7.6. To facilitate the immediate implementation of procurement of Goods, Infrastructure Projects or Consulting Services, even pending approval of the GAA, corporate budget or appropriations ordinance, as the case may be, and notwithstanding Section 7.2 hereof, the Procuring Entity may undertake the procurement activities short of award. NGAs, SUCs, Constitutional Commissions or Offices are encouraged to start their Procurement activities immediately after the National Expenditure Program (NEP) has been submitted by the President to Congress, provided that the HoPE has approved the corresponding indicative APP. This will facilitate the awarding of procurement contracts after the enactment of the GAA, enabling the timely implementation and completion of programs and projects. For a contract with a period not exceeding one (1) year, the ABC shall be based on the amount in the indicative APP as included in the proposed national budget submitted by the President to Congress; for GOCCs, on budget levels as proposed to the governing board; or for LGUs, on budget levels as proposed in the executive budget submitted to the Sanggunian. In the case of multi-year contracts, for which a MYOA or ‘an equivalent document is required, the ABC shall be the amount reflected in the MYOA or equivalent document, No award of contract shall be made until the GAA, corporate budget or appropriations ordinance, as the case may be, has been approved or cenacted.(n) During the conduct of the audit, the BAC submitted copy of the Annual Procurement Plan of the municipality for CY 2016. Review of the plan revealed that only the various office Supplies, materials and medicines were reported while the Program/Activities/Projects (PAPs) in the Annual Investment Plan (AIP), GAD Plan, DRRM Plan and those PAPs to be undertaken by other various departments were not included therein The failure of the BAC to prepare a complete Annual Procurement Plan and to include those PAPs crucial in the discharge of major function/serviees of the LGU to its constituents may expose the management to the risk of inefficient delivery of the basic services and the risk in exceeding the expenditures over the budget. Absence of the approved and complete APP in CY 2016 the audit team believed that the Procurement of various goods and services were not properly planned which resulted in failure of the management to monitor the completion of projects. and delivery of various services, tp ily. + constituents on tie. tanselemopien We recommend thatthe Local Chief Executive require thy Dbpartment Heads to prepare ter Projet Procurement Mapagenent Program (PPMP) ad) BAC Serta) ‘AOM# 2012-012 (2016)Page 5‘The Budget Officer and BAC Secretariat are further enj the APP are linked to the Annual/Supplemental Budget. \changes of the PPMPs and APFshall de undertaken in accordance with Section 7.4 of the Revised IRR of RA 9184, as amended. ied to ensure that May we have your comments on the foregoing audit observations within fifteen (15) days from receipt hereof. / CARLOTA E, SAROMINES ‘Audit Team Leader JOSETTE A. RODRIGUEZ Supervising Auditor Proof receipt of AOM: 7 Signature Date | Municipal Mayor BAC Secretariat Municipal. Budget Officer‘ =100fxe9rzpreon91ZLeS1 necUMONINEL WED 9~B00D FEU sAny Further review of the transaction revealed that the payroll was not duly supported with the following documents as required by COA Circular No, 2012-001 namely: 1. Office Order creating and designating the BAC composition and authorizing the members to collect honoraria, . Minutes of BAC Meetings of the covered procurement Notices of Award Attendance sheet listing names of attendees to the BAC Meeting, We recommend, that the Budget Officer follow strictly the pertinent rules and regulation on the appropriation of funds on the payment of honoraria to personnel who are involved in the procurement as authorized under RA 9184, Payment of honoraria should first be taken from those sources enumerated in Section 3.0 of Budget Circular 2007-3. ‘The Municipal and BAC Chairman are enjoined to submit the lacking documents mentioned in the preceding paragraph which we will evaluate, otherwise failure to submit such will cause the issuance of notice of suspension of the transaction, May we have your comments on the foregoing audit observation within fifteen | (15) calendar days from receipt hereof. af CARLOTA E. SAROMINES, lit Team Leader JO§ Proof of Receipt of AOM: Hon, Democrito M. Diamante Ms. Maria Eda Revaca BAC Chairman