedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the following8 Office of the Administrator+udget Office.

&The +AC for Aocal Government Units shall be composed of the following8 a& < b& < The members shall elect among themselves who shall act as Chairman and 2ice1Chairman& The Chairman of the +AC shall be at least a third ran ing permanent official of the procuring entity& The members of the +AC shall be personnel occupying plantilla positions of the procuring entity concerned& >or $ocal overnment Anits &$ As'B !12 >rom the relevant Minutes of meetings of the %AC8 compare the name and position of the Chairman with the name and position of the person elected b9 the members from among themselves to act as Chairman and 6ice4Chairman2 !(2 Compare the rank and status of the %AC Chairman per Plantilla of the Procuring :ntit9 with the reCuired at least #rd rank and permanent status2 Did the members of the %AC elect among themselvesB a2 the ChairmanM b2 6ice ChairmanM -as the Chairman of the %ACB a2 at least a #rd ranking official of the procuring entit9M b2 a permanent official of the procuring entit9M -ere the Cualifications of designated alternate members of the %AC the same as the Cualifications of their principalsM --.C#airma'. F%r )%ca) 1%(er'me't &'its0 t% (eri$* i$ t#e desi1'ated members %$ t#e +AC e)ected am%'1 t#emse)(es "#% s#a)) act as C#airma' a'd 8ice.466'8 • ((&4&. T% (eri$* i$ desi1'ated a)ter'ate members %$ t#e +AC #a(e t#e same @&a)i$icati%'s as t#eir pri'cipa)s "mplementing Rules and Regulations #"RR$ of RA '()*. "mplementing Rules and Regulations #"RR$ of RA '()*.who shall have the same .Audit Sub4ob"ective • Audit Criteria personnel occupying plantilla positions of the procuring entity concerned& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer -0.as amended on September 4.466'8 • ((&4&*& The >ead of the Procuring /ntity may designate alternate members to the +AC.ualifications as their principals as set in the Act and this "RR& The alternate members shall attend meetings of the +AC and receive the corresponding honorariawhenever their principals are absent& The alternate members shall have the same term as their principals& The accountability of the principal and the alternate member shall be limited to their respective acts and decisions& !!2 >or alternate members8 compare the Cualifications of designated alternate members of the %AC with the Cualifications of their principals2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4.December 2009 Page !1 .

the replacement shall serve only for the duration of the leave or suspension& 9or 0ustifiable causes.pired term2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer -as the term of all members of the %AC within the fi.they shall continue to e@ercise their functions until new +AC members are designated& "n case of resignation.466'8 • ((&4&7& "n no case shall the >ead of the Procuring /ntity and:or the approving authority be the Chairman or a member of the +AC& Audit Activities !#2 >rom the Office Orders creating the previous %ACs and the Office Order of the new %AC8 compare the term of all members of the %AC with the fi.2 >or a %AC member designated to replace a member who went on leave or was suspended8 compare his7her term with the duration of the leave or suspension2 !02 Compare the name and position of the ?ead of the Procuring :ntit9 and7or the approving authorit9 &from Appointment documents7election documents7relevant Office Orders7 Assignment Orders' with the names and positions of the Chairman and all members of the %AC2 PROCUREMENT MONITORING REPORT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .%r appr%(i'1 a&t#%rit* is '%t t#e C#airma' %r a member %$ t#e +AC "mplementing Rules and Regulations #"RR$ of RA '()*.renewable at the discretion of the >ead of the Procuring /ntity& Upon e@piration of the terms of the current members.transfer.pired term onl9M -as the term of replacements for reason of leave or suspension within the duration of the said leave or suspension onl9M /s the ?OP:B a2 @OT the Chairman of the %ACM A@D b2 @OT a member of the %ACM /s the approving authorit9B a2 @OT the Chairman of the %ACM A@D b2 @OT a member of the %ACM !.466'8 • ((&4&D& Unless sooner removed for a cause.retirementseparation.Audit Sub4ob"ective • Audit Criteria -2.That in case of leave or suspension.re1 assignment.the replacement shall serve only for the une@pired term8 Providedhowever.a member shall be suspended or removed by the >ead of the Procuring /ntity& -4.as amended on September 4. T% (eri$* i$ t#e members %$ t#e +AC #a(e a $i?ed term %$ .December 2009 Page !( . T% (eri$* i$ t#e HOPE a'd.*ear recA%'ed $r%m t#e date %$ app%i'tme't0 re'e"ab)e at t#e discreti%' %$ t#e HOPE "mplementing Rules and Regulations #"RR$ of RA '()*.ed term of one &(' 9ear reckoned from the date of appointment8 renewable at the discretion of the ?ead of the Procuring :ntit92 !*2 >or a %AC member designated to replace a resigned8 retired8 separated8 transferred8 re4assigned8 removed8 or dead member8 compare his7her term with the un4e.the members of the +AC shall have a fi@ed term of one #($ year rec oned from the date of appointment.or death.as amended on September 4.ed term of one &(' 9ear reckoned from the date of appointmentM -as the term of replacements for reason of resignation8 retirement8 separation8 transfer8 re4 assignment8 removal8 or death within the un4 e.removal.

December 2009 Page !! . s&bmitted t#e m%'it%ri'1 rep%rt t% t#e Head %$ t#e Pr%c&ri'1 E'tit* (HOPE! $%r appr%(a) a'd s&bmissi%' t% t#e GPP+ i' pri'ted a'd e)ectr%'ic $%rmat "it#i' -3 da*s a$ter t#e e'd %$ eac# semester "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 (4&4& The +AC shall be responsible for ensuring that the procuring entity abides by the standards set forth by the Act and this "RR. pr%c&reme't c%'$ere'ce t% t#e iss&a'ce %$ t#e '%tice %$ a"ard a'd t#e appr%(a) %$ t#e c%'tract0 i'c)&di'1 t#e sta'dard a'd act&a) time $%r eac# maC%r pr%c&reme't acti(it*B c.Audit Sub4ob"ective • Audit Criteria -. T% (eri$* i$ t#e +AC= a.1%i'1 a'd c%mp)eted0 $r%m t#e #%)di'1 %$ t#e pre.and it shall prepare a procurement monitoring report in the form prescribed by the GPP+& The procurement monitoring report shall cover all procurement activities specified in the APPwhether ongoing and completed- Audit Activities (2 %ased on approved Procurement 5onitoring Reports and communications on submissions &b9 the %AC to the ?OP: and b9 the ?OP: to the PP%' obtained from the %AC or the Office of the ?OP: and on a cop9 of the form reCuired b9 the PP%8 determine if the Reports are in the form prescribed2 !2 %ased on approved Procurement 5onitoring Reports and communications on submissions &b9 the %AC to the ?OP: and b9 the ?OP: to the PP%' obtained from the %AC or the Office of the ?OP:8 determine if the Reports covered all the items reCuired2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer Did the %AC prepare the procurement monitoring reports in the form prescribed b9 the PP%M Did the procurement monitoring reports prepared b9 the %AC coverB a2 all procurement activities specified in the APP8 whether on4 going and completedM b2 from the holding of the pre4procurement conference to the issuance of the notice of award and the approval of the contractM c2 standard and actual time for each ma"or procurement activit9M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4. c%(eri'1 a)) pr%c&reme't acti(ities speci$ied i' t#e A''&a) Pr%c&reme't P)a' (APP!0 "#et#er %'. prepared a pr%c&reme't m%'it%ri'1 rep%rt i' t#e $%rm prescribed b* t#e GPP+B b.

T% (eri$* i$ t#e HOPE= a.as amended on September 4. appr%(ed t#e Pr%c&reme't M%'it%ri'1 Rep%rt a'd b.466'8 (4&4& < The procurement monitoring report shall be approved and submitted by the >ead of the Procuring /ntity to the GPP+ in printed and electronic format within fourteen #(*$ calendar days after the end of each semester& 4.Audit Sub4ob"ective • Audit Criteria from the holding of the pre1 procurement conference to the issuance of notice of award and the approval of the contract.including the standard and actual time for each ma0or procurement activity& The procurement monitoring report shall be approved and submitted by the >ead of the Procuring /ntity to the GPP+ in printed and electronic format within fourteen #(*$ calendar days after the end of each semester& Audit Activities #2 %ased on approved Procurement 5onitoring Reports and communications on submissions &b9 the %AC to the ?OP: and b9 the ?OP: to the PP%' obtained from the %AC or the Office of the ?OP:8 verif9 if the Reports were submitted b9 the %AC to the ?OP: for approval and submission to the PP% in both printed and electronic format within (* calendar da9s after the end of each semester2 *2 %ased on approved Procurement 5onitoring Reports and communications on submissions b9 the ?OP: to the PP% obtained from the %AC or the Office of the ?OP:8 verif9 if the Reports were approved b9 the ?OP: and submitted to the PP% in both printed and electronic format within (* calendar da9s after the end of each semester2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer Did the %AC submit the procurement monitoring reports to the ?OP:B a2 for approvalM b2 for submission to the PP% in both printed and electronic formatM c2 for submission to the PP% within (* calendar da9s after the end of each semesterM Did the ?OP: approve procurement monitoring reportsM Did the ?OP: submit the procurement monitoring reports to the PP% in both printed and electronic formatM Did the ?OP: submit the approved procurement monitoring reports to the PP% within (* calendar da9s after the end of each semesterM • Anne@ C Period of Action on Procurement Activities 2.December 2009 Page !# . T% (eri$* i$ appr%priate acti%'s #a(e bee' taAe' b* t#e HOPE i' case %$ i'sta'ces %$ '%'c%mp)ia'ce c%mmitted Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines .2 /dentif9 instances of noncompliance discovered b9 the %AC and7or b9 the ?OP: in the Procurement -ere appropriate actions taken b9 the auditee in regard to instances of non4 complianceM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update . s&bmitted it t% t#e GPP+ i' pri'ted a'd e)ectr%'ic $%rmat "it#i' -3 da*s a$ter t#e e'd %$ eac# semester "mplementing Rules and Regulations #"RR$ of RA '()*.

T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. of the Act.466'8  D. 8ice.this "RR and all other relevant rules and regulations pertaining to public procurement& 02 ReCuest for information from the PP% on the actions the9 have taken on instances of noncompliance involving the auditee8 including non4submission of the Procurement Monitoring Report2 Did the PP% take action on instances of noncompliance involving the auditee8 including non4submission of the Procurement Monitoring ReportM E8A9UATING AUDIT E8IDENCE6 AUDIT -. T% (eri$* "#at acti%'s #a(e bee' taAe' b* t#e GPP+ i' re1ard t% i'sta'ces %$ '%'c%mp)ia'ce "mplementing Rules and Regulations #"RR$ of RA '()*.&(& The Government Procurement Policy +oard #GPP+$.December 2009 Page !* .C#airma'.c%mp)ia'ce %' t#e= a.%r bidders Audit Activities Monitoring ReportH and8 instances of noncompliance noted during the course of the audit2 $ook for information7documents on the actions taken b9 the auditee in regard to such non4 compliances and compare these with the actions reCuired b9 the Revised /RR of RA +(5* and other relevant regulations2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer 3.e the instances of non4compliances to establish the effects and develop appropriate audit recommendations2 Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as established in Section D. (a)idit* %$ t#e desi1'ati%' %$ t#e D+AC members.Audit Sub4ob"ective • Audit Criteria b* t#e +AC0 +AC T>G0 +AC 6ecretariat a'd. C#airma'EB b.as amended on September 4.shall have the following duties and responsibilities8 a& < < d& To ensure the proper implementation by procuring entities of the Act. (a)idit* %$ t#e acti%'s %$ t#e D+ACE i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9.

c%mp)ia'ce a'd maAe appr%priate a&dit rec%mme'dati%'s 4.Audit Sub4ob"ective • Audit Criteria c%'tractB c.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# ma'a1eme't • COA Circular %o& 466'166D dated September (7. a'd maAe appr%priate a&dit rec%mme'dati%'s 2.December 2009 Page !. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB d. etc.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars s of the Answer Anal9. .

O' t#e +asic E)eme't= +ID6 AND A>ARD6 COMMITTEEFs 6ECRETARIAT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !0 .

T% (eri$* i$ t#e pr%c&ri'1 e'tit*Fs +ids a'd A"ards C%mmittee (+AC! 6ecretariat "as c%'stit&ted b* t#e Head %$ t#e Pr%c&ri'1 E'tit* "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (*&( < The >OP/ shall create a Secretariat which will serve as the main support unit of the +AC& An e@isting organic office within the procuring entity may also be designated to serve as Secretariat& >oweverto strengthen and promote the professionali=ation of the organi=ationsE procuring unitthe >OP/ may create procurement units that may serve concurrently as +AC Secretariat in accordance with the guidelines issued by the .+A6IC E9EMENT – +AC 6ECRETARIAT A2 AAD/T O%E:CT/6:SB (2 To verif9 the e?iste'ce of the %ids and Awards Committee &%AC' Secretariat !2 To verif9 if the %AC Secretariat was c%'stit&ted as re@&ired b9 law7regulations #2 To verif9 if the designated Head of the %AC Secretariat is @&a)i$ied %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R $ist of documents needed &those applicable to the procurements sub"ect of audit for the audit period'B (2 Appointment of the ?ead of the Procuring :ntit9 &?OP:'8 if an individualH !2 Office Order of or the OCC7 >/ %oard Resolution designating7authori.ing a specific official to act on his7her7their behalfH #2 Office Orders creating the %AC SecretariatH *2 Office Order designating the ?ead of the %AC SecretariatH .2 Office Orders designating the alternate members of the %ACH 02 Plantilla7Organi.ational Chart of the procuring entit9H 32 -ork ?istor9 and evidences of training on procurement of the ?ead of the %AC SecretariatH 52 Others as appropriate based on the audit sub4ob"ective and audit activit92 Suggested Audit -orking Paper Audit Activities Audit =uestion (2 Compare the Office Order creating the %AC Secretariat as followsB a2 @ame and position of the signator9 vs2 the name and position of the ?OP: per his7her7their appointment&s'H b2 /n @ As8 constitutional commissions or offices8 and branches of governmentH and in OCCs8 >/s8 and SACs8 if the ?OP: is not the signator98 @ame and position of the signator9 vs2 the name and position of the dul9 authori.ed official per Office Order or %oard Resolution designating him7her2 -as the %AC Secretariat constituted b9 the ?ead of the Procuring :ntit9M Audit Sub4ob"ective • Audit Criteria -.+5 Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Le s @o Particular s of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !3 .

b* desi1'ati'1 a' e?isti'1 %r1a'ic %$$ice "it#i' t#e pr%c&ri'1 e'tit*0 c.A Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC 6ecretariat "as created= a.isting organic office within the procuring entit9M OR c2 b9 creating a procurement unit to serve concurrentl9 as %AC Secretariat in accordance with the guidelines issued b9 the D%MM • @OT:B The guidelines available are those in %udget Circular @o2 !113 4# dated @ovember !+8 !1138 %udget Circular @o2 !11*4. %r b* creati'1 a pr%c&reme't &'it t% ser(e c%'c&rre't)* as +AC 6ecretariat i' acc%rda'ce "it# t#e 1&ide)i'es iss&ed b* t#e D+M "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (*&( < The >OP/ shall create a Secretariat which will serve as the main support unit of the +AC& An e@isting organic office within the procuring entity may also be designated to serve as Secretariat& >oweverto strengthen and promote the professionali=ation of the organi=ationsE procuring unitthe >OP/ may create procurement units that may serve concurrently as +AC Secretariat in accordance with the guidelines issued by the .Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer 2.+5 !2 /dentif9 the method of creation and the functions of the %AC Secretariat from the Office Order and compare with the reCuirements of regulations2 -as the %AC Secretariat createdB a2 as a Secretariat to serve as the main support unit of the %ACM b2 b9 designating an e. as a 6ecretariat t% ser(e as t#e mai' s&pp%rt &'it %$ t#e +AC0 b.December 2009 Page !5 .

th rank &or if not available8 a ne. at )east a $i$t# ra'Ai'1 perma'e't emp)%*ee %r0 i$ '%t a(ai)ab)e0 a perma'e't %$$icia) %$ t#e 'e?t )%"er ra'AB b.t lower rank official in the bureaus8 regional offices Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .if not available.heads of Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines #2 /n the head office of the Procuring :ntit9B Compare the rank and status of the ?ead of the %AC Secretariat per Plantilla of the Procuring :ntit9 with the reCuired at least . district %$$ices0 %r i$ '%t a(ai)ab)e0 a perma'e't emp)%*ee %$ t#e 'e?t )%"er ra'AB c. p%ssesses i'te1rit*B d. dated March !#8 !11* on the rant of honoraria to overnment Personnel /nvolved in overnment Procurement2 Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer 4.th ranking official is not available8 was the ?ead of the %AC Secretariat at least of the ne.or if not available. and %udget Circular @o2 !11*4.ational unit concerned of the Procuring :ntit9 with the reCuired at least #rd rank &or if not available8 a ne.December 2009 Page !+ .re1i%'a). at )east a t#ird ra'Ai'1 perma'e't emp)%*ee i' b&rea&s0 re1i%'a) %$$ices a'd s&b.a permanent employee of the ne@t lower ran & "n addition to integrity.t lower rank' and permanent status -as the ?ead of the %AC Secretariat at least a fifth ranking official in the head officeM /f a .Audit Sub4ob"ective • Audit Criteria dated October 38 !11.t lower rank' and permanent status -as the ?ead of the %AC Secretariat at least a #rd ranking official in bureaus8 regional offices and sub4 regional7 district officesM /f a #rd ranking official is not available8 was the ?ead of the %AC Secretariat at least of the ne. p%ssesses pr%c&reme't pr%$icie'c* "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (*&4 The head of the Secretariat in central offices shall be at least a fifth ran ing permanent employee or.t lower rank official in the head officeM -as the ?ead of the %AC Secretariat a permanent official in the head officeM *2 /n bureaus8 regional offices and sub4 regional7 district offices of the Procuring :ntit9B Compare the rank and status of the ?ead of the %AC Secretariat per Plantilla of the organi. T% (eri$* i$ t#e Head %$ t#e +AC 6ecretariat met t#e $%))%"i'1 @&a)i$icati%'s= a.a permanent official of the ne@t lower ran ? or shall be at least a third ran ing permanent employee in bureausregional offices and sub1 regional: district offices.

c%mp)ia'ce a'd maAe appr%priate a&dit rec%mme'dati%'s 4.2 /dentif9 the criteria 7 method adopted b9 the procuring entit9 in considering Fintegrit9G as a factor in designating the ?ead of the %AC Secretariat2 02 >rom the -ork ?istor9 and training documents of the ?ead of the %AC Secretariat verif9 if he7she has procurement proficienc92 Did the procuring entit9 consider integrit9 as a factor in designating the ?ead of the %AC SecretariatM Did the ?ead of the %AC Secretariat possess procurement proficienc9M Le s @o Particular s of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. T% (eri$* t#e e$$ects non4compliances to %$ i'sta'ces %$ '%'.December 2009 Page #1 .Audit Sub4ob"ective • Audit Criteria Procuring /ntities shall consider procurement proficiency as a factor in designating the head of the Secretariat and Procurement Unit Suggested Audit -orking Paper Audit Activities Audit =uestion and sub4regional7 district officesM -as the ?ead of the %AC Secretariat a permanent official in the bureaus8 regional offices and sub4 regional7 district officesM .e the instances of Appropriate Audit -orking Papers -. establish the effects and c%mp)ia'ce a'd maAe develop appropriate appr%priate a&dit audit recommendations2 rec%mme'dati%'s 2. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# ma'a1eme't • COA Circular %o& 466'166D dated September (7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Anal9.

O' t#e +asic E)eme't= ANNUA9 PROCUREMENT P9AN (APP! Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #( .

December 2009 Page #! .ation of the modes of procurement under the APPH *2 Relevant portions of the AA &national government' or corporate budget & OCCs D >/s' or budget ordinance &$ As'H .ational Chart7Plantilla or other document with information on the rank of the designated officialH 52 Approved updated APP with supporting PPMPsH +2 Apdated budget approved b9 the ?OP: or the designated second4ranking officialH (12 Authorit9 for the supplemental7updated budget &appropriation document for the supplemental appropriation8 supplemental or updated corporate budget8 supplemental or updated budget resolution'2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . ANNUA9 PROCUREMENT P9AN (APP! A2 AAD/T O%E:CT/6:SB (2 To verif9 the e?iste'ce of an approved Annual Procurement Plan #APP$ and supporting Pro0ect Procurement 5anagement Plans #PP5Ps$ !2 To verif9 the completeness of the reCuired information in the APP %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ $ist of Documents neededB (2 %udget approved b9 the ?OP: &could be the %udget Proposal approved b9 the ?OP: if the AA8 corporate budget or budget ordinance has not 9et become final'H !2 Approved APP with supporting PPMPs based on the final budget per AA8 corporate budget8 or budget ordinance &could be the initial approved APP based on the approved budget proposal when the budget has not 9et become final'H #2 Cop9 of the report on the review of the PPMPs conducted b9 the %AC Secretariat pertaining to the finali.2 Appointment document of the ?OP:H 02 Office order designating the official to act on behalf of the ?OP:8 if applicableH 32 Organi.+A6IC E9EMENT .

466'8 • 3&4& The APP shall bear the approval of the >OP/ or second Fran ing official designated by the >OP/ to act on his behalf.&*& <budget office shall furnish a copy of the procuring entityEs budget proposal as well as the corresponding PP5Ps to the +AC Secretariat for its review and consolidation into the proposed APP • 3&.466'8 • 3&.&7& < end1user units shall revise and ad0ust the PP5P to reflect the budgetary allocation for their respective PAPs& The revised PP5Ps shall be submitted to the +AC through its Secretariat for the finali=ation of the modes of procurement under the proposed APP • The APP shall then be approved in accordance with Sec 3&4 of this "RR& A&dit Acti(ities (2 Apon approval of the budget proposal b9 the ?OP:8 obtain a cop9 of the proposed APP from the %AC Secretariat2 OR -hen the AA8 corporate budget8 or appropriation ordinance8 as the case ma9 be8 becomes final8 obtain a cop9 of the approved APP from the %AC Secretariat2 6&11ested A&dit >%rAi'1 Paper A&dit He N% Partic&)ars %$ t#e A's"er G&esti%' s Does the entit9 have a proposed APPM Does the entit9 have an approved APPM 2.&4& The end1user units < shall prepare their respective PP5Ps< • 3&. ra'Ai'1 %$$icia) desi1'ated b* t#e HOPE t% act %' #is be#a)$ "mplementing Rules and Regulations #"RR$ of RA '()*.and must be consistent with its duly approved yearly budget Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines !2 Compare the name8 position8 and designation of the person who approved the APP with the relevant data in the appointment document of the ?OP:2 !2(2 /f the signator9 is not the ?OP:8 compare the name8 position8 and designation of the person who approved the APP with the relevant data in the office order designating the official to act on behalf of the ?OP:2 /s the APP approved b9 the ?OP: or second4 ranking official designated b9 the ?OP: to act on his behalfM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e APP is appr%(ed b* t#e HOPE %r b* a sec%'d.%bCecti(e • Audit Criteria -.December 2009 Page ## .as amended on September 4.as amended on September 4. T% (eri$* i$ t#e pr%c&ri'1 e'tit* #as a' A''&a) Pr%c&reme't P)a' (APP! "mplementing Rules and Regulations #"RR$ of RA '()*.A&dit 6&b.

&ser &'itB 1e'era) descripti%' %$ t#e pr%c&reme'tB pr%c&reme't met#%d t% be ad%ptedB time sc#ed&)e $%r eac# pr%c&reme't acti(it*B s%&rce %$ $&'dB appr%(ed b&d1et $%r t#e c%'tract. c.December 2009 Page #* .uisite document that the agency must prepare to f2 source of reflect the entire fundM procurement activity #i&e&.A&dit 6&b. T% (eri$* i$ t#e APP c%'tai's t#e $%))%"i'1 i'$%rmati%'= a.goods.&4& Annual procurement Procurement Plan #APP$ activit9M F the re.ational Structure 7 Plantilla of the procuring entit92 6&11ested A&dit >%rAi'1 Paper A&dit He N% Partic&)ars %$ t#e A's"er G&esti%' s 4. $.&4&.&4&4& Pro0ect management office or end1user unit? . d. e. #2 >rom the APP8 look for the following informationB a2 name of the procurement program7 pro"ectH b2 pro"ect management office or end4user unitH c2 general description of the procurementH d2 procurement method to be adoptedH e2 time schedule for each procurement activit9H f2 source of fundH g2 approved budget for the contract2 Does the APP contain the following informationB a2 name of the procurement program7 pro"ectM b2 pro"ect management office or end4 user unitM c2 general description of the procurementM d2 procurement method to be adoptedM GPP+ Circular (1466' dated 46 Ganuary 466'8 • • e2 time schedule N for each .& General description of the procurement? Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .servicescivil wor s to be g2 approved procured$ that it plans budget for the to underta e within the contractM calendar year& This document contains the following information8 .&4&(& %ame of the procurement program:pro0ect? .%bCecti(e • Audit Criteria A&dit Acti(ities !2!2 Compare the rank of the designated official with the second4in4rank per Organi. b. 'ame %$ t#e pr%c&reme't pr%1ram. pr%CectB pr%Cect ma'a1eme't %$$ice %r e'd. 1.

T% (eri$* i$ t#e items i' t#e appr%(ed APP "ere i'c)&ded i' t#e PPMPs "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.&4&D& Source of fund? and .%bCecti(e • Audit Criteria .A&dit 6&b.December 2009 Page #.&*& <budget office shall furnish a copy of the procuring entityEs budget proposal as well as the corresponding PP5Ps to the +AC Secretariat for its review and consolidation into the proposed APP • 3&.&4&3& Approved +udget for the Contract& A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper A&dit He N% Partic&)ars %$ t#e A's"er G&esti%' s 3.&ser &'its "mplementing Rules and Regulations #"RR$ of RA '()*.&7& < end1user units shall revise and ad0ust the PP5P to reflect the budgetary allocation for their respective PAPs& The revised PP5Ps shall be submitted to the +AC through its Secretariat for the finali=ation of the modes of procurement under the proposed APP *2 Apon approval of the budget proposal b9 the ?OP:8 obtain from the %AC Secretariat a cop9 each of the PPMPs which it reviewed and consolidated into the proposed APP2 Also obtain a cop9 of the report on the review of the PPMPs conducted b9 the %AC Secretariat2 OR -hen the AA8 corporate budget8 or appropriation ordinance8 as the case ma9 be8 becomes final8 obtain from the %AC Secretariat a cop9 each of the PPMPs ad"usted b9 the end4 user units which it consolidated into the approved APP2 Also obtain a cop9 of the report on the review of the PPMPs conducted b9 the %AC Secretariat2 .2 Compare the items in the approved APP with the items in the PPMPs2 /dentif9 items which do not match2 /s the proposed APP supported b9 PPMPs prepared b9 the respective end4 user unitsM /s the approved APP supported b9 ad"usted PPMPs ad"usted b9 end4user units to reflect the final budgetM 7.466'8 Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Are the items in the approved APP included in the PPMPsM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • 3&. T% (eri$* i$ t#e APP is s&pp%rted b* PPMPs prepared b* t#e respecti(e e'd.&4&7& Time schedule for each procurement activity? . .&4& The end1user units < shall prepare their respective PP5Ps< • 3&.as amended on September 4.&4&*& Procurement method to be adopted? .

as amended on September 4.A&dit 6&b.December 2009 Page #0 . T% (eri$* t#e e$$ects %$ i'sta'ces %$ of non4compliances to establish the effects '%'.&4& The end1user units < shall prepare their respective PP5Ps< • 3&.466'8 • 3&(& All procurement shall be within the approved budget of the procuring entity and should be meticulously and 0udiciously planned by the procuring entity& • 3&4& %o procurement shall be underta en unless it is in accordance with the approved APP of the procuring entity& 02 Compare the items and budgets in the AA8 corporate budget8 appropriation ordinance8 as the case ma9 be8 with the items and amounts in the approved APP2 Does the APP match the budget per AA8 corporate budget8 appropriation ordinance8 as the case ma9 beM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. (a)idit* %$ t#e pr%c&reme't Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines appropriate audit recommendations2 Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .%bCecti(e • Audit Criteria • 3&.c%mp)ia'ce %' and develop t#e= a.e the instances Appropriate Audit -orking Papers -.&*& <budget office shall furnish a copy of the procuring entityEs budget proposal as well as the corresponding PP5Ps to the +AC Secretariat for its review and consolidation into the proposed APP • 3&.&7& < end1user units shall revise and ad0ust the PP5P to reflect the budgetary allocation for their respective PAPs& The revised PP5Ps shall be submitted to the +AC through its Secretariat for the finali=ation of the modes of procurement under the proposed APP A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper A&dit He N% Partic&)ars %$ t#e A's"er G&esti%' s 5. T% (eri$* i$ t#e APP matc#es t#e b&d1et per GAA0 c%rp%rate b&d1et0 appr%priati%' %rdi'a'ce0 as t#e case ma* be "mplementing Rules and Regulations #"RR$ of RA '()*.

%bCecti(e • Audit Criteria acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'1 66D dated September (7466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper A&dit He N% Partic&)ars %$ t#e A's"er G&esti%' s Anal9. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.A&dit 6&b.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4.December 2009 Page #3 . etc. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.

O' t#e +asic E)eme't= +ID6 AND A>ARD6 COMMITTEEFs O+6ER8ER6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #5 .

466'8 • (.ations and non4governmental organi.ationsH non4governmental organi.the +AC shall. 1%(er'me'ta) %r1a'iIati%'s! $r%m "#ic# Obser(ers "ere i'(ited $%r speci$ic pr%c&reme'ts "mplementing Rules and Regulations #"RR$ of RA '()*.ations' from which Observers were invited for specific procurements !2 To verif9 if the %AC implemented the mechanism and established the pool of professional organi.as amended on September 4.ationsH non4governmental organi.ationsH non4 governmental organi.se)ecti'1 t#e 1r%&p (pr%$essi%'a) %r1a'iIati%'sB '%'.ations from which the9 will select representatives as Observers in specific procurements %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ $ist of needed documentsB (2 Cop9 of the Polic9 on the mechanism for identif9ing7selecting the group &professional organi.ation2 Audit Sub4ob"ective • Audit Criteria -.&(& To enhance the transparency of the process.ations' from which Observers were invited for specific procurements2 !2 o through the polic9 and compare its provisions with the reCuirements of the /RR of RA @o2 +(5* pertaining to the selection of Observers for specific procurements2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC establish a mechanism for identif9ing7selecting the group &professional organi.ations' from which Observers were invited for specific procurementsH !2 Relevant Minutes of the %AC)s meetingsH #2 Documentation on the creation of the pool of relevant professional organi.in all stages of the procurement processinvite.T% (eri$* i$ t#e +AC estab)is#ed a'd is imp)eme'ti'1 a mec#a'ism $%r ide'ti$*i'1.at least two #4$ observers.to sit in its proceedings where8 Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Audit Activities (2 >rom the %AC Secretariat8 obtain a cop9 of the polic9 on the mechanism for identif9ing7selecting the group &professional organi.who shall not have the right to vote.ationsH *2 Documentation on selection of representatives of each organi.ations' from which Observers were invited for specific procurementsM Did the polic9 of the procuring entit9 on the selection of Observers conform with the reCuirements of the /RR of RA @o2 +(5* pertaining to the selection of Observers for specific procurements as followsB a2 One Observer from the Commission on AuditM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .+A6IC E9EMENT– +AC O+6ER8ER6 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC established a mechanism for identif9ing7selecting the group &professional organi.December 2009 Page #+ .ations and non4governmental organi.ationsH non4 governmental organi.in addition to the representative of the COA.

$ Philippine "nstitute of Civil /ngineers #P"C/$& ii$ 9or goods.for e@ample8 i$ 9or infrastructure pro0ects.national associations of constructors duly recogni=ed by the Construction "ndustry Authority of the Philippines #C"AP$.ation and7or its representative has no actual or potential conflict of interest in the contract to be bidM g2 Adopted other relevant criteria determined b9 the %ACM #2 Obtain and evaluate documents from the %AC Secretariat evidencing implementation of the polic9 &e2g2 relevant Minutes of the %AC)s meetings8 documentation of the pool of relevant Did the %AC implement the procuring entit9)s mechanism for identif9ing7selecting Observers for specific procurementsM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .pertise in procurement or in the sub"ect matter of the contract to be bidM f2 The organi.ed private group in a sector or discipline relevant to the procurement at handM c2 One Observer from a non4governmental organi.ation is registered with the S:C or with the Cooperative Development Authorit9 &CDA'M e2 The organi.perience or e.such as.ation)s representative has knowledge8 e."nc&? and #."nc&? #4$ %ational Constructors Association of the Philippines.Audit Sub4ob"ective • Audit Criteria a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.such asbut not limited to8 #($ P"C/? #4$ Philippine "nstitute of Certified Public Accountants #P"CPA$? and #.a specific relevant chamber1 member of the Philippine Chamber of Commerce and "ndustry& iii$ 9or consulting services.December 2009 Page *1 .ationM d2 The organi.$ Confederation of 9ilipino Consulting Organi=ations? and b$ The other observer shall come from a non1 government organi=ation #%GO$& • (.a pro0ect1related professional organi=ation accredited or duly recogni=ed by the Professional Regulation Commission or the Supreme Court.but not limited to the following8 #($ Philippine Constructors Association.&4& The observers shall Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer b2 One Observer from a dul9 recogni.

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't Anal9. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& Audit Activities professional organi.ations and non4 governmental organi.December 2009 Page *( .Audit Sub4ob"ective • Audit Criteria come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative . establish the effects c%mp)ia'ce %' t#e= a.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Appropriate Audit -orking Papers and develop appropriate audit recommendations2 Prepare the appropriate audit7 Audit Observation Memorandum &AOM'8 if validation document applicable reflecting the results of the audit7validation and transmit to • COA Circular %o& 466'166D Management Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2. T% (eri$* t#e e$$ects of non4compliances to %$ i'sta'ces %$ '%'. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. etc. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4.ations8 invitation letters'2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.e the instances Appropriate Audit -orking Papers -. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.A$.evelopment Authority #C.and should meet the following criteria8 a$ Hnowledge.

466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer O' t#e +asic E)eme't= +ID6 AND A>ARD6 COMMITTEEFs TECHNICA9 >ORJING GROUP (T>G! Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria dated September (7.December 2009 Page *! .

se)ecti'1 members %$ t#e Tec#'ica) >%rAi'1 Gr%&p $%r speci$ic pr%c&reme'ts "mplementing Rules and Regulations #"RR$ of RA '()*.perts created and:or legal e@perts to financial8 and7or legal from which assist in the procurement e.financiala pool of technical8 e.perts8 Office Orders including the creation of creating T.s for -as a pool of a Technical !or ing specific procurements' technical8 financial8 Group #T!G$ from a pool and verif9 if as a result and7or legal of technical.perts has been members of T.particularly in created from which for specific the eligibility screeningmembers of T.s for procurements ma9 evaluation of bids.perts from which the %AC will identif97select members of the Technical -orking roup for specific procurements2 Audit Sub4ob"ective • Audit Criteria -.+A6IC E9EMENT – +AC Tec#'ica) >%rAi'1 Gr%&p (T>G! A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC estab)is#ed a mec#a'ism for constituting the pool of technical8 financial8 and7or legal e.as amended on September 4.perts from which the9 will identif97select members of the Technical -orking roup for specific procurements !2 To verif9 if the %AC imp)eme'ted t#e mec#a'ism and established t#e p%%) %$ tec#'ica)0 $i'a'cia)0 a'd.s process.%r )e1a) e?perts from which the9 will identif97select members of the Technical -orking roup for specific procurements %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ $ist of needed documentsB (2 Cop9 of the polic9 on the mechanism for constituting the pool of technical8 financial8 and7or legal e.perts from which the %AC will identif97select members of the Technical -orking roup for specific procurementsH !2 Relevant Minutes of the %AC)s meetingsH #2 Documentation on the creation of the pool of technical8 financial8 and7or legal e.December 2009 Page *# .T% (eri$* i$ t#e +AC estab)is#ed a'd is imp)eme'ti'1 a mec#a'ism $%r ide'ti$*i'1.and specific procurements be selectedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 Audit Activities (2 >rom the %AC Secretariat8 obtain a cop9 of the polic9 on the mechanism for identif9ing7selecting members of the Technical -orking roup for specific procurements2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC establish a mechanism for identif9ing7selectin g members of the Technical -orking roup for specific procurementsM !2 Obtain documents Did the %AC from the %AC implement the Secretariat evidencing procuring entit9)s implementation of the mechanism for polic9 &e2g2 relevant identif9ing7selectin Minutes of the %AC)s g members of the (4&(& The +AC shall have meetings8 Technical -orking the following functions8 documentation of the roup for specific #a$ < # $ perform such pool of technical8 procurementsM other related functions as financial8 and7or legal may be necessarye.

etc.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers appropriate audit recommendations2 Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e of non4compliances to e$$ects %$ i'sta'ces establish the effects %$ '%'.e the instances Appropriate Audit -orking Papers -.c%mp)ia'ce and develop %' t#e= a. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4.ualification& Audit Activities ma9 be selected2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.Audit Sub4ob"ective • Audit Criteria post1.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Anal9. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'1 66D dated September (7.December 2009 Page ** . (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.

December 2009 Page *.O' t#e +asic E)eme't= CU6TOMIKED +IDDING DOCUMENT6 FOR GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . .

ed bidding documents for goods are complete !2 To verif9 if the forms and contents of the procuring entit9)s customi.T% (eri$* i$ t#e set %$ Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .to suit the particular needs of the procuring entitymodifications may be madeparticularly for ma0or and speciali=ed procurementsub0ect to the approval of the GPP+& NOTE= I$ t#e Pr%c&ri'1 E'tit* did '%t ad%pt a set %$ c&st%miIed biddi'1 d%c&me'ts $%r 1%%ds0 t#e s&cceedi'1 A&dit 6&b.Philippine +idding .ObCecti(es a'd re)ated Acti(ities 'eed '%t be per$%rmed a'd t#e re)ated A&dit G&esti%'s $%r t#is e)eme't 'eed '%t be a's"ered.ed bidding documents for goods are as prescribed b9 the PP% %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R Documents neededB Customi. !2 Compare the set of Are the items in the 2.ocuments #P+.ed bidding documents for goodsM A&dit Acti(ities (2 ReCuest for the customi.December 2009 :ST:D -ORK/@ oods 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the procuring entit9 adopt a set of customi.ed bidding documents for goods from the %AC Secretariat2 Page *0 .the use of the Generic Procurement 5anuals #GP5s$.ed %idding Documents for A&dit 6&b.+A6IC E9EMENT – CU6TOMIKED +IDDING DOCUMENT6 FOR GOOD6 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the procuring entit9)s customi.s$.%bCecti(e  Audit Criteria -. T% (eri$* i$ t#e pr%c&ri'1 e'tit* ad%pted a set %$ c&st%miIed biddi'1 d%c&me'ts $%r 1%%ds "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8  (3&( The bidding documents shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+&  D&4 Once issued by the GPP+.and other standard forms shall be mandatory upon all Procuring /ntities& >oweverwhenever necessary.

rd editionOctober 466' approved b9 the PP% per PP% Resolution @o2 1. I'str&cti%'s t% +idders0 i'c)&di'1 6c%pe %$ +id0 d%c&me'ts c%mprisi'1 t#e bid0 criteria $%r e)i1ibi)it*0 bid e(a)&ati%' met#%d%)%1*.%bCecti(e  Audit Criteria c&st%miIed biddi'1 d%c&me'ts $%r 1%%ds are c%mp)ete0 i. F%rm %$ C%'tract a'd Ge'era) a'd 6pecia) C%'diti%'s %$ C%'tract "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (3&( The bidding documents shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+& The bidding documents shall include the following8 a& Approved +udget for the Contract A&dit Acti(ities customi.s$ for Procurement of Goods.rd editionOctober 466' published b9 the PP%M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update ..criteria i' acc%rda'ce "it# t#e Act0 a'd p%st.ed bidding documents for goods complete when compared with the items in the Philippine +idding .A&dit 6&b. I'(itati%' t% +id c.4!11+ dated #1 September !11+ 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er customi.bid c%'$ere'ce ("#ere app)icab)e!0 s&bmissi%' %$ bids a'd %pe'i'1 %$ bids e. Tec#'ica) Dra"i'1s a'd 6peci$icati%'s $. F%rm0 am%&'t0 a'd (a)idit* %$ per$%rma'ce sec&rit* a'd "arra't* C. Appr%(ed +&d1et $%r t#e C%'tract0 b.s$ for Procurement of Goods.e..0 i'c)&de t#e $%))%"i'1= a.ocuments #P+. F%rm %$ +id0 Price F%rm0 a'd )ist %$ 1%%ds 1.ed bidding documents for goods with the Philippine +idding . De)i(er* 6c#ed&)e #.ocuments #P+.December 2009 Page *3 . E)i1ibi)it* Re@&ireme'ts d. F%rm0 am%&'t0 a'd (a)idit* peri%d %$ bid sec&rit* i. @&a)i$icati%'0 as "e)) as t#e date0 time a'd p)ace %$ t#e pre.

October 466' approved b9 the PP% per PP% Resolution @o2 1.rd /ditionOctober 466' approved b9 the PP% per PP% Resolution @o2 1.%$ t#e Re(ised IRR %$ RA N%.and validity period of bid security h& 9orm...ualification.amount..ocuments #P+.ed bidding documents for goods conform with the standard form prescribed b9 the PP%M Did the contents of the form of the "nvitation to +id in the customi.%bCecti(e  Audit Criteria b& "nvitation to +id c& /ligibility Re.and post1.4!11+ dated #1 September !11+ A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er 4.s$ for Procurement of Goods.200 dated 40 6eptember 200 L "it# 6ecti%' 2-.4!11+ dated #1 September !11+ Did the form of the "nvitation to +id in the customi.s$ for Procurement of Goods.December 2009 Page *5 . -23  Philippine +idding .uirements d "nstructions to +iddersincluding Scope of +iddocuments comprising the bid.elivery Schedule g& 9orm.amount.ocuments #P+.rd edition.time and place of the pre1bid conference #where applicable$submission of bids and opening of bids e& 9orm of +id.rd #2 Compare the individual documents of the procuring entit9)s customi.as well as the date.s$ for Procurement of Goods.and validity of performance security and warranty i& 9orm of Contract and General and Special Conditions of Contract&  Philippine +idding .Price 9orm. 07.. T% (eri$* i$ t#e $%rm a'd c%'te'ts %$ t#e c&st%miIed biddi'1 d%c&me'ts $%r 1%%ds c%'$%rm "it# t#%se i' t#e P#i)ippi'e +iddi'1 D%c&me'ts (P+Ds! $%r Pr%c&reme't %$ G%%ds0 4rd editi%'0 Oct%ber 200 appr%(ed b* t#e GPP+ per GPP+ Res%)&ti%' N%.bid evaluation methodology:criteria in accordance with the Act.A&dit 6&b.criteria for eligibility.and list of goods and services f& .ed bidding documents for goods conform with the contents of the "nvitation to +id prescribed b9 Section !(2( of the /RR of RA +(5* and the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for goods with the corresponding documents of the Philippine +idding .ocuments #P+.

the name of the contract to be bid and a brief description of the goods to be procured? b& A general statement on the criteria to be used by the procuring entity for the eligibility chec .ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Did the contents of the "nstructions to +idders in the customi.ocuments may be downloaded.uirements.ata Sheet prescribed b9 the P%DsM Did the form of the General Conditions of Contract in the customi.the price of the +idding .if any.December 2009 Page *+ .and.October 466' approved b9 the PP% per PP% Resolution @o2 1.the submission and receipt of bids.ata Sheet in the customi.the pre1bid conference.where applicable.4!11+ dated #1 September !11+ "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September .ocuments? g& The contract duration or delivery schedule? h& The name.A&dit 6&b.ata Sheet in the customi.ocumentsthe place where the +idding .466'8  4(&(& The "nvitation to +id shall provide prospective bidders the following information.ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ocuments may be secure.ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Did the contents of the +id .ualification.the e@amination and evaluation of bids.%bCecti(e  Audit Criteria edition.among others8 a& 9or the procurement of goods.and the opening of bids? d& A+C to be bid? e& The source of funding? f& The period of availability of the +idding .post1 .the website where the +idding .time and place of the deadline for the submission and receipt of the eligibility re.address- A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the form of the "nstructions to +idders in the customi.ed bidding documents for goods conform with the contents of the "nstructions to +idders prescribed b9 the P%DsM Did the form for the +id .ed bidding documents for goods conform with the contents of the +id .and award? c& The date.

ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Special Conditions of Contract in the customi.December 2009 Page .A&dit 6&b.uirements in the customi.%bCecti(e  Audit Criteria telephone numberfacsimile number.as well as its designated contact person? and i& Such other necessary information deemed relevant by the procuring entity& A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the form of General Conditions of Contract in the customi.ed bidding documents for goods conform with the contents of the Special Conditions of Contract prescribed b9 the P%DsM Did the form of the Schedule of Re.ed bidding documents for goods conform with the contents of the General Conditions of Contract form prescribed b9 the P%DsM Did the form for the Special Conditions of Contract in the customi.1 .e1mail and website addresses of the concerned procuring entity.ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Did the contents of the form for Technical Specifications in the customi.A&dit 6&b.ed bidding documents for goods conform with the contents of the Technical Specifications prescribed b9 the P%DsM Did the +id 9orm in the customi.uirements prescribed b9 the P%DsM Did the form for the Technical Specifications in the customi.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the form for the Schedule of Re.ed bidding documents for goods conform with the contents of the Schedule of Re.December 2009 Page .uirements in the customi.( .ed bidding documents for goods conform with the standard forms prescribed b9 the P%DsM Did the contents of the +id 9orm in the customi.ed bidding documents for goods conform with the contents of the +id 9orm prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Did the contents of the Contract Agreement 9orm in the customi.ed bidding documents for goods conform with the standard forms prescribed b9 the P%DsM Did the contents of the form for the Omnibus Sworn Statement in the customi.ed bidding documents for goods conform with the standard form prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .! .A&dit 6&b.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the Contract Agreement 9orm in the customi.ed bidding documents for goods conform with the contents of the Omnibus Sworn Statement prescribed b9 the P%DsM Did the +an Guarantee 9orm for Advance Payment in the customi.December 2009 Page .ed bidding documents for goods conform with the contents of the Contract Agreement 9orm prescribed b9 the P%DsM Did the form for the Omnibus Sworn Statement in the customi.

ed bidding documents for goods conform with the contents of the +an Guarantee 9orm for Advance Payment prescribed b9 the P%DsM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.# . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Anal9.A&dit 6&b.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the +an Guarantee 9orm for Advance Payment in the customi. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers and develop appropriate audit recommendations2 Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .e the instances Appropriate Audit -orking Papers -.December 2009 Page . establish the effects c%mp)ia'ce %' t#e= a. T% (eri$* t#e e$$ects of non4compliances to %$ i'sta'ces %$ '%'. etc.

* .O' t#e +asic E)eme't= CU6TOMIKED +IDDING DOCUMENT6 FOR INFRA6TRUCTURE PRO/ECT6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page .

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update ..December 2009 Page . .

+A6IC E9EMENT – CU6TOMIKED +IDDING DOCUMENT6 FOR INFRA6TRUCTURE PRO/ECT6 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the Procuring :ntit9)s customi. T% (eri$* i$ t#e pr%c&ri'1 e'tit* ad%pted a set %$ c&st%miIed biddi'1 d%c&me'ts $%r i'$rastr&ct&re pr%Cects "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8  (3&( The bidding documents shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+&  D&4 Once issued by the GPP+.ed bidding documents for infrastructure pro"ectsM Prepared b9B ---------------------------------------------------------------------------------------------------------- Page .Philippine +idding .to suit the particular needs of the procuring entitymodifications may be madeparticularly for ma0or and speciali=ed procurementsub0ect to the approval of the GPP+& NOTE= I$ t#e Pr%c&ri'1 E'tit* did '%t ad%pt a set %$ c&st%miIed biddi'1 d%c&me'ts $%r i'$rastr&ct&re pr%Cects0 t#e s&cceedi'1 A&dit 6&b.ed bidding documents for infrastructure pro"ects are complete !2 To verif9 if the forms and contents of the Procuring :ntit9)s customi.%bCecti(e  Audit Criteria -.0 .ed bidding documents for infrastructure pro"ects are as prescribed b9 the PP% %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents neededB Customi.s$.the use of the Generic Procurement 5anuals #GP5s$.ocuments #P+.ed bidding documents for infrastructure pro"ects from the %AC Secretariat 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the procuring entit9 adopt a set of customi.December 2009 A&dit Acti(ities (2 ReCuest for the customi.and other standard forms shall be mandatory upon all Procuring /ntities& >oweverwhenever necessary.ed %idding Documents for /nfrastructure Pro"ects A&dit 6&b.ObCecti(es a'd re)ated Acti(ities 'eed '%t be per$%rmed a'd t#e re)ated A&dit G&esti%'s $%r t#is e)eme't 'eed '%t be Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

F%rm %$ C%'tract a'd Ge'era) a'd 6pecia) C%'diti%'s %$ C%'tract "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (3&( The bidding documents shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+& The bidding documents shall !2 Compare the set of customi.%bCecti(e  Audit Criteria a's"ered.December 2009 Page .criteria i' acc%rda'ce "it# t#e Act0 a'd p%st.T% (eri$* i$ t#e set %$ c&st%miIed biddi'1 d%c&me'ts $%r i'$rastr&ct&re pr%Cects are c%mp)ete0 i.ocuments #P+.ed bidding documents with the Philippine +idding .s$ for Procurement of "nfrastructure Pro0ects. I'str&cti%'s t% +idders0 i'c)&di'1 6c%pe %$ +id0 d%c&me'ts c%mprisi'1 t#e bid0 criteria $%r e)i1ibi)it*0 bid e(a)&ati%' met#%d%)%1*. Appr%(ed +&d1et $%r t#e C%'tract0 b. F%rm %$ +id0 Price F%rm0 a'd )ist %$ 1%%ds 1.ocuments #P+.3 ..A&dit 6&b.rd editionOctober 466' published b9 the PP%M 2. F%rm0 am%&'t0 a'd (a)idit* peri%d %$ bid sec&rit* i. Tec#'ica) Dra"i'1s a'd 6peci$icati%'s $.0 i'c)&de t#e $%))%"i'1= a.ed bidding documents complete compared with the items in the Philippine +idding . De)i(er* 6c#ed&)e #. F%rm0 am%&'t0 a'd (a)idit* %$ per$%rma'ce sec&rit* a'd "arra't* C.rd editionOctober 466' published b9 the PP% Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . @&a)i$icati%'0 as "e)) as t#e date0 time a'd p)ace %$ t#e pre. A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er -ere the items in the customi. I'(itati%' t% +id c.bid c%'$ere'ce ("#ere app)icab)e!0 s&bmissi%' %$ bids a'd %pe'i'1 %$ bids e..e.s$ for Procurement of "nfrastructure Pro0ects. E)i1ibi)it* Re@&ireme'ts d.

and validity of performance security and warranty i& 9orm of Contract and General and Special Conditions of Contract&  Philippine +idding .rd edition.bid evaluation methodology:criteria in accordance with the Act.ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the P%DsM Did the contents of the "nvitation to +id in the customi.criteria for eligibility..s$ for Procurement of "nfrastructure Pro0ects.s$ for Procurement of "nfrastructure Pro0ects. T% (eri$* i$ t#e $%rm a'd c%'te'ts %$ t#e c&st%miIed biddi'1 d%c&me'ts $%r i'$rastr&ct&re pr%Cects c%'$%rm "it# t#%se i' t#e P#i)ippi'e +iddi'1 D%c&me'ts (P+Ds! $%r Pr%c&reme't %$ G%%ds0 4rd editi%'0 Oct%ber 200 appr%(ed b* t#e GPP+ per GPP+ Res%)&ti%' N%.December 2009 Page .uirements d "nstructions to +iddersincluding Scope of +iddocuments comprising the bid.and list of goods and services f& .5 .ocuments #P+.elivery Schedule g& 9orm.ed bidding documents for infrastructure pro"ects conform with the contents of the /nvitation to %id prescribed b9 Section !(2( of the /RR of RA +(5* and the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .amount. 07.amount..and validity period of bid security h& 9orm.rd editionOctober 466' published b9 the PP% Did the form of the "nvitation to +id in the customi.ualification.ed bidding documents for infrastructure pro"ects with the corresponding documents of the Philippine +idding .as well as the date.s$ for Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines #2 Compare the individual documents of the procuring entit9)s customi.200 dated 40 6eptember 200 L "it# 6ecti%' 2-.time and place of the pre1bid conference #where applicable$submission of bids and opening of bids e& 9orm of +id.ocuments #P+.ocuments #P+.Price 9orm.A&dit 6&b. -23  Philippine +idding .%$ t#e Re(ised IRR %$ RA N%..October 466' published b9 the PP% A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er 4.and post1.%bCecti(e  Audit Criteria include the following8 a& Approved +udget for the Contract b& "nvitation to +id c& /ligibility Re.

December 2009 Page .uirements.the website where the +idding .ocuments may be downloaded.the submission and receipt of bids.ed bidding documents for infrastructure pro"ects conform with the contents of the "nstructions to +idders prescribed b9 the P%DsM Did the form for the +id .%bCecti(e  Audit Criteria Procurement of "nfrastructure Pro0ects.ata Sheet in the customi.October 466' approved b9 the PP% per PP% Resolution @o2 1.ata Sheet in the customi.si=e.time and place of the deadline for the submission and receipt of the eligibility re.ed bidding documents for infrastructure pro"ects conform with the contents of the +id .4!11+ dated #1 September !11+ "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er  4(&(& The "nvitation to +id shall provide prospective bidders the following information.ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the +id .and.ata Sheet prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the pre1bid conference.and the opening of bids? d& A+C to be bid? e& The source of funding? f& The period of availability of the +idding .including a brief description of the type.ocumentsthe place where the +idding .ma0or itemsand other important or relevant features of the wor sH b& A general statement on the criteria to be used by the procuring entity for the eligibility chec .the price of the +idding .ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the PP%M Did the contents of the form for the "nstructions to +idders in the customi.the name and location of the contract to be bid.where applicable.ocuments? g& The contract duration or Did the form of the "nstructions to +idders in the customi.rd edition.the e@amination and evaluation of bids.ualification.among others8 a& 9or the procurement of "nfrastructure pro0ects..ocuments may be secure.+ .if any.A&dit 6&b.post1 .and award? c& The date.the pro0ect bac ground and other relevant information regarding the proposed contract wor s.

%bCecti(e  Audit Criteria delivery schedule? h& The name.A&dit 6&b.ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the General Conditions of Contract in the customi.as well as its designated contact person? and i& Such other necessary information deemed relevant by the procuring entity& A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the form for the General Conditions of Contract in the customi.ed bidding documents for infrastructure pro"ects conform with the contents of the form for the Special Conditions of Contract prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .addresstelephone numberfacsimile number.December 2009 Page 01 .ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Special Conditions of Contract in the customi.ed bidding documents for infrastructure pro"ects conform with the contents of the General Conditions of Contract prescribed b9 the P%DsM Did the form for the Special Conditions of Contract in the customi.e1mail and website addresses of the concerned procuring entity.

ed bidding documents for infrastructure pro"ects conform with the contents of the +ill of Iuantities prescribed b9 the P%DsM Did the +id 9orm in the customi.December 2009 Page 0( .ed bidding documents for infrastructure pro"ects conform with the standard forms prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the P%DsM Did the contents of the +id 9orm in the customi.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the form for the +ill of Iuantities in the customi.ed bidding documents for infrastructure pro"ects conform with the contents of the +id 9orm prescribed b9 the P%DsM Did the 9orm of Contract Agreement in the customi.A&dit 6&b.ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the +ill of Iuantities in the customi.

%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the 9orm of Contract Agreement in the customi.December 2009 Page 0! .ed bidding documents for infrastructure pro"ects conform with the contents of the >orm of Contract Agreement prescribed b9 the P%DsM Did the form of the Omnibus Sworn Statement in the customi.s$ for Procurement of "nfrastructure Pro0ects- Did the customi.ocuments #P+.ed bidding documents for infrastructure pro"ects of the procuring entit9 contain a Section on Specifications with @otes similar to those in the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for infrastructure pro"ects conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Omnibus Sworn Statement in the customi.ed bidding documents for infrastructure pro"ects conform with the contents of the Omnibus Sworn Statement prescribed b9 the P%DsM • Notes on Specifications in Section 2"& Specifications of the Philippine +idding .A&dit 6&b.

T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.October 466' published b9 the PP% A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the customi.rawings of the Philippine +idding .October 466' published b9 the PP%8 which are meant to guide the procuring entit9 in developing specifications for individual procurements2 • The statementsB F/nsert here a list of Drawings2 The actual Drawings8 including site plans8 should be attached to this section or anne.ed in a separate folder2G Are in Section 2""& .e the instances Appropriate Audit -orking Papers -. T% (eri$* t#e e$$ects of non4compliances to %$ i'sta'ces %$ '%'. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.A&dit 6&b.rd edition.%bCecti(e  Audit Criteria . a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2.s$ for Procurement of "nfrastructure Pro0ects.rd edition. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.rawings with @otes similar to those in the P%DsM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.ed bidding documents for infrastructure pro"ects of the procuring entit9 contain a Section on .ocuments #P+. establish the effects c%mp)ia'ce %' t#e= a. etc.December 2009 Page 0# .e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Appropriate Audit -orking Papers and develop appropriate audit recommendations2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

A&dit 6&b.December 2009 Page 0* . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.%bCecti(e  Audit Criteria 4.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts A&dit Acti(ities Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

December 2009 Page 0. .O' t#e +asic E)eme't= CU6TOMIKED +IDDING DOCUMENT6 FOR CON6U9TING 6ER8ICE6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

particularly for ma0or and speciali=ed procurement.466'8  (3&( The bidding documents shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+&  D&4 Once issued by the GPP+.to suit the particular needs of the procuring entitymodifications may be made.ocuments #P+.+A6IC E9EMENT – CU6TOMIKED +IDDING DOCUMENT6 FOR CON6U9TING 6ER8ICE6 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the Procuring :ntit9)s customi.ed %idding Documents for Consulting Services A&dit 6&b.December 2009 Page 00 .ed bidding documents for consulting services are as prescribed b9 the PP% %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R Documents neededB Customi.whenever necessary.%bCecti(e  Audit Criteria -. T% (eri$* i$ t#e pr%c&ri'1 e'tit* ad%pted a set %$ c&st%miIed biddi'1 d%c&me'ts $%r c%'s&)ti'1 ser(ices "mplementing Rules and Regulations #"RR$ of RA '()*.ed bidding documents for consulting servicesM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for consulting services from the %AC Secretariat2 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the procuring entit9 adopt a set of customi.and other standard forms shall be mandatory upon all Procuring /ntities& >owever.sub0ect to the approval of the GPP+& :ST:D -ORK/@ A&dit Acti(ities (2 ReCuest for the customi.the use of the Generic Procurement 5anuals #GP5s$Philippine +idding .as amended on September 4.s$.ed bidding documents for consulting services are complete !2 To verif9 if the forms and contents of the Procuring :ntit9)s customi.

F%rm0 am%&'t0 a'd (a)idit* %$ per$%rma'ce sec&rit* a'd "arra't* C. F%rm %$ +id0 Price F%rm0 a'd )ist %$ 1%%ds 1. Re@&est $%r E?pressi%' %$ I'terest0 c. bid c%'$ere'ce ("#ere app)icab)e!0 s&bmissi%' %$ bids a'd %pe'i'1 %$ bids e.rd edition. E)i1ibi)it* Re@&ireme'ts d. F%rm0 am%&'t0 a'd (a)idit* peri%d %$ bid sec&rit* i.December 2009 Page 03 . De)i(er* 6c#ed&)e #.ObCecti(es a'd re)ated Acti(ities 'eed '%t be per$%rmed a'd t#e re)ated A&dit G&esti%'s $%r t#is e)eme't 'eed '%t be a's"ered.A&dit 6&b.criteria i' acc%rda'ce "it# t#e Act0 a'd p%st.ocuments #P+.e. F%rm %$ C%'tract Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .s$ for Procurement of Consulting Services.rd edition.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er NOTE= I$ t#e Pr%c&ri'1 E'tit* did '%t ad%pt a set %$ c&st%miIed biddi'1 d%c&me'ts $%r i'$rastr&ct&re pr%Cects0 t#e s&cceedi'1 A&dit 6&b.October 466' published b9 the PP% -ere the items in the customi.0 i'c)&de t#e $%))%"i'1= a. !2 Compare the set of customi.ocuments #P+. Appr%(ed +&d1et $%r t#e C%'tract0 b. I'str&cti%'s t% +idders0 i'c)&di'1 6c%pe %$ +id0 d%c&me'ts c%mprisi'1 t#e bid0 criteria $%r e)i1ibi)it*0 bid e(a)&ati%' met#%d%)%1*.T% (eri$* i$ t#e set %$ c&st%miIed biddi'1 d%c&me'ts $%r c%'s&)ti'1 ser(ices are c%mp)ete0 i.ed bidding documents with the Philippine +idding .ed bidding documents for consulting services complete when compared with the items in the Philippine +idding . Tec#'ica) Dra"i'1s a'd 6peci$icati%'s $.October 466' published b9 the PP% 2. @&a)i$icati%'0 as "e)) as t#e date0 time a'd p)ace %$ t#e pre.s$ for Procurement of Consulting Services.

rd edition.Price 9ormand list of goods and services f& .ualification.December 2009 Page 05 .bid evaluation methodology:criteria in accordance with the Actand post1.%bCecti(e  Audit Criteria a'd Ge'era) a'd 6pecia) C%'diti%'s %$ C%'tract "mplementing Rules and Regulations #"RR$ of RA '()*.as well as the date.amount.and validity period of bid security h& 9orm.ocuments #P+.criteria for eligibility..s$ for Procurement of Consulting Services.time and place of the pre1bid conference #where applicable$.and validity of performance security and warranty i& 9orm of Contract and General and Special Conditions of Contract&  Philippine +idding .as amended on September .submission of bids and opening of bids e& 9orm of +id.October 466' published b9 the PP% published by the GPP+ A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .elivery Schedule g& 9orm.466'8 • (3&( The bidding documents shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+& The bidding documents shall include the following8 a& Approved +udget for the Contractb& Re..A&dit 6&b.amount.uest for /@pression of "nterestc& /ligibility Re.uirements d "nstructions to +iddersincluding Scope of +iddocuments comprising the bid.

ocuments in the customi.rd edition.rd edition.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for /ligibility .ocuments #P+.. Octo er !""# p&b)is#ed b* t#e GPP+ • Philippine +idding .ocuments prescribed b9 the P%DsM Did the form for the /ligibility .ocuments in the customi.December 2009 Page 0+ .s$ for Procurement of Consulting Services. 3rd edition.s$ for Procurement of Consulting Services.ed bidding documents for consulting services conform with the contents of the form for /ligibility .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Re.ocuments #P+.ed bidding documents for consulting services with the corresponding documents of the Philippine +idding .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM 4.ed bidding documents for consulting services conform with the contents of the form for the Re.uest for /@pression of "nterest prescribed b9 the P%DsM Did the form of the /ligibility . T% (eri$* i$ t#e $%rm a'd c%'te'ts %$ t#e c&st%miIed biddi'1 d%c&me'ts $%r c%'s&)ti'1 ser(ices c%'$%rm "it# t#%se i' t#e Philippine Bidding Documents (PBDs) for Procurement of Consulting Services.uest for /@pression of "nterest in the customi.uest for /@pression of "nterest in the customi.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the form for the Re.October 466' published b9 the PP% #2 Compare the individual documents of the procuring entit9)s customi.ata Sheet in the customi.A&dit 6&b.October 466' published b9 the PP% Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

A&dit 6&b.ed bidding documents for consulting services conform with the contents of the %otice of /ligibility and Short Aisting prescribed b9 the P%DsM Did the form for the "nstructions to +idders in the customi.ed bidding documents for consulting services conform with the contents of the "nstructions to +idders prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for %otice of /ligibility and Short Aisting in the customi.ed bidding documents for consulting services conform with the contents of the form for the /ligibility .December 2009 Page 31 .ata Sheet in the customi.ata Sheet prescribed b9 the P%DsM Did the form for the %otice of /ligibility and Short Aisting in the customi.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the form for the /ligibility .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the "nstructions to +idders in the customi.

ata Sheet prescribed b9 the P%DsM Did the form for the General Conditions of Contract in the customi.ed bidding documents for consulting services conform with the contents of the +id .ata Sheet in the customi.December 2009 Page 3( .ed bidding documents for consulting services conform with the contents of the form for the General Conditions of Contract prescribed b9 the P%DsM Did the form for the Special Conditions of Contract in the customi.A&dit 6&b.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Special Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the form of the +id .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the +id .ata Sheet in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the General Conditions of Contract in the customi.

ocuments Submission 9orm prescribed b9 the P%DsM Did the Technical Proposal Submission 9orm in the customi.ocuments Submission 9orm in the customi.ed bidding documents for consulting services conform with the contents of the /ligibility .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the Technical Proposal Submission 9orm in the customi.December 2009 Page 3! .ocuments Submission 9orm in the customi.A&dit 6&b.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Conditions of Contract in the customi.ed bidding documents for consulting services conform with the contents of the Technical Proposal Submission 9orm prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the /ligibility .ed bidding documents for consulting services conform with the contents of the form for the Special Conditions of Contract prescribed b9 the P%DsM Did the form for the /ligibility .

ed bidding documents for consulting services conform with the contents of the form for the ConsultantEs Reference prescribed b9 the P%DsM Did the form for the Comments and Suggestions of Consultant on the Terms of Reference and on .December 2009 Page 3# .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the ConsultantEs Reference in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the form for the ConsultantEs Reference in the customi.ata.Servicesand 9acilities to be Provided by the Procuring in the customi.A&dit 6&b.

A&dit 6&b.escription of the 5ethodology and !or Plan for Performing the Pro0ect as reCuired b9 the P%DsM Did the form for Team Composition and Tas Pro0ects in the customi.ed bidding documents for consulting services have a form for the .ata.ed bidding documents for consulting services conform with the contents of the Comments and Suggestions of Consultant on the Terms of Reference and on .ed bidding documents for consulting services conform with the contents of the form for theTeam Composition and Tas Pro0ects prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of form for the Comments and Suggestions of Consultant on the Terms of Reference and on .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Team Composition and Tas Pro0ects in the customi.December 2009 Page 3* .Servicesand 9acilities to be Provided by the Procuring form prescribed b9 the P%DsM Did the customi.Servicesand 9acilities to be Provided by the Procuring in the customi.ata.

.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the 9ormat of Curriculum 2itae #C2$ for Proposed Professional Staff in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page 3.A&dit 6&b.ed bidding documents for consulting services conform with the contents of the 9ormat of Curriculum 2itae #C2$ for Proposed Professional Staff prescribed b9 the P%DsM Did the form for the Time Schedule for Professional Personnel in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the 9ormat of Curriculum 2itae #C2$ for Proposed Professional Staff in the customi.

ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Activity #!or $ Schedule in the customi.A&dit 6&b.ed bidding documents for consulting services conform with the contents of the form for the Activity #!or $ Schedule prescribed b9 the P%DsM Did the form for the 9inancial Proposal Submission in the customi.ed bidding documents for consulting services conform with the contents of the form for the Time Schedule for Professional Personnel prescribed b9 the P%DsM Did the form for the Activity #!or $ Schedule in the customi.December 2009 Page 30 .%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the form for theTime Schedule for Professional Personnel in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ed bidding documents for consulting services conform with the contents of the form for the +rea down of Price per Activity prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for consulting services conform with the contents of the form for the 9inancial Proposal Submission prescribed b9 the P%DsM Did the form of the Summary of Costs in the customi.A&dit 6&b.ed bidding documents for consulting services conform with the contents of the form for the Summary of Costs prescribed b9 the P%DsM Did the form for the +rea down of Price per Activity in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the +rea down of Price per Activity form in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Summary of Costs in the customi.December 2009 Page 33 .%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the form for the 9inancial Proposal Submission in the customi.

ed bidding documents for consulting services conform with the standard form Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for consulting services conform with the contents of the form for Reimbursables per Activity prescribed b9 the P%DsM Did the form for the 5iscellaneous /@penses in the customi.ed bidding documents for consulting services conform with the contents of the form for the +rea down of Remuneration per Activity prescribed b9 the P%DsM Did the form for the Reimbursables per Activity in the customi.A&dit 6&b.December 2009 Page 35 .ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for Reimbursables per Activity in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the +rea down of Remuneration per Activity in the customi.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the form for the +rea down of Remuneration per Activity in the customi.

ed bidding documents for consulting services conform with the contents of the form for the 5iscellaneous /@penses form prescribed b9 the P%DsM Did the 9orm of Contract Agreement in the customi.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er prescribed b9 the P%DsM Did the contents of the form for the 5iscellaneous /@penses in the customi.ed bidding documents for consulting services conform with the contents of the 9orm of Contract Agreement prescribed b9 the P%DsM Did the Omnibus Sworn Statement form in the customi.December 2009 Page 3+ .A&dit 6&b.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the 9orm of Contract Agreement in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ed bidding documents for consulting services conform with the contents of the form for the +rea down of Agreed 9i@ed Rate prescribed b9 the P%DsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed bidding documents for consulting services conform with the contents of the Omnibus Sworn Statement form prescribed b9 the P%DsM Did the Appendices form in the customi.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Did the contents of the Omnibus Sworn Statement form in the customi.December 2009 Page 51 .A&dit 6&b.ed bidding documents for consulting services conform with the contents of the form for the Appendices prescribed b9 the P%DsM Did the form for the +rea down of Agreed 9i@ed Rate in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the Appendices in the customi.ed bidding documents for consulting services conform with the standard form prescribed b9 the P%DsM Did the contents of the form for the +rea down of Agreed 9i@ed Rate in the customi.

ocuments #P+.ata& Aocal Services.Personneland 9acilities to be provided by the Procuring /ntity per Section 2"& Terms of Reference of the Philippine +idding ..ed bidding documents for consulting services of the procuring entit9 contain a Section on Terms of Reference with contents similar to those in the P%DsM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .rd edition.October 466' published b9 the PP%8 which are meant to guide the procuring entit9 in developing Terms of Reference for individual procurements2 Did the customi.A&dit 6&b.December 2009 Page 5( .s$ for Procurement of Consulting Services.%bCecti(e  Audit Criteria A&dit Acti(ities 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er • The contents of the Terms of Reference are as followsB a& +ac groundb& Ob0ectivesc& Scope of the Servicesd& Training #when appropriate$e& Reports and Time Schedulef& .

(a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .A&dit 6&b. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. etc.c%mp)ia'ce %' t#e= a.%bCecti(e  Audit Criteria -. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'1 66D dated September (7466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts A&dit Acti(ities Anal9.e the instances of non4compliances to establish the effects and develop appropriate audit recommendations2 6&11ested A&dit >%rAi'1 Paper N Partic&)ars A&dit G&esti%' He % %$ t#e s A's"er Appropriate Audit -orking Papers Anal9. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.December 2009 Page 5! .

PU+9IC +IDDING FOR THE PROCUREMENT OF GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .O' t#e Pr%c&reme't Pr%ced&res= COMPETITI8E .December 2009 Page 5# .

as amended on Septem er !. 3rd 'dition (Octo er !""#) iss&ed b* t#e GPP+ a'd Section () of the *mplementing +ules and +egulations of +A #(. T% (eri$* i$ t#e +iddi'1 D%c&me'ts $%r t#e speci$ic pr%c&reme't i'c)&de t#e i'$%rmati%' a'd are acc%rdi'1 t% t#e $%rms i'c)&ded i' t#e Customi$ed Bidding Documents approved % the &PPB %r t#e Philippine Bidding Documents for the Procurement of &oods.Pr%c&reme't Pr%ced&res= COMPETITI8E .ed %idding Documents and the results of the earlier validation of this element showed that these are compliant with the Philippine +idding . I'(itati%' t% +idB c.. a.December 2009 Page 5* . Appr%(ed +&d1et $%r t#e C%'tractB b.ed %idding Documents for !2 %idding Documents for the specific procurement2 Audit Sub4ob"ective • Audit Criteria -. PU+9IC +IDDING FOR THE PROCUREMENT OF GOOD6 I. PREPARATORH ACTI8ITH= +IDDING DOCUMENT6 %idding documents are documents issued b9 the Procuring :ntit9 to provide prospective bidders all the necessar9 information that the9 need to prepare their bids2 A2 AAD/T O%E:CT/6:B To verif9 if the %idding Documents $%))%"ed t#e sta'dard $%rms a'd ma'&a)s prescribed b9 the overnment Procurement Polic9 %oard & PP%' %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 The procuring entit9)s Customi. !""#.ocuments for the Procurement of Goods and Section (3&( of the "mplementing Rules and Regulations of RA '()*8 secure from the %AC Secretariat dul9 certified copies of the %idding Documents for the specific procurement and compare these with the c&st%miIed +iddi'1 D%c&me'ts of the procuring entit92 Suggested Audit -orking Paper Audit =uestion Le @ Particulars of the s o Answer Are the %idding Documents7 /nformation completeB a2 Approved %udget for the ContractM /nvitation to %idM c2 d2 :ligibilit9 ReCuirementsM /nstruction to %idders8 including 4 scope of bidM 4 documents comprising the bidM 4 criteria for eligibilit9M b2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . E)i1ibi)it* oodsH Audit Activities (2 /f the procuring entit9 adopted customi.

Dra"i'1s a'd Tec#'ica) 6peci$icati%'sB F%rm %$ +id0 Price F%rm0 a'd 9ist %$ G%%dsB De)i(er* Time %r C%mp)eti%' 6c#ed&)eB F%rm0 Am%&'t0 a'd 8a)idit* Peri%d %$ +id 6ec&rit*B F%rm0 Am%&'t0 a'd 8a)idit* %$ Per$%rma'ce 6ec&rit* a'd >arra't*B a'd F%rm %$ C%'tract a'd Ge'era) a'd 6pecia) C%'diti%'s %$ C%'tract. #. f2 A.December 2009 Page 5. $.ocuments shall be prepared by the procuring entity following the h2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . . i. "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (3&(& The +idding . @&a)i$icati%'0 as "e)) as t#e date0 time a'd p)ace %$ t#e pre. bid c%'$ere'ce ("#ere app)icab)e!0 s&bmissi%' %$ bids a'd %pe'i'1 %$ bidsB 6c%pe %$ "%rA0 "#ere app)icab)eB P)a's.criteria i' acc%rda'ce "it# t#e Act0 a'd p%st. C. 1.Audit Sub4ob"ective • Audit Criteria Re@&ireme'tsB I'str&cti%' t% +idders0 i'c)&di'1 sc%pe %$ bid0 d%c&me'ts c%mprisi'1 t#e bid0 criteria $%r e)i1ibi)it*0 bid e(a)&ati%' met#%d%)%1*.ed %idding Documents are not compliant8 compare the procurement4 specific %idding Documents with the Philippine Bidding Documents for the Procurement of &oods issued b9 the PP%2 Suggested Audit -orking Paper Audit =uestion Le @ Particulars of the s o Answer 4 bid evaluation methodolog97 criteria in accordance with the ActM 4 post4 Cualification methodolog9M 4 date of the pre4 bid conferenceM 4 time of the pre4 bid conferenceM 4 Place of the pre4bid conferenceM 4 Deadline for submission of bidsM 4 Place of submission of bidsM 4 Date of opening of bidsM 4 Time of opening of bidsM 4 Place of opening of bidsM e2 Scope of work8 where applicableM Plans7Drawin gs and Technical SpecificationsM f2(2 -as there '% reference to brand namesM g2 >orm of %id8 Price >orm8 and $ist of oodsM Deliver9 Time or Completion ScheduleM d. Audit Activities /f the customi. e.

as well as the date.Amount.ualification.time and place of the pre1bid conference #where applicable$.December 2009 Page 50 .elivery Time or Completion Schedule? i& 9orm. T% (eri$* t#e e$$ects non4compliances to Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .criteria for eligibility.where applicable? f& Plans:.submission of bids and opening of bids? e& Scope of wor .rawings and Technical Specifications? g& 9orm of +id.and 2alidity Period of +id Security? 0& 9orm.uirements& Reference to brand names shall not be allowed& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @ Particulars of the s o Answer i2 >orm8 Amount8 and 6alidit9 Period of %id Securit9M >orm8 Amount8 and 6alidit9 of Performance Securit9 and -arrant9M >orm of Contract and eneral and Special Conditions of ContractM "2 k2 -ere the %idding Documents in the reCuired formB a2 itation to %idM b2 tructions to %iddersM c2 Data SheetM d2 e neral Condition of the ContractM Sp ecial Condition of ContractM Sc hedule of ReCuirementsM Te chnical SpecificationsM %id ding >ormsM %id /ns /nv e2 f2 g2 h2 E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.uirements? d& "nstruction to +iddersincluding scope of biddocuments comprising the bid.bid evaluation methodology:criteria in accordance with the Actand post1.Amount.e the instances of Appropriate Audit -orking Papers -.Audit Sub4ob"ective • Audit Criteria standard forms and manuals prescribed by the GPP+& a& Approved +udget for the Contract? b& "nvitation to +id? c& /ligibility Re.Price 9ormand Aist of Goods? h& .and 2alidity of Performance Security and !arranty? and & 9orm of Contract and General and Special Conditions of Contract& • Section ()& Reference to +rand %ames Specifications for the procurement of goods shall be based on relevant characteristics and:or performance re.

T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4. etc. c%mp)ia'ce %' t#e= a.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities establish the effects and develop appropriate audit recommendations2 Suggested Audit -orking Paper Audit =uestion Le @ Particulars of the s o Answer Anal9. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page 53 .Audit Sub4ob"ective • Audit Criteria %$ i'sta'ces %$ '%'.

PREPARATORH ACTI8ITH= PRE.December 2009 Page 55 .PROCUREMENT CONFERENCE (F%r pr%c&reme't %$ 1%%ds c%sti'1 m%re t#a' P2 mi))i%'! The pre4procurement conference is the forum where all officials involved in the procurement meet and discuss all aspects of a specific procurement activit98 which includes the technical specifications8 the Approved %udget for the Contract &A%C'8 the applicabilit9 and appropriateness of the recommended method of procurement and the related milestones8 the bidding documents8 and availabilit9 of the pertinent budget release for the pro"ect2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the Pre4Procurement Conference was conducted "it#i' t#e re@&ired time !2 To verif9 if the participa'ts to the Conference are as reCuired #2 To verif9 if during the Conference the participants8 led b9 the %ids and Awards Committee &%AC'8 performed the reCuired tasks and attained the ob"ectives of the Conference %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB a2 cop9 of the 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC SecretariatH b2 /nvitation to %idH Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .II.

December 2009 Page 5+ .the Secretariat.466'8 • 46&(& Prior to the Advertisement or the issuance of the "nvitation to +id for each procurement underta en through public bidding. T% (eri$* i$ t#e +AC c%'d&cted t#e Pre.as amended on September 4.ational7>unctiona l Charts8 etc' which it used as bases for identif9ing and notif9ing the participants to the Pre4Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 #2 >rom the 5inutes of Pre1Procurement Conference look for the names of the members of the %AC8 the members of the Secretariat8 the officials and7or consultants who prepared the %idding Documents and the draft /nvitation to %id2 Did the attendees to the Conference include theB a2 %ACM b2 SecretariatM c2 unit or officials who prepared the %idding Documents and the draft /nvitation to %idM d2 consultants hired b9 the procuring entit98 who prepared the %idding Documents and the draft /nvitation to %idM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • 46&(<& The pre1procurement conference shall be attended by the +AC.through its Secretariat shall call for a Pre1 Procurement Conference& Suggested Audit -orking Paper Audit Activities (2 Secure from the %AC Secretariat a dul9 certified cop9 of the 5inutes of Pre1 Procurement Conference and compare the date the conference was held with the date indicated in the /nvitation to %id &included in the %idding Documents' Audit =uestion Did the %AC conduct the Pre4 Procurement Conference prior to the advertisement or issuance of the /nvitation to %idM Le s @o Particulars of the Answer 2.including consultants hired by the procuring entity. Pr%c&reme't C%'$ere'ce i'c)&ded t#e +AC0 t#e 6ecretariat0 t#e &'it %r %$$icia)s0 i'c)&di'1 c%'s&)ta'ts #ired b* t#e pr%c&ri'1 e'tit*0 "#% prepared t#e +iddi'1 D%c&me'ts a'd t#e dra$t I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* i$ t#e participa'ts t% t#e Pre.the unit or officials.who prepared the +idding . Pr%c&reme't C%'$ere'ce pri%r t% t#e ad(ertiseme't %r t#e iss&a'ce %$ t#e I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*.c2 Dul9 certified copies of the documents &Office Orders8 contracts8 Organi.as amended on September 4.for each procurement& !2 Secure from the %AC Secretariat dul9 certified copies of the documents &Office Orders8 contracts8 Organi.the +AC.ocuments and the draft "nvitation to +id.ational7>unctional Charts8 etc' which the %AC Secretariat used as bases for identif9ing and notif9ing the participants to the Pre4Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 Audit Sub4ob"ective • Audit Criteria -.

Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#e descripti%' %$ t#e sc%pe %$ t#e c%'tract0 t#e A+C0 a'd c%'tract d&rati%'B b. T% (eri$* i$ d&ri'1 t#e Pre.e if the9 led to the confirmation of the procurement is in accordance with the PPMP and APP8 and Did the participants led b9 the %AC discuss and confirm theB a2 Description of the scope of the contractM b2 A%CM c2 Contract durationM Did the participants led b9 the %AC discuss and confirm that theB a2 procuremen t is in accordance with the PPMP and APPM b2 appropriatio ns and programme d budget for the contract are availableM Audit =uestion -as there a Cuorum of the %ACM Le s @o Particulars of the Answer 3.uired& Suggested Audit -orking Paper Audit Activities *2 >rom the Office Order creating the %AC8 determine the number of %AC members and identif9 the Chairman or 6ice4Chairman2 .Audit Sub4ob"ective • Audit Criteria 4.Pr%c&reme't C%'$ere'ce t#e participa'ts0 )ed b* t#e +AC0 per$%rmed t#e $%))%"i'1 tasAs a'd attai'ed t#e re)ated %bCecti(es= a.provided that the presence of the Chairman or 2ice1Chairman shall be re.e if the9 led to the confirmation of the description of the scope of the contract8 the A%C8 and the contract duration2 32 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the review of the PPMP and APP8 availabilit9 of appropriations and programmed budget for the contract8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9. T% (eri$* i$ t#e +AC %bser(ed @&%r&m "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page +1 .check for the presence of the Chairman or 6ice4 Chairman and if ma"orit9 of the %AC members or representatives7alternate s attended the conference2 02 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the scope of the contract8 the A%C8 and contract duration8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#e c%mp)ete'ess %$ t#e +iddi'1 D%c&me'ts a'd t#eir ad#ere'ce t% re)e(a't 1e'era) pr%c&reme't Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4. Iuorum A ma0ority of the total +AC composition as designated by the >ead of the Procuring /ntity shall constitute a .uorum for the transaction of business. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#at t#e pr%c&reme't is i' acc%rda'ce "it# t#e pr%Cect pr%c&reme't ma'a1eme't p)a' (PPMP! a'd a''&a) pr%c&reme't p)a' (APP!B c.466'8 • (4&. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#e a(ai)abi)it* %$ appr%priati%'s a'd pr%1rammed b&d1et $%r c%'tractB d.2 >rom the 5inutes of Pre1Procurement Conference.

evaluation.e if the9 led to the confirmation of the completeness of the %idding Documents and their adherence to the Philippine %idding Documents &P%Ds'7 customi. Re(ie"ed a'd ad%pted t#e pr%c&reme't sc#ed&)e0 i'c)&di'1 dead)i'es a'd time$rames0 $%r t#e di$$ere't acti(itiesB a'd 1.as amended on September 4.the following8 o availability of appropriations and programmed budget for contract? o completeness of the +idding .uring the conferencethe participants.e if the9 led to the confirmation of the criteria for eligibilit9 screening8 bid evaluation8 and post4 Cualification2 (12 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the procurement schedule8 including deadlines and timeframes for the different activities8 the Audit =uestion Did the participants led b9 the %AC discuss and confirm the followingB a2 completenes s of the %idding DocumentsM b2adherence to the P%Ds7 customi.466'8 • 46&(& < .etermine the readiness of the procurement at handincluding.ocuments and their adherence to relevant general procurement guidelines? d$ Review. Re(ie"ed0 m%di$ied a'd a1reed %' t#e criteria $%r e)i1ibi)it* scree'i'10 e(a)&ati%'0 a'd p%st.ualification? e$ Review and adopt the procurement schedule- Suggested Audit -orking Paper Audit Activities availabilit9 of appropriations and programmed budget for the contract2 52 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the %idding Documents8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9. "mplementing Rules and Regulations #"RR$ of RA '()*.ed %idding Documents2 +2 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the criteria for eligibilit9 screening8 bid evaluation8 and post4 Cualification8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.and contract duration? b$ /nsure that the procurement is in accordance with the pro0ect and annual procurement plans? c$ .led by the +ACshall8 a$ Confirm the description and scope of the contract.Audit Sub4ob"ective • Audit Criteria 1&ide)i'esB e.modify and agree on the criteria for eligibility screening.ed %idding DocumentsM Did the participants led b9 the %AC discuss and confirm the criteria forB a2 :ligibilit9 screeningM b2 %id evaluationM c2 Post4 Cualification M Did the participants led b9 the %AC discuss and confirm theB a2 adoption of the procuremen t schedule including deadlines and timeframes for the different activitiesM b2 agreement on the no4 contact Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . Reiterated a'd emp#asiIed t#e imp%rta'ce %$ c%'$ide'tia)it* a'd t#e app)icab)e sa'cti%'s a'd pe'a)ties0 as "e)) as a1reed %' meas&res t% e's&re c%mp)ia'ce "it# t#e $%re1%i'1.and post1. @&a)i$icati%'B $.the A+C.among other aspects.December 2009 Page +( .

& 9or specifically appropriated pro0ects.can Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the heads of the respective "Us.as procuring entities.for the different activities? and Reiterate and emphasi=e the importance of confidentiality and the applicable sanctions and penalties.the A+C shall be based on the budget levels under the %ational /@penditure Program #%/P$ submitted to Congress& *&. • < *&4& To facilitate the immediate implementation of pro0ects even pending approval of the GAA.as well as agree on measures to ensure compliance with the foregoing& 3&4& %o procurement shall be underta en unless it is in accordance with the approved APP of the procuring entity& The APP shall bear the approval of the >ead of the Procuring /ntity or second1 ran ing official designated by the >ead of the Procuring /ntity to act on his behalfand must be consistent with its duly approved yearly budget& Suggested Audit -orking Paper Audit Activities no4contact rule8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.Audit Sub4ob"ective • Audit Criteria including deadlines and timeframes.e if the9 led to the confirmation of the adoption of the procurement schedule including deadlines and timeframes for the different activities and agreement on the no4 contact rule2 Audit =uestion ruleM Le s @o Particulars of the Answer f$ • &PPB Circular "(/!""# dated !" 0anuar% !""#.December 2009 Page +! .the head of the agency shall identify and thereafter notify the implementing units #"Us$ of the amount allocated for the pro0ects they are to implement& On the basis of said notification.agencies can proceed with the procurement activities prior to issuance of the notice of award using as basis the %/P figures& *&*& 9or lump1sum appropriations and Centrally 5anaged "tems #C5"s$ under the agencyEs budget.

+5$ which authori=es an agency to incur obligations for a specified amount as contained in a legislated appropriation& The allotment issued may either be trough the Agency +udget 5atri@ #A+5$ which covers the comprehensive release of specifically appropriated Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Chapter ).+5 Circular Aetter 466*1 6(4 prior to commencement of any procurement activity& Thus.Subtitle +Title ".+oo 2 of the Administrative Code of (')3no contract involving the e@penditure of public funds shall be entered into unless the proper accounting official of the procuring entity shall have certified as to the availability of funds and the allotment to which the e@penditure or obligation may be properly charged& • DefinitionB .December 2009 Page +# .&(& Allotment 1 document issued by the .Audit Sub4ob"ective • Audit Criteria proceed with the procurement activities prior to issuance of the notice of award& *&7& 9or 5ulti1Jear Pro0ects #5JPs$.the 5JOA shall be a pre1re.for which the initial funding F sourced from either the e@isting:current yearEs budget or the %/P F is not sufficient to cover the total cost of the pro0ect.+5 for the said 5JP& *&D& As prescribed under Section *3.uisite for procurement of a multi1year contract& All procurement activities should be within the total pro0ect cost and categories reflected in the 5JOA issued by .uired that a 5ulti1Jear Obligational Authority #5JOA$ must already have been issued in accord with .it is re.epartment of +udget and 5anagement #.

&4& Annual Procurement Plan #APP$ F the re.&4&*& Procurement method to be adopted? .&4&7& Time schedule for each procurement activity? .&.&4&.&4&D& Source of fund? and .&.the amount corresponding to either the full cost of a single year or multi1year program:pro0ect: activity& 9or multi1year pro0ects.services.&(& 9or specifically appropriated items as reflected in the annual budget of the national government agency.the A+C shall be the amount reflected in the 5ulti1Jear Obligational Authority& GOCCs and AGUs #referred to in Section 4&4$ .& Approved +udget for the Contract #A+C$ F refers to the following8 %Gs including SUCs #referred to in Section 4&($ .civil wor s to be procured$ that it plans to underta e within the calendar year& This document contains the following information8 .& "n the case of GOCCsincluding government financial institutions as well as AGUs.December 2009 Page +* .&.the A+C represents Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria items in the agencyEs budget or through the Special Allotment Release Order #SARO$& .&4&3& Approved +udget for the Contract& .goods.for which a 5ulti1 Jear Obligational Authority has been issued.& General description of the procurement? .uisite document that the agency must prepare to reflect the entire procurement activity #i&e&.&4&(& %ame of the procurement program:pro0ect? .&4&4& Pro0ect management office or end1user unit? .&.

&)& 5ulti1Jear Obligational Authority #5JOA$ F a document issued by the .December 2009 Page +.obligates agencies to include in their budget proposal for the ensuring years the amount programmed for the said year#s$& .Article 2"" of the Constitution& The %/P shall be the basis of the general appropriations billwhich upon its enactmentbecomes the General Appropriations Act #GAA$& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .which contains an annual brea down of the full pro0ect cost.Audit Sub4ob"ective • Audit Criteria the amount of fund transfers which they receive from a national government agency to implement a program:pro0ect:activity& < .&'& %ational /@penditure Program #%/P$ F the proposed national budget submitted by the President to Congress in accord with Section 44. .+5 either for locally funded pro0ects or foreign assisted pro0ects implemented by agencies in order to authori=e the latter to enter into multi1 year contracts for the full pro0ect cost& A 5JOA.

(a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. AD8ERTI6ING AND PO6TING OF THE IN8ITATION TO +ID (F%r pr%c&reme't %$ 1%%ds c%sti'1 m%re t#a' P2 mi))i%'! Advertising and posting are conducted to ensure transparenc9 of the procurement process8 widest possible dissemination to increase the number of prospective bidders8 and intensif9 competition for the procurement activit9 or pro"ect A2 AAD/T O%E:CT/6:B To verif9 if the /nvitation to %id was advertised and posted in the media as reCuired and within the specified time Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable III. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Suggested Audit -orking Paper Audit Activities Anal9. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. c%mp)ia'ce %' t#e= a.December 2009 Page +0 .e the instances of non4compliances to establish the effects and develop appropriate audit recommendations2 Particulars of the Answer Appropriate Audit -orking Papers Audit =uestion Le s @o Anal9. etc. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2.Audit Sub4ob"ective • Audit Criteria -. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.

T% (eri$* i$ t#e +AC p%sted t#e *nvitation to Bid c%'ti'&%&s)* i' t#e P#i)GEP6 "ebsite0 t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e0 a'd t#e "ebsite prescribed b* t#e #2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 *2 On the first da9 of posting access the Did the %AC advertise the "nvitation to +id continuousl9 in theB (2 Phil :PS website for 3 calendar da9s Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC ad(ertised t#e *nvitation to Bid i' a 'e"spaper %$ 1e'era) 'ati%'"ide circ&)ati%' "#ic# #as bee' re1&)ar)* p&b)is#ed $%r t#e )ast 2 *ears be$%re t#e date %$ iss&e %$ t#e ad(ertiseme't "mplementing Rules and Regulations #"RR$ of RA '()*.the "nvitation to +id shall be8 a& Advertised at least once in a newspaper of general nationwide circulation which has been regularly published for at least 4 years before the date of issue of the advertisement& Audit Activities (2 ReCuest the %AC Secretariat to provide a cop9 of the entire page of the newspaper where the "nvitation to +id was advertised8 to be submitted to the Auditor on the da9 of advertisement2 !2 >rom the verification document obtained b9 the %AC Secretariat from the publisher8 check the e.as amended on September 4466'8 • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1 use goods and supplies.tent of circulation of the newspaper and the first da9 of its publicationH #2 Printout of the web page where the /nvitation to %id was posted in the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable for the first da9 and at least the last da9 of postingH *2 Certification b9 the head of the %AC Secretariat of the procuring entit9 that the invitation was posted at an9 conspicuous place reserved for the purpose in the premises of the procuring entit9 for 3 calendar da9s2 Audit Sub4ob"ective • Audit Criteria -.tent of circulation of the newspaper and the first da9 of publication2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Did the %AC advertise the "nvitation to +id in a newspaper of general nationwide circulation which has been regularl9 published for the last ! 9ears before the date of issue of the advertisementM 2.December 2009 Page +3 .%2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 :ntire page of the newspaper where the "nvitation to +id was advertisedH !2 Document used b9 the %AC Secretariat to verif9 from the publisher the e.

and the website prescribed by the foreign government:foreign or international financing institution.for 3 calendar days starting on the date of advertisement Audit Activities Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable2 Print the page where the notice was posted &to form part of the audit evidences'2 .the website of the procuring entity concerned.if available.if applicable.the "nvitation to +id shall be8 a& < b& Posted continuously in the PhilG/PS website.2 Access the websites at random during the 34da9 period to verif9 the postings2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer starting on the date of advertisement M !2 website of the procuring entit9 concerned8 if available8 for 3 calendar da9s starting on the date of advertisement M #2 website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable8 for 3 calendar da9s starting on the date of advertisement M 4.the "nvitation to +id shall be8 a&< 02 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 32 Conduct ocular inspection on the first da9 of posting2 52 Repeat the ocular inspections &ma9 be at random' during the 34da9 period to verif9 the postings2 +2 ReCuest for the certification of the head of the %AC Secretariat2 Did the %AC post the "nvitation to +idB (2 continuousl9 for seven &3' calendar da9s8 !2 at the conspicuous place reserved for the purpose in the premises of the procuring entit98 #2 as certified b9 the head of the %AC Secretariat of the procuring entit9M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria $%rei1' 1%(er'me't.December 2009 Page +5 . T% (eri$* i$ t#e +AC p%sted t#e *nvitation to Bid c%'ti'&%&s)* at a'* c%'spic&%&s p)ace reser(ed $%r t#e p&rp%se i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r : ca)e'dar da*s0 as certi$ied b* t#e #ead %$ t#e +AC 6ecretariat %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4466'8 • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1 use goods and supplies.as amended on September 4466'8 • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1 use goods and supplies.$%rei1' %r i'ter'ati%'a) $i'a'ci'1 i'stit&ti%'0 i$ app)icab)e0 $%r : ca)e'dar da*s starti'1 %' t#e date %$ ad(ertiseme't "mplementing Rules and Regulations #"RR$ of RA '()*.

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4.December 2009 Page ++ .as certified by the head of the +AC Secretariat of the procuring entity& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Appropriate Audit -orking Papers -. etc. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.Audit Sub4ob"ective • Audit Criteria b& < c& Posted at any conspicuous place reserved for the purpose in the premises of the procuring entity for 3 calendar days.e the instances of non4compliances to i'sta'ces %$ '%'.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Anal9. T% (eri$* t#e e$$ects %$ Anal9. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers develop appropriate audit recommendations2 Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . establish the effects and c%mp)ia'ce %' t#e= a.

PO6TING OF THE IN8ITATION TO +ID (F%r pr%c&reme't %$ 1%%ds c%sti'1 P2 mi))i%' a'd be)%"! A2 AAD/T O%E:CT/6:B To verif9 if the /nvitation to %id was posted in the media as reCuired and within the specified time %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for evaluationB (2 Printout of the web pages where the /nvitation to %id was posted in the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable for the first da9 and at least the last da9 of postingH !2 Certification b9 the head of the %AC Secretariat of the procuring entit9 that the invitation was posted at an9 conspicuous place reserved for the purpose in the premises of the procuring entit9 for 3 calendar da9s2 Audit Sub4ob"ective • Audit Criteria -.I8.uired for Audit Activities (2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 !2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable2 Print the page where the notice was posted &to form part of the audit evidences'2 #2 Access the websites at random during the 34da9 period to verif9 the postings2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer Did the %AC post the "nvitation to +id continuousl9 in theB (2 Phil :PS website for 3 calendar da9s starting on the date of advertisementM !2 website of the procuring entit9 concerned8 if available8 for 3 calendar da9s starting on the date of advertisementM #2 website prescribed b9 the foreign government7 foreign or international financing Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4466'8 • 4(&4&4& Advertisement of the "nvitation to +id n a newspaper of general nationwide circulation provided in Section 4(&4&( #a$ shall not be re. T% (eri$* i$ t#e +AC p%sted t#e *nvitation to Bid c%'ti'&%&s)* i' t#e P#i)GEP6 "ebsite0 t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e0 a'd t#e "ebsite prescribed b* t#e $%rei1' 1%(er'me't.December 2009 Page (11 .$%rei1' %r i'ter'ati%'a) $i'a'ci'1 i'stit&ti%'0 i$ app)icab)e0 $%r : ca)e'dar da*s starti'1 %' t#e date %$ ad(ertiseme't "mplementing Rules and Regulations #"RR$ of RA '()*.

2 Conduct ocular inspection on the first da9 of posting2 02 Repeat the ocular inspections &ma9 be at random' during the 34 da9 period to verif9 the postings2 32 ReCuest for the certification of the head of the %AC Secretariat Did the %AC post the /nvitation to %id continuousl9 at an9 conspicuous place reserved for the purpose in the premises of the procuring entit9 for 3 calendar da9s8 as certified b9 the head of the %AC Secretariat of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC p%sted t#e I'(itati%' t% +id c%'ti'&%&s)* at a'* c%'spic&%&s p)ace reser(ed $%r t#e p&rp%se i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r : ca)e'dar da*s0 as certi$ied b* t#e #ead %$ t#e +AC 6ecretariat %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.the website of the procuring entity concerned.the "nvitation to +id shall be8 b& < b& Posted continuously in the PhilG/PS website.December 2009 Page (1( .if applicable.as certified by the head of the +AC Secretariat of the procuring entity concerned& *2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 .and the website prescribed by the foreign government:foreign or international financing institution.Audit Sub4ob"ective • Audit Criteria contracts to be bid with an approved budget of < Two 5illion Pesos #P4-666-666&66$ and below 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1use goods and supplies.for 3 calendar days starting on the date of advertisement Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer institution8 if applicable8 for 3 calendar da9s starting on the date of advertisementM 2.if available.as amended on September 4466'8 • 4(&4&( a<& b< c& Posted continuously at any conspicuous place reserved for the purpose in the premises of the procuring entity for 3 calendar days.

T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Audit Activities Anal9.December 2009 Page (1! .Audit Sub4ob"ective • Audit Criteria -. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. c%mp)ia'ce %' t#e= a. etc.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Anal9.e the instances of non4compliances to establish the effects and develop appropriate audit recommendations2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer Appropriate Audit -orking Papers 2.

I66UANCE OF +IDDING DOCUMENT6 FOR THE PROCUREMENT OF GOOD6 The bidding documents must be made available to the prospective bidders from the time the /nvitation to %id is advertised until immediatel9 before the deadline for submission of bids2 A2 AAD/T O%E:CT/6:SB (2 !2 To determine whether the prescribed procedures in the issuance of bidding documents were followed To determine whether the prescribed timelines in the issuance of bidding documents were followed :ST:D -ORK/@ PAP:R %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for evaluationB (2 /nvitation to %idH !2 Printout of the web pages where the /nvitation to %id was posted in the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable for the first da9 of postingH #2 Records of the %AC on issued bidding documents &with information on Official Receipt numbers' for the procurement at hand2 Audit Sub4ob"ective • Audit Criteria -.8.December 2009 Page (1# . T% (eri$* i$ t#e +AC %bser(ed t#e time Audit Activities (2 Compare the Fperiod of availabilit9 of the %idding DocumentsG Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the %AC make the bidding documents Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ocuments and to prepare their respective bids.ocuments for the contract to be bid available for the following period8 a$ 9or the procurement of goods.as amended on September 4466'8 • (3&7 F The procuring entity shall also post the +idding .December 2009 Page (1* .ocuments at its website and at the PhilG/PS website from the time that the "nvitation to +id is advertised& Prospective !2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting of %idding Documents2 #2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available2 Print the page where the notice was posted &to form part of the audit evidences'2 *2 Access the websites at random from the first da9 of posting up to the deadline for the submission and receipt Did the %AC post the %idding Documents in theB a2 Phil :PS website starting on the first da9 of advertisement M website of the procuring entit9 concerned8 if available8 starting on the first da9 of advertisement M b2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC p%sted t#e +iddi'1 D%c&me'ts at t#e "ebsite %$ t#e pr%c&ri'1 e'tit* a'd at t#e P#i)GEP6 "ebsite $r%m t#e time t#at t#e I'(itati%' t% +id "as ad(ertised &p t% t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria re@&ired i' maAi'1 t#e +iddi'1 D%c&me'ts a(ai)ab)e0 t#at is0 $r%m t#e time t#e I'(itati%' t% +id "as $irst ad(ertised &p t% t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids "mplementing Rules and Regulations #"RR$ of RA '()*.the concerned +AC shall ma e the +idding .as amended on September 4466'8 • (3&.from the time the "nvitation to +id is first advertised:posted until the deadline for the submission of bids& Audit Activities indicated in the "nvitation to +id with the first da9 of advertising7posting of the "nvitation to +id &da9 ( of period' and the deadline for the submission of bids &last da9 of period'2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s available from the time the "nvitation to +id was first advertised7 posted up to the deadline for the submission and receipt of bidsM 2.& To provide prospective bidders ample time to e@amine the +idding .

ed collecting officer of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT -. .ocuments from any of the said websites? Provided that.Audit Sub4ob"ective • Audit Criteria +idders may download the +idding .ocuments upon payment of the corresponding cost thereof to the collecting: disbursing officer of the procuring entity concerned& • (3&7& < Prospective bidders may download the +idding .as amended on September 4466'8 • (3&*& +idders may be as ed to pay for the +idding . a'd de(e)%p appr%priate develop appropriate audit recommendations2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ocuments to recover the cost of its preparation and development& The +AC shall issue the +idding . T% (eri$* t#e e$$ects %$ Anal9.e the instances of non4compliances to Appropriate Audit -orking Papers i'sta'ces %$ '%'.bidders shall pay the fee for the +idding . (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.ed collecting officers2 Did all the bidders who submitted bids pa9 the correct amount for the bidding documents to the authori. T% (eri$* i$ a)) bidders t#at sec&red +iddi'1 D%c&me'ts paid t% t#e a&t#%riIed c%))ecti'1 %$$icer %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.ocuments upon submission of their +ids& Audit Activities of bids to verif9 the postings2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 4. etc. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.bidders shall pay the fee for the +idding . establish the effects and c%mp)ia'ce %' t#e= a.December 2009 Page (1.ocuments upon submission of their bids& .2 Compare the records of the %AC on issued bidding documents &with information on Official Receipt numbers' for the procurement at hand with copies of Official Receipts &ORs' issued b9 authori.ed collecting officers for the sale of bidding documents2 02 After submission of bids8 for bidders that downloaded bidding documents8 compare the OR numbers indicated in the records of the %AC Secretariat with copies of the ORs or Report of Collection of authori.ocuments from any of the said websites? Provided that.

c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. PRE.December 2009 Page (10 .+ID CONFERENCE F%r pr%c&reme't %$ 1%%ds "it# Appr%(ed +&d1et $%r t#e C%'tract %$ at )east O'e Mi))i%' Pes%s (P Mi))i%'! The pre4bid conference is the initial forum where the Procuring :ntit9)s representatives and the prospective bidders discuss the different aspects of the procurement at hand2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable 8I.Audit Sub4ob"ective • Audit Criteria a&dit rec%mme'dati%'s 2.

mi))i%' "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 Audit Activities (2 /f the A%C is at least P( million8 obtain certified copies of the /nvitation to %id and Minutes of the Pre4%id Conference2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the %AC hold a Pre4%id Conference for a contract with A%C of at least P( millionM • 44&(& 9or contracts to be bid with an approved budget of One 5illion Pesos #P(-666-666&66$ or morethe +AC shall convene at least one #($ pre1bid conference to clarify and:or e@plain any of the re.+id C%'$ere'ce $%r a c%'tract "it# A+C %$ at )east P. T% (eri$* i$ t#e +AC c%'d&cted a Pre.a pre1 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ocuments& 9or contracts to be bid with an approved budget of less than One 5illion Pesos #P(-666-666$.A pre4bid conference must be held for contracts with A%Cs of at least One Million Pesos &P ( Million'2 >or contracts with A%Cs of less than P ( million8 pre4bid conferences ma9 or ma9 not be held at the discretion of the %AC2 The %AC ma9 also decide to hold a pre4bid conference upon the written reCuest of a prospective bidder2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC conducted a Pre4%id Conference for a contract with A%C of at least P( million !2 To verif9 if the Pre4%id Conference was conducted within the reCuired time #2 To verif9 if during the Pre4%id Conference the participants8 led b9 the %AC8 performed the reCuired tasks %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for evaluationB (2 /nvitation to %idH !2 Minutes of the pre4bid conference approved b9 the %ACH #2 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH *2 /nvitations to the Observers with evidence of receipt2 Audit Sub4ob"ective • Audit Criteria -.and specifications stipulated in the +idding .uirements.termsconditions.pre1bid conferences may be conducted at the discretion of the +AC& Sub0ect to the approval of the +AC.December 2009 Page (13 .

6$ calendar days before the deadline for the submission and receipt of bids& established in !2 above with the date of holding the Pre4%id Conference indicated in the certified cop9 of the 5inutes of Pre1+id Conference 2 -as the Pre4%id Conference held at least twelve calendar da9s before the deadline for the submission and receipt of bidsM 4.a longer period for the preparation of bids is necessary.December 2009 Page (15 . T% (eri$* i$ t#e +AC %bser(ed @&%r&m. "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (4&.Audit Sub4ob"ective • Audit Criteria bid conference may also be conducted upon written re. Iuorum A ma0ority of the total +AC composition as designated by the >ead of the Procuring /ntity shall constitute a .uired& *2 >rom the Office Order creating the %AC8 determine the number of %AC members and identif9 the Chairman or 6ice4Chairman2 .uest of any prospective bidder& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s !2 %ased on the deadline 2.the pre1bid conference shall be held at least thirty #.by reason of the method. for the submission and +id C%'$ere'ce "as #e)d at )east t"e)(e (-2! receipt of bids indicated in the "nvitation to +id8 ca)e'dar da*s be$%re determine the (!th da9 t#e dead)i'e $%r t#e before such deadline2 s&bmissi%' a'd receipt %$ bids #2 Compare the date "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • 44&4 The pre1bid conference shall be held at least twelve #(4$ calendar days before the deadline for the submission and receipt of bids& "f the procuring entity determines that.or comple@ity of the contract to be bid or when international participation will be more advantageous to the GOP.provided that the presence of the Chairman or 2ice1Chairman shall be re.uorum for the transaction of business. T% (eri$* i$ t#e Pre.nature.2 >rom the 5inutes of Pre1+id Conferencecheck for the presence of the Chairman or 6ice4 Chairman and if ma"orit9 of the %AC members or representatives7alternate s attended the conference2 -as there a Cuorum of the %ACM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

Emp#asiIed t#e "arra't* re@&ireme't %$ t#e pr%Cect a'd t#e di$$ere't %$$e'ses a'd pe'a)ties pr%(ided $%r i' IRR %$ RA -23. Audit Activities 02 >rom the 5inutes of Pre1+id Conference look for information on the presentation7discussion8 issues7Cuestions raised b9 prospective bidders8 and clarifications made thereon relative to the followingB a2 eligibilit9 reCuirements8 b2 technical component of the contract to be bid8 c2 financial component of the contract to be bid8 d2 bid evaluation criteria8 e2 bid evaluation procedures8 f2 post4Cualification criteria8 g2 post4Cualification procedures8 h2 possible causes of failure of the bidding8 i2 reCuirements in the /nstructions to %idders8 "2 specifications8 k2 other conditions of the pro"ect8 l2 warrant9 reCuirement of the pro"ect8 m2 different offenses and penalties provided for in /RR of RA +(5* Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the %AC present8 discuss8 and answer Cueries on the followingB a2 eligibilit9 reCuirements M b2 technical component of the contract to be bidM c2 financial component of the contract to be bidM d2 bid evaluation criteriaM e2 bid evaluation proceduresM f2 post4 Cualification criteriaM g2 post4 Cualification proceduresM h2 possible causes of failure of the biddingM i2 reCuirements in the /nstructions to %iddersM "2 specificationsM k2 other conditions of the pro"ectM l2 warrant9 reCuirement of the pro"ectM m2 different offenses and penalties b.Audit Sub4ob"ective • Audit Criteria 3. "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • 44&.December 2009 Page (1+ .uirements and the technical and financial Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the eligibility re. Disc&ssed t#e re@&ireme'ts i' t#e IT+0 rep)ied t% t#e biddersF @&eries ab%&t t#e re@&ireme'ts0 speci$icati%'s a'd %t#er c%'diti%'s %$ t#e pr%Cect0 t#e pr%ced&res %' t#e bid e(a)&ati%' %$ a)) bidders a'd p%st. T% (eri$* i$ d&ri'1 t#e C%'$ere'ce t#e +AC per$%rmed t#e $%))%"i'1 tasAs a'd attai'ed t#e re)ated %bCecti(es= a. @&a)i$icati%' e(a)&ati%' %$ t#e )%"est ca)c&)ated bidder.& The pre1bid conference shall discussamong other things. Prese'ted t#e e)i1ibi)it* re@&ireme'ts as "e)) as t#e tec#'ica) a'd $i'a'cia) c%mp%'e'ts %$ t#e c%'tract t% be bid0 t#e e(a)&ati%' pr%ced&res0 e(a)&ati%' criteria0 a'd p%ssib)e ca&ses %$ $ai)&re %$ t#e biddi'1.

uirementsspecifications and other conditions of the pro0ectthe bid evaluation of all bidders and post1 .uirement of the pro0ect and the different offenses and penalties provided for in "RR1A of R&A& '()*& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s provided for in /RR of RA +(5*M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page ((1 .ocuments shall be allowed to participate in the pre1bid conference and raise or submit written .uirements in the "T+.several events need to ta e place in the conference.the replies to the biddersE .ueries about the re.AT T>/ OPT"O% O9 T>/ PROCUR"%G /%T"TJ Oamendment per Anne.5anual of Procedures for the Procurement of Goods and Services issued by the GPP+8 • The manner by which the pre1bid conference is conducted depends on the discretion of the +AC& >owever.ueries or clarifications& Generic Procurement 5anual2olume 4.and possible causes of failure of the bidding& b& The +AC chairperson shall also discuss the re.uirements as well as the technical and financial components of the contract to be bid.ualification evaluation of the lowest calculated bidder& /mphasis should also be given to the warranty re. FAG of PP% Resolution @o2 104 !11+ dated #1 September !11+P only those who have purchased the +idding .Audit Sub4ob"ective • Audit Criteria components of the contract to be bid& Attendance of the bidders shall not be mandatory& >owever.namely8 a&The presentation by the +AC of the eligibility re.the evaluation criteria.

December 2009 Page ((( .pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Did the %AC choose the Observers consideringB a2 one representing the COAM b2 One representing the specific relevant chamber4 member of the Philippine Chamber of Commerce and /ndustr9M c2 One representing a non4 government organi.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 7.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b. t#at #a(e= b.bid c%'$ere'ce "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • 44&* The minutes of the pre1bid conference shall be recorded and made available to all participants not later than three #. member %$ t#e P#i)ippi'e C#amber %$ C%mmerce a'd I'd&str*0 a'd a '%'.-.$ calendar days after the pre1 bid conference 32 Compare the date of the approval of the Minutes of the pre4bid conference with the date of the pre4bid conference2 -ere the Minutes of the Pre4%id Conference made available not later than three &#' calendar da9s after the pre4bid conferenceM 52 Confirm with the participants &telephone calls or letters' if the9 were given copies of the Minutes and when2 -ere the minutes of pre4 bid conference made available b9 the %AC Secretariat to all the participantsM 5. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd +2 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.ation from which the Observer will be invitedH • knowledge8 e.perience or e.ationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC i'(ited Obser(ers= a. T% (eri$* i$ t#e +AC 6ecretariat rec%rded t#e pr%ceedi'1s %$ t#e Pre. represe'ti'1 t#e COA0 t#e speci$ic re)e(a't c#amber.+id C%'$ere'ce a'd made t#e Mi'&tes a(ai)ab)e t% a)) participa'ts '%t )ater t#a' t#ree (4! ca)e'dar da*s a$ter t#e pre.2.

e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or (12 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement2 Did the %AC invite the Observers at least # da9s before the date of the pre4bid conferenceM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .in all stages of the procurement process.Audit Sub4ob"ective • Audit Criteria b.as amended on September 4.&(& To enhance the transparency of the processthe +AC shall.evelopment Authority #C.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .invitein addition to the representative of the COA.who shall not have the right to vote.for e@ample8 i$ < ii$ 9or goods.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.at least two #4$ observers.466'8 • Section (.& Observers (. at )east 4 ca)e'dar da*s pri%r t% t#e pre.December 2009 Page ((! . bid c%'$ere'ce "mplementing Rules and Regulations #"RR$ of RA '()*.pertise in procurement or in the sub"ect matter of the contract to be bidM e2 -ith no actual or potential conflict of interest in the contract to be bidM f2 Conformed with other relevant criteria determined b9 the %ACM c. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s d2 -ith knowledge8 e.4.perience or e.A$and should meet the following criteria8 a$ Hnowledge.a specific relevant chamber1 member of the Philippine Chamber of Commerce and "ndustry& iii$ < and b$ The other observer shall come from a non1 government organi=ation #%GO$& (.

(a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.& Observers shall be invited at least three #. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.provided that they have been duly invited in writing& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.December 2009 Page ((# . develop appropriate audit recommendations2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&.Audit Sub4ob"ective • Audit Criteria potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s. T% (eri$* t#e e$$ects non4compliances to Appropriate Audit -orking Papers %$ i'sta'ces %$ '%'. establish the effects and c%mp)ia'ce %' t#e= a. etc.e the instances of -.

&. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Appropriate Audit -orking Papers 4.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedingsprovided that they have been duly invited in writing& Audit Activities Anal9.& Observers shall be invited at least three #.Audit Sub4ob"ective • Audit Criteria 2. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page ((* .466'8 • (.as amended on September 4.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

.2 Printout of the procuring entit9)s web page evidencing posting of the Supplemental7%id %ulletin2 Audit Sub4ob"ective • Audit Criteria -. 6UPP9EMENTA9 . T% (eri$* i$ t#e +AC iss&ed 6&pp)eme'ta) .466'8 • 44&*& < Any statement made at the pre1bid conference shall not modify the terms of the +idding .8II. +ID +U99ETIN6 FOR THE PROCUREMENT OF GOOD6 Supplemental7%id %ulletins ma9 be issued upon the procuring entit9)s initiative for purposes of clarif9ing or modif9ing an9 provision of the %idding Documents at least seven &3' calendar da9s before the deadline for the submission and receipt of bids2 An9 modification to the %idding Documents shall be identified as an amendment2 A2 AAD/T O%E:CT/6:B To verif9 if Supplemental 7 %id %ulletins were issued as reCuired %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 Minutes of the Pre4%id Conference approved b9 the %ACH !2 Cop9 of the Supplemental7%id %ulletinH #2 Copies of ReCuests for Clarification submitted b9 bidder with evidence of receipt b9 the %AC SecretariatH *2 Printouts of Phil :PS web page evidencing posting of the Supplemental7%id %ulletinH .as amended on September 4. +id +&))eti's i' re1ard t% stateme'ts made at t#e pre.ocumentsunless such statement is specifically identified in writing as an amendment thereto and Audit Activities (2 o over the Minutes of the Pre4%id Conference and check for statements that could modif9 the terms of the %idding Documents2 !2 Obtain a cop9 of the related Supplemental 7 %id %ulletin2 Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer Did the %AC issue Supplemental7%id %ulletins in regard to statements made at the pre4 bid conference that could modif9 the terms of the %idding DocumentsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page ((.bid c%'$ere'ce t#at c%&)d m%di$* t#e terms %$ t#e +iddi'1 D%c&me'ts "mplementing Rules and Regulations #"RR$ of RA '()*.

+id +&))eti' "as iss&ed at )east se(e' (:! ca)e'dar da*s be$%re t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bid.uests for Clarification submitted at least ten &(1' calendar da9s before the deadline set for the submission and receipt of bidsM -ere Supplemental7 %id %ulletins signed b9 the %AC ChairmanM -ere Supplemental7 %id %ulletins issued at least seven &3' calendar da9s before the deadline for the submission and receipt of bidM c. T% (eri$* i$= a.as amended on September 4.December 2009 Page ((0 .2 >rom the records of the %AC &copies of Supplemental7%id %ulletins with evidence of the date of issuance' check if Supplemental7%id %ulletins were issued at least seven &3' calendar da9s before the deadline for the submission and receipt of bid2 -ere Re.ocuments or for an interpretation must be in writing and submitted to the +AC of the procuring entity at least ten #(6$ calendar days before the deadline set for the submission and receipt of bids& The +AC shall respond to the said re.Audit Sub4ob"ective • Audit Criteria issued as a Supplemental: +id +ulletin& Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer 2.at least seven #3$ calendar days before the deadline for the submission and receipt of bids& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . #2 Obtain cop97ies of Re. re@&ests $%r c)ari$icati%'(s! %' a'* part %$ t#e +iddi'1 D%c&me'ts %r $%r a' i'terpretati%' "ere i' "riti'1 a'd s&bmitted t% t#e +AC %$ t#e pr%c&ri'1 e'tit* at )east te' (-0! ca)e'dar da*s be$%re t#e dead)i'e set $%r t#e s&bmissi%' a'd receipt %$ bidsB b.to be made available to all those who have properly secured the +idding . "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • 44&7&( Re.uest by issuing a Supplemental:+id +ulletinduly signed by the +AC Chairman.uests for Clarification and check &date of receipt stamped on the letters' whether these were submitted at least ten &(1' calendar da9s before the deadline set for the submission and receipt of bids2 *2 Obtain dul9 certified copies of Supplemental7%id %ulletins and check for the signature of the %AC Chairman2 . t#e 6&pp)eme'ta).uests for clarification#s$ on any part of the +idding . +id +&))eti' "as d&)* si1'ed b* t#e +AC C#airma'B t#e 6&pp)eme'ta).ocuments.

+id +&))eti's iss&ed b* t#e +AC %' t#e P#i)GEP6 a'd at t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.+id +&))eti's i'itiated b* t#e pr%c&ri'1 e'tit* $%r p&rp%ses %$ c)ari$*i'1 %r m%di$*i'1 a'* pr%(isi%' %$ t#e +iddi'1 D%c&me'ts "ere iss&ed at )east se(e' (:! ca)e'dar da*s be$%re t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bidsB b.Audit Sub4ob"ective • Audit Criteria 4.ocuments at least seven #3$ calendar days before the deadline for the submission and receipt of bids& Any modification to the +idding . T% (eri$* i$= a. "mplementing Rules and Regulations #"RR$ of RA '()*. M%di$icati%'s t% t#e +iddi'1 D%c&me'ts "ere ide'ti$ied as ame'dme'ts. T% (eri$* i$ t#e +AC p%sted 6&pp)eme'ta).466'8 • 44&7&.466'8 • 44&7&(& < issuing a Supplemental:+id +ulletinduly signed by the +AC Chairman< • 44&7&4 Supplemental:+id +ulletins may be issued upon the procuring entityEs initiative for purposes of clarifying or modifying any provision of the +idding .as amended on September 4.December 2009 Page ((3 . 6&pp)eme'ta).ocuments shall be identified as an amendment& Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer -ere Supplemental7 %id %ulletins initiated b9 the procuring entit9 for purposes of clarif9ing or modif9ing an9 provision of the %idding Documents were issued at least seven &3' calendar da9s before the deadline for the submission and receipt of bidsM -ere modifications to the %idding Documents were identified as amendmentsM 02 Obtain dul9 certified copies of Supplemental7%id %ulletins with evidence of the date of issuance and check if these were issued at least seven &3' calendar da9s before the deadline for the submission and receipt of bid2 32 o through the contents of Supplemental7%id %ulletins and check if amendments were identified as such2 52 o through the Supplemental7%id %ulletins and check for the signature of the %AC Chairman2 -ere Supplemental7%id %ulletins dul9 signed b9 the %AC ChairmanM 3. Any Supplemental: +id +ulletin issued by the +AC +2 /n advance of the posting8 reCuest the %AC Secretariat for print4outs &printed on the da9 of the posting' of Supplemental:+id +ulletins as posted on the Phil :PS and at their website2 (12 Obtain from the %AC Secretariat the print4outs reCuested in +2 above2 Did the %AC post Supplemental:+id +ulletins issuedB a2 on the Phil :PS websiteM A@D b2 the website of the procuring entit9 concernedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ocuments to in. "mplementing Rules and Regulations #"RR$ of RA '()*. establish the effects and c%mp)ia'ce %' t#e= a.e the instances of -.466'8 • 44&7&. T% (eri$* t#e e$$ects %$ non4compliances to Appropriate Audit -orking Papers i'sta'ces %$ '%'.December 2009 Page ((5 develop appropriate audit recommendations2 .bidders who have submitted bids before the issuance of the Supplemental:+id +ulletin must be informed and allowed to modify or withdraw their bids in accordance with Section 4D&( of the "RR& ((2 >rom the %AC records on submission of bids8 identif9 the bidders who have submitted bids before the issuance of Supplemental:+id +ulletins& (!2 o through copies of letters sent b9 the %AC to these bidders and check if the9 were informed and allowed to modif9 or withdraw their bids in accordance with Section !02( of the /RR Did the %AC inform the %idders who have submitted bids before the issuance of the Supplemental7%id %ulletin of such issuanceM -ere the bidders who have submitted bids before the issuance of Supplemental:+id +ulletins informed and allowed to modif9 or withdraw their bids in accordance with Section !02( of the /RRM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. T% (eri$* i$ t#e +AC i'$%rmed t#e bidders "#% #a(e s&bmitted bids be$%re t#e iss&a'ce %$ t#e 6&pp)eme'ta).as amended on September 4.uire and secure Supplemental:+id +ulletins that may be issued by the +AC& >owever.if available& "t shall be the responsibility of all those who have properly secured the +idding .bidders who have submitted bids before the issuance of the Supplemental:+id +ulletin must be informed and allowed to modify or withdraw their bids in accordance with Section 4D&( of the "RR& Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer 7. (a)idit* %$ a'* pa*me't Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . < >owever.Audit Sub4ob"ective • Audit Criteria shall also be posted on the PhilG/PS or OFORG was changed to FA@DG per Anne. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.+id +&))eti' a'd a))%"ed t% m%di$* %r "it#dra" t#eir bids. FAG of PP% Resolution @o2 104 !11+ dated September #18 !11+P the website of the procuring entity concerned.

e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Appropriate Audit -orking Papers Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 4. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. etc. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s 2.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer Anal9. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.Audit Sub4ob"ective • Audit Criteria t% be made %' t#e basis %$ t#e c%'tractB c.December 2009 Page ((+ .

2 /nvitation to %idH 02 Accomplished Chec list for the >irst :nvelopesH 32 Accomplished Chec list for the Second :nvelopesH 52 Abstract of %ids as ReadH +2 %AC Resolution on the results of the opening and the preliminar9 evaluation of bidsH (12 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH ((2 /nvitations to the Observers with evidence of receipt2 Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer Audit Activities 6U+MI66ION OF +ID6 FOR THE PROCUREMENT OF GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (!1 . 6U+MI66ION0 RECEIPT0 OPENING OF +ID6 L PRE9IMINARH E<AMINATION OF +ID6 FOR THE PROCUREMENT OF GOOD6 %ids shall be submitted simultaneousl9 in two &!' separate sealed envelopes and received b9 the procuring entit9 on or before the deadline specified in the /nvitation to %id2 Opening of %ids shall be at the time8 date and place specified in the /nvitation to %id2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the prescribed c%'diti%'s a'd pr%ced&res in the s&bmissi%' a'd receipt of bids were followed !2 To verif9 if the bids were submitted in the prescribed ma''er0 speci$ied $%rms and contained all the re@&ired i'$%rmati%' #2 To verif9 if the prescribed c%'diti%'s a'd pr%ced&res in the %pe'i'1 a'd pre)imi'ar* e?ami'ati%' of bids were followed2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 Minutes of the %id Opening approved b9 the %ACH !2 $etters from bidders submitting their bidsH #2 %id documents submitted b9 the biddersH *2 Cop9 of portions of the %AC Secretariat)s Receiving logbook containing information on receipt of bidsH .8III.

it "as d%'e be$%re t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids0 b.ocuments in two #4$ separate sealed bid envelopes.including the eligibility re. T% (eri$* i$ t#e +AC (a)idated t#at i' m%di$*i'1 a bid= a.2 o through the records of the %AC pertaining to the submission of bids of each bidder and check if the submission of modifications were done before the deadline for the submission and receipt2 02 o through the 5inutes of the +id Opening and look for information on the %AC)s activities validating ifB a2 modifications were marked as FmodificationG and stamped FreceivedG b9 the %ACH and b2 linked to the original bid &not withdrawn'2 Did the %AC validate that the bidders concerned submit their bid modifications before the deadline for the submission and receiptM Did the %AC validate if the bidders concerned did not retrieve the original bid but merel9 submitted another bid eCuall9 sealed8 properl9 identified8 and linked to the original bid and marked as a Fmodification8G thereof8 and stamped FreceivedG Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . &si'1 t#e $%rms speci$ied i' t#e +iddi'1 D%c&me'ts0 c.as amended on September 4.ed representative as indicated in the Sworn statement & Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer Did the %AC validate if the bidders submit their bids through their dul9 authori.Audit Sub4ob"ective • Audit Criteria -.as .and which shall be submitted simultaneously& The first shall contain the technical component of the bid.ed representativeM "mplementing Rules and Regulations #"RR$ of RA '()*.&( of this "RR.December 2009 Page (!( .uirements under Section 4. i' t"% (2! separate sea)ed bid e'(e)%pes s&bmitted sim&)ta'e%&s)* Audit Activities (2 o through the 5inutes of the +id Opening and look for information on the %AC)s validation if the signator9 to the document submitting the bid is the bidder)s authori.466'8 • 47&(& +idders shall submit their bids through their duly authori=ed representative using the forms specified in the +idding .and the second shall contain the financial component of the bid& !2 o through the 5inutes of the +id Opening and look for information on the %AC)s validation if each bidder adopted the forms specified in the %idding Documents2 #2 o through the records of the %AC pertaining to the submission of bids of each bidder and check if the two &!' envelopes were submitted simultaneousl92 *2 o through the 5inutes of the +id Opening and look for information pertaining to opening of two &!' sealed envelopes of each bidder2 Did the %AC validate if the bidders submitted their bids using the forms specified in the %idding DocumentsM Did the bidders submit their bids in two &!' separate sealed bid envelopes submitted simultaneousl9M 2. T% (eri$* i$ t#e +AC (a)idated i$ t#e bidders s&bmitted t#eir bids= a. t#e %ri1i'a) bid "as '%t retrie(ed b&t a'%t#er bid e@&a))* sea)ed0 pr%per)* ide'ti$ied0 "as s&bmitted a'd )i'Aed t% t#e %ri1i'a) bid a'd marAed as a Dm%di$icati%'0E t#ere%$0 a'd stamped Drecei(edE b* t#e +AC "mplementing Rules and Regulations #"RR$ of RA '()*. t#r%&1# t#eir d&)* a&t#%riIed represe'tati(e0 b.

Audit Sub4ob"ective • Audit Criteria amended on September 4. date0 receipt of bids and compare b.time.and place Did the %AC receive bids on the date and time specified in the /nvitation to %idM -ere the bids received b9 the %AC at the place specified in the /nvitation to %idM -ere bids submitted after the deadline for Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .through a letter. p)ace /nvitation to %id speci$ied i' t#e I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*.lin ed to its original bid and mar ed as a Bmodification-C thereof.and stamped BreceivedC by the +AC& +id modifications received after the applicable deadline shall not be considered and shall be returned to the bidder unopened& • 4D&4& A bidder may.it shall not be allowed to retrieve its original bid.provided that this is done before the deadline for the submission and receipt of bids& !here a bidder modifies its bid.ually sealedproperly identified.December 2009 Page (!! .as amended on September 4.but shall only be allowed to send another bid e.466'8 • 4D&(& A bidder may modify its bid.466'8 • 47&*& +ids shall be received by the +AC on the date.directly or indirectly.for the same contract& Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer b9 the %ACM RECEIPT OF +ID6 FOR THE PROCUREMENT OF GOOD6 (2 Check the receiving -.withdraw its bid before the deadline for the receipt of bids& !ithdrawal of bids after the applicable deadline shall be sub0ect to appropriate sanctions as prescribed in this "RR& A bidder may also e@press its intention not to participate in the bidding through a letter which should reach and be stamped received by the +AC before the deadline for the receipt of bids& A bidder that withdraws its bid shall not be permitted to submit another bid. T% (eri$* i$ t#e +AC logbook of the %AC on the recei(ed bids %' t#e= date8 time8 and place of a. time0 a'd these with those in the c.

T% (eri$* i$ t#e +AC %bser(ed t#e ma?im&m %$ 37 ca)e'dar da*s $r%m t#e )ast da* %$ p%sti'1 %$ t#e I'(itati%' t% +id &p t% t#e dead)i'e $%r s&bmissi%' a'd receipt %$ bids "mplementing Rules and Regulations #"RR$ of RA '()*.check for the presence of the Chairman or 6ice4Chairman and if ma"orit9 of the %AC members or representatives7alternates attended the proceedings2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .imum period2 Did the %AC observe the ma.timeand place specified in the "nvitation to +id:Re.as amended on September 4. T% (eri$* i$ t#e +AC creating the %AC8 determine of the %ACM %bser(ed @&%r&m.4da9 ma.provided that the presence of the Chairman or 2ice1Chairman shall be re.&( of this "RRsubmitted after the deadline shall not be accepted by the +AC& Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer submission of bids not acceptedM 2.Audit Sub4ob"ective • Audit Criteria specified in the "nvitation to +id& • 47&7& +ids.466'8 • 47&*& +ids shall be received by the +AC on the date.uired& the number of %AC members and identif9 the Chairman or 6ice4Chairman2 !2 >rom the 5inutes of Opening of +ids.466'8 • (4&.uorum for the transaction of business. "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page (!# .uirements under Section 4.a ma@imum period of forty1five #*7$ calendar days& b$ < c$ < !2 Count the number of da9s from the last da9 of posting of the /nvitation to %id up to the deadline for submission and receipt of bids and compare with the *.as amended on September 4.uest for /@pression of "nterest& The following periods from the last day of posting of the "nvitation to +id:Re. Iuorum A ma0ority of the total +AC composition as designated by the >ead of the Procuring /ntity shall constitute a . calendar da9s from the last da9 of posting of the /nvitation to %id up to the deadline for submission and receipt of bidsM OPENING L PRE9IMINARH E<AMINATION OF +ID6 FOR THE PROCUREMENT OF GOOD6 (2 >rom the Office Order -as there a Cuorum -.imum of *.including the eligibility re.uest for /@pression of "nterest up to the submission and receipt of bids shall be observed8 a$ 9or Goods.

as amended on September 4.466'8 • 4'& +id Opening The +AC shall open the bids immediately after the deadline for the submission and receipt of bids& O PP% Resolution @o2 (#4!11+8 dated (0 December !11+P The timedate.2 >rom the Minutes of %id Opening8 check for information on the %AC)s reading out and recording of withdrawn bids during the bid openingH checking of the date of submission of the withdrawal letterH and returning the withdrawn bid unopened2 02 Also check for evidence of the return of the withdrawn bids from acknowledged registered mails2 Did the %ACB a2 read out and record during bid b2 if the withdrawal of bid was made before the deadline for submission and receipt of bids8 return the bids unopened to representatives of c2 if the withdrawal of bid was made before the deadline Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and place of the opening of bids shall be specified in the +idding . T% (eri$* i$ t#e +AC %pe'ed t#e bids immediate)* a$ter t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids a'd at t#e= a. p)ace speci$ied i' t#e I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria 2. date0 b. T% (eri$* i$ t#e +AC.and confidentiality of all submitted bids& The minutes of the bid opening shall be made available to the public upon written re.uest and payment of a specified fee to recover cost of materials& Audit Activities #2 Compare the date and time of the opening of bids indicated in the Minutes of the Opening of %ids with the deadline for submission and receipt of bids stated in the %idding Documents2 *2 Compare the date8 time and place of the opening of bids indicated in the Minutes of the Opening of %ids with those specified in the /nvitation to %id2 Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer Did the %AC open the bids immediatel9 after the deadline for the submission and receipt of bidsM Did the %AC open the bids on the date specified in the /nvitation to %idM Did the %AC open the bids on the time specified in the /nvitation to %idM Did the %AC open the bids at the place specified in the /nvitation to %idM 4. time0 a'd c.ocuments& The bidders or their duly authori=ed representatives may attend the opening of bids& The +AC shall adopt a procedure for ensuring the integritysecurity.+AC 6ecretariat read %&t a'd rec%rded d&ri'1 bid %pe'i'1 )etters %$ "it#dra"a) a'd ret&r'ed t% t#e bidder t#e e'(e)%pe c%'tai'i'1 t#e c%rresp%'di'1 "it#dra"' bid &'%pe'ed0 eit#er t% t#e bidderFs represe'tati(e i$ #e is prese't %r b* re1istered mai) .December 2009 Page (!* .

piration of the period of bid validit9 specified b9 the bidder in the financial bid formH and for information on forfeiture of bid securit9 and imposition of sanctions on these bidders2 Did the %AC forfeit the bid securit9 and recommend the imposition of sanctions on bidders who withdrew their bids during the interval between the deadline for submission of bids and the e.&(& The +idder may modify its bid after it has been submitted? provided that the modification is received by the Procuring /ntity prior to the deadline prescribed for the submission and receipt of bids& The +idder shall not be allowed to retrieve its original bid.shall be returned unopened to the +idders& A +idder may also e@press its intention not to participate in the bidding through a letter which should reach and be stamped by the +AC before the deadline for submission and receipt of bids& A +idder that withdraws its bid shall not be permitted to 32 >rom the Minutes of the %id Opening8 check for information on withdrawals of bids made after the deadline for submission and receipt of bids up to the e.for valid and 0ustifiable reason? provided that the letter of withdrawal is received by the Procuring /ntity prior to the deadline prescribed for submission and receipt of bids& 4.&4& A +idder may.& +ids re.6 September 466'8 • 4.& 5odification and !ithdrawal of +ids 4. .piration of the period of bid validit9 specified b9 the %idder on the >inancial %id >ormM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update ."9"CAT"O%C or B9"%A%C"AA 5O.uested to be withdrawn in accordance with "T+ Clause 4.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer for submission and receipt of bids8 return withdrawn bids unopened b9 registered mailM Philippine +idding .&.through a letter of withdrawalwithdraw its bid after it has been submitted.mar ed as BT/C>%"CAA 5O.ually sealedproperly identified.lin ed to its original bid.&(."9"CAT"O%C and stamped BreceivedC by the +AC& +id modifications received after the applicable deadline shall not be considered and shall be returned to the bidder unopened& 4..ocuments for the Procurement of Goods.December 2009 Page (!.rd edition #October 466'$ approved per GPP+ Resolution %o& 671 466' dated .but shall be allowed to submit another bid.e.

&*& %o bid may be modified after the deadline for submission of bids& %o bid may be withdrawn in the interval between the deadline for submission of bids and the e@piration of the period of bid validity specified by the +idder on the 9inancial +id 9orm& !ithdrawal of a bid during this interval shall result in the forfeiture of the +idderEs bid security.sub0ect to appropriate sanctions& Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and criminal sanctions as prescribed by RA '()* and its "RR& • 4*& Opening and Preliminary /@amination of +ids 4*&.the original bid and all copies thereof shall be returned to the representative during the bid opening& "f the representative is not in attendance.pursuant to "T+ Clause ()&7.and the imposition of administrative.Audit Sub4ob"ective • Audit Criteria submit another bid.directly or indirectly. Aetters of withdrawal shall be read out and recorded during bid opening.civil.uesting for such withdrawal.provided that the corresponding Aetter of !ithdrawal contains a valid authori=ation re.the bid shall be returned unopened by registered mail& The +idder may withdraw its bid prior to the deadline for the submission and receipt of bids.and the envelope containing the corresponding withdrawn bid shall be returned to the +idder unopened& "f the withdrawing +idderEs representative is in attendance.for the same contract& 4.December 2009 Page (!0 .

uirement or are incomplete or patently insufficient shall be considered as BfailedC& Otherwise.using a nondiscretionary Bpass:failC criterion.466'8 • .Audit Sub4ob"ective • Audit Criteria 3.as amended on September 4.uired to be submitted for eligibility and for the technical re.December 2009 Page (!3 . T% (eri$* i$ t#e +AC Audit Activities 52 >rom the Attendance Record7Minutes of the Opening of %ids check if the participants include bidders and observers2 Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer Did the %AC open the first bid envelopes of the bidders in publicM %pe'ed t#e $irst bid e'(e)%pes %$ t#e bidders i' p&b)ic "mplementing Rules and Regulations #"RR$ of RA '()*.as prescribed in this "RR& 9or this purposethe +AC shall chec the submitted documents of each bidder against a chec list of re.it shall be rated BpassedC for that particular re.uirements. T% (eri$* i$ t#e +AC determi'ed c%mp)ia'ce %$ eac# bidder "it# t#e d%c&me'ts re@&ired t% be s&bmitted i' t#e $irst e'(e)%pe b* c#ecAi'1 t#e s&bmitted d%c&me'ts %$ eac# bidder a1ai'st a c#ecA)ist %$ re@&ired d%c&me'ts t% ascertai' i$ t#e* are a)) prese't0 &si'1 a '%'discreti%'ar* Dpass.the +AC shall rate the said first bid envelope as BpassedC 7.uirement& "n this regardbids that fail to include any re.$ai)E criteri%'0 as stated i' t#e I'str&cti%'s t% +idders +2 Compare the Checklist with the list of documents in the first envelope per %idding Documents2 Did the %AC adopt a Checklist for the first envelope in accordance with the list of documents in the first envelope per %idding DocumentsM Did the %AC determine each prospective bidder)s compliance with the documents reCuired to be submitted in the first envelopeB (12 6alidate the entries &Fpass7failG' in the Checklist with the documents submitted b9 the bidders in the first envelope &for presence or absence'2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uired documents to ascertain if they are all present.uired document.as stated in the "nstructions to +idders& "f a bidder submits the re.6&(& The +AC shall open the first bid envelopes of prospective bidders in public to determine each bidderEs compliance with the documents re.

bids that fail to include any re.uired to be submitted for eligibility and for the technical re.if applicable? and iv$ Sworn statement by the prospective bidder or its duly authori=ed representative in the form prescribed by the GPP+ as to the following8 #($ "t is not Bblac listedC or a2 Registration certificate from S:C8 Department of Trade and /ndustr9 &DT/' for sole proprietorship8 or CDA for cooperatives8 or an9 proof of such registration as stated in the %idding DocumentsM 6enture8 each partner)s Registration certificate from S:C8 Department of Trade and /ndustr9 &DT/' for sole proprietorship8 or CDA for cooperatives8 or an9 proof of such registration as stated in the %idding DocumentsM issued b9 the cit9 or municipalit9 where the principal place of business of the prospective bidder is locatedM 6enture8 each partner)s Ma9or)s permit issued b9 the cit9 or municipalit9 where the principal place of business of the prospective bidder is locatedM b2 /n a Eoint c2 Ma9or)s permit d2 /n a Eoint e2 Statement of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uirement& "n this regard.&( of this "RR? ii$ The bid security in the prescribed form.as amended on September 4.uired document.the +AC shall rate the said first bid envelope as BpassedC& • 47&4& The first envelope shall contain the following technical information: documents.amount and validity period? iii$ Technical specificationswhich may include production:delivery schedulemanpower re.the +AC shall chec the submitted documents of each bidder against a chec list of re.uirementsand:or after1sales service:parts.as stated in the "nstructions to +idders& "f a bidder submits the re.uirements.at the least8 a$ 9or the procurement of goods8 i$ /ligibility re.uirements under Section 4.uirement or are incomplete or patently insufficient shall be considered as BfailedC& Otherwise.it shall be rated BpassedC for that particular re.466'8 • .Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer "mplementing Rules and Regulations #"RR$ of RA '()*.uired documents to ascertain if they are all present.using a nondiscretionary Bpass:failC criterion.December 2009 Page (!5 .6&(& The +AC shall open the first bid envelopes of prospective bidders in public to determine each bidderEs compliance with the documents re.as prescribed in this "RR& 9or this purpose.

December 2009 Page (!+ .including foreign government:foreign or international financing institution whose blac listing rules have been recogni=ed by the GPP+? #4$ /ach of the documents submitted in satisfaction of the bidding re.$ "t is authori=ing the >ead of the Procuring /ntity or his duly authori=ed representative:s to verify all the documents submitted? #*$ The signatory is the duly authori=ed representative of the prospective bidder.complete.corporations.or AGUs.6('? #D$ "t complies with the responsibilities of a prospective or eligible bidder provided in the P+.and granted full power and authority to do.or 0oint venture? #7$ "t complies with the disclosure provision under Section *3 of the Act in relation to other provisions of R&A& .with the duly notari=ed SecretaryEs Certificate attesting to such fact.it9 to the contract to be bid8 within the relevant period as provided in the %idding DocumentsM e2(2 /n a Eoint 6enture8 an9 partner)sNM f2 The bidder)s audited financial statements8 showing8 among others8 the prospective bidder)s total and current assets and liabilities8 stamped FreceivedG b9 the %/R or its dul9 accredited and authori.ed institutions8 for the preceding calendar 9ear which should not be earlier than two &!' 9ears from the date of bid submissionM f2(2 /n a Eoint 6enture8 an9 partner)sNM g2 The bidder)s computation for Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&(& 9or purposes of determining the eligibility of bidders using the criteria stated in Section 4.if the prospective bidder is a corporation.Audit Sub4ob"ective • Audit Criteria barred from bidding by the GOP or any of its agenciesoffices.uirements is an authentic copy of the original.and all statements and information provided therein are true and correct? #.in the case of procurement of services& • 4.s? and #3$ "t complies with e@isting labor laws and standards.e@ecute and perform any and all acts necessary and:or to represent the prospective bidder in the bidding.partnershipcooperative.&7 of this "RR.only Audit Activities Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o Answer the prospective bidder of all its ongoing and completed government and private contracts8 including contracts awarded but not 9et started8 if an98 whether similar or not similar in nature and comple.

Audit Sub4ob"ective • Audit Criteria
the following documents shall be re;uired by the +AC- using the forms prescribed in the +idding ,ocuments-8 a$ Class BAC ,ocuments Aegal ,ocuments i$ Registration certificate from S/C- ,epartment of Trade and "ndustry #,T"$ for sole proprietorship- or C,A for cooperatives- or any proof of such registration as stated in the +idding ,ocuments& ii$ 5ayorEs permit issued by the city or municipality where the principal place of business of the prospective bidder is located& Technical ,ocuments iii$ Statement of the prospective bidder of all its ongoing and completed government and private contracts- including contracts awarded but not yet started- if any- whether similar or not similar in nature and comple@ity to the contract to be bidwithin the relevant period as provided in the +idding ,ocuments& The statement shall include all information re;uired in the P+,s prescribed by the GPP+& iv$ < 9inancial ,ocuments v$ The prospective bidderEs audited financial statements- showingamong others- the prospective bidderEs total and current assets and liabilities- stamped BreceivedC by the +"R or its duly accredited and authori=ed institutions- for the preceding calendar year which should not be earlier than two #4$ years from the date of bid submission& vi$ The prospective bidderEs computation for its %et 9inancial Contracting

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer its @et >inancial Contracting Capacit9 &@>CC' or a commitment from a Aniversal or Commercial %ank to e;tend a credit line in favor of the prospective bidder if awarded the contract to be bid &C$C'M g2(2 /n a Eoint 6enture8 an9 partner)sNM

h2 6alid "oint

venture Agreement &E6A'8 in case the "oint venture is alread9 in e;istence2 /n the absence of a E6A8 dul9 notari.ed statements from all the potential "oint venture partners stating that the9 will enter into and abide b9 the provisions of the E6A in the instance that the bid is successfulM

i2

The bid securit9 in the prescribedB &(' formM &!' amountM &#' validit9 periodM Technical specifications8 which ma9 includeB &(' production7 deliver9 scheduleM &!' manpower

"2

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (#1

Audit Sub4ob"ective • Audit Criteria
Capacity #%9CC$ or a commitment from a Universal or Commercial +an to e@tend a credit line in favor of the prospective bidder if awarded the contract to be bid #CAC$& b$ Class B+C ,ocument 2alid 0oint venture Agreement #G2A$- in case the 0oint venture is already in e@istence& "n the absence of a G2A- duly notari=ed statements from all the potential 0oint venture partners stating that they will enter into and abide by the provisions of the G2A in the instance that the bid is successful shall be included in the bid& 9ailure to enter into a 0oint venture in the event of a contract award shall be ground for the forfeiture of the bid security& /ach partner of the 0oint venture shall submit the legal eligibility documents& The submission of technical and financial eligibility documents by any of the 0oint venture partners constitutes compliance& • 43&(& All bids shall be accompanied by a bid securitypayable to the procuring entity concerned as a guarantee that the successful bidder shallwithin ten #(6$ calendar days or less- as indicated in the "nstructions to +idders- from receipt of the notice of awardenter into contract with the procuring entity and furnish the performance security re;uired in Section .' of this "RR- e@cept when Section .3&( of this "RR allows a longer period& 9ailure to enclose the re;uired bid security in the form and amount prescribed herein shall automatically dis;ualify the bid concerned& • 43&4 The bid security shall be in an amount e;ual to a percentage of the A+C in

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer reCuirementsM &#' after4sales service7parts8 if applicableM

k2 Sworn

statement b9 the prospective bidder or its dul9 authori.ed representative in the form prescribed b9 the PP% as to the followingB &(' /t is not FblacklistedG or barred from bidding b9 the OP or an9 of its agencies8 offices8 corporations8 or $ As8 including foreign government7 foreign or international financing institution whose blacklisting rules have been recogni.ed b9 the PP%M &!' :ach of the documents submitted in satisfaction of the bidding reCuirements is an authentic cop9 of the original8 complete8 and all statements and information provided therein are true and correctM &#' /t is authori.ing the ?ead of the Procuring :ntit9 or his dul9 authori.ed

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (#(

Audit Sub4ob"ective • Audit Criteria
accordance with the following schedule Oas amended b9 Anne; A of PP% Resolution @o2 104 !11+ dated September #18 !11+P8
Amount of +id Security #/;ual to Percentage of the A+C$ Two percent #4K$

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer representative7s to verif9 all the documents submittedM &*' The signator9 is the dul9 authori.ed representative of the prospective bidder8 and granted full power and authorit9 to do8 e;ecute and perform an9 and all acts necessar9 and7or to represent the prospective bidder in the bidding8 with the dul9 notari.ed Secretar9)s Certificate attesting to such fact8 if the prospective bidder is a corporation8 partnership8 cooperative8 or "oint ventureM &,' /t complies with the disclosure provision under Section *3 of the Act in relation to other provisions of R2A2 #1(+M &0' /t complies with the responsibilities of a prospective or eligible bidder provided in the P%DsM &3' /t complies with e;isting labor laws and standards8 in the case of procurement of

9orm of +id Security a$ Cash or cashierEs: managerEs chec issued by a Universal or Commercial +an & b$ +an draft: guarantee or irrevocable letter of credit issued by a Universal or Commercial +an 8 Provided- howeverthat it shall be confirmed or authentic1ated by a Universal or Commercial +an - if issued by a foreign ban & c$ Surety bond callable upon demand issued by a surety or insurance company duly certified by "nsurance Commission as authori=ed to issue such security& d$ Any combination of the foregoing&

9ive percent #7K$

Proportionate to share of form with respect to total amount of security

9or biddings conducted by AGUsthe prospective bidder may also submit bid securities in the form of cashierEs:managerEs chec ban draft:guarantee- or irrevocable letter of credit from other ban s certified by the +SP as authori=ed to issue such financial instrument& • 43&.& The bid security shall be denominated in Philippine Pesos and posted in favor of the procuring entity& • 4)&(& +ids and bid securities shall be valid for a reasonable period as determined by the

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (#!

Audit Sub4ob"ective • Audit Criteria
>ead of the Procuring /ntity concerned- which shall be indicated in the +idding ,ocuments- but in no case shall the period e@ceed one hundred twenty #(46$ calendar days from the date of the opening of bids& • Section *3& ,isclosure of Relations All bids shall be accompanied by a sworn affidavit of the bidder that it is not related to the >ead of the Procuring /ntity- members of the +AC- the T!G- and the +AC Secretariat- the head of the P5O or the end1user unit- and the pro0ect consultants- by consanguinity or affinity up to the third civil degree& 9ailure to comply with the aforementioned provision shall be a ground for the automatic dis;ualification of the bid in consonance with Section .6 of this "RR& 9or this reason- relation to the aforementioned persons within the third civil degree of consanguinity or affinity shall automatically dis;ualify the bidder from participating in the procurement of contracts of the procuring entity& On the part of the bidder- this provision shall apply to the following persons8 a$ "f the bidder is an individual or a sole proprietorship- to the bidder himself? b$ "f the bidder is a partnershipto all its officers and members? c$ "f the bidder is a corporationto all its officers- directorsand controlling stoc holders? and d$ "f the bidder is a 0oint venturethe provisions of items #a$#b$- or #c$ of this Section shall correspondingly apply to each of the members of the said 0oint venture- as may be appropriate&

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer servicesM

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Audit Sub4ob"ective • Audit Criteria
5, T% (eri$* i$ t#e +AC %pe'ed t#e sec%'d e'(e)%pes %$ t#e bidders "#%se $irst e'(e)%pes "ere rated passed %' t#e same da* a'd determi'ed c%mp)ia'ce "it# t#e re@&ireme'ts &si'1 a '%'discreti%'ar* Dpass;$ai)E criteri%'0 as stated i' t#e I'str&cti%'s t% +idders "mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8 • .6&4 "mmediately after determining compliance with the re;uirements in the first envelope- the +AC shall forthwith open the second bid envelope of each remaining eligible bidder whose first bid envelope was rated Bpassed&C The second envelope of each complying bidder shall be opened within the same day< "n case one or more of the re;uirements in the second envelope of a particular bid is missing- incomplete or patently insufficient- and:or if the submitted total bid price e@ceeds the A+C- the +AC shall rate the bid concerned as BfailedC& Only bids that are determined to contain all the bid re;uirements for both components shall be rated BpassedC and shall immediately be considered for evaluation and comparison&

Audit Activities
((2 >rom the Checklists and Minutes of the %id Opening and of the first envelope identif9 the bidders who were rated passed

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer Did the %AC open onl9 the second envelopes of the bidders whose first envelopes were rated passedM

(!2 >rom the Minutes of the %id Opening8 check if the second envelopes of the bidders who were rated passed was opened b9 the %AC on the same da9 when the first envelopes were opened2

Did the %AC open the second envelopes on the same da9 when the first envelopes were openedM

(#2 Compare the Checklist with the list of documents in the second envelope per %idding Documents2

-as the %AC)s Checklist in accordance with the list of documents in the second envelope per %idding DocumentM

• 47&.& The second envelope shall contain the financial information:documents as specified in the P+,s&

(*2 6alidate the entries &Fpass7failG' in the Checklist with the documents submitted b9 the bidders in the second envelope &for presence or absence'2

Did the %AC determine each bidder)s compliance with the documents reCuired to be submitted in the second envelopeB &a' >inancial %id >orm8 which includes a2( bid pricesM

Philippine +idding ,ocuments for the Procurement of Goods- .rd /dition #October 466'$ issued by the GPP+8 • "nstruction to +idders #"T+$

a2! bill of CuantitiesM a2# Price SchedulesM

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (#*

Audit Sub4ob"ective • Audit Criteria
(.& ,ocuments Comprising the +id8 9inancial Component (.&( Unless otherwise stated in the +,S- the financial component of the bid shall contain the following8 #a$ 9inancial +id 9orm- which includes bid prices and the bill of ;uantities and the applicable Price Schedules- in accordance with "T+ Clauses (7&( and (7&*? #b$ "f the bidder claims preference as a ,omestic +idder or ,omestic /ntity- a certification from the ,T"S/C- or C,A issued in accordance with "T+ Clause 43 1111

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer a2* total bid priceM &b' /f the bidder claims preference as a Domestic %idder or Domestic :ntit98 a certification from theB DT/M or S:CM or CDAM

(7&( The +idder shall complete the appropriate Price Schedules included herein- stating the unit prices- total price per itemthe total amount and the e@pected countries of origin of the Goods to be supplied under this Pro0ect& 1111 (7&* Prices indicated on the Price Schedule shall be entered separately in the following manner8 #a$ 9or Goods offered from within the Procuring /ntityEs country8 #i$ The price of the Goods ;uoted /L! #e@ wor s- e@ factory- e@ warehouse- e@ showroomor off1the1shelf- as applicable$- including all customs duties and sales and other ta@es already

(,2 >rom the 5inutes of +id Opening- Abstract of +ids as Read- and relevant +AC Resolutions check if bids higher than the A%C were automaticall9 disCualified2

Did the %AC automaticall9 disCualif9 bids higher than the A%CM

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (#,

Audit Sub4ob"ective • Audit Criteria paid or payable8
#i&($ on the components and raw material used in the manufacture

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer

or assembly of Goods ;uoted e@ wor s or e@ factory? or #i&4$ on the previously imported Goods of foreign origin ;uoted e@ warehouse- e@ showroomor off1the1shelf and any Procuring /ntity country sales and other ta@es which will be payable on the Goods if the contract is awarded& #ii$ The price for inland transportation- insuranceand other local costs incidental to delivery of the Goods to their final destination& #iii$ The price of other #incidental$ services- if any- listed in the +,S& #b$ 9or Goods offered from abroad8 #i$ Unless otherwise stated in the +,S- the price of the Goods shall be ;uoted ,elivered ,uty Paid #,,P$ with the place of destination in the Philippines as specified in the +,S& "n ;uoting the price- the +idder shall be free to use transportation through carriers registered in any eligible country& Similarly- the +idder may obtain insurance services from any eligible source

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (#0

Audit Sub4ob"ective • Audit Criteria country& #ii$ The price of other #incidental$ services- if any- are listed in the +,S& 1111
43& ,omestic Preference 43&( Unless otherwise stated in the +,S- the Procuring /ntity will grant a margin of preference for the purpose of comparison of bids in accordance with the following8 #a$ The preference shall be applied when #i$ the lowest 9oreign +id is lower than the lowest bid offered by a ,omestic +idder- or #ii$ the lowest bid offered by a non1 Philippine national is lower than the lowest bid offered by a ,omestic /ntity& #b$ 9or evaluation purposes- the lowest 9oreign +id or the bid offered by a non1 Philippine national shall be increased by fifteen percent #(7K$& #c$ "n the event that #i$ the lowest bid offered by a ,omestic /ntity does not e@ceed the lowest 9oreign +id as increased- or #ii$ the lowest bid offered by a non1Philippine national as increased- then the Procuring /ntity shall award the contract to the ,omestic +idder:/ntity at the amount of the lowest 9oreign +id or the bid offered by a non1 Philippine national- as the case may be& #d$ "f the ,omestic /ntity:+idder refuses to accept the award of

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer

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Audit Sub4ob"ective • Audit Criteria
contract at the amount of the 9oreign +id or bid offered by a non1 Philippine national within two #4$ calendar days from receipt of written advice from the +AC- the Procuring /ntity shall award to the bidder offering the 9oreign +id or the non1Philippine national- as the case may be- sub0ect to post1 ;ualification and submission of all the documentary re;uirements under these +idding ,ocuments& 43&4& A +idder may be granted preference as a ,omestic /ntity sub0ect to the certification from the ,T" #in case of sole proprietorships$S/C #in case of partnerships and corporations$- or C,A #in case of cooperatives$that the #a$ sole proprietorship is a citi=en of the Philippines or the partnership- corporationcooperative- or association is duly organi=ed under the laws of the Philippines with at least seventy five percent #37K$ of its interest or outstanding capital stoc belonging to citi=ens of the Philippines- #b$ habitually established in business and habitually engaged in the manufacture or sale of the merchandise covered by is bid- and #c$ the business has been in e@istence for at least five #7$ consecutive years prior to the advertisement and:or posting of the "nvitation to +id for this Pro0ect& 43&.& A +idder may be granted preference as a ,omestic +idder sub0ect to the certification from the ,T" that the +idder is offering unmanufactured articlesmaterials or supplies of the growth of production of the

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer

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Audit Sub4ob"ective • Audit Criteria
Philippines- or manufactured articles- materials- or supplies manufactured or to be manufactured in the Philippines substantially from articles- materials- or supplies of the growth- production- or manufacture- as the case may be- of the Philippines& 1111

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer

.(&(&The A+C shall be the upper limit or ceiling for acceptable bid prices& "f a bid price- as evaluated and calculated in accordance with this "RR- is higher than the A+C- the bidder submitting the same shall be automatically dis;ualified& There shall be no lower limit or floor on the amount of the award&

IN CA6E A +IDDER DETERMINED A6 DFAI9EDE FI9E6 A (2 Count the number of da9s -, T% (eri$* i$ t#e +idder >ROM the date of bid determi'ed as D$ai)edE opening or date of receipt of s&bmitted #is re@&est $%r the notice b9 the concerned rec%'siderati%' "it#i' 4 %idder TO the date of da*s &p%' "ritte' '%tice receipt b9 the %AC %r0 i$ prese't at t#e time Secretariat of the letter4 %$ bid %pe'i'10 &p%' reCuest for reconsideration (erba) '%ti$icati%' &dul9 stamped FreceivedG b9
Philippine +idding ,ocuments #P+,s$ for the Procurement of Goods- .rd /dition- #October 466'$ approved by the GPP+ per GPP+ Resolution %o& 6D1466' dated September .6- 466'8 • 4*&3& A +idder determined as BfailedC has three #.$ calendar days upon written notice or- if present at the time of bid opening- upon verbal notification within which to file a re;uest or motion for the %AC Secretariat' and compare with the #4da9 ma;imum2 !2 >rom the Minutes of the deliberation of the reCuest for reconsideration8 look for information and finding if the failure was due to the fault of the %idder8 and the if the %AC decided not to grant the reCuest2

REGUE6T FOR RECON6IDERATION
Did the %AC ensure that the %idder determined as FfailedG submitted their reCuests for reconsideration within # da9s upon written notice or8 if present at the time of bid opening8 upon verbal notificationM Did the %AC evaluate if the failure was due to the fault of the bidderM /f in the affirmative8 did the %AC decide not to grant the reCuestM

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Audit Sub4ob"ective • Audit Criteria
reconsideration with the +AC8 Provided- however- that the motion for reconsideration shall not be granted if it is established that the finding of failure is due to the fault of the +idder concerned8 Providedfurther- that the +AC shall decide on the re;uest for reconsideration within seven #3$ calendar days from receipt thereof& "f a failed bidder signifies his intent to file a re;uest for reconsideration- the +AC shall eep the bid envelopes of the said failed +idder unopened and:or duly sealed until such time that the re;uest for reconsideration or protest has been resolved1

Audit Activities
#2 >rom the Minutes of the deliberation of the reCuest for reconsideration8 look for information on the period within which the %AC decided on the reCuest for reconsideration J from the date of receipt of the reCuest for reconsideration up to the date of decision &%AC Resolution' on the decision reachedH and compare with the 34da9 ma;imum period2

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer Did the %AC decide on the reCuest for reconsideration within 3 da9s from receipt thereofM

IN8O98EMENT OF +AC O+6ER8ER6 IN THE +ID OPENING AND PRE9IMINARH E<AMINATION OF +ID60 INC9UDING E8A9UATION AND DECI6ION ON MOTION6 FOR RECON6IDERATION (2 >rom the Minutes of the Did the %AC choose -, T% (eri$* i$ t#e +AC %AC meeting on the the Observers i'(ited Obser(ers= selection of the Observer consideringB a, represe'ti'1 t#e COA0 from the FpoolG8 check for t#e speci$ic re)e(a't
c#amber.member %$ t#e P#i)ippi'e C#amber %$ C%mmerce a'd I'd&str*0 a'd a '%'.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b, t#at #a(e= b,-, A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b,2, '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b,4, c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB information on the %AC)s evaluation in regard toB • the selection of the organi.ation from which the Observer will be invitedH • knowledge8 e;perience or e;pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 a2 one representing the COAM

b2 One representing the specific relevant chamber4 member of the Philippine Chamber of Commerce and /ndustr9M c2 One representing a non4government organi.ationM d2 -ith knowledge8 e;perience or e;pertise in procurement or in the sub"ect matter of the contract to be bidM e2 -ith no actual or potential conflict of interest in the contract to be bidM

c, at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it*

"mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8

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Audit Sub4ob"ective • Audit Criteria

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer f2 Conformed with other relevant criteria determined b9 the %ACM

• Section (.& Observers (.&(& To enhance the transparency of the process- the +AC shall- in all stages of the procurement process- invite- in addition to the representative of the COA- at least two #4$ observers- who shall not have the right to vote- to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand- for e@ample8 i$ < ii$ 9or goods- a specific relevant chamber1member of the Philippine Chamber of Commerce and "ndustry& iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative ,evelopment Authority #C,A$- and should meet the following criteria8 a$ Hnowledge- e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.&.& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings, provided that the% have een dul% invited in 4riting1

!2 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement2

Did the %AC invite the Observers at least # da9s before the date of the start of activitiesM

2, T% (eri$* i$ t#e Pr%c&ri'1 E'tit*

#2 %ased on the %AC)s Minutes on the bid opening8 preliminar9 evaluation of

Did the Procuring :ntit9 consider the comments7

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Audit Sub4ob"ective • Audit Criteria c%'sidered t#e c%mme'ts;%bser(ati%'s %$ t#e Obser(ers "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8

Audit Activities
bids8 evaluation and decision on motions for reconsideration8 and the report of the Observers check whether a deliberation was made on the comments 7observations of the observers2

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer observations of the ObserversM

• (.&*& The observers shall have the following responsibilities8 a$ To prepare the report either 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntity- copy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server, then it is understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.&7& Observers shall be allowed access to the following documents upon their re;uest- sub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/ 6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals

E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (*!

Audit Sub4ob"ective • Audit Criteria -, T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. c%mp)ia'ce %' t#e= a, (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b, (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c, etc, a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8
(.&.& Observers shall be invited at least three #.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings, provided that the% have een dul% invited in 4riting1

Audit Activities
Anal9.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 @OT:B Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide&

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer Appropriate Audit -orking Papers

2, T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s

Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 @OT:B Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide&

Appropriate Audit -orking Papers

4, T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't
• COA Circular %o& 466'166D dated September (7- 466' re1 Prescribing the Use of the

Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management

Audit Observation Memorandum &AOM'8 if applicable

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (*#

Audit Sub4ob"ective • Audit Criteria
Rules and Regulations on Settlement of Accounts

Audit Activities

Suggested Audit -orking Paper Particular Audit =uestion Le @ s of the s o
Answer

I<, +ID E8A9UATION FOR THE PROCUREMENT OF GOOD6
The purpose of bid evaluation is to determine the $owest Calculated %id2 This is done b9 establishing the correct calculated prices of the bids and ranking in ascending order the total bid prices as so calculated2 The bid with the lowest price is the $C%2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC adopted the reCuired c%'diti%'s a'd pr%ced&res i' bid e(a)&ati%' !2 To verif9 if the %AC followed the reCuired time)i'e in the conduct of bid evaluation2 :ST:D -ORK/@

%2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R

Documents needed for the evaluationB (2 Minutes of %id OpeningH !2 Checklists for technical and financial envelopesH #2 Abstract of %ids as ReadH *2 %AC Resolution&s' on the preliminar9 e;amination of bidsH ,2 T- report on the bid evaluation for determination of the bidder with the $C%8 as reviewed b9 the %ACH 02 Abstract of %ids as CalculatedH 32 Minutes of the %AC meeting on bid evaluationH 52 Resolution of the %AC declaring the $C%H +2 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (12 /nvitation letters to the Observers with evidence of receipt2 Audit Sub4ob"ective • Audit Criteria -, T% (eri$* i$ t#e +AC c%'d&cted detai)ed e(a)&ati%' %$ a)) bidders "#%se $irst e'(e)%pe (tec#'ica) c%mp%'e't! a'd sec%'d e'(e)%pe ($i'a'cia) c%mp%'e't! "ere rated passed
"mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8

Audit Activities
(2 >rom the 5inutes of +id Opening- Chec lists for technical and financial envelopes8 Abstract of +ids as Readand +AC Resolutions identif9 the bidders who were rated FpassedG in all aspects and compare with the names of the bidders included in the bid evaluation &from the T- report8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid

Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o
Answer Did the %AC conduct detailed evaluation of all bidders who passed in the preliminar9 e;amination of bidsM

Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page (**

uantities.uired items in the +idding .es pa9able Co untr9 of OriginM =u De /te f2 g2 h2 i2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .where a re.6&4& <&Only bids that are determined to contain all the bid re.shall be considered non1 responsive and.bids not addressing or providing all of the re.where applicable.uired item is providedbut no price is indicatedthe same shall be considered as non1 responsive.Audit Sub4ob"ective • Audit Criteria Audit Activities evaluation8 and Resolution of the +AC declaring the $C%'2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer • .bill of .thusautomatically dis.uirements for both components shall be rated BpassedC and shall immediately be considered for evaluation and comparison& 2.December 2009 Page (*. .ocuments including.ualified& "n this regard.per itemM Ani t prices per item final destination and unit price of other incidental servicesM Sal es and other ta.per itemM Co st of local labor8 raw material8 and componentM Tot al price :<.report8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 and Resolution of the +AC declaring the $C%8 look for the information on the evaluation of completeness of financial component of the bids2 Did the %AC evaluate the completeness of the financial component of the bids B >or oods offered from within the PhilippinesB a2 mM b2 scriptionM c2 d2 antit9M e2 Ani t Price :<. T% (eri$* i$ t#e +AC c%'sidered c%mp)ete'ess a'd arit#metica) c%rrecti%'s %$ t#e $i'a'cia) c%mp%'e't %$ t#e bids i' t#e detai)ed e(a)&ati%' "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • .but specifying a B6C #=ero$ for the said item would mean that it is being offered for free to the Government? and !2 >rom the T.4&4&( F The +AC shall immediately conduct a detailed evaluation of all bids using non1discretionary criteria in considering the following8 #a$ Completeness of the bid F Unless the "nstruction to +idders specifically allow partial bids.

all bidders shall be re.including said ta@esshall be the basis for bid evaluation and comparison& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer per item if Contract is awardedM "2 Tot al price delivered >inal DestinationM >or oods Offered from AbroadB a2 b2 M c2 d2 e2 Countr9 of OriginM =uantit9M Anit price C/> port of entr9 &specified port' or C/> named place &specified border point or place of destination'M Total C/> or C/> price per itemM Anit price Delivered Dut9 Anpaid &DDA'M Anit price Delivered Dut9 Paid &DDP'M Total Price Delivered DDPM /temM Description f2 g2 h2 i2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (*0 .income ta@.local ta@es.value added ta@ #2AT$.ocuments OAS AM:@D:D %L PP% R:SO$AT/O@ @O2 104!11+ DAT:D S:PT #18 !11+P Any ad0ustment shall be calculated in monetary terms to determine the calculated prices& • .uired to include the cost of all ta@es.but not limited to.such as.and other fiscal levies and duties which shall be itemi=ed in the bid form and reflected in the detailed estimates& Such bids.4&4&4& The +AC shall evaluate all bids on an e.Audit Sub4ob"ective • Audit Criteria &b' Arithmetical corrections F Consider computational errors and omissions to enable proper comparison of all eligible bids& "t may also consider bid modifications it e@pressly allowed in the +idding .ual footing to ensure fair and competitive bid comparison& 9or this purpose.

Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC consider non4 responsive and8 thus8 automaticall9 disCualified bids not addressing or providing all of the reCuired items in the %idding DocumentsM Did the %AC consider non4 responsive and8 thus8 automaticall9 disCualified bids that did not indicate the price for a reCuired itemM #2 >rom the T.report with supporting documents and dul9 reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 and Resolution of the +AC declaring the $C%8 look for the information on the evaluation of arithmetical accurac9 of financial component of the bids2 Did the %AC evaluate the arithmetical accurac9 of financial components of bids in terms ofB a2 computational errorsM b2 omissionsM c2 other bid modification8 if allowed in the %idding DocumentsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (*3 .

F After all bids have been received.(&( F The A+C shall be the upper limit or ceiling for acceptable bid prices& "f a bid price.if applicable? #b$ Time.2 Check for completeness of the information contained in the Abstract of %ids as Calculated and if this was signed b9 the members of the %AC2 Did the %AC prepare the Abstract of %ids as calculated with the following informationB a2 @ame of the contractM b2 $ocationM c2 Time of bid openingM d2 Date of bid openingM e2 Place of bid openingM f2 @ames of bidders and their corresponding calculated bid prices g2 Calculated bid prices arranged from lowest to highestM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .is higher than the A+C.the +AC shall prepare the corresponding Abstract of +ids& <&The Abstract of +ids shall contain the following8 #a$ %ame of the contract and its location.December 2009 Page (*5 . T% (eri$* i$ t#e +AC dis@&a)i$ied bidders "#%se bids as ca)c&)ated "ere #i1#er t#a' t#e A+C "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 Audit Activities *2 Anal9.the bidder submitting the same shall be automatically dis.the amount of bid security and the name of the issuing entity& .date and place of bid opening? and #c$ %ames of bidders and their corresponding calculated bid prices arranged from lowest to highest.Audit Sub4ob"ective • Audit Criteria 7.and ran ed.openede@amined.4&.and Resolution of the +AC declaring the $C%8 in regard to disCualified bidders whose bids are higher than the A%C2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC disCualif9 bidders whose bids as calculated were higher than the A%CM • .evaluated. T% (eri$* i$ t#e +AC prepared t#e Abstract %$ +ids as Ca)c&)ated "it# t#e re@&ired i'$%rmati%' "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Section .as evaluated and calculated in accordance with this "RR.ualified& There shall be no lower limit or floor on the amount of the award& 3.e the Treport8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 Abstract of +ids as Calculated.

December 2009 Page (*+ .Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer h2 Amount of bid securit9M i2 @ame of the issuing entit9M "2 @ames and signatures of the Chairman and members of the %ACM 7.and other bid modificationswhich e@ceed the A+C shall be dis.e the Treport8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 Abstract of +ids as Calculated.as evaluated and corrected for computational errors.4&4&*& +ids shall then be ran ed in the ascending order of their total calculated bid pricesas evaluated and corrected for computational errorsand other bid modificationsto identify the Aowest Calculated +id& Total calculated bid prices. T% (eri$* i$ t#e +AC dec)ared ra'A .& After all bids have been receivedopened.e@aminedevaluated.4&.i' t#e A stract of Bids as Calculated as t#e 9%"est Ca)c&)ated +id (9C+! "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • .and Resolution of the +AC declaring the $C%8 in regard to disCualified bidders whose bids are higher than the A%C2 Did the %AC declare rank ( in the Abstract of +ids as Calculated as the $owest Calculated %id &$C%'M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the +AC shall prepare the corresponding Abstract of +ids& 02 Anal9.ualified& • .and ran ed.

uired& 52 >rom the Office Order creating the %AC8 determine the number of %AC members and identif9 the Chairman or 6ice4Chairman2 +2 >rom the 5inutes of +id /valuation.Audit Sub4ob"ective • Audit Criteria 5. T% (eri$* i$ t#e +AC c%mp)eted t#e e(a)&ati%' pr%cess "it#i' se(e' (:! ca)e'dar da*s $r%m t#e dead)i'e $%r receipt %$ pr%p%sa)s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • .December 2009 Page (.provided that the presence of the Chairman or 2ice1Chairman shall be re. T% (eri$* i$ t#e +AC '%ti$ied t#e bidder "it# t#e 9C+ "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • . Iuorum A ma0ority of the total +AC composition as designated by the >ead of the Procuring /ntity shall constitute a .uirements to the +AC8 < Audit Activities 32 Obtain a cop9 of the notice issued b9 the %AC to the bidder with the $C% and check for receipt b9 the bidder2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC notif9 the bidder with the $C%M :.uorum for the transaction of business. T% (eri$* i$ t#e +AC %bser(ed @&%r&m "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (4&.check for the presence of the Chairman or 6ice4 Chairman and if ma"orit9 of the %AC members or representatives7alternate s attended the proceedings2 -as there a Cuorum of the %ACM 2.the bidder shall submit the following documentary re.$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated +id or >ighest Rated +id.*&4& !ithin three #.1 .4&* The entire evaluation process shall be completed within seven #3$ calendar days from the deadline for receipt of proposals& (12 >rom the "nvitation to +id and %AC Resolution determine the number of da9s from the deadline for receipt of proposals and the completion of the bid evaluation2 Did the %AC complete the evaluation process within seven &3' calendar da9s from the %id Submission DeadlineM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB for information on the %AC)s evaluation in regard toB • the selection of the organi.ationM d2 -ith knowledge8 e.at least two #4$ observers.in addition to the representative of the COA.who shall not have the right to vote.pertise in procurement or in the sub"ect matter of the contract to be bidM e2 -ith no actual or potential conflict of interest in the contract to be bidM f2 Conformed with other relevant criteria determined b9 the %ACM c.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 a2 one representing the COAM b2 One representing the specific relevant chamber4 member of the Philippine Chamber of Commerce and /ndustr9M c2 One representing a non4government organi.December 2009 Page (. t#at #a(e= b. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.perience or e.to sit in its proceedings where8 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .4.& Observers (.2.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer IN8O98EMENT OF +AC O+6ER8ER6 IN THE +ID E8A9UATION INC9UDING E8A9UATION AND DECI6ION ON MOTION6 FOR RECON6IDERATION ((2 >rom the Minutes of Did the %AC . member %$ t#e P#i)ippi'e C#amber %$ C%mmerce a'd I'd&str*0 a'd a '%'. 1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b. T% (eri$* i$ t#e +AC the %AC meeting on the choose the i'(ited Obser(ers= selection of the Observer Observers a. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.perience or e.ation from which the Observer will be invitedH • knowledge8 e.( .in all stages of the procurement processinvite.&(& To enhance the transparency of the processthe +AC shall.-. represe'ti'1 t#e from the FpoolG8 check consideringB COA0 t#e speci$ic re)e(a't c#amber. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (.

& Observers shall be invited at least three #.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .for e@ample8 i$ < ii$ 9or goods.%bser(ati%'s %$ t#e Obser(ers "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (.! .provided that they have been duly invited in writing& Audit Activities (!2 >rom certified copies of the invitations to the Observers with evidence of receipt and the date of the start of bid evaluation8 compare the period with the #4da9 minimum reCuirement2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC invite the observers at least # da9s before the date of the bid evaluationM -0.&.A$and should meet the following criteria8 a$ Hnowledge.evelopment Authority #C.December 2009 Page (.Audit Sub4ob"ective • Audit Criteria a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.a specific relevant chamber1member of the Philippine Chamber of Commerce and "ndustry& iii$ < and b$ The other observer shall come from a non1 government organi=ation #%GO$& (. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* c%'sidered t#e c%mme'ts.&*& The observers shall (#2 %ased on the %AC)s Minutes on the bid evaluation and the report of the Observers check whether a deliberation was made on the comments 7observations of the observers2 Did the Procuring :ntit9 consider the comments7 observations of the ObserversM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullify the +AC proceedings.

&7& Observers shall be allowed access to the following documents upon their re.Audit Sub4ob"ective • Audit Criteria have the following responsibilities8 a$ To prepare the report either 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntity.# .December 2009 Page (.uest.sub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals1 Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . then it is understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.copy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server.

provided that the% have een dul% invited in 4riting1 Audit Activities Anal9. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'.466'8 (.e the instances of non4compliances to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Appropriate Audit -orking Papers 2.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.as amended on September 4.* . etc.December 2009 Page (. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. c%mp)ia'ce %' t#e= a.&. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.Audit Sub4ob"ective • Audit Criteria -.& Observers shall be invited at least three #. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.

GUA9IFICATION FOR THE PROCUREMENT OF GOOD6 The $owest Calculated %id &$C%' shall undergo post4Cualification in order to determine whether the bidder concerned complies with and is responsive to all the reCuirements and conditions as specified in the %idding Documents2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC adopted the reCuired c%'diti%'s a'd pr%ced&res in the conduct of post4Cualification !2 To verif9 if the %AC followed the reCuired time)i'e in the conduct of post4 Cualification :ST:D -ORK/@ %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R Documents needed for evaluationB (2 Minutes of the %AC meetings on post4CualificationH !2 Cop9 of the %AC Secretariat)s Receiving logbook indicating information on receipt of theB a' Ta.. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Audit Observation Memorandum &AOM'8 if applicable <. clearance8 b' $atest income and business ta. . PO6T.December 2009 Page (.Audit Sub4ob"ective • Audit Criteria 4. returns8 c' Certificate of Phil :PS RegistrationH and d' Other appropriate licenses and permits reCuired b9 law and stated in the %idding Documents8 submitted b9 the bidder with the $C%H #2 Cop9 each of the documents submitted b9 the bidder with the $C%H 02 %AC Resolution disCualif9ing the bidder and forfeiting its bid securit98 if the bidder with the $C% did not compl9 with the reCuired submissionsH 32 Documents evidencing the %AC)s validation of the veracit9 of the documents submitted and the information thereonH Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

clearance8 b' $atest income and business ta. T% (eri$* "#et#er t#e bidder "#%se bid "as dec)ared b* t#e +AC as 9C+ s&bmitted t#e $%))%"i'1 d%c&me'ts "it#i' 4 ca)e'dar da*s $r%m its receipt %$ t#e '%tice= a! Ta? c)eara'ceB b! 9atest i'c%me a'd b&si'ess ta? ret&r'sB c! Certi$icate %$ P#i)GEP6 Re1istrati%'B a'd d! Ot#er appr%priate )ice'ses a'd permits re@&ired b* )a" a'd stated i' t#e +iddi'1 D%c&me'ts.2 Reports of the %AC Observers2 Audit Sub4ob"ective • Audit Criteria -.2 conduct of anal9sis and concluding on the post4Cualification or disCualification of the bidder8 as the case ma9 beH (12 T. "mplementing Rules and Regulations #"RR$ of RA '()*. returnsM c2 Certificate of Phil :PS RegistrationM d2 Other Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .0 .52 Cop9 of the %AC Resolution disCualif9ing the bidder and forfeiting its bid securit98 if the %AC had a finding against the veracit9 of the documents7 information thereonH +2 T. ClearanceM b2 $atest income and business ta.as Audit Activities (2 >rom the records of the %AC8 check the date when the bidder with the $C% submitted theB a' Ta.report&s' on the evaluation of the post4disCualified bidder&s') reCuest for reconsideration8 as reviewed b9 the %ACH ((2 Minutes of the post4Cualification activitiesH (!2 %AC Resolution declaring the $CR%H (#2 Cop9 of the document approved b9 the ?OP: e.report on the post4Cualification conducted8 including supporting documents &e2g2 inspection reports'8 as reviewed b9 the %ACH evidencingB 32(2 validation of the authenticit9 of the documents submitted and information thereonH 32!2 validation of compliance of the goods offered with the reCuirements specified in the %idding Documents8 dul9 supported withB inspection reports on the goods offered and test resultsH 32#2 validation of the sufficienc9 of the bid securit9 as to t9pe8 amount8 form and wording8 validit9 periodH 32*2 validation of compliance with the financial reCuirements of the $C%H 32.tending the period for the post4Cualification process8 if applicableH (*2 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (.December 2009 Page (. returns8 c' Certificate of Phil :PS RegistrationH and d' Other appropriate licenses and permits reCuired b9 law and stated in the %idding Documents and compare this with the date of receipt of the notice that the bidder has the $C%2 !2 Ask for copies of the documents submitted from the %AC Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the bidder with the $C% submit within # calendar da9s from receipt of the notice as $C%B a2 Ta.

$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated +id or >ighest Rated +id.the bidder shall submit the following documentary re.uirements to the +AC8 a$ Ta@ clearance? b$ Aatest income and business ta@ returns? c$ Certificate of PhilG/PS Registration? and #2 /f based on the validation conducted in (2 and !2 above8 the submissions were found to be incomplete and7or not on time8 obtain a cop9 of the %AC Resolution disCualif9ing the bidder and forfeiting its bid securit92 *2 Obtain from the %AC Secretariat documents evidencing the %AC)s validation of the veracit9 of the documents submitted and the information thereon and check the results of such validation2 /f the %AC had a finding against the veracit9 of the documents7 information thereon8 obtain a cop9 of the %AC Resolution disCualif9ing the bidder and forfeiting its bid securit92 Did the %AC forfeit the bid securit9 and disCualif9 the bidder for award because of failure to submit the reCuired documents on timeM Did the %AC forfeit the bid securit9 and disCualif9 the bidder for award because of a finding against the veracit9 of the documents7 informationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .*&4& !ithin three #. $%r$eited t#e bid sec&rit* a'd dis@&a)i$ied t#e bidder $%r a"ard $%r reas%' t#atB a.uirements to the +AC8 a$ Ta@ clearance? b$ Aatest income and business ta@ returns? c$ Certificate of PhilG/PS Registration? and d$ Other appropriate licenses and permits re.2.-.Audit Sub4ob"ective • Audit Criteria amended on September 4.$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated +id or >ighest Rated +id. i'$%rmati%' "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • .3 .the bidder shall submit the following documentary re.466'8 • . t#ere "as a $i'di'1 a1ai'st t#e (eracit* %$ t#e d%c&me'ts.ocuments& Audit Activities Secretariat and compare them with the reCuirements2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer appropriate licenses and permits reCuired b9 law and stated in the %idding DocumentsM 2.December 2009 Page (.uired by law and stated in the +idding .as amended on September 4. T% (eri$* i$ t#e +AC= 2. determi'ed t#e (eracit* %$ t#e d%c&me'ts s&bmitted a'd 2.*&4&!ithin three #.%r b. t#e bidder $ai)ed t% s&bmit t#e re@&ired d%c&me'ts %' time0 a'd.

uirements and conditions as specified in the +idding . T% (eri$* i$ t#e +AC c%'d&cted p%st.ualification in order to determine whether the bidder concerned complies with and is responsive to all the re.ualify the bidder for award& Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer 4.ocuments& . T% (eri$* i$ t#e +AC (eri$ied0 (a)idated0 a'd ascertai'ed t#at t#e bidder "it# t#e 9C+ is= a.466'8 • . a d&)* )ice'sed Fi)ipi'% citiIe'.as amended on September 4.report8 as reviewed b9 the %AC8 evidencing validation of the authenticit9 of theB a' DT/ Registration Certificate8 dul9 supported withB • the DT/4certified cop9 of the Registration Certificate and • DT/ certificate that the sole proprietor is a >ilipino citi.uirements on time or a finding against the veracity of such shall be ground for the forfeiture of the bid security and dis. a Part'ers#ips d&)* %r1a'iIed &'der t#e )a"s %$ t#e P#i)ippi'es a'd %$ "#ic# at )east si?t* perce't (50N! %$ t#e i'terest be)%'1s t% citiIe's %$ t#e P#i)ippi'es0 %r c.2 Match the name of the bidder with the $C% as indicated in the %AC Resolution declaring the $C% with the name of the bidder indicated in the Post4 =ualification Report2 Did the %AC conduct post4 Cualification on the bidder with the $owest Calculated %id &$C%'M 3. @&a)i$icati%' %' t#e bidder "it# t#e 9%"est Ca)c&)ated +id (9C+! "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page (.Audit Sub4ob"ective • Audit Criteria d$ Other appropriate licenses and permits re.ocuments& 9ailure to submit the above re.5 . a C%rp%rati%' d&)* %r1a'iIed &'der t#e )a"s %$ t#e P#i)ippi'es0 a'd %$ "#ic# at )east si?t* perce't (50N! %$ t#e %&tsta'di'1 capita) st%cA be)%'1s t% citiIe's %$ t#e P#i)ippi'es0 %r 02 Secure from the %AC Secretariat the T.*&( The Aowest Calculated +id shall undergo post1 .uired by law and stated in the +idding .s%)e pr%priet%r0 %r b.en &based on the application for registration filed b9 the bidder with the DT/'8 if the bidder is a sole proprietorshipH Did the %AC validate the authenticit9 of the Registration documents submitted b9 the bidderM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

+ .December 2009 Page (.permits.& The post1.uly licensed 9ilipino Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .contractors. Audit Activities b2 S:C registration and of the 01Q >ilipino ownership8 dul9 supported withB • the S:C4 certified cop9 of the Registration Certificate8 if the bidder is a partnershipH c2 S:C registration and of the 01Q >ilipino ownership8 dul9 supported withB • S:C4certified cop9 of the Registration Certificate and • S:C4certified cop9 of the Articles of /ncorporation if the bidder is a corporation2 d2 CDA registration and of the 01Q >ilipino ownership8 dul9 supported withB • CDA4certified cop9 of the Registration Certificate and • CDA certificate that at least si.*&.&7&(& 9or the procurement of goods8 • 4. C%%perati(es d&)* %r1a'iIed &'der t#e )a"s %$ t#e P#i)ippi'es0 a'd %$ "#ic# at )east si?t* perce't (50N! be)%'1s t% citiIe's %$ t#e P#i)ippi'es0 %r e.&7&(&(& The following shall be eligible to participate in the bidding for the supply of goods8 a$ .and the fact that it is not included in any Bblac listC as provided in Section 47&4 of this "RR& 9or this purpose.Audit Sub4ob"ective • Audit Criteria d.as stated in the +idding .ocuments& These criteria shall consider. t#at Fi)ipi'% %"'ers#ip %r i'terest %$ t#e C%i't (e't&re c%'cer'ed s#a)) be at )east si?t* perce't (50N!.validate.but shall not be limited to.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.using non1discretionary criteria.and agreements submitted by the bidder.the following8 a$ Aegal Re.validate.and ascertain licensescertificates.ualification shall verify.and consultants& N • 4.ens of the Philippines if the bidder is a cooperative e2 Eoint 6enture individual partner)sB • DT/8 S:C8 or CDA registrations and • of the 01Q >ilipino ownership dul9 supported with the DT/48 S:C48 or Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • . /%i't 8e't&re .t9 percent &01Q' belongs to citi.uirements& To verify.the GPP+ shall maintain a consolidated file of all Bblac listedC suppliers.

however.ualification shall verify.report8 as reviewed b9 the %AC8 evidencing validation of the authenticit9 of the Ma9or)s Permit and whether it was issued b9 the cit9 or municipalit9 where the principal place of the business of the bidder is located8 dul9 supported withB • The $ A4certified cop9 of the Ma9or)s permit8 and Did the %AC validate the authenticit9 of the Ma9or)s Permit submitted b9 the bidderM Did the %AC verif98 validate8 and ascertain that the Ma9or)s Permit submitted b9 the bidder with the $C% was issued b9 the cit9 or Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and of which at least si@ty percent #D6K$ of the outstanding capital stoc belongs to citi=ens of the Philippines? d$ Cooperatives duly organi=ed under the laws of the Philippines.validate.December 2009 Page (01 .tent of >ilipino ownership2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC validate if the bidder is a >ilipino8 for a sole proprietorshipM Did the %AC validate if the Partnership or Corporation or Cooperative or Eoint 6enture is at least 01Q >ilipino ownedM 7.*&.i&e&.and 52 Secure from the %AC Secretariat the T.That 9ilipino ownership or interest of the 0oint venture concerned shall be at least si@ty percent #D6K$& 9or this purpose9ilipino ownership or interest shall be based on the contributions of each of the members of the 0oint venture as specified in their G2A& Audit Activities CDA4certified Certificate8 as the case ma9 be and DT/48 S:C48 or CDA4 certified documents evidencing ownership2 32 Compare the data7documents in 02 above with the documents submitted b9 the bidder to validate authenticit9 and e.Audit Sub4ob"ective • Audit Criteria citi=ens: sole proprietorships? b$ Partnerships duly organi=ed under the laws of the Philippines and of which at least si@ty percent #D6K$ of the interest belongs to citi=ens of the Philippines? c$ Corporations duly organi=ed under the laws of the Philippines.& The post1.a group of two #4$ or more persons:entities that intend to be 0ointly and severally responsible or liable for a particular contract8 Provided.and of which at least si@ty percent #D6K$ belongs to citi=ens of the Philippines? or e$ Persons: entities forming themselves into a 0oint venture. T% (eri$* i$ t#e +AC (eri$ied0 (a)idated0 a'd ascertai'ed t#at t#e Ma*%rFs Permit s&bmitted b* t#e bidder "it# t#e 9C+ "as iss&ed b* t#e cit* %r m&'icipa)it* "#ere t#e pri'cipa) p)ace %$ b&si'ess %$ t#e pr%specti(e bidder is )%cated "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • .

using non1discretionary criteria. a$ter sa)es a'd. 8eri$icati%' a'd.contractors.Audit Sub4ob"ective • Audit Criteria ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.December 2009 Page (0( . and agreements submitted by the bidder.but shall not be limited to.permits.uired by the +AC.ocuments& These criteria shall consider.%r i'specti%' a'd testi'1 %$ t#e 1%%ds.the GPP+ shall maintain a consolidated file of all Bblac listedC suppliers.and the fact that it is not included in any Bblac listC as provided in Section 47&4 of this "RR& 9or this purpose.and consultants& • Audit Activities DT/48 S:C48 or CDA4 certified Registration Certificate showing the bidder)s principal place of business Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer municipalit9 where the principal place of business of the prospective bidder is locatedM +2 Compare the data7documents in 52 above with the documents submitted b9 the bidder to validate authenticit9 and issuing entit9 is the cit97municipalit9 where the bidder)s principal place of business is located2 N • 4.validate.ocuments-8 a$ Class BAC .as stated in the +idding .pr%d&ct0 b.ocuments Aegal .%r Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&(& 9or purposes of determining the eligibility of bidders using the criteria stated in Section 4. T% (eri$* i$ t#e +AC (eri$ied0 (a)idated0 a'd ascertai'ed c%mp)ia'ce %$ t#e 1%%ds %$$ered "it# t#e re@&ireme'ts speci$ied i' t#e +iddi'1 D%c&me'ts0 i'c)&di'10 "#ere app)icab)e= a.uirements& To verify.&7 of this "RR.only the following documents shall be re.ocuments i$ 111 ii$ 5ayorEs permit issued by the city or municipality where the principal place of business of the prospective bidder is located& (12 Secure from the %AC Secretariat the T.report8 as reviewed b9 the %AC8 evidencing validation of the goods offered with the reCuirements specified in the %idding Documents8 dul9 supported withB Did the %AC verif98 validate8 and ascertain that the goods offered b9 the bidder with the $C% complied with the reCuirements specified in the %idding Documents in terms ofB 5.using the forms prescribed in the +idding .and ascertain licensescertificates.the following8 a$ Aegal Re.

and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.using non1discretionary ((2 >rom the Treport with supporting documents &e2g2 consolidated file of all FblacklistedG suppliers maintained b9 the PP%' dul9 reviewed b9 the %AC8 and the 5inutes of %AC meetings8 check for information showing the %AC)s validation if the bidder with the $C% is not FblacklistedG2 Did the %AC validate if the bidder with the $C% was not blacklistedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .validate.for the procurement of goods? < :.or consulting services offered with the re.as stated in the +idding .infrastructure pro0ects.*&.December 2009 Page (0! .where applicable8 i$< ii$ < iii$ 2erification and:or inspection and testing of the goods:product.ocumentsincluding.ualification shall verify.*&.validate.ocuments& These criteria shall consider.ualification shall verify.& The post1.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.uirements& To determine compliance of goods.as amended on September 4.using non1discretionary criteria.466'8 • .after sales and:or maintenance capabilities.but shall not be limited to.uirements specified in the +idding .Audit Sub4ob"ective • Audit Criteria mai'te'a'ce capabi)ities0 i' app)icab)e cases "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 Audit Activities a2 inspection reports on the goods offeredH b2 test results ((2 Compare the results of validation in (1 above with the reCuirements in the %idding Documents Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer a2 specifications of the itemM b2 maintenance and7or after4 sales capabilitiesM • . T% (eri$* i$ t#e +AC (a)idated i$ t#e bidder "it# t#e 9C+ is '%t Db)acA)istedE "mplementing Rules and Regulations #"RR$ of RA '()*.in applicable cases.uirements< b$ Technical Re.& The post1.the following8 a$ Aegal Re.

#ead %$ t#e Pr%Cect Ma'a1eme't O$$ice (PMO!0 $.and the fact that it is not included in an% 8 lac9list: as provided in Section !.and the +AC Secretariat.1! of this *++1 <or this purpose.and ascertain licenses.e. T% (eri$* i$ t#e +AC (a)idated t#e bidderFs c%mp)ia'ce "it# t#e D'% re)ati%'s#ipE pr%(isi%' emb%died i' 6ecti%' 3: %$ t#e Re(ised IRR %$ RA N%. -230 i.members of the +AC.the T!G.Audit Sub4ob"ective • Audit Criteria criteria.uirements& To verifyvalidate.the following8 a$ Aegal Re.certificates.by consanguinity or affinity up to (!2 >rom the Treport8 as reviewed b9 the %AC8 the Minutes of %AC meetings7 deliberations and %AC Resolution8 check for information showing the %AC)s validation thatB a2 the individual bidder in an individual or a sole proprietorship8 is not related to the persons mentioned in Sec2 *38 Amended /RR of RA +(5*H b2 all the officers and members of the bidder partnership are not related to the persons mentioned in Sec2 *38 Amended /RR of RA +(5*H c2 all the officers8 directors8 and controlling stockholders of the bidder corporation are not related to the persons mentioned in Sec2 *38 Amended /RR of RA +(5*2 Did the %AC validate the relationship of the bidder with theB a2 ?OP:M b2 members of the %ACM c2 members of the T.0 t#at t#e bidder is '%t re)ated b* c%'sa'1&i'it* %r a$$i'it* &p t% t#e 4rd ci(i) de1ree t% t#e= a.isclosure of Relations All bids shall be accompanied by a sworn affidavit of the bidder that it is not related to the >ead of the Procuring /ntity.as stated in the +idding .ocuments& These criteria shall consider.permitsand agreements submitted by the bidder. the &PPB shall maintain a consolidated file of all 8 lac9listed: suppliers. members %$ t#e T>G0 d.&ser &'it0 1.M d2 members of the %AC SecretariatM e2 head of the Pro"ect Management Office &PMO'M f2 head of the end4user unitM g2 pro"ect consultantsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . members %$ t#e +AC 6ecretariat0 e. contractors. members %$ t#e +AC0 c. #ead %$ t#e e'd.and the pro0ect consultants.December 2009 Page (0# .the head of the P5O or the end1user unit. and consultants1 Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer 2. HOPE0 b. pr%Cect c%'s&)ta'ts • Section *3& .but shall not be limited to.

ascertained the sufficienc9 of the bid securit92 (2 Did the %AC ascertain the sufficienc9 of the bid securit9 as toB a2 t9peM b2 amountM c2 form and wordM d2 validit9 periodM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .*&.Audit Sub4ob"ective • Audit Criteria the third civil degree& 9ailure to comply with the aforementioned provision shall be a ground for the automatic dis.validate. t*pe0 b.or #c$ of this Section shall correspondingly apply to each of the members of the said 0oint venture. "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • .using non1 (*2 ReCuest from the %AC Secretariat8 for the document evidencing that the T.ualification shall verify.6 of this "RR& 9or this reason.& The post1.to the bidder himself? b$ "f the bidder is a partnershipto all its officers and members? c$ "f the bidder is a corporationto all its officers. am%&'t0 c.this provision shall apply to the following persons8 a$ "f the bidder is an individual or a sole proprietorship. (a)idit* peri%d. $%rm a'd "%rdi'10 a'd d.relation to the aforementioned persons 4ithin the third civil degree of consanguinit% or affinit% shall automaticall% dis6ualif% the idder from participating in the procurement of contracts of the procuring entit%1 On the part of the bidder.December 2009 Page (0* .and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id.ualification of the bid in consonance with Section . T% (eri$* i$ t#e +AC (eri$ied0 (a)idated0 a'd ascertai'ed s&$$icie'c* %$ t#e bid sec&rit* as t%= a.directorsand controlling stoc holders? and d$ "f the bidder is a 0oint venturethe provisions of items #a$#b$.as may be appropriate& Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC automaticall9 disCualif9 the bidder found to be related within the #rd civil degree of consanguinit9 or affinit9 with the persons listed in Section *3 of the Revised /RR of RA +(5*M (#2 >rom the Treport8 as reviewed b9 the %AC8 the Minutes of %AC meetings7deliberations and %AC Resolution8 check for information showing the %AC)s decision7action in case of violation with the Fno relationshipG provision2 .

uirements <& b$ Technical Re.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id. T% (eri$* i$ t#e +AC Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer (eri$ied0 (a)idated0 a'd ascertai'ed i$ t#e Net Fi'a'cia) C%'tracti'1 Capacit* (NFCC! is at )east e@&a) t% t#e A+C %r t#e Credit 9i'e Certi$icate (C9C! i' $a(%r %$ t#e pr%specti(e bidder i$ a"arded t#e c%'tract is at )east -0N %$ t#e A+C "mplementing Rules and Regulations #"RR$ of RA '()*.2 >rom the Treport dul9 reviewed b9 the %AC with supporting documents from the appropriate authorities &e2g2 certified true cop9 of the financial statements with the /ncome Ta.uirements To verify.466'8 • .but shall not be limited to.uirements< b$ Technical Re.ocuments& These criteria shall consider.and validity period? -0.December 2009 Page (0.the following8 a$ Aegal Re.as stated in the +idding .ualification shall verify.using non1 discretionary criteria.uired CAC in the amount specified and over the period stipulated in the +idding .uirements < c$ 9inancial Re. .the following8 a$ Aegal Re.validate.& The post1.the re.as stated in the +idding .as amended on September 4.*&.ocuments. Return8 bank that issued the C$C'8 the Minutes of %AC meetings7deliberations and %AC Resolution8 check for information showing the bidder)sB a2 C$C must be at least eCual to (1Q of the A%C2 Or b2 @>CC must be at least eCual to the A%C Did the %AC verif98 validate8 and ascertain the financial reCuirements of the $C% as toB a2 C$C at least eCual to (1Q of the A%C2 Or b2 @>CC at least eCual to the A%CM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .but shall not be limited to.form and wording.validate and ascertain the bid price proposal of the bidder andwhenever applicable.or the bidderEs %9CC to ensure (.uirements& i$< ii$< iii$< iv$ Ascertainment of the sufficiency of the bid security as to typeamount.ocuments& These criteria shall consider.Audit Sub4ob"ective • Audit Criteria discretionary criteria.

T% (eri$* i$ t#e +AC dec)ared t#e p%st.8 as reviewed b9 the %AC8 check if the $C% passed all the criteria for post Cualification2 Did the $C% pass post4 CualificationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (00 .calculated as follows8 %9CC M N#Current assets minus current liabilities$ #H$O minus the value of all outstanding or uncompleted portions of the pro0ects under ongoing contracts.Audit Sub4ob"ective • Audit Criteria that the bidder can sustain the operating cash flow of the transaction& • 4.&7&(&*& "f the prospective bidder submits a computation of its %9CC.and 46 for a contract duration of more than two years& "f the prospective bidder submits a CAC. @&a)i$ied 9C+ as t#e 9%"est Ca)c&)ated Resp%'si(e +id (9CR+! "mplementing Rules and (02 >rom the post Cualification report of the T.including awarded contracts yet to be started coinciding with the contract to be bid& !here8 H M (6 for a contract duration of one year or less(7 for a contract duration of more than one year up to two years.the prospective bidder may also submit CAC from other ban s certified by the +SP as authori=ed to issue such financial instrument& Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer --.the %9CC must be at least e.ual to ten percent #(6K$ of the A+C to be bid& "f the CAC is issued by a foreign Universal or Commercial +an .ual to the A+C to be bid.the CAC must be at least e.it shall be confirmed or authenticated by a Universal or Commercial +an & 9or biddings conducted by AGUs.

IN CA6E OF PO6T.*&*& "f the +AC determines that the bidder with the Aowest Calculated +id passes all the criteria for post1 .or in the case of .December 2009 Page (03 .whichever is lower.submitted bid price or its negotiated pricewhichever is lower& Audit Activities (32 Match the name of the $CR% as approved b9 the ?OP: with the name of bidder as indicated in the %AC resolution recommending $CR%2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC declare the $C% as the $owest Calculated Responsive %id &$CR%'M /f Hes8 proceed toB A>ARD OF CONTRACT2 /f N%8 proceed to the A&dit 6&b.it shall declare the said bid as the Aowest Calculated Responsive +idand recommend to the >ead of the Procuring /ntity the award of contract to the said bidder at its submitted bid price or its calculated bid price.uality1based evaluation procedure. ObCecti(es i' case %$ P%st.DI6GUA9IFICATION OF THE +IDDER >ITH THE 9O>E6T CA9CU9ATED +ID (9C+! – FOR THE PROCUREMENT OF GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . dis@&a)i$icati %' %$ t#e bidder "it# t#e 9C+.Audit Sub4ob"ective • Audit Criteria Regulations #"RR$ of RA '()*.as amended on September 4.466'8 • .ualification.

ualification process on the bidder with the second Aowest Calculated +id& !2 $ook for the Treport on the post4 Cualification of the second rank bidder as reviewed b9 the %AC2 #2 Repeat the audit activities of sub4 ob"ective nos2* to (1 above2 *2 Anal9.ualification.the +AC shall initiate and complete the same post1 .8 as reviewed b9 the %AC8 for the $C% and the second rank bidder to check whether the Tadopted the same process of verif9ing8 validating and ascertaining all Did the %AC conduct and complete the post4Cualification of the second rank bidderM Did the Tadopt the same process of verif9ing8 validating and ascertaining all statements made and documents submitted b9 the $C% and the second rank bidderM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • .however.and notwithstanding any pending re.dis@&a)i$icati%' "it# t#e 1r%&'ds $%r it.*&D& "mmediately after the +AC has notified the first bidder of its post1 dis.Audit Sub4ob"ective • Audit Criteria -.as amended on September 4.uest for reconsideration thereof.ualification process on the bidder with the second Aowest Calculated +id& <& Audit Activities (2 >rom the records of the %AC Secretariat8 check for information on the date of receipt b9 the post4 disCualified bidder of the notice and for the grounds for disCualification indicated thereon2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC immediatel9 notif9 the $C% of the post4 disCualificationM Did the %AC indicate in the notice the grounds for post4 disCualificationM 2. dis@&a)i$icati%' %$ t#e 9C+0 immediate)* '%ti$ied t#e 9C+ i' "riti'1 %$ t#e p%st.ualification.*&7& "f.ualification and grounds for it& • .it shall immediately notify the said bidder in writing of its post1 dis. @&a)i$icati%' pr%cess ad%pted $%r t#e 9C+ "mplementing Rules and Regulations #"RR$ of RA '()*.the +AC determines that the bidder with the Aowest Calculated +id fails the criteria for post1 .466'8 • .e the post4 Cualification reports of the T.December 2009 Page (05 . "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* i$ t#e +AC0 i' case %$ p%st.@&a)i$icati%' %$ t#e sec%'d ra'A bidder &si'1 t#e same p%st.as amended on September 4.*&D& < the +AC shall initiate and complete the same post1 . T% (eri$* i$ t#e +AC c%'d&cted a'd c%mp)eted t#e p%st.

@&a)i$ied second/ran9 bidder as t#e 9CR+ a$ter a re@&est $%r rec%'siderati%' %$ t#e 9C+ ($irst. ObCecti(es in case of P%st. ra'A0 a t#e case ma* be! #as bee' de'ied /f N%0 proceed to the A&dit 6&b. 4.@&a)i$ied second/ran9 bidder as t#e 9CR+ a$ter a re@&est $%r rec%'siderati %' %$ t#e 9C+ ($irst.ra'A! #as bee' de'ied 02 >rom the Minutes of the %AC meeting8 anal9.2 >rom the post Cualification report of the T.e if the %AC declared the post4 Cualified second1ran bidder as the $CR% after a reCuest for reconsideration of the $C% &first4rank' has been denied2 Did the %AC declare the post4 Cualified second1 ran bidder as the $CR% after a reCuest for reconsideration of the $C% &first4 rank' has been deniedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ra'A0 sec%'d.i'. T% (eri$* i$ t#e +AC dec)ared t#e p%st.December 2009 Page (0+ .t4rank bidder8 the %AC is to repeat the post4 Cualification process until the $CR% is declared for award2 The related audit activities are likewise to be repeated2 /f Hes8 proceed to the Audit Sub4ob"ective to (eri$* i$ t#e +AC dec)ared t#e p%st.Audit Sub4ob"ective • Audit Criteria Audit Activities statements made and documents submitted b9 the $C% and the second rank bidder2 . dis@&a)i$icati %' %$ t#e bidder "it# t#e 9C+.ra'A0 %r 'e?t.8 as reviewed b9 the %AC8 check if the second rank bidder passed the post Cualification2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the second rank bidder pass the post4 CualificationM @OT:B >or each post4 disCualification of the ne.

imumM • .the second bidder shall be post1 .6$ calendar days& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uest for reconsideration of the first bidder has been denied.the +AC shall initiate and complete the same post1 .tension within the #14calendar da9 ma.ualified as the bidder with the Aowest Calculated Responsive +id& Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer 32 Match the name of the $CR% as approved b9 the ?OP: with the name of bidder as indicated in the %AC resolution recommending the $CR%2 3.ualification.December 2009 Page (31 .tension approved b9 the ?OP:M /f the %AC completed the post4Cualification in more than seven &3' calendar da9s8 was the e. T% (eri$* i$ t#e +AC c%mp)eted t#e p%st.466'8 • .but in no case shall the aggregate period e@ceed thirty #.ualification.ualification period may be e@tended by the >ead of the Procuring /ntity.and notwithstanding any pending re.*&)& The post1. @&a)i$icati%' pr%cess i' '%t m%re t#a' se(e' (:! ca)e'dar da*s $r%m t#e determi'ati%' %$ t#e 9C+ %r i$ e?te'ded0 s&c# e?te'si%' "as appr%(ed b* t#e HOPE a'd '%t e?ceedi'1 40 ca)e'dar da*s 52 Compute the number of da9s from the %AC Resolution declaring the $C% and the %AC Resolution declaring the $CR%8 and compare this with the 34calenda94da9 reCuirement2 +2 /f the %AC completed the post4 Cualification in more than seven &3' calendar da9s8 secure a cop9 of the document approved b9 the ?OP: e.Audit Sub4ob"ective • Audit Criteria "mplementing Rules and Regulations #"RR$ of RA '()*.the post1.ualification process on the bidder with the second Aowest Calculated +id& "f the second bidder passes the post1.and provided that the re.uest for reconsideration thereof.tending the period for the post4 Cualification process2 Did the %AC complete the post4Cualification process in not more than seven &3' calendar da9s from the determination of the $C%M /f the %AC completed the post4Cualification in more than seven &3' calendar da9s8 was the e.as amended on September 4.ualification process shall be completed in not more than seven #3$ calendar days from the determination of the Aowest Calculated +id& "n e@ceptional cases.*&D& "mmediately after the +AC has notified the first bidder of its post1 dis.

perience or e.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC choose the Observers consideringB a2one representing the COAM b2One representing the specific relevant chamber4 member of the Philippine Chamber of Commerce and /ndustr9M c2 One representing a non4 government organi.who shall not have the right to vote.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.for e@ample8 i$ < ii$ 9or goods.December 2009 Page (3( . '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.a specific relevant chamber1member of the Philippine Chamber of Commerce and "ndustry& a$ Hnowledge. T% (eri$* i$ t#e +AC i'(ited Obser(ers= a.in addition to the representative of the COA.&(& To enhance the transparency of the process.4.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential ((2 >rom certified copies of the invitations to the Observers with evidence of receipt8 Did the %AC invite the observers at least # da9s before the date Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . at )east 4 ca)e'dar da*s pri%r t% t#e P%st. @&a)i$icati%' "mplementing Rules and Regulations #"RR$ of RA '()*.at least two #4$ observers.perience or e.ation from which the Observer will be invitedH • knowledge8 e.-.member %$ t#e P#i)ippi'e C#amber %$ C%mmerce a'd I'd&str*0 a'd a '%'.in all stages of the procurement process.the +AC shall.2. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB c.466'8 • Section (. t#at #a(e= b.pertise in procurement or in the sub"ect matter of the contract to be bidM e2-ith no actual or potential conflict of interest in the contract to be bidM f2 Conformed with other relevant criteria determined b9 the %ACM c#amber.& Observers (. represe'ti'1 t#e COA0 t#e speci$ic re)e(a't Audit Activities (12 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.ationM d2-ith knowledge8 e.Audit Sub4ob"ective • Audit Criteria 7.as amended on September 4.invite.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b.

etc. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.& Observers shall be invited at least three #. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (3! . (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. provided that the% have een dul% invited in 4riting1 and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. provided that the% have een dul% invited in 4riting1 Audit Activities compare the date of receipt with the #4da9 minimum reCuirement2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer of the post4 CualificationM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.&.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (. establish the effects c%mp)ia'ce %' t#e= a. T% (eri$* t#e e$$ects %$ of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.e the instances -.Audit Sub4ob"ective • Audit Criteria conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.&.

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.December 2009 Page (3# .

<I.isting laws8 rules and7or the procuring entit9 concerned2 #2 @otice of Award signed b9 the ?OP:8 with date of release to and receipt b9 the winning bidderH *2 Cop9 of the bid securit9 of the winning bidder stamped received b9 the %AC SecretariatH . A>ARD OF CONTRACT FOR THE PROCUREMENT OF GOOD6 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the conditions and procedures for the award of contract were adhered to b9 the procuring entit9 !2 To verif9 if the award was made within the prescribed period #2 To verif9 if the conditions7reCuirements8 procedures and timelines for entering into and approval of the contract were adhered to b9 the procuring entit9 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for the evaluationB (2 Minutes of the %AC meeting on post4CualificationH !2 %AC Resolution declaring the $CR% and recommending award8 approved b9 the ?OP: with the following supporting documentsB a2 Abstract of %ids8 b2 Dul9 approved deliver9 schedule and Cost :stimates8 c2 Document issued b9 appropriate entit9 authori.December 2009 Page (3* .ing the procuring entit9 to incur obligations for a specified amount8 d2 Other pertinent documents reCuired b9 e.2 Cop9 of the portions of the receiving records of the %AC8 with information on the date of submission of the Eoint 6enture Agreement &E6A'8 if the winning bidder is a Eoint 6entureH and the date of posting of the performance securit9H 02 Cop9 of the performance securit9 posted b9 the winning bidderH 32 Cop9 of the complete set of contract documents dul9 signed and approved b9 higher authoritiesH 52 Cop9 of the polic9 and schedule of approving authoritiesH +2 :vidences of postings at the Phil :PS and the procuring entit9)s websitesH (12 :vidences of postings at the conspicuous place at the premises of the procuring entit9H ((2 Cop9 of the document with the approval of the contract b9 higher authoritiesH (!2 Cop9 of the document with the ?OP:)s disapproval of the award and the "ustifications thereto8 dul9 received b9 the %ACH (#2 /n case of disapproval of the %AC)s recommendation for award8 cop9 of the document with the ?OP:)s instructions on the steps to be adopted b9 the %AC2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

uired by e@isting lawsrules and: or the procuring entity concerned& Audit Activities (2 Compare the $CR% determined b9 the %AC in its deliberations &per Minutes of the %AC meeting' with the $CR% recommended for award in the +AC Resolution& 2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer Did the %AC recommend to the ?OP: the award of contract to the bidder with $CR%M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .(*2 Cop9 of the Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (.uly approved program of wor or delivery scheduleand Cost /stimates? d$ .December 2009 Page (3.as amended on September 4466'8 • . .the +AC shall submit the following supporting documents to the >ead of the Procuring /ntity8 a$ Resolution of the +AC recommending award? b$ Abstract of +ids? c$ .ocument issued by appropriate entity authori=ing the procuring entity to incur obligations for a specified amount? and e$ Other pertinent documents re. T% (eri$* i$ t#e +AC rec%mme'ded t#e bidder "it# t#e 9%"est Ca)c&)ated Resp%'si(e +id (9CR+! %r 6i'1)e Ca)c&)ated Resp%'si(e +id (6CR+!0 i$ )%'e0 t% t#e HOPE $%r a"ard "mplementing Rules and Regulations #"RR$ of RA '()*.3&(&(& The +AC shall recommend to the >ead of the Procuring /ntity the award of contract to the bidder with the Aowest Calculated Responsive +id or the Single Calculated Responsive +id after the post .ualification process has been completed& To facilitate the approval of the award.2 Cop9 of the reports of the %AC Observers2 Audit Sub4ob"ective • Audit Criteria -.

December 2009 Page (30 .ing the procuring entit9 to incur obligations for a specified amountM e2 Other pertinent documents reCuired b9 e. %r t#e pr%c&ri'1 e'tit* c%'cer'ed "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria 2.ualification process has been completed& To facilitate the approval of the award.uired by e@isting laws.3&(&(& The +AC shall recommend to the >ead of the Procuring /ntity the award of contract to the bidder with the Aowest Calculated Responsive +id or the Single Calculated Responsive +id after the post . Abstract %$ +idsB c. D%c&me't iss&ed b* appr%priate e'tit* a&t#%riIi'1 t#e pr%c&ri'1 e'tit* t% i'c&r %b)i1ati%'s $%r a speci$ied am%&'tB a'd e. T% (eri$* i$ t#e +AC s&bmitted t#e $%))%"i'1 d%c&me'ts t% t#e HOPE a.rules and: or Audit Activities !2 >rom the %AC Chairman)s letter for the ?OP: submitting the results and the documents pertaining to the recommendation8 dul9 received b9 the Office of the ?OP:8 look for information on the documents submitted2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer Did the %AC submit the following documents to the ?OP: with the recommendation for awardB a2 Resolution of the %AC recommendi ng awardM b2 Abstract of %idsM c2 Dul9 approved deliver9 schedule and Cost :stimatesM d2 Document issued b9 appropriate entit9 authori. Res%)&ti%' %$ t#e +AC rec%mme'di'1 a"ardB b.isting laws8 rules and7or the procuring entit9 concernedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4466'8 • . D&)* appr%(ed de)i(er* sc#ed&)e a'd C%st EstimatesB d. Ot#er perti'e't d%c&me'ts re@&ired b* e?isti'1 )a"s0 r&)es a'd.uly approved program of wor or delivery scheduleand Cost /stimates? d$ .ocument issued by appropriate entity authori=ing the procuring entity to incur obligations for a specified amount? and e$ Other pertinent documents re.the +AC shall submit the following supporting documents to the >ead of the Procuring /ntity8 a$ Resolution of the +AC recommending award? b$ Abstract of +ids? c$ .

3&(&.GFIs! "mplementing Rules and Regulations #"RR$ of RA '()*.3&(&4& !ithin a period not e@ceeding seven #3$ calendar days from the date of receipt of the recommendation of the +ACthe >ead of the Procuring /ntity shall approve or disapprove the said recommendation& *2 Compare the name of the $CR% recommended b9 the %AC and approved b9 the ?OP: &per %AC Resolution declaring the $CR% and recommending award8 approved b9 the ?OP:' with the name of the bidder4awardee in the @otice of Award2 .2 Compare the date of release of the @otice of Award with the date of approval of the %AC Resolution recommending the award2 -as the @otice of Award immediatel9 issued to the bidder with the $owest Calculated Responsive %id as recommended b9 the %AC and approved b9 the ?OP:M 3.December 2009 Page (33 .4da9 period2 Did the ?OP: approve the %AC recommendation for award within the 34calendar4 da9 period &or (.& "n case of approvalthe >ead of the Procuring /ntity shall immediately issue the %otice of Award to the bidder with the Aowest Calculated Responsive +id& "n the event the >ead of the Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4466'8 • .as amended on September 4466'8 #2 Determine the number of da9s from the date of receipt b9 the ?OP: of the recommendation for award to the date of approval and compare with the 34da9 or (. I' case %$ appr%(a)0 t% (eri$* i$ t#e N%tice %$ A"ard "as immediate)* iss&ed t% t#e bidder "it# t#e 9%"est Ca)c&)ated Resp%'si(e +id as rec%mme'ded b* t#e +AC a'd appr%(ed b* t#e HOPE "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* i$ t#e HOPE0 %r #is.#er d&)* a&t#%riIed %$$icia)0 appr%(ed t#e 9CR+ rec%mme'ded b* t#e +AC $%r a"ard "it#i' : ca)e'dar da*s $r%m t#e date %$ receipt %$ t#e rec%mme'dati%' $r%m t#e +AC (-7 ca)e'dar da*s $%r GOCCs.4calendar4da9 period for OCCs7 >/s'M • .Audit Sub4ob"ective • Audit Criteria the procuring entity concerned& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer 4.

"ebsite %$ t#e pr%c&ri'1 e'tit*0 a'd c. calendar da9 period &same period provided for the ?OP: to approve7 disapprove the %AC)s Resolution'M 5.a copy furnished the +AC& Audit Activities 02 Compare the date of the release of the @otice of Award with the e. a'* c%'spic&%&s p)ace i' t#e premises %$ t#e +2 Access the Phil :PS website and the website of the procuring entit98 and conduct inspection of the area where the @otice of Award is to be posted on the #rd da9 from the issuance of the @otice of Award to the winning bidder2 Did the %AC post the @otice of AwardB a2 within # da9s from its issuance at the Phil :PS websiteM b2 within # da9s Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .3&(&4& !ithin a period not e@ceeding seven #3$ calendar days from the date of receipt of the recommendation of the +AC.pir9 date of the bid validit9 period2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer -as the award made within the bid validit9 period of the bid securit9M • .4da9 reCuirement2 52 Also compare the names of the losing bidders notified with those appearing in the Abstract of %ids as Read2 "mplementing Rules and Regulations #"RR$ of RA '()*. disappr%(e t#e +ACFs Res%)&ti%'! 32 >rom the notices to the losing bidders8 look for the date of its receipt and compare with the 34da9 or (.and 0ustifiable grounds to be e@pressed in writing.3&(&7& Contract award shall be made within the bid validity period provided in Section 4) of this "RR • Anne@ BCC F Period of Action on Procurement Activities 7.the >ead of the Procuring /ntity shall approve or disapprove the said recommendation& < "n the case of GOCCs and G9"s.such disapproval shall be based only on valid.the period provided herein shall be fifteen #(7$ calendar days& !ithin the same period provided herein the +AC shall notify all losing bidders of its decision& Did the %AC notif9 all the losing bidders within the 3 calendar da9 or (.as amended on September 4466'8 • . P#i)GEP6 "ebsite0 b. T% (eri$* i$ t#e +AC p%sted t#e N%tice %$ A"ard "it#i' 4 da*s $r%m its iss&a'ce at t#e= a.December 2009 Page (35 .Audit Sub4ob"ective • Audit Criteria Procuring /ntity shall disapprove such recommendation.reasonable. T% (eri$* i$ t#e +AC '%ti$ied a)) t#e )%si'1 bidders "it#i' t#e : ca)e'dar da* peri%d (same peri%d pr%(ided $%r t#e HOPE t% appr%(e.

"mplementing Rules and Regulations #"RR$ of RA '()*.3&(&D& The +AC.within three #.through the Secretariat.as amended on September 4.$ calendar days from its issuance.the %otice of Award in the PhilG/PS.if any.and any conspicuous place in the premises of the procuring entity& :.December 2009 Page (3+ . T% (eri$* i$ t#e pr%c&ri'1 e'tit* %bser(ed t#e $%))%"i'1 c%'diti%'s $%r t#e e?ec&ti%' %$ t#e c%'tract= a! 6&bmissi%' %$ (a)id C%i't (e't&re a1reeme't0 i$ app)icab)e0 "it#i' -0 da*s $r%m receipt %$ t#e N%tice %$ A"ard b* t#e "i''i'1 /%i't 8e't&re bidder0 b! P%sti'1 %$ per$%rma'ce sec&rit* "it#i' te' (-0! ca)e'dar da*s $r%m receipt b* t#e "i''i'1 bidder %$ t#e N%tice %$ A"ard L pri%r t% t#e si1'i'1 %$ t#e c%'tract i' t#e re@&ired am%&'t0 c&rre'c*0 $%rm0 iss&i'1 e'tit*0 a'd (a)id &'ti) t#e iss&a'ce b* t#e pr%c&ri'1 e'tit* %$ t#e $i'a) certi$icate %$ accepta'ce0 c! 6i1'i'1 %$ t#e c%'tract "it#i' t#e same te' (-0! da* peri%d pr%(ided t#at a)) t#e d%c&me'tar* re@&ireme'ts are (12 >rom the receiving records of the %AC8 compare the date of submission of the Eoint 6enture Agreement &E6A' with the reCuired (1 da9s from receipt of the @otice of Award2 ((2 >rom the receiving records of the %AC8 compare the date of posting of the performance securit9 with the reCuired (1 da9s from receipt of the @otice of AwardH also compare with the date of the signing of the contract2 (!2 Compare the amount8 currenc98 form8 issuing entit98 and validit9 period of the performance securit9 posted b9 the winning bidder with the reCuirements of Sec #+2! of the Revised /RR of RA +(5*2 Did the bidder submit the E6A within ten &(1' calendar da9s from receipt of the notice of awardM -as the performance securit9 posted within ten &(1' calendar da9s from receipt b9 the winning bidder of the @otice of Award D prior to the signing of the contractM -as the performance securit9 posted in theB a2 right amountM b2 right currenc9M c2 right formM (#2 Compare the date of signing of the contract with the reCuired (14da9 period from receipt of the @otice of Award2 d2 right issuing entit9M e2 right validit9 periodM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .shall post.Audit Sub4ob"ective • Audit Criteria pr%c&ri'1 e'tit*.the website of the procuring entity.466'8 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer from its issuance at the website of the procuring entit9M And c2 within # da9s from its issuance at an9 conspicuous place in the premises of the procuring entit9M • .

if re.'&(& To guarantee the faithful performance by the winning bidder of its obligations under the contract in accordance with the +idding .2 Compare the date of approval of the contract b9 higher authorit9 with the (.' of this "RR? c$Signing of the contract as provided in Section .uired.December 2009 Page (51 .3&.ual to a percentage of the total contract price in Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . da9s for OCCs'2 • .ed signator9 as reCuired b9 relevant regulations7policies and as shown b9 a cop9 of a valid appointment or office order2 (.Audit Sub4ob"ective • Audit Criteria c%mp)ied "it#0 d! Appr%(a) b* #i1#er a&t#%rit*0 i$ re@&ired0 "it#i' -7 da*s $r%m receipt (27 da*s $%r GOCCs! "mplementing Rules and Regulations #"RR$ of RA '()*.'& Performance Security .ocuments. calendar da9s for OCCs'M (*2 Compare the signator9 &approval' in the contract with the authori.award of contract shall be sub0ect to the following conditions8 a$ Submission of the following documents within the prescribed period8 i) 2alid G2A.as the case may be? or ii$ <&& b$ Posting of performance security in accordance with Section .3&4 of this "RR? d$ Approval by higher authority.4da94period from receipt &!.as amended on September 4466'8 • . of this "RR& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer -as the contract signed within (1 calendar da9s from receipt of the @otice of Award b9 the winning bidderM /f further approval b9 higher authorit9 is reCuired8 was the contract approved b9 appropriate approving authorit9 or his7her dul9 authori.ed representativeM -as the contract approved b9 higher authorit9 within (.if applicablewithin ten #(6$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated Responsive +id.'&4& The performance security shall be in an amount e. calendar da9sM &!.it shall post a performance security prior to the signing of the contract& .as provided in Section .3&(&*& %otwithstanding the issuance of the %otice of Award.

that it shall be confirmed or authenticated by a Universal or Commercial +an .if issued by a foreign ban & c$ Surety bond callable upon demand issued by a surety or insurance company duly certified by the "nsurance Commission as authori=ed to issue such security& d$ Any combination of the foregoing& Two percent #4K$ 9ive percent #7K$ Proportionate to share of form with respect to total amount of security • .December 2009 Page (5( .3&4& Contract Signing Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ual to Percentage of the Total Contract Price a$ CashcashierEs: managerEs chec issued by a Universal or Commercial +an b$ +an draft: guarantee or irrevocable letter of credit issued by a Universal or Commercial +an ? Providedhowever.Audit Sub4ob"ective • Audit Criteria accordance with the following schedule8 OAS AM:@D:D A@D:R PP% R:SO$AT/O@ @O2 104!11+ DAT:D #1 S:PT:M%:R !11+P Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer 9orm of Performance Security Amount of Performance Security #/.

uirements are complied with& • .uired.3&.)&.uiredthe approving authority for the contract or his duly authori=ed representative shall be given ma@imum of fifteen #(7$ calendar days from receipt thereof to approve or disapprove it& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer • .uired Performance Security and enter into contract with the procuring entity within ten #(6$ calendar days from receipt by the winning bidder of the %otice of Award& .& "f no action on the contract is ta en by the >ead of the Procuring /ntity or the appropriate approving authority within the periods specified in this "RR. represe'ti'1 t#e COA0 t#e speci$ic re)e(a't c#amber.Audit Sub4ob"ective • Audit Criteria .& Contract Approval by >igher Authority !hen further approval of higher authority is re.3&4&(& The winning bidder shall post the re.December 2009 Page (5! . T% (eri$* i$ t#e +AC i'(ited Obser(ers= a.the contract shall not be deemed approved unless and until the Office of the President gives actual approval to the contract concerned2 (02 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.ation from which the Observer will be invitedH Did the %AC choose the Observers consideringB a2 one representing the COAM b2 One representing 2.3&4&4& The procuring entity shall enter into contract with the winning bidder within the same ten #(6$ day period provided that all the documentary re.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the contract concerned shall be deemed approved8 Providedhowever.member %$ t#e P#i)ippi'e C#amber %$ C%mmerce a'd I'd&str*0 a'd a '%'.That where further approval by the Office of the President is re.

2. t#at #a(e= b.perience or e.December 2009 Page (5# .pertise in procurement or in the sub"ect matter of the contract to be bidM b.as amended on September 4466'8 • Section (. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.A$and should meet the following criteria8 e2 -ith no actual or potential conflict of interest in the contract to be bidM f2 Conformed with other relevant criteria determined b9 the %ACM (32 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement2 Did the %AC invite the observers at least # da9s from the date of the bid evaluationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB c.invite.4.at least two #4$ observers.a specific relevant chamber1member of the Philippine Chamber of Commerce and "ndustry& iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.-. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* "mplementing Rules and Regulations #"RR$ of RA '()*.&(& To enhance the transparency of the processthe +AC shall. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .for e@ample8 i$ < ii$ 9or goods.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.in addition to the representative of the COA.in all stages of the procurement process.Audit Sub4ob"ective • Audit Criteria P%%) %$ Obser(ersB Audit Activities • knowledge8 e.ationM d2 -ith knowledge8 e.& Observers (.evelopment Authority #C.perience or e.who shall not have the right to vote.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer the specific relevant chamber4 member of the Philippine Chamber of Commerce and /ndustr9M c2 One representing a non4 government organi.

&*& The observers shall have the following responsibilities8 a$ To prepare the report either 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntitycopy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server.&. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* c%'sidered t#e c%mme'ts.& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.as amended on September 4466'8 • (. provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer . then it is (52 %ased on the Minutes of %AC)s meetings and the report of the Observers check whether a deliberation was made on the comments7observations of the observers2 Did the Procuring :ntit9 consider the comments7 observations of the ObserversM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.%bser(ati%'s %$ t#e Obser(ers "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria a$ Hnowledge.December 2009 Page (5* .

December 2009 Page (5.uest.if applicable? f$ %otice of Award of Contract? and g$ Other contract documents that may be re.as amended on September 4466'8 • .and all other documents:statements submitted? d$ Performance Security? e$ Credit line in accordance with the provisions of this "RR.Audit Sub4ob"ective • Audit Criteria understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.sub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/ 6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer -0. .ocuments< (+2 Obtain from the %AC Secretariat or the Pro"ect Management Office or the Office responsible for pro"ect implementation7 contract e.3&4&.uired by e@isting laws and:or the procuring entity concerned in the +idding .&7& Observers shall be allowed access to the following documents upon their re.uirements.ecution for a cop9 of the complete set of documents comprising the contract and compare with the reCuirements2 Are the contract documents complete8 consisting of the followingB a' Contract AgreementH b' %idding DocumentsH c' -inning bidder)s bid8 including the :ligibilit9 reCuirements8 Technical and >inancial Proposals8 and all other documents7stat ements submittedH d' Performance Securit9H e' Credit line in accordance with the provisions of this /RR8 if applicableH f' @otice of Award of ContractH and g' Other contract Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ocuments? c$ !inning bidderEs bidincluding the /ligibility re.Technical and 9inancial Proposals. T% (eri$* i$ t#e c%'tract is c%mp)ete "mplementing Rules and Regulations #"RR$ of RA '()*.& The following documents shall form part of the contract8 a$ Contract Agreement? b$ +idding .

isting laws and7or the procuring entit9 concerned in the %idding Documents8 such as the construction schedule and S4 curve8 manpower schedule8 construction methods8 eCuipment utili.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer documents that ma9 be reCuired b9 e. "ritte' i'str&cti%'s %' grounds for such t#e s&bse@&e't steps and furnished a t% be ad%pted "ere cop9 to the %ACM !2 Also look for the 1i(e' t% t#e +AC "mplementing Rules and Regulations #"RR$ of RA '()*.ation schedule8 construction safet9 and health program approved b9 the Department of $abor and :mplo9ment8 and P:RT7CPM for infrastructure pro"ectsM IN CA6E OF DI6APPRO8A9 +H THE HOPE OF THE +ACF6 RECOMMENDATION FOR A>ARD – FOR THE PROCUREMENT OF GOOD6 (2 /f the ?OP: disapproved /n case of -. I' case %$ disappr%(a) disapproval b9 b* t#e HOPE0 (eri$* i$ t#e= the recommendation for award8 look for the the ?OP: of the a.3&(&. 1r%&'ds $%r s&c# "ere document indicating the %AC)s e?pressed i' "riti'1 grounds for such with recommendation a'd a c%p* $&r'is#ed evidence of receipt of a 8 did the ?OP: t% t#e +AC0 a'd cop9 thereof b9 the %AC2 e.press the b.December 2009 Page (50 .as amended on September 4466'8 • .such document indicating the instructions given b9 the ?OP: on the subseCuent steps to be adopted b9 the %AC2 /n case of disapproval b9 the ?OP: of the %AC)s recommendation 8 did the ?OP: give instructions to the %AC on the subseCuent actions to be adoptedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& "n case of approvalthe >ead of the Procuring /ntity shall immediately issue the %otice of Award to the bidder with the Aowest Calculated Responsive +id& "n the event the >ead of the Procuring /ntity shall disapprove such recommendation.

a copy furnished the +AC& Generic Procurement Procedures for Goods. p%st t#e re@&ired Per$%rma'ce 6ec&rit* "it#i' t#e peri%d stip&)ated i' t#e Re(ised IRR %$ RA -23 %r i' t#e +iddi'1 D%c&me'ts "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page (53 .Gune 466D. $%r$eited t#e bid who8 through his finding to establish if sec&rit* %$ a'd fault8 failed8 the winning bidder was c.as amended on September 4. T% (eri$* i$ t#e +AC= %ACB disCualif9 the a.published by the GPP+8 • >ow is a contract awardedP < 7& <"n case of disapproval of the recommendation of award the >OP/ shall state the reasons for disapproval and instruct the +AC on the subse. t% s&bmit t#e d%c&me'ts re@&ired &'der 6ecti%' 4:.and 0ustifiable grounds to be e@pressed in writing. dis@&a)i$ied0 winning bidder • documenting the fact4 b.uent actions to be adopted& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer IN CA6E OF FAI9URE0 REFU6A90 OR INA+I9ITH +H THE >INNING +IDDER TO 6U+MIT DOCUMENT6 AND ENTER INTO CONTRACT . rec%mme'ded t#e refused or was responsible for his imp%siti%' %$ sa'cti%'s unable toB failure8 refusal8 or t% a2 submit the inabilit9 toB &a' to t#e "i''i'1 bidder "#%0 documents submit the documents t#r%&1# #is $a&)t0 $ai)ed0 reCuired reCuired under Section under re$&sed %r "as &'ab)e= #32( of the Revised /RR a.reasonable..%$ t#e Re(ised IRR %$ RA -230 %r b.Audit Sub4ob"ective • Audit Criteria disapproval shall be based only on valid. FOR THE PROCUREMENT OF GOOD6 (2 >rom the records of the Did the %AC -. t% maAe 1%%d its bid b* e'teri'1 i't% a c%'tract "it# t#e pr%c&ri'1 e'tit*0 %r c.466'8 of RA +(5*8 or &b' to make good its bid b9 entering into a contract with the procuring entit98 or &c' post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding DocumentsH • documenting the deliberations7evaluatio n conducted and the decisions arrived atH • documenting the recommendations made to the ?OP:8 look for information on theB • disCualification of the said bidder8 • forfeiture of the bid Section #32( of the Revised /RR of RA +(5*M or b2 to make good its bid b9 entering into a contract with the procuring entit9M or c2 post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

the bid security shall be forfeited and the appropriate sanctions provided in this "RR and e@isting laws shall be imposed.ocuments.December 2009 Page (55 .e@cept where such failure.uired under Section .fails.refuses or is unable to submit the documents re.Audit Sub4ob"ective • Audit Criteria • *6&(& "f the bidder with the Aowest Calculated Responsive +id:>ighest Rated Responsive +id or the bidder with the Single Calculated:Rated Responsive +id.refusal or inability is through no fault of the said bidder& Audit Activities securit9 and recommendation of the imposition of sanctions to the winning bidder2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer DocumentsM Did the %AC forfeit the bid securit9 of the winning bidder who8 through his fault8 failed8 refused or was unable toB a2 submit the documents reCuired under Section #32( of the Revised /RR of RA +(5*M or b2 to make good its bid b9 entering into a contract with the procuring entit9M or c2 post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding DocumentsM Did the %AC recommend the imposition of sanctions to the winning bidder who8 through his fault8 failed8 refused or was unable toB a2 submit the documents reCuired under Section #32( of the Revised /RR of RA +(5*M • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uired Performance Security within the period stipulated in this "RR or in the +idding .3&( of this "RR or to ma e good its bid by entering into a contract with the procuring entity or post the re.

@&a)i$icati%' pr%cess %' t#e bidder "it# t#e sec%'d 9%"est Ca)c&)ated +id "mplementing Rules and Regulations #"RR$ of RA '()*.uired Performance Security.as amended on September 4466'8 !2 >rom the records of the %AC8 look for information on the disCualification of the winning bidder who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated2 $ook also for information on the conduct of post4 Cualification on the bidder with the second $owest Calculated %id2 • *6&4& "n the case of the failure.refusal or inability of the bidder with the Aowest Calculated Responsive +id:>ighest Rated Responsive +id to submit the documents re.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer or b2 to make good its bid b9 entering into a contract with the procuring entit9M or c2 post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding DocumentsM 2.as provided in this NOTEB >or the audit on the Post1 Iualification for the Procurement of Goods conducted b9 the %AC8 perform the audit activities pertaining to these procurement activities in another part of this Guide2 Did the %AC8 after disCualif9ing the winning bidder who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated8 initiate and complete the post4Cualification process on the bidder with the second $owest Calculated %idM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page (5+ .3&( of this "RR or to enter into contract and post the re.uired under Section . T% (eri$* i$ t#e +AC0 a$ter dis@&a)i$*i'1 t#e "i''i'1 bidder "#%0 d&e t% #is $a&)t0 re$&sed0 $ai)ed0 %r "as &'ab)e t% e'ter i't% c%'tract0 p%st t#e re@&ired per$%rma'ce sec&rit*0 %r s&bmit %t#er re@&ired d%c&me'ts "it#i' t#e time stip&)ated0 i'itiated a'd c%mp)eted t#e p%st.

Audit Sub4ob"ective • Audit Criteria Section.uired Performance Security.& "n the case of failurerefusal or inability of the bidder with the Single Calculated:Rated Responsive +id to submit the documents re.3&( of this "RR or to enter into contract and post the re.a'd 27 %$ t#e Re(ised IRR %$ RA -23 /mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* i$ t#e +AC0 a$ter dis@&a)i$*i'1 t#e "i''i'1 bidder "it# t#e Single Calculated +esponsive Bid (SC+B) "#%0 d&e t% #is $a&)t0 re$&sed0 $ai)ed0 %r "as &'ab)e t% e'ter i't% c%'tract0 p%st t#e re@&ired per$%rma'ce sec&rit*0 %r s&bmit %t#er re@&ired d%c&me'ts "it#i' t#e time stip&)ated0 dec)ared t#e biddi'1 a $ai)&re a'd c%'d&cted a re.%r p%sti'10 as pr%(ided $%r i' 6ecti%'s 2.as amended on September 4466'8 • *6&.ualify the said bidder.uired under Section .December 2009 Page (+1 .as provided in this Section.biddi'1 "it# re.ad(ertiseme't a'd.and shall initiate and complete the post1.ualification process on the bidder with the second Aowest Calculated +id:< Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer 4.the +AC shall dis.as provided for in Sections 4( and 47 of this "RR& Should there occur another failure of bidding after the conduct of the #2 >rom the records of the %AC8 look for information on the disCualification of the winning bidder with the SCR% who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated2 $ook also for information on the declaration of the bidding a failure and the conduct of a re4bidding with re4advertisement2 Did the %AC8 after disCualif9ing the winning bidder with the SCR% who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated8 a2 declare the bidding a failureM and b2 conduct a re4 bidding with re4 advertisement and7or postingM NOTE= >or the audit on the 9ailure of +idding for the Procurement of Goods and on the Competitive:Public +idding for the Procurement of Goodsperform the audit activities pertaining to these procurement activities in other parts of this Guide2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ualify the said bidder.and shall declare the bidding a failure and conduct a re1 bidding with re1advertisement and:or posting.the +AC shall dis.

(a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.as amended on September 4.&.& Observers shall be invited at least three #. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. establish the effects and c%mp)ia'ce %' t#e= a. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.the procuring entity concerned may enter into a negotiated procurement& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT -.e the instances of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.December 2009 Page (+( .e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 (.Audit Sub4ob"ective • Audit Criteria contractEs re1bidding. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*. provided that the% have een dul% invited in 4riting1 develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. T% (eri$* t#e e$$ects %$ Anal9. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. etc.

December 2009 Page (+! . FAI9URE OF +IDDING DEC9ARED +H THE +.A.Audit Sub4ob"ective • Audit Criteria Audit Activities PENA9TIE6 portion of this Audit Guide& Suggested Audit -orking Paper Audit =uestion Le @o Particular s s of the Answer 4.2 :ST:D -ORK/@ PAP:R Documentar9 evidences that no bids were receivedH Documentar9 evidences that all prospective bidders were declared ineligibleH Documentar9 evidences that all bids failed to compl9 with all the bid reCuirementsH Documentar9 evidences that all bids failed post4CualificationH Documentar9 evidences that the bidder with the $owest Calculated Responsive %id refused8 without "ustifiable cause8 to accept the award of contract8 and no award was made in accordance with Section *1 of the RA +(5* and Revised /RRH 02 Minutes of the %AC meetings on post4CualificationH 32 %AC Resolution declaring the bidding a failureH Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . FOR THE PROCUREMENT OF GOOD6 A2 AAD/T O%E:CT/6:B To verif9 if the conditions7reCuirements8 procedures for the declaration of failure of bidding were adhered to b9 the procuring entit9 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for the evaluationB (2 !2 #2 *2 .C.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable <II. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.

December 2009 Page (+# .52 Minutes of the %AC meetings with information on the review and evaluation conducted on theB &a' terms8 &b' conditions8 &c' specifications8 and &d' cost estimates and the recommendations7decisions made J possible revisions7ad"ustmentsH +2 Approved revised %idding DocumentsH (12 Revised Approved %udget for the Contract &A%C'H ((2 Records of the re4biddingH (!2 Cop9 of the Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (#2 Cop9 of reports of the %AC Observers2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

in the case of consulting servicesthere is no successful negotiation? or d$ The bidder with the Aowest Calculated Responsive +id:>ighest Rated Responsive +id refuses.without 0ustifiable cause.as amended on September 4. terms0 !2 >rom the minutes of the %AC meetings held for the purpose8 look for information on the review and evaluation conducted on theB &a' terms8 &b' conditions8 &c' specifications8 and &d' cost Did the %AC determine the reason for the failed bidding b9 conducting a mandator9 review and evaluation of theB Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .to accept the award of contract.7&(& The +AC shall declare the bidding a failure when8 a$ %o bids are received? b$ All prospective bidders are declared ineligible? c$ All bids fail to comply with all the bid re. T% (eri$* i$ t#e +AC dec)ared a $ai)&re %$ biddi'1 $%r reas%' t#at= a! N% bids "ere recei(edB %r b! A)) pr%specti(e bidders "ere dec)ared i'e)i1ib)eB %r c! A)) bids $ai)ed t% c%mp)* "it# a)) t#e bid re@&ireme'ts0 %r d! a)) bids $ai)ed p%st.and no award is made in accordance with Section *6 of the Act and this "RR& Audit Activities (2 >rom the 5inutes of %AC meetings and other records8 look for information thatB a' @o bids were receivedH b' All prospective bidders were declared ineligibleH c' all bids failed to compl9 with all the bid reCuirements8 d' all bids failed post4 Cualification8 d' the bidder with the $owest Calculated Responsive %id refused8 without "ustifiable cause8 to accept the award of contract8 and no award was made in accordance with Section *1 of the RA +(5* and Revised /RR2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer Did the %AC declare a failure of bidding for reason thatB a' @o bids were receivedM b' All prospective bidders were declared ineligibleM or c' All bids failed to compl9 with all the bid reCuirementsM or d' all bids failed post4CualificationM or e' the bidder with the $owest Calculated Responsive %id refused8 without "ustifiable cause8 to accept the award of contract8 and no award was made in accordance with Section *1 of the RA +(5* and Revised /RRM 2 2.uirements or fail post1.Audit Sub4ob"ective • Audit Criteria -.December 2009 Page (+* .ualification. @&a)i$icati%'0 %r e! t#e bidder "it# t#e 9%"est Ca)c&)ated Resp%'si(e +id re$&sed0 "it#%&t C&sti$iab)e ca&se0 t% accept t#e a"ard %$ c%'tract0 a'd '% a"ard "as made i' acc%rda'ce "it# 6ecti%' 30 %$ t#e RA -23 a'd Re(ised IRR "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* i$ t#e +AC determi'ed t#e reas%' $%r t#e $ai)ed biddi'1 b* c%'d&cti'1 a ma'dat%r* re(ie" a'd e(a)&ati%' %$ t#e = a.466'8 • .or.

%r p%sti'1 "mplementing Rules and Regulations #"RR$ of RA '()*. c%'diti%'s0 c. speci$icati%'s0 d. speci$icati%'s0 d.and specifications in the +idding . c%'diti%'s0 c. .ocumentsincluding its cost estimates& Audit Activities estimates and the recommendations7decision s made J possible revisions7ad"ustments2 Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer a2 terms in the %idding DocumentsM b2 conditions in the %idding DocumentsM c2 specifications in the %idding DocumentsM d2 cost estimatesM 4.the +AC shall conduct a mandatory review and evaluation of the termsconditions.December 2009 Page (+. terms0 b.466'8 • .ad(ertiseme't a'd.and specificationsand if necessary.ad0ust the A+C.uired approvals.and conduct a re1 bidding with re1advertisement and:or posting.as amended on September 4.Audit Sub4ob"ective • Audit Criteria b.as amended on September 4.466'8 • .%$$icia)s %$ t#e pr%c&ri'1 e'tit*0 re(ised t#e $%))%"i'1 as a res&)t %$ t#e re(ie" a'd e(a)&ati%' c%'d&cted= a.7&4& "n order to determine the reason for the failed bidding. c%st estimates i' t#e +iddi'1 D%c&me'ts "mplementing Rules and Regulations #"RR$ of RA '()*.7&*& All bidders who have initially responded to the "nvitation to +id:Re. T% (eri$* i$ t#e +AC a'd t#e c%'cer'ed &'its.uest for /@pression of "nterest and have been declared eligible or short listed in the previous biddings #2 >rom the minutes of the %AC meetings held for the purpose and other records of the procuring entit98 look for information on the revisions7ad"ustments made on the &a' terms8 &b' conditions8 &c' specifications8 &d' A%C and approvals made thereon2 Did the %AC and the concerned units7officials of the procuring entit98 revised the following as a result of the review and evaluation conductedB a2 terms in the %idding DocumentsM b2 conditions in the %idding DocumentsM c2 specifications in the %idding DocumentsM *2 >rom the records of the %AC look for information on the re4bidding conducted2 d2 cost estimatesM Did the %AC conduct a re4biddingM NOTE= >or the audit on the re4 bidding conducted perform the audit using the portion of this Guide on Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& +ased on its findingsthe +AC shall revise the termsconditions.as provided for in Section 4(&4 of this "RR • .biddi'1 "it# re.sub0ect to the re. Appr%(ed +&d1et $%r t#e C%'tract (A+C!B #ad t#em appr%(edB a'd c%'d&cted a re.7&.

member %$ t#e P#i)ippi'e C#amber %$ C%mmerce a'd I'd&str*0 a'd a '%'.2 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.invite. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB .ationM d2 -ith knowledge8 e. T% (eri$* i$ t#e +AC i'(ited Obser(ers= a.Audit Sub4ob"ective • Audit Criteria shall be allowed to submit new bids& The +AC shall observe the same process and set the new periods according to the same rules followed during the previous bidding#s$& Audit Activities Competitive: Public +idding for the Procurement of Goods& Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer 3. t#at #a(e= b.4.& Observers (.pertise in procurement or in the sub"ect matter of the contract to be bidM e2 -ith no actual or potential conflict of interest in the contract to be bidM f2 Conformed with other relevant criteria determined b9 the %ACM c.December 2009 Page (+0 .in all stages of the procurement process.a specific relevant chamber1member 02 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement2 Did the %AC invite the observers at least # da9s from the date of the bid evaluationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .perience or e.as amended on September 4.perience or e.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b.ation from which the Observer will be invitedH • knowledge8 e.in addition to the representative of the COA.the +AC shall.who shall not have the right to vote. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.&(& To enhance the transparency of the process. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* "mplementing Rules and Regulations #"RR$ of RA '()*.-.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Did the %AC choose the Observers consideringB a2 one representing the COAM b2 One representing the specific relevant chamber4member of the Philippine Chamber of Commerce and /ndustr9M c2 One representing a non4government organi. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.2. represe'ti'1 t#e COA0 t#e speci$ic re)e(a't c#amber.466'8 • Section (.for e@ample8 i$ < ii$ 9or goods.at least two #4$ observers.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.

and should meet the following criteria8 a$ Hnowledge. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.evelopment Authority #C.e the instances of -.December 2009 Page (+3 . a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. establish the effects and c%mp)ia'ce %' t#e= a.& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.&.A$.Audit Sub4ob"ective • Audit Criteria of the Philippine Chamber of Commerce and "ndustry& iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative . etc.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.

c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.Audit Sub4ob"ective • Audit Criteria as amended on September 4466'8 (.466' re1 Prescribing the Use of the Rules and Regulations on Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer 2.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Appropriate Audit -orking Papers 4.& Observers shall be invited at least three #.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.&.December 2009 Page (+5 . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.

FAI9URE OF +IDDING DEC9ARED +H THE HOPE FOR THE PROCUREMENT OF GOOD6 A2 AAD/T O%E:CT/6:B To verif9 if the conditions7reCuirements for the declaration of failure of bidding were adhered to b9 the procuring entit9 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for the evaluationB Documents on the declaration of failure of bidding b9 the ?OP: with supporting documents on the e. t#e $&'ds. appr%priate p&b)ic %$$icers %r emp)%*ees %$ t#e pr%c&ri'1 e'tit*0 %r Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer Did the ?OP: declare a failure of bidding for reason thatB a2 the funds7allotment for the program7pro"ect 7activit9 has been withheld or reduced through no fault of the procuring entit9M or b2 there was prima :ST:D -ORK/@ PAP:R Audit Activities (2 >rom the documents on the declaration of failure of bidding b9 the ?OP:8 look for information on the reason for such declaration2 2 .istence of the grounds used to "ustif9 the said declaration thatB (2 there was prima facie evidence of collusion between appropriate public officers or emplo9ees of the procuring entit98 or !2 there was prima facie evidence of collusion between appropriate public officers or emplo9ees of the procuring entit98 or #2 there was prima facie evidence of collusion between or among the bidders themselves8 *2 there was prima facie evidence of collusion between a bidder and a third part98 or . T% (eri$* i$ t#e HOPE dec)ared a $ai)&re %$ biddi'1 $%r reas%' t#at= a. t#ere is prima $acie e(ide'ce %$ c%))&si%' bet"ee'= b.pr%Cect.<III.-.a))%tme't $%r t#e pr%1ram.2 there was prima facie evidence of an9 act which restricted8 suppressed or nullified competition8 or 02 the %AC was found to have failed in following the prescribed bidding procedures8 or 32 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the ph9sical and economic conditions have significantl9 changed so as to render the pro"ect no longer economicall98 financiall98 or technicall9 feasible8 as determined b9 the ?ead of the Procuring :ntit98 or 52 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the pro"ect is no longer necessar9 as determined b9 the ?ead of the Procuring :ntit98 or +2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the source of funds for the pro"ect has been withheld or reduced through no fault of the procuring entit92 Audit Sub4ob"ective • Audit Criteria -.acti(it* #as bee' "it##e)d %r red&ced t#r%&1# '% $a&)t %$ t#e pr%c&ri'1 e'tit*B b.

Audit Sub4ob"ective • Audit Criteria b,2, bet"ee' t#e +AC a'd a'* %$ t#e bidders 0 %r b,4, am%'1 t#e bidders t#emse)(es0 %r b,3, a bidder a'd a t#ird part*0 i'c)&di'1 a'* act "#ic# restricts0 s&ppresses %r '&))i$ies %r te'ds t% restrict0 s&ppress %r '&))i$* c%mpetiti%'B

Audit Activities

Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s
Answer facie evidence of collusion between appropriate public officers or emplo9ees of the procuring entit9M Or c2 there was prima facie evidence of collusion between the %AC and an9 of the biddersM or d2 there was prima facie evidence of collusion between or among the bidders themselvesM Or e2 there was prima facie evidence of collusion between a bidder and a third part9M Or f2 there was prima facie evidence of an9 act which restricted8 suppressed or nullified competitionM or g2 the %AC was found to have failed in following the prescribed bidding proceduresM or h2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the ph9sical and economic conditions have significantl9 changed so as to render the pro"ect no

%r c, t#e +AC is $%&'d t% #a(e $ai)ed i' $%))%"i'1 t#e prescribed biddi'1 pr%ced&resB %r d, t#e a"ard %$ t#e c%'tract "i)) '%t red%&'d t% t#e be'e$it %$ t#e GOP0 $%r C&sti$iab)e a'd reas%'ab)e 1r%&'ds s&c# as= (i! i$ t#e p#*sica) a'd ec%'%mic c%'diti%'s #a(e si1'i$ica't)* c#a'1ed s% as t% re'der t#e pr%Cect '% )%'1er ec%'%mica))*0 $i'a'cia))*0 %r tec#'ica))* $easib)e0 as determi'ed b* t#e Head %$ t#e Pr%c&ri'1 E'tit*B (ii! i$ t#e pr%Cect is '% )%'1er 'ecessar* as determi'ed b* t#e Head %$ t#e Pr%c&ri'1 E'tit*B a'd (iii! i$ t#e s%&rce %$ $&'ds $%r t#e pr%Cect #as bee' "it##e)d %r red&ced t#r%&1# '% $a&)t %$ t#e pr%c&ri'1 e'tit*,
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8

• Section *(& The >ead of the Procuring /ntity reserves the right to re0ect any and all bids- declare a failure of bidding- or not award the contract in the following situations8 a$ "f there is prima facie evidence of collusion between appropriate public officers or employees of the procuring entity- or between the +AC and any of the bidders- or if the collusion is between or among

Audit Sub4ob"ective • Audit Criteria
the bidders themselves- or between a bidder and a third party- including any act which restricts- suppresses or nullifies or tends to restrict- suppress or nullify competition? b$ "f the +AC is found to have failed in following the prescribed bidding procedures? or c$ 9or any 0ustifiable and reasonable ground where the award of the contract will not redound to the benefit of the GOP- as follows8 #i$ if the physical and economic conditions have significantly changed so as to render the pro0ect no longer economicallyfinancially- or technically feasible- as determined by the >ead of the Procuring /ntity? #ii$ if the pro0ect is no longer necessary as determined by the >ead of the Procuring /ntity? and #iii$ if the source of funds for the pro0ect has been withheld or reduced through no fault of the procuring entity& GPP+ Circular 6(1466' dated 46 Ganuary 466' • Section *&' Pursuant to Section *( of the "RR1A of R&A& '()*- the procuring entity reserves the right to declare a failure of bidding if the funds:allotment for the program:pro0ect:activity has been withheld or reduced through no fault of the procuring entity& 9or transparency- procuring entities shall ensure that their bid documents e@pressly reserves their right to re0ect bids- declare a failure of bidding- and not to award the contract without incurring any liability if the funds:allotment for said program:pro0ect:activity has been withheld or reduced through no fault of its own& They are also encouraged to emphasi=e this reservation clause during pre1bid conference or submission of bids&

Audit Activities

Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s
Answer longer economicall98 financiall98 or technicall9 feasible8 as determined b9 the ?ead of the Procuring :ntit9M Or i2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the pro"ect is no longer necessar9 as determined b9 the ?ead of the Procuring :ntit9M Or "2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the source of funds for the pro"ect has been withheld or reduced through no fault of the procuring entit9M

Audit Sub4ob"ective • Audit Criteria

Audit Activities

Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s
Answer

E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.e the instances of -, T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. establish the effects and c%mp)ia'ce %' t#e= a, (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b, (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c, etc, a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8
(.&.& Observers shall be invited at least three #.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings, provided that the% have een dul% invited in 4riting1 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& develop appropriate audit recommendations2

Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2

2, T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s

Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the

Appropriate Audit -orking Papers

Audit Sub4ob"ective • Audit Criteria

Audit Activities
OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide&

Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s
Answer

4, T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't
• COA Circular %o& 466'166D dated September (7- 466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts

Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management

Audit Observation Memorandum &AOM'8 if applicable

A9TERNATI8E METHOD6 OF PROCUREMENT FOR GOOD6

O' Pr%ced&res=

t#e

Pr%c&reme't

9IMITED 6OURCE +IDDING FOR GOOD6

Pr%c&reme't Pr%ced&res= 9IMITED 6OURCE +IDDING FOR GOOD6
Aimited Source +idding8 otherwise known as selective bidding8 is a method of procurement of goods that involves direct invitation to bid b9 the procuring entit9 from the list of pre4selected suppliers with known e;perience and proven capabilit9 on the reCuirements of the particular contract2 I, A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB $imited Source %idding was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ APPRO8A9 OF THE A9TERNATI8E METHOD

Documents needed for evaluationB (2 cop9 of the approved Annual Procurement Plan &APP'H !2 evidences to support the conclusion that public bidding cannot be ultimatel9 pursuedH #2 list of the onl9 suppliers who can suppl9 the highl9 speciali.ed t9pes of goods sub"ect of the specific procurementH or8 list of the onl9 suppliers of the ma"or plant componentH *2 Minutes of %AC meetings on the deliberations madeH ,2 %AC Resolution recommending the alternative method of procurementB $imited Source %idding8 dul9 approved b9 the ?OP:2

Audit Sub4ob"ective • Audit Criteria -, T% (eri$* i$ t#e +AC (a)idated= a, t#at t#e %ri1i'a) m%de %$ pr%c&reme't per APP "as p&b)ic biddi'1 b&t ca''%t be &)timate)* p&rs&edB a'd0 b, t#e e?iste'ce %$ t#e c%'diti%'s t% C&sti$* 9imited 6%&rce +iddi'1= b,-, Pr%c&reme't %$ #i1#)* specia)iIed t*pes %$ 1%%ds (e,1,0 s%p#isticated de$e'se e@&ipme't0 c%mp)e? air 'a(i1ati%' s*stems0 c%a)! "#ere %')* a $e" s&pp)iers are A'%"' t% be a(ai)ab)e0 s&c# t#at res%rti'1 t% t#e p&b)ic biddi'1 met#%d "i)) '%t )iAe)* res&)t i' a'*

Suggested Audit -orking Paper Audit Activities
(2 >rom the evaluation report with supporting documents and minutes of the %AC)s meetings and relevant %AC Resolution&s'8 look for information on the %AC)s validation that the original mode of procurement per APP was public bidding but cannot be ultimatel9 pursued and of the e;istence of the conditions to "ustif9 $imited Source %idding2

Audit =uestion
Did the %AC validate that the original mode of procurement per APP was public bidding but cannot be ultimatel9 pursuedM Did the %AC validate the e;istence of the conditions to "ustif9 $imited Source %iddingB a2 Procurement of highl9 speciali.ed t9pes of goods &e2g28 sophisticated defense

Le s

@o

Particulars of the Answer

Audit Sub4ob"ective • Audit Criteria additi%'a) s&pp)iers participati'1 i' t#e biddi'1B %r b,2, Pr%c&reme't %$ maC%r p)a't c%mp%'e'ts "#ere it is deemed ad(a'ta1e%&s t% )imit t#e biddi'1 t% A'%"' @&a)i$ied bidders i' %rder t% mai'tai' &'i$%rm @&a)it* a'd per$%rma'ce %$ t#e p)a't as a "#%)eB
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8

Suggested Audit -orking Paper Audit Activities Audit =uestion
eCuipment8 comple; air navigation s9stems8 coal' where onl9 a few suppliers are known to be available8 such that resorting to the public bidding method will not likel9 result in an9 additional suppliers or consultants participating in the biddingM or b2 Procurement of ma"or plant components where it is deemed advantageous to limit the bidding to known Cualified bidders in order to maintain uniform Cualit9 and performance of the plant as a wholeM

Le s

@o

Particulars of the Answer

*)&4& "n accordance with Section (6 of this "RR- as a general rulethe Procuring /ntities shall adopt public bidding as the general mode of procurement and shall see to it that the procurement program allows sufficient lead time for such public bidding& Alternative methods shall be resorted to only in the highly e@ceptional cases provided for in this Rule& *)&.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued- the +ACthrough a Resolution- shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& *'&(& Aimited Source +iddingotherwise nown as selective bidding- is a method of procurement of goods that involves direct invitation to bid by the procuring entity from the list of pre1selected suppliers with nown e@perience and proven capability of the re;uirements of the particular contract& This alternative method of procurement may be employed under any of the following conditions8

Audit Sub4ob"ective • Audit Criteria
a$ Procurement of highly speciali=ed types of goods #e&g&- sophisticated defense e;uipment- comple@ air navigation systems- coal$ where only a few suppliers are nown to be available- such that resorting to the public bidding method will not li ely result in any additional suppliers participating in the bidding? or b$ Procurement of ma0or plant components where it is deemed advantageous to limit the bidding to nown ;ualified bidders in order to maintain uniform ;uality and performance of the plant as a whole&

Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o
Particulars of the Answer

2, T% (eri$* i$ t#e +AC= a, rec%mme'ded t#e a)ter'ati(e m%de %$ pr%c&reme't= 9imited 6%&rce +iddi'1 t% t#e HOPE0 a'd b, t#e HOPE appr%(ed t#e a)ter'ati(e met#%d %$ pr%c&reme't
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8

!2 >rom the %AC Resolution recommending $imited Source %idding as the method of procurement8 look for the approval of the ?OP:2

Did the %AC recommend the alternative mode of procurementB $imited Source %idding to the ?OP:M

Did the ?OP: approve $imited Source %idding as the method of procurementM

*)&.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued- the +ACthrough a Resolution- shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/&

E8A9UATING AUDIT E8IDENCE6 AUDIT -, T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'.c%mp)ia'ce %' t#e= a, (a)idit* %$ t#e pr%c&reme't acti(ities a'd

GATHERED AND COMMUNICATING THE RE6U9T6 OF
Anal9.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Appropriate Audit -orking Papers

Audit Sub4ob"ective • Audit Criteria %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b, (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c, etc, a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8
(.&.& Observers shall be invited at least three #.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings, provided that the% have een dul% invited in 4riting1

Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o
Particulars of the Answer

Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide&

2, T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s

Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide&

Appropriate Audit -orking Papers

4, T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't
• COA Circular %o& 466'166D dated September (7- 466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts

Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management

Audit Observation Memorandum &AOM'8 if applicable

9IMITED 6OURCE +IDDING FOR GOOD6 II, +IDDING DOCUMENT6

@OT:B Since the reCuirement of regulations is for the Procuring :ntit9 to prepare the %idding Documents including the /nvitation to %id &indicating therein the method of procurement to be used' and the technical specifications8 in accordance with the procedures in the /RR8 the eneric Procurement Manual and the Philippine %idding Documents &P%Ds'8 the audit pertaining to %idding Documents shall be as indicated in the Audit Guide for +idding ,ocuments in Competitive:Public +idding for Goods 2 Audit Criteria8 • *'&*& The +AC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre1selected list& All other procedures for competitive bidding shall be underta en- e@cept for the advertisement of "nvitation to +id under Section 4(&4&( of the Revised "RR of RA '()*&
 5anual of Procedures for the Procurement of Goods and Services- 2olume 4 The following steps are followed in conducting a limited source bidding8 (& < 4& The +AC- through the T!G and the +AC Secretariat- prepares the +idding ,ocuments including the "nvitation to +id #indicating therein the method of procurement to be used$ and the technical specifications- in accordance with the procedures laid down in the "RR- this 5anual and the P+,s&

III,

PRE.PROCUREMENT CONFERENCE

@OT:B Since the reCuirement of regulations is for the Procuring :ntit9 to conduct Pre4Procurement Conference in accordance with the procedures in the /RR8 the eneric Procurement Manual and the Philippine %idding Documents &P%Ds'8 the audit pertaining to Pre4Procurement Conference shall be as indicated in the Audit Guide for Pre1Procurement Conference in Competitive:Public +idding for Goods2
Audit Criteria8 • *'&*& The +AC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre1selected list& All other procedures for competitive bidding shall be underta en- e@cept for the advertisement of "nvitation to +id under Section 4(&4&( of the Revised "RR of RA '()*& • 5anual of Procedures for the Procurement of Goods and Services- 2olume 4 The following steps are followed in conducting a limited source bidding8

(& < 4& < .& < *& "f a Pre1procurement Conference is re;uired or deemed necessary as previously discussed in this 5anual- the +AC holds the said Conference& "f a Pre1procurement Conference is held the participants should confirm the e@istence of the conditions re;uired by law for procurement through limited source bidding&

9IMITED 6OURCE +IDDING FOR GOOD6 I8, PO6TING OF THE IN8ITATION TO +ID

@OT:B Since the reCuirement of regulations is for the Procuring :ntit9 to post the /nvitation to %id in accordance with the procedures in the /RR8 the eneric Procurement Manual and the Philippine %idding Documents &P%Ds'8 the audit pertaining to posting of the /nvitation to %id shall be as indicated in the Audit uide for posting of the /nvitation to %id in Competitive7Public %idding for oods2
Audit Criteria8 • *'&*& The +AC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre1selected list& All other procedures for competitive bidding shall be underta en- e@cept for the advertisement of "nvitation to +id under Section 4(&4&( of the Revised "RR of RA '()*&

8, PRE.6E9ECTION AND IN8ITATION OF 6UPP9IER6 A2 AAD/T O%E:CT/6:S (2 To verif9 if the %AC conducted the pre4selection of suppliers as reCuired b9 regulationsH !2 To verif9 if the %AC invited pre4selected suppliers as reCuired b9 regulations2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for evaluationB (2 $ist maintained b9 the relevant government authorit9 that has e;pertise in the t9pe of procurement concernedH !2 %AC evaluation report with supporting documents on the pre4selection of suppliersH #2 $ist of Pre4Selected SuppliersH *2 Printout of the web pages where the /nvitation to %id was posted in the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable for the first da9 and at least the last da9 of postingH :ST:D -ORK/@ PAP:R

,2 Certification b9 the head of the %AC Secretariat of the procuring entit9 that the invitation was posted at an9 conspicuous place reserved for the purpose in the premises of the procuring entit9 for 3 calendar da9s2 02 /nvitations to bid dul9 received b9 the suppliersH Audit Sub4ob"ective • Audit Criteria -, T% (eri$* i$ t#e +AC= a, &sed t#e )ist mai'tai'ed b* t#e re)e(a't 1%(er'me't a&t#%rit*0 b, t%%A i't% acc%&'t e?perie'ce a'd past per$%rma'ce %' simi)ar c%'tracts0 c, t%%A i't% acc%&'t capabi)ities "it# respect t% pers%''e)0 d, t%%A i't% acc%&'t capabi)ities "it# respect t% e@&ipme't %r ma'&$act&ri'1 $aci)ities0 e, t%%A i't% acc%&'t capabi)ities "it# respect t% $i'a'cia) p%siti%' i' t#e pre.se)ecti%' %$ s&pp)iers
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8 • *'&4& The pre1selected suppliers shall be those appearing in a list maintained by the relevant government authority that has e@pertise in the type of procurement concerned& The list of pre1 selected suppliers shall be updated periodically& A copy of the list shall be submitted toand maintained updated withthe GPP+& • *'&.& The pre1selection shall be based upon the capability and resources of the bidders to perform the contract ta ing into account their e@perience and past performance on similar contracts- capabilities with respect to personnele;uipment or manufacturing facilities- and financial position& Pre1selection shall be done in accordance with the procedures provided in the GP5s&

Audit Activities
(2 >rom the %AC evaluation report with supporting documents &including a cop9 of the list used b9 the %AC in pre4selecting suppliers' on the pre4selection of suppliers8 the minutes of %AC meetings conducted for the purpose8 look for information on the use of the list and consideration of capabilities and e;perience in the pre4 selection process2

Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s
Did the %AC in the pre4selection of supplierB a2 use the list maintained b9 the relevant government authorit9M b2 took into account e;perience and past performance on similar contractsM c2 took into account capabilities with respect to personnelM d2 took into account capabilities with respect to eCuipment or manufacturin g facilitiesM e2 took into account capabilities with respect to financial positionM

Audit Sub4ob"ective • Audit Criteria
• Section D&4& Once issued by the GPP+- the use of the Generic Procurement 5anuals #GP5s$- Philippine +idding ,ocuments #P+,s$- and other standard forms shall be mandatory upon all Procuring /ntities& >owever- whenever necessary- to suit the particular needs of the procuring entitymodifications may be madeparticularly for ma0or and speciali=ed procurementsub0ect to the approval of the GPP+& 5anual of Procedures for the Procurement of Goods and Services- 2olume 4 • The following steps are followed in conducting a limited source bidding8 (& < 4& < .& The +AC- through the Secretariat gets the list of pre1selected suppliers from the government authority that has e@pertise in the type of procurement at hand& "t may also access the PhilG/PS website as a secondary source of information& *& < 7& < D& < 3& <

Audit Activities

Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s

2, T% (eri$* i$ t#e +AC se't i'(itati%'s t% bid t% a)) t#e pre.se)ected s&pp)iers
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8 • *'&*& The +AC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre1selected list& • D&4& Once issued by the GPP+the use of the Generic Procurement 5anuals #GP5s$Philippine +idding ,ocuments #P+,s$- and other standard forms shall be mandatory upon all Procuring /ntities& >oweverwhenever necessary- to suit the particular needs of the procuring entity- modifications

!2 Compare the names of suppliers per copies of invitations to bid dul9 received b9 them with the suppliers in the list of pre4 selected suppliers2

Did the %AC send invitations to bid to all the pre4selected suppliersM

Audit Sub4ob"ective • Audit Criteria
may be made- particularly for ma0or and speciali=ed procurement- sub0ect to the approval of the GPP+& 5anual of Procedures for the Procurement of Goods and Services- 2olume 4 • The following steps are followed in conducting a limited source bidding8

Audit Activities

Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s

O

D& The +AC Secretariat sends the invitation to bid to the pre1selected suppliers& The invitation to bid is sent to AAA suppliers in the list&

4, T% (eri$* i$ t#e +AC 6ecretariat p%st t#e i'(itati%' t% bid i'= a, T#e P#i)GEP60 b, t#e "ebsite %$ t#e pr%c&ri'1 e'tit*0 c, e)ectr%'ic pr%c&reme't ser(ice pr%(ider0 i$ a'*0 $%r a peri%d %$ : ca)e'dar da*s pri%r t% t#e %pe'i'1 %$ t#e bids
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8 • D&4& Once issued by the GPP+the use of the Generic Procurement 5anuals #GP5s$Philippine +idding ,ocuments #P+,s$- and other standard forms shall be mandatory upon all Procuring /ntities& >oweverwhenever necessary- to suit the particular needs of the procuring entity- modifications may be made- particularly for ma0or and speciali=ed procurement- sub0ect to the approval of the GPP+& 5anual of Procedures for the Procurement of Goods and Services- 2olume 4 • The following steps are followed in conducting a limited source bidding8

#2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 *2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable2 Print the page where the notice was posted &to form part of the audit evidences'2 ,2 Access the websites at random during the 34da9 period to verif9 the postings2

Did the %AC post the "nvitation to +id continuousl9 in theB (2 Phil :PS website for 3 calendar da9s starting on the date of advertisementM !2 website of the procuring entit9 concerned8 if available8 for 3 calendar da9s starting on the date of advertisementM #2 website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable8 for 3 calendar da9s starting on the date of advertisementM

O
7& The +AC- through the Secretariat- posts for information purposes the invitation to bid in a& The PhilG/PS? b& the website of

Audit Sub4ob"ective • Audit Criteria
the procuring entity and its electronic procurement service provider - if any- for a period of 3 calendar days prior to the opening of the bids&

Audit Activities

Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s

3, T% (eri$* i$ t#e +AC 6ecretariat p%st t#e i'(itati%' t% bid i' a'* c%'spic&%&s p)ace i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r a peri%d %$ : ca)e'dar da*s pri%r t% t#e %pe'i'1 %$ t#e bids
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8 • D&4& Once issued by the GPP+the use of the Generic Procurement 5anuals #GP5s$Philippine +idding ,ocuments #P+,s$- and other standard forms shall be mandatory upon all Procuring /ntities& >oweverwhenever necessary- to suit the particular needs of the procuring entity- modifications may be made- particularly for ma0or and speciali=ed procurement- sub0ect to the approval of the GPP+& 5anual of Procedures for the Procurement of Goods and Services- 2olume 4 • The following steps are followed in conducting a limited source bidding8

02 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 32 Conduct ocular inspection on the first da9 of posting2 52 Repeat the ocular inspections &ma9 be at random' during the 34da9 period to verif9 the postings2 +2 ReCuest for the certification of the head of the %AC Secretariat

Did the %AC post the /nvitation to %id continuousl9 at an9 conspicuous place reserved for the purpose in the premises of the procuring entit9 for 3 calendar da9s8 as certified b9 the head of the %AC Secretariat of the procuring entit9M

O
7& The +AC- through the Secretariat- posts for information purposes the invitation to bid in a& < b& < c& any conspicuous place in the premises of the procuring entity? for a period of 3 calendar days prior to the opening of the bids&

E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.e the instances of -, T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. establish the effects and c%mp)ia'ce %' t#e= a, (a)idit* %$ t#e pr%c&reme't acti(ities
develop appropriate audit recommendations2 Also determine if

&. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (. +ID E8A9UATION .& Observers shall be invited at least three #.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable 9IMITED 6OURCE +IDDING FOR GOOD6 8I. provided that the% have een dul% invited in 4riting1 Audit Activities appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.Audit Sub4ob"ective • Audit Criteria a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. PRE. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Appropriate Audit -orking Papers 4. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. etc. OPENING AND PRE9IMINARH E<AMINATION OF +ID6 8II.+ID CONFERENCE 8I.

as prescribed in Sections . Audit Criteria8 • 5anual of Procedures for the Procurement of Goods and Services.&4 emergency cases$.eligibility chec .uantities and amounts.' and D4 of this "RR.post1. I<.7.uirements for the alternative methods of procurement& 7*&*& /@cept for Aimited Source +idding under Section *' of this "RRsubmission of bid securities may be dispensed with& 7*&7& Performance and warranty securities.&' #small value procurement$.and 7.&(.uirements of law and this "RR.following the procedures for competitive bidding& • *'&*& The +AC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre1selected list& All other procedures for competitive bidding shall be underta en.2olume 4 The following steps are followed in conducting a limited source bidding8 (& < 4& < .7.uired through the alternative methods of procurement.GUA9IFICATION A>ARD OF CONTRACT NOTE= Since the reCuirement of regulations is for the Procuring :ntit9 to undertake all other procedures for competitive bidding8 e.e@cept for the advertisement of "nvitation to +id under Section 4(&4&( of the Revised "RR of RA '()*& 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller .& < *& < 7& < D& < 3& The +AC proceeds with the pre1bid conference #if deemed warranted under the circumstances$. PO6T.shall be submitted for contracts ac.e@cept for Shopping under Section 74 and %egotiated Procurement under Sections 7.signing and approval.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re.bid evaluation.specially the necessity of public bidding and the re.8III.cept for the advertisement of /nvitation to %id8 the audit pertaining to other phases7activities in $imited Source %idding shall be as indicated in the Audit Guide for Competitive:Public +idding for Goods.ualification and succeeding activities up to contract award.&(6 #lease of real property$. #U% agencies$& • • • .

O' t#e Pr%c&reme't Pr%ced&res= DIRECT CONTRACTING FOR GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !(3 .

T% (eri$* i$ t#e +AC (a)idated= a. t#e e?iste'ce %$ t#e c%'diti%'s t% C&sti$* Direct C%'tracti'1= b. A2 AAD/T O%E:CT/6:B To verif9 if the adoption of Direct Contracting was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ APPRO8A9 OF THE A9TERNATI8E METHOD Documents needed for evaluationB (2 cop9 of the approved Annual Procurement Plan &APP'H !2 evidences to support the conclusion that public bidding cannot be ultimatel9 pursuedH #2 evidence of proprietar9 nature of the item to be procuredH or *2 cop9 of the contract with a provision which reCuires procurement of critical plant components from a specific supplier as a condition precedent to hold a contractor to guarantee its pro"ect performance8 in accordance with the provisions of its contractH or .2 evidence of e.istence of the conditions to "ustif9 Audit =uestion Did the %AC validate that the original mode of procurement per APP was public bidding but cannot be ultimatel9 pursuedM Did the %AC validate the e.December 2009 Page !(5 .istence of the Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .clusive dealership or of absence of sub4dealers selling at lower pricesH 02 evidence that no suitable substitute for the item to be procured can be obtained at more advantageous terms to the OPH 32 Minutes of %AC meetings on the deliberations madeH 52 %AC Resolution recommending the alternative method of procurementB Direct Contracting8 dul9 approved b9 the ?OP:2 Audit Sub4ob"ective • Audit Criteria -. t#at t#e %ri1i'a) m%de %$ pr%c&reme't per APP "as p&b)ic biddi'1 b&t ca''%t be &)timate)* p&rs&edB a'd0 b.-.irect Contracting or single source procurement is a method of procurement of goods that does not reCuire elaborate %idding Documents2 The supplier is simpl9 asked to submit a price Cuotation or a pro4forma invoice together with the conditions of sale2 The offer ma9 be accepted immediatel9 or after some negotiations2 I.Pr%c&reme't Pr%ced&res= DIRECT CONTRACTING FOR GOOD6 . t#e 1%%ds are pr%prietar* i' 'at&re Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Suggested Audit -orking Paper Audit Activities (2 >rom the minutes of the %AC)s meetings and relevant %AC Resolution&s'8 look for information on the %AC)s validation that the original mode of procurement per APP was public bidding but cannot be ultimatel9 pursued and of the e.

e.resort to any of the alternative methods of procurement provided in this Rule& "n all instances.and whenever 0ustified by the conditions provided in this Actthe procuring entity may. t#e item t% be pr%c&red is s%)d b* a' e?c)&si(e dea)er %r ma'&$act&rer "#ic# d%es '%t #a(e s&b.466'8 Suggested Audit -orking Paper Audit Activities Direct Contracting2 Audit =uestion conditions to "ustif9 Direct ContractingB a2 the goods are proprietar9 in nature which can be obtained onl9 from the proprietar9 source8 i2e2 when patents8 trade secrets8 and cop9rights prohibit others from manufacturing the same itemM b2 the patent8 cop9right and other evidences of propriet9M or c2 the procurement involves critical plant components from a specific supplier and is a condition precedent to hold a contractor to guarantee its pro"ect performance8 in accordance with the provisions of its contractM or d2 the item to be procured is sold b9 an e.as amended on September 4.4.the procuring entity shall ensure that the most advantageous Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . "#e' pate'ts0 trade secrets0 a'd c%p*ri1#ts pr%#ibit %t#ers $r%m ma'&$act&ri'1 t#e same itemB %r b.Audit Sub4ob"ective • Audit Criteria "#ic# ca' be %btai'ed %')* $r%m t#e pr%prietar* s%&rce0 i. dea)ers se))i'1 at )%"er prices a'd $%r "#ic# '% s&itab)e s&bstit&te ca' be %btai'ed at m%re ad(a'ta1e%&s terms t% t#e GOP.2.clusive dealer or manufacturer which does not have sub4 dealers selling at lower prices and for which no suitable substitute can be obtained at Le s @o Particulars of the Answer • *)&(& Sub0ect to the prior approval of the >ead of the Procuring /ntity.December 2009 Page !(+ .in order to promote economy and efficiency. t#e pr%c&reme't i'(%)(es critica) p)a't c%mp%'e'ts $r%m a speci$ic s&pp)ier a'd is a c%'diti%' precede't t% #%)d a c%'tract%r t% 1&ara'tee its pr%Cect per$%rma'ce0 i' acc%rda'ce "it# t#e pr%(isi%'s %$ its c%'tractB %r b. "mplementing Rules and Regulations #"RR$ of RA '()*.

in accordance with the provisions of its contract? or c$ Those sold by an e@clusive • • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .through a Resolutionshall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& 76& <.December 2009 Page !!1 .& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursuedthe +AC.i&e& when patents.irect contracting may be resorted to by concerned Procuring /ntities under any of the following conditions8 a$ Procurement of goods of proprietary nature which can be obtained only from the proprietary source.as a general rule.the Procuring /ntities shall adopt public bidding as the general mode of procurement and shall see to it that the procurement program allows sufficient lead time for such public bidding& Alternative methods shall be resorted to only in the highly e@ceptional cases provided for in this Rule& *)&.trade secrets.and copyrights prohibit others from manufacturing the same item? b$ !hen the procurement of critical plant components from a specific supplier is a condition precedent to hold a contractor to guarantee its pro0ect performance.Audit Sub4ob"ective • Audit Criteria price for the Government is obtained& Suggested Audit -orking Paper Audit Activities Audit =uestion more advantageous terms to the OPM Le s @o Particulars of the Answer • *)&4& "n accordance with Section (6 of this "RR.

December 2009 Page !!( . T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.Audit Sub4ob"ective • Audit Criteria dealer or manufacturer which does not have sub1dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the GOP& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer 4.the procuring entity shall ensure that the most advantageous price for the Government is obtained& *)&. t#e HOPE appr%(ed t#e met#%d %$ pr%c&reme't "mplementing Rules and Regulations #"RR$ of RA '()*.in order to promote economy and efficiency. T% (eri$* i$ t#e +AC= a. rec%mme'ded t#e a)ter'ati(e m%de %$ pr%c&reme't= Direct C%'tracti'1 t% t#e HOPE0 a'd b.as amended on September 4.and whenever 0ustified by the conditions provided in this Actthe procuring entity may. Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .e the instances of -.through a Resolutionshall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& • E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursuedthe +AC.466'8 #2 >rom the %AC Resolution recommending Direct Contracting as the method of procurement8 look for the approval of the ?OP:2 Did the %AC recommend the alternative mode of procurementB Direct Contracting to the ?OP:M Did the ?OP: approve Direct Contracting as the method of procurementM • *)&(& Sub0ect to the prior approval of the >ead of the Procuring /ntity.resort to any of the alternative methods of procurement provided in this Rule& "n all instances.

466' re1 Prescribing the Use of the Rules Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTEB Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. etc. provided that the% have een dul% invited in 4riting1 Suggested Audit -orking Paper Audit Activities establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Audit =uestion Le s @o Particulars of the Answer NOTEB Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.&.December 2009 Page !!! .& Observers shall be invited at least three #.Audit Sub4ob"ective • Audit Criteria c%mp)ia'ce %' t#e= a. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.

PRICE GUOTATION AND ACCEPTANCE OF OFFER A2 AAD/T O%E:CT/6: To verif9 if the %AC conducted Direct Contracting as reCuired b9 regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for evaluationB (2 !2 %AC evaluation report with supporting documents on the accepted offerH ReCuest for price Cuotation from the identified supplier or a pro4forma invoiceH :ST:D -ORK/@ PAP:R Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .irect Contracting or single source procurement is a method of procurement of goods that does not re.Audit Sub4ob"ective • Audit Criteria and Regulations on Settlement of Accounts Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer DIRECT CONTRACTING FOR GOOD6 II.December 2009 Page !!# . +IDDING DOCUMENT6 NOTE= The regulations provide that the method of procurement does not reCuire elaborate %idding Documents2 Audit Criteria8 • 76& .ocuments& The supplier is simply as ed to submit a price .uire elaborate +idding .uotation or a pro1forma invoice together with the conditions of sale& The offer may be accepted immediately or after some negotiations& III.

T% (eri$* t#e e$$ects Anal9. estab)is#ed criteria a'd pr%ced&res "mplementing Rules and Regulations #"RR$ of RA '()*.e the instances of non4compliance to Appropriate Audit -orking Papers %$ i'sta'ces %$ '%'. establish the effects and c%mp)ia'ce %' t#e= a.466'8 Audit Activities (2 Obtain a cop9 of the Procuring :ntit9)s reCuest for price Cuotation from the identified supplier or a pro4forma invoice together with the conditions of sale and a cop9 of the supplier)s submission2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the Procuring :ntit9 reCuest for price Cuotation from the identified supplier or a pro4 forma invoice together with the conditions of saleM Did the supplier submit the documents reCuestedM • 76& The supplier is simply as ed to submit a price . T% (eri$* i$ t#e Pr%c&ri'1 E'tit* re@&ested $%r price @&%tati%' $r%m t#e ide'ti$ied s&pp)ier %r a pr%. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uotation or a pro1forma invoice together with the conditions of sale& The offer may be accepted immediately or after some negotiations& 2.December 2009 Page !!* .$%rma i'(%ice t%1et#er "it# t#e c%'diti%'s %$ sa)e "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria -.as amended on September 4.uotation or a pro1forma invoice together with the conditions of sale& The offer may be accepted immediately or after some negotiations& !2 >rom the documentation of the evaluation conducted b9 the procurement unit8 look for information on the evaluation conducted and the decisions made2 Did the Procuring :ntit9 evaluate and accept the offer based on pre4 established criteria and proceduresM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT -. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* e(a)&ated a'd accepted t#e %$$er based %' pre.as amended on September 4.466'8 76& The supplier is simply as ed to submit a price .

$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.December 2009 Page !!.as amended on September 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*. etc.466'8 (. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. . provided that the% have een dul% invited in 4riting1 Audit Activities non4compliance2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s NOTEB Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria res&)ti'1 c%'tractB b. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTEB Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.& Observers shall be invited at least three #.&.

December 2009 Page !!0 .O' t#e Pr%c&reme't Pr%ced&res= REPEAT ORDER FOR GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

Pr%c&reme't Pr%ced&res= REPEAT ORDER FOR GOOD6 Repeat Order8 when provided for in the APP8 is a method of procurement of goods from the previous winning bidder8 whenever there is a need to replenish goods procured under a contract previousl9 awarded through Competitive %idding2 A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB Repeat Order was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 cop9 of the approved Annual Procurement Plan &APP'H !2 cop9 of the original contract and evidences that it was awarded through Competitive %iddingH #2 cop9 of the prices for the repeat order with evidences that the9 are the prevailing market price &advantageous to the OP' as of the time of the negotiationH *2 evidences to support the conclusion that the repeat order contract did not result to splitting of reCuisition or contractH Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !!3 .

"mplementing Rules and Regulations #"RR$ of RA '()*. U'it prices %$ t#e repeat %rder "ere t#e same as %r )%"er t#a' t#%se i' t#e %ri1i'a) c%'tract0 pr%(ided t#at s&c# prices are sti)) t#e m%st ad(a'ta1e%&s t% t#e GOP a$ter price (eri$icati%'B d.2 Anal9sis showing that the Cuantit9 of each item in the repeat order did not e.as amended on September 4.%$ t#e Re(ised IRR %$ RA -23B e.466'8 Suggested Audit -orking Paper Audit Activities (2 >rom the evaluation report with supporting documents &and minutes of the %AC)s meetings8 look for information on the %AC)s validation that the mode of procurement per APP is Repeat Order and of the e. t#e %ri1i'a) c%'tract "as pre(i%&s)* a"arded t#r%&1# C%mpetiti(e +iddi'1B c.istence of the conditions to "ustif9 Repeat Ordering2 Audit =uestion Did the %AC validate that Repeat Order is the mode of procurement provided for in the approved APPM Did the %AC validate that the original contract was previousl9 awarded through Competitive %iddingM Did the %AC validate that Anit prices of the repeat order were the same as or lower than those in the original contract8 provided that such prices are still the most advantageous to the OP after price verificationM Did the %AC validate that repeat order will not result in splitting of contracts8 reCuisitions8 or purchase ordersM Did the %AC validate that e..ceed twent94five percent &!.$i(e perce't (27N! %$ t#e @&a'tit* %$ eac# item i' t#e %ri1i'a) c%'tract. T#e repeat %rder did NOT e?ceed t"e't*. T#e repeat %rder "i)) '%t res&)t i' sp)itti'1 %$ c%'tracts0 re@&isiti%'s0 %r p&rc#ase %rders0 as pr%(ided $%r i' 6ecti%' 73. E?cept i' cases d&)* appr%(ed b* t#e GPP+0 t#e repeat %rder "as a(ai)ed %$ %')* "it#i' si? (5! m%'t#s $r%m t#e c%'tract e$$ecti(it* date stated i' t#e N%tice t% Pr%ceed arisi'1 $r%m t#e %ri1i'a) c%'tractB a'd $. t#at Repeat Order is t#e m%de %$ pr%c&reme't pr%(ided $%r i' t#e appr%(ed APPB a'd t#at= b.Q' of the Cuantit9 of each item in the original contractH 02 Minutes of %AC meetings on the deliberations madeH Audit Sub4ob"ective • Audit Criteria -.December 2009 Page !!5 .cept in cases dul9 approved b9 the PP%8 the repeat order was availed of onl9 Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC (a)idated= a..

re.through a Resolutionshall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& 7(& Repeat Order.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursuedthe +AC.Audit Sub4ob"ective • Audit Criteria • *)&(& Sub0ect to the prior approval of the >ead of the Procuring /ntity.December 2009 Page !!+ .ceed twent94five percent &!.when provided for in the APP.Q' of the Cuantit9 of each item in the original contractM Le s @o Particulars of the Answer • • a' Unit prices of the repeat order must be the same as or lower than those in the original contract. &0' months from the contract effectivit9 date stated in the @otice to Proceed arising from the original contractM Did the %AC validate that the repeat order did @OT e.whenever there is a need to replenish goods procured under a contract previously awarded through Competitive +idding& Suggested Audit -orking Paper Audit Activities Audit =uestion within si.is a method of procurement of goods from the previous winning bidder.in order to promote economy and efficiency.the procuring entity shall ensure that the most advantageous price for the Government is obtained& *)&.uisitions.and whenever 0ustified by the conditions provided in this Actthe procuring entity may.as provided for in Section 7*&( of the Revised "RR of RA '()*? c$ /@cept in cases duly Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .or purchase orders.provided that such prices are still the most advantageous to the GOP after price verification? b$ The repeat order will not result in splitting of contracts.resort to any of the alternative methods of procurement provided in this Rule& "n all instances.

the +AC. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.through the Secretariat.Audit Sub4ob"ective • Audit Criteria approved by the GPP+.shall post. T% (eri$* i$ t#e +AC 6ecretariat p%sted t#e '%tice %$ a"ard i'= a.and at any conspicuous place reserved for this purpose in the premises of the procuring entity& !2 Ahead of the procurement8 reCuest the %AC Secretariat for advance information on the schedule of an9 posting2 #2 Access the Phil :PS website8 the website of the procuring entit9 concerned8 if available and print the page where the notice was posted &to form part of the audit evidences'2 *2 Conduct ocular inspection on the schedule of posting2 Did the %AC Secretariat post the notice of award inB a2 the Phil :PSM b2 the website of the procuring entit9M c2 an9 conspicuous place in the premises of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.e the instances -. t#e P#i)GEP60 b.the website of the procuring entity concerned.December 2009 Page !#1 .for information purposes.466'8 • 7*&. T% (eri$* t#e e$$ects %$ of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.the repeat order shall be availed of only within si@ #D$ months from the contract effectivity date stated in the %otice to Proceed arising from the original contract? and d$ The repeat order shall not e@ceed twenty1five percent #47K$ of the .as amended on September 4. "n all instances of alternative methods of procurement. (a)idit* %$ a'* pa*me't t% be made %' t#e basis Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update . establish the effects c%mp)ia'ce %' t#e= a. a'* c%'spic&%&s p)ace i' t#e premises %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.the notice of award in the PhilG1/PS website.uantity of each item in the original contract& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer 2. t#e "ebsite %$ t#e pr%c&ri'1 e'tit*0 i$ a(ai)ab)e c.if available.

e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTEB Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.& Observers shall be invited at least three #.&.December 2009 Page !#( .466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . provided that the% have een dul% invited in 4riting1 Suggested Audit -orking Paper Audit Activities compliance2 Audit =uestion Le s @o Particulars of the Answer NOTEB Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.Audit Sub4ob"ective • Audit Criteria %$ t#e c%'tractB c. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. etc. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.

O' t#e Pr%c&reme't Pr%ced&res= 6HOPPING FOR GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !#! .

2 evidences of the non4availabilit9 of the items in the Procurement ServiceH 02 anal9sis leading to the conclusion that the amounts involved are within the threshold provided in Anne.istence of the conditions to "ustif9 ShoppingB Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB Shopping was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ APPRO8A9 OF THE A9TERNATI8E METHOD Documents needed for evaluationB (2 cop9 of the approved Annual Procurement Plan &APP'H !2 evidences to support the conclusion that public bidding cannot be ultimatel9 pursuedH #2 evidences to support the occurrence of unforeseen contingenc9 reCuiring immediate purchaseH *2 anal9sis leading to the conclusion that the items procured were ordinar9 or regular office supplies and eCuipmentH . %cc&rre'ce %$ &'$%resee' c%'ti'1e'c* re@&iri'1 immediate Suggested Audit -orking Paper Audit Activities (2 >rom the evaluation report with supporting documents and minutes of the %AC)s meetings and relevant %AC Resolution&s'8 look for information on the %AC)s validation that the original mode of procurement per APP was public bidding but cannot Audit =uestion Did the %AC validate that the original mode of procurement per APP was public bidding but cannot be ultimatel9 pursuedM Did the %AC validate the e. F?G of the Revised /RR of RA +(5*H 32 Minutes of %AC meetings on the deliberations madeH 52 %AC Resolution recommending the alternative method of procurementB Shopping8 dul9 approved b9 the ?OP:2 Audit Sub4ob"ective • Audit Criteria -.December 2009 Page !## . T% (eri$* i$ t#e +AC (a)idated= a. t#at t#e %ri1i'a) m%de %$ pr%c&reme't per APP "as p&b)ic biddi'1 b&t ca''%t be &)timate)* p&rs&edB a'd0 b. t#e e?iste'ce %$ t#e c%'diti%'s t% C&sti$* 6#%ppi'1= b.Pr%c&reme't Pr%ced&res= 6HOPPING FOR GOOD6 Shopping is a method of procurement of goods whereb9 the procuring entit9 simpl9 reCuests for the submission of price Cuotations for readil9 available off4the4 shelf goods or ordinar97regular eCuipment to be procured directl9 from suppliers of known Cualifications2 I.-.

istence of the conditions to "ustif9 Shopping2 Audit =uestion Le s @o Particulars of the Answer a2 occurrence of unforeseen contingenc9 reCuiring immediate purchaseM or b2 procurement of ordinar9 or regular office supplies and eCuipment not available in the Procurement ServiceM Or c2 the amounts involved did not e.uotations for readily available off1the1shelf goods or ordinary:regular e.uipment to be procured directly from suppliers of nown .uests for the submission of price .4.the +ACthrough a Resolution.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& 74&(& Shopping is a method of procurement of goods whereby the procuring entity simply re.That the amount shall not e@ceed the thresholds prescribed in Anne@ B>C of the Revised "RR or RA '()*& b$ Procurement of ordinary or • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • *)&.Audit Sub4ob"ective • Audit Criteria p&rc#aseB b.2.December 2009 Page !#* .as amended on September 4. F?G of the Revised /RR of RA +(5*M Did the %AC validate that there is no FsplittingGM c.ualifications& This method of procurement shall be employed in any of the following cases8 a$ !hen there is an unforeseen contingency re. pr%c&reme't %$ %rdi'ar* %r re1&)ar %$$ice s&pp)ies a'd e@&ipme't '%t a(ai)ab)e i' t#e Pr%c&reme't 6er(iceB b. t#at t#ere is '% Dsp)itti'1E.uiring immediate purchase8 Providedhowever. t#e am%&'ts i'(%)(ed did '%t e?ceed t#e t#res#%)ds i' A''e? DHE %$ t#e Re(ised IRR %$ RA -230 Suggested Audit -orking Paper Audit Activities be ultimatel9 pursued and of the e. "mplementing Rules and Regulations #"RR$ of RA '()*.ceed the thresholds in Anne.

office supplies shall not include services such as repair and maintenance of e.commodities.depending on the procuring entityEs mandate and nature of operations.uipment and furniture. T% (eri$* i$ t#e +AC= a.0anitorialsecurity.hauling.Audit Sub4ob"ective • Audit Criteria regular office supplies and e.and related or analogous services& 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller .December 2009 Page !#.uirements for the alternative methods of procurement& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer • 2.uirements of law and this "RR.uantities and amounts. t#e HOPE appr%(ed t#e a)ter'ati(e met#%d %$ pr%c&reme't "mplementing Rules and Regulations !2 >rom the %AC Resolution recommending Shopping as the method of procurement8 look for the approval of the ?OP:2 Did the %AC recommend the alternative mode of procurementB Shopping to the ?OP:M Did the ?OP: approve Shopping as the method of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .or materials which. .specially the necessity of public bidding and the re.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re.uipment not available in the Procurement Service involving an amount not e@ceeding the thresholds prescribed in Anne@ B>C of this "RR& • 74&4& The phrase Bordinary or regular office suppliesC shall be understood to include those supplies.as well as truc ing.and consumed in the day1to1day operations of said procuring entity& >owever.are necessary in the transaction of its official businesses. rec%mme'ded t#e a)ter'ati(e m%de %$ pr%c&reme't= 6#%ppi'1 t% t#e HOPE0 a'd b.

resort to any of the alternative methods of procurement provided in this Rule& "n all instances.as amended on September 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria #"RR$ of RA '()*.the procuring entity shall ensure that the most advantageous price for the Government is obtained& *)&. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.466'8 Suggested Audit -orking Paper Audit Activities Audit =uestion procurementM Le s @o Particulars of the Answer • *)&(& Sub0ect to the prior approval of the >ead of the Procuring /ntity. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'.as amended on September 4.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 @OT:B Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the +ACthrough a Resolution. etc.the procuring entity may.in order to promote economy and efficiency.December 2009 Page !#0 .466'8 GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.c%mp)ia'ce %' t#e= a.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& • E8A9UATING AUDIT E8IDENCE6 AUDIT -.and whenever 0ustified by the conditions provided in this Act.

Audit Sub4ob"ective • Audit Criteria (.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.& Observers shall be invited at least three #. provided that the% have een dul% invited in 4riting1 Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer 2.&. A2 AAD/T O%E:CT/6: To verif9 if the Procuring :ntit9 conducted Shopping as reCuired b9 regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for evaluationB Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 @OT:B Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Appropriate Audit -orking Papers 4.December 2009 Page !#3 PRICE GUOTATION60 ACCEPTANCE OF OFFER AND A>ARD OF CONTRACT :ST:D -ORK/@ PAP:R . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable 6HOPPING FOR GOOD6 II.

2 evidences that the suppliers identified were bona fideH cop9 of the reCuests for price Cuotations dul9 received b9 the suppliersH cop9 of the price CuotationsH evidence of posting reCuest for Cuotations &R>='H documentation of the anal9sis of the price Cuotations leading to the conclusion of what was to be accepted7 compliance with the specifications and other terms and conditions stated in the R>=H 02 documentation of the recommendation to the authori.dated 4. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* %btai'ed price @&%tati%'s $r%m at )east 4 b%'a $ide s&pp)iers (.& Procedural Guidelines < c& The Re.uest for Iuotation #R9I$ shall be sent to at least three #.at least three #.uiring immediate purchase under Section 74&( #a$ of the "RRthe R9I may be sent to Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .$ suppliers of nown .s&pp)ier d&ri'1 &'$%resee' c%'ti'1e'cies re@&iri'1 immediate p&rc#ase! "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.December 2009 Page !#5 .$ price .ed official of the Procuring :ntit9H 32 documentation of the acceptance of the offerH 52 Abstract of =uotationsH +2 notice of awardH (12 evidence of posting notice of award Audit Sub4ob"ective • Audit Criteria -.ualifications& >oweverduring unforeseen contingencies re. %ovember 466'8 • (& & & & 4& & & & .466'8 • 74&.(2 !2 #2 *2 .& Under Section 74&( #b$ of this "RR.uotations from bona fide suppliers shall be obtained& Audit Activities (2 >rom the documentation of the evaluation conducted b9 the procurement unit of the Procuring :ntit98 with supporting documents8 look for information on whether price Cuotations were obtained from at least # bona fide suppliers &or ( supplier during unforeseen contingencies'2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the procurement unit of the Procuring :ntit9 obtain price Cuotations from at least # bona fide suppliers &or ( supplier during unforeseen contingencies'M Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.

if available.ual to 9ifty Thousand Pesos #Php 76-666&66$ and below& !2 Ahead of the procurement8 reCuest the procuring entit9 for advance information on the schedule of an9 posting2 #2 Access the Phil :PS website8 the website of the procuring entit9 concerned8 if available and print the page where the notice was posted &to form part of the audit evidences'2 *2 Conduct ocular inspection on the schedule of posting2 Did the procurement unit of the Procuring :ntit9 post the notice of award inB a2 the Phil :PS for a period of 3 calendar da9sM b2 the website of the procuring entit9 for a period of 3 calendar da9sM c2 an9 conspicuous place in the premises of the procuring entit9 for a period of 3 calendar da9sM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . t#e "ebsite %$ t#e pr%c&ri'1 e'tit*0 i$ a(ai)ab)e c.000 T% (eri$* i$ t#e pr%c&ri'1 e'tit* p%sted t#e RFGs i'= a. a'* c%'spic&%&s p)ace i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r a peri%d %$ : ca)e'dar da*s Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'. %ovember 466'8 • (& & & & 4& & & & . t#e P#i)GEP60 b.& Procedural Guidelines < d& R9Is shall also be posted for a period of seven #3$ calendar days in the Philippine Government /lectronic Procurement System #PhilG1/PS$ websitewebsite of the procuring entity.uiring immediate purchase under Section 74&(#a$ of the "RR? or ii& R9Is with A+Cs e. F%r pr%c&reme't %$ %rdi'ar* %r re1&)ar %$$ice s&pp)ies a'd e@&ipme't "it# a' A+C %$ m%re t#a' P#p 700000.uirement shall not be applicable8 i& !hen there is an unforeseen contingency re.dated 4.and at any conspicuous place reserved for this purpose in the premises of the procuring entity& >oweverin the following instancesthe posting re.Audit Sub4ob"ective • Audit Criteria only one #($ supplier& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 2.December 2009 Page !#+ .

uotations.Audit Sub4ob"ective • Audit Criteria 4.December 2009 Page !*1 .2 $ook for the Abstract of =uotations and check for the indication of the lowest Cuotation2 02 Compare the date of the Abstract of =uotations with the deadline for submission of price Cuotations as indicated in the R>=s2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the procurement unit of the Procuring :ntit9 prepare an Abstract of =uotationsM Did the procurement unit of the Procuring :ntit9 prepare an Abstract of =uotations after the deadline for submission of price CuotationsM Did the procurement unit of the Procuring :ntit9 determine the lowest CuotationM 3.& Procedural Guidelines < e& After the deadline for submission of price .dated 4.uotation submitted& Audit Activities . T% (eri$* i$ t#e pr%c&ri'1 e'tit* prepared a' Abstract %$ G&%tati%'s a$ter t#e dead)i'e $%r s&bmissi%' %$ price @&%tati%'s a'd determi'ed t#e )%"est @&%tati%' Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.an Abstract of Iuotations shall be prepared setting forth the names of those who responded to the R9I.uotations.uotation for goods which complies with the specifications and other terms and conditions stated in the R9I& 32 Compare the name of supplier with the lowest Cuotation as indicated in the Abstract of =uotation with the name of supplier who was given the @otice of Award2 52 >rom the documentation of the evaluation of price Cuotations conducted b9 the procuring entit98 look for the verification on the compliance with the specifications and other terms and conditions stated in the R>=2 Did the procuring entit9 award the contract to the lowest Cuotation which complied with the specifications and other terms and conditions stated in the R>=M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e pr%c&ri'1 e'tit* made t#e a"ard %$ c%'tract t% t#e )%"est @&%tati%' "#ic# c%mp)ied "it# t#e speci$icati%'s a'd %t#er terms a'd c%'diti%'s stated i' t#e RFG Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.& Procedural Guidelines < h& Award of contract shall be made to the lowest .and the lowest .their corresponding price . %ovember 466'8 • (& & & & 4& & & & .dated 4. %ovember 466'8 • (& & & & 4& & & & .

if available. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. a'd de(e)%p appr%priate develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . t#e "ebsite %$ t#e pr%c&ri'1 e'tit*0 i$ a(ai)ab)e c. a'* c%'spic&%&s p)ace i' t#e premises %$ t#e pr%c&ri'1 e'tit* Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.Audit Sub4ob"ective • Audit Criteria 7. t#e P#i)GEP60 b. etc. %ovember 466'8 • (& & & & 4& & & & .& Procedural Guidelines < i& 9or information purposesall awards shall be posted in the PhilG1/PS websitewebsite of the procuring entity.and at any conspicuous place reserved for this purpose in the premises of the procuring entity e@cept for those with A+Cs e. establish the effects and c%mp)ia'ce %' t#e= a.ual to 9ifty Thousand Pesos #Php 76-666&66$ and below& Audit Activities +2 Ahead of the procurement8 reCuest the procuring entit9 for advance information on the schedule of an9 posting2 (12 Access the Phil :PS website8 the website of the procuring entit9 concerned8 if available and print the page where the notice was posted &to form part of the audit evidences'2 ((2 Conduct ocular inspection on the schedule of posting2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the procuring entit9 post the notice of award inB a2 the Phil :PSM b2 the website of the procuring entit9M c2 an9 conspicuous place in the premises of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.e the instances of -. F%r pr%c&reme't "it# a'd A+C %$ m%re t#a' P700000.December 2009 Page !*( .000 T% (eri$* i$ t#e pr%c&ri'1 e'tit* p%sted t#e '%tice %$ a"ard i'= a. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.dated 4.

shall be submitted for contracts ac.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.' and D4 of this "RR.Audit Sub4ob"ective • Audit Criteria a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (. • • 7*&*& /@cept for Aimited Source +idding under Section *' of this "RRsubmission of bid securities may be dispensed with& 7*&7& Performance and warranty securities.&. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.as prescribed in Sections .$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.& Observers shall be invited at least three #.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Other criteria. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.December 2009 Page !*! Prepared b9B ---------------------------------------------------------------------------------------------------------- .uired through the alternative Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . provided that the% have een dul% invited in 4riting1 Audit Activities PENA9TIE6 portion of this Audit Guide& Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 2.

and 7.7.&(6 #lease of real property$.&4 emergency cases$.December 2009 Page !*# .methods of procurement. #U% agencies$& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .7.&(.&' #small value procurement$.e@cept for Shopping under Section 74 and %egotiated Procurement under Sections 7.

O' t#e Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT OF GOOD6 AFTER T>O (2! FAI9ED +IDDING6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !** .

T% (eri$* i$ t#e pr%c&ri'1 e'tit* mai'tai'ed a re1istr* %$ s&pp)iers as basis $%r se)ecti'1 t#e s&pp)iers $%r 'e1%tiati%'s "mplementing Rules and Regulations #"RR$ of RA '()*. .Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT OF GOOD6 AFTER T>O (2! FAI9ED +IDDING6 @egotiated Procurement is a method of procurement of goods whereb9 the procuring entit9 directl9 negotiates a contract with a technicall98 legall98 and financiall9 capable supplier2 /t is resorted a$ter t"% $ai)ed biddi'1s &where there has been failure of public bidding for the second time' or in an9 of the following casesB a2 b2 c2 d2 e2 f2 g2 :mergenc9 Cases8 Agenc94to4Agenc98 Procurement Agent8 Defense Cooperation Agreement8 Small46alue Procurement8 @ O Participation Anited @ations Agencies2 I.as amended on September 4.466'8 • 7.December 2009 Page !*. PREPARATORH ACTI8ITH= MAINTAIN REGI6TRH OF 6UPP9IER6 The maintenance of the Registr9 of Suppliers is a continuing activit9 of the Procuring :ntit98 through its Procurement Anit2 A2 AAD/T O%E:CT/6: To determine if the Procuring :ntit9 developed and maintained a Registr9 of Suppliers %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for evaluationB • Documentation of the S9stem on the Registr9 of Suppliers maintained b9 the Procuring :ntit9 Audit Sub4ob"ective • Audit Criteria -.&(&4&4& All Procuring /ntities shall maintain a registry of suppliers as basis for selecting the suppliers for negotiations& Audit Activities (2 Obtain a cop9 of the registr9 of suppliers maintained b9 the Procuring :ntit92 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the Procuring :ntit9 maintain a registr9 of suppliers as basis for selecting the suppliers for negotiationsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

&.466' re1 Prescribing the Use of the Rules and Regulations on Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . provided that the% have een dul% invited in 4riting1 develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 2. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (. etc. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.e the instances of -. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.December 2009 Page !*0 . establish the effects and c%mp)ia'ce %' t#e= a. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.& Observers shall be invited at least three #.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.

2 %AC Resolution recommending to the ?OP: approval of the revised and agreed minimum technical specifications and A%C2 Audit Sub4ob"ective • Audit Criteria -. PREPARATORH ACTI8ITH= +IDDING DOCUMENT6 %idding documents are documents issued b9 the Procuring :ntit9 to provide prospective bidders all the necessar9 information that the9 need to prepare their bids2 A2 AAD/T O%E:CT/6:B (2 To verif9 if after the Procuring :ntit9)s conducted a mandator9 review of bidding documents due to two &!' failed biddings !2 To verif9 if the %idding Documents for the specific procurement $%))%"ed t#e sta'dard $%rms a'd ma'&a)s prescribed b9 the overnment Procurement Polic9 %oard & PP%' %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R Documents needed for evaluationB (2 The procuring entit9)s Customi.December 2009 Page !*3 .Audit Sub4ob"ective • Audit Criteria Settlement of Accounts Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s NEGOTIATED PROCUREMENT OF GOOD6 AFTER T>O (2! FAI9ED +IDDING6 II. T% (eri$* i$ t#e pr%c&ri'1 e'tit* c%'d&cted a ma'dat%r* re(ie" %$ t#e terms0 c%'diti%'s0 speci$icati%'s0 a'd c%st estimates %' t#e basis %$ "#ic# t#e +AC re(ised a'd a1reed %' Audit Activities (2 >rom the documentation of the earlier two &!' biddings conducted8 look for information on the %AC)s declaration that there have been two &!' failed biddings2 :ST:D -ORK/@ Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC declare two &!' failed biddingsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed %idding Documents for oodsH !2 Document evidencing %AC)s declaration that there has been two &!' failed biddingsH #2 %idding Documents for the specific procurement2 *2 %AC)s report on mandator9 review of the terms8 conditions8 specifications and cost estimatesH .

uired approvals& >owever the A+C cannot be increased by more than twenty percent #46K$ of the A+C for the last failed bidding& Audit Activities !2 >rom the Tevaluation report with supporting documents and dul9 reviewed b9 the %AC8 minutes of the meetings of the %AC8 and %AC Resolutions8 look for evidences of the conduct of the mandator9 review of the terms8 conditions8 specifications and cost estimates b9 concerned Offices of the Procuring :ntit92 #2 >rom the minutes of the %AC)s meetings and %AC Resolutions8 look for information on the deliberation8 revision and agreement on the minimum technical specifications and ad"usted A%CH and recommendation to the ?OP: for approval2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the Procuring :ntit9 conduct a mandator9 review of the terms8 conditions8 specifications8 and cost estimates after two failed biddingsM Did the %AC revise and agree on theB a2 minimum technical specificationsM b2 Revised A%CM Did the %AC submit the revised minimum technical specifications to the ?OP: for approvalM Did the %AC submit the ad"usted A%C to the ?OP: for approvalM *2 >rom the minutes of the %AC)s meetings and %AC Resolutions8 look for information on the %AC)s evaluation to ensure that the ad"ustment in the A%C was at a ma.Audit Sub4ob"ective • Audit Criteria t#e= a. adC&sted t#e A+C "mplementing Rules and Regulations #"RR$ of RA '()*. mi'im&m tec#'ica) speci$icati%'s0 b.and cost estimates.ed %idding Documents and the results of the earlier validation of this element showed that these are compliant with the Philippine +idding Are the %idding Documents7 /nformation completeB a2 Approved %udget for the ContractM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .sub0ect to the re.466'8 • 7.as amended on September 4.&(&(& After conduct of the mandatory review of the terms.imum of !1Q of the A%C for the second failed biddingM ON THE +IDDING DOCUMENT6 -.ad0ust the A+C. T% (eri$* i$ t#e +iddi'1 D%c&me'ts $%r t#e speci$ic pr%c&reme't i'c)&de t#e i'$%rmati%' a'd are acc%rdi'1 t% t#e $%rms i'dicated i' t#e (2 /f the procuring entit9 adopted customi.imum of !1Q of the A%C for the second failed bidding2 Did the %AC ensure that the ad"ustment in the A%C was at a ma.December 2009 Page !*5 .conditionsspecifications.as prescribed in Section .7 of this "RRthe +AC shall revise and agree on the minimum technical specificationsand if necessary.

!""#. a. Re@&est $%r 6&bmissi%' %$ Price G&%tati%'sB c.as amended on Septem er !.@&a)i$icati%'0 as "e)) as t#e date0 time a'd p)ace %$ t#e pre. i'c)&di'1= F%))%"i'1 c%mp)eti%' %$ t#e 'e1%tiati%'s0 t#e +AC s#a)) re@&est a)) s&pp)iers remai'i'1 i' t#e pr%ceedi'1s t% s&bmit %' a Audit Activities . I'str&cti%' t% +idders0 i'c)&di'1 sc%pe %$ bid. Appr%(ed +&d1et $%r t#e C%'tractB b. pr%p%sa)0 d%c&me'ts c%mprisi'1 t#e bid.ocuments for the Procurement of Goods issued b9 the PP%2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer b2 ReCuest for Submission of Price =uotationsM c2 :ligibilit9 ReCuirementsM d2 /nstruction to %idders8 including 4 scope of bid7 proposalM 4 documents comprising the bid7 proposalM 4 criteria for eligibilit9M 4 Price Cuotations evaluation methodolog97 criteriaM 4 post4 Cualification methodolog9M 4 date of the pre4bid conference8 if applicableM 4 time of the pre4bid conferenceM 4 Place of the pre4bid conferenceM 4 Deadline for submission of price CuotationsM 4 Place of submission of price CuotationsM 4 Date of opening of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !*+ .ocuments for the Procurement of Goods and Section (3&( of the "mplementing Rules and Regulations of RA '()*8 secure from the %AC Secretariat dul9 certified copies of the %idding Documents for the specific procurement and compare these with the customi.ed %idding Documents of the procuring entit92 /f the customi.. 3rd 'dition (Octo er !""#) iss&ed b* t#e GPP+ a'd Section () of the *mplementing +ules and +egulations of +A #(.Audit Sub4ob"ective • Audit Criteria Customi$ed Bidding Documents approved % the &PPB %r t#e Philippine Bidding Documents for the Procurement of &oods.-.ed %idding Documents are not compliant8 compare the procurement4specific %idding Documents with the Philippine +idding . E)i1ibi)it* Re@&ireme'tsB d.bid c%'$ere'ce ("#ere app)icab)e!0 s&bmissi%' a'd %pe'i'1 %$ price @&%tati%'sB d. pr%p%sa)0 criteria $%r e)i1ibi)it*0 price @&%tati%'s e(a)&ati%' met#%d%)%1*.criteri a i' acc%rda'ce "it# t#e Act0 a'd p%st.

uirements? d& "nstruction to +idders- Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . se)ecti%' %$ t#e s&ccess$&) %$$er %' t#e basis %$ s&c# best a'd $i'a) %$$ers meeti'1 t#e mi'im&m tec#'ica) re@&ireme'ts a'd '%t e?ceedi'1 t#e A+CB 6c%pe %$ "%rA0 "#ere app)icab)eB P)a's. i.1 .ocuments shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+& a& Approved +udget for the Contract? b& "nvitation to +id? c& /ligibility Re.December 2009 Page !. #.ceeding the A%CM e2 Scope of workM f2 Plans7Drawings and Technical SpecificationsM g2 >orm of %id8 Price >orm8 and $ist of oodsM h2 Deliver9 Schedule or Completion ScheduleM e. C.Dra"i'1s a'd Tec#'ica) 6peci$icati%'sB F%rm %$ +id0 Price F%rm0 a'd 9ist %$ G%%dsB De)i(er* Time %r C%mp)eti%' 6c#ed&)eB F%rm0 Am%&'t0 a'd 8a)idit* %$ Per$%rma'ce 6ec&rit* a'd >arra't*B F%rm %$ C%'tract a'd Ge'era) a'd 6pecia) C%'diti%'s %$ C%'tractB Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer price CuotationsM 4 Time of opening of price CuotationsM 4 Place of opening of price CuotationsM 4 following completion of the negotiations8 reCuesting all suppliers remaining in the proceedings to submit on a specified date8 a best and final offer with respect to a)) aspects %$ t#e pr%p%sa)sM 4 selection of the successful offer on the basis of such best and final offers meeting the minimum technical reCuirements and not e. 1.Audit Sub4ob"ective • Audit Criteria speci$ied date0 a best a'd $i'a) %$$er "it# respect t% a)) aspects %$ t#e pr%p%sa)s0 a'd d.2. "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • (3&(& The +idding . $.as amended on September 4.

rawings and Technical Specifications? g& 9orm of +id.Amount.Amount.as well as the date.where applicable? f& Plans:.&4 #emergency cases$7.*2.submission of bid securities may be dispensed with2P 0& 9orm.and 2alidity of Performance Security and !arranty? OAlso per Revised /RR of RA +(5*8 Section .&(6 #lease of real property$and 7.7.as prescribed in Sections .ualification.December 2009 Page !.and 2alidity Period of +id Security? OR:6/S:D %L the Revised /RR of RA +(5*8 item .criteria for eligibility.bid evaluation methodology:criteria in accordance with the Actand post1.' and D4 of this "RRshall be submitted for contracts ac.e@cept for Shopping under Section 74 and %egotiated Procurement under Sections 7.uired through the alternative methods of procurement.2 Performance and warranty securities.&' #small value procurement$.&(.( .time and place of the pre1bid conference #where applicable$.Audit Sub4ob"ective • Audit Criteria including scope of biddocuments comprising the bid.Price 9ormand Aist of Goods? h& Completion Schedule? i& 9orm. #U% agencies$2P and & 9orm of Contract and General and Special Conditions of Contract& Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer i2 >orm8 Amount8 and 6alidit9 of Performance Securit9 and -arrant9 "2 >orm of Contract and eneral and Special Conditions of ContractM Are the %idding Documents in the reCuired formB a2 ReCuest for Submission of Price =uotationM b2 /nstructions to %iddersM c2 Price =uotation Data SheetM d2 eneral Conditions of the ContractM e2 Special Conditions of ContractM f2 Schedule of ReCuirementsM g2 Technical SpecificationsM h2 Price =uotation >ormsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .*2*2 /@cept for Aimited Source +idding under Section *' of this "RR.submission of bids and opening of bids? e& Scope of wor .

December 2009 Page !. establish the effects and c%mp)ia'ce %' t#e= a.uest all supplierscontractors. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .are hereby mandated to use the Philippine +idding .on a specified date.uirements and should not e@ceed the A+C& &PPB +esolution No1 ".e the instances of non4compliance to Appropriate Audit -orking Papers %$ i'sta'ces %$ '%'. • < all branches. T% (eri$* t#e e$$ects Anal9.including government1owned and:or controlled corporations.&(&7& The procuring entity shall select the successful offer on the basis of such best and final offers which should meet the procuring entityEs minimum technical re.bureausoffices and instrumentalities of the Government.the procuring entity shall re.ocuments Third /dition for all of their procurement activities& Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT -.government financial institutions.agenciesdepartments.or consultants remaining in the proceedings to submit.state universities and collegeand local government units./ !""# dated 3" Septem er !""#.Audit Sub4ob"ective • Audit Criteria • 7.! .&(&*& 9ollowing completion of the negotiations.a best and final offer with respect to all aspects of their proposals& • 7.

c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.&.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4.# .$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 (. etc.Audit Sub4ob"ective • Audit Criteria b.& Observers shall be invited at least three #. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.December 2009 Page !. provided that the% have een dul% invited in 4riting1 Audit Activities non4compliance2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.

ational7>unctional Charts8 etc' which the %AC Secretariat used as bases for identif9ing and notif9ing the participants to the Pre4Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 Audit Sub4ob"ective • Audit Criteria -.* .466'8 Suggested Audit -orking Paper Audit Activities (2 Secure from the %AC Secretariat a dul9 certified cop9 of the 5inutes of Pre1 Procurement Conference and compare the date the conference was held with the date indicated in the print4out of website pages where the "nvitation or Re.as amended on September 4.uest for Submission of Price Iuotation Audit =uestion Did the %AC conduct the Pre4 Procurement Conference prior to the posting or issuance of the /nvitation or ReCuest for Submission of Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC c%'d&cted t#e Pre.PROCUREMENT CONFERENCE The pre4procurement conference is the forum where all officials involved in the procurement meet and discuss all aspects of a specific procurement activit98 which includes the technical specifications8 the Approved %udget for the Contract &A%C'8 the applicabilit9 and appropriateness of the recommended method of procurement and the related milestones8 the bidding documents8 and availabilit9 of the pertinent budget release for the pro"ect2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the Pre4Procurement Conference was conducted "it#i' t#e re@&ired timeH !2 To verif9 if the participa'ts to the Pre4Procurement Conference were as reCuiredH #2 To verif9 if during the Pre4Procurement Conference the participants8 led b9 the %ids and Awards Committee &%AC'8 performed the reCuired tasks and attained the ob"ectives of the Conference2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 cop9 of the approved 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC SecretariatH !2 /nvitation to %idH #2 Dul9 certified copies of the documents &Office Orders8 contracts8 Organi.NEGOTIATED PROCUREMENT OF GOOD6 AFTER T>O (2! FAI9ED +IDDING6 III.December 2009 Page !. PREPARATORH ACTI8ITH= PRE. Pr%c&reme't C%'$ere'ce pri%r t% t#e p%sti'1 %r t#e iss&a'ce %$ t#e I'(itati%' %r +e6uest for Su mission of Price =uotation "mplementing Rules and Regulations #"RR$ of RA '()*.

December 2009 Page !. T% (eri$* i$ d&ri'1 t#e Pre.e if the9 led to the confirmation of the description of the scope of the contract8 that there was no splitting8 the A%C8 and the contract duration2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . Pr%c&reme't C%'$ere'ce t#e participa'ts0 )ed b* t#e +AC0 per$%rmed t#e $%))%"i'1 tasAs a'd attai'ed t#e re)ated %bCecti(es= a.Audit Sub4ob"ective • Audit Criteria • 46&(& Prior to the Advertisement or the issuance of the "nvitation to +id for each procurement underta en through public bidding.ational7>unctional Charts8 etc' which it used as bases for identif9ing and notif9ing the participants to the Pre4 Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 #2 >rom the 5inutes of Pre1 Procurement Conference look for the names of the members of the %AC8 the members of the Secretariat8 the officials and7or consultants who prepared the %idding Documents and the draft /nvitation to %id2 Did the participants to the Pre4 Procurement Conference include theB a2 %ACM b2 SecretariatM c2 unit or officials who prepared the %idding Documents and the draft /nvitation to %idM d2 consultants hired b9 the procuring entit98 who prepared the %idding Documents and the draft /nvitation to %idM Did the participants led b9 the %AC discuss and confirm theB a2 Description of the scope of the contractM b2 That there was no splittingM c2 A%CM 4.the Secretariat.the unit or officials.for each procurement& !2 Secure from the %AC Secretariat dul9 certified copies of the documents &Office Orders8 contracts8 Organi.who prepared the +idding . Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed *2 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the scope of the contract8 the A%C8 and contract duration8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.ocuments and the draft "nvitation to +id.the +AC.through its Secretariat shall call for a Pre1 Procurement Conference& Suggested Audit -orking Paper Audit Activities was posted& Audit =uestion Price =uotationM Le s @o Particulars of the Answer 2. T% (eri$* i$ t#e participa'ts t% t#e Pre.466'8 • 46&(<& The pre1procurement conference shall be attended by the +AC.Pr%c&reme't C%'$ere'ce i'c)&ded t#e +AC0 t#e 6ecretariat0 t#e &'it %r %$$icia)s0 i'c)&di'1 c%'s&)ta'ts #ired b* t#e pr%c&ri'1 e'tit*0 "#% prepared t#e +iddi'1 D%c&me'ts a'd t#e dra$t I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#e descripti%' %$ t#e sc%pe %$ t#e c%'tract0 t#e A+C0 a'd c%'tract d&rati%'B b. ..including consultants hired by the procuring entity.

0 .e if the9 led to the confirmation of the readiness of the procurement at hand as toB a2 availabilit9 of appropriations and programmed budget for the contract8 b2 completeness of the %idding Documents and their adherence to the Philippine %idding Documents &P%Ds'7 customi. t#e a(ai)abi)it* %$ appr%priati%'s a'd pr%1rammed b&d1et $%r c%'tractB c.ed %idding DocumentsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . Re(ie"ed0 m%di$ied a'd a1reed %' t#e criteria $%r e)i1ibi)it* scree'i'10 e(a)&ati%'0 a'd p%st. ide'ti$ied t#e C&sti$icati%' $%r t#e c#a'1e i' t#e m%de %$ pr%c&reme't $r%m p&b)ic biddi'1 t% Ne1%tiated Pr%c&reme't a'd a1reed %' t#e rec%mme'dati%'s t% t#e HOPE.-. Reiterated a'd emp#asiIed t#e imp%rta'ce %$ c%'$ide'tia)it* a'd t#e app)icab)e sa'cti%'s a'd pe'a)ties0 as "e)) as a1reed %' meas&res t% e's&re c%mp)ia'ce "it# t#e $%re1%i'1B #. Re(ie"ed a'd ad%pted t#e pr%c&reme't sc#ed&)e0 i'c)&di'1 dead)i'es a'd time$rames0 $%r t#e di$$ere't acti(itiesB 1.Audit Sub4ob"ective • Audit Criteria t#at t#e pr%c&reme't is i' acc%rda'ce "it# t#e pr%Cect pr%c&reme't ma'a1eme't p)a' (PPMP! a'd a''&a) pr%c&reme't p)a' (APP!B c. Suggested Audit -orking Paper Audit Activities Audit =uestion d2 Contract durationM .ed %idding Documents2 Did the participants led b9 the %AC discuss and confirm that the procurement is in accordance with the PPMP and APPM Le s @o Particulars of the Answer Did the participants led b9 the %AC discuss and confirm that the procurement at hand is read9 as toB a2 availabilit9 of appropriatio ns and programme d budget for the contractM b2 completene ss of the %idding DocumentsM c2 adherence of the %idding Documents with the P%Ds7 customi.2 >rom the 5inutes of Pre1 Procurement Conference look for information on the presentation of the review of the PPMP and APP8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed readi'ess %$ t#e pr%c&reme't at #a'd %' t#e $%))%"i'1= c. c%mp)ete'ess %$ t#e +iddi'1 D%c&me'ts a'd t#eir ad#ere'ce t% re)e(a't 1e'era) pr%c&reme't 1&ide)i'esB d.December 2009 Page !.2.e if the9 led to the confirmation of the procurement is in accordance with the PPMP and APP2 02 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of information8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9. @&a)i$icati%'B $. C%'$irmed t#at t#ere "as '% sp)itti'1B a'd i.

uring the conference.etermine the readiness of the procurement at hand.led by the +AC.the following8 i$ availability of appropriations and programmed budget for the contract? ii$ completeness of the +idding .and post1.modify and agree on the criteria for eligibility screening.ualification? e& Review and adopt the procurement scheduleincluding deadlines and timeframes.for the different activities? and f& Reiterate and emphasi=e the importance of confidentiality and the applicable sanctions Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer 32 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the alternative method of procurement8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.the A+Cand contract duration? b& /nsure that the procurement is in accordance with the pro0ect and annual procurement plans? c& .3 .Audit Sub4ob"ective • Audit Criteria 7anual of Procedures for the Procurement of &oods >ol ! published by the GPP+8 • 5ethodology8 >ow is %egotiated Procurement underta enP < 4& The +AC convenes the appropriate officials for the pre1 procurement conference.ocuments and their adherence to relevant general procurement guidelines? iii$ < iv$ < d& Review.-.December 2009 Page !.e if the9 led to the confirmation and of the "ustifications for the change in the mode of procurement from public bidding to @egotiated Procurement and agreed on the recommendations to the ?OP:2 Did the participants led b9 the %AC discuss and confirm the "ustifications for the change in the mode of procurement from public bidding to @egotiated Procurement and agreed on the recommendati ons to the ?OP:M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .includingamong other aspects.the participants.evaluation. • 46&(& < .if deemed necessary& < *& The procedures for the conduct of public bidding should be observed& *mplementing +ules and +egulations (*++) of +A #(. as amended on Septem er !.shall8 a& Confirm the description and scope of the contract. !""#.

the +ACthrough a Resolution.Audit Sub4ob"ective • Audit Criteria and penalties.uirements Suggested Audit -orking Paper Audit Activities 52 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the criteria for eligibilit9 screening8 price Cuotation evaluation8 and post4Cualification8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.e if the9 led to the confirmation of the adoption of the procurement schedule including deadlines and timeframes for the different activities2 Audit =uestion Did the participants led b9 the %AC discuss and confirm the criteria forB a2 :ligibilit9 screeningM b2 Price =uotation evaluationM c2 Post4 Cualification M Did the participants led b9 the %AC discuss and confirm the adoption of the procurement schedule including deadlines and timeframes for the different activitiesM Le s @o Particulars of the Answer • • • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller .uantities and amounts.5 .December 2009 Page !.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re.as a general rulethe Procuring /ntities shall adopt public bidding as the general mode of procurement and shall see to it that the procurement program allows sufficient lead time for such public bidding& Alternative methods shall be resorted to only in the highly e@ceptional cases provided for in this Rule& *)&.and must be consistent with its duly approved yearly budget& *)&4& "n accordance with Section (6 of this "RR.e if the9 led to the confirmation of the criteria for eligibilit9 screening8 price Cuotation evaluation8 and post4 Cualification2 +2 >rom the 5inutes of Pre1 Procurement Conference look for information on the presentation of the procurement schedule8 including deadlines and timeframes for the different activities8 the no4 contact rule8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.as well as agree on measures to ensure compliance with the foregoing& • 3&4& %o procurement shall be underta en unless it is in accordance with the approved APP of the procuring entity& The APP shall bear the approval of the >ead of the Procuring /ntity or second1ran ing official designated by the >ead of the Procuring /ntity to act on his behalf.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.

& 9or specifically appropriated pro0ects.the heads of the respective "Us.uired that a 5ulti1Jear Obligational Authority #5JOA$ must already have been issued in accord with .the head of the agency shall identify and thereafter notify the implementing units #"Us$ of the amount allocated for the pro0ects they are to implement& On the basis of said notification.it is re.specially the necessity of public bidding and the re.+ .the 5JOA shall be a pre1re.Audit Sub4ob"ective • Audit Criteria of law and this "RR.the A+C shall be based on the budget levels under the %ational /@penditure Program #%/P$ submitted to Congress& *&.+5 Circular Aetter 466*16(4 prior to commencement of any procurement activity& Thus.can proceed with the procurement activities prior to issuance of the notice of award& *&7& 9or 5ulti1Jear Pro0ects #5JPs$for which the initial funding F sourced from either the e@isting:current yearEs budget or the %/P F is not sufficient to cover the total cost of the pro0ect.uirements for the alternative methods of procurement& &PPB Circular "(/!""# dated !" 0anuar% !""#. • < *&4& To facilitate the immediate implementation of pro0ects even pending approval of the GAA.agencies can proceed with the procurement activities prior to issuance of the notice of award using as basis the %/P figures& *&*& 9or lump1sum appropriations and Centrally 5anaged "tems #C5"s$ under the agencyEs budget.as procuring entities.e the importance of confidentialit9 and the applicable sanctions and penalties8 as well as the agreement on measures to ensure complianceM Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !.uisite for procurement of a multi1year contract& All procurement activities should be within the total pro0ect cost and categories reflected in the Suggested Audit -orking Paper Audit Activities (12 >rom the 5inutes of Pre1Procurement Conference look for information on the reiteration and emphasis of the importance of confidentialit9 and the applicable sanctions and penalties8 as well as the agreement on measures to ensure compliance2 Audit =uestion Did the participants led b9 the %AC reiterate and emphasi.

December 2009 Page !01 .Audit Sub4ob"ective • Audit Criteria 5JOA issued by .&4&(& %ame of the procurement program:pro0ect? .Subtitle +.&4& Annual Procurement Plan #APP$ F the re.services.&(& Allotment 1 document issued by the .epartment of +udget and 5anagement #.goods.uisite document that the agency must prepare to reflect the entire procurement activity #i&e&.&4&4& Pro0ect management office or end1user unit? .&4&7& Time schedule for each Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&4&.Title "+oo 2 of the Administrative Code of (')3.&4&*& Procurement method to be adopted? .civil wor s to be procured$ that it plans to underta e within the calendar year& This document contains the following information8 .no contract involving the e@penditure of public funds shall be entered into unless the proper accounting official of the procuring entity shall have certified as to the availability of funds and the allotment to which the e@penditure or obligation may be properly charged& • DefinitionB .+P for the said 5JP& *&D& As prescribed under Section *3Chapter ).+5$ which authori=es an agency to incur obligations for a specified amount as contained in a legislated appropriation& The allotment issued may either be trough the Agency +udget 5atri@ #A+5$ which covers the comprehensive release of specifically appropriated items in the agencyEs budget or through the Special Allotment Release Order #SARO$& .& General description of the procurement? .

the A+C shall be the amount reflected in the 5ulti1Jear Obligational Authority& GOCCs and AGUs #referred to in Section 4&4$ .&.December 2009 Page !0( . T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. (a)idit* %$ t#e pr%c&reme't acti(ities a'd GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9.becomes the General Appropriations Act #GAA$& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer E8A9UATING AUDIT E8IDENCE6 AUDIT -.&4&3& Approved +udget for the Contract& .&4&D& Source of fund? and .&.& Approved +udget for the Contract #A+C$ F refers to the following8 %Gs including SUCs #referred to in Section 4&($ .&.& "n the case of GOCCsincluding government financial institutions as well as AGUs.the A+C represents the amount of fund transfers which they receive from a national government agency to implement a program:pro0ect:activity& .which upon its enactment.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria procurement activity? .Article 2"" of the Constitution& The %/P shall be the basis of the general appropriations bill.c%mp)ia'ce %' t#e= a.for which a 5ulti1Jear Obligational Authority has been issued.&'& %ational /@penditure Program #%/P$ F the proposed national budget submitted by the President to Congress in accord with Section 44.&(& 9or specifically appropriated items as reflected in the annual budget of the national government agencythe amount corresponding to either the full cost of a single year or multi1year program:pro0ect: activity& 9or multi1year pro0ects.&.

T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. provided that the% have een dul% invited in 4riting1 Suggested Audit -orking Paper Audit Activities appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Audit =uestion Le s @o Particulars of the Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*. etc.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.Audit Sub4ob"ective • Audit Criteria %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.as amended on September 4.&.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& Observers shall be invited at least three #.December 2009 Page !0! .466'8 (.

466'8 Suggested Audit -orking Paper Audit Activities (2 >rom the %AC Resolution8 look for information on the %AC)s "ustification8 that is8 two failed biddings and the recommendation for the change in the mode of procurement to the ?OP: for approval2 Audit =uestion Did the %AC through a Resolution present two &!' failed biddings as the "ustification for the negotiated procurement and recommend change in the mode of procurement to the ?OP: for approvalM Le s @o Particular s of the Answer • .7 of the Act and this "RR& • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the procuring entity may resort to negotiated procurement.&( of this "RR& 7.NEGOTIATED PROCUREMENT FOR GOOD6 AFTER T>O (2! FAI9ED +IDDING6 I8.7&7& Should there occur a second failure of bidding.as amended on September 4. A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB @egotiated Procurement &Two4 >ailed %iddings' was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R Documents needed for evaluationB (2 cop9 of the approved 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC Secretariat !2 %AC Resolution recommending negotiated procurement8 dul9 approved b9 the ?OP: :ST:D -ORK/@ APPRO8A9 OF THE A9TERNATI8E METHOD Audit Sub4ob"ective • Audit Criteria -.as provided for in Section 7. T% (eri$* i$ t#r%&1# a Res%)&ti%' t#e +AC prese'ted t"% (2! $ai)ed biddi'1s as t#e C&sti$icati%' $%r t#e 'e1%tiated pr%c&reme't a'd rec%mme'ded c#a'1e i' t#e m%de %$ pr%c&reme't t% t#e HOPE $%r appr%(a) "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page !0# .&(& 34o <ailed Biddings1 !here there has been failure of public bidding for the second time as provided in Section .

as amended on September 4. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.the +ACthrough a Resolution.466'8 !2 >rom the %AC Resolution recommending @egotiated Procurement as the method of procurement8 look for the approval of the ?OP:2 Did the %AC recommend the alternative mode of procurementB @egotiated Procurement to the ?OP:M Did the ?OP: approve @egotiated Procurement as the method of procurementM • *)&.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued. rec%mme'ded t#e a)ter'ati(e m%de %$ pr%c&reme't= Ne1%tiated Pr%c&reme't t% t#e HOPE0 a'd b.December 2009 Page !0* . (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .the +ACthrough a Resolution. t#e HOPE appr%(ed t#e a)ter'ati(e met#%d %$ pr%c&reme't "mplementing Rules and Regulations #"RR$ of RA '()*.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.Audit Sub4ob"ective • Audit Criteria • *)&.c%mp)ia'ce %' t#e= a.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/ Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer 2. T% (eri$* i$ t#e +AC= a.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& E8A9UATING AUDIT E8IDENCE6 AUDIT -. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'.

. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.& Observers shall be invited at least three #.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. provided that the% have een dul% invited in 4riting1 Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. etc.466'8 (.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.Audit Sub4ob"ective • Audit Criteria t#e c%'tractB c. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.&.as amended on September 4.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.December 2009 Page !0.

6E9ECTION OF 6UPP9IER6 AND REGUE6T FOR 6U+MI66ION OF PRICE GUOTATION6 A2 AAD/T O%E:CT/6:B To verif9 if the %AC selected and invited suppliers as reCuired b9 regulationsH %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 Minutes of the %AC)s meetings on the selection and invitation of contractorsH !2 $ist of selected contractors to be invitedH #2 Copies of invitation letters2 Audit Sub4ob"ective • Audit Criteria -. T% (eri$* i$ t#e +AC &sed t#e Pr%c&ri'1 E'tit*Fs re1istr* %$ s&pp)iers as basis $%r se)ecti'1 t#e s&pp)iers t% be i'(ited $%r t#e 'e1%tiati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.&(&4&4& All Procuring /ntities shall maintain a registry of suppliers as basis for selecting the Audit Activities (2 >rom the Minutes of the %AC meetings8 Tevaluation reports supported with copies of the Procuring :ntit9)s Registr9 of suppliers8 look for information on the basis of identification of the suppliers to be invited for the negotiations and the list of identified suppliers based on the agreed4upon basis2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Did the %AC use the Procuring :ntit9)s registr9 of suppliers who have been classified under the t9pe of contract7pro"ect where the sub"ect contract falls8 as one of the bases for selecting the suppliers to be invited for the negotiationsM Did the %AC come up with a list of suppliers to be invited as Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .NEGOTIATED PROCUREMENT FOR GOOD6 AFTER T>O (2! FAI9ED +IDDING6 8.466'8 • 7.&(&4&(& < 7.December 2009 Page !00 .&(&4& The +AC shall invite and engage in negotiations with a sufficient number of suppliers to ensure effective competition& 7.as amended on September 4.

T% (eri$* i$ t#e +AC p%sted t#e +e6uest for Su mission of Price =uotations c%'ti'&%&s)* i' t#e P#i)GEP6 "ebsite a'd t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e0 $%r : ca)e'dar da*s starti'1 %' t#e date %$ p%sti'1 "mplementing Rules and Regulations #"RR$ of RA '()*.2 Access the websites at random during the 34da9 period to verif9 the postings2 Did the %AC post the Re.&(&4& The +AC shall invite and engage in negotiations with a sufficient number of suppliers to ensure effective competition& !2 Compare the names of the suppliers to whom invitations have been sent b9 the %AC &with evidence of receipt' with the list of selected suppliers2 Did the %AC invite and engage in negotiations with a sufficient number of suppliersM 4. T% (eri$* i$ t#e +AC i'(ited a)) s&pp)iers ide'ti$ied $r%m t#e Re1istr* (ies! a'd %t#er bases ad%pted b* t#e +AC $%r t#e p&rp%se "mplementing Rules and Regulations #"RR$ of RA '()*.uest for Submission of Price Iuotations continuousl9 in theB (2 Phil :PS website for 3 calendar da9s starting on the date of advertisementM !2 website of the procuring entit9 concerned8 if available8 for 3 calendar da9s Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4.as amended on September 4.466'8 • 7*&4& 9or alternative methods of procurementadvertisement and posting as #2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 *2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available2 Print the page where the notice was posted &to form part of the audit evidences'2 .December 2009 Page !03 .466'8 • 7.Audit Sub4ob"ective • Audit Criteria suppliers for negotiations& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer agreed during the meetings conducted for the purposeM 2.

id the +AC post the Re.December 2009 Page !05 .and at any conspicuous place reserved for this purpose in the premises of the procuring entity for a period of seven #3$ calendar days& Audit Activities OR >rom the printouts of the web pages indicating the dates of printing8 obtained from and dul9 certified b9 the %AC Secretariat as true and correct8 compare these dates with the reCuired dates of posting2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer starting on the date of advertisementM 3.however.uest for Submission of Price IuotationsB (2 continuousl9 for seven &3' calendar da9sM !2 at the conspicuous place reserved for the purpose in the premises of the procuring entit9M #2 as certified b9 the head of the %AC Secretariat of the procuring entit9M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • 7*&4& 9or alternative methods of procurementadvertisement and posting as prescribed in Section 4(&4&( of this "RR may be dispensed with8 Provided.shall post the invitation or re.shall post the invitation or re.uotations for Shopping under Sections 74&(#b$ and %egotiated Procurement under Sections 7.&' #small value procurement$ of 02 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 32 Conduct ocular inspection on the first da9 of posting2 52 Repeat the ocular inspections &ma9 be at random' during the 34da9 period to verif9 the postings2 +2 ReCuest for the certification of the head of the %AC Secretariat2 .&' #small value procurement$ of this "RR in the PhilG/PS website.if available. T% (eri$* i$ t#e +AC p%sted t#e +e6uest for Su mission of Price =uotations c%'ti'&%&s)* at a'* c%'spic&%&s p)ace reser(ed $%r t#e p&rp%se i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r : ca)e'dar da*s0 as certi$ied b* t#e #ead %$ t#e +AC 6ecretariat %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.uest for submission of price .&( #two1 failed biddings$ and 7.however.That the +AC.as amended on September 4.the website of the procuring entity concerned.&( #two1 failed biddings$ and 7.uest for submission of price .through its Secretariat.through its Secretariat.That the +AC.Audit Sub4ob"ective • Audit Criteria prescribed in Section 4(&4&( of this "RR may be dispensed with8 Provided.uotations for Shopping under Sections 74&(#b$ and %egotiated Procurement under Sections 7.

provided that the% have een dul% invited in 4riting1 appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.if available.Audit Sub4ob"ective • Audit Criteria this "RR in the PhilG/PS website. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. the effects and develop c%mp)ia'ce %' t#e= a.and at any conspicuous place reserved for this purpose in the premises of the procuring entity for a period of seven #3$ calendar days& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. T% (eri$* t#e e$$ects %$ non4compliance to establish Appropriate Audit -orking Papers i'sta'ces %$ '%'.the website of the procuring entity concerned. etc.& Observers shall be invited at least three #.e the instances of -.December 2009 Page !0+ . c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 (.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&.

the procuring entity shall re.a best and final offer with respect to all aspects of their proposals& 7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable NOTE6= (2 %ased on the following reCuirement of the 5anual of Procedures for the Procurement of Goods 2ol 4 published by the GPP+8 o 5ethodology8 >ow is %egotiated Procurement underta enP < *& <The procedures for the conduct of public bidding should be observed& for the rest of the procurement procedures up to the award of the contract8 the Audit Guide on the Procedures8 Competitive:Public +idding are to be observed with particular attention given to compliance b9 the %AC of the following provisions of the Revised /RR of RA +(5* during bid evaluation up to awardB • 7.&(&D& "n all stages of the negotiations.Audit Sub4ob"ective • Audit Criteria Audit Activities NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer 4.on a specified date. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.&(&*& 9ollowing completion of the negotiations.uirements and should not e@ceed the A+C& • and to the following provision of the Revised /RR of RA +(5*B • 7.observers shall be invited Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uest all suppliers remaining in the proceedings to submit.&(&7& The procuring entity shall select the successful offer on the basis of such best and final offers which should meet the procuring entityEs minimum technical re.December 2009 Page !31 Prepared b9B ---------------------------------------------------------------------------------------------------------- .

or other information relative to the negotiations that are communicated by the procuring entity to a supplier shall be communicated on an e.&' #small value procurement$.uantities and amounts.documents.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re.as prescribed in Sections .' and D4 of this "RR.&(6 #lease of real property$.and 7.guidelines.December 2009 Page !3( .7.as amended on September 4.e@cept for Shopping under Section 74 and %egotiated Procurement under Sections 7.uirements for the alternative methods of procurement& 7*&*& /@cept for Aimited Source +idding under Section *' of this "RRsubmission of bid securities may be dispensed with& 7*&7& Performance and warranty securities. #U% agencies$& • • • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uired through the alternative methods of procurement.& Any re.ual basis to all other suppliers engaging in negotiations with the procuring entity relative to the procurement& 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller .uirements of law and this "RRspecially the necessity of public bidding and the re.!2 Ot#er re)e(a't criteria "mplementing Rules and Regulations #"RR$ of RA '()*.clarifications.&(&.&(.466'8 • 7.uirements.shall be submitted for contracts ac.&4 emergency cases$.7.

O' t#e Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT OF GOOD6 EMERGENCH CA6E6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !3! .

made ca)amities %r %t#er ca&ses "#ere immediate acti%' is 'ecessar* t% pre(e't dama1e t% %r )%ss %$ )i$e %r Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Suggested Audit -orking Paper Audit Activities (2 >rom the %AC Resolution8 look for information on the %AC)s validation of an emergenc9 as followsB a2 imminent danger to life or propert9 during a state of calamit98 or b2 time is of the essence arising from natural or man4made calamities or other causes where Audit =uestion Did the %AC validation of an emergenc9 as followsB a2 imminent danger to life or propert9 during a state of calamit9M or b2 time is of the essence arising from natural or Le s @o Particular s of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC (a)idated t#e e?iste'ce %$ a' emer1e'c* as $%))%"s= a.December 2009 Page !3# . time is %$ t#e esse'ce arisi'1 $r%m 'at&ra) %r ma'. After ! failed biddings8 Agenc94to4Agenc98 Procurement Agent8 Defense Cooperation Agreement8 Small46alue Procurement8 @ O Participation8 Anited @ations Agencies2 APPRO8A9 OF THE A9TERNATI8E METHOD OF PROCUREMENT A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB @egotiated Procurement in :mergenc9 Cases was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 cop9 of the approved 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC SecretariatH !2 %AC Resolution recommending negotiated procurement8 dul9 approved b9 the ?OP:H Audit Sub4ob"ective • Audit Criteria -. immi'e't da'1er t% )i$e %r pr%pert* d&ri'1 a state %$ ca)amit*0 %r b.Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT OF GOOD6 EMERGENCH CA6E6 @egotiated Procurement is a method of procurement of goods whereb9 the procuring entit9 directl9 negotiates a contract with a technicall98 legall98 and financiall9 capable supplier2 /t ma9 be resorted to in emer1e'c* cases or in an9 of the following casesB a2 b2 c2 d2 e2 f2 g2 I.

(a)idated t#e C&sti$icati%' $%r ad%pti%' %$ t#e ad%pti%' %$ Ne1%tiated Pr%c&reme't0 a' a)ter'ati(e met#%d %$ pr%c&reme't0 b.as amended on September 4.&4& /mergency Cases& "n case of imminent danger to life or property during a state of calamity.or when time is of the essence arising from natural or man1made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property. (a)idated t#at t#ere "as '% sp)itti'10 a'd c.466'8 !2 >rom the %AC Resolution8 look for information on the %AC)s validation of the "ustification for adoption of the alternative method of procurementB @egotiated Procurement and recommendation of said method to the ?OP: for approval2 Did the %AC validate the "ustification for adoption of the alternative method of procurementB @egotiated ProcurementM Did the %AC validate that there was no FsplittingGM Did the %AC recommend @egotiated Procurement8 an alternative method8 to the ?OP: for approvalM • *)&.as amended on September 4.the +ACthrough a Resolution.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.or to restore vital public servicesinfrastructure facilities and other public utilities& Suggested Audit -orking Paper Audit Activities immediate action is necessar9 to prevent damage to or loss of life or propert98 or to restore vital public services8 infrastructure facilities and other public utilities Audit =uestion man4made calamities or other causes where immediate action is necessar9 to prevent damage to or loss of life or propert98 or to restore vital public services8 infrastructure facilities and other public utilitiesM Le s @o Particular s of the Answer 2.Audit Sub4ob"ective • Audit Criteria pr%pert*0 %r t% rest%re (ita) p&b)ic ser(ices0 i'$rastr&ct&re $aci)ities a'd %t#er p&b)ic &ti)ities "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* i$ t#e +AC= a.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • 7.December 2009 Page !3* . t#r%&1# a Res%)&ti%' rec%mme'ded said met#%d t% t#e HOPE $%r appr%(a) "mplementing Rules and Regulations #"RR$ of RA '()*.

specially the necessity of public bidding and the re.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.the +ACthrough a Resolution.466'8 • *)&.Audit Sub4ob"ective • Audit Criteria • Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller .e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& E8A9UATING AUDIT E8IDENCE6 AUDIT -. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.December 2009 Page !3. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9.uirements of law and this "RR.uantities and amounts.uirements for the alternative methods of procurement& #2 >rom the %AC Resolution recommending the negotiated procurement as an alternative method8 look for the approval of the ?OP:2 Did the ?OP: approve %egotiated Procurement as the method of procurementM 4. T% (eri$* i$ t#e HOPE appr%(ed t#e a)ter'ati(e met#%d %$ pr%c&reme't= Ne1%tiated Pr%c&reme't "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re.c%mp)ia'ce %' t#e= a. .as amended on September 4.

December 2009 Page !30 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines . provided that the% have een dul% invited in 4riting1 Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable NOTE6B (2 %ased on the following reCuirement of the 5anual of Procedures for the Procurement of Goods 2ol& 4 published by the GPP+8 o 5ethodology8 >ow is %egotiated Procurement underta enP < GUIDE IN THE AUDIT OF PROCUREMENT First Update . a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.Audit Sub4ob"ective • Audit Criteria c.& Observers shall be invited at least three #.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.466'8 (.&.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. etc.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.

and 7.&4 emergency cases$.uired through the alternative methods of procurement.7.e@cept for Shopping under Section 74 and %egotiated Procurement under Sections 7.&(.as prescribed in Sections .&(6 #lease of real property$.&' #small value procurement$.December 2009 Page !33 . #U% agencies$& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .' and D4 of this "RR.shall be submitted for contracts ac.7.*& <The procedures for the conduct of public bidding should be observed& for the rest of the procurement procedures up to the award of the contract8 the Audit uide on the ProceduresB Competitive7Public %idding are to be observed2 !2 Other relevant criteria "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.466'8 • • 7*&*& /@cept for Aimited Source +idding under Section *' of this "RRsubmission of bid securities may be dispensed with& 7*&7& Performance and warranty securities.

TO.AGENCH Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !35 .O' t#e Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 AGENCH.

#2.ed procurement of Common4 Ase Supplies for the OP in accordance with $etters of /nstruction @o2 3.a1e'c* pr%c&reme't or in an9 of the following casesB a2 b2 c2 d2 e2 f2 g2 After ! failed biddings8 :mergenc98 Procurement Agent8 Defense Cooperation Agreement8 Small46alue Procurement8 @ O Participation Anited @ations Agencies2 Procurement of goods from another agenc9 of the overnment of the Philippines & OP'8 such as the Procurement Service8 Department of %udget and Management &PS4D%M'8 which is tasked with a centrali.December 2009 Page !3+ ..Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 AGENCH.cludes OCCs incorporated under +atas Pambansa +lg2 058 otherwise known as the FCorporation Code of the PhilippinesG2 NOTE= @o Audit uide has been developed for this alternative method of procurement since the PP% has 9et to issue the uidelines pursuant to the Revised /RR of RA +(5*2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ecutive Order @o2 #.+8 series of (+5+2 >or purposes of Section . of the Revised /RR of RA +(5*8 the term agenc9 e. and :.AGENCH @egotiated Procurement ma9 be resorted to in a' a1e'c*.t%.TO.

December 2009 Page !51 .8A9UE PROCUREMENT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .O' t#e Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 6MA99.

118111 .! of the Revised /RR of RA +(5* and the amount involved does not e.18111 /n the case of baranga9s8 >ift9 Thousand Pesos &P.18111 .imum Amount &in Philippine Peso' Province Cit9 Municipalit9 .18111 .118111 *118111 #118111 !118111 .December 2009 Page !5( .118111 *118111 #118111 !118111 (118111 (118111 (118111 (118111 .118111 .18111'2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .118111 . F?G of said /RR8 the procuring entit9 shall draw up a list of at least three &#' suppliers of known Cualifications which will be invited to submit proposals2 The thresholds for this method of procurement areB a' >or @ As8 OCCs8 >/s8 and SACs8 >ive ?undred Thousand Pesos &P. 8A9UE PROCUREMENT @egotiated Procurement ma9 be resorted to in a sma)) – (a)&e pr%c&reme't or in an9 of the following casesB a2 b2 c2 d2 e2 f2 After ! failed biddings8 Agenc94to4Agenc98 Procurement Agent8 Defense Cooperation Agreement8 @ O Participation Anited @ations Agencies2 Small46alue Procurement 4 -here the procurement does not fall under Shopping in Section .th Class 0th Class Ma.Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 6MA99.ceed the thresholds prescribed in Anne.118111'2 b' >or $ As8 in accordance with the following scheduleB DO> Classification of $ As (st Class !nd Class #rd Class *th Class .

A2 AAD/T O%E:CT/6:B APPRO8A9 OF THE A9TERNATI8E METHOD To verif9 if the adoption of the Alternative MethodB Small46alue Procurement was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 cop9 of the approved Annual Procurement Plan &APP'H !2 evidences to support the conclusion that public bidding cannot be ultimatel9 pursuedH #2 evidences to support that procurement does not fall under Shopping in Section .466'8 • *)&.! of the /RRH *2 anal9sis leading to the conclusion that the amounts involved are within the threshold provided in Anne. T% (eri$* i$ t#e +AC (a)idated= a.-. t#e am%&'ts i'(%)(ed did '%t e?ceed t#e t#res#%)ds i' A''e? DHE %$ t#e Re(ised IRR %$ RA -23. Suggested Audit -orking Paper Audit Activities (2 >rom the evaluation report with supporting documents and minutes of the %AC)s meetings and relevant %AC Resolution&s'8 look for information on the %AC)s validation that the original mode of procurement per APP was public bidding but cannot be ultimatel9 pursued and of the e. t#e e?iste'ce %$ t#e c%'diti%'s t% C&sti$* 6ma)).ceed the thresholds in Anne. F?G of Le s @o Particular s of the Answer c.& The method of procurement to be used shall be as indicated in the Approved Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .2 Minutes of %AC meetings on the deliberations madeH 02 %AC Resolution recommending the alternative method of procurementB Small46alue Procurement8 dul9 approved b9 the ?OP:2 Audit Sub4ob"ective • Audit Criteria -.2. t#at t#ere "as '%t sp)itti'1 "mplementing Rules and Regulations #"RR$ of RA '()*.! of the /RRM Or b2 the amounts involved did not e. t#at t#e %ri1i'a) m%de %$ pr%c&reme't per APP "as p&b)ic biddi'1 b&t ca''%t be &)timate)* p&rs&edB b. F?G of the Revised /RR of RA +(5*H .istence of the conditions to "ustif9 Small46alue ProcurementB a2 procurement does not fall under Shopping in Section .as amended on September 4. 8a)&e Pr%c&reme't= b. pr%c&reme't d%es '%t $a)) &'der 6#%ppi'1 i' 6ecti%' 72 %$ t#e IRRB b.December 2009 Page !5! .istence of the conditions to "ustif9 Small46alue Procurement2 Audit =uestion Did the %AC validate that the original mode of procurement per APP was public bidding but cannot be ultimatel9 pursuedM Did the %AC validate the e.I.

depending on the procuring entityEs mandate and nature of operations.Audit Sub4ob"ective • Audit Criteria Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.uotations for readily available off1the1shelf goods or ordinary:regular e.as well Suggested Audit -orking Paper Audit Activities Audit =uestion the Revised /RR of RA +(5*M Did the %AC validate that there was not FsplittingGM Le s @o Particular s of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and consumed in the day1to1day operations of said procuring entity& >owever.uipment to be procured directly from suppliers of nown .commodities.the +ACthrough a Resolution.uests for the submission of price .uipment not available in the Procurement Service involving an amount not e@ceeding the thresholds prescribed in Anne@ B>C of this "RR& • 74&4& The phrase Bordinary or regular office suppliesC shall be understood to include those supplies.uipment and furniture.office supplies shall not include services such as repair and maintenance of e.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& • 74&(& Shopping is a method of procurement of goods whereby the procuring entity simply re.uiring immediate purchase8 Providedhowever.ualifications& This method of procurement shall be employed in any of the following cases8 a$ !hen there is an unforeseen contingency re.That the amount shall not e@ceed the thresholds prescribed in Anne@ B>C of the Revised "RR or RA '()*& b$ Procurement of ordinary or regular office supplies and e.are necessary in the transaction of its official businesses.December 2009 Page !5# .or materials which.

shall Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .hauling.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re.uantities and amounts. rec%mme'ded t#e a)ter'ati(e m%de %$ pr%c&reme't= 6ma)).December 2009 Page !5* .0anitorialsecurity.uirements of law and this "RR.as amended on September 4.&'& Small >alue Procurement1 !here the procurement does not fall under Shopping in Section 74 of this "RR and the amount involved does not e@ceed the thresholds prescribed in Anne@ B>C of this "RR& 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller . T% (eri$* i$ t#e +AC= a.specially the necessity of public bidding and the re.Audit Sub4ob"ective • Audit Criteria as truc ing.the +ACthrough a Resolution.466'8 !2 >rom the %AC Resolution recommending Small4 6alue Procurement as the method of procurement8 look for the approval of the ?OP:2 Did the %AC recommend the alternative mode of procurementB Small46alue Procurement to the ?OP:M Did the ?OP: approve Small4 6alue Procurement as the method of procurementM • *)&. t#e HOPE appr%(ed t#e a)ter'ati(e met#%d %$ pr%c&reme't "mplementing Rules and Regulations #"RR$ of RA '()*.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.8a)&e Pr%c&reme't t% t#e HOPE0 a'd b.uirements for the alternative methods of procurement& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer • 2.and related or analogous services& • 7.

(a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. etc.December 2009 Page !5. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'.c%mp)ia'ce %' t#e= a.&.466'8 (.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. . provided that the% have een dul% invited in 4riting1 GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9.as amended on September 4. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.& Observers shall be invited at least three #.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer E8A9UATING AUDIT E8IDENCE6 AUDIT -.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* %btai'ed Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the procurement :ST:D -ORK/@ PAP:R Audit Activities (2 >rom the documentation of the Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .2 documentation of the anal9sis of the price Cuotations leading to the conclusion of what was to be accepted7 compliance with the specifications and other terms and conditions stated in the R>=H 02 documentation of the recommendation to the authori.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities this Audit Guide& Audit =uestion Le s @o Particular s of the Answer 4.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable NEGOTIATED PROCUREMENT FOR GOOD6 6MA99. PRICE GUOTATION6 AND ACCEPTANCE OF OFFER A2 AAD/T O%E:CT/6: To verif9 if the Procuring :ntit9 conducted Small46alue Procurement as reCuired b9 regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for evaluationB (2 evidences that the suppliers identified were bona fideH !2 cop9 of the reCuests for price Cuotations dul9 received b9 the suppliersH #2 cop9 of the price CuotationsH *2 evidence of posting reCuest for Cuotations &R>='H .8A9UE PROCUREMENT II.ed official of the Procuring :ntit9H 32 documentation of the acceptance of the offer2 52 Abstract of =uotationsH +2 notice of awardH (12 evidence of posting notice of award Audit Sub4ob"ective • Audit Criteria -.December 2009 Page !50 .

$ suppliers.466'8 • 7.Audit Sub4ob"ective • Audit Criteria price @&%tati%'s (RFGs! $r%m at )east t#ree (4! b%'a $ide s&pp)iers "mplementing Rules and Regulations #"RR$ of RA '()*.uirement shall not be applicable8 !2 Ahead of the procurement8 reCuest the procuring entit9 for advance information on the schedule of an9 posting2 #2 Access the Phil :PS website8 the website of the procuring entit9 concerned8 if available and print the page where the notice was posted &to form part of the audit evidences'2 *2 Conduct ocular inspection on the schedule of posting2 Did the procurement unit of the Procuring :ntit9 post the notice of award inB a2 the Phil :PS for a period of 3 calendar da9sM b2 the website of the procuring entit9 for a period of 3 calendar da9sM c2 an9 conspicuous place in the premises of the procuring entit9 for a period of 3 calendar da9sM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !53 .as amended on September 4.dated 4. %ovember 466'8 • (& & & & 4& & & & .< Audit Activities evaluation conducted b9 the procurement unit of the Procuring :ntit98 with supporting documents8 look for information on whether price Cuotations were obtained from at least # bona fide suppliers2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s unit of the Procuring :ntit9 obtain price Cuotations from at least # bona fide suppliersM 2. t#e "ebsite %$ t#e pr%c&ri'1 e'tit*0 i$ a(ai)ab)e c.if available.ualifications which will be invited to submit proposals. t#e P#i)GEP60 b.and at any conspicuous place reserved for this purpose in the premises of the procuring entity& >oweverin the following instancesthe posting re. a'* c%'spic&%&s p)ace i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r a peri%d %$ : ca)e'dar da*s Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.000 T% (eri$* i$ t#e pr%c&ri'1 e'tit* p%sted t#e RFGs i'= a.of nown .&'&(& The procuring entity shall draw up a list of at least three #.& Procedural Guidelines < d& R9Is shall also be posted for a period of seven #3$ calendar days in the Philippine Government /lectronic Procurement System #PhilG1/PS$ websitewebsite of the procuring entity. F%r pr%c&reme't "it# a' A+C %$ m%re t#a' P#p 700000.

December 2009 Page !55 .uotations. T% (eri$* i$ t#e pr%c&ri'1 e'tit* made t#e a"ard %$ c%'tract t% t#e )%"est @&%tati%' "#ic# c%mp)ied "it# t#e speci$icati%'s a'd %t#er terms a'd c%'diti%'s stated i' t#e RFG Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.ual to 9ifty Thousand Pesos #Php 76-666&66$ and below& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 4.an Abstract of Iuotations shall be prepared setting forth the names of those who responded to the R9I. %ovember 466'8 • (& & & & 4& & & & .uotation submitted& . %ovember 466'8 • (& & & & 4& & & & .2 $ook for the Abstract of =uotations and check for the indication of the lowest Cuotation2 02 Compare the date of the Abstract of =uotations with the deadline for submission of price Cuotations as indicated in the R>=s2 Did the procurement unit of the Procuring :ntit9 prepare an Abstract of =uotationsM Did the procurement unit of the Procuring :ntit9 prepare an Abstract of =uotations after the deadline for submission of price CuotationsM Did the procurement unit of the Procuring :ntit9 determine the lowest CuotationM 3. T% (eri$* i$ t#e pr%c&ri'1 e'tit* prepared a' Abstract %$ G&%tati%'s a$ter t#e dead)i'e $%r s&bmissi%' %$ price @&%tati%'s a'd determi'ed t#e )%"est @&%tati%' Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.dated 4.& Procedural Guidelines < h& Award of contract shall 32 Compare the name of supplier with the lowest Cuotation as indicated in the Abstract of =uotation with the name of supplier who was awarded the contract2 52 >rom the documentation of the evaluation of price Cuotations conducted b9 the procuring entit98 look for the verification on the compliance with the specifications and other terms and conditions stated in the R>=2 Did the procuring entit9 award the contract to the lowest Cuotation which complied with the specifications and other terms and conditions stated in the R>=M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and the lowest .Audit Sub4ob"ective • Audit Criteria i& < ii& R9Is with A+Cs e.& Procedural Guidelines < e& After the deadline for submission of price .uotations.their corresponding price .dated 4.

ual to 9ifty Thousand Pesos #Php 76-666&66$ and below& +2 Ahead of the procurement8 reCuest the procuring entit9 for advance information on the schedule of an9 posting2 (12 Access the Phil :PS website8 the website of the procuring entit9 concerned8 if available and print the page where the award was posted &to form part of the audit evidences'2 ((2 Conduct ocular inspection on the schedule of posting2 Did the procuring entit9 post the award inB a2 the Phil :PSM b2 the website of the procuring entit9M c2 an9 conspicuous place in the premises of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. establish the effects and c%mp)ia'ce %' t#e= a. F%r pr%c&reme't "it# a' A+C %$ m%re t#a' P#p 700000. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .e the instances of -.if available. %ovember 466'8 • (& & & & 4& & & & .December 2009 Page !5+ . a'* c%'spic&%&s p)ace i' t#e premises %$ t#e pr%c&ri'1 e'tit* Guidelines for Shopping and Small 2alue Procurement covered by GPP+ Resolution %o& 6'1466'.dated 4.Audit Sub4ob"ective • Audit Criteria be made to the lowest .uotation for goods which complies with the specifications and other terms and conditions stated in the R9I& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 7.and at any conspicuous place reserved for this purpose in the premises of the procuring entity e@cept for those with A+Cs e.000 T% (eri$* i$ t#e pr%c&ri'1 e'tit* p%sted t#e a"ard i'= a. t#e "ebsite %$ t#e pr%c&ri'1 e'tit*0 i$ a(ai)ab)e c. t#e P#i)GEP60 b.& Procedural Guidelines < i& 9or information purposesall awards shall be posted in the PhilG1/PS websitewebsite of the procuring entity. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.

a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. provided that the% have een dul% invited in 4riting1 Audit Activities non4compliance2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. etc. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.Audit Sub4ob"ective • Audit Criteria b.December 2009 Page !+1 .

December 2009 Page !+( .Ot#er criteria= • 7*&*& /@cept for Aimited Source +idding under Section *' of this "RR.submission of bid securities may be dispensed with& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

December 2009 Page !+! .O' t#e Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 DEFEN6E COOPERATION AGREEMENT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 DEFEN6E COOPERATION AGREEMENT @egotiated Procurement is a method of procurement of goods whereb9 the procuring entit9 directl9 negotiates a contract with a technicall98 legall98 and financiall9 capable supplier2 /t ma9 be resorted to in an9 of the following casesB &(' Two >ailed %iddings8 &!' :mergenc9 Cases8 &#' Agenc94to4Agenc98 &*' Procurement Agent8 &.irect Contracting ma9 be used as reference8 to consider the following criteria embodied in Section .' Defense Cooperation Agreement8 &0' Small46alue Procurement8 &3' @ O Participation8 &5' Anited @ations Agencies2 Defense Cooperation Agreement 4 Apon prior approval b9 the President of the Philippines8 and when the procurement for use b9 the A>P involves ma"or defense eCuipment or materiel and7or defense4related consultanc9 services8 when the e.December 2009 Page !+# .#25 of the Revised /RR of RA +(5*B (2 There is prior approval b9 the President of the Philippines8 !2 The procurement is b9 the A>P and involves ma"or defense eCuipment or materielH #2 The Secretar9 of @ational Defense has determined that the interests of the countr9 shall be protected b9 negotiating directl9 with an agenc9 or instrumentalit9 of another countr9 with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relationsH *2 the performance b9 the supplier of its obligations under the procurement contract shall be covered b9 a performance securit9 in accordance with Section #+ of the Revised /RR of RA +(5* Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .pertise or capabilit9 reCuired is not available locall98 and the Secretar9 of @ational Defense has determined that the interests of the countr9 shall be protected b9 negotiating directl9 with an agenc9 or instrumentalit9 of another countr9 with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relationsB Provided8 however8 That the performance b9 the supplier of its obligations under the procurement contract shall be covered b9 a performance securit9 in accordance with Section #+ of the Revised /RR of RA +(5*2 @OT:B The Audit Guide on .

O' t#e Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 UNITED NATION6 AGENCIE6 FOR GOOD6 Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT FOR GOOD6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !+* .

December 2009 Page !+.ed products where the number of suppliers is limited8 such as vaccines or drugs2 NOTEB @o Audit uide has been developed for this method of procurement in the absence of regulations specif9ing the reCuirements and the related procedures2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed agencies of the Anited @ations of an9 of the followingB &a' small Cuantities of off4the4shelf goods8 primaril9 in the fields of education and healthH and &b' speciali.' Defense Cooperation Agreement8 &0' Small46alue Procurement8 &3' @ O Participation8 &5' Anited @ations Agencies2 Anited @ations Agencies 4 Procurement from speciali.UNITED NATION6 AGENCIE6 @egotiated Procurement is a method of procurement of goods whereb9 the procuring entit9 directl9 negotiates a contract with a technicall98 legall98 and financiall9 capable supplier in an9 of the following casesB &(' Two >ailed %iddings8 &!' :mergenc9 Cases8 &#' Agenc94to4Agenc98 &*' Procurement Agent8 &. .

PU+9IC +IDDING FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page !+0 .O' t#e Pr%c&reme't Pr%ced&res= COMPETITI8E .

Pr%c&reme't Pr%ced&res= COMPETITI8E .ocuments for the Procurement of "nfrastructure Pro0ects issued b9 the PP%2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer Are the %idding Documents7 /nformation completeB a2 Approved %udget for the ContractM /nvitation to %idM :ligibilit9 ReCuirementsM /nstruction to %idders8 including 4 scope of bidM 4 documents comprising the bidM 4 criteria for eligibilit9M 4 bid evaluation methodolog97 criteriaM 4 post4 Cualification methodolog9M b2 c2 d2 Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update . !""#.as amended on Septem er !.ed %idding Documents of the procuring entit92 /f the customi. a.. I'(itati%' t% +idB c. E)i1ibi)it* Re@&ireme'tsB d. I'str&cti%' t% +idders0 i'c)&di'1 sc%pe %$ bid0 d%c&me'ts c%mprisi'1 t#e bid0 criteria $%r Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines :ST:D -ORK/@ PAP:R Audit Activities (2 /f the procuring entit9 adopted customi. Appr%(ed +&d1et $%r t#e C%'tractB b. PU+9IC +IDDING FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 I.ed %idding Documents for /nfrastructure Pro"ectsH !2 %idding Documents for the specific procurement2 Audit Sub4ob"ective • Audit Criteria -. 3rd 'dition (Octo er !""#) iss&ed b* t#e GPP+ a'd Section () of the *mplementing +ules and +egulations of +A #(.ocuments for the Procurement of "nfrastructure Pro0ects and Section (3&( of the "mplementing Rules and Regulations of RA '()*8 secure from the %AC Secretariat dul9 certified copies of the %idding Documents for the specific procurement and compare these with the customi.December 2009 Page !+3 .ed %idding Documents and the results of the earlier validation of this element showed that these are compliant with the Philippine +idding . T% (eri$* i$ t#e +iddi'1 D%c&me'ts $%r t#e speci$ic pr%c&reme't i'c)&de t#e i'$%rmati%' a'd are acc%rdi'1 t% t#e $%rms i'dicated i' t#e Customi$ed Bidding Documents approved % the &PPB %r t#e Philippine Bidding Documents for the Procurement of *nfrastructure Pro?ects. PREPARATORH ACTI8ITH= +IDDING DOCUMENT6 %idding documents are documents issued b9 the Procuring :ntit9 to provide prospective bidders all the necessar9 information that the9 need to prepare their bids2 A2 AAD/T O%E:CT/6:B To verif9 if the %idding Documents for the specific procurement $%))%"ed t#e sta'dard $%rms a'd ma'&a)s prescribed b9 the overnment Procurement Polic9 %oard & PP%' %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Document needed for evaluationB (2 The procuring entit9)s Customi.ed %idding Documents are not compliant8 compare the procurement4specific %idding Documents with the Philippine +idding .

#.Audit Sub4ob"ective • Audit Criteria e)i1ibi)it*0 bid e(a)&ati%' met#%d%)%1*.ocuments shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+& a& Approved +udget for the Contract? b& "nvitation to +id? c& /ligibility Re. $.Dra"i'1s a'd Tec#'ica) 6peci$icati%'sB F%rm %$ +id0 Price F%rm0 a'd 9ist %$ G%%dsB De)i(er* Time %r C%mp)eti%' 6c#ed&)eB F%rm0 Am%&'t0 a'd 8a)idit* Peri%d %$ +id 6ec&rit*B F%rm0 Am%&'t0 a'd 8a)idit* %$ Per$%rma'ce 6ec&rit* a'd >arra't*B a'd F%rm %$ C%'tract a'd Ge'era) a'd 6pecia) C%'diti%'s %$ C%'tract. 1.criteria for eligibility. Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer 4 date of the pre4bid conferenceM 4 time of the pre4bid conferenceM 4 Place of the pre4bid conferenceM 4 Deadline for submission of bidsM 4 Place of submission of bidsM 4 Date of opening of bidsM 4 Time of opening of bidsM 4 Place of opening of bidsM e2 f2 Scope of workM Plans7Draw ings and Technical SpecificationsM >orm of %id8 Price >orm8 and %ill of =uantitiesM Completion ScheduleM >orm8 Amount8 and 6alidit9 Period of %id Securit9M >orm8 Amount8 and 6alidit9 of Performance Securit9 and -arrant9M e.criteria i' acc%rda'ce "it# t#e Act0 a'd p%st.December 2009 Page !+5 .bid evaluation methodology:criteria in g2 h2 i2 "2 k2 >orm of Contract and Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . i. bid c%'$ere'ce ("#ere app)icab)e!0 s&bmissi%' %$ bids a'd %pe'i'1 %$ bidsB 6c%pe %$ "%rA0 "#ere app)icab)eB P)a's. "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • (3&(& The +idding . C. @&a)i$icati%'0 as "e)) as t#e date0 time a'd p)ace %$ t#e pre. ).uirements? d& "nstruction to +iddersincluding scope of biddocuments comprising the bid.

and 2alidity of Performance Security and !arranty? and & 9orm of Contract and General and Special Conditions of Contract& PP% Resolution @o2 1.Audit Sub4ob"ective • Audit Criteria accordance with the Actand post1.Price 9ormand +ill of Iuantities? h& Completion Schedule? i& 9orm. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.and 2alidity Period of +id Security? 0& 9orm.where applicable? f& Plans:. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.Amount.December 2009 Page !++ . develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 NOTE= Also refer to the Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .rawings and Technical Specifications? g& 9orm of +id.as well as the date.ualification.time and place of the pre1bid conference #where applicable$.4!11+ dated #1 September !11+B • N all branches8 agencies8 departments8 bureaus8 offices and instrumentalities of the overnment8 including government4 owned and7or controlled corporations8 government financial institutions8 state universities and college8 and local government units8 are hereb9 mandated to use the Philippine %idding Documents Third :dition for all of their procurement activities2 Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer eneral and Special Conditions of ContractM Are the %idding Documents in the reCuired formB a2 b2 c2 d2 /nvitation to %idM /nstruction s to %iddersM %id Data SheetM eneral Conditions of the ContractM Special Conditions of ContractM Schedule of ReCuirementsM Technical SpecificationsM %idding >ormsM e2 f2 g2 h2 E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. T% (eri$* t#e e$$ects non4compliance to Appropriate Audit -orking Papers %$ i'sta'ces %$ '%'.e the instances of -. etc. establish the effects and c%mp)ia'ce %' t#e= a.Amount.submission of bids and opening of bids? e& Scope of wor .

as amended on September 4. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.466'8 • Observers shall be invited at least three #. provided that the% have een dul% invited in 4riting1 Audit Activities OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer 2.Audit Sub4ob"ective • Audit Criteria a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.December 2009 Page #11 . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.

Pr%c&reme't C%'$ere'ce pri%r t% t#e ad(ertiseme't %r t#e iss&a'ce %$ t#e I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*. PREPARATORH ACTI8ITH= PRE.as amended on September 4. T% (eri$* i$ t#e +AC c%'d&cted t#e Pre.PROCUREMENT CONFERENCE (F%r pr%c&reme't %$ i'$rastr&ct&re pr%Cects c%sti'1 m%re t#a' P7 mi))i%'! The pre4procurement conference is the forum where all officials involved in the procurement meet and discuss all aspects of a specific procurement activit98 which includes the technical specifications8 the Approved %udget for the Contract &A%C'8 the applicabilit9 and appropriateness of the recommended method of procurement and the related milestones8 the bidding documents8 and availabilit9 of the pertinent budget release for the pro"ect2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the Pre4Procurement Conference was conducted "it#i' t#e re@&ired timeH !2 To verif9 if the participa'ts to the Pre4Procurement Conference were as reCuiredH #2 To verif9 if during the Pre4Procurement Conference the participants8 led b9 the %ids and Awards Committee &%AC'8 performed the reCuired tasks and attained the ob"ectives of the Conference2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 cop9 of the approved 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC SecretariatH !2 /nvitation to %idH #2 Dul9 certified copies of the documents &Office Orders8 contracts8 Organi.II.ational7>unctional Charts8 etc' which the %AC Secretariat used as bases for identif9ing and notif9ing the participants to the Pre4Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 Audit Sub4ob"ective • Audit Criteria -.466'8 • 46&(& Prior to the Advertisement or the issuance of the "nvitation to +id for each procurement underta en Suggested Audit -orking Paper Audit Activities (2 Secure from the %AC Secretariat a dul9 certified cop9 of the 5inutes of Pre1 Procurement Conference and compare the date the conference was held with the date indicated in the newspaper or in the print4out of website page where "nvitation to +id was published7posted& Audit =uestion Did the %AC conduct the Pre4 Procurement Conference prior to the advertisement or issuance of the /nvitation to %idM Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #1( .

e if the9 led to the confirmation of the description of the scope of the contract8 the A%C8 and the contract duration2 Did the participants led b9 the %AC discuss and confirm theB a2 Description of the scope of the contractM A%CM Contract durationM b2 c2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • 46&(<& The pre1procurement conference shall be attended by the +AC.December 2009 Page #1! . T% (eri$* i$ d&ri'1 t#e Pre.the +AC.through its Secretariat shall call for a Pre1 Procurement Conference& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer 2.the Secretariatthe unit or officials. T% (eri$* i$ t#e participa'ts t% t#e Pre.for each procurement& !2 Secure from the %AC Secretariat dul9 certified copies of the documents &Office Orders8 contracts8 Organi.who prepared the +idding . Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#at t#e pr%c&reme't is i' acc%rda'ce "it# t#e pr%Cect pr%c&reme't *2 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the scope of the contract8 the A%C8 and contract duration8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.Audit Sub4ob"ective • Audit Criteria through public bidding. Pr%c&reme't C%'$ere'ce i'c)&ded t#e +AC0 t#e 6ecretariat0 t#e &'it %r %$$icia)s0 i'c)&di'1 c%'s&)ta'ts #ired b* t#e pr%c&ri'1 e'tit*0 "#% prepared t#e +iddi'1 D%c&me'ts a'd t#e dra$t I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#e descripti%' %$ t#e sc%pe %$ t#e c%'tract0 t#e A+C0 a'd c%'tract d&rati%'B b.ocuments and the draft "nvitation to +id.including consultants hired by the procuring entity.Pr%c&reme't C%'$ere'ce t#e participa'ts0 )ed b* t#e +AC0 per$%rmed t#e $%))%"i'1 tasAs a'd attai'ed t#e re)ated %bCecti(es= a.as amended on September 4.ational7>unctiona l Charts8 etc' which it used as bases for identif9ing and notif9ing the participants to the Pre4Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 #2 >rom the 5inutes of Pre1Procurement Conference look for the names of the members of the %AC8 the members of the Secretariat8 the officials and7or consultants who prepared the %idding Documents and the draft /nvitation to %id2 Did the participants to the Pre4Procurement Conference include theB a2 b2 M c2 unit or officials who prepared the %idding Documents and the draft /nvitation to %idM consultants hired b9 the procuring entit98 who prepared the %idding Documents and the draft /nvitation to %idM %ACM Secretariat d2 4.

as amended on September 4. @&a)i$icati%'B $.4.e if the9 led to the confirmation of the readiness of the procurement at hand as toB a2 availabilit9 of appropriations and programmed budget for the contract8 b2 completeness of the %idding Documents and their adherence to the Philippine %idding Documents &P%Ds'7 customi.ed %idding Documents8 c2 completion of the detailed engineering according to the prescribed standardsH d2 availabilit9 of ROand the ownership of Did the participants led b9 the %AC discuss and confirm that theB a2 procurement is in accordance with the PPMP and APPM b2appropriations and programmed budget for the contract are availableM Did the participants led b9 the %AC discuss and confirm that the procurement at hand is read9 as toB a2 availabilit9 of appropriations and programmed budget for the contractM completen ess of the %idding DocumentsM b2 c2 adherence of the %idding Documents with the P%Ds7 customi. "mplementing Rules and Regulations #"RR$ of RA '()*.uring the conference.December 2009 Page #1# . c%'$irmati%' %$ t#e a(ai)abi)it* %$ RO> a'd t#e %"'ers#ip %$ a$$ected pr%perties. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed readi'ess %$ t#e pr%c&reme't at #a'd %' t#e $%))%"i'1= c.3. t#e a(ai)abi)it* %$ appr%priati%'s a'd pr%1rammed b&d1et $%r c%'tractB c.ed %idding DocumentsM d2 completion of the detailed engineering according to the prescribed Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .e if the9 led to the confirmation if the procurement is in accordance with the PPMP and APP and availabilit9 of appropriations and programmed budget for the contract2 02 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of information8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.Audit Sub4ob"ective • Audit Criteria ma'a1eme't p)a' (PPMP! a'd a''&a) pr%c&reme't p)a' (APP!B c.2. Re(ie"ed a'd ad%pted t#e pr%c&reme't sc#ed&)e0 i'c)&di'1 dead)i'es a'd time$rames0 $%r t#e di$$ere't acti(itiesB a'd 1.2 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the review of the PPMP and APP8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9. d.466'8 • 46&(& < . Reiterated a'd emp#asiIed t#e imp%rta'ce %$ c%'$ide'tia)it* a'd t#e app)icab)e sa'cti%'s a'd pe'a)ties0 as "e)) as a1reed %' meas&res t% e's&re c%mp)ia'ce "it# t#e $%re1%i'1. c%mp)eti%' %$ t#e detai)ed e'1i'eeri'1 acc%rdi'1 t% t#e prescribed sta'dards i' t#e case %$ i'$rastr&ct&re pr%CectsB c. c%mp)ete'ess %$ t#e +iddi'1 D%c&me'ts a'd t#eir ad#ere'ce t% re)e(a't 1e'era) pr%c&reme't 1&ide)i'esB c.-.the participants- Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer . Re(ie"ed0 m%di$ied a'd a1reed %' t#e criteria $%r e)i1ibi)it* scree'i'10 e(a)&ati%'0 a'd p%st.

e if the9 led to the confirmation of the criteria for eligibilit9 screening8 bid evaluation8 and post4 Cualification2 52 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the procurement schedule8 including deadlines and timeframes for the different activities8 the no4contact rule8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.etermine the readiness of the procurement at handincluding.and the ownership of affected propertiesM Le s @o Particulars of the Answer 32 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the criteria for eligibilit9 screening8 bid evaluation8 and post4 Cualification8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.evaluation.as well as agree on measures to ensure compliance with the foregoing& • 3&4& %o procurement shall be Suggested Audit -orking Paper Audit Activities affected properties2 Audit =uestion standardsM e2 availabilit9 of RO.e if the9 led to the confirmation of the adoption of the procurement schedule including deadlines and timeframes for the different activities2 Did the participants led b9 the %AC discuss and confirm the criteria forB a2 b2 c2 :ligibilit9 screeningM %id evaluationM Post4 CualificationM Did the participants led b9 the %AC discuss and confirm the adoption of the procurement schedule including deadlines and timeframes for the different activitiesM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the A+C.and contract duration? b& /nsure that the procurement is in accordance with the pro0ect and annual procurement plans? c& .ualification? e& Review and adopt the procurement scheduleincluding deadlines and timeframes.modify and agree on the criteria for eligibility screening.December 2009 Page #1* .among other aspectsthe following8 i$ availability of appropriations and programmed budget for the contract? ii$ completeness of the +idding .shall8 a& Confirm the description and scope of the contract.and post1.ocuments and their adherence to relevant general procurement guidelines? iii$ completion of the detailed engineering according to the prescribed standards in the case of infrastructure pro0ects? iv$ confirmation of the availability of RO! and the ownership of affected properties& d& Review.for the different activities? and f& Reiterate and emphasi=e the importance of confidentiality and the applicable sanctions and penalties.Audit Sub4ob"ective • Audit Criteria led by the +AC.

Audit Sub4ob"ective • Audit Criteria underta en unless it is in accordance with the approved APP of the procuring entity& The APP shall bear the approval of the >ead of the Procuring /ntity or second1ran ing official designated by the >ead of the Procuring /ntity to act on his behalf.and must be consistent with its duly approved yearly budget& &PPB Circular "(/!""# dated !" 0anuar% !""#.the heads of the respective "Us.uired that a 5ulti1Jear Suggested Audit -orking Paper Audit Activities +2 >rom the 5inutes of Pre1Procurement Conference look for information on the reiteration and emphasis of the importance of confidentialit9 and the applicable sanctions and penalties8 as well as the agreement on measures to ensure compliance2 Audit =uestion Did the participants led b9 the %AC reiterate and emphasi.for which the initial funding F sourced from either the e@isting:current yearEs budget or the %/P F is not sufficient to cover the total cost of the pro0ect. • < *&4& To facilitate the immediate implementation of pro0ects even pending approval of the GAA. .as procuring entities.the A+C shall be based on the budget levels under the %ational /@penditure Program #%/P$ submitted to Congress& *&.e the importance of confidentialit9 and the applicable sanctions and penalties8 as well as the agreement on measures to ensure complianceM Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the head of the agency shall identify and thereafter notify the implementing units #"Us$ of the amount allocated for the pro0ects they are to implement& On the basis of said notification.can proceed with the procurement activities prior to issuance of the notice of award& *&7& 9or 5ulti1Jear Pro0ects #5JPs$.& 9or specifically appropriated pro0ectsagencies can proceed with the procurement activities prior to issuance of the notice of award using as basis the %/P figures& *&*& 9or lump1sum appropriations and Centrally 5anaged "tems #C5"s$ under the agencyEs budget.it is re.December 2009 Page #1.

+5 for the said 5JP& *&D& As prescribed under Section *3.+oo 2 of the Administrative Code of (')3.&(& Allotment 1 document issued by the .the 5JOA shall be a pre1re.uisite document that the agency must prepare to reflect the entire procurement activity #i&e&- Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .+5$ which authori=es an agency to incur obligations for a specified amount as contained in a legislated appropriation& The allotment issued may either be trough the Agency +udget 5atri@ #A+5$ which covers the comprehensive release of specifically appropriated items in the agencyEs budget or through the Special Allotment Release Order #SARO$& .&4& Annual Procurement Plan #APP$ F the re.Audit Sub4ob"ective • Audit Criteria Obligational Authority #5JOA$ must already have been issued in accord with .December 2009 Page #10 .+5 Circular Aetter 466*1 6(4 prior to commencement of any procurement activity& Thus.Chapter ).uisite for procurement of a multi1year contract& All procurement activities should be within the total pro0ect cost and categories reflected in the 5JOA issued by .Subtitle +Title ".no contract involving the e@penditure of public funds shall be entered into unless the proper accounting official of the procuring entity shall have certified as to the availability of funds and the allotment to which the e@penditure or obligation may be properly charged& • DefinitionB .epartment of +udget and 5anagement #.

&4&7& Time schedule for each procurement activity? .services.the A+C shall be the amount reflected in the 5ulti1Jear Obligational Authority& GOCCs and AGUs #referred to in Section 4&4$ .&.&4&D& Source of fund? and .Audit Sub4ob"ective • Audit Criteria goods.&4&4& Pro0ect management office or end1user unit? .& "n the case of GOCCsincluding government financial institutions as well as AGUs.&.December 2009 Page #13 .for which a 5ulti1Jear Obligational Authority has been issued.&4&*& Procurement method to be adopted? .the A+C represents the amount of fund transfers which they receive from a national government agency to implement a program:pro0ect:activity& .civil wor s to be procured$ that it plans to underta e within the calendar year& This document contains the following information8 .&4&.&4&3& Approved +udget for the Contract& .& General description of the procurement? .&(& 9or specifically appropriated items as reflected in the annual budget of the national government agency.the amount corresponding to either the full cost of a single year or multi1year program:pro0ect: activity& 9or multi1year pro0ects.&.&7& Aump1Sum Appropriations and Centrally 5anagement "tems #C5"s$ F those itme in the budget of Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& Approved +udget for the Contract #A+C$ F refers to the following8 %Gs including SUCs #referred to in Section 4&($ .&4&(& %ame of the procurement program:pro0ect? .&.

+5 either for locally funded pro0ects or foreign assisted pro0ects implemented by agencies in order to authori=e the latter to enter into multi1year contracts for the full pro0ect cost& A 5JOA.e the instances -. etc.which upon its enactmentbecomes the General Appropriations Act #GAA$& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.which contains an annual brea down of the full pro0ect cost.&)& 5ulti1Jear Obligational Authority #5JOA$ F a document issued by the . a'd de(e)%p appr%priate a&dit rec%mme'dati%'s and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. establish the effects c%mp)ia'ce %' t#e= a. T% (eri$* t#e e$$ects %$ of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.Audit Sub4ob"ective • Audit Criteria agencies for which the "mplementing Units and the specific amounts allocated for each have not been identified in the %ational /@penditure Program #%/P$ or the General Appropriations Act #GAA$& .Article 2"" of the Constitution& The %/P shall be the basis of the general appropriations bill. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.obligates agencies to include in their budget proposal for the ensuring years the amount programmed for the said year#s$& .&'& %ational /@penditure Program #%/P$ F the proposed national budget submitted by the President to Congress in accord with Section 44.December 2009 Page #15 .

$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. provided that the% have een dul% invited in 4riting1 2.December 2009 Page #1+ .e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Audit =uestion Le s @o Particulars of the Answer "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable III. AD8ERTI6ING AND PO6TING OF THE IN8ITATION TO +ID (F%r pr%c&reme't %$ i'$rastr&ct&re pr%Cects c%sti'1 m%re t#a' P7 mi))i%'! Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

as amended on September 4466'8 • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1 use goods and supplies.December 2009 Page #(1 .tent of circulation of the newspaper and the first da9 of publication2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer Did the %AC advertise the "nvitation to +id in a newspaper of general nationwide circulation which has been regularl9 published for at least ! 9ears before the date of issue of the advertisementM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .tent of circulation of the newspaper and the first da9 of its publicationH #2 Printout of the web page where the /nvitation to %id was posted in the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable for the first da9 and at least the last da9 of postingH *2 Certification b9 the head of the %AC Secretariat of the procuring entit9 that the invitation was posted at an9 conspicuous place reserved for the purpose in the premises of the procuring entit9 for 3 calendar da9s2 Audit Sub4ob"ective • Audit Criteria -.uest for /@pression of "nterest shall be8 a& Advertised at least once in a newspaper of general nationwide circulation which has been regularly published for at least 4 years before the date of issue of the advertisement Audit Activities (2 >rom the entire page of the newspaper where the "nvitation to +id was advertised8 to be submitted to the Auditor on the da9 of advertisement8 validate the advertisement2 !2 >rom the verification document obtained b9 the %AC Secretariat from the publisher8 check the e. T% (eri$* i$ t#e +AC ad(ertised t#e *nvitation to Bid i' a 'e"spaper %$ 1e'era) 'ati%'"ide circ&)ati%' "#ic# #as bee' re1&)ar)* p&b)is#ed $%r at )east 2 *ears be$%re t#e date %$ iss&e %$ t#e ad(ertiseme't "mplementing Rules and Regulations #"RR$ of RA '()*.Advertising and posting are conducted to ensure transparenc9 of the procurement process8 widest possible dissemination to increase the number of prospective bidders8 and intensif9 competition for the procurement activit9 or pro"ect A2 AAD/T O%E:CT/6:B To verif9 if the /nvitation to %id was advertised and posted in the media and within the specified time as reCuired %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 :ntire page of the newspaper where the "nvitation to +id was advertisedH !2 Document used b9 the %AC Secretariat to verif9 from the publisher the e.the Re.

if applicable.December 2009 Page #(( .as amended on September 4466'8 02 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 32 Conduct ocular inspection on the first da9 of posting2 52 Repeat the ocular inspections &ma9 be at random' during the 34 da9 period to verif9 the postings2 Did the %AC post the "nvitation to +idB (2 continuousl9 for seven &3' calendar da9sM !2 at the conspicuous place reserved for the purpose in the premises of the procuring entit9M #2 as certified b9 the head of the Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the website of the procuring entity concerned.2 Access the websites at random during the 34da9 period to verif9 the postings2 OR >rom the printouts of the web pages indicating the dates of printing8 obtained from and dul9 certified b9 the %AC Secretariat as a true and correct8 compare these dates with the reCuired dates of posting2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer Did the %AC post the "nvitation to +id continuousl9 in theB (2 Phil :PS website for 3 calendar da9s starting on the date of advertisementM !2 website of the procuring entit9 concerned8 if available8 for 3 calendar da9s starting on the date of advertisementM #2 website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable8 for 3 calendar da9s starting on the date of advertisementM 4.for 3 calendar days starting on the date of advertisement Audit Activities #2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 *2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable2 Print the page where the notice was posted &to form part of the audit evidences'2 .the "nvitation to +id shall be8 c& < b& Posted continuously in the PhilG/PS website.if available.as amended on September 4466'8 • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1 use goods and supplies.Audit Sub4ob"ective • Audit Criteria 2. T% (eri$* i$ t#e +AC p%sted t#e *nvitation to Bid c%'ti'&%&s)* i' t#e P#i)GEP6 "ebsite0 t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e0 a'd t#e "ebsite prescribed b* t#e $%rei1' 1%(er'me't. T% (eri$* i$ t#e +AC p%sted t#e *nvitation to Bid c%'ti'&%&s)* at a'* c%'spic&%&s p)ace reser(ed $%r t#e p&rp%se i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r : ca)e'dar da*s0 as certi$ied b* t#e #ead %$ t#e +AC 6ecretariat %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.and the website prescribed by the foreign government:foreign or international financing institution.$%rei1' %r i'ter'ati%'a) $i'a'ci'1 i'stit&ti%'0 i$ app)icab)e0 $%r : ca)e'dar da*s starti'1 %' t#e date %$ ad(ertiseme't "mplementing Rules and Regulations #"RR$ of RA '()*.

as certified by the head of the +AC Secretariat of the procuring entity& Audit Activities +2 ReCuest for the certification of the head of the %AC Secretariat2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer %AC Secretariat of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT -. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. etc.the "nvitation to +id shall be8 a&< b& < c& Posted at any conspicuous place reserved for the purpose in the premises of the procuring entity for 3 calendar days.December 2009 Page #(! .e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • Observers shall be invited at least three #. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*. c%mp)ia'ce a'd de(e)%p appr%priate a&dit Anal9.Audit Sub4ob"ective • Audit Criteria • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1 use goods and supplies. T% (eri$* t#e e$$ects %$ Anal9.e the instances of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. establish the effects and c%mp)ia'ce %' t#e= a. provided that the% have een dul% invited in 4riting1 develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.as amended on September 4.

Audit Sub4ob"ective • Audit Criteria rec%mme'dati%'s Audit Activities Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.December 2009 Page #(# . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

T% (eri$* i$ t#e +AC p%sted t#e *nvitation to Bid c%'ti'&%&s)* i' t#e P#i)GEP6 "ebsite0 t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e0 a'd t#e "ebsite prescribed b* t#e $%rei1' 1%(er'me't.466'8 • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1use goods and supplies.December 2009 Page #(* .and the website prescribed by the foreign Audit Activities (2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 !2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable2 Print the page where the notice was posted &to form part of the audit evidences'2 #2 Access the websites at random during the 34da9 period to verif9 the postings2 OR >rom the printouts of the web pages indicating the dates of printing8 obtained from and dul9 certified b9 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC post the "nvitation to +id continuousl9 in theB (2 Phil :PS website for 3 calendar da9s starting on the date of advertisementM !2 website of the procuring entit9 concerned8 if available8 for 3 calendar da9s starting on the date of advertisementM #2 website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable8 for 3 calendar da9s starting on the date of advertisementM government:foreign or international financing Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . PO6TING OF THE IN8ITATION TO +ID (F%r pr%c&reme't %$ i'$rastr&ct&re pr%Cects c%sti'1 P7 mi))i%' a'd be)%"! A2 AAD/T O%E:CT/6:B To verif9 if the /nvitation to %id was posted in the media as reCuired and within the specified time %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for evaluationB (2 Printouts &dul9 certified b9 the %AC Secretariat as true and correct' of the web pages where the /nvitation to %id was posted in the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable8 for ever9 da9 of the posting8 indicating the dates of printing !2 Certification b9 the head of the %AC Secretariat of the procuring entit9 that the invitation was posted at an9 conspicuous place reserved for the purpose in the premises of the procuring entit9 for 3 calendar da9s2 Audit Sub4ob"ective • Audit Criteria -.if available.I8.$%rei1' %r i'ter'ati%'a) $i'a'ci'1 i'stit&ti%'0 i$ app)icab)e0 $%r : ca)e'dar da*s starti'1 %' t#e date %$ ad(ertiseme't "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.the "nvitation to +id shall be8 d& < b& Posted continuously in the PhilG/PS website.the website of the procuring entity concerned.

for 3 calendar days starting on the date of advertisement Audit Activities the %AC Secretariat as a true and correct8 compare these dates with the reCuired dates of posting2 *2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 .2 Conduct ocular inspection on the first da9 of posting2 02 Repeat the ocular inspections &ma9 be at random' during the 34 da9 period to verif9 the postings2 32 ReCuest for the certification of the head of the %AC Secretariat2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer 2.the "nvitation to +id shall be8 a&< b& < c& Posted at any conspicuous place reserved for the purpose in the premises of the procuring entity for 3 calendar days. establish the effects c%mp)ia'ce %' t#e= a.Audit Sub4ob"ective • Audit Criteria institution.if applicable. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.as certified by the head of the +AC Secretariat of the procuring entity& Did the %AC post the "nvitation to +idB (2 continuousl9 for seven &3' calendar da9sM !2 at the conspicuous place reserved for the purpose in the premises of the procuring entit9M #2 as certified b9 the head of the %AC Secretariat of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.as amended on September 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #(. T% (eri$* i$ t#e +AC p%sted t#e *nvitation to Bid c%'ti'&%&s)* at a'* c%'spic&%&s p)ace reser(ed $%r t#e p&rp%se i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r : ca)e'dar da*s0 as certi$ied b* t#e #ead %$ t#e +AC 6ecretariat %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.e the instances -. T% (eri$* t#e e$$ects %$ of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. . etc.466'8 • 4(&4&(& /@cept as otherwise provided in Sections 4(&4&4 and 7*&4 of this "RR and for the procurement of common1use goods and supplies.

c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. provided that the% have een dul% invited in 4riting1 2.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #(0 . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.Audit Sub4ob"ective • Audit Criteria Audit Activities Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.

December 2009 Page #(3 Audit Activities (2 Compare the Fperiod of availabilit9 of the %idding DocumentsG indicated in the "nvitation to +id with the dates of the dail9 printouts of the web pages da9 of advertising7posting of the "nvitation to +id &da9 ( of period' and the deadline for the submission of bids &last da9 of period'2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the %AC make the bidding documents available from the time the "nvitation to +id was first advertised7 posted up to the deadline for the submission and receipt of bidsM .ocuments and to prepare their respective bidsthe concerned +AC shall ma e the +idding . I66UANCE OF +IDDING DOCUMENT6 FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 The bidding documents must be made available to the prospective bidders from the time the /nvitation to %id is advertised until immediatel9 before the deadline for submission of bids2 A2 AAD/T O%E:CT/6:B To determine whether the prescribed procedures and timelines in the issuance of bidding documents were followed %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for evaluationB (2 /nvitation to %idH !2 Printouts &dul9 certified b9 the %AC Secretariat as true and correct' of the web pages where the %idding Documents were posted in the Phil :PS website8 the website of the procuring entit9 concerned8 if available8 and website prescribed b9 the foreign government7 foreign or international financing institution8 if applicable8 for ever9 da9 of the posting8 indicating the dates of printingH #2 Records of the %AC on issued bidding documents &with information on Official Receipt numbers' for the procurement at hand2 Audit Sub4ob"ective • Audit Criteria -. T% (eri$* i$ t#e +AC %bser(ed t#e time re@&ired i' maAi'1 t#e +iddi'1 D%c&me'ts a(ai)ab)e0 t#at is0 $r%m t#e time t#e I'(itati%' t% +id "as $irst ad(ertised &p t% t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • (3&.as amended on September 4.& To provide prospective bidders ample time to e@amine the +idding .ocuments for the contract to be bid available for the following period8 a$ 9or the procurement of goods and infrastructure pro0ects.8.from the time the "nvitation to +id is first advertised:posted until the deadline for the submission of bids& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

as amended on September 4.2 Compare the records of the %AC on issued bidding documents &with information on Official Receipt numbers' for the procurement at hand with copies of Official Receipts &ORs' issued b9 authori.ocuments at its website and at the PhilG/PS website from the time that the "nvitation to +id is advertised& Prospective +idders may download the +idding .ed collecting officer of the procuring entit9M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ocuments upon submission of .bidders shall pay the fee for the +idding .ocuments from any of the said websites? Provided that.ocuments upon payment of the corresponding cost thereof to the collecting: disbursing officer of the procuring entity concerned& • (3&7& < Prospective bidders may download the +idding .466'8 • Section (3&7 F The procuring entity shall also post the +idding .466'8 • (3&*& +idders may be as ed to pay for the +idding . T% (eri$* i$ a)) bidders t#at sec&red +iddi'1 D%c&me'ts paid t% t#e a&t#%riIed c%))ecti'1 %$$icer %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.ocuments from any of the said websites? Provided thatbidders shall pay the fee for the +idding .ocuments to recover the cost of its preparation and development& The +AC shall issue the +idding .as amended on September 4.ed collecting officers2 Did all the bidders who submitted bids pa9 the correct amount for the bidding documents to the authori.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 2.ed collecting officers for the sale of bidding documents2 02 After submission of bids8 for bidders that downloaded bidding documents8 compare the OR numbers indicated in the records of the %AC Secretariat with copies of the ORs or Report of Collection of authori.ocuments upon submission of their +ids& !2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting of %idding Documents2 #2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available2 Print the page where the notice was posted &to form part of the audit evidences'2 *2 Access the websites at random from the first da9 of posting up to the deadline for the submission and receipt of bids to verif9 the postings2 Did the %AC post the %idding Documents at theB c2 Phil :PS website starting on the first da9 of advertisement website of the procuring entit9 concerned8 if available8 starting on the first da9 of advertisement d2 4.December 2009 Page #(5 . T% (eri$* i$ t#e +AC p%sted t#e +iddi'1 D%c&me'ts at t#e "ebsite %$ t#e pr%c&ri'1 e'tit* a'd at t#e P#i)GEP6 "ebsite $r%m t#e time t#at t#e I'(itati%' t% +id "as ad(ertised &p t% t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids "mplementing Rules and Regulations #"RR$ of RA '()*.

Audit Sub4ob"ective • Audit Criteria their bids& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. provided that the% have een dul% invited in 4riting1 develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# Prepare the appropriate audit7 validation document Audit Observation Memorandum &AOM'8 if Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. etc.December 2009 Page #(+ . a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. establish the effects and c%mp)ia'ce %' t#e= a.e the instances of -. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.

December 2009 Page #!1 .+ID CONFERENCE F%r t#e pr%c&reme't %$ i'$rastr&ct&re pr%Cects "it# a' Appr%(ed +&d1et $%r t#e C%'tract %$ at )east O'e Mi))i%' Pes%s (P Mi))i%'! The pre4bid conference is the initial forum where the Procuring :ntit9)s representatives and the prospective bidders discuss the different aspects of the procurement at hand2 A pre4bid conference must be held for contracts with A%Cs of at least One Million Pesos &P ( Million'2 >or contracts with A%Cs of less than P ( million8 pre4bid conferences ma9 or ma9 not be held at the discretion of the %AC2 The %AC ma9 also decide to hold a pre4bid conference upon the written reCuest of a prospective bidder2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC conducted a Pre4%id Conference for a contract with A%C of at least P( millionH !2 To verif9 if the %AC conducted the Pre4%id Conference within the reCuired timeH #2 To verif9 if during the Pre4%id Conference the participants8 led b9 the %AC8 performed the reCuired tasks2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for evaluationB (2 /nvitation to %idH !2 Minutes of the pre4bid conference approved b9 the %ACH #2 $etters to the participants of the Pre4%id Conference with evidence of receipt b9 the intended receipt and the date of such receiptH *2 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH . PRE.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities reflecting the results of the audit7validation and transmit to Management Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s applicable 8I. T% (eri$* i$ t#e +AC c%'d&cted a Pre.+id Audit Activities (2 /f the A%C is at least P( million8 obtain Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Did the %AC hold a Pre4%id Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.2 /nvitations to the Observers with evidence of receipt8 02 Reports of the %AC Observers2 Audit Sub4ob"ective • Audit Criteria -.

T% (eri$* i$ t#e Pre.uirements.conditionsand specifications stipulated in the +idding .the pre1bid conference shall be held at least thirty #.as amended on September 4.by reason of the method.ocuments& Audit Activities certified copies of the /nvitation to %id and Minutes of the Pre4%id Conference2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Conference for a contract with A%C of at least P( millionM 2.6$ calendar days before the deadline for the submission and receipt of bids& !2 %ased on the deadline for the submission and receipt of bids indicated in the "nvitation to +id8 determine the (!th da9 before such deadline2 #2 Compare the date determined in !2 above with the date of holding the Pre4%id Conference indicated in the certified cop9 of the 5inutes of Pre1+id Conference 2 Did the %AC hold the Pre4 %id Conference at least twelve calendar da9s before the deadline for the submission and receipt of bids 4.terms.or comple@ity of the contract to be bid or when international participation will be more advantageous to the GOP-a longer period for the preparation of bids is necessary.Audit Sub4ob"ective • Audit Criteria C%'$ere'ce $%r a c%'tract "it# A+C %$ at )east Pmi))i%' "mplementing Rules and Regulations #"RR$ of RA '()*. Prese'ted t#e e)i1ibi)it* re@&ireme'ts as "e)) as t#e tec#'ica) a'd $i'a'cia) c%mp%'e'ts %$ t#e c%'tract t% be bid0 t#e e(a)&ati%' pr%ced&res0 e(a)&ati%' *2 >rom the 5inutes of Pre1+id Conference look for information on the presentation7discussio n8 issues7Cuestions raised b9 prospective bidders8 and clarifications made thereon relative to the followingB a2 eligibilit9 Did the %AC present8 discuss8 and answer Cueries on the followingB a2 eligibilit9 reCuirements M b2 technical component of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • 44&(& 9or contracts to be bid with an approved budget of One 5illion Pesos #P(-666-666&66$ or morethe +AC shall convene at least one #($ pre1bid conference to clarify and:or e@plain any of the re.nature. T% (eri$* i$ d&ri'1 t#e C%'$ere'ce t#e +AC per$%rmed t#e $%))%"i'1 tasAs a'd attai'ed t#e re)ated %bCecti(es= a.as amended on September 4.466'8 • 44&4 The pre1bid conference shall be held at least twelve #(4$ calendar days before the deadline for the submission and receipt of bids& "f the procuring entity determines that.+id C%'$ere'ce "as #e)d at )east t"e)(e (-2! ca)e'dar da*s be$%re t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page #!( .

466'8 • 44&.December 2009 Page #!! .as amended on September 4.at the option of the Procuring /ntity.the eligibility re. Emp#asiIed t#e "arra't* re@&ireme't %$ t#e pr%Cect a'd t#e di$$ere't %$$e'ses a'd pe'a)ties pr%(ided $%r i' IRR %$ RA -23 "mplementing Rules and Regulations #"RR$ of RA '()*.among other things. Disc&ssed t#e re@&ireme'ts i' t#e IT+0 rep)ied t% t#e biddersF @&eries ab%&t t#e re@&ireme'ts0 speci$icati%'s a'd %t#er c%'diti%'s %$ t#e pr%Cect0 t#e pr%ced&res %' t#e bid e(a)&ati%' %$ a)) bidders a'd p%st. • The manner by which the pre1bid conference is conducted depends on the discretion of the +AC& >owever. >olume !. A of PP% Resolution @o2 104!11+ dated #1 September !11+P &eneric Procurement 7anual. The pre1bid conference shall discuss.Audit Sub4ob"ective • Audit Criteria criteria0 a'd p%ssib)e ca&ses %$ $ai)&re %$ t#e biddi'1B b.@&a)i$icati%' e(a)&ati%' %$ t#e )%"est ca)c&)ated bidder. 7anual of Procedures for the Procurement of *nfrastructure Pro?ects issued % the &PPB.only those who have purchased the +idding .uirements as well as the technical and financial components of the contract to be bid.ueries or clarifications& Oamendment per Anne.uirements and the technical and financial components of the contract to be bid& >owever.ocuments shall be allowed to participate in the pre1bid conference and raise or submit written .several events need to ta e place in the conferencenamely8 c& The presentation by the +AC of the eligibility re.the Audit Activities reCuirements8 b2 technical component of the contract to be bid8 c2 financial component of the contract to be bid8 d2 bid evaluation criteria8 e2 bid evaluation procedures8 f2 post4Cualification criteria8 g2 post4Cualification procedures8 h2 possible causes of failure of the bidding8 i2 reCuirements in the /nstructions to %idders8 "2 specifications8 k2 other conditions of the pro"ect8 l2 warrant9 reCuirement of the pro"ect8 m2 different offenses and penalties provided for in /RR of RA +(5* Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s the contract to be bidM c2 financial component of the contract to be bidM d2 bid evaluation criteriaM e2 bid evaluation proceduresM f2 post4 Cualification criteriaM g2 post4 Cualification proceduresM h2 possible causes of failure of the biddingM i2 reCuirements in the /nstructions to %iddersM "2 specificationsM k2 other conditions of the pro"ectM l2 warrant9 reCuirement of the pro"ectM m2 different offenses and penalties provided for in /RR of RA +(5*M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ation from which the Observer will be invitedH • knowledge8 e. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.specifications and other conditions of the pro0ectthe bid evaluation of all bidders and post1.466'8 • 44&* The minutes of the pre1bid conference shall be recorded and made available to all participants not later than three #. T% (eri$* i$ t#e +AC i'(ited Obser(ers= a.uirement of the pro0ect and the different offenses and penalties provided for in "RR1A of R&A& '()*& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 3.$ calendar days after the pre1bid conference& .uirements in the "T+.2. 1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b. t#at #a(e= b.uirements.-.ualification evaluation of the lowest calculated bidder& /mphasis should also be given to the warranty re.4. represe'ti'1 t#e COA0 t#e d&)* rec%1'iIed pri(ate 1r%&p i' a sect%r %r discip)i'e re)e(a't t% t#e pr%c&reme't at #a'd0 a'd a '%'.pertise in procurement or in the sub"ect matter of the contract to be bidH  no actual or potential conflict of interest in the Did the %AC Secretariat make available the Minutes of the Pre4%id Conference not later than three &#' calendar da9s after the pre4bid conferenceM 7.ueries about the re.perience or e. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.as amended on September 4. T% (eri$* i$ t#e +AC 6ecretariat rec%rded t#e pr%ceedi'1s %$ t#e Pre.ed private group in a sector or discipline relevant to the procurement at handM c2 One Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #!# .bid c%'$ere'ce "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria evaluation criteria.the replies to the biddersE .+id C%'$ere'ce a'd made t#e Mi'&tes a(ai)ab)e t% a)) participa'ts '%t )ater t#a' t#ree (4! ca)e'dar da*s a$ter t#e pre.2 Count the number of da9s after the date of the Pre1+id Conference up to the date of approval of the Minutes2 02 Count the number of da9s after the date of the Pre1+id Conference up to the date of receipt of the Minutes b9 its participants as indicated in the FreceivingG portion of the letter2 32 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.and possible causes of failure of the bidding& d& The +AC chairperson shall also discuss the re. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB Did the %AC choose the Observers consideringB a2 one representing the COAM b2 One representing the dul9 recogni.

who shall not have the right to vote.such as.December 2009 Page #!* .466'8 • Section (.& Observers (.in all stages of the procurement processinvite.at least two #4$ observers.as amended on September 4.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.and should meet the following criteria8 a$ Hnowledge.A$."nc&? #4$ %ational Constructors Association of the Philippines.& O servers shall e invited Audit Activities contract to be bidH and conformed with other relevant criteria determined b9 the %AC2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s representing a non4 government organi.for e@ample8 i$ 9or infrastructure pro0ectsnational associations of constructors duly recogni=ed by the Construction "ndustry Authority of the Philippines #C"AP$.Audit Sub4ob"ective • Audit Criteria c.the +AC shall.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .but not limited to the following8 #($ Philippine Constructors Association.&.$ Philippine "nstitute of Civil /ngineers #P"C/$& ii$ < iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.&(& To enhance the transparency of the process. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* "mplementing Rules and Regulations #"RR$ of RA '()*.evelopment Authority #C.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.in addition to the representative of the COA."nc&? and #.pertise in procurement or in the sub"ect matter of the contract to be bidM e2 -ith no actual or potential conflict of interest in the contract to be bidM f2 Conformed with other relevant criteria determined b9 the %ACM  52 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement2 Did the %AC invite the Observers at least # da9s before the date of the pre4bid conferenceM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .perience or e.ationM d2 -ith knowledge8 e.

as amended on September 4. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* c%'sidered t#e c%mme'ts. . then it is understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.copy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server. %bser(ati%'s %$ t#e Obser(ers "mplementing Rules and Regulations #"RR$ of RA '()*.uestsub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/ 6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals1 +2 %ased on the %AC)s Minutes on the Pre4%id Conference and the report of the Observers check whether a deliberation was made on the comments 7observations of the observers2 Did the Procuring :ntit9 consider the comments7 observations of the ObserversM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • (. provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s 5.December 2009 Page #!.Audit Sub4ob"ective • Audit Criteria at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.&7& Observers shall be allowed access to the following documents upon their re.&*& The observers shall have the following responsibilities8 a$ To prepare the report either 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntity.

T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'.466'8 • Observers shall be invited at least three #. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. provided that the% have een dul% invited in 4riting1 Audit Activities Anal9.Audit Sub4ob"ective • Audit Criteria -. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.December 2009 Page #!0 .$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. etc.as amended on September 4.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .c%mp)ia'ce %' t#e= a. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. 6UPP9EMENTA9 .466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the Answer s Audit Observation Memorandum &AOM'8 if applicable 8II.Audit Sub4ob"ective • Audit Criteria 4.December 2009 Page #!3 . +ID +U99ETIN6 FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 Supplemental7%id %ulletins ma9 be issued upon the procuring entit9)s initiative for purposes of clarif9ing or modif9ing an9 provision of the %idding Documents at least seven &3' calendar da9s before the deadline for the submission and receipt of bids2 An9 modification to the %idding Documents shall be identified as an amendment2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

December 2009 Page #!5 .ocumentsat least seven #3$ calendar days before the deadline for the submission and receipt of bids& (2 Audit Activities o over the Minutes of the Pre4%id Conference and check for statements that could modif9 the terms of the %idding Documents2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC issue Supplemental7%id %ulletins in regard to statements made at the pre4 bid conference that could modif9 the terms of the %idding Documents to all bidders that properl9 secured %idding DocumentsM !2 Obtain a cop9 of the related Supplemental 7 %id %ulletin and check for the signature of the %AC Chairman2 #2 >rom certified copies of the letters to bidders who purchased the %idding Documents8 look for evidences of their receipt of the Supplemental7%id %ulletins2 Did the %AC Chairman sign the Supplemental 7 %id %ulletinM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .bid c%'$ere'ce t#at c%&)d m%di$* t#e terms %$ t#e +iddi'1 D%c&me'ts "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.uest by issuing a Supplemental:+id +ulletin.A2 AAD/T O%E:CT/6:B To verif9 if Supplemental 7 %id %ulletins were issued as reCuired %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 Minutes of the Pre4%id Conference approved b9 the %ACH !2 Cop9 of the Supplemental7%id %ulletinH #2 Copies of ReCuests for Clarification submitted b9 bidders with evidence of receipt b9 the %AC SecretariatH *2 Printouts of Phil :PS web page evidencing posting of the Supplemental7%id %ulletinH . T% (eri$* i$ t#e +AC iss&ed 6&pp)eme'ta) .466'8 • 44&*& < Any statement made at the pre1bid conference shall not modify the terms of the +idding .duly signed by the +AC Chairman.ocumentsunless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental: +id +ulletin& • 44&7&(& <The +AC shall respond to the said re.to be made available to all those who have properly secured the +idding . +id +&))eti's i' re1ard t% stateme'ts made at t#e pre.2 Printout of the procuring entit9)s web page evidencing posting of the Supplemental7%id %ulletin2 Audit Sub4ob"ective • Audit Criteria -.

+id +&))eti' "as d&)* si1'ed b* t#e +AC C#airma'B t#e 6&pp)eme'ta).ocuments or for an interpretation must be in writing and submitted to the +AC of the procuring entity at least ten #(6$ calendar days before the deadline set for the submission and receipt of bids& The +AC shall respond to the said re.ocuments.as amended on September 4.uest by issuing a Supplemental:+id +ulletinduly signed by the +AC Chairman.uests for Clarification submitted at least ten &(1' calendar da9s before the deadline set for the submission and receipt of bidsM c.uests for clarification#s$ on any part of the +idding .Audit Sub4ob"ective • Audit Criteria 2. Audit Activities #2 Obtain cop97ies of Re. *2 Obtain dul9 certified copies of Supplemental7%id %ulletins and check for the signature of the %AC Chairman2 Did the %AC Chairman sign the Supplemental 7 %id %ulletinM "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • 44&7&( Re.December 2009 Page #!+ . T% (eri$* i$= a.at least seven #3$ calendar days before the deadline for the submission and receipt of bids& .uests for Clarification and check &date of receipt stamped on the letters' whether these were submitted at least ten &(1' calendar da9s before the deadline set for the submission and receipt of bids2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer -ere Re. t#e 6&pp)eme'ta). +id +&))eti' "as iss&ed at )east se(e' (:! ca)e'dar da*s be$%re t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bid. re@&ests $%r c)ari$icati%'(s! %' a'* part %$ t#e +iddi'1 D%c&me'ts %r $%r a' i'terpretati%' "ere i' "riti'1 a'd s&bmitted t% t#e +AC %$ t#e pr%c&ri'1 e'tit* at )east te' (-0! ca)e'dar da*s be$%re t#e dead)i'e set $%r t#e s&bmissi%' a'd receipt %$ bidsB b.2 >rom the records of the %AC &copies of Supplemental7%id %ulletins with evidence of the date of issuance' count the number of da9s from said issuance and the deadline for the submission and receipt of bidsH compare with the 34da9 reCuirement2 Did the %AC issue Supplemental7 %id %ulletins at least seven &3' calendar da9s before the deadline for the submission and receipt of bidM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .to be made available to all those who have properly secured the +idding .

+id +&))eti' "as d&)* si1'ed b* t#e +AC C#airma' "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4. M%di$icati%'s t% t#e +iddi'1 D%c&me'ts "ere ide'ti$ied as ame'dme'tsB c.ocuments shall be identified as an amendment& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC issue Supplemental7 %id %ulletins at least seven &3' calendar da9s before the deadline for the submission and receipt of bidM 02 >rom the records of the %AC &copies of Supplemental7%id %ulletins with evidence of the date of issuance' count the number of da9s from said issuance and the deadline for the submission and receipt of bidsH compare with the 34da9 reCuirement2 32 o through the contents of Supplemental7%id %ulletins and check if amendments were identified as such2 Did the %AC identif9 modifications to the %idding Documents as amendmentsM 52 o through the Supplemental7%id %ulletins and check for the signature of the %AC Chairman2 Did the %AC Chairman sign the Supplemental 7 %id %ulletinM 3. T% (eri$* i$= a. t#e 6&pp)eme'ta). T% (eri$* i$ t#e +AC p%sted 6&pp)eme'ta).466'8 • 44&7&(& < issuing a Supplemental:+id +ulletinduly signed by the +AC Chairman< • 44&7&4 Supplemental:+id +ulletins may be issued upon the procuring entityEs initiative for purposes of clarifying or modifying any provision of the +idding .December 2009 Page ##1 .Audit Sub4ob"ective • Audit Criteria 4.+id +&))eti's i'itiated b* t#e pr%c&ri'1 e'tit* $%r p&rp%ses %$ c)ari$*i'1 %r m%di$*i'1 a'* pr%(isi%' %$ t#e +iddi'1 D%c&me'ts "ere iss&ed at )east se(e' (:! ca)e'dar da*s be$%re t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bidsB b.466'8 • 44&7&.ocuments at least seven #3$ calendar days before the deadline for the submission and receipt of bids& Any modification to the +idding .+id +&))eti's it iss&ed %' t#e P#i)GEP6 a'd t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e "mplementing Rules and Regulations #"RR$ of RA '()*. Any Supplemental: +id +2 /n advance of the posting8 reCuest the %AC Secretariat for print4outs &printed on the da9 of the posting' of Supplemental: +id +ulletins as posted on the Phil :PS and at their website2 (12 Obtain the printouts Did the %AC post Supplemental:+id +ulletinsB a2 on the Phil :PSM and b2 the website of the procuring entit9 concernedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . 6&pp)eme'ta).as amended on September 4.

(a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .bidders who have submitted bids before the issuance of the Supplemental: +id +ulletin must be informed and allowed to modify or withdraw their bids in accordance with Section 4D&( of the "RR& Did the %AC inform and allow to modif9 or withdraw their bids in accordance with Section !02( of the /RR the bidders who have submitted bids before the issuance of Supplemental:+id +ulletinsP E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.e the instances of -. establish the effects and c%mp)ia'ce %' t#e= a.uire and secure Supplemental:+id +ulletins that may be issued by the +AC& >owever.bidders who have submitted bids before the issuance of the Supplemental:+id +ulletin must be informed and allowed to modify or withdraw their bids in accordance with Section 4D&( of the "RR& Audit Activities reCuested as evidence of the posting2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer 7.December 2009 Page ##( .if available& "t shall be the responsibility of all those who have properly secured the +idding . < >owever.as amended on September 4.+id +&))eti' "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 ((2 >rom the %AC records on submission of bids8 identif9 the bidders who have submitted bids before the issuance of Supplemental:+id +ulletins& (!2 o through copies of letters sent b9 the %AC to these bidders and check if the9 were informed and allowed to modif9 or withdraw their bids in accordance with Section !02( of the /RR2 • 44&7&.Audit Sub4ob"ective • Audit Criteria +ulletin issued by the +AC shall also be posted on the PhilG/PS or OFORG was changed to FA@DG per Anne. FAG of PP% Resolution @o2 104 !11+ dated September #18 !11+P the website of the procuring entity concerned.ocuments to in. T% (eri$* i$ t#e +AC i'$%rmed a'd a))%"ed t% m%di$* %r "it#dra" t#eir bids t#%se bidders "#% #a(e s&bmitted bids be$%re t#e iss&a'ce %$ t#e 6&pp)eme'ta).

c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #.December 2009 Page ##! . (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. provided that the% have een dul% invited in 4riting1 Audit Activities non4compliance2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. etc.Audit Sub4ob"ective • Audit Criteria b.

2 /nvitation to %idH 02 Accomplished Chec list for the >irst :nvelopesH 32 Accomplished Chec list for the Second :nvelopesH 52 Abstract of %ids as ReadH Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page ### . 6U+MI66ION0 RECEIPT0 OPENING L PRE9IMINARH E<AMINATION OF +ID6 FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 %ids shall be submitted simultaneousl9 in two &!' separate sealed envelopes and received b9 the procuring entit9 on or before the deadline specified in the /nvitation to %id2 Opening of %ids shall be at the time8 date and place specified in the /nvitation to %id2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the prescribed conditions and procedures in the submission and receipt of bids were followedH !2 To verif9 if the bids were submitted in the prescribed manner8 specified forms and contained all the reCuired informationH #2 To verif9 if the prescribed conditions and procedures in the opening and preliminar9 e.amination of bids were followed2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 Minutes of the %id Opening approved b9 the %ACH !2 $etters from bidders submitting their bidsH #2 %id documents submitted b9 the biddersB a2 >irst :nvelope and its contents8 b2 Second :nvelope and its contents8 c2 Modified bids8 if applicable *2 Cop9 of portions of the %AC Secretariat)s Receiving logbook containing information on receipt of bidsH .8III.

and which shall be submitted simultaneously& The first shall contain the technical component of the bid.&( of this "RR.ed b.December 2009 Page ##* .466'8 • 47&(& +idders shall submit their bids through their duly authori=ed representative using the forms specified in the +idding . i' t"% (2! separate sea)ed document submitting representativeM bid e'(e)%pes s&bmitted the bid is the bidder)s sim&)ta'e%&s)* authori.ed "mplementing Rules and Regulations #"RR$ of RA '()*.2 o through the records of the %AC pertaining to the submission of bids of each bidder and check if the submission of modifications were done before the deadline for the Did the %AC validate if the bidders submitted their bids using the forms specified in the %idding DocumentsM Did the %AC validate if the bidders submit their bids in two &!' separate sealed bid envelopes submitted simultaneousl9M 2. t#r%&1# t#eir d&)* %AC)s validation if the their dul9 a&t#%riIed represe'tati(e0 signator9 to the authori.including the eligibility re. it "as d%'e be$%re t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids0 b. T% (eri$* i$ t#e +AC (a)idated 5inutes of the +id validate if the i$ t#e bidders s&bmitted t#eir Opening and look for bidders submit bids= information on the their bids through a. t#e %ri1i'a) bid "as '%t Did the %AC validate that the bidders concerned submitted their bid modifications before the deadline for the submission and receiptM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .+2 %AC Resolution on the results of the opening of and the preliminar9 evaluation of bidsH (12 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH ((2 /nvitations to the Observers with evidence of receiptH (!2 Reports of the %AC Observers2 Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Audit Activities 6U+MI66ION OF +ID6 FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 (2 o through the Did the %AC -.ocuments in two #4$ separate sealed bid envelopes.as amended on September 4. T% (eri$* i$ t#e +AC (a)idated t#at i' m%di$*i'1 a bid= a.uirements under Section 4.and the second shall contain the financial component of the bid representative as indicated in the Sworn Statement& !2 o through the 5inutes of the +id Opening and look for information on the %AC)s validation if each bidder adopted the forms specified in the %idding Documents2 #2 o through the records of the %AC pertaining to the submission of bids of each bidder and check if the two &!' envelopes were submitted simultaneousl92 *2 o through the 5inutes of the +id Opening and look for information pertaining to opening of two &!' sealed envelops of each bidder2 .

calendar da9s from the last da9 of posting of the /nvitation to %id up to the deadline for submission and 47&7& +ids.it shall not be allowed to retrieve its original bid.submitted after the deadline shall not be accepted by the +AC& 2.and place specified in the "nvitation to +id& compare these with those in the /nvitation to %id2 Did the %AC receive bids at the place specified in the /nvitation to %idM Did the %AC not accept bids after the deadline for submission of bidsM !2 Count the number of da9s from the last da9 of posting of the /nvitation to %id &per printout of the web page with the date indicated thereon' up to the deadline for submission and Did the %AC observe the ma.uirements under Section 4.time. p)ace date8 time8 and place /nvitation to %idM speci$ied i' t#e I'(itati%' t% +id of receipt of bids and "mplementing Rules and Regulations #"RR$ of RA '()*.imum of .&( of this "RR.14 or 0.including the eligibility re.and stamped BreceivedC by the +AC& +id modifications received after the applicable deadline shall not be considered and shall be returned to the bidder unopened& Audit Activities submission and receipt2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer 02 o through the 5inutes of the +id Opening and look for information on the %AC)s activities validating ifB a2 bidders did not retrieve the original bid but merel9 submitted another eCuall9 sealed and properl9 identified as FmodificationG and stamped FreceivedG b9 the %ACH and b2 linked to the original bid &not withdrawn'2 Did the %AC validate if the bidders concerned did not retrieve the original bid but merel9 submitted another bid eCuall9 sealed8 properl9 identified8 and linked to the original bid and marked as a Fmodification8G thereof8 and stamped FreceivedG b9 the %ACM RECEIPT OF +ID6 FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 (2 Check the Did the %AC -.as amended on September 4. T% (eri$* i$ t#e +AC recei(ed receiving logbook of receive bids on the bids= the %AC for date and time a. T% (eri$* i$ t#e +AC %bser(ed t#e ma?im&m %$ 70 (%r 57! ca)e'dar da*s $r%m t#e )ast da* %$ p%sti'1 %$ t#e I'(itati%' t% +id &p t% t#e dead)i'e $%r s&bmissi%' a'd receipt %$ bids "mplementing Rules and Regulations Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . %' t#e date a'd time0 information on the specified in the b. .as amended on September 4.466'8 • 47&*& +ids shall be received by the +AC on the date.466'8 • 4D&(& A bidder may modify its bidprovided that this is done before the deadline for the submission and receipt of bids& !here a bidder modifies its bid.Audit Sub4ob"ective • Audit Criteria retrie(ed b&t a'%t#er bid e@&a))* sea)ed0 pr%per)* ide'ti$ied0 "as s&bmitted a'd )i'Aed t% t#e %ri1i'a) bid a'd marAed as a Dm%di$icati%'0E t#ere%$0 a'd stamped Drecei(edE b* t#e +AC "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page ##.but shall only be allowed to send another bid e.properly identifiedlin ed to its original bid and mar ed as a Bmodification-C thereof.ually sealed.

Audit Sub4ob"ective • Audit Criteria #"RR$ of RA '()*.14 or 0.4 calendar4da9 ma.466'8 • (4&.466'8 • 47&*& +ids shall be received by the +AC on the date.imum period2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer receipt of bidsM 76 calendar days D7 calendar days OPENING L PRE9IMINARH E<AMINATION OF +ID6 FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 (2 >rom the Office -as there a -. time0 a'd c. p)ace Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and place specified in the "nvitation to +id:Re. T% (eri$* i$ t#e +AC %bser(ed Order creating the Cuorum of the @&%r&m.uest for /@pression of "nterest& The following periods from the last day of posting of the "nvitation to +id:Re.time.uired& %AC8 determine the number of %AC members and identif9 the Chairman or 6ice4 Chairman2 %ACM !2 >rom the 5inutes of Opening of +idscheck for the presence of the Chairman or 6ice4 Chairman and if ma"orit9 of the %AC members or representatives7alter nates attended the proceedings2 #2 Compare the date and time of the opening of bids indicated in the Minutes of the Opening of %ids with the deadline for submission and Did the %AC open the bids immediatel9 after the deadline for the submission and receipt of bidsM Did the %AC open 2.uest for /@pression of "nterest up to the submission and receipt of bids shall be observed8 a$&&& b$ 9or infrastructure pro0ects.as amended on September 4. T% (eri$* i$ t#e +AC %pe'ed t#e bids immediate)* a$ter t#e dead)i'e $%r t#e s&bmissi%' a'd receipt %$ bids a'd at t#e= a. Iuorum A ma0ority of the total +AC composition as designated by the >ead of the Procuring /ntity shall constitute a .December 2009 Page ##0 .the following ma@imum periods8 Approved %udget for the Contract &in Philippine currenc9' 9ifty #76$ million and below Above fifty #76$ million c$ < Period Audit Activities receipt of bids &per %idding Documents' and compare with the . "mplementing Rules and Regulations #"RR$ of RA '()*. date0 b.uorum for the transaction of businessprovided that the presence of the Chairman or 2ice1Chairman shall be re.as amended on September 4.

for valid and 0ustifiable reason? provided that the letter of withdrawal is received by the Procuring /ntity prior to the deadline prescribed for submission and receipt of bids& . T% (eri$* i$ t#e +AC.date.uest and payment of a specified fee to recover cost of materials& Audit Activities receipt of bids stated in the %idding Documents2 *2 Compare the date8 time and place of the opening of bids indicated in the Minutes of the Opening of %ids with those specified in the /nvitation to %id2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer the bids on the date specified in the /nvitation to %idM Did the %AC open the bids on the time specified in the /nvitation to %idM Did the %AC open the bids at the place specified in the /nvitation to %idM 4.as amended on September 4.Audit Sub4ob"ective • Audit Criteria speci$ied i' t#e I'(itati%' t% +id "mplementing Rules and Regulations #"RR$ of RA '()*.withdraw its bid after it has been submitted.& 5odification and !ithdrawal of +ids 3&4& < 3&.rd edition #October 466'$ approved per GPP+ Resolution %o& 671466' dated .ocuments for the Procurement of "nfrastructure Pro0ects.and confidentiality of all submitted bids& The minutes of the bid opening shall be made available to the public upon written re.6 September 466'8 • 4.466'8 • 4'& +id Opening The +AC shall open the bids immediately after the deadline for the submission and receipt of bids& O PP% Resolution @o2 (#4!11+8 dated (0 December !11+P The time.+AC 6ecretariat read %&t a'd rec%rded d&ri'1 bid %pe'i'1 )etters %$ "it#dra"a) a'd ret&r'ed t% t#e bidder t#e e'(e)%pe c%'tai'i'1 t#e c%rresp%'di'1 "it#dra"' bid &'%pe'ed0 eit#er t% t#e bidderFs represe'tati(e i$ #e is prese't %r b* re1istered mai) Philippine +idding .& A +idder may.ocuments& The bidders or their duly authori=ed representatives may attend the opening of bids& The +AC shall adopt a procedure for ensuring the integritysecurity.and place of the opening of bids shall be specified in the +idding .December 2009 Page ##3 .2 >rom the Minutes of %id Opening8 check for information on the %AC)s reading out and recording of withdrawn bids during the bid openingH checking of the date of submission of the withdrawal letterH and returning the withdrawn bid unopened2 Also check for evidence of the return of the withdrawn bids from acknowledged registered mails2 Did the %ACB a2 read out and record during bid opening letters of withdrawal of bidsM b2 if the withdrawal of bid was made before the deadline for submission and receipt of bids8 return the bids unopened to representatives of the bidders concerned present during the bid openingM c2 if the withdrawal of bid was made before the deadline for submission and receipt of bids8 return withdrawn bids unopened b9 registered mailM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .through a letter of withdrawal.

&(.Audit Sub4ob"ective • Audit Criteria 3&*& +ids re.and the envelope containing the corresponding withdrawn bid shall be returned to the +idder unopened& "f the withdrawing +idderEs representative is in attendance.December 2009 Page ##5 .the bid shall be returned unopened by registered mail& The +idder may withdraw its bid prior to the deadline for the submission and receipt of bids.directly or indirectlyfor the same contract& 3&7& %o bid may be modified after the deadline for submission of bids& %o bid may be withdrawn in the interval between the deadline for submission of bids and the e@piration of the period of bid validity specified by the +idder on the 9inancial +id 9orm& !ithdrawal of a bid during this interval shall result in the forfeiture of the +idderEs bid securitypursuant to "T+ Clause ()&7.provided that the corresponding Aetter of !ithdrawal contains a valid authori=ation re.and criminal sanctions as prescribed by RA '()* and its "RR& • 4*& Opening and Preliminary /@amination of +ids 4*&.the original bid and all copies thereof shall be returned to the representative during the bid opening& "f the representative is not in attendance.piration of the period of bid validit9 specified b9 the %idder on the >inancial %id >ormM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uested to be withdrawn in accordance with "T+ Clause 4. Aetters of withdrawal shall be read out and recorded during bid opening.piration of the period of bid validit9 specified b9 the bidder in the financial bid formH and for information on forfeiture of bid securit9 and imposition of sanctions on these bidder2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Did the %AC forfeit the bid securit9 and recommend the imposition of sanctions on bidders who withdrew their bids during the interval between the deadline for submission of bids and the e.and the imposition of administrativecivil.uesting for such withdrawalsub0ect to appropriate sanctions& Audit Activities 02 >rom the Minutes of the %id Opening8 check for information on withdrawals of bids made after the deadline for submission and receipt of bids up to the e.shall be returned unopened to the +idders& A +idder may also e@press its intention not to participate in the bidding through a letter which should reach and be stamped by the +AC before the deadline for submission and receipt of bids& A +idder that withdraws its bid shall not be permitted to submit another bid.

466'8 • .December 2009 Page ##+ .as amended on September 4.uired document.uired documents to ascertain if they are all present.as prescribed in this "RR& 9or this purposethe +AC shall chec the submitted documents of each bidder against a chec list of re.466'8 • . T% (eri$* i$ t#e +AC determi'ed c%mp)ia'ce %$ eac# bidder "it# t#e d%c&me'ts re@&ired t% be s&bmitted i' t#e $irst e'(e)%pe b* c#ecAi'1 t#e s&bmitted d%c&me'ts %$ eac# bidder a1ai'st a c#ecA)ist %$ re@&ired d%c&me'ts t% ascertai' i$ t#e* are a)) prese't0 &si'1 a '%'discreti%'ar* Dpass.uired to be submitted for eligibility and for the technical re.the +AC shall rate the said first bid envelope as BpassedC 7.uirement& "n this regardbids that fail to include any re.uired documents to 52 Compare the Checklist for the first envelope adopted b9 the %AC with the list of documents in the first envelope per %idding Documents2 Did the %AC adopt a Checklist for the first envelope in accordance with the list of documents in the first envelope per %idding DocumentsM Did the %AC determine each bidder)s compliance with the documents reCuired to be submitted in the first envelopeB a2 Registration certificate from S:C8 Department of Trade and /ndustr9 &DT/' for sole proprietorship8 or CDA for +2 Determine if the %AC)s entries in the Checklist are complete2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uirement or are incomplete or patently insufficient shall be considered as BfailedC& Otherwise.as prescribed in this "RR& 9or this purpose.6&(& The +AC shall open the first bid envelopes of prospective bidders in public to determine each bidderEs compliance with the documents re.Audit Sub4ob"ective • Audit Criteria 3.uirements.6&(& The +AC shall open the first bid envelopes of prospective bidders in public to determine each bidderEs compliance with the documents re.$ai)E criteri%'0 as stated i' t#e I'str&cti%'s t% +idders "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.the +AC shall chec the submitted documents of each bidder against a chec list of re.it shall be rated BpassedC for that particular re.as stated in the "nstructions to +idders& "f a bidder submits the re.using a nondiscretionary Bpass:failC criterion. T% (eri$* i$ t#e +AC %pe'ed Audit Activities 32 >rom the Attendance Record7Minutes of the Opening of %ids check if the participants included bidders and observers2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Did the %AC open the first bid envelopes of the bidders in publicM t#e $irst bid e'(e)%pes %$ t#e bidders i' p&b)ic "mplementing Rules and Regulations #"RR$ of RA '()*.uirements.uired to be submitted for eligibility and for the technical re.

which are owned.including foreign government:foreign or international financing institution whose blac listing rules have been recogni=ed by the GPP+? #4$ /ach of the documents submitted in satisfaction of the bidding re.uired documentit shall be rated BpassedC for that particular re.and 9oremen$to be assigned to the contract to be bid.ualification and e@perience data? #.the +AC shall rate the said first bid envelope as BpassedC& • 47&4& The first envelope shall contain the following technical information: documents.corporationsor AGUs.uirement or are incomplete or patently insufficient shall be considered as BfailedC& Otherwise.complete.uirements is an authentic copy of the original.uipment units.uipment from the e.amount and validity period? iii$ Pro0ect Re.$ Aist of contractorEs e.using a nondiscretionary Bpass:failC criterion.leasedand:or under purchase agreementssupported by certification of availability of e.offices.uirements under Section 4.with their complete .December 2009 Page #*1 .uirement& "n this regardbids that fail to include any re.&( of this "RR? ii$ The bid security in the prescribed form.which shall include the following8 #($ Organi=ational chart for the contract to be bid? #4$ Aist of contractorEs personnel #vi=Pro0ect 5anager.at the least8 a$ < b$ 9or the procurement of infrastructure pro0ects8 i$ /ligibility re.as stated in the "nstructions to +idders& "f a bidder submits the re.and all statements and information provided therein are true and correct? Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer cooperatives8 or an9 proof of such registration as stated in the %idding DocumentsM b2 /n a Eoint 6enture8 each partner)s Registration certificate from S:C8 Department of Trade and /ndustr9 &DT/' for sole proprietorship8 or CDA for cooperatives8 or an9 proof of such registration as stated in the %idding DocumentsM c2 Ma9or)s permit issued b9 the cit9 or municipalit9 where the principal place of business of the prospective bidder is locatedM d2/n a Eoint 6enture8 each partner)s Ma9or)s permit issued b9 the cit9 or municipalit9 where the principal place of business of the prospective bidder is locatedM e2Statement of the prospective bidder of all its ongoing and completed government and Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uipment lessor:vendor for the duration of the pro0ectH iv$ Sworn statement by the prospective bidder or its duly authori=ed representative in the form prescribed by the GPP+ as to the following8 #($ "t is not Bblac listedC or barred from bidding by the GOP or any of its agencies.Audit Sub4ob"ective • Audit Criteria ascertain if they are all present.uirements.Pro0ect /ngineers5aterials /ngineers.

ocuments& The statement shall include all information Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer private contracts8 including contracts awarded but not 9et started8 if an98 whether similar or not similar in nature and comple.ed institutions8 for the preceding calendar 9ear which should not be earlier than two &!' 9ears from the date of bid submissionM f2(2 /n a Eoint Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .T"$ for sole proprietorship.ocuments iii$ Statement of the prospective bidder of all its ongoing and completed government and private contracts.s? and #3$ "t complies with e@isting labor laws and standards.partnershipcooperative.uired by the +AC.if the prospective bidder is a corporation.within the relevant period as provided in the +idding .epartment of Trade and "ndustry #.ocuments-8 a$ Class BAC .ocuments Aegal .ocuments i$ Registration certificate from S/C.including contracts awarded but not yet started.6('? #D$ "t complies with the responsibilities of a prospective or eligible bidder provided in the P+.in the case of procurement of services& • 4.or any proof of such registration as stated in the +idding .ocuments& ii$ 5ayorEs permit issued by the city or municipality where the principal place of business of the prospective bidder is located& Technical .&(& 9or purposes of determining the eligibility of bidders using the criteria stated in Section 4.$ "t is authori=ing the >ead of the Procuring /ntity or his duly authori=ed representative:s to verify all the documents submitted? #*$ The signatory is the duly authori=ed representative of the prospective bidder.or C.and granted full power and authority to do.e@ecute and perform any and all acts necessary and:or to represent the prospective bidder in the biddingwith the duly notari=ed SecretaryEs Certificate attesting to such fact.or 0oint venture? #7$ "t complies with the disclosure provision under Section *3 of the Act in relation to other provisions of R&A& .Audit Sub4ob"ective • Audit Criteria #.A for cooperatives.using the forms prescribed in the +idding .&7 of this "RR.only the following documents shall be re.if anywhether similar or not similar in nature and comple@ity to the contract to be bid.December 2009 Page #*( .it9 to the contract to be bid8 within the relevant period as provided in the %idding DocumentsM e2(2 /n a Eoint 6enture8 an9 partner)s statement of all its ongoing and completed government and private contracts8 including contracts awarded but not 9et started8 if an9 f2 The bidder)s audited financial statements8 showing8 among others8 the prospective bidder)s total and current assets and liabilities8 stamped FreceivedG b9 the %/R or its dul9 accredited and authori.

uired in the P+.a valid Philippine Contractors Accreditation +oard #PCA+$ license and registration for the type and cost of the contract to be bid 9inancial .stamped BreceivedC by the +"R or its duly accredited and authori=ed institutions.tend a credit line in favor of the prospective bidder if awarded the contract to be bid &C$C'M g2(2 /n a Eoint 6enture8 an9 partner)s @>CC or C$C h2 6alid "oint venture Agreement &E6A'8 in case the "oint venture is alread9 in e.as indicated in the "nstructions to +idders.from receipt of the notice of award.istence2 /n the absence of a E6A8 dul9 notari.enter into contract with the Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer 6enture8 an9 partner)s audited financial statement g2 The bidder)s computation for its @et >inancial Contracting Capacit9 &@>CC' or a commitment from a Aniversal or Commercial %ank to e.Audit Sub4ob"ective • Audit Criteria re.within ten #(6$ calendar days or less.December 2009 Page #*! .showingamong others.ocuments v$ The prospective bidderEs audited financial statements.ocument 2alid 0oint venture Agreement #G2A$in case the 0oint venture is already in e@istence& "n the absence of a G2Aduly notari=ed statements from all the potential 0oint venture partners stating that they will enter into and abide by the provisions of the G2A in the instance that the bid is successful shall be included in the bid& 9ailure to enter into a 0oint venture in the event of a contract award shall be ground for the forfeiture of the bid security& /ach partner of the 0oint venture shall submit the legal eligibility documents& The submission of technical and financial eligibility documents by any of the 0oint venture partners constitutes compliance& • 43&(& All bids shall be accompanied by a bid security.for the preceding calendar year which should not be earlier than two #4$ years from the date of bid submission& vi$ The prospective bidderEs computation for its %et 9inancial Contracting Capacity #%9CC$ or a commitment from a Universal or Commercial +an to e@tend a credit line in favor of the prospective bidder if awarded the contract to be bid #CAC$& b$ Class B+C .the prospective bidderEs total and current assets and liabilities.payable to the procuring entity concerned as a guarantee that the successful bidder shall.ed statements from all the potential "oint venture partners stating that the9 will enter into and abide b9 the provisions of the E6A in the instance that the bid is successfulM i2 The bid securit9 in the prescribedB a2 formM b2 amountM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .s prescribed by the GPP+& iv$ "n the case of procurement of infrastructure pro0ects.

that it shall be confirmed or authentic1ated by a Universal or Commercial +an .8 Pro"ect Manager8 Pro"ect :ngineers8 Materials :ngineers8 and >oremen'8 to be assigned to the contract to be bid8 with their complete Cualification and e.atio nal chart for the contract to be bidM b2 $ist of contractor)s personnel &vi.' of this "RR.Audit Sub4ob"ective • Audit Criteria procuring entity and furnish the performance security re.if issued by a foreign ban & c$ Surety bond callable upon demand issued by a surety or insurance company duly certified by "nsurance Commission as authori=ed to issue such security& d$ Any combination of the foregoing& 9ive percent #7K$ Proportion 1ate to share of form with respect to total amount of security 9or biddings conducted by AGUs.perience dataM c2 $ist of contractor)s eCuipment units8 which are owned8 leased8 and7or under purchase agreements8 supported b9 certification of availabilit9 of eCuipment from the eCuipment lessor7vendo r for the duration of the pro"ectM k2 Sworn statement b9 the prospective Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #*# .3&( of this "RR allows a longer period& 9ailure to enclose the re.or irrevocable letter of credit from other ban s certified by the "2 Pro"ect ReCuirements8 which shall includeB a2 Organi.uired in Section .ual to Percentag e of the A+C$ Two percent #4K$ a$ Cash or cashierEs: managerEs chec issued by a Universal or Commercial +an & b$ +an draft: guarantee or irrevocable letter of credit issued by a Universal or Commercial +an 8 Providedhowever.ban draft:guarantee.uired bid security in the form and amount prescribed herein shall automatically dis.ualify the bid concerned& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer c2 validit9 periodM • 43&4 The bid security shall be in an amount e.the prospective bidder may also submit bid securities in the form of cashierEs:managerEs chec . A of PP% Resolution @o2 104!11+ dated September #18 !11+PB 9orm of +id Security Amount of +id Security #/.e@cept when Section .ual to a percentage of the A+C in accordance with the following schedule Oas amended b9 Anne.

relation to the aforementioned persons within the third civil degree of consanguinity or affinity shall automatically dis.ed representative 7s to verif9 all the documents submittedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .this provision shall apply to the following persons8 a$ "f the bidder is an individual or a sole proprietorship.to the bidder himself? b$ "f the bidder is a partnership.isclosure of Relations All bids shall be accompanied by a sworn affidavit of the bidder that it is not related to the >ead of the Procuring /ntity.and the pro0ect consultants.to all its officers and members? c$ "f the bidder is a corporation.ing the ?ead of the Procuring :ntit9 or his dul9 authori.or #c$ of this Section shall correspondingly apply to each of the members of the said 0oint venture.ualification of the bid in consonance with Section .directors.December 2009 Page #** .by consanguinity or affinity up to the third civil degree& 9ailure to comply with the aforementioned provision shall be a ground for the automatic dis.Audit Sub4ob"ective • Audit Criteria +SP as authori=ed to issue such financial instrument& • 43&.the head of the P5O or the end1user unit.#b$.to all its officers.members of the +AC.the provisions of items #a$.ed b9 the PP%M &!' :ach of the documents submitted in satisfaction of the bidding reCuirements is an authentic cop9 of the original8 complete8 and all statements and information provided therein are true and correctM &#' /t is authori.& The bid security shall be denominated in Philippine Pesos and posted in favor of the procuring entity& • Section *3& .and controlling stoc holders? and d$ "f the bidder is a 0oint venture.as may be appropriate Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer bidder or its dul9 authori.ed representative in the form prescribed b9 the PP% as to the followingB &(' /t is not FblacklistedG or barred from bidding b9 the OP or an9 of its agencies8 offices8 corporations8 or $ As8 including foreign government7 foreign or international financing institution whose blacklisting rules have been recogni.6 of this "RR& 9or this reason.the T!Gand the +AC Secretariat.ualify the bidder from participating in the procurement of contracts of the procuring entity& On the part of the bidder.

December 2009 Page #*. .Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer &*' The signator9 is the dul9 authori.ecute and perform an9 and all acts necessar9 and7or to represent the prospective bidder in the bidding8 with the dul9 notari.ed Secretar9)s Certificate attesting to such fact8 if the prospective bidder is a corporation8 partnership8 cooperative8 or "oint ventureM &.isting labor laws and standards8 in the case of procurement Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ed representative of the prospective bidder8 and granted full power and authorit9 to do8 e.' /t complies with the disclosure provision under Section *3 of the Act in relation to other provisions of R2A2 #1(+M &0' /t complies with the responsibilitie s of a prospective or eligible bidder provided in the P%DsM &3' /t complies with e.

December 2009 Page #*0 .&(& Unless otherwise stated in the +id .the financial component of the bid shall contain (12 >rom the Checklists of the first envelope and Minutes of the %id Opening identif9 the bidders who were rated passed2 ((2 >rom the Minutes of the %id Opening8 check if the second envelopes of the bidders who were rated passed was opened b9 the %AC on the same da9 when the first envelopes were opened2 (!2 Compare the Checklist with the list of documents in the second envelope per %idding Documents2 Did the %AC open onl9 the second envelopes of the bidders whose first envelopes were rated passedM Did the %AC open the second envelopes on the same da9 when the first envelopes were openedM -as the %AC)s Checklist in accordance with the list of documents in the second envelope per %idding DocumentsM Did the %AC determine each bidder)s compliance with the financial information7docum ents reCuired to be submitted in the second envelopeB &a' %idding >orms a2( %id >ormM a2! >orm of Contract AgreementM a2#2 Omnibus Sworn StatementM (#2 6alidate the entries &Fpass7failG' in the Checklist with the documents submitted b9 the bidders in the second envelope &for presence or absence'2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& The second envelope shall contain the financial information:documents as specified in the P+.6&4 "mmediately after determining compliance with the re.uirements in the second envelope of a particular bid is missing.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer of servicesM 5.as amended on September 4. T% (eri$* i$ t#e +AC %pe'ed t#e sec%'d e'(e)%pes %$ t#e bidders "#%se $irst e'(e)%pes "ere rated passed %' t#e same da* a'd determi'ed c%mp)ia'ce "it# t#e re@&ireme'ts &si'1 a '%'discreti%'ar* Dpass.uirements in the first envelopethe +AC shall forthwith open the second bid envelope of each remaining eligible bidder whose first bid envelope was rated Bpassed&C The second envelope of each complying bidder shall be opened within the same day< "n case one or more of the re.incomplete or patently insufficient.s& Philippine Bidding Documents (PBDs) for the Procurement of *nfrastructure Pro?ects.uirements for both components shall be rated BpassedC and shall immediately be considered for evaluation and comparison& • 47&.ata Sheets.$ai)E criteri%'0 as stated i' t#e I'str&cti%'s t% +idders "mplementing Rules and Regulations #"RR$ of RA '()*.the +AC shall rate the bid concerned as BfailedC& Only bids that are determined to contain all the bid re.466'8 • .466'8 • . 3rd 'dition#October 466'$ approved by the GPP+ per GPP+ Resolution %o& 6D1466' dated September .and:or if the submitted total bid price e@ceeds the A+C.6.ocuments Comprising the +id8 9inancial Component (.

uest for reconsideration within seven #3$ calendar days from receipt thereof& "f a failed bidder signifies his intent to file a re.$ calendar days upon written notice or.466'8 • 4*&3& A +idder determined as BfailedC has three #.that the re.further.6.is higher than the A+C.the +AC shall eep the bid envelopes of the said failed +idder unopened and:or duly sealed until such time that the re.upon verbal notification within which to file a re.(&( F The A+C shall be the upper limit or ceiling for acceptable bid prices& "f a bid price.Audit Sub4ob"ective • Audit Criteria the following8 a& 9inancial +id 9orm in accordance with the form prescribed in Section "L.S. T% (eri$* i$ t#e +idder of da9s >ROM the determi'ed as D$ai)edE date of bid opening s&bmitted #is re@&est $%r or date of receipt of rec%'siderati%' "it#i' 4 da*s the notice b9 the &p%' "ritte' '%tice %r0 i$ concerned %idder TO prese't at t#e time %$ bid the date of receipt %pe'i'10 &p%' (erba) b9 the %AC '%ti$icati%' Secretariat of the Philippine Bidding Documents (PBDs) for the Procurement of *nfrastructure Pro?ects.if present at the time of bid opening.uest for reconsideration with the +AC8 Provided however.+idding 9orms? and b& Any other document re.uest for reconsideration shall not be granted if it is established that the finding of failure is due to the fault of the +idder concerned8 Provided.that the +AC shall decide on the re.&4& Unless indicated in the +.uest for reconsideration.as evaluated and calculated in accordance with this "RR.uest for reconsideration or protest has been resolved1 letter4reCuest for reconsideration &dul9 stamped FreceivedG b9 the %AC Secretariat' and compare with the #4 da9 ma. 3rd 'dition#October 466'$ approved by the GPP+ per GPP+ Resolution %o& 6D1466' dated September .and relevant +AC Resolutions check if bids higher than the A%C were automaticall9 disCualified2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Did the %AC automaticall9 disCualif9 bids higher than the A%CM IN CA6E A +IDDER DETERMINED A6 DFAI9EDE FI9E6 A (2 Count the number -.December 2009 Page #*3 .the bidder submitting the same shall be automatically dis.imum2 !2 >rom the Minutes of the deliberation of the reCuest for reconsideration8 look for information and finding if the failure was due to the fault of the %idder8 and the if the %AC decided not to grant the reCuest2 #2 >rom the Minutes of the deliberation of the reCuest for reconsideration8 look for information on the period within which the %AC decided on the reCuest for REGUE6T FOR RECON6IDERATION Did the %AC ensure that the %idder determined as FfailedG submitted their reCuests for reconsideration within # da9s upon written notice or8 if present at the time of bid opening8 upon verbal notificationM Did the %AC evaluate if the failure was due to the fault of the bidderM /f in the affirmative8 did the %AC decide not to grant the reCuestM Did the %AC decide on the reCuest for reconsideration within 3 da9s from receipt thereofM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .all bids that e@ceed the A+C shall not be accepted& • .uired in the +id .ualified& There shall be no lower limit or floor on the amount of the award& Audit Activities (*2 >rom the 5inutes of +id Opening.ata Sheets& (.Abstract of +ids as Read.

Audit Sub4ob"ective • Audit Criteria Audit Activities reconsideration J from the date of receipt of the reCuest for reconsideration up to the date of decision &%AC Resolution' on the decision reachedH and compare with the 34 da9 ma.the +AC shall.at least two #4$ observers.&(& To enhance the transparency of the process.ed private group in a sector or discipline relevant to the procurement at handM #2 One representing a non4government organi.pertise in procurement or in the sub"ect matter of the contract to be bidM .in addition to the representative of the COA.ationM *2 -ith knowledge8 e.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 consideringB (2 one representing the COAM !2 One representing the dul9 recogni.4.imum period2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer IN8O98EMENT OF +AC O+6ER8ER6 IN THE +ID OPENING AND PRE9IMINARH E<AMINATION OF +ID60 INC9UDING E8A9UATION AND DECI6ION ON REGUE6T6 FOR RECON6IDERATION (2 >rom the Minutes Did the %AC -. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* "mplementing Rules and Regulations #"RR$ of RA '()*.national associations of constructors duly recogni=ed by the Construction "ndustry Authority of the Philippines Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 • Section (. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.December 2009 Page #*5 .2.2 -ith no actual or potential conflict of interest in the contract to be bidM 02 Conformed with other relevant criteria determined b9 the %ACM c.in all stages of the procurement process. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.& Observers (. represe'ti'1 t#e COA0 t#e d&)* rec%1'iIed pri(ate 1r%&p i' a sect%r %r discip)i'e re)e(a't t% t#e pr%c&reme't at #a'd0 a'd a '%'.as amended on September 4. t#at #a(e= b.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b.who shall not have the right to vote. T% (eri$* i$ t#e +AC i'(ited of the %AC meeting choose the Obser(ers= on the selection of Observers a.for e@ample8 i$ 9or infrastructure pro0ects.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.invite.ation from which the Observer will be invitedH • knowledge8 e.-. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.perience or e.perience or e.

December 2009 Page #*+ .copy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? #2 %ased on the %AC)s Minutes on the bid opening and preliminar9 evaluation of bids and the report of the Observers check whether a deliberation was made on the comments 7observations of the observers2 Did the Procuring :ntit9 consider the comments7 observations of the ObserversM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e Pr%c&ri'1 E'tit* c%'sidered t#e c%mme'ts.& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.$ Philippine "nstitute of Civil /ngineers #P"C/$& ii$ < iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .466'8 • (.&.such as.as amended on September 4.&*& The observers shall have the following responsibilities8 a$ To prepare the report either 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntity."nc&? #4$ %ational Constructors Association of the Philippines"nc&? and #.Audit Sub4ob"ective • Audit Criteria #C"AP$.A$.but not limited to the following8 #($ Philippine Constructors Association.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.%bser(ati%'s %$ t#e Obser(ers "mplementing Rules and Regulations #"RR$ of RA '()*.evelopment Authority #C.and should meet the following criteria8 a$ Hnowledge. provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer !2 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4 da9 minimum reCuirement2 Did the %AC invite the Observers at least # da9s before the date of the bid openingM 2.

Audit Sub4ob"ective • Audit Criteria b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server. provided that the% have een dul% invited in 4riting1 establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . then it is understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.e the -. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.1 .as amended on September 4.sub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/ 6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.466'8 • Observers shall be invited at least three #. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.c%mp)ia'ce %' compliance to t#e= a.&7& Observers shall be allowed access to the following documents upon their re.uest. etc.December 2009 Page #. T% (eri$* t#e e$$ects %$ instances of non4 Appropriate Audit -orking Papers i'sta'ces %$ '%'.

e the instances of non4 compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.Audit Sub4ob"ective • Audit Criteria 2.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Audit Activities Anal9.December 2009 Page #. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.( .

2 T.as amended on September 4.Chec lists for technical and financial envelopes8 Abstract of +ids as Readand +AC Resolutions identif9 the bidders who were rated FpassedG in all aspects and compare with the names of the bidders included in the bid evaluation &from the T.! .466'8 • .uirements for both components shall be rated BpassedC and shall immediately be considered for evaluation and comparison& Audit Activities (2 >rom the 5inutes of +id Opening.amination of bidsH . T% (eri$* i$ t#e +AC c%'d&cted detai)ed e(a)&ati%' %$ a)) bidders "#%se $irst e'(e)%pe (tec#'ica) c%mp%'e't! a'd sec%'d e'(e)%pe ($i'a'cia) c%mp%'e't! "ere rated passed "mplementing Rules and Regulations #"RR$ of RA '()*.report on the bid evaluation for determination of the bidder with the $C%8 as reviewed b9 the %ACH 02 Abstract of %ids as CalculatedH 32 Minutes of the %AC meeting on bid evaluationH 52 Resolution of the %AC declaring the $C%H +2 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (12 /nvitation letters to the Observers with evidence of receiptH ((2 Reports of the %AC Observers2 Audit Sub4ob"ective • Audit Criteria -. +ID E8A9UATION FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 The purpose of bid evaluation is to determine the $owest Calculated %id2 This is done b9 establishing the correct calculated prices of the bids and ranking in ascending order the total bid prices as so calculated2 The bid with the lowest price is the $C%2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC adopted the reCuired conditions and procedures in the bid evaluationH !2 To verif9 if the %AC followed the reCuired timeline in the conduct of bid evaluation2 :ST:D -ORK/@ %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R Documents needed for the evaluationB (2 Minutes of %id OpeningH !2 Checklists for technical and financial envelopesH #2 Abstract of %ids as ReadH *2 %AC Resolution&s' on the preliminar9 e.report8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 and Resolution of the +AC declaring the $C%'2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC conduct detailed evaluation onl9 of bidders who passed in the preliminar9 e.amination of bidsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .6&4& <&Only bids that are determined to contain all the bid re.I<.December 2009 Page #.

report8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 and Resolution of the +AC declaring the bidder with the $owest Calculated %id &$C%'8 look for the information on the evaluation of completeness of financial component of the bids2 #2 >rom the T.uired item is provided.as amended on September 4466'8 • .bill of .ocuments including. T% (eri$* i$ t#e +AC c%'sidered c%mp)ete'ess a'd arit#metica) c%rrecti%'s %$ t#e $i'a'cia) c%mp%'e't %$ t#e bids i' t#e detai)ed e(a)&ati%' "mplementing Rules and Regulations #"RR$ of RA '()*.# .December 2009 Page #.report8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 and Resolution of the +AC declaring the bidder with the $owest Calculated %id &$C%'8 look for the information on the evaluation of arithmetical accurac9 of financial component of the bids2 Did the %AC evaluate the arithmetical accurac9 of financial components of bidsB d2 computational errorsM e2 omissionsM f2 other bid modification8 if allowed in the %idding DocumentsM b2 Arithmetical corrections F Consider computational errors and omissions to enable proper comparison of all eligible bids& "t may also consider bid modifications if e@pressly allowed in the +idding .uantitiesshall be considered non1 responsive and.but no price is indicated.thusautomatically dis.the same shall be considered as non1responsivebut specifying a B6C #=ero$ for the said item would mean that it is being offered for free to the Government? and !2 >rom the T.ocuments OAS AM:@D:D %L PP% R:SO$AT/O@ @O2 104!11+ DAT:D S:PT #18 !11+P2 Any ad0ustment shall be calculated in monetary terms to determine the calculated prices& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .4&4&( F The +AC shall immediately conduct a detailed evaluation of all bids using non1discretionary criteria in considering the following8 a& Completeness of the bid F Unless the "nstruction to +idders specifically allow partial bidsbids not addressing or providing all of the re.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC evaluate the completeness of the financial component of the bidsM Did the %AC consider non4responsive and8 thus8 automaticall9 disCualified bids not addressing or providing all of the reCuired items in the %idding DocumentsM Did the %AC consider non4responsive and8 thus8 automaticall9 disCualified bids that did not indicate the price for a reCuired itemM 2.where a re.uired items in the +idding .where applicable.ualified& "n this regard.

4&4&*& +ids shall then be ran ed in the ascending order of their total calculated bid prices.and other bid modifications.which e@ceed the A+C shall be dis.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer • .4&4&4& The +AC shall evaluate all bids on an e.uantities.such as.466'8 Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines *2 Anal9.& "n case of discrepancies between8 #a$ bid prices in figures and in wordsthe latter shall prevail? #b$ total price per item and unit price for the item as e@tended or multiplied by the .4&4&.value added ta@ #2AT$income ta@.shall be the basis for bid evaluation and comparison& • .local ta@es.e the Treport with supporting documents and dul9 reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 Abstract of +ids as Calculated.and Did the %AC disCualif9 bidders whose bids as calculated were higher than the A%CM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #. T% (eri$* i$ t#e +AC dis@&a)i$ied bidders "#%se bids as ca)c&)ated "ere #i1#er t#a' t#e A+C "mplementing Rules and Regulations #"RR$ of RA '()*.ual footing to ensure fair and competitive bid comparison& 9or this purpose.all bidders shall be re.as evaluated and corrected for computational errors.to identify the Aowest Calculated +id& Total calculated bid prices.as evaluated and corrected for computational errors.ualified& • ReCuirements of the %idding Documents for the specific procurement2 4.and other bid modifications.the latter shall prevail? #c$ stated total price and the actual sum of prices of component items.uired to include the cost of all ta@es.but not limited to.uantity of that item.* .as amended on September 4.the latter shall prevail? #d$ unit cost in the detailed estimate and unit cost in the bill of .and other fiscal levies and duties which shall be itemi=ed in the bid form and reflected in the detailed estimates& Such bidsincluding said ta@es.the latter shall prevail& • .

openede@amined. .the bidder submitting the same shall be automatically dis. F After all bids have been received.2 Check for completeness of the information contained in the Abstract of %ids as Calculated and if this was signed b9 the members of the %AC2 Did the %AC prepare the Abstract of %ids as calculated with the following informationB a2 @ame of the contractM b2 $ocationM c2 Time of bid openingM d2 Date of bid openingM e2 Place of bid openingM f2 @ames of bidders and their corresponding calculated bid prices g2 Calculated bid prices arranged from lowest to highestM h2 Amount of bid securit9M i2 @ame of the issuing entit9M "2 @ames and signatures of the Chairman and members of the %ACM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and ran ed.is higher than the A+C.the amount of bid security and the name of the issuing entity& .December 2009 Page #.the +AC shall prepare the corresponding Abstract of +ids& <&The Abstract of +ids shall contain the following8 a& %ame of the contract and its location.as evaluated and calculated in accordance with this "RR.if applicable? b& Time..as amended on September 4.(&( F The A+C shall be the upper limit or ceiling for acceptable bid prices& "f a bid price. T% (eri$* i$ t#e +AC prepared t#e Abstract %$ +ids as Ca)c&)ated "it# t#e re@&ired i'$%rmati%' "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • Section .4&.date and place of bid opening? and c& %ames of bidders and their corresponding calculated bid prices arranged from lowest to highest.ualified& There shall be no lower limit or floor on the amount of the award& 3.evaluated.Audit Sub4ob"ective • Audit Criteria Audit Activities Resolution of the +AC declaring the bidder with the $owest Calculated %id &$C%'8 and check if the %AC disCualified bidders whose bids are higher than the A%C2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer • .

4&4&*& +ids shall then be ran ed in the ascending order of their total calculated bid prices.to identify the Aowest Calculated +id& Total calculated bid prices. T% (eri$* i$ t#e +AC '%ti$ied t#e bidder "it# t#e 9C+ "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • .Audit Sub4ob"ective • Audit Criteria 7.0 .as amended on September 4.as evaluated and corrected for computational errors.uirements to the +AC8 32 Obtain a cop9 of the notice issued b9 the %AC to the bidder with the $C% and check for receipt b9 the bidder2 Did the %AC notif9 the bidder with the $C%M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .i' t#e A stract of Bids as Calculated as t#e bidder "it# t#e 9%"est Ca)c&)ated +id (9C+! "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page #. T% (eri$* i$ t#e +AC dec)ared ra'A .e the Treport8 as reviewed b9 the %AC8 5inutes of the %AC meeting on bid evaluation8 Abstract of +ids as Calculated.and other bid modifications.the bidder shall submit the following documentary re.*&4& !ithin three #.as amended on September 4.and other bid modifications.ualified& Audit Activities 02 Anal9.which e@ceed the A+C shall be dis.as evaluated and corrected for computational errors.466'8 • .and Resolution of the +AC declaring the bidder with the $owest Calculated %id &$C%'8 and check if rank ( in the Abstract was declared as the bidder with the $owest Calculated %id &$C%'2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC declare rank ( in the Abstract of +ids as Calculated as the bidder with the $owest Calculated %id &$C%'M 5.$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated +id or >ighest Rated +id.

c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB c.3 . da9s for pro"ects costing P.4&* The entire evaluation process shall be completed within seven #3$ calendar days from the deadline for receipt of proposals& >owever.2. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b.466'8 +2 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.4.for infrastructure pro0ects costing 9ifty 5illion Pesos #P76-666-666$ and below.pertise in procurement or in the sub"ect matter of the contract to be bidM e2 -ith no actual or potential conflict of interest in the contract to be Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ation from which the Observer will be invitedH • knowledge8 e.466'8 • . '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.ed private group in a sector or discipline relevant to the procurement at handM c2 One representing a non4government organi. T% (eri$* i$ t#e +AC i'(ited Obser(ers= a. represe'ti'1 t#e COA0 t#e d&)* rec%1'iIed pri(ate 1r%&p i' a sect%r %r discip)i'e re)e(a't t% t#e pr%c&reme't at #a'd0 a'd a '%'. t#at #a(e= b.as amended on September 4.ationM d2 -ith knowledge8 e.as amended on September 4.perience or e.December 2009 Page #.-. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* "mplementing Rules and Regulations #"RR$ of RA '()*.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Did the %AC choose the Observers consideringB a2 one representing the COAM b2 One representing the dul9 recogni.perience or e. T% (eri$* i$ t#e +AC c%mp)eted t#e e(a)&ati%' %$ bids "it#i' se(e' (:! ca)e'dar da*s $r%m t#e dead)i'e $%r receipt %$ pr%p%sa)s (7 ca)e'dar da*s $%r i'$rastr&ct&re pr%Cects c%sti'1 P70 mi))i%' a'd be)%"! "mplementing Rules and Regulations #"RR$ of RA '()*.the entire evaluation process shall be completed in not more than five #7$ calendar days from the deadline for receipt of proposal& Audit Activities 52 >rom the "nvitation to +id and the 5inutes of +id /valuation determine the number of da9s from the deadline for receipt of proposals and the completion of the bid evaluation2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Did the %AC complete the evaluation process within seven &3' calendar da9s from the deadline for receipt of proposalM &.1 million and below'M 2.Audit Sub4ob"ective • Audit Criteria :.

&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .in addition to the representative of the COA.5 .and should meet the following criteria8 a$ Hnowledge.who shall not have the right to vote.for e@ample8 i$ 9or infrastructure pro0ectsnational associations of constructors duly recogni=ed by the Construction "ndustry Authority of the Philippines #C"AP$.$ calendar days before the date of the procurement stage:activity& The absence of (12 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement Did the %AC invite the observers at least # da9s from the date of the bid evaluationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .A$.evelopment Authority #C.at least two #4$ observers.December 2009 Page #.the +AC shall.but not limited to the following8 #($ Philippine Constructors Association.$ Philippine "nstitute of Civil /ngineers #P"C/$& ii$ < iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.invite.&."nc&? #4$ %ational Constructors Association of the Philippines.&(& To enhance the transparency of the process.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& o (.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer bidM f2 Conformed with other relevant criteria determined b9 the %ACM • Section (.& Observers (.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.& Observers shall be invited at least three #."nc&? and #.such as.in all stages of the procurement process.

+ .provided that they have been duly invited in writing& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer .&*& The observers shall have the following responsibilities8 a$ To prepare the report either 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntity. then it is understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and (12 %ased on the %AC)s Minutes on the bid evaluation and the report of the Observers check whether a deliberation was made on the comments 7observations of the observers2 Did the Procuring :ntit9 consider the comments7 observations of the ObserversM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e Pr%c&ri'1 E'tit* c%'sidered t#e c%mme'ts.Audit Sub4ob"ective • Audit Criteria observers will not nullify the +AC proceedings.466'8 • (.%bser(ati%'s %$ t#e Obser(ers "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page #.as amended on September 4.copy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server.

$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. etc. provided that the% have een dul% invited in 4riting1 develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uest.December 2009 Page #01 . T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.&7& Observers shall be allowed access to the following documents upon their re.sub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/ 6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals1 Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. establish the effects and c%mp)ia'ce %' t#e= a.e the instances of -. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #.Audit Sub4ob"ective • Audit Criteria c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Audit Activities Anal9.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria 2.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Suggested Audit -orking Paper Particulars Audit =uestion Le @ of the s o Answer Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.December 2009 Page #0( . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.

returns8 c' Certificate of Phil :PS RegistrationH and d' Other appropriate licenses and permits reCuired b9 law and stated in the %idding Documents8 submitted b9 the bidder with the $C%H #2 Cop9 each of the documents submitted b9 the bidder with the $C%H *2 Constructors Performance :valuation S9stem &CP:S' reports obtained b9 the %AC from the Construction /ndustr9 Authorit9 of the Philippines &C/AP'H .December 2009 Page #0! .GUA9IFICATION FOR THE FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 The $owest Calculated %id &$C%' shall undergo post4Cualification in order to determine whether the bidder concerned complies with and is responsive to all the reCuirements and conditions as specified in the %idding Documents2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the %AC adopted the reCuired conditions and procedures in the conduct of post4CualificationH !2 To verif9 if the %AC followed the reCuired timeline in the conduct of post4 Cualification2 :ST:D -ORK/@ %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R Documents needed for evaluationB (2 %AC Resolution declaring the bidder with the $C%H !2 Cop9 of the %AC Secretariat)s Receiving logbook indicating information on receipt of theB a' Ta. clearance8 b' $atest income and business ta.2 Documents evidencing the %AC)s validation of the veracit9 of the documents submitted and the information thereonH 02 T. PO6T.<.report on the post4Cualification conducted8 including supporting documents &e2g2 inspection reports'8 as reviewed b9 the %ACH evidencingB a2 validation of the authenticit9 of the documents submitted and information thereonH b2 validation of compliance of the goods offered with the reCuirements specified in the %idding Documents8 dul9 supported withB inspection reports on the goods offered and test resultsH c2 validation of the sufficienc9 of the bid securit9 as to t9pe8 amount8 form and wording8 validit9 periodH d2 validation of compliance with the financial reCuirements of the $C%H e2 conduct of anal9sis and concluding on the post4Cualification or disCualification of the bidder8 as the case ma9 beH Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

ClearanceM c2 $atest income and business ta.466'8 • .December 2009 Page #0# .uired by law and stated in the +idding . clearance8 b' $atest income and business ta.*&4& !ithin three #.uirements to the +AC8 a$ Ta@ clearance? b$ Aatest income and business ta@ returns? c$ Certificate of PhilG/PS Registration? and d$ Other appropriate licenses and permits re. returnsM d2 Certificate of Phil :PS RegistrationM e2 Other appropriate licenses and permits reCuired b9 law and stated in the %idding DocumentsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . returns8 c' Certificate of Phil :PS RegistrationH and d' Other appropriate licenses and permits reCuired b9 law and stated in the %idding Documents2 Compare this with the reCuired ma.report&s' on the evaluation of the post4disCualified bidder&s') reCuest for reconsideration8 as reviewed b9 the %ACH +2 Minutes of the post4Cualification activitiesH (12 Cop9 of the document approved b9 the ?OP: e.imum #4da9 period2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer Did the bidder with the $C%B a2 submit within # calendar da9s from receipt of the notice as $C%M b2 Ta. 6i'1)e Ca)c&)ated +id (6C+! s&bmitted t#e $%))%"i'1 d%c&me'ts "it#i' 4 ca)e'dar da*s $r%m t#e bidderFs receipt %$ t#e '%tice= a! Ta? c)eara'ceB b! 9atest i'c%me a'd b&si'ess ta? ret&r'sB c! Certi$icate %$ P#i)GEP6 Re1istrati%'B a'd d! Ot#er appr%priate )ice'ses a'd permits re@&ired b* )a" a'd stated i' t#e +iddi'1 D%c&me'ts "mplementing Rules and Regulations #"RR$ of RA '()*.ocuments& Audit Activities (2 >rom the records of the %AC8 count the number of da9s from the date when the bidder with the $C% received the notice and the date it submitted theB a' Ta.32 %AC Resolutions on post4Cualification7post4disCualification8 declaration of $CR%8 and recommendation to the ?OP:H 52 T.the bidder shall submit the following documentary re.as amended on September 4.tending the period for the post4Cualification process8 if applicableH ((2 Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (!2 Reports of the %AC Observers2 Audit Sub4ob"ective • Audit Criteria -.$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated +id or >ighest Rated +id. T% (eri$* "#et#er t#e bidder "#%se bid "as dec)ared as t#e 9%"est Ca)c&)ated +id (9C+!.

$%r$eited t#e bid sec&rit* a'd dis@&a)i$ied t#e bidder $%r a"ard $%r reas%' t#atB a. T% (eri$* i$ t#e +AC= 2.-.%r b. determi'ed t#e (eracit* %$ t#e d%c&me'ts s&bmitted a'd 2.2. t#e bidder $ai)ed t% s&bmit t#e re@&ired d%c&me'ts %' time0 a'd.December 2009 Page #0* . t#ere "as a $i'di'1 a1ai'st t#e (eracit* %$ t#e d%c&me'ts.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer 2. i'$%rmati%' !2 /f based on the validation conducted in (2 above8 the submissions were found to be incomplete and7or not on time8 obtain a cop9 of the %AC Resolution disCualif9ing the bidder and forfeiting its bid securit92 #2 Obtain from the %AC Secretariat documents evidencing the %AC)s validation of the veracit9 of the documents submitted and the information thereon and check the results of such validation2 Did the %AC forfeit the bid securit9 and disCualif9 the bidder for award because of failure to submit the reCuired documents on timeM Did the %AC forfeit the bid securit9 and disCualif9 the bidder for award because of a finding against the veracit9 of the documents7 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

the bidder shall submit the following documentary re. T% (eri$* i$ t#e +AC (eri$ied0 (a)idated0 a'd ascertai'ed t#at t#e bidder "it# t#e 9C+ is= a.@&a)i$icati%' "mplementing Rules and Regulations #"RR$ of RA '()*.2 >rom the T. .*&( The Aowest Calculated +id shall undergo post1.ocuments& *2 Match the name of the bidder with the $C% as indicated in the %AC Resolution declaring the $C% with the name of the bidder indicated in the T.uirements to the +AC8 a$ Ta@ clearance? b$ Aatest income and business ta@ returns? c$ Certificate of PhilG/PS Registration? and d$ Other appropriate licenses and permits re.uirements and conditions as specified in the +idding .*&4&!ithin three #. a d&)* )ice'sed Fi)ipi'% citiIe'.December 2009 Page #0.s%)e pr%priet%r0 %r b.uirements on time or a finding against the veracity of such shall be ground for the forfeiture of the bid security and dis.as amended on September 4.ualification in order to determine whether the bidder concerned complies with and is responsive to all the re.466'8 • .466'8 • .as amended on September 4.Audit Sub4ob"ective • Audit Criteria "mplementing Rules and Regulations #"RR$ of RA '()*.$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated +id or >ighest Rated +id. T% (eri$* i$ t#e +AC s&bCected t#e bidder "it# t#e 9%"est Ca)c&)ated +id (9C+! t% p%st.uired by law and stated in the +idding .report with supporting documents and dul9 reviewed b9 the %AC8 and the 5inutes of %AC meetings8 look for information evidencing validation of the authenticit9 of theB a' DT/ Registration Did the %AC validate the authenticit9 of the Registration documents submitted b9 the bidderM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .)s Post4=ualification Report8 as reviewed b9 the %AC and in the Minutes of the %AC meetings2 Did the %AC sub"ect the bidder with the $owest Calculated %id &$C%' to post4 CualificationM 3.ualify the bidder for award& Audit Activities /f the %AC had a finding against the veracit9 of the documents7 information thereon8 obtain a cop9 of the %AC Resolution disCualif9ing the bidder and forfeiting its bid securit92 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer informationM 4. a Part'ers#ips d&)* %r1a'iIed &'der t#e )a"s .ocuments& 9ailure to submit the above re.

and ascertain licenses. C%%perati(es d&)* %r1a'iIed &'der t#e )a"s %$ t#e P#i)ippi'es0 a'd %$ "#ic# at )east se(e't* $i(e perce't (:7N! be)%'1s t% citiIe's %$ t#e P#i)ippi'es0 %r e.as amended on September 4.ualification shall verify.the following8 a$ Aegal Re.Q >ilipino ownership8 dul9 supported withB • the S:C4certified cop9 of the Registration Certificate8 if the bidder is a partnershipH c2 S:C registration and of the 01Q >ilipino ownership8 dul9 supported withB • S:C4certified cop9 of the Registration Certificate and • S:C4certified cop9 of the Articles of /ncorporation if the bidder is a corporation2 d2 CDA registration and of the 3.certificates.466'8 • .the GPP+ shall maintain a consolidated file of all Bblac listedC supplierscontractors.ocuments& These criteria shall consider.and consultants& Audit Activities Certificate8 dul9 supported withB • the DT/4certified cop9 of the Registration Certificate and • DT/ certificate that the sole proprietor is a >ilipino citi.en &based on the application for registration filed b9 the bidder with the DT/'8 if the bidder is a sole proprietorshipH b2 S:C registration and of the 3.Q >ilipino ownership8 dul9 supported withB • CDA4certified cop9 of the Registration Certificate and • CDA certificate that at least si.as stated in the +idding .Audit Sub4ob"ective • Audit Criteria %$ t#e P#i)ippi'es a'd %$ "#ic# at )east se(e't* $i(e perce't (:7N! %$ t#e i'terest be)%'1s t% citiIe's %$ t#e P#i)ippi'es0 %r c.validate.*&.December 2009 Page #00 .and the fact that it is not included in any Bblac listC as provided in Section 47&4 of this "RR& 9or this purpose. t#at Fi)ipi'% %"'ers#ip %r i'terest %$ t#e C%i't (e't&re c%'cer'ed s#a)) be at )east se(e't* $i(e perce't (:7N! "mplementing Rules and Regulations #"RR$ of RA '()*. /%i't 8e't&re .and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.but shall not be limited to.using non1discretionary criteria.ens of the Philippines if the bidder is a cooperative e2 Eoint 6enture individual partner)sB Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer N Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .validate.permitsand agreements submitted by the bidder.& The post1.t9 percent &01Q' belongs to citi. a C%rp%rati%' d&)* %r1a'iIed &'der t#e )a"s %$ t#e P#i)ippi'es0 a'd %$ "#ic# at )east se(e't* $i(e perce't (:7N! %$ t#e %&tsta'di'1 capita) st%cA be)%'1s t% citiIe's %$ t#e P#i)ippi'es0 %r d.uirements& To verify.

finally.Audit Sub4ob"ective • Audit Criteria • 4.ues and:or technologies which are not ade.&7&4& 9or the procurement of infrastructure pro0ects8 4.December 2009 Page #03 .uly licensed 9ilipino citi=ens:sole proprietorships? b$ Partnerships duly organi=ed under the laws of the Philippines and of which at least seventy1five percent #37K$ of the interest belongs to citi=ens of the Philippines? c$ Corporations duly organi=ed under the laws of the Philippines.and of which at least seventy percent #37K$ belongs to citi=ens of the Philippines? or e$ Persons:entities forming themselves into a 0oint venturei&e&.&7&4&(& The following persons:entities shall be allowed to participate in the bidding for infrastructure pro0ects8 a$ .report8 as reviewed b9 the %AC8 and the 5inutes of %AC meetings8 look for information evidencing validation of >ilipino ownership of the bidder)s firm2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer Did the %AC validate >ilipino ownership of the bidderM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .9ilipino ownership or interest shall be based on the contributions of each of the members of the 0oint venture as Audit Activities • DT/8 S:C8 or CDA registrations and • of the 3.That 0oint ventures in which 9ilipino ownership or interest is less than seventy1five percent #37K$ may be eligible where the structures to be built re.further.a group of two #4$ or more persons:entities that intend to be 0ointly and severally responsible or liable for a particular contract8 Providedhowever.and of which at least seventy1five percent #37K$ of the outstanding capital stoc belongs to citi=ens of the Philippines? d$ Cooperatives duly organi=ed under the laws of the Philippines.in accordance with Aetter of "nstructions %o& D.9ilipino ownership or interest shall not be less than twenty1five percent #47K$& 9or this purpose.uire the application of techni.9ilipino ownership or interest of the 0oint venture concerned shall be at least seventy1five percent #37K$8 Provided.uirement8 Provided.That.Q >ilipino ownership dul9 supported with the DT/48 S:C48 or CDA4certified Certificate8 as the case ma9 be and DT/48 S:C48 or CDA4certified documents evidencing ownership2 02 >rom the T.That in the latter case.uately possessed by a person:entity meeting the seventy1five percent #37K$ 9ilipino ownership re.6 #AO" D.6$.

and agreements submitted by the bidder.and ascertain licenses.only the following documents shall be re.&7 of this "RR.ocuments-8 a$ Class BAC .December 2009 Page #05 . T% (eri$* i$ t#e +AC Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4.466'8 • .certificatespermits.uired by the +AC.validate.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.&(& 9or purposes of determining the eligibility of bidders using the criteria stated in Section 4.Audit Sub4ob"ective • Audit Criteria specified in their G2A& Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer 7. T% (eri$* i$ t#e +AC (eri$ied0 (a)idated0 a'd ascertai'ed t#at t#e Ma*%rFs Permit s&bmitted b* t#e bidder "it# t#e 9C+ "as iss&ed b* t#e cit* %r m&'icipa)it* "#ere t#e pri'cipa) p)ace %$ b&si'ess %$ t#e pr%specti(e bidder is )%cated "mplementing Rules and Regulations #"RR$ of RA '()*.validate.ocuments& These criteria shall consider.using non1discretionary criteria.report8 as reviewed b9 the %AC8 and the 5inutes of %AC meetings8 look for information evidencing validation of authenticit9 of the Ma9or)s Permit and whether it was issued b9 the cit9 or municipalit9 where the principal place of the business of the bidder is located8 dul9 supported withB • The $ A4certified cop9 of the Ma9or)s permit8 and • DT/48 S:C48 or CDA4 certified Registration Certificate showing the bidder)s principal place of business Did the %AC verif98 validate8 and ascertain that the Ma9or)s Permit submitted b9 the bidder is authenticM Did the %AC verif98 validate8 and ascertain that the Ma9or)s Permit submitted b9 the bidder was issued b9 the cit9 or municipalit9 where the principal place of business of the bidder is locatedM N 4.as stated in the +idding .and the fact that it is not included in any Bblac listC as provided in Section 47&4 of this "RR& 9or this purpose.but shall not be limited to.and consultants& • 32 >rom the T.using the forms prescribed in the +idding .ocuments Aegal .& The post1.ocuments i$ 111 ii$ 5ayorEs permit issued by the city or municipality where the principal place of business of the prospective bidder is located& 52 >rom the Treport8 Did the %AC 5.the GPP+ shall maintain a consolidated file of all Bblac listedC supplierscontractors.ualification shall verify.uirements& To verify.*&.the following8 a$ Aegal Re.

the following8 a$ Aegal Re.&7&4&.&(& Technical .as amended on September 4.a valid Philippine Contractors Accreditation +oard #PCA+$ license and registration for the type and cost of the contract to be bid& Audit Activities as reviewed b9 the %AC8 and the 5inutes of %AC meetings8 check for information showing the %AC)s validation of theB • authenticit9 of the PCA% license and registration8 • for the t9pe of contract to be bid2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer verif98 validate8 and ascertain that the PCA% license and registration submitted b9 the bidder is authenticM Did the %AC validate if the bidder with the $C% has a valid license and registration issued b9 the Philippine Contractors Accreditation %oard &PCA%' to engage or act as a contractor for the t9pe of contract to be bidM :.ocuments& These criteria shall consider.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.validate.*&.466'8 • .ualification shall verify.as amended on September 4.permits.& The post1.the persons:entities enumerated in Section 4.466'8 • 4.& "n accordance with R&A& *7DD.entitled BAn Act Creating the Philippine Aicensing +oard for ContractorsPrescribing its Powers.ocuments iii$ < iv$ "n the case of procurement of infrastructure pro0ects.Audit Sub4ob"ective • Audit Criteria (a)idated i$ t#e bidder "it# t#e 9C+ #as a (a)id )ice'se a'd re1istrati%' iss&ed b* t#e P#i)ippi'e C%'tract%rs Accreditati%' +%ard (PCA+! t% e'1a1e %r act as a c%'tract%r $%r t#e t*pe %$ c%'tract t% be bid "mplementing Rules and Regulations #"RR$ of RA '()*.and the fact that it is +2 >rom the T.and agreements submitted by the bidder. T% (eri$* i$ t#e +AC (a)idated i$ t#e bidder "it# t#e 9C+ is '%t Db)acA)istedE "mplementing Rules and Regulations #"RR$ of RA '()*.and ascertain licensescertificates.as stated in the +idding .uties and 9unctions.and for Other PurposesC.&7&(&( of this "RR may participate in public bidding if he has been issued a license by the PCA+ to engage or act as a contractor& • 4.but shall not be limited to.December 2009 Page #0+ .Providing 9unds Therefor.report8 as reviewed b9 the %AC8 and the 5inutes of %AC meetings8 check for information showing the %AC)s validation if the bidder with the $C% is not FblacklistedG2 Did the %AC validate if the bidder with the $C% was not blacklistedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uirements& To verifyvalidate..using non1 discretionary criteria.

T% (eri$* i$ t#e +AC (a)idated t#e bidderFs c%mp)ia'ce "it# t#e D'% re)ati%'s#ipE pr%(isi%' emb%died i' 6ecti%' 3: %$ t#e Re(ised IRR %$ RA N%. -230 i.isclosure of Relations All bids shall be accompanied by a sworn affidavit of the bidder that it is not related to the >ead of the Procuring /ntitymembers of the +AC. contractors.the T!Gand the +AC Secretariat. and consultants1 Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer 2.e.Audit Sub4ob"ective • Audit Criteria not included in an% 8 lac9list: as provided in Section !.M d2 members of the %AC SecretariatM e2 head of the Pro"ect Management Office &PMO'M f2 head of the end4user unitM g2 pro"ect consultantsM ((2 >rom the Treport8 as reviewed b9 the %AC8 the Minutes of %AC meetings7deliberations and %AC Resolution8 check for information showing the %AC)s decision7action in case of violation with the Fno relationshipG provision2 Did the %AC automaticall9 disCualif9 the bidder found to be related within the #rd civil degree of consanguinit9 or affinit9 with the persons listed in Section *3 of the Revised /RR of RA +(5*M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . members %$ t#e +AC0 c. members %$ t#e T>G0 d. HOPE0 b. members %$ t#e +AC 6ecretariat0 e.1! of this *++1 <or this purpose.0 t#at t#e bidder is '%t re)ated b* c%'sa'1&i'it* %r a$$i'it* &p t% t#e 4rd ci(i) de1ree t% t#e= a.&ser &'it0 1. #ead %$ t#e e'd.6 of this "RR& 9or this reasonrelation to the aforementioned persons 4ithin the third civil degree of consanguinit% or affinit% shall automaticall% dis6ualif% the idder from participating in the procurement of contracts of the procuring entit%1 On the part of the bidderthis (12 >rom the Treport8 as reviewed b9 the %AC8 the Minutes of %AC meetings7 deliberations and %AC Resolution8 check for information showing the %AC)s validation thatB a2 the individual bidder in an individual or a sole proprietorship8 is not related to the persons mentioned in Sec2 *38 Amended /RR of RA +(5*H b2 all the officers and members of the bidder partnership are not related to the persons mentioned in Sec2 *38 Amended /RR of RA +(5*H c2 all the officers8 directors8 and controlling stockholders of the bidder corporation are not related to the persons mentioned in Sec2 *38 Amended /RR of RA +(5*2 Did the %AC validate the relationship of the bidder with theB a2 ?OP:M b2 members of the %ACM c2 members of the T. pr%Cect c%'s&)ta'ts • Section *3& .ualification of the bid in consonance with Section .and the pro0ect consultantsby consanguinity or affinity up to the third civil degree& 9ailure to comply with the aforementioned provision shall be a ground for the automatic dis.December 2009 Page #31 . the &PPB shall maintain a consolidated file of all 8 lac9listed: suppliers.the head of the P5O or the end1user unit. #ead %$ t#e Pr%Cect Ma'a1eme't O$$ice (PMO!0 $.

1Q' of the A%C to be bid2 Did the %AC validate if the bidder with the $C% has completedB a2 within a period of ten &(1' 9ears from the date of submission and receipt of bidsM b2 of at least one &(' contract that is similar to the contract to be bidM c2 and whose value8 ad"usted to current prices using the @SO consumer price indices is at least fift9 percent &.directors.for the procurement of infrastructure pro0ects and consulting services? • 4.report dul9 reviewed b9 the %AC8 and the 5inutes of %AC meetings8 check for information showing the %AC)s validation of the completion b9 the bidder within a period of ten &(1' 9ears from the date of submission and receipt of bids8 of at least one &(' contract that is similar to the contract to be bid8 and whose value8 ad"usted to current prices using the @SO consumer price indices is at least fift9 percent &.to all its officers and members? c$ "f the bidder is a corporation.uirements specified in the +idding .where applicable8 i$ 2erification and validation of the bidderEs stated competence and e@perienceand the competence and e@perience of the bidderEs ey personnel to be assigned to the pro0ect.#b$or #c$ of this Section shall correspondingly apply to each of the members of the said 0oint venture.within a period of ten #(6$ years from the date of submission and receipt of bids.as stated in the +idding .uirements& To determine compliance of the goods.& The post1.but shall not be limited to.Audit Sub4ob"ective • Audit Criteria provision shall apply to the following persons8 a$ "f the bidder is an individual or a sole proprietorship.infrastructure pro0ectsor consulting services offered with the re.1Q' of the Allowable Range of Contract Cost &ARCC' of their registration based on the guidelines as prescribed b9 the PCA%2 Did the %AC validate if for bidder under Small A and Small % categories without similar e.December 2009 Page #3( .&7&4&7& The prospective bidder must have an e@perience of having completed.report8 as reviewed b9 the %AC8 and the 5inutes of %AC meetings8 check for information showing the %AC)s validation that for contractors under Small A and Small % categories without similar e.to the bidder himself? b$ "f the bidder is a partnership.perience on the contract to be bid8 the cost of such contract is not more than fift9 percent &.1Q' of the A%C to be bidM OR >rom the T.the following8 < b$ Technical Re.ocuments& These criteria shall consider.validate.ocumentsincluding.and controlling stoc holders? and d$ "f the bidder is a 0oint venturethe provisions of items #a$.*&.to all its officers.as may be appropriate . T% (eri$* i$ t#e +AC (a)idated t#e bidderFs stated c%mpete'ce a'd e?perie'ce "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.ualification shall verify.466'8 • .and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.perience on the contract to be bid the A%C is not more than .using non1 discretionary criteria.at least one #($ Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer (!2 >rom the T.1Q of ARCCM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

T% (eri$* i$ t#e +AC (a)idated t#e stated c%mpete'ce a'd e?perie'ce %$ t#e bidderFs Ae* pers%''e) t% be assi1'ed t% t#e pr%Cect Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • .*&.using non1 discretionary criteria.a contract shall be considered 8similar: to the contract to be bid if it has the same ma?or categories of 4or91 -0.validate.but shall not be limited to.perience of the bidder)s ke9 personnel to be assigned to the pro"ect against the reCuirements of the %idding DocumentsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the following8 < b$ Technical Re.perience of the bidder)s ke9 personnel to be assigned to the pro"ectH and validation of said competence and e.& The post1.December 2009 Page #3! .ocuments- (#2 >rom the T.the GOP and the foreign government: foreign or international financing institution may agree on another trac record re.perience with the reCuirements of the %idding Documents2 Did the %AC verif98 validate8 and ascertain that the documents submitted b9 the bidder as evidence of the competence and e.ocuments& These criteria shall consider.as stated in the +idding .uirements specified in the +idding .uirement& 5oreover.ualification shall verify.uirements& To determine compliance of the goods.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id:>ighest Rated +id.must be at least fifty percent #76K$ of the A+C to be bid8 Provided.infrastructure pro0ectsor consulting services offered with the re.ad0usted to current prices using the %SO consumer price indices.That contractors under Small A and Small + categories without similar e@perience on the contract to be bid may be allowed to bid if the cost of such contract is not more than fifty percent #76K$ of the Allowable Range of Contract Cost #ARCC$ of their registration based on the guidelines as prescribed by the PCA+& 9or 9oreign1funded Procurement.report with supporting documents and dul9 reviewed b9 the %AC8 and the 5inutes of %AC meetings8 check for information showing the %AC)s validation of the authenticit9 of the documents submitted as evidence of the competence and e.and whose value.Audit Sub4ob"ective • Audit Criteria contract that is similar to the contract to be bid.perience of its ke9 personnel to be assigned to the pro"ect license were authenticM Did the %AC validate the stated competence and e.however.

T% (eri$* i$ t#e +AC (a)idated t#e a(ai)abi)it*0 c%mmitme't0 capacities a'd %perati'1 c%'diti%'s %$ e@&ipme't &'its t% be %"'ed.uirements specified in the +idding .)eased.&'der p&rc#ase b* t#e bidder $%r &se i' t#e c%'tract &'der biddi'1 Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 < b$ Technical Re.of e.where applicable8 i$ < ii$ 2erification of availability and commitment.uired capacities and operating conditions.or substandard .ation8 inspection reports and test results8 check for information showing the %AC)s validation of the availabilit98 commitment8 capacities and operating conditions of eCuipment units to be owned7leased7 under purchase b9 the bidder for use in the contract under bidding2 Did the %AC validate the availabilit98 commitment8 capacities and operating conditions of eCuipment units to be owned7leased7 under purchase b9 the bidder for use in the contract under biddingM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .and:or inspection and testing for the re.where applicable8 i$ 2erification and validation of the bidderEs stated competence and e@perienceand the competence and e@perience of the bidderEs ey personnel to be assigned to the pro0ect.uipment units to be owned:leased:under purchase by the bidder for use in the contract under biddingas well as chec ing the performance of the bidder in its ongoing government and private contracts #if any of these on1going contracts shows a reported negative slippage of at least fifteen percent #(7K$.uirements& To determine compliance of the goods.ocumentsincluding.or unsatisfactory performance of the contractorEs obligations as per contract terms and (*2 >rom the Treport8 as reviewed b9 the %AC8 and the 5inutes of %AC meetings8 dul9 supported with anal9sis of schedules of eCuipment utili.infrastructure pro0ectsor consulting services offered with the re.for the procurement of infrastructure pro0ects and consulting services& --.December 2009 Page #3# .Audit Sub4ob"ective • Audit Criteria including.uality of wor as per contract plans and specifications.

466'8 • .Q'M or b2 substandard Cualit9 of work as per contract plans and specificationsM or c2 unsatisfactor9 performance of the contractor)s obligations as per contractM and d2 verified that the deficiencies were due to the contractor)s fault or negligenceM Did the %AC disCualif9 the bidder found to be at fault or negligentM Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC c#ecAed t#e per$%rma'ce %$ t#e bidder i' its %'.and if the +AC verifies any of these deficiencies to be due to the contractorEs fault or negligence.as amended on September 4.report dul9 reviewed b9 the %AC8 the Minutes of %AC meetings7 deliberations and %AC Resolution8 check for information showing the %AC)s Did the %AC validate the bidder)s performance in its ongoing government and private contracts forB a2 reported negative slippage of at least fifteen percent &(.Audit Sub4ob"ective • Audit Criteria conditions.uirements specified in the +idding . rep%rted 'e1ati(e s)ippa1e %$ at )east $i$tee' perce't (-7N!0 %r b.*&. &'satis$act%r* per$%rma'ce %$ t#e c%'tract%rFs %b)i1ati%'s as per c%'tract terms a'd c%'diti%'s0 at t#e time %$ i'specti%'0 a'd (eri$ied t#at t#e de$icie'cies "ere d&e t% t#e c%'tract%rFs $a&)t %r 'e1)i1e'ce "mplementing Rules and Regulations #"RR$ of RA '()*.ocumentsincluding.for the procurement of infrastructure pro0ects? iii$< iv$< -2.December 2009 Page #3* .1%i'1 1%(er'me't a'd pri(ate c%'tracts $%r= a.uirements& To determine compliance of the goods.where applicable8 i$ < ii$ < as well as chec ing the performance of the bidder in its ongoing government and private contracts #if any of these on1going contracts shows a reported negative slippage of at least fifteen percent #(7K$.at the time of inspection.infrastructure pro0ectsor consulting services offered with the re. s&bsta'dard @&a)it* %$ "%rA as per c%'tract p)a's a'd speci$icati%'s0 %r c.the agency shall dis.or Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer (.ualify the contractor from the award$.Q'8 or b2 substandard Cualit9 of work as per contract plans and specifications8 or c2 unsatisfactor9 performance of the contractor)s obligations as per contract and verified that the deficiencies were due to the contractor)s fault or negligence2 (02 >rom the T.report dul9 reviewed b9 the %AC8 and the 5inutes of %AC meetings8 dul9 supported with inspection reports and test results8 photographs8 interview documents with owners7pro"ect personnel of previous7current pro"ects of the bidder8 check for information showing the %AC)s validation of the performance of the bidder in its ongoing government and private contracts forB a2 reported negative slippage of at least fifteen percent &(.& b$ Technical Re.2 >rom the T.

.Audit Sub4ob"ective • Audit Criteria substandard .%r certi$icate %$ c%mp)eti%' a'd %"'erFs accepta'ce %$ t#e c%'tract "as at )east satis$act%r* "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • 4. "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • . T% (eri$* i$ t#e +AC (a)idated t#at t#e bidderFs C%'str&ct%rs Per$%rma'ce E(a)&ati%' 6&mmar* a'd.report dul9 reviewed b9 the %AC8 the Minutes of %AC meetings7 deliberations and %AC Resolution8 check for information showing the %AC)s validation of the authenticit9 of the bid securit9 and its sufficienc9 as to t9pe8 amount8 form and wording8 and validit9 period2 Did the %AC verif98 validate8 and ascertain the authenticit9 of the bid securit9 submitted b9 the bidderM Did the %AC ascertain the sufficienc9 of the bid securit9 as toB a2 t9peM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #3.uality of wor as per contract plans and specifications.or unsatisfactory performance of the contractorEs obligations as per contract terms and conditions. t*pe0 b.at the time of inspection.& The post1.*&. am%&'t0 c.and if the +AC verifies any of these deficiencies to be due to the contractorEs fault or negligence.ualification (52 >rom the T.&7&4&*& The Constructors Performance /valuation System OAS AM:@D:D %L PP% R:SO$AT/O@ @O2 ((4!11+ DAT:D #1 @O6:M%:R !11+P #CP/S$ rating and:or certificate of completion and ownerEs acceptance of the contract must be satisfactory& (32 >rom the Treport8 as reviewed b9 the %AC8 the Minutes of %AC meetings7 deliberations and %AC Resolution8 with copies of the CP:S' reports obtained b9 the %AC from the Construction /ndustr9 Authorit9 of the Philippines &C/AP'8 check for information showing the %AC)s validation of the bidder)s ratings in the CP:S and7or certificates of completions and owner)s acceptance that the ratings were at least Fsatisfactor9G2 Did the %AC validate that the bidder)s ratings in the CP:S and7or certificates of completion and owner)s acceptance were at least Fsatisfactor9GM -3. T% (eri$* i$ t#e +AC (eri$ied0 (a)idated0 a'd ascertai'ed a&t#e'ticit* %$ t#e bid sec&rit* a'd its s&$$icie'c* as t%= a. (a)idit* peri%d. for the procurement of infrastructure pro?ects? iii$< iv$< Audit Activities evaluation and decision to disCualif9 the bidder found to be at fault or negligent2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer -4.the agency shall dis6ualif% the contractor from the a4ard). $%rm a'd "%rdi'10 a'd d.

using non1 discretionary criteria.the following8 a& Aegal Re.Audit Sub4ob"ective • Audit Criteria shall verify.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id.uirements <& b$ Technical Re.& The post1.December 2009 Page #30 .amount.466'8 • .form and wording.or the bidderEs %9CC to ensure that the (+2 >rom the T.ocuments& These criteria shall considerbut shall not be limited to.*&. T% (eri$* i$ t#e +AC Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer b2 amountM c2 form and wordingM d2 validit9 periodM (eri$ied0 (a)idated0 a'd ascertai'ed i$ t#e Net Fi'a'cia) C%'tracti'1 Capacit* (NFCC! is at )east e@&a) t% t#e A+C %r t#e Credit 9i'e Certi$icate (C9C! i' $a(%r %$ t#e pr%specti(e bidder i$ a"arded t#e c%'tract is at )east -0N %$ t#e A+C "mplementing Rules and Regulations #"RR$ of RA '()*.ocuments.the following8 a$ Aegal Re.report dul9 reviewed b9 the %AC with supporting documents from the appropriate authorities &e2g2 certified true cop9 of the financial statements with the /ncome Ta.uirements < c$ 9inancial Re.and ascertain all statements made and documents submitted by the bidder with the Aowest Calculated +id.validate.uired CAC in the amount specified and over the period stipulated in the +idding .uirements To verify.ualification shall verify.uirements< b$ Technical Re. Return8 bank that issued the C$C'8 the Minutes of %AC meetings7deliberations and %AC Resolution8 check for information showing the %AC)sB a2 validation of the authenticit9 of the C$C or the financial statements used as basis for computing the @>CC8 b2 validation of the accurac9 of the computation for @>CC8 c2 validation of the Statement of the prospective bidder of all its ongoing and completed government and private contracts8 including contracts awarded but not 9et started8 and d2 comparison with the reCuirements2 Did the %AC verif98 validate8 and ascertain the authenticit9 of the documents &financial statements8 etc2' submitted b9 the bidder to support its computation of @>CCM Did the %AC verif98 validate8 and ascertain that theB a2 @>CC is at least eCual to the A%CM or b2 C$C is at least (1Q of the A%CM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .validate.using non1 discretionary criteria.validate and ascertain the bid price proposal of the bidder andwhenever applicable.as stated in the +idding .and validity period& -7.the re.as stated in the +idding .uirements& i$< ii$< iii$< iv$ Ascertainment of the sufficiency of the bid security as to type.as amended on September 4.ocuments& These criteria shall considerbut shall not be limited to.

including awarded contracts yet to be started coinciding with the contract to be bid& !here8 H M (6 for a contract duration of one year or less.ual to ten percent #(6K$ of the A+C to be bid& "f the CAC is issued by a foreign Universal or Commercial +an .and 46 for a contract duration of more than two years& "f the prospective bidder submits a CAC.December 2009 Page #33 .whether similar or not similar in nature and comple@ity to the contract to be bid.the %9CC must be at least e.within the relevant period as provided in the +idding .uired in the P+.if any.Audit Sub4ob"ective • Audit Criteria bidder can sustain the operating cash flow of the transaction& • 4.&(& < Technical .ocuments& The statement shall include all information re.including contracts awarded but not yet started.the prospective bidder may also submit CAC from other ban s certified by the +SP as authori=ed to issue such financial instrument& • 4.the CAC must be at least e.ual to the A+C to be bid.it shall be confirmed or authenticated by a Universal or Commercial +an & 9or biddings conducted by AGUs.ocuments iii$ Statement of the prospective bidder of all its ongoing and completed government and private contracts.s prescribed by the GPP+& Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .calculated as follows8 %9CC M N#Current assets minus current liabilities$ #H$O minus the value of all outstanding or uncompleted portions of the pro0ects under ongoing contracts.&7&(&*& "f the prospective bidder submits a computation of its %9CC.(7 for a contract duration of more than one year up to two years.

the +AC determines that the bidder with the Aowest Calculated +id fails the criteria for post1. FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 (2 >rom the records of Did the %AC -:. T% (eri$* i$ t#e +AC dec)ared t#e p%st.ualification and grounds for it& • . ObCecti(es i' case %$ P%st.whichever is lower& Audit Activities !12 >rom the post Cualification report of the T. IN CA6E OF PO6T.DI6GUA9IFICATION OF THE +IDDER >ITH THE 9O>E6T CA9CU9ATED +ID (9C+! .Audit Sub4ob"ective • Audit Criteria -5.466'8 • . dis@&a)i$icati %' %$ t#e bidder "it# t#e 9C+.and notwithstanding any pending for the grounds for such disCualification indicated thereon2 Did the %AC indicate in the notice the grounds for post4 disCualificationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .*&D& "mmediately after the +AC has notified the first bidder of its post1dis.*&*& "f the +AC determines that the bidder with the Aowest Calculated +id passes all the criteria for post1.dis@&a)i$icati%' the %AC Secretariat8 check for information on notif9 the $C% of %$ t#e 9C+ immediate)* the date of receipt b9 the post4 '%ti$ied t#e 9C+ i' "riti'1 the post4disCualified disCualificationM %$ t#e p%st.dis@&a)i$icati%' bidder of the notice of "it# t#e 1r%&'ds $%r it.with supporting documents and dul9 reviewed b9 the %AC8 computations and anal9sis8 check if the $C% passed all the criteria for post Cualification2 !(2 Match the name of the $CR% as approved b9 the ?OP: with the name of bidder as indicated in the %AC Resolution declaring the results of the post4Cualification and recommending $CR%8 if applicable2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer Did the %AC pass the $C%7bidder with the $C% in all the criteria for post4 CualificationM Did the %AC declare the bid of the post4 Cualified $C% as the $owest Calculated Responsive %id &$CR%'M /f Hes8 proceed toB A>ARD OF CONTRACT2 /f N%8 proceed to the A&dit 6&b.and recommend to the >ead of the Procuring /ntity the award of contract to the said bidder at its submitted bid price or its calculated bid price.@&a)i$ied bidder "it# 9C+ as t#e 9%"est Ca)c&)ated Resp%'si(e +id (9CR+! at its s&bmitted bid price %r its ca)c&)ated bid price0 "#ic#e(er is )%"er "mplementing Rules and Regulations #"RR$ of RA '()*.ualification.it shall declare the said bid as the Aowest Calculated Responsive +id.however. post4disCualification and "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4.*&7& "f. T% (eri$* i$ t#e +AC0 i' immediatel9 case %$ p%st.December 2009 Page #35 .as amended on September 4.ualificationit shall immediately notify the said bidder in writing of its post1 dis.466'8 • .ualification.

T% (eri$* i$ t#e +AC c%'d&cted a'd c%mp)eted t#e p%st.ualified as the bidder with the Aowest Calculated Responsive +id& "f the second bidder passes the post1 .uest for reconsideration of the first bidder has been denied.Audit Sub4ob"ective • Audit Criteria re.ualification process on the bidder with the second Aowest Calculated +id& "f the second bidder passes the post1 .ualification process on the bidder with the second Aowest Calculated +id& !2 $ook for the Treport on the post4 Cualification of the second rank bidder as reviewed b9 the %AC2 #2 Repeat the audit activities of on post4 Cualification for the second rank bidder2 *2 Anal9.the +AC shall initiate and complete the same post1 .ualified as the bidder with the Aowest Calculated Responsive +id& Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer -2.@&a)i$icati%' pr%cess ad%pted $%r t#e 9C+ "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • .e the post4 Cualification reports of the T.*&D& < the +AC shall initiate and complete the same post1.8 as reviewed b9 the %AC8 for the $C% and the second rank bidder to check whether the T.ualification.and provided that the re.uest for reconsideration of the first bidder has been denied.the second bidder shall be post1.the second bidder shall be post1.December 2009 Page #3+ .@&a)i$icati%' %$ t#e sec%'d ra'A bidder &si'1 t#e same p%st.uest for reconsideration thereof.adopted the same process of verif9ing8 validating and ascertaining all statements made and documents submitted b9 the $C% and the second rank bidder2 Did the %AC conduct and complete the post4Cualification of the second rank bidderM Did the %AC adopt the same process of verif9ing8 validating and ascertaining all statements made and documents submitted b9 the $C% and the second rank bidderM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ualification.and provided that the re.

Audit Sub4ob"ective • Audit Criteria Audit Activities 52 >rom the post Cualification report of the T.*&D& "mmediately after the +AC has notified the first bidder of its post1dis.466'8 • .and notwithstanding any pending re. T% (eri$* i$ t#e +AC dec)ared t#e 9C+ as t#e 9CR+ a$ter its re@&est $%r rec%'siderati%' "as 1ra'ted a'd it "as dec)ared p%st.@&a)i$ied "mplementing Rules and Regulations #"RR$ of RA '()*. dis@&a)i$icati %' %$ t#e bidder "it# t#e 9C+.@&a)i$ied second/ran9 bidder as t#e 9CR+ a$ter a re@&est $%r rec%'siderati %' %$ t#e 9C+ ($irst.ra'A bidder0 t#e +AC is t% repeat t#e p%st. T#e re)ated a&dit acti(ities are )iAe"ise t% be repeated.ra'A0 %r 'e?t.. /f Hes8 proceed to the Audit Sub4ob"ective to (eri$* i$ t#e +AC dec)ared t#e p%st. dis@&a)i$icati%' %$ t#e 'e?t. .ualification. ObCecti(es in case of P%st. @&a)i$icati%' pr%cess &'ti) t#e 9CR+ is dec)ared $%r a"ard.uest for reconsideration thereof.8 as reviewed b9 the %AC8 check if the second rank bidder passed the post Cualification2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer Did the second rank bidder pass the post4 CualificationM NOTE= F%r eac# p%st.i'. ra'A0 a t#e case ma* be! #as bee' de'ied /f N%0 proceed to the A&dit 6&b.as amended on September 4.the +AC shall initiate !32 >rom the Minutes of the %AC meeting8 anal9.ra'A0 sec%'d.December 2009 Page #51 .e if the %AC declared the $C% as the $CR% after its reCuest for reconsideration has been granted and it was declared post4Cualified2 !52 Match the name of the $CR% as approved b9 the ?OP: with the name of bidder as indicated in the %AC resolution recommending the $CR%2 Did the %AC declare the $C% as the $CR% after its reCuest for reconsideration was granted and it was declared post4CualifiedM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

Audit Sub4ob"ective • Audit Criteria and complete the same post1 .ualified as the bidder with the Aowest Calculated Responsive +id& !+2 >rom the Minutes of the %AC meeting8 anal9.ualification.e if the %AC declared the post4 Cualified second1ran bidder as the $CR% after a reCuest for reconsideration of the $C% &first4rank' has been denied2 #12 Match the name of the $CR% as approved b9 the ?OP: with the name of bidder as indicated in the %AC resolution recommending the $CR%2 Did the %AC declare the post4 Cualified second1 ran bidder as the $CR% after a reCuest for reconsideration of the $C% &first4 rank' has been deniedM 2-.the second bidder shall be post1.ualification process on the bidder with the second Aowest Calculated +id& "f the second bidder passes the post1 .and notwithstanding any pending re.as amended on September 4. T% (eri$* i$ t#e +AC c%mp)eted t#e p%st.ualification.466'8 • .uest for reconsideration of the first bidder has been denied.ualification.December 2009 Page #5( .and provided that the re.*&D& "mmediately after the +AC has notified the first bidder of its post1dis.the second bidder shall be post1.the +AC shall initiate and complete the same post1 .ualified as the bidder with the Aowest Calculated Responsive +id& Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer 20.@&a)i$ied second/ran9 bidder as t#e 9CR+ a$ter a re@&est $%r rec%'siderati%' %$ t#e 9C+ ($irst.uest for reconsideration thereof. @&a)i$icati%' pr%cess i' '%t m%re t#a' se(e' (:! ca)e'dar da*s $r%m t#e determi'ati%' %$ t#e 9C+ %r i$ e?te'ded0 s&c# e?te'si%' "as appr%(ed b* t#e HOPE a'd '%t e?ceedi'1 40 #(2 Compute the number of da9s from the %AC Resolution declaring the $C% and the %AC Resolution declaring the $CR%8 and compare this with the 34calenda94da9 reCuirement2 Did the %AC complete the post4Cualification process in not more than seven &3' calendar da9s from the determination of the $C%M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ra'A! #as bee' de'ied "mplementing Rules and Regulations #"RR$ of RA '()*.and provided that the re.ualification process on the bidder with the second Aowest Calculated +id& "f the second bidder passes the post1 . T% (eri$* i$ t#e +AC dec)ared t#e p%st.uest for reconsideration of the first bidder has been denied.

perience or e.*&)& The post1.466'8 • Section (.ationM -ith knowledge8 e.6$ calendar days& Audit Activities #!2 /f the %AC completed the post4Cualification in more than seven &3' calendar da9s8 secure a cop9 of the document approved b9 the ?OP: e.as amended on September 4.tending the period for the post4Cualification process2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer /f the %AC completed the post4Cualification in more than seven &3' calendar da9s8 was the e.2.in all stages of the procurement process. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.ualification period may be e@tended by the >ead of the Procuring /ntitybut in no case shall the aggregate period e@ceed thirty #.ualification process shall be completed in not more than seven #3$ calendar days from the determination of the Aowest Calculated +id& "n e@ceptional cases.perience or e.-.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Did the %AC choose the Observers consideringB a2 one representing the COAM One representing the dul9 recogni.the +AC shall. at )east 4 ca)e'dar da*s pri%r t% t#e P%st.at least d2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .tension approved b9 the ?OP:M /f the %AC completed the post4Cualification in more than seven &3' calendar da9s8 was the e.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b. @&a)i$icati%' ##2 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.pertise in procurement or in the sub"ect matter of the contract to be bidM b2 c2 "mplementing Rules and Regulations #"RR$ of RA '()*. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.4.&(& To enhance the transparency of the process.the post1. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB c.466'8 • .in addition to the representative of the COA.& Observers (.December 2009 Page #5! .tension within the #14calendar da9 ma. T% (eri$* i$ t#e +AC i'(ited Obser(ers= a.imumM 22. represe'ti'1 t#e COA0 t#e d&)* rec%1'iIed pri(ate 1r%&p i' a sect%r %r discip)i'e re)e(a't t% t#e pr%c&reme't at #a'd0 a'd a '%'.invite.Audit Sub4ob"ective • Audit Criteria ca)e'dar da*s "mplementing Rules and Regulations #"RR$ of RA '()*. t#at #a(e= b.ed private group in a sector or discipline relevant to the procurement at handM One representing a non4 government organi.as amended on September 4.ation from which the Observer will be invitedH • knowledge8 e.

and should meet the following criteria8 a$ Hnowledge.December 2009 Page #5# .&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .$ Philippine "nstitute of Civil /ngineers #P"C/$& ii$ < iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.%bser(ati%'s %$ t#e Obser(ers #.Audit Sub4ob"ective • Audit Criteria two #4$ observers.2 %ased on the %AC)s Minutes on the Post =ualification and the report of the Observers check whether a Did the Procuring :ntit9 consider the comments7 observations of the ObserversM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .for e@ample8 i$ 9or infrastructure pro0ectsnational associations of constructors duly recogni=ed by the Construction "ndustry Authority of the Philippines #C"AP$.evelopment Authority #C."nc&? #4$ %ational Constructors Association of the Philippines.but not limited to the following8 #($ Philippine Constructors Association.who shall not have the right to vote.A$.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand."nc&? and #. provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer e2 -ith no actual or potential conflict of interest in the contract to be bidM Confo rmed with other relevant criteria determined b9 the %ACM f2 #*2 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement2 Did the %AC invite the observers at least # da9s from the date of the post4 CualificationM 24.&.such as. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* c%'sidered t#e c%mme'ts.

T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.uestsub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals1 Audit Activities deliberation was made on the comments 7observations of the observers2 Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.466'8 • (. establish the effects and c%mp)ia'ce %' t#e= a.e the instances of -.Audit Sub4ob"ective • Audit Criteria "mplementing Rules and Regulations #"RR$ of RA '()*. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.&7& Observers shall be allowed access to the following documents upon their re.as amended on September 4.copy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server.December 2009 Page #5* . then it is understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.&*& The observers shall have the following responsibilities8 a$ To prepare the report either 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntity. (a)idit* %$ a'* pa*me't Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .

etc.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #. . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.Audit Sub4ob"ective • Audit Criteria t% be made %' t#e basis %$ t#e c%'tractB c. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Particulars of Audit =uestion Les @o the Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.December 2009 Page #5.

A>ARD OF CONTRACT FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the conditions7reCuirements and procedures for the award of contract were adhered to b9 the procuring entit9H !2 To verif9 if the award was made within the prescribed periodH #2 To verif9 if the conditions7reCuirements8 procedures and timelines for entering into and approval of the contract were adhered to b9 the procuring entit92 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for the evaluationB (2 Minutes of the %AC meetings on post4CualificationH !2 %AC Resolution declaring the $CR%7SCR% and recommending award8 approved b9 the ?OP:8 with the following supporting documentsB a2 Abstract of %ids8 b2 Dul9 approved program of work and Cost :stimates8 c2 Document issued b9 appropriate entit9 authori.<I.ing the procuring entit9 to incur obligations for a specified amount8 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page #50 .

466'8 • .2 Cop9 of the portions of the receiving records of the %AC8 with information on the date of submission of the Eoint 6enture Agreement &E6A'8 if the winning bidder is a Eoint 6entureH and the date of posting of the performance securit9H 02 Cop9 of the performance securit9 posted b9 the winning bidderH 32 Cop9 of the complete set of contract documents dul9 signed and approved b9 higher authoritiesH 52 Cop9 of the polic9 and schedule of approving authoritiesH +2 :vidences of postings at the Phil :PS and the procuring entit9)s websitesH (12 :vidences of postings at the conspicuous place at the premises of the procuring entit9H ((2 Cop9 of the Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (!2 Cop9 of reports of the %AC ObserversH (#2 Cop9 of the document with the ?OP:)s disapproval of the award and the "ustifications thereto8 dul9 received b9 the %ACH (*2 /n case of disapproval of the %AC)s recommendation for award8 cop9 of the document with the ?OP:)s instructions on the steps to be adopted b9 the %AC2 Audit Sub4ob"ective • Audit Criteria -.d2 Other pertinent documents reCuired b9 e.3&(&(& The +AC shall recommend to the >ead of the Procuring /ntity the award of contract to the bidder with the Aowest Calculated Responsive +id or the Single Calculated Responsive +id after the post .as amended on September 4.isting laws8 rules and7or the procuring entit9 concerned2 #2 @otice of Award signed b9 the ?OP:8 with date of release to and receipt b9 the winning bidderH *2 Cop9 of the bid securit9 of the winning bidder stamped received b9 the %AC SecretariatH .December 2009 Page #53 .ualification process has been completed& Audit Activities (2 Compare the $CR% determined b9 the %AC in its deliberations &per Minutes of the %AC meeting' with the $CR% recommended for award in the +AC Resolution& 2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer Did the %AC recommend to the ?OP: the award of contract to the bidder with $CR% or the SCR%M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC rec%mme'ded t#e bidder "it# t#e 9%"est Ca)c&)ated Resp%'si(e +id (9CR+! %r 6i'1)e Ca)c&)ated Resp%'si(e +id (6CR+!0 i$ )%'e0 t% t#e HOPE $%r a"ard "mplementing Rules and Regulations #"RR$ of RA '()*.

uly approved program of wor or delivery scheduleand Cost /stimates? d$ .and 0ustifiable grounds to be e@pressed in writing.reasonable.4.3&(&4& !ithin a period not e@ceeding seven #3$ calendar days from the date of receipt of the recommendation of the +AC.the period provided herein shall be fifteen #(7$ calendar days& • .such disapproval shall be based only on valid.3&(&.the >ead of the Procuring /ntity shall approve or disapprove the said recommendation& < "n the case of GOCCs and G9"s.& "n case of approvalthe >ead of the Procuring /ntity shall immediately issue the %otice of Award to the bidder with the Aowest Calculated Responsive +id& "n the event the >ead of the Procuring /ntity shall disapprove such recommendation.uired by e@isting lawsrules and: or the procuring entity concerned& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer • . !2 >rom the Tevaluation report with supporting documents and dul9 reviewed b9 the %AC and %AC Resolution declaring the $CR% and recommending award8 look for information on the contract amount recommended b9 the Did the %AC recommend to the ?OP: the award of the contract to the bidder with the $CR% at the lower of the submitted price and its calculated bid priceM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria To facilitate the approval of the award.a copy furnished the +AC& 2. T% (eri$* i$ t#e +AC rec%mme'ded t% t#e HOPE t#e a"ard %$ t#e c%'tract t% t#e bidder "it# t#e 9CR+ at its s&bmitted price %r its ca)c&)ated bid price0 "#ic#e(er is )%"er0 s&bCect t% IT+ C)a&se 40.the +AC shall submit the following supporting documents to the >ead of the Procuring /ntity8 a$ Resolution of the +AC recommending award? b$ Abstract of +ids? c$ .ocument issued by appropriate entity authori=ing the procuring entity to incur obligations for a specified amount? and e$ Other pertinent documents re.December 2009 Page #55 .

and recommend to the >ead of the Procuring /ntity the award of contract to the said +idder at its submitted price or its calculated bid pricewhichever is lower. D%c&me't iss&ed b* appr%priate e'tit* a&t#%riIi'1 t#e pr%c&ri'1 e'tit* t% i'c&r %b)i1ati%'s $%r a speci$ied am%&'tB a'd e.ualification.as amended on September 4.ing the procuring entit9 to incur obligations for a specified amountM e2 Other pertinent documents reCuired b9 e. Ot#er perti'e't d%c&me'ts re@&ired b* e?isti'1 )a"s0 r&)es a'd. D&)* appr%(ed pr%1ram %$ "%rA a'd C%st EstimatesB d. %r t#e pr%c&ri'1 e'tit* c%'cer'ed "mplementing Rules and Regulations #"RR$ of RA '()*.isting laws8 rules and7or the Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . Abstract %$ +idsB c.it shall declare the said bid as the Aowest Calculated Responsive +id.December 2009 Page #5+ .466'8 • 4)&*& "f the +AC determines that the +idder with the Aowest Calculated +id passes all the criteria for post1.6.#October 466'$ approved by the GPP+ per GPP+ Resolution %o& 6D1466' dated September . 3rd 'dition. T% (eri$* i$ t#e +AC s&bmitted t#e $%))%"i'1 d%c&me'ts t% t#e HOPE "it# t#e rec%mme'dati%' $%r a"ard= a.& 4.sub0ect to "T+ Clause .6&. Res%)&ti%' %$ t#e +AC rec%mme'di'1 a"ardB b.Audit Sub4ob"ective • Audit Criteria Audit Activities %AC for award2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer Philippine Bidding Documents (PBDs) for the Procurement of *nfrastructure Pro?ects.466'8 • .3&(&(& The +AC shall recommend to the >ead of the Procuring /ntity the award of contract to the bidder with the Aowest Calculated Responsive +id or the Single Calculated #2 >rom the %AC Chairman)s letter for the ?OP: submitting the results and the documents pertaining to the recommendation8 dul9 received b9 the Office of the ?OP:8 look for information on the documents submitted2 Did the %AC submit the following documents to the ?OP: with the recommendation for awardB a2 Resolution of the %AC recommending awardM b2 Abstract of %idsM c2 Dul9 approved program of work and Cost :stimatesM d2 Document issued b9 appropriate entit9 authori.

the +AC shall submit the following supporting documents to the >ead of the Procuring /ntity8 a$ Resolution of the +AC recommending award? b$ Abstract of +ids? c$ .uly approved program of wor or delivery scheduleand Cost /stimates? d$ .#er d&)* a&t#%riIed %$$icia)0 appr%(ed t#e 9CR+.GFIs! "mplementing Rules and Regulations #"RR$ of RA '()*.4 calendar4da9 period for OCCs7 >/s'M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the >ead of the Procuring /ntity shall approve or disapprove the said recommendation within four #*$ calendar days& *2 Determine the number of da9s from the date of receipt b9 the ?OP: of the recommendation for award to the date of approval and compare with the *4da98 34da9 or (.3&(&4& !ithin a period not e@ceeding seven #3$ calendar days from the date of receipt of the recommendation of the +AC.ualification process has been completed& To facilitate the approval of the award.December 2009 Page #+1 .for infrastructure pro0ects with an A+C of 9ifty 5illion Pesos #P76-666-666$ and below. T% (eri$* i$ t#e HOPE0 %r #is.69R+ rec%mme'ded b* t#e +AC $%r a"ard "it#i' : ca)e'dar da*s (3 ca)e'dar da*s $%r i'$rastr&ct&re pr%Cects c%sti'1 P70 mi))i%' a'd be)%"! $r%m t#e date %$ receipt %$ t#e rec%mme'dati%' $r%m t#e +AC (-7 ca)e'dar da*s $%r GOCCs.Audit Sub4ob"ective • Audit Criteria Responsive +id after the post .4da9 period2 Did the ?OP: approve the %AC recommendation for award within the *48 34calendar4da9 period &or (.ocument issued by appropriate entity authori=ing the procuring entity to incur obligations for a specified amount? and e$ Other pertinent documents re.the >ead of the Procuring /ntity shall approve or disapprove the said recommendation& >owever.466'8 • .as amended on September 4.uired by e@isting lawsrules and: or the procuring entity concerned& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer procuring entit9 concernedM 3.

as amended on September 4.a copy furnished the +AC& .as amended on September 4.3&(&4& !ithin a period not e@ceeding seven #3$ calendar days from the date of receipt of the recommendation of the +AC.& "n case of approval.reasonable.3&(&.Audit Sub4ob"ective • Audit Criteria "n the case of GOCCs and G9"sthe period provided herein shall be fifteen #(7$ calendar days& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer 7.466'8 • .December 2009 Page #+( .the >ead of the Procuring /ntity shall approve or 52 >rom the notices to the losing bidders8 look for the date of its receipt and compare with the 34 da9 or *4da9 reCuirement2 +2 Also compare the names of the losing bidders notified with those appearing in the Abstract of %ids2 Did the %AC notif9 all the losing bidders within the 3 calendar da9 period 7 * calendar da9 period for A%C P.466'8 • .the >ead of the Procuring /ntity shall immediately issue the %otice of Award to the bidder with the Aowest Calculated Responsive +id& "n the event the >ead of the Procuring /ntity shall disapprove such recommendation. I' case %$ appr%(a)0 t% (eri$* i$ t#e N%tice %$ A"ard "as iss&ed t% t#e "i''i'1 bidder immediate)* a'd "it#i' t#e (a)idit* peri%d %$ t#e bid sec&rit* "mplementing Rules and Regulations #"RR$ of RA '()*.such disapproval shall be based only on valid. disappr%(e t#e +ACFs Res%)&ti%'! "mplementing Rules and Regulations #"RR$ of RA '()*.and 0ustifiable grounds to be e@pressed in writing.2 Compare the name of the bidder appearing in the @otice of Award with the winning bidder per approved %AC Resolution2 02 Compare the date of release of the @otice of Award with the date of approval of the %AC Resolution recommending the award2 32 Compare the date of the release of the @otice of Award with the e. T% (eri$* i$ t#e +AC '%ti$ied a)) t#e )%si'1 bidders "it#i' t#e : %r 3 ca)e'dar da* peri%d (same peri%d pr%(ided $%r t#e HOPE t% appr%(e.pir9 date of the bid validit9 period2 -as the @otice of Award as recommended b9 the %AC and approved b9 the ?OP: immediatel9 issued to the winning bidderM -as the @otice of Award as recommended b9 the %AC and approved b9 the ?OP: issued to the winning bidder within the bid validit9 period of the bid securit9M • .3&(&7& Contract award shall be made within the bid validity period provided in Section 4) of this "RR& • Anne@ C Period of Action on Procurement Activities 5.181118111 and below &same period provided for the ?OP: to approve7 disapprove the %AC)s Resolution'M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

T% (eri$* i$ t#e +AC p%sted t#e N%tice %$ A"ard "it#i' 4 da*s $r%m its iss&a'ce at t#e= a. "ebsite %$ t#e pr%c&ri'1 e'tit*0 a'd c. "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4. a'* c%'spic&%&s p)ace i' t#e premises %$ t#e pr%c&ri'1 e'tit*.if any.the %otice of Award in the PhilG/PS.shall post.December 2009 Page #+! .within three #.$ calendar days from its issuance.the >ead of the Procuring /ntity shall approve or disapprove the said recommendation within four #*$ calendar days& "n the case of GOCCs and G9"sthe period provided herein shall be fifteen #(7$ calendar days& !ithin the same period provided herein the +AC shall notify all losing bidders of its decision& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer :.through the Secretariat.Audit Sub4ob"ective • Audit Criteria disapprove the said recommendation& >owever.466'8 • . P#i)GEP6 "ebsite0 b.for infrastructure pro0ects with an A+C of 9ifty 5illion Pesos #P76-666-666$ and below.3&(&D& The +AC.the website of the procuring entity.and any conspicuous place in the premises of the procuring entity& (12 Access the Phil :PS website and the website of the procuring entit98 and conduct inspection of the area where the @otice of Award is to be posted on the #rd da9 from the issuance of the @otice of Award to the winning bidder2 Did the %AC post the @otice of Award within # da9s from its issuance at theB a2 Phil :PS websiteM b2 website of the procuring entit9M And c2 an9 conspicuous place in the premises of the procuring entit9M 2. T% (eri$* i$ t#e pr%c&ri'1 e'tit* %bser(ed t#e $%))%"i'1 c%'diti%'s $%r t#e e?ec&ti%' %$ t#e c%'tract= a! 6&bmissi%' %$ (a)id C%i't (e't&re a1reeme't0 i$ app)icab)e0 "it#i' -0 da*s $r%m receipt %$ t#e N%tice %$ A"ard b* t#e "i''i'1 /%i't 8e't&re bidder0 ((2 >rom the receiving records of the %AC8 compare the date of submission of the Eoint 6enture Agreement &E6A' with the reCuired (1 da9s from receipt of the @otice of Award2 Did the bidder submit the E6A within ten &(1' calendar da9s from receipt of the notice of awardM (!2 >rom the receiving records of the %AC8 compare the date of posting of the -as the performance securit9 posted within ten &(1' calendar da9s Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

2 Compare the signator9 &approval' in the contract with the authori.3&(&*& %otwithstanding the issuance of the %otice of Award.466'8 Audit Activities performance securit9 with the reCuired (1 da9s from receipt of the @otice of AwardH also compare with the date of the signing of the contract2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer from receipt b9 the winning bidder of the @otice of Award & prior to the signing of the contract? (#2 Compare the amount8 currenc98 form8 issuing entit98 and validit9 period of the performance securit9 posted b9 the winning bidder with the reCuirements of Sec #+2! of the Revised /RR of RA +(5*2 -as the performance securit9 posted in theB a2 right amountM b2 right currenc9M c2 right formM d2 right issuing entit9M e2 right validit9 periodM • .1 million and below'M &!.December 2009 Page #+# .1 M and below' from receipt &!.ed representativeM -as the contract approved b9 higher authorit9 within (.as the case may be? or ii$ "n case of infrastructure pro0ects. da9s for infrastructure pro"ects costing P.6 calendar days from (*2 Compare the date of signing of the contract with the reCuired (14da9 period from receipt of the @otice of Award2 -as the contract signed within (1 calendar da9s from receipt of the @otice of Award b9 the winning bidderM /f further approval b9 higher authorit9 is reCuired8 was the contract approved b9 appropriate approving authorit9 or his7her dul9 authori.as amended on September 4.Audit Sub4ob"ective • Audit Criteria b! P%sti'1 %$ per$%rma'ce sec&rit* "it#i' te' (-0! ca)e'dar da*s $r%m receipt b* t#e "i''i'1 bidder %$ t#e N%tice %$ A"ard L pri%r t% t#e si1'i'1 %$ t#e c%'tract i' t#e re@&ired am%&'t0 c&rre'c*0 $%rm0 iss&i'1 e'tit*0 a'd (a)id &'ti) t#e iss&a'ce b* t#e pr%c&ri'1 e'tit* %$ t#e $i'a) certi$icate %$ accepta'ce0 c! 6i1'i'1 %$ t#e c%'tract "it#i' t#e same te' (-0! da* peri%d pr%(ided t#at a)) t#e d%c&me'tar* re@&ireme'ts are c%mp)ied "it#0 d! Appr%(a) b* #i1#er a&t#%rit*0 i$ re@&ired0 "it#i' -7 da*s $r%m receipt (27 da*s $%r GOCCs! "mplementing Rules and Regulations #"RR$ of RA '()*.if applicablewithin ten #(6$ calendar days from receipt by the bidder of the notice from the +AC that the bidder has the Aowest Calculated Responsive +id.award of contract shall be sub0ect to the following conditions8 a$ Submission of the following documents within the prescribed period8 i) 2alid G2A.ed signator9 as reCuired b9 relevant regulations7policies and as shown b9 a cop9 of a valid appointment or office order2 (02 Compare the date of approval of the contract b9 higher authorit9 with the (. calendar da9s for OCCs'M (.within .4da94period &. da9s for infrastructure pro"ects costing P.valid PCA+ license and registration for the type and cost of the contract to be bid for foreign bidders. calendar da9s &. da9s for OCCs'2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

'&4& The performance security shall be in an amount e.when the treaty or international or e@ecutive agreement e@pressly allows submission of the PCA+ license and registration for the type and cost of the contract to be #sic$ as a pre1condition to the notice of award& e$ Posting of performance security in accordance with Section .'&(& To guarantee the faithful performance by the winning bidder of its obligations under the contract in accordance with the +idding .uired.if re.as provided in Section .cashierEs: managerEs chec issued by a Universal or Commercial +an b$ +an draft: guarantee or irrevocable letter of credit issued by a Universal or Commercial +an ? Provided.' of this "RR? f$ Signing of the contract as provided in Section .ual to a percentage of the total contract price in accordance with the following schedule8 OAS AM:@D:D A@D:R PP% R:SO$AT/O@ @O2 104!11+ DAT:D #1 S:PT:M%:R !11+P 9orm of Performance Security Amount of Performance Security #/.'& Performance Security .3&4 of this "RR? g$ Approval by higher authority.howeverthat it shall be confirmed or authenticated by a Two percent #4K$ Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .ual to Percentage of the Total Contract Price a$ Cash.December 2009 Page #+* .it shall post a performance security prior to the signing of the contract& .3&.ocuments. of this "RR& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer • .Audit Sub4ob"ective • Audit Criteria receipt by the bidder of the notice from the +AC that the bidder has the ACR+.

the concerned board or its duly authori=ed representative shall be given a ma@imum of twenty1five #47$ calendar days from receipt thereof to approve or disapprove it& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .3&4&4& The procuring entity shall enter into contract with the winning bidder within the same ten #(6$ day period provided that all the documentary re.uirements are complied with& • .if issued by a foreign ban & c$ Surety bond callable upon demand issued by a surety or insurance company duly certified by the "nsurance Commission as authori=ed to issue such security& d$ Any combination of the foregoing& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer 9ive percent #7K$ Proportionat e to share of form with respect to total amount of security • .3&.for infrastructure pro0ects with an A+C of 9ifty 5illion Pesos #P76-666-666$ and below.3&4& Contract Signing . .December 2009 Page #+.3&4&(& The winning bidder shall post the re.uired Performance Security and enter into contract with the procuring entity within ten #(6$ calendar days from receipt by the winning bidder of the %otice of Award& .uiredthe approving authority for the contract or his duly authori=ed representative shall be given ma@imum of fifteen #(7$ calendar days from receipt thereof to approve or disapprove it& >owever.the ma@imum period is five #7$ calendar days& "n the case of GOCCs.Audit Sub4ob"ective • Audit Criteria Universal or Commercial +an .& Contract Approval by >igher Authority !hen further approval of higher authority is re.

3&4&.isting laws and7or the procuring entit9 concerned in the %idding Documents8 such as the construction schedule and 6.December 2009 Page #+0 . c&r(e8 manpower schedule8 construction methods8 eCuipment utili.uired by e@isting laws and:or the procuring entity concerned in the +idding .ecution for a cop9 of the complete set of documents comprising the contract and compare with the reCuirements2 IN CA6E OF DI6APPRO8A9 +H THE HOPE OF THE +ACF6 RECOMMENDATION FOR A>ARD – Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& The following documents shall form part of the contract8 a$ Contract Agreement? b$ +idding .466'8 • . T% (eri$* i$ t#e c%'tract is c%mp)ete "mplementing Rules and Regulations #"RR$ of RA '()*.construction safety and health program approved by the .uirements.uipment utili=ation schedule.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer Are the contract documents complete8 consisting of the followingB a' Contract AgreementH b' %idding DocumentsH c' -inning bidder)s bid8 including the :ligibilit9 reCuirements8 Technical and >inancial Proposals8 and all other documents7stateme nts submittedH d' Performance Securit9H e' Credit line in accordance with the provisions of this /RR8 if applicableH f' @otice of Award of ContractH and g' Other contract documents that ma9 be reCuired b9 e.ocumentssuch as the construction schedule and S1curvemanpower scheduleconstruction methodse.ocuments? c$ !inning bidderEs bidincluding the /ligibility re.if applicable? f$ %otice of Award of Contract? and g$ Other contract documents that may be re.epartment of Aabor and /mploymentand P/RT:CP5 for infrastructure pro0ects& (32 Obtain from the %AC Secretariat or the Pro"ect Management Office or the Office responsible for pro"ect implementation7 contract e.as amended on September 4.Technical and 9inancial Proposals.and all other documents:statements submitted? d$ Performance Security? e$ Credit line in accordance with the provisions of this "RR.ation schedule8 construction safet9 and health program approved b9 the Department of $abor and :mplo9ment8 and P:RT7CPM for infrastructure pro"ectsM .

published by the GPP+8 • >ow is a contract awardedP < 7& "n case of disapproval of the recommendation of award the >OP/ shall state the reasons for disapproval and instruct the +AC on the subse.& "n case of approvalthe >ead of the Procuring /ntity shall immediately issue the %otice of Award to the bidder with the Aowest Calculated Responsive +id& "n the event the >ead of the Procuring /ntity shall disapprove such recommendation.reasonableand 0ustifiable grounds to be e@pressed in writing. "ritte' i'str&cti%'s %' t#e s&bse@&e't steps t% be ad%pted "ere 1i(e' t% t#e +AC "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • . I' case %$ disappr%(a) b* t#e HOPE0 (eri$* i$ t#e= a.Gune 466D. dis@&a)i$ied0 winning bidder who8 • documenting the b. 1r%&'ds $%r s&c# "ere e?pressed i' "riti'1 a'd a c%p* $&r'is#ed t% t#e +AC0 a'd b.December 2009 Page #+3 .press the with evidence of grounds for such receipt of a cop9 and furnished a thereof b9 the %AC2 cop9 to the %ACM /n case of disapproval b9 the ?OP: of the %AC)s recommendation8 did the ?OP: give instructions to the %AC on the subseCuent actions to be adoptedM !2 Also look for the document indicating the instructions given b9 the ?OP: on the subseCuent steps to be adopted b9 the %AC2 IN CA6E OF FAI9URE0 REFU6A90 OR INA+I9ITH +H THE >INNING +IDDER TO 6U+MIT DOCUMENT6 AND ENTER INTO CONTRACT .Audit Sub4ob"ective • Audit Criteria FOR THE PROCUREMENT OF -. $%r$eited t#e bid through his fault8 fact4finding to sec&rit* %$ a'd failed8 refused or was establish if the c. FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 (2 >rom the records of Did the %AC -. rec%mme'ded t#e unable toB winning bidder was imp%siti%' %$ sa'cti%'s a2 submit the responsible for his Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .a copy furnished the +AC& Generic Procurement Procedures for "nfrastructure Pro0ects. T% (eri$* i$ t#e +AC= the %ACB disCualif9 the a.3&(&.such disapproval shall be based only on valid.uent actions to be adopted& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer INFRA6TRUCTURE PRO/ECT6 (2 /f the ?OP: /n case of disapproved the disapproval b9 the recommendation for ?OP: of the %AC)s award8 look for the recommendation8 document indicating did the ?OP: the grounds for such e.

t% maAe 1%%d its bid b* e'teri'1 i't% a c%'tract "it# t#e pr%c&ri'1 e'tit*0 %r c.Audit Sub4ob"ective • Audit Criteria t% t#e "i''i'1 bidder "#%0 t#r%&1# #is $a&)t0 $ai)ed0 re$&sed %r "as &'ab)e= a.uired Performance Security within the period stipulated in this "RR or in the +idding .refuses or is unable to submit the documents re..December 2009 Page #+5 .ocuments. p%st t#e re@&ired Per$%rma'ce 6ec&rit* "it#i' t#e peri%d stip&)ated i' t#e Re(ised IRR %$ RA -23 %r i' t#e +iddi'1 D%c&me'ts "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • *6&(& "f the bidder with the Aowest Calculated Responsive +id:>ighest Rated Responsive +id or the bidder with the Single Calculated:Rated Responsive +id.e@cept where such failure.fails.uired under Section .3&( of this "RR or to ma e good its bid by entering into a contract with the procuring entity or post the re.the bid security shall be forfeited and the appropriate sanctions provided in this "RR and e@isting laws shall be imposed.%$ t#e Re(ised IRR %$ RA -230 %r b. t% s&bmit t#e d%c&me'ts re@&ired &'der 6ecti%' 4:.refusal or inability is through no fault of the said bidder& Audit Activities failure8 refusal8 or inabilit9 toB &a' to submit the documents reCuired under Section #32( of the Revised /RR of RA +(5*8 or &b' to make good its bid b9 entering into a contract with the procuring entit98 or &c' post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding DocumentsH documenting the deliberations7evaluat ion conducted and the decisions arrived atH documenting the recommendations made to the ?OP:8 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer documents reCuired under Section #32( of the Revised /RR of RA +(5*M or b2 to make good its bid b9 entering into a contract with the procuring entit9M or c2 post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding DocumentsM Did the %AC forfeit the bid securit9 of the winning bidder who8 through his fault8 failed8 refused or was unable toB a2 submit the documents reCuired under Section #32( of the Revised /RR of RA +(5*M or b2 to make good its bid b9 entering into a contract with the procuring entit9M or c2 post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding DocumentsM Did the %AC recommend the imposition of sanctions to the winning bidder who8 through his fault8 • • look for information on theB • • • disCualification of the said bidder8 forfeiture of the bid securit9 and recommendation of the imposition of sanctions to the winning bidder2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

as amended on September 4.ualification process on the bidder with the NOTE= F%r t#e a&dit %' t#e Post/=ualification for the GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC0 a$ter dis@&a)i$*i'1 t#e "i''i'1 bidder "#%0 d&e t% #is $a&)t0 re$&sed0 $ai)ed0 %r "as &'ab)e t% e'ter i't% c%'tract0 p%st t#e re@&ired per$%rma'ce sec&rit*0 %r s&bmit %t#er re@&ired d%c&me'ts "it#i' t#e time stip&)ated0 i'itiated a'd c%mp)eted t#e p%st.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer failed8 refused or was unable toB a2 submit the documents reCuired under Section #32( of the Revised /RR of RA +(5*M or b2 to make good its bid b9 entering into a contract with the procuring entit9M or c2 post the reCuired Performance Securit9 within the period stipulated in the Revised /RR of RA +(5* or in the %idding DocumentsM Did the %AC8 after disCualif9ing the winning bidder who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated8 initiate and complete the post4Cualification process on the bidder with the second $owest Calculated %idM 2.as provided in this Section.the +AC shall dis.uired under Section .3&( of this "RR or to enter into contract and post the re.466'8 !2 >rom the records of the %AC8 look for information on the disCualification of the winning bidder who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated2 $ook also for information on the conduct of post4 Cualification on the bidder with the second $owest Calculated %id2 • *6&4& "n the case of the failurerefusal or inability of the bidder with the Aowest Calculated Responsive +id to submit the documents re.uired Performance Security.@&a)i$icati%' pr%cess %' t#e bidder "it# t#e sec%'d 9%"est Ca)c&)ated +id "mplementing Rules and Regulations #"RR$ of RA '()*.and shall initiate and complete the post1.ualify the said bidder.December 2009 Page #++ Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines .

T% (eri$* i$ t#e +AC0 a$ter dis@&a)i$*i'1 t#e "i''i'1 bidder "it# t#e Single Calculated +esponsive Bid (SC+B) "#%0 d&e t% #is $a&)t0 re$&sed0 $ai)ed0 %r "as &'ab)e t% e'ter i't% c%'tract0 p%st t#e re@&ired per$%rma'ce sec&rit*0 %r s&bmit %t#er re@&ired d%c&me'ts "it#i' t#e time stip&)ated0 dec)ared t#e biddi'1 a $ai)&re a'd c%'d&cted a re.ualification.as amended on September 4.if no bidder passes post1.and shall declare the bidding a failure and conduct a re1bidding with re1 advertisement and:or postingas provided for in Sections 4( #2 >rom the records of the %AC8 look for information on the disCualification of the winning bidder with the SCR% who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated2 $ook also for information on the declaration of the bidding a failure and the conduct of a re4bidding with re4advertisement2 Did the %AC8 after disCualif9ing the winning bidder with the SCR% who8 due to his fault8 refused8 failed8 or was unable to enter into contract8 post the reCuired performance securit98 or submit other reCuired documents within the time stipulated8 a2 declare the bidding a failureM and b2 conduct a re4 bidding with re4 advertisement and7or postingM NOTE= F%r t#e a&dit %' t#e <ailure of Bidding for the Procurement of *nfrastructure Pro?ects a'd %' t#e Competitive2 Pu lic Bidding for the Procurement of *nfrastructure Pro?ects0 per$%rm t#e a&dit acti(ities pertai'i'1 t% t#ese pr%c&reme't acti(ities i' %t#er parts %$ t#is &uide. Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer 4.December 2009 Page *11 .ualify the said bidder.the procuring entity concerned may enter into a negotiated procurement& Audit Activities Procurement of *nfrastructure Pro?ects c%'d&cted b* t#e +AC0 per$%rm t#e a&dit acti(ities pertai'i'1 t% t#ese pr%c&reme't acti(ities i' a'%t#er part %$ t#is &uide.biddi'1 "it# re.& "n the case of failurerefusal or inability of the bidder with the Single Calculated:Rated Responsive +id to submit the documents re. Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the +AC shall dis.Audit Sub4ob"ective • Audit Criteria second Aowest Calculated +id8&&&&This procedure shall be repeated until the Aowest Calculated Responsive +id:>ighest Rated Responsive +id is determined for award& >owever.the +AC shall declare the bidding a failure and conduct a re1 bidding with re1advertisement& Should there occur another failure of bidding after the conduct of the contractEs re1 bidding.a'd 27 %$ t#e Re(ised IRR %$ RA -23 "mplementing Rules and Regulations #"RR$ of RA '()*.uired under Section . ad(ertiseme't a'd.3&( of this "RR or to enter into contract and post the re.466'8 • *6&.%r p%sti'10 as pr%(ided $%r i' 6ecti%'s 2.as provided in this Section.uired Performance Security.

represe'ti'1 t#e COA0 from the FpoolG8 check t#e d&)* rec%1'iIed pri(ate 1r%&p i' a sect%r %r discip)i'e re)e(a't t% t#e pr%c&reme't at #a'd0 a'd a '%'. t#at #a(e= b.perience or e.at least two #4$ observers.in addition to the representative of the COA.who shall not have the right to vote.December 2009 Page *1( .Audit Sub4ob"ective • Audit Criteria and 47 of this "RR& Should there occur another failure of bidding after the conduct of the contractEs re1bidding.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b.pertise in procurement or in the sub"ect matter of the contract to be bidM -ith no actual or potential conflict of interest in the contract to be bidM Conformed with other relevant criteria determined b9 the %ACM b2 c2 c.& Observers (. T% (eri$* i$ t#e +AC the %AC meeting on the i'(ited Obser(ers= selection of the Observer a.invite. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* d2 "mplementing Rules and Regulations #"RR$ of RA '()*. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b.the +AC shall.the procuring entity concerned may enter into a negotiated procurement& Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer IN8O98EMENT OF THE +AC O+6ER8ER6 (2 >rom the Minutes of -. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB for information on the %AC)s evaluation in regard toB • the selection of the organi.4.&(& To enhance the transparency of the process.2.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand.for e@ample8 i$ 9or infrastructure pro0ectsnational associations of constructors duly e2 f2 !2 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the Did the %AC invite the observers at least # da9s prior to the start of the activit9M Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4.-.perience or e.ation from which the Observer will be invitedH • knowledge8 e.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Did the %AC choose the Observers consideringB a2 one representing the COAM one representing the dul9 recogni.ed private group in a sector or discipline relevant to the procurement at handM one representing a non4government organi.466'8 • Section (. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.ationM with knowledge8 e.in all stages of the procurement process.

&*& The observers shall have the following responsibilities8 a$ To prepare the report either #2 %ased on the %AC)s Minutes on the Post =ualification8 the meetings on the award of contract8 and the report of the Observers check whether a deliberation was made on the comments 7observations of the observers2 Did the Procuring :ntit9 consider the comments7 observations of the ObserversM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .evelopment Authority #C.as amended on September 4.466'8 • (.A$.Audit Sub4ob"ective • Audit Criteria recogni=ed by the Construction "ndustry Authority of the Philippines #C"AP$.&. T% (eri$* i$ t#e Pr%c&ri'1 E'tit* c%'sidered t#e c%mme'ts.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative ."nc&? #4$ %ational Constructors Association of the Philippines.such as.but not limited to the following8 #($ Philippine Constructors Association."nc&? and #.%bser(ati%'s %$ t#e Obser(ers "mplementing Rules and Regulations #"RR$ of RA '()*.and should meet the following criteria8 a$ Hnowledge. provided that the% have een dul% invited in 4riting1 Audit Activities #4da9 minimum reCuirement2 Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer 2.e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.December 2009 Page *1! .& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.$ Philippine "nstitute of Civil /ngineers #P"C/$& ii$ < iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.

e the instances of -. establish the effects and c%mp)ia'ce %' t#e= a.uest.Audit Sub4ob"ective • Audit Criteria 0ointly or separately indicating their observations made on the procurement activities conducted by the +AC for submission to the >ead of the Procuring /ntity. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. then it is understood that the idding activit% conducted % the BAC follo4ed the correct procedure? and c$ To immediately inhibit and notify in writing the procuring entity concerned of any actual or potential interest in the contract to be bid& • (.copy furnished the +AC Chairman& The report shall assess the e@tent of the +ACEs compliance with the provisions of this "RR and areas of improvement in the +ACEs proceedings? b$ To submit their report to the procuring entity and furnish a copy to the GPP+ and Office of the Ombudsman:Resident Ombudsman& *f no report is su mitted % the o server. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.&7& Observers shall be allowed access to the following documents upon their re. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .sub0ect to signing of a confidentiality agreement8 (a) minutes of BAC meetings5 ( ) a stract of Bids5 (c) post/ 6ualification summar% report5 (d) APP and related PP7P5 and (e) opened proposals1 Audit Activities Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9.December 2009 Page *1# .

December 2009 Page *1* . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. etc. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #. provided that the% have een dul% invited in 4riting1 Audit Activities NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Suggested Audit -orking Paper Particulars Audit =uestion Le @o of the s Answer 2. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria c.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.

December 2009 Page *1. FAI9URE OF +IDDING DEC9ARED +H THE +ID6 AND A>ARD6 COMMITTEE (+AC! FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 A2 AAD/T O%E:CT/6:B To verif9 if the conditions7reCuirements8 procedures for the declaration of failure of bidding were adhered to b9 the procuring entit9 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for the evaluationB (2 !2 #2 *2 . . @&a)i$icati%'0 %r e! t#e bidder "it# t#e 9%"est Ca)c&)ated Resp%'si(e +id re$&sed0 "it#%&t C&sti$iab)e ca&se0 t% accept t#e a"ard %$ c%'tract0 a'd Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .2 Documentar9 evidences that no bids were receivedH Documentar9 evidences that all prospective bidders were declared ineligibleH Documentar9 evidences that all bids failed to compl9 with all the bid reCuirementsH Documentar9 evidences that all bids failed post4CualificationH Documentar9 evidences that the bidder with the $owest Calculated Responsive %id refused8 without "ustifiable cause8 to accept the award of contract8 and no award was made in accordance with Section *1 of the RA +(5* and Revised /RRH 02 Minutes of the %AC meetings on post4CualificationH 32 %AC Resolution declaring the bidding a failureH 52 Minutes of the %AC meetings with information on the review and evaluation conducted on theB &a' terms8 &b' conditions8 &c' specifications8 and &d' cost estimates and the recommendations7decisions made J possible revisions7ad"ustmentsH +2 Approved revised %idding DocumentsH (12 Revised Approved %udget for the Contract &A%C'H ((2 Records of the re4biddingH (!2 Cop9 of the Minutes of the %AC meeting on the selection of the Observer from the FpoolGH (#2 Cop9 of reports of the %AC Observers2 Audit Sub4ob"ective • Audit Criteria :ST:D -ORK/@ PAP:R Suggested Audit -orking Paper Audit Activities (2 >rom the 5inutes of %AC meetings and other records8 look for information thatB a' @o bids were receivedH b' All prospective bidders were declared ineligibleH c' all bids failed to compl9 with all the bid reCuirements8 d' all bids failed post4 Cualification8 e' the bidder with the $owest Calculated Responsive %id refused8 without "ustifiable cause8 to accept the award of contract8 and no award was made in accordance with Section *1 of the RA +(5* and Revised /RR2 Audit =uestion Did the %AC declare a failure of bidding for reason thatB a' @o bids were receivedM b' All prospective bidders were declared ineligibleM or c' All bids failed to compl9 with all the bid reCuirementsM or d' all bids failed post4 CualificationM Le s @o Particulars of the Answer -.<II. T% (eri$* i$ t#e +AC dec)ared a $ai)&re %$ biddi'1 $%r reas%' t#at= a! N% bids "ere recei(edB %r b! A)) pr%specti(e bidders "ere dec)ared i'e)i1ib)eB %r c! A)) bids $ai)ed t% c%mp)* "it# a)) t#e bid re@&ireme'ts0 %r d! a)) bids $ai)ed p%st.

in the case of consulting servicesthere is no successful negotiation? or d$ The bidder with the Aowest Calculated Responsive +id:>ighest Rated Responsive +id refuseswithout 0ustifiable cause.the A+C shall be based on the budget levels under the %ational /@penditure Program #%/P$ submitted to Congress& *&.December 2009 Page *10 .and no award is made in accordance with Section *6 of the Act and this "RR& &PPB Circular "(/!""# dated !" 0anuar% !""#.466'8 • . • < *&4& To facilitate the immediate implementation of pro0ects even pending approval of the GAA.ualification.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Audit =uestion or e' the bidder with the $owest Calculated Responsive %id refused8 without "ustifiable cause8 to accept the award of contract8 and no award was made in accordance with Section *1 of the RA +(5* and Revised /RRM Le s @o Particulars of the Answer '% a"ard "as made i' acc%rda'ce "it# 6ecti%' 30 %$ t#e RA -23 a'd Re(ised IRR e! $&'ds are '%t a(ai)ab)e "mplementing Rules and Regulations #"RR$ of RA '()*.uirements or fail post1.to accept the award of contract.the head of the agency shall identify and thereafter notify the implementing units #"Us$ of 2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& 9or specifically appropriated pro0ectsagencies can proceed with the procurement activities prior to issuance of the notice of award using as basis the %/P figures& *&*& 9or lump1sum appropriations and Centrally 5anaged "tems #C5"s$ under the agencyEs budget.7&(& The +AC shall declare the bidding a failure when8 a$ %o bids are received? b$ All prospective bidders are declared ineligible? c$ All bids fail to comply with all the bid re.or.as amended on September 4.

+5 for the said 5JP& *&D& As prescribed under Section *3.+oo 2 of the Administrative Code of (')3.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer the amount allocated for the pro0ects they are to implement& On the basis of said notification.the 5JOA shall be a pre1re.it is re.Chapter ).as procuring entities. T% (eri$* i$ t#e +AC determi'ed t#e reas%' $%r t#e $ai)ed biddi'1 b* c%'d&cti'1 a ma'dat%r* re(ie" a'd e(a)&ati%' %$ t#e = a.+5 Circular Aetter 466*1 6(4 prior to commencement of any procurement activity& Thus. terms0 !2 >rom the minutes of the %AC meetings held for the purpose8 look for information on the review and evaluation conducted on theB &a' terms8 &b' conditions8 &c' specifications8 and &d' cost Did the %AC determine the reason for the failed bidding b9 conducting a mandator9 review and evaluation of theB Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Subtitle +Title ".for which the initial funding F sourced from either the e@isting:current yearEs budget or the %/P F is not sufficient to cover the total cost of the pro0ect.December 2009 Page *13 .can proceed with the procurement activities prior to issuance of the notice of award& *&7& 9or 5ulti1Jear Pro0ects #5JPs$.the heads of the respective "Us.uisite for procurement of a multi1year contract& All procurement activities should be within the total pro0ect cost and categories reflected in the 5JOA issued by .no contract involving the e@penditure of public funds shall be entered into unless the proper accounting official of the procuring entity shall have certified as to the availability of funds and the allotment to which the e@penditure or obligation may be properly charged& 2.uired that a 5ulti1Jear Obligational Authority #5JOA$ must already have been issued in accord with .

December 2009 Page *15 .ad0ust the A+C.7&. speci$icati%'s0 d.the +AC shall conduct a mandatory review and evaluation of the termsconditions.and conduct a re1 bidding with re1advertisement and:or posting.ad(ertiseme't a'd. terms0 b.ocumentsincluding its cost estimates& 4. Appr%(ed +&d1et $%r t#e C%'tract (A+C!B #ad t#em appr%(edB a'd c%'d&cted a re. speci$icati%'s0 d.7&4& "n order to determine the reason for the failed bidding.uired approvals.ocumentsincluding its cost estimates& • .and specifications in the +idding .sub0ect to the re. c%'diti%'s0 c. c%st estimates i' t#e +iddi'1 D%c&me'ts "mplementing Rules and Regulations #"RR$ of RA '()*.biddi'1 "it# re.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities estimates and the recommendations7decision s made J possible revisions7ad"ustments2 Audit =uestion a2 terms in the %idding DocumentsM b2 conditions in the %idding DocumentsM c2 specifications in the %idding DocumentsM d2 cost estimatesM Le s @o Particulars of the Answer b.as provided for #2 >rom the minutes of the %AC meetings held for the purpose and other records of the procuring entit98 look for information on the revisions7ad"ustments made on the &a' terms8 &b' conditions8 &c' specifications8 &d' A%C and approvals made thereon2 Did the %AC and the concerned units7officials of the procuring entit98 revised the following as a result of the review and evaluation conductedB a2 terms in the %idding DocumentsM b2 conditions in the %idding DocumentsM c2 specifications in the %idding DocumentsM d2 cost estimatesM *2 >rom the records of the %AC look for information on the re4bidding conducted2 Did the %AC conduct a re4 biddingM NOTE= F%r t#e a&dit %' t#e re.%$$icia)s %$ t#e pr%c&ri'1 e'tit*0 re(ised t#e $%))%"i'1 as a res&)t %$ t#e re(ie" a'd e(a)&ati%' c%'d&cted= a.466'8 • .and specificationsand if necessary. T% (eri$* i$ t#e +AC a'd t#e c%'cer'ed &'its.and specifications in the +idding .%r p%sti'1 "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • .biddi'1 c%'d&cted per$%rm t#e a&dit &si'1 t#e p%rti%' %$ t#is &uide %' Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .7&4& "n order to determine the reason for the failed bidding.& +ased on its findingsthe +AC shall revise the termsconditions. c%'diti%'s0 c.as amended on September 4.the +AC shall conduct a mandatory review and evaluation of the termsconditions.as amended on September 4.

ation from which the Observer will be invitedH • knowledge8 e.2.-. t#at #a(e= b.7&7& Should there occur a second failure of bidding. at )east 4 ca)e'dar da*s pri%r t% t#e start %$ t#e acti(it* "mplementing Rules and Regulations #"RR$ of RA '()*.in all stages of the Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&( of this "RR& 3.1%(er'me't %r1a'iIati%' (NGO! $r%m t#e pr%c&ri'1 e'tit*Fs P%%) %$ Obser(ersB b. A'%")ed1e0 e?perie'ce %r e?pertise i' pr%c&reme't %r i' t#e s&bCect matter %$ t#e c%'tract t% be bidB b.as amended on September 4.perience or e.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Competitive2Pu lic Bidding for the Procurement of *nfrastructure Pro?ects. '% act&a) %r p%te'tia) c%'$)ict %$ i'terest i' t#e c%'tract t% be bidB a'd b. T% (eri$* i$ t#e +AC i'(ited Obser(ers= a. Audit =uestion Le s @o Particulars of the Answer in Section 4(&4 of this "RR • .as provided for in Section 7.& Observers (.7&*& All bidders who have initially responded to the "nvitation to +id:Re.2 >rom the Minutes of the %AC meeting on the selection of the Observer from the FpoolG8 check for information on the %AC)s evaluation in regard toB • the selection of the organi.466'8 • Section (.pertise in procurement or in the sub"ect matter of the contract to be bidH • no actual or potential conflict of interest in the contract to be bidH and • conformed with other relevant criteria determined b9 the %AC2 Did the %AC choose the Observers consideringB (2 one representing the COAM !2 One representing the specific relevant the dul9 recogni.the procuring entity may resort to negotiated procurement.ed private group in a sector or discipline relevant to the procurement at handM #2 One representing a non4government organi.December 2009 Page *1+ . represe'ti'1 t#e COA0 t#e d&)* rec%1'iIed pri(ate 1r%&p i' a sect%r %r discip)i'e re)e(a't t% t#e pr%c&reme't at #a'd0 a'd a '%'.pertise in procurement or in the sub"ect matter of the contract to be bidM c.4.the +AC shall.&(& To enhance the transparency of the process.uest for /@pression of "nterest and have been declared eligible or short listed in the previous biddings shall be allowed to submit new bids& The +AC shall observe the same process and set the new periods according to the same rules followed during the previous bidding#s$& • .perience or e.ationM *2 -ith knowledge8 e. c%'$%rmed "it# %t#er re)e(a't criteria determi'ed b* t#e +ACB .

e@perience or e@pertise in procurement or in the sub0ect matter of the contract to be bid? b$ Absence of actual or potential conflict of interest in the contract to be bid? and c$ Any other relevant criteria that may be determined by the +AC& (.evelopment Authority #C.to sit in its proceedings where8 a$ At least one #($ shall come from a duly recogni=ed private group in a sector or discipline relevant to the procurement at hand. provided that the% have een dul% invited in 4riting1 02 >rom certified copies of the invitations to the Observers with evidence of receipt8 compare the date of receipt with the #4da9 minimum reCuirement2 Did the %AC invite the observers at least # da9s from the date of the bid evaluationM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .in addition to the representative of the COA.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Audit =uestion .December 2009 Page *(1 ."nc&? and #.& O servers shall e invited at least three (3) calendar da%s efore the date of the procurement stage2activit%1 3he a sence of o servers 4ill not nullif% the BAC proceedings.and should meet the following criteria8 a$ Hnowledge.2 -ith no actual or potential conflict of interest in the contract to be bidM 02 Conformed with other relevant criteria determined b9 the %ACM Le s @o Particulars of the Answer procurement process.$ Philippine "nstitute of Civil /ngineers #P"C/$&< ii$ <& iii$ < and b$ The other observer shall come from a non1government organi=ation #%GO$& (.A$.invite.who shall not have the right to vote.national associations of constructors duly recogni=ed by the Construction "ndustry Authority of the Philippines #C"AP$.&.for e@ample8 i$ $ 9or infrastructure pro0ects.but not limited to the following8 #($ Philippine Constructors Association.such as."nc&? #4$ %ational Constructors Association of the Philippines.&4& The observers shall come from an organi=ation duly registered with the Securities and /@change Commission #S/C$ or the Cooperative .at least two #4$ observers.

Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particulars of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. etc. T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.e the instances of -. establish the effects and c%mp)ia'ce %' t#e= a. provided that the% have een dul% invited in 4riting1 develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.December 2009 Page *(( . (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.

December 2009 Page *(! .Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit =uestion Le s @o Particulars of the Answer 4. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

2 there was prima facie evidence of an9 act which restricted8 suppressed or nullified competition8 or 02 the %AC was found to have failed in following the prescribed bidding procedures8 or 32 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the ph9sical and economic conditions have significantl9 changed so as to render the pro"ect no longer economicall98 financiall98 or technicall9 feasible8 as determined b9 the ?ead of the Procuring :ntit98 or 52 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the pro"ect is no longer necessar9 as determined b9 the ?ead of the Procuring :ntit98 or +2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the source of funds for the pro"ect has been withheld or reduced through no fault of the procuring entit92 Audit Sub4ob"ective • Audit Criteria -. FAI9URE OF +IDDING DEC9ARED +H THE HOPE FOR THE PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 A2 AAD/T O%E:CT/6:B To verif9 if the conditions7reCuirements for the declaration of failure of bidding were adhered to b9 the procuring entit9 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA Documents needed for the evaluationB Documents on the declaration of failure of bidding b9 the ?OP: with supporting documents on the e.-.December 2009 Page *(# .<III. '% $&'ds a(ai)ab)eB b. t#ere is prima $acie e(ide'ce %$ c%))&si%' bet"ee'= b. T% (eri$* i$ t#e HOPE dec)ared a $ai)&re %$ biddi'1 $%r reas%' t#at= a.istence of the grounds used to "ustif9 the said declaration thatB (2 there was prima facie evidence of collusion between appropriate public officers or emplo9ees of the procuring entit98 or !2 there was prima facie evidence of collusion between appropriate public officers or emplo9ees of the procuring entit98 or #2 there was prima facie evidence of collusion between or among the bidders themselves8 *2 there was prima facie evidence of collusion between a bidder and a third part98 or . appr%priate p&b)ic %$$icers %r emp)%*ees %$ t#e pr%c&ri'1 e'tit*0 %r b.2. bet"ee' t#e +AC a'd a'* %$ t#e Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer Did the ?OP: declare a failure of bidding for reason thatB a2 no funds availableM OR b2 there was prima facie evidence of collusion between appropriate public officers or emplo9ees of the :ST:D -ORK/@ PAP:R Audit Activities (2 >rom the documents on the declaration of failure of bidding b9 the ?OP:8 look for information on the reason for such declaration2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

am%'1 t#e bidders t#emse)(es0 %r b.or not award the contract in the following situations8 a$ "f there is prima facie Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . a bidder a'd a t#ird part*0 i'c)&di'1 a'* act "#ic# restricts0 s&ppresses %r '&))i$ies %r te'ds t% restrict0 s&ppress %r '&))i$* c%mpetiti%'B Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer procuring entit9M OR c2 there was prima facie evidence of collusion between the %AC and an9 of the biddersM OR c2 there was prima facie evidence of collusion between or among the bidders themselvesM OR d2 there was prima facie evidence of collusion between a bidder and a third part9M OR e2 there was prima facie evidence of an9 act which restricted8 suppressed or nullified competitionM OR f2 the %AC was found to have failed in following the prescribed bidding proceduresM OR g2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the ph9sical and economic %r c. "mplementing Rules and Regulations #"RR$ of RA '()*.Audit Sub4ob"ective • Audit Criteria bidders0 %r b. t#e +AC is $%&'d t% #a(e $ai)ed i' $%))%"i'1 t#e prescribed biddi'1 pr%ced&resB %r d.3.466'8 • Section *(& The >ead of the Procuring /ntity reserves the right to re0ect any and all bidsdeclare a failure of bidding.4.as amended on September 4.December 2009 Page *(* . t#e a"ard %$ t#e c%'tract "i)) '%t red%&'d t% t#e be'e$it %$ t#e GOP0 $%r C&sti$iab)e a'd reas%'ab)e 1r%&'ds s&c# as= (i! i$ t#e p#*sica) a'd ec%'%mic c%'diti%'s #a(e si1'i$ica't)* c#a'1ed s% as t% re'der t#e pr%Cect '% )%'1er ec%'%mica))*0 $i'a'cia))*0 %r tec#'ica))* $easib)e0 as determi'ed b* t#e Head %$ t#e Pr%c&ri'1 E'tit*B (ii! i$ t#e pr%Cect is '% )%'1er 'ecessar* as determi'ed b* t#e Head %$ t#e Pr%c&ri'1 E'tit*B a'd (iii! i$ t#e s%&rce %$ $&'ds $%r t#e pr%Cect #as bee' "it##e)d %r red&ced t#r%&1# '% $a&)t %$ t#e pr%c&ri'1 e'tit*.

establish the effects and c%mp)ia'ce %' t#e= a.as determined by the >ead of the Procuring /ntity? #ii$ if the pro0ect is no longer necessary as determined by the >ead of the Procuring /ntity? and #iii$ if the source of funds for the pro0ect has been withheld or reduced through no fault of the procuring entity& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer conditions have significantl9 changed so as to render the pro"ect no longer economicall98 financiall98 or technicall9 feasible8 as determined b9 the ?ead of the Procuring :ntit9M OR h2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the pro"ect is no longer necessar9 as determined b9 the ?ead of the Procuring :ntit9M OR i2 the award of the contract will not redound to the benefit of the OP8 for "ustifiable and reasonable grounds such as the source of funds for the pro"ect has been withheld or reduced through no fault of the procuring entit9M E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. .or between the +AC and any of the bidders.December 2009 Page *(.suppresses or nullifies or tends to restrictsuppress or nullify competition? b$ "f the +AC is found to have failed in following the prescribed bidding procedures? or c$ 9or any 0ustifiable and reasonable ground where the award of the contract will not redound to the benefit of the GOP.as follows8 #i$ if the physical and economic conditions have significantly changed so as to render the pro0ect no longer economically. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.financially.or if the collusion is between or among the bidders themselves.Audit Sub4ob"ective • Audit Criteria evidence of collusion between appropriate public officers or employees of the procuring entity. (a)idit* %$ a'* pa*me't t% be made %' t#e basis develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.or technically feasible.e the instances of -.or between a bidder and a third partyincluding any act which restricts.

provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of the s Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.December 2009 Page *(0 .466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.Audit Sub4ob"ective • Audit Criteria %$ t#e c%'tractB c.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #. etc. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.

December 2009 Page *(3 .A9TERNATI8E METHOD6 OF PROCUREMENT FOR INFRA6TRUCTURE PRO/ECT6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

O' t#e Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 AFTER T>O (2! FAI9ED +IDDING6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page *(5 .

PREPARATORH ACTI8ITH= REGI6TRH OF CONTRACTOR6 The Registr9 of Contractors is developed and maintained b9 the Procuring :ntit9 to ensure that it is updated2 A2 AAD/T O%E:CT/6: To determine if the Procuring :ntit9 developed and maintained a Registr9 of Contractors %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA :ST:D -ORK/@ PAP:R Documents needed for evaluationB • Documentation of the S9stem on the Registr9 of contractors maintained b9 the Procuring :ntit9 Audit Sub4ob"ective • Audit Criteria -.' &0' &3' &5' :mergenc9 Cases8 Take4Over of Contracts8 Ad"acent or Contiguous8 Agenc94to4Agenc98 Small 6alue Procurement8 @ O Participation8 Communit9 Participation2 I.Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 AFTER T>O (2! FAI9ED +IDDING6 @egotiated Procurement is a method of procurement of infrastructure pro"ects whereb9 the procuring entit9 directl9 negotiates a contract with a technicall98 legall98 and financiall9 capable contractor2 Cases when negotiated procurement are allowedB &(' Two >ailed %iddings &there has been failure of public bidding for the second time'8 &!' &#' &*' &.as amended on September 4.&(&4&4& All Procuring /ntities shall maintain a registry of contractors as basis for selecting the contractors for negotiations& Audit Activities (2 Obtain a cop9 of the registr9 of contractors maintained b9 the Procuring :ntit92 Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer Did the Procuring :ntit9 maintain a registr9 of contractors as basis for selecting the contractors for negotiationsM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e pr%c&ri'1 e'tit* mai'tai'ed a re1istr* %$ c%'tract%rs as basis $%r se)ecti'1 t#e c%'tract%rs $%r 'e1%tiati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page *(+ .466'8 • 7.

e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.466'8 • Observers shall be invited at least three #. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. provided that the% have een dul% invited in 4riting1 GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9. T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2.c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.Audit Sub4ob"ective • Audit Criteria Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer E8A9UATING AUDIT E8IDENCE6 AUDIT -. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.December 2009 Page *!1 .c%mp)ia'ce %' t#e= a. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. etc.as amended on September 4.

466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particular s of the s Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .Audit Sub4ob"ective • Audit Criteria September (7.December 2009 Page *!( .

ed %idding Documents for /nfrastructure Pro"ectsH !2 %idding Documents for the specific procurement2 Audit Sub4ob"ective • Audit Criteria -.uired approvals& >owever the A+C cannot be increased by more than twenty percent Did the %AC revise and agree on theB a2 minimum technical specificationsM b2 Revised A%CM Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . PREPARATORH ACTI8ITH= +IDDING DOCUMENT6 %idding documents are documents issued b9 the Procuring :ntit9 to provide prospective bidders all the necessar9 information that the9 need to prepare their bids2 A2 AAD/T O%E:CT/6:B To verif9 if after the Procuring :ntit9)s conduct of mandator9 review due to two &!' failed biddings8 the %idding Documents for the specific procurement $%))%"ed t#e sta'dard $%rms a'd ma'&a)s prescribed b9 the overnment Procurement Polic9 %oard & PP%' %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 The procuring entit9)s Customi.7 of this "RR.ad0ust the A+Csub0ect to the re.&(&(& After conduct of the mandatory review of the terms.and cost estimates. T% (eri$* i$ t#e pr%c&ri'1 e'tit* c%'d&cted a ma'dat%r* re(ie" %$ t#e terms0 c%'diti%'s0 speci$icati%'s0 a'd c%st estimates %' t#e basis %$ "#ic# t#e +AC re(ised a'd a1reed %' t#e= a. mi'im&m tec#'ica) speci$icati%'s0 b.Ne1%tiated Pr%c&reme't %$ I'$rastr&ct&re Pr%Cects A$ter T"% (2! Fai)ed +iddi'1s II. adC&sted t#e A+C "mplementing Rules and Regulations #"RR$ of RA '()*.as amended on September 4466'8 Audit Activities (2 >rom the documentation of the earlier two &!' biddings conducted8 look for information on the %AC)s declaration that there have been two &!' failed biddings2 !2 >rom the Tevaluation report with supporting documents and dul9 reviewed b9 the %AC8 minutes of the meetings of the %AC8 and %AC Resolutions8 look for evidences of the conduct of the mandator9 review of the terms8 conditions8 specifications and cost estimates b9 concerned Offices of the Procuring :ntit92 #2 >rom the minutes of the %AC)s meetings and %AC Resolutions8 look for information on the deliberation8 revision and agreement on the minimum technical Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer Did the %AC declare two &!' failed biddingsM Did the Procuring :ntit9 conduct a mandator9 review of the terms8 conditions8 specifications8 and cost estimates after two failed biddingsM • 7.the +AC shall revise and agree on the minimum technical specifications.as prescribed in Section .conditionsspecifications.December 2009 Page *!! .and if necessary.

s$and other standard forms shall be mandatory upon all Procuring /ntities& >oweverwhenever necessary.ocuments #P+.December 2009 Page *!# . E)i1ibi)it* Re@&ireme'tsB (2 /f the procuring entit9 adopted customi.ed %idding Documents are not compliant8 compare the procurement4 Are the %idding Documents7 /nformation completeB l2 Revised Approved %udget for the ContractM m2 ReCuest for Price =uotationM n2 o2 :ligibilit9 ReCuirementsM /nstruction to %idders8 including 4 scope of bidM 4 documents comprising the bidM 4 criteria for eligibilit9M 4 price Cuotations Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . !""#.imum of !1Q of the A%C for the second failed biddingM ON THE +IDDING DOCUMENT6 -.the use of the Generic Procurement 5anuals #GP5s$.ed %idding Documents and the results of the earlier validation of this element showed that these are compliant with the Philippine +idding .to suit the particular needs of the procuring entitymodifications may be madeparticularly for ma0or and speciali=ed procurementsub0ect to the approval of the GPP+& Did the %AC submit the revised minimum technical specifications to the ?OP: for approvalM Did the %AC submit the ad"usted A%C to the ?OP: for approvalM *2 >rom the minutes of the %AC)s meetings and %AC Resolutions8 look for information on the %AC)s evaluation to ensure that the ad"ustment in the A%C was at a ma.as amended on Septem er !. T% (eri$* i$ t#e +iddi'1 D%c&me'ts $%r t#e speci$ic pr%c&reme't i'c)&de t#e i'$%rmati%' a'd are acc%rdi'1 t% t#e $%rms i'dicated i' t#e Customi$ed Bidding Documents approved % the &PPB %r t#e Philippine Bidding Documents for the Procurement of *nfrastructure Pro?ects. 3rd 'dition (Octo er !""#) iss&ed b* t#e GPP+ a'd Section () of the *mplementing +ules and +egulations of +A #(.ed %idding Documents of the procuring entit92 /f the customi. Appr%(ed +&d1et $%r t#e C%'tractB b.Audit Sub4ob"ective • Audit Criteria #46K$ of the A+C for the last failed bidding& Audit Activities specifications and ad"usted A%CH and recommendation to the ?OP: for approval2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer • D&4& Once issued by the GPP+.imum of !1Q of the A%C for the second failed bidding2 Did the %AC ensure that the ad"ustment in the A%C was at a ma. b. Re@&est $%r 6&bmissi%' %$ Price G&%tati%'B c.ocuments for the Procurement of "nfrastructure Pro0ects and Section (3&( of the "mplementing Rules and Regulations of RA '()*8 secure from the %AC Secretariat dul9 certified copies of the %idding Documents for the specific procurement and compare these with the customi.Philippine +idding .

F%rm0 Am%&'t0 a'd 8a)idit* %$ Per$%rma'ce 6ec&rit* a'd >arra't*B -. De)i(er* Time %r C%mp)eti%' 6c#ed&)eB i.December 2009 Page *!* .Dra"i'1s a'd Tec#'ica) 6peci$icati%'sB 1. @&a)i$icati%'0 as "e)) as t#e date0 time a'd p)ace %$ t#e pre. i'c)&di'1= F%))%"i'1 c%mp)eti%' %$ t#e 'e1%tiati%'s0 t#e +AC s#a)) re@&est a)) c%'tract%rs remai'i'1 i' t#e pr%ceedi'1s t% s&bmit %' a speci$ied date0 a best a'd $i'a) %$$er "it# respect t% a)) aspects %$ t#e pr%p%sa)s0 a'd d. P)a's.criteria i' acc%rda'ce "it# t#e Act0 a'd p%st. se)ecti%' %$ t#e s&ccess$&) %$$er %' t#e basis %$ s&c# best a'd $i'a) %$$ers meeti'1 t#e mi'im&m tec#'ica) re@&ireme'ts a'd '%t e?ceedi'1 t#e A+CB e. 6c%pe %$ "%rA0 "#ere app)icab)eB $.2.-.bid c%'$ere'ce ("#ere app)icab)e!0 s&bmissi%' %$ bids a'd %pe'i'1 %$ bidsB d.ocuments for the Procurement of "nfrastructure Pro0ects issued b9 the PP%2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer evaluation methodolog97 criteriaM 4 post4 Cualification methodolog9M 4 date of the pre4 bid conference8 if applicableM 4 time of the pre4 bid conferenceM 4 Place of the pre4bid conferenceM 4 Deadline for submission of price CuotationsM 4 Place of submission of price CuotationsM 4 Date of opening of price CuotationsM 4 Time of opening of price CuotationsM 4 Place of opening of price CuotationsM 4 following completion of the negotiations8 reCuesting all contractors remaining in the proceedings to submit on a specified date8 a best and final offer with respect to all aspects %$ the proposalsM 4 selection of the successful offer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . F%rm %$ C%'tract a'd Audit Activities specific %idding Documents with the Philippine +idding . I'str&cti%' t% +idders0 i'c)&di'1 sc%pe %$ bid0 d%c&me'ts c%mprisi'1 t#e bid0 criteria $%r e)i1ibi)it*0 bid e(a)&ati%' met#%d%)%1*. F%rm %$ +id0 Price F%rm0 a'd +i)) %$ G&a'titiesB #.Audit Sub4ob"ective • Audit Criteria d.

where applicable? f& Plans:.ualification.uired through the alternative methods of procurement.Amount.submission of bid securities may be dispensed with2P 0& 9orm.as well as the date.ceeding the A%CM p2 C2 Scope of workM Plans7Drawings and Technical SpecificationsM Price >orm and %ill of =uantitiesM Completion ScheduleM >orm of Contract and eneral and Special Conditions of ContractM r2 s2 t2 Are the %idding Documents in the reCuired formB a2 b2 c2 d2 ReCuest for Price =uotationM /nstructions to %iddersM Price =uotation Data SheetM eneral Conditions of the ContractM Special Conditions of ContractM Schedule of ReCuirementsM Technical SpecificationsM Price =uotation e2 f2 g2 h2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uirements? d& "nstruction to +iddersincluding scope of biddocuments comprising the bid.criteria for eligibilitybid evaluation methodology:criteria in accordance with the Actand post1.and 2alidity of Performance Security and !arranty? OAlso per Revised /RR of RA +(5*8 Section .time and place of the pre1bid conference #where applicable$.rawings and Technical Specifications? g& 9orm of +id.as amended on September 4466'8 • (3&(& The +idding .submission of bids and opening of bids? e& Scope of wor .*2.December 2009 Page *!.2 Performance and warranty securities.e@cept for Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer on the basis of such best and final offers meeting the minimum technical reCuirements and not e.Price 9ormand +ill of Iuantities? h& Completion Schedule? i& 9orm.*2*2 /@cept for Aimited Source +idding under Section *' of this "RR.' and D4 of this "RRshall be submitted for contracts ac.and 2alidity Period of +id Security? OR:6/S:D %L the Revised /RR of RA +(5*8 item .Audit Sub4ob"ective • Audit Criteria Ge'era) a'd 6pecia) C%'diti%'s %$ C%'tractB "mplementing Rules and Regulations #"RR$ of RA '()*.ocuments shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPP+& a& Approved +udget for the Contract? b& "nvitation to +id? c& /ligibility Re.Amount.as prescribed in Sections . .

&(&*& 9ollowing completion of the negotiations.December 2009 Page *!0 .and 7.&' #small value procurement$.the procuring entity shall re.on a specified date. • < all branches. #U% agencies$2P and & 9orm of Contract and General and Special Conditions of Contract& • 7. (a)idit* %$ t#e and develop appropriate audit Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&4 #emergency cases$./ !""# dated 3" Septem er !""#.state universities and collegeand local government unitsare hereby mandated to use the Philippine +idding .or consultants remaining in the proceedings to submit.&(. T% (eri$* t#e e$$ects %$ Anal9.uirements and should not e@ceed the A+C& &PPB +esolution No1 ".government financial institutions.&(&7& The procuring entity shall select the successful offer on the basis of such best and final offers which should meet the procuring entityEs minimum technical re.ocuments Third /dition for all of their procurement activities& Audit Activities Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer >ormsM E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT -. establish the effects c%mp)ia'ce %' t#e= a.agenciesdepartments.7.uest all suppliers.&(6 #lease of real property$.a best and final offer with respect to all aspects of their proposals& • 7.7.Audit Sub4ob"ective • Audit Criteria Shopping under Section 74 and %egotiated Procurement under Sections 7.bureausoffices and instrumentalities of the Governmentincluding government1 owned and:or controlled corporations.e the instances of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'.contractors.

c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.December 2009 Page *!3 .$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.466'8 • Observers shall be invited at least three #. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.Audit Sub4ob"ective • Audit Criteria pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b. provided that the% have een dul% invited in 4riting1 Audit Activities recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Suggested Audit -orking Paper Audit =uestion Les @o Particulars of the Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. etc. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.as amended on September 4.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4 compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.

uest for Submission of Price Iuotation was posted& Audit =uestion Did the %AC conduct the Pre4 Procurement Conference prior to the posting or issuance of the ReCuest for Submission of Price =uotationM Le s @o Particular s of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . Pr%c&reme't C%'$ere'ce pri%r t% t#e p%sti'1 %r t#e iss&a'ce %$ t#e I'(itati%' %r +e6uest for Su mission of Price =uotation "mplementing Rules and Regulations #"RR$ of RA '()*.466'8 • 46&(& Prior to the Advertisement or the issuance of the "nvitation to +id for each procurement underta en Suggested Audit -orking Paper Audit Activities (2 Secure from the %AC Secretariat a dul9 certified cop9 of the 5inutes of Pre1 Procurement Conference and compare the date the conference was held with the date indicated in the print4out of website pages where the "nvitation or Re. PREPARATORH ACTI8ITH= PRE.PROCUREMENT CONFERENCE The pre4procurement conference is the forum where all officials involved in the procurement meet and discuss all aspects of a specific procurement activit98 which includes the technical specifications8 the Approved %udget for the Contract &A%C'8 the applicabilit9 and appropriateness of the recommended method of procurement and the related milestones8 the bidding documents8 and availabilit9 of the pertinent budget release for the pro"ect2 A2 AAD/T O%E:CT/6:SB (2 To verif9 if the Pre4Procurement Conference was conducted "it#i' t#e re@&ired timeH !2 To verif9 if the participa'ts to the Pre4Procurement Conference were as reCuiredH #2 To verif9 if during the Pre4Procurement Conference the participants8 led b9 the %ids and Awards Committee &%AC'8 performed the reCuired tasks and attained the ob"ectives of the Conference2 %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 cop9 of the approved 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC SecretariatH !2 ReCuest for Submission of Price =uotationH #2 Dul9 certified copies of the documents &Office Orders8 contracts8 Organi.as amended on September 4.December 2009 Page *!5 .Ne1%tiated Pr%c&reme't O$ I'$rastr&ct&re Pr%Cects A$ter T"% (2! Fai)ed +iddi'1s III.ational7>unctional Charts8 etc' which the %AC Secretariat used as bases for identif9ing and notif9ing the participants to the Pre4Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 Audit Sub4ob"ective • Audit Criteria -. T% (eri$* i$ t#e +AC c%'d&cted t#e Pre.

December 2009 Page *!+ . Pr%c&reme't C%'$ere'ce i'c)&ded t#e +AC0 t#e 6ecretariat0 t#e &'it %r %$$icia)s0 i'c)&di'1 c%'s&)ta'ts #ired b* t#e pr%c&ri'1 e'tit*0 "#% prepared t#e +iddi'1 D%c&me'ts a'd t#e dra$t Re@&est $%r 6&bmissi%' %$ Price G&%tati%' "mplementing Rules and Regulations #"RR$ of RA '()*.who prepared the +idding . T% (eri$* i$ t#e participa'ts t% t#e Pre.for each procurement& !2 Secure from the %AC Secretariat dul9 certified copies of the documents &Office Orders8 contracts8 Organi.ational7>unctio nal Charts8 etc' which it used as bases for identif9ing and notif9ing the participants to the Pre4 Procurement Conference8 including dul9 certified copies of the notices issued with evidence of receipt b9 the participants2 #2 >rom the 5inutes of Pre1Procurement Conference look for the names of the members of the %AC8 the members of the Secretariat8 the officials and7or consultants who prepared the %idding Documents and the draft ReCuest for Submission of Price =uotation2 *2 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the scope of the contract8 the A%C8 and contract duration8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed Did the participants led b9 the %AC discuss and confirm theB a2 Description of the scope of the contractM That there was no splittingM Revised A%CM Contract durationM b2 c2 d2 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .through its Secretariat shall call for a Pre1 Procurement Conference& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer 2.Pr%c&reme't C%'$ere'ce t#e participa'ts0 )ed b* t#e +AC0 per$%rmed t#e $%))%"i'1 tasAs a'd attai'ed t#e re)ated %bCecti(es= a. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed t#e descripti%' %$ t#e sc%pe %$ t#e c%'tract0 t#e A+C0 a'd c%'tract d&rati%'B b.the +AC.the Secretariatthe unit or officials.e if the9 led to the confirmation of the description of the scope of the contract8 that there was no splitting8 the A%C8 and the contract duration2 Did the participants to the Pre4Procurement Conference include theB a2 b2 c2 %ACM SecretariatM unit or officials who prepared the %idding Documents and the draft ReCuest for Submission of Price =uotationM consultants hired b9 the procuring entit98 who prepared the %idding Documents and the draft ReCuest for Submission of Price =uotationM d2 4. T% (eri$* i$ d&ri'1 t#e Pre.ocuments and the draft "nvitation to +id.466'8 • 46&(<& The pre1procurement conference shall be attended by the +AC.Audit Sub4ob"ective • Audit Criteria through public bidding.including consultants hired by the procuring entity.as amended on September 4.

c%mp)eti%' %$ t#e detai)ed e'1i'eeri'1 acc%rdi'1 t% t#e prescribed sta'dards i' t#e case %$ i'$rastr&ct&re pr%CectsB c.e if the9 led to the confirmation of the readiness of the procurement at hand as toB a2 availabilit9 of appropriations and programmed budget for the contract8 b2 completeness of the %idding Documents and their adherence to the Philippine %idding Documents &P%Ds'7 customi.-. Reiterated a'd emp#asiIed t#e imp%rta'ce %$ c%'$ide'tia)it* a'd t#e app)icab)e sa'cti%'s a'd pe'a)ties0 as "e)) as a1reed %' meas&res t% e's&re c%mp)ia'ce "it# t#e $%re1%i'1B Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer .Audit Sub4ob"ective • Audit Criteria t#at t#e pr%c&reme't is i' acc%rda'ce "it# t#e pr%Cect pr%c&reme't ma'a1eme't p)a' (PPMP! a'd a''&a) pr%c&reme't p)a' (APP!B c.3. Re(ie"ed0 m%di$ied a'd a1reed %' t#e criteria $%r e)i1ibi)it* scree'i'10 e(a)&ati%'0 a'd p%st. c%'$irmati%' %$ t#e a(ai)abi)it* %$ RO> a'd t#e %"'ers#ip %$ a$$ected pr%perties. Disc&ssed re)e(a't i'$%rmati%' a'd c%'$irmed readi'ess %$ t#e pr%c&reme't at #a'd %' t#e $%))%"i'1= c. @&a)i$icati%'B e.December 2009 Page *#1 . d. c%mp)ete'ess %$ t#e +iddi'1 D%c&me'ts a'd t#eir ad#ere'ce t% re)e(a't 1e'era) pr%c&reme't 1&ide)i'esB c.4.ed %idding Documents8 c2 completion of the detailed engineering according to the Did the participants led b9 the %AC discuss and confirm that the procurement is in accordance with the PPMP and APPM Did the participants led b9 the %AC discuss and confirm that the procurement at hand is read9 as toB a2 availabilit9 of appropriations and programmed budget for the contractM b2 completeness of the %idding DocumentsM c2 adherence of the %idding Documents with the P%Ds7 customi.ed %idding DocumentsM d2 completion of the detailed Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . t#e a(ai)abi)it* %$ appr%priati%'s a'd pr%1rammed b&d1et $%r c%'tractB c. Re(ie"ed a'd ad%pted t#e pr%c&reme't sc#ed&)e0 i'c)&di'1 dead)i'es a'd time$rames0 $%r t#e di$$ere't acti(itiesB $.2 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the review of the PPMP and APP8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.2.e if the9 led to the confirmation of the procurement is in accordance with the PPMP and APP2 02 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of information8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.

ide'ti$ied t#e C&sti$icati%' $%r t#e c#a'1e i' t#e m%de %$ pr%c&reme't $r%m p&b)ic biddi'1 t% Ne1%tiated Pr%c&reme't a'd a1reed %' t#e rec%mme'dati%'s t% t#e HOPE.December 2009 Page *#( .the participantsled by the +AC. C%'$irmed t#at t#ere "as '% sp)itti'1B a'd #.the A+C. as amended on Septem er !. &eneric Procurement 7anual for the Procurement of *nfrastructure Pro?ects #5ay 466D$ published by the GPP+8 • 5ethodology8 >ow is %egotiated Procurement conductedP < The procedures for the conduct of public bidding should be observed& *mplementing +ules and +egulations (*++) of +A #(.shall8 a& Confirm the description and scope of the contract.among other aspects.e if the9 led to the confirmation of the criteria for eligibilit9 screening8 price Cuotation evaluation8 and post4Cualification2 52 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the procurement schedule8 including deadlines and timeframes for the Did the participants led b9 the %AC discuss and confirm the criteria forB a2 b2 :ligibilit9 screeningM Price =uotation evaluationM Post4 CualificationM c2 Did the participants led b9 the %AC discuss and confirm the adoption of the procurement schedule including deadlines and Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .the following8 i$ availability of appropriations and programmed budget for the contract? ii$ completeness of the +idding . • 46&(& < .and the ownership of affected propertiesM Le s @o Particular s of the Answer Did the participants led b9 the %AC discuss and confirm the "ustifications for the change in the mode of procurement from public bidding to @egotiated Procurement and agreed on the recommendations to the ?OP:M 32 >rom the 5inutes of Pre1Procurement Conference look for information on the presentation of the criteria for eligibilit9 screening8 price Cuotation evaluation8 and post4Cualification8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.including. !""#.-.uring the conference.etermine the readiness of the procurement at hand.Audit Sub4ob"ective • Audit Criteria 1.ocuments and their adherence to relevant general procurement guidelines? iii$ completion of the detailed engineering Suggested Audit -orking Paper Audit Activities prescribed standardsH d2 availabilit9 of ROand the ownership of affected properties2 Audit =uestion engineering according to the prescribed standardsM e2 availabilit9 of RO.and contract duration? b& /nsure that the procurement is in accordance with the pro0ect and annual procurement plans? c& .

Audit Sub4ob"ective • Audit Criteria according to the prescribed standards in the case of infrastructure pro0ects? iv$ confirmation of the availability of RO! and the ownership of affected properties& d& Review.and post1 .the Procuring /ntities shall adopt public bidding as the general mode of procurement and shall see to it that the procurement program allows sufficient lead time for such public bidding& Alternative methods shall be resorted to only in the highly e@ceptional cases provided for in this Rule& *)&.e if the9 led to the confirmation of the adoption of the procurement schedule including deadlines and timeframes for the different activities2 +2 >rom the 5inutes of Pre1Procurement Conference look for information on the reiteration and emphasis of the importance of confidentialit9 and the applicable sanctions and penalties8 as well as the agreement on measures to ensure compliance2 Audit =uestion timeframes for the different activitiesM Le s @o Particular s of the Answer Did the participants led b9 the %AC reiterate and emphasi.as a general rule.for the different activities? and f& Reiterate and emphasi=e the importance of confidentiality and the applicable sanctions and penalties.modify and agree on the criteria for eligibility screeningevaluation.as well as agree on measures to ensure compliance with the foregoing& • 3&4& %o procurement shall be underta en unless it is in accordance with the approved APP of the procuring entity& The APP shall bear the approval of the >ead of the Procuring /ntity or second1ran ing official designated by the >ead of the Procuring /ntity to act on his behalf.ualification? e& Review and adopt the procurement scheduleincluding deadlines and timeframes.December 2009 Page *#! .e the importance of confidentialit9 and the applicable sanctions and penalties8 as well as the agreement on measures to ensure complianceM • • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& The method of procurement to be used Suggested Audit -orking Paper Audit Activities different activities8 the no4contact rule8 the deliberation thereon8 and the conclusions reached as a result of the deliberationH and anal9.and must be consistent with its duly approved yearly budget& *)&4& "n accordance with Section (6 of this "RR.

through a Resolution.the +AC.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer • 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller .the A+C shall be based on the budget levels under the %ational /@penditure Program #%/P$ submitted to Congress& *&.specially the necessity of public bidding and the re.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re. • < *&4& To facilitate the immediate implementation of pro0ects even pending approval of the GAA.uantities and amounts.uirements of law and this "RR.Audit Sub4ob"ective • Audit Criteria shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.uirements for the alternative methods of procurement& &PPB Circular "(/!""# dated !" 0anuar% !""#.the head of the agency shall identify and Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .& 9or specifically appropriated pro0ectsagencies can proceed with the procurement activities prior to issuance of the notice of award using as basis the %/P figures& *&*& 9or lump1sum appropriations and Centrally 5anaged "tems #C5"s$ under the agencyEs budget.December 2009 Page *## .

as procuring entities.uired that a 5ulti1Jear Obligational Authority #5JOA$ must already have been issued in accord with .the 5JOA shall be a pre1re.December 2009 Page *#* .Chapter ).Subtitle +Title ".can proceed with the procurement activities prior to issuance of the notice of award& *&7& 9or 5ulti1Jear Pro0ects #5JPs$.+5$ which authori=es an agency to incur obligations for a Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update .uisite for procurement of a multi1year contract& All procurement activities should be within the total pro0ect cost and categories reflected in the 5JOA issued by .for which the initial funding F sourced from either the e@isting:current yearEs budget or the %/P F is not sufficient to cover the total cost of the pro0ect.epartment of +udget and 5anagement #.no contract involving the e@penditure of public funds shall be entered into unless the proper accounting official of the procuring entity shall have certified as to the availability of funds and the allotment to which the e@penditure or obligation may be properly charged& • DefinitionB .Audit Sub4ob"ective • Audit Criteria thereafter notify the implementing units #"Us$ of the amount allocated for the pro0ects they are to implement& On the basis of said notification.it is re.+oo 2 of the Administrative Code of (')3.the heads of the respective "Us.+5 Circular Aetter 466*1 6(4 prior to commencement of any procurement activity& Thus.+P for the said 5JP& *&D& As prescribed under Section *3.&(& Allotment 1 document issued by the .

& General description of the procurement? .&4&D& Source of fund? and .&4&.&4&3& Approved +udget for the Contract& .&.&4&7& Time schedule for each procurement activity? .Audit Sub4ob"ective • Audit Criteria specified amount as contained in a legislated appropriation& The allotment issued may either be trough the Agency +udget 5atri@ #A+5$ which covers the comprehensive release of specifically appropriated items in the agencyEs budget or through the Special Allotment Release Order #SARO$& .the amount corresponding to either the full cost of a single year or multi1year program:pro0ect: activity& 9or multi1year pro0ects.December 2009 Page *#.&4&(& %ame of the procurement program:pro0ect? .& Approved +udget for the Contract #A+C$ F refers to the following8 %Gs including SUCs #referred to in Section 4&($ .&(& 9or specifically appropriated items as reflected in the annual budget of the national government agency.&4& Annual Procurement Plan #APP$ F the re.&. .uisite document that the agency must prepare to reflect the entire procurement activity #i&e&goods.&4&*& Procurement method to be adopted? .for which a 5ulti1Jear Obligational Authority has Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&4&4& Pro0ect management office or end1user unit? .services.civil wor s to be procured$ that it plans to underta e within the calendar year& This document contains the following information8 .

obligates agencies to include in their budget proposal for the ensuring years the amount programmed for the said year#s$& .which upon its enactmentbecomes the General Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page *#0 .& "n the case of GOCCsincluding government financial institutions as well as AGUs.Audit Sub4ob"ective • Audit Criteria been issued.&)& 5ulti1Jear Obligational Authority #5JOA$ F a document issued by the .&'& %ational /@penditure Program #%/P$ F the proposed national budget submitted by the President to Congress in accord with Section 44.the A+C represents the amount of fund transfers which they receive from a national government agency to implement a program:pro0ect:activity& .+5 either for locally funded pro0ects or foreign assisted pro0ects implemented by agencies in order to authori=e the latter to enter into multi1year contracts for the full pro0ect cost& A 5JOA.&.&7& Aump1Sum Appropriations and Centrally 5anagement "tems #C5"s$ F those itme in the budget of agencies for which the "mplementing Units and the specific amounts allocated for each have not been identified in the %ational /@penditure Program #%/P$ or the General Appropriations Act #GAA$& .which contains an annual brea down of the full pro0ect cost.the A+C shall be the amount reflected in the 5ulti1Jear Obligational Authority& GOCCs and AGUs #referred to in Section 4&4$ .&.Article 2"" of the Constitution& The %/P shall be the basis of the general appropriations bill.

December 2009 Page *#3 .e the instances -.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #. T% (eri$* t#e e$$ects %$ of non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. provided that the% have een dul% invited in 4riting1 were taken b9 the auditee in regard to instances of non4 compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 2. etc. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to Appropriate Audit -orking Papers Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . establish the effects c%mp)ia'ce %' t#e= and develop a. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'.Audit Sub4ob"ective • Audit Criteria Appropriations Act #GAA$& Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. (a)idit* %$ t#e appropriate audit pr%c&reme't acti(ities recommendations2 a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e Also determine if appropriate actions res&)ti'1 c%'tractB b.

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.Audit Sub4ob"ective • Audit Criteria Suggested Audit -orking Paper Audit Activities instances of non4 compliance2 Audit =uestion Le s @o Particular s of the Answer NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.December 2009 Page *#5 .466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .

as provided for in Section 7.the +ACPrepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .as amended on September 4.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.December 2009 Page *#+ • • .&( of this "RR& 7.&(& 34o <ailed Biddings1 !here there has been failure of public bidding for the second time as provided in Section . T% (eri$* i$ t#r%&1# a Res%)&ti%' t#e +AC prese'ted t"% (2! $ai)ed biddi'1s as t#e C&sti$icati%' $%r t#e 'e1%tiated pr%c&reme't a'd rec%mme'ded t#e c#a'1e i' t#e m%de %$ pr%c&reme't t% t#e HOPE $%r appr%(a) "mplementing Rules and Regulations #"RR$ of RA '()*. A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB @egotiated Procurement &Two4 >ailed %iddings' was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ APPRO8A9 OF THE A9TERNATI8E METHOD Documents needed for evaluationB (2 cop9 of the approved 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC SecretariatH !2 %AC Resolution recommending negotiated procurement8 dul9 approved b9 the ?OP:H Audit Sub4ob"ective • Audit Criteria -.7 of the Act and this "RR& *)&.Ne1%tiated Pr%c&reme't %$ I'$rastr&ct&re Pr%Cects A$ter T"% (2! Fai)ed +iddi'1s I8.the procuring entity may resort to negotiated procurement.466'8 Suggested Audit -orking Paper Audit Activities (2 >rom the %AC Resolution8 look for information on the %AC)s "ustification8 that is8 two failed biddings and the recommendation for the change in the mode of procurement to the ?OP: for approval2 Audit =uestion Did the %AC through a Resolution present two &!' failed biddings as the "ustification for the negotiated procurement and recommend change in the mode of procurement to the ?OP: for approvalM Le s @o Particular s of the Answer • .7&7& Should there occur a second failure of bidding.

c%mp)ia'ce %' t#e= a.December 2009 Page **1 . rec%mme'ded t#e a)ter'ati(e m%de %$ pr%c&reme't= Ne1%tiated Pr%c&reme't t% t#e HOPE0 a'd b.& The method of procurement to be used shall be as indicated in the Approved Procurement Plan #APP$& "f the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.the +ACthrough a Resolution. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*.e the instances of non4compliance to establish the effects and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c. T% (eri$* i$ t#e +AC= a. t#e HOPE appr%(ed t#e a)ter'ati(e met#%d %$ pr%c&reme't "mplementing Rules and Regulations #"RR$ of RA '()*. T% (eri$* t#e e$$ects %$ i'sta'ces %$ '%'. (a)idit* %$ t#e pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 t#e (a)idit* %$ t#e res&)ti'1 c%'tractB b.466'8 !2 >rom the %AC Resolution recommending @egotiated Procurement as the method of procurement8 look for the approval of the ?OP:2 Did the %AC recommend the alternative mode of procurementB @egotiated Procurement to the ?OP:M Did the ?OP: approve @egotiated Procurement as the method of procurementM • *)&.466'8 • Observers shall be invited at least GATHERED AND COMMUNICATING THE RE6U9T6 OF Anal9.as amended on September 4.as amended on September 4.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/& E8A9UATING AUDIT E8IDENCE6 AUDIT -.Audit Sub4ob"ective • Audit Criteria through a Resolution.shall 0ustify and recommend the change in the mode of procurement to be approved by the >OP/ Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer 2. etc.

T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. provided that the% have een dul% invited in 4riting1 Suggested Audit -orking Paper Audit Activities Audit =uestion Le s @o Particular s of the Answer 2.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.Audit Sub4ob"ective • Audit Criteria three #.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4.December 2009 Page **( . T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7.$ calendar days before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.

December 2009 Page **! .466'8 Did the %AC use the DP-? Registr9 of contractors who have been classified under the t9pe of contract7pro"ect Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update . T% (eri$* i$ t#e +AC the %AC meetings8 T&sed t#e Pr%c&ri'1 evaluation reports E'tit*Fs re1istr* %$ supported with copies of c%'tract%rs (b%'a $ide the Procuring :ntit9)s c%'tract%rs )ice'sed "it# Registr9 of Contractors t#e CIAP "#%se e)i1ibi)it* and7or the DP-? d%c&me'ts are %' $i)e "it# Contractors) Registr98 t#e Pr%c&ri'1 E'tit* look for information on c%'cer'ed! %r t#e the basis of identification of the Departme't %$ P&b)ic contractors to be invited >%rAs a'd Hi1#"a*s for the negotiations and (DP>H! C%'tract%rsF the list of identified Re1istr*0 a'd "#% #a(e contractors based on bee' c)assi$ied &'der t#e the agreed4upon basis2 t*pe %$ c%'tract.as amended on September 4.Ne1%tiated Pr%c&reme't %$ I'$rastr&ct&re Pr%Cects A$ter T"% (2! Fai)ed +iddi'1s 8.pr%Cect "#ere t#e s&bCect c%'tract $a))s as basis $%r se)ecti'1 t#e c%'tract%rs t% be i'(ited $%r t#e 'e1%tiati%'s "mplementing Rules and Regulations #"RR$ of RA '()*. 6E9ECTION OF CONTRACTOR6 AND REGUE6T FOR 6U+MI66ION OF PRICE GUOTATION6 A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB @egotiated Procurement was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ Documents needed for evaluationB (2 %AC Resolution recommending negotiated procurement8 dul9 approved b9 the ?OP:H !2 Minutes of the %AC)s meetings on the selection and invitation of contractorsH #2 $ist of selected contractors to be invitedH *2 Copies of invitation letters2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of s the Answer Did the %AC use the Procuring :ntit9)s registr9 of contractors who have been classified under the t9pe of contract7pro"ect where the sub"ect contract falls8 as one of the bases for selecting the contractors to be invited for the negotiationsM Audit Sub4ob"ective Audit Activities • Audit Criteria (2 >rom the Minutes of -.

T% (eri$* i$ t#e +AC i'(ited a)) c%'tract%rs ide'ti$ied $r%m t#e Re1istr* (ies! a'd %t#er bases ad%pted b* t#e +AC $%r t#e p&rp%se "mplementing Rules and Regulations #"RR$ of RA '()*.&(&4&(& "n the case of infrastructure pro0ects.P!> ContractorsE Registry.Audit Sub4ob"ective • Audit Criteria • 7.December 2009 Page **# .&(&4&(& "n the case of infrastructure pro0ects.ona/ fide contractors licensed 4ith the C*AP 4hose eligi ilit% documents are on file with the procuring entity concerned or the .as amended on September 4.as the case may be.and who have been classified under the t%pe of contract2 pro?ect 4here the su ?ect contract falls are eligi le to e invited for negotiation1 Other contractors not previously deemed eligible may also apply for eligibility& 7.P!> ContractorsE Registry.&(&4& The +AC shall invite and engage in negotiations with a sufficient number of contractors to ensure effective competition& 7.as the case may beand who have been classified under the type of contract:pro0ect where the sub0ect contract falls are Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .466'8 !2 Compare the names of the contractors to whom invitations have been sent b9 the %AC &with evidence of receipt' with the list of selected contractors2 Did the %AC invite and engage in negotiations with a sufficient number of contractorsM • 7.&(&4&4& All Procuring /ntities shall maintain a registry of contractors as basis for selecting the contractors for negotiations& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of s the Answer where the sub"ect contract falls8 as one of the bases for selecting the contractors to be invited for the negotiationsM Did the %AC arrive at a list of contractors to be invited as agreed during the meetings conducted for the purposeM 2.bona fide contractors licensed with the C"AP whose eligibility documents are on file with the procuring entity concerned or the .&(&4& The +AC shall invite and engage in negotiations with a sufficient number of contractors to ensure effective competition& 7.

and at any conspicuous place reserved for this purpose in the premises of the procuring entity for a period of seven #3$ calendar days& 3.if available.&' #small value procurement$ of this "RR in the PhilG/PS website. T% (eri$* i$ t#e +AC p%sted t#e +e6uest for Su mission of Price =uotation c%'ti'&%&s)* at a'* c%'spic&%&s p)ace reser(ed $%r t#e p&rp%se i' t#e premises %$ t#e pr%c&ri'1 e'tit* $%r : ca)e'dar da*s0 as certi$ied b* t#e #ead %$ t#e +AC 02 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 32 Conduct ocular inspection on the first da9 of posting2 Did the %AC post the "nvitation to +idB (2 continuousl9 for seven &3' calendar da9sM !2 at the conspicuous place reserved Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .uest for submission of price .as amended on September 4.466'8 #2 Ahead of an9 procurement8 reCuest the %AC Secretariat for advance information on the first da9 of an9 posting2 *2 On the first da9 of posting access the Phil :PS website8 the website of the procuring entit9 concerned8 if available2 Print the page where the notice was posted &to form part of the audit evidences'2 .uest for Submission of Price Iuotations continuousl9 in theB (2 Phil :PS website for 3 calendar da9s starting on the date of advertisementM !2 website of the procuring entit9 concerned8 if available8 for 3 calendar da9s starting on the date of advertisementM • 7*&4& 9or alternative methods of procurementadvertisement and posting as prescribed in Section 4(&4&( of this "RR may be dispensed with8 Provided.&( #two1 failed biddings$ and 7.uotations for Shopping under Sections 74&(#b$ and %egotiated Procurement under Sections 7. T% (eri$* i$ t#e +AC p%sted t#e +e6uest for Su mission of Price =uotations c%'ti'&%&s)* i' t#e P#i)GEP6 "ebsite a'd t#e "ebsite %$ t#e pr%c&ri'1 e'tit* c%'cer'ed0 i$ a(ai)ab)e0 $%r : ca)e'dar da*s starti'1 %' t#e date %$ p%sti'1 "mplementing Rules and Regulations #"RR$ of RA '()*.That the +AC.through its Secretariat.however.December 2009 Page *** .Audit Sub4ob"ective • Audit Criteria eligible to be invited for negotiation& Other contractors not previously deemed eligible may also apply for eligibility& Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of s the Answer 4.the website of the procuring entity concerned.2 Access the websites at random during the 34da9 period to verif9 the postings2 OR >rom the printouts of the web pages indicating the dates of printing8 obtained from and dul9 certified b9 the %AC Secretariat as true and correct8 compare these dates with the reCuired dates of posting2 Did the %AC post the Re.shall post the invitation or re.

T% (eri$* t#e e$$ects %$ non4compliance to Appropriate Audit -orking Papers i'sta'ces %$ '%'. establish the effects and c%mp)ia'ce %' t#e= develop appropriate a.if available.&' #small value procurement$ of this "RR in the PhilG/PS website. a'd de(e)%p appr%priate a&dit rec%mme'dati%'s "mplementing Rules and Regulations #"RR$ of RA '()*as amended on September 4466'8 • Observers shall be invited at least three #.e the instances of -. regard to instances of non4compliance2 NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& .uotations for Shopping under Sections 74&(#b$ and %egotiated Procurement under Sections 7.That the +AC.however.&( #two1 failed biddings$ and 7.466'8 Audit Activities 52 Repeat the ocular inspections &ma9 be at random' during the 34 da9 period to verif9 the postings2 +2 ReCuest for the certification of the head of the %AC Secretariat2 Suggested Audit -orking Paper Audit =uestion Le @o Particulars of s the Answer for the purpose in the premises of the procuring entit9M #2 as certified b9 the head of the %AC Secretariat of the procuring entit9M • 7*&4& 9or alternative methods of procurementadvertisement and posting as prescribed in Section 4(&4&( of this "RR may be dispensed with8 Provided.December 2009 Page **.through its Secretariat.and at any conspicuous place reserved for this purpose in the premises of the procuring entity for a period of seven #3$ calendar days& E8A9UATING AUDIT E8IDENCE6 GATHERED AND COMMUNICATING THE RE6U9T6 OF AUDIT Anal9. (a)idit* %$ t#e audit recommendations2 pr%c&reme't acti(ities a'd %&tp&ts i'c)&di'1 Also determine if t#e (a)idit* %$ t#e appropriate actions were taken b9 the auditee in res&)ti'1 c%'tractB b. etc. (a)idit* %$ a'* pa*me't t% be made %' t#e basis %$ t#e c%'tractB c.the website of the procuring entity concerned.as amended on September 4.$ calendar days Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .shall post the invitation or re.uest for submission of price .Audit Sub4ob"ective • Audit Criteria 6ecretariat %$ t#e pr%c&ri'1 e'tit* "mplementing Rules and Regulations #"RR$ of RA '()*.

T% c%mm&'icate t#e res&)ts %$ t#e a&dit "it# t#e a&diteeFs Ma'a1eme't • COA Circular %o& 466'166D dated September (7. Competitive2Pu lic Bidding are t% be %bser(ed "it# partic&)ar atte'ti%' 1i(e' t% c%mp)ia'ce b* t#e +AC %$ t#e $%))%"i'1 pr%(isi%'s %$ t#e Re(ised IRR %$ RA -23 d&ri'1 bid e(a)&ati%' &p t% a"ard= • 7.uest all suppliers.contractors.466' re1 Prescribing the Use of the Rules and Regulations on Settlement of Accounts Prepare the appropriate audit7 validation document reflecting the results of the audit7validation and transmit to Management Audit Observation Memorandum &AOM'8 if applicable NOTE6= -. c%mp)ia'ce a'd de(e)%p appr%priate a&dit rec%mme'dati%'s Anal9.e the instances of non4compliances to establish the cause&s' and develop appropriate audit recommendations2 Also determine if appropriate actions were taken b9 the auditee in regard to instances of non4compliance2 Appropriate Audit -orking Papers NOTE= Also refer to the OFFEN6E6 AND PENA9TIE6 portion of this Audit Guide& 4. T% (eri$* t#e ca&ses %$ i'sta'ces %$ '%'. +ased %' t#e $%))%"i'1 re@&ireme't %$ t#e &eneric Procurement 7anual for the Procurement of *nfrastructure Pro?ects #5ay 466D$ published by the GPP+8 o 5ethodology8 >ow is %egotiated Procurement conductedP < The procedures for the conduct of public bidding should be observed& $%r t#e rest %$ t#e pr%c&reme't pr%ced&res &p t% t#e a"ard %$ t#e c%'tract0 t#e Audit &uide on the Procedures. provided that the% have een dul% invited in 4riting1 Audit Activities Suggested Audit -orking Paper Audit =uestion Le @o Particulars of s the Answer 2.December 2009 Page **0 .the procuring entity shall re.Audit Sub4ob"ective • Audit Criteria before the date of the procurement stage:activity& The absence of observers will not nullif% the BAC proceedings.or consultants remaining in the Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&(&*& 9ollowing completion of the negotiations.

#U% agencies$& • • • Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .&(&D& "n all stages of the negotiations.contractor.and 7.guidelines.& Any re.466'8 • 7.&(.a best and final offer with respect to all aspects of their proposals& • 7.&(6 #lease of real property$.contractors.uired through the alternative methods of procurement.or consultants engaging in negotiations with the procuring entity relative to the procurement& 7*&(& Splitting of Government Contracts is not allowed& Splitting of Government Contracts means the division or brea ing up of GOP contracts into smaller .December 2009 Page **3 .ual basis to all other suppliers.&4 emergency cases$.proceedings to submit.&' #small value procurement$.uantities and amounts.shall be submitted for contracts ac.uirements and should not e@ceed the A+C& -23= a'd t% t#e $%))%"i'1 pr%(isi%' %$ t#e Re(ised IRR %$ RA • 7.clarifications.7.as prescribed in Sections . Ot#er re)e(a't criteria "mplementing Rules and Regulations #"RR$ of RA '()*.specially the necessity of public bidding and the re.documents.as amended on September 4.or other information relative to the negotiations that are communicated by the procuring entity to a supplier.uirements.or dividing contract implementation into artificial phases or sub1contracts for the purpose of evading or circumventing the re.uirements for the alternative methods of procurement& 7*&*& /@cept for Aimited Source +idding under Section *' of this "RRsubmission of bid securities may be dispensed with& 7*&7& Performance and warranty securities.or consultant shall be communicated on an e.uirements of law and this "RR.7.observers shall be invited 2.' and D4 of this "RR.&(&.&(&7& The procuring entity shall select the successful offer on the basis of such best and final offers which should meet the procuring entityEs minimum technical re.on a specified date.e@cept for Shopping under Section 74 and %egotiated Procurement under Sections 7.

O' Pr%ced&res= t#e Pr%c&reme't NEGOTIATED PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 EMERGENCH CA6E6 Prepared b9B ---------------------------------------------------------------------------------------------------------Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines GUIDE IN THE AUDIT OF PROCUREMENT First Update .December 2009 Page **5 .

Pr%c&reme't Pr%ced&res= NEGOTIATED PROCUREMENT OF INFRA6TRUCTURE PRO/ECT6 EMERGENCH CA6E6

@egotiated Procurement is a method of procurement of infrastructure pro"ects whereb9 the procuring entit9 directl9 negotiates a contract with a technicall98 legall98 and financiall9 capable contractor in an9 of the following casesB &(' Two >ailed %iddings8 &!' :mergenc9 Cases8 &#' Take4Over of Contracts8 &*' Ad"acent or Contiguous8 &,' Agenc94to4Agenc98 &0' Small 6alue Procurement8 &3' @ O Participation8 &5' Communit9 Participation2

:mergenc9 Cases 4 /n case of imminent danger to life or propert9 during a state of calamit98 or when time is of the essence arising from natural or man4made calamities or other causes where immediate action is necessar9 to prevent damage to or loss of life or propert98 or to restore vital public services8 infrastructure facilities and other public utilities2
I, A2 AAD/T O%E:CT/6:B To verif9 if the adoption of the Alternative MethodB @egotiated Procurement in :mergenc9 Cases was in accordance with the rules and regulations %2 SA%4O%E:CT/6:S8 CR/T:R/A8 6A$/DAT/O@ PROC:DAR:S D SA PAP:R :ST:D -ORK/@ APPRO8A9 OF THE A9TERNATI8E METHOD

Documents needed for evaluationB (2 cop9 of the approved 5inutes of Pre1Procurement Conference dul9 certified b9 the %AC SecretariatH !2 %AC Resolution recommending negotiated procurement8 dul9 approved b9 the ?OP:H Audit Sub4ob"ective • Audit Criteria -, T% (eri$* i$ t#e +AC (a)idated t#e e?iste'ce %$ a' emer1e'c* as $%))%"s= a, immi'e't da'1er t% )i$e %r pr%pert* d&ri'1 a state %$ ca)amit*0 %r b, time is %$ t#e esse'ce arisi'1 $r%m 'at&ra) %r ma'.made ca)amities %r %t#er ca&ses "#ere immediate acti%' is 'ecessar* t% pre(e't dama1e t% %r )%ss %$ )i$e %r pr%pert*0 %r t% rest%re (ita) p&b)ic ser(ices0 i'$rastr&ct&re $aci)ities a'd
Technical Services Office Special Services Sector Commission on Audit Republic of the Philippines

Suggested Audit -orking Paper Audit Activities
(2 >rom the %AC Resolution8 look for information on the %AC)s validation of an emergenc9 as followsB a2 imminent danger to life or propert9 during a state of calamit98 or b2 time is of the essence arising from natural or man4made calamities or other causes where immediate action is necessar9 to prevent damage to

Audit =uestion
Did the %AC validation of an emergenc9 as followsB a2 imminent danger to life or propert9 during a state of calamit9M or b2 time is of the essence arising from natural or man4made calamities or

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Particular s of the Answer

Prepared b9B ---------------------------------------------------------------------------------------------------------GUIDE IN THE AUDIT OF PROCUREMENT First Update - December 2009 Page **+

Audit Sub4ob"ective • Audit Criteria %t#er p&b)ic &ti)ities
"mplementing Rules and Regulations #"RR$ of RA '()*- as amended on September 4- 466'8

Suggested Audit -orking Paper Audit Activities
or loss of life or propert98 or to restore vital public services8 infrastructure facilities and other public utilities

Audit =uestion
other causes where immediate action is necessar9 to prevent damage to or loss of life or propert98 or to restore vital public services8 infrastructure facilities and other public utilitiesM

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Particular s of the Answer