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