DAVAO PRISON AND PENAL FARM

AUDIT PROGRAM
FOR THE PERIOD JANUARY 1, 2018 to DECEMBER 31, 2018

Audit Area PROCUMENT OF GOODS AND INFRASTRUCTURE

PROJECTS

Risk Statement Procurement objectives of competition, economy, efficiency,

transparency, and accountability may not be achieved due to
non-compliance with procedural and ethical standards
provided by laws, rules and regulations.
Audit Objectives 1. To verify that only items crucial and necessary are
included in the PPMPs and APPs
2. To verify and ascertain the soundness and adequacy of
detailed engineering for the infrastructure project with regard
to the conduct of all detailed engineering activities and the
preparation of bid documents as required by law.
3. To verify that specifications for the procurement of goods
and infrastructure are based on relevant characteristics
and/or performance requirements and no reference to brand
names have been allowed.
4. To verify whether the Approved Budget for the Contract
(ABC) is reasonable and whether it has been prepared in
accordance with existing laws and PE guidelines.
5. To ascertain whether all stages of the procurement
process are compliant with R.A. 9184.

Audit Procedures WP Ref. Man-days

1. 1.1 Review the following documents:
- PE's mandate, mission and its approved
budget
- PPMP and APP;
- project feasibility studies;
- preliminary and detailed engineering reports
or documents specifying the technical
requirements for the goods or infrastructure
project to be procured; and
- other relevant project documents
2. Determine if the items or projects proposed to
be procured are crucial and necessary to the
attainment of the PE's mandate, mission and
the sustainment of its operations, in accordance
with Section 7.1 of the IRR of RA 9184 and
COA Circular No. 2012-003, dated October 29,
2012,Updated Guidelines on the Prevention
and Disallowance of Irregular, Unnecessary,
Excessive, Extravagant and Unconscionable
Expenditures

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 DAVAO PRISON AND PENAL FARM
AUDIT PROGRAM
FOR THE PERIOD JANUARY 1, 2018 to DECEMBER 31, 2018
3. Review detailed engineering documents to
determine that they comply with standards
established by the PE, and Annex “A” of the
IRR of RA 9184.

4. Review specifications for the goods or works to

be procured and ascertain that they comply
with Section 18 of the IRR of RA 9184.

5. Review the ABC and determine if it is

reasonable, in accordance with the provisions
and standards in Annex “A” Detailed
Engineering for the Procurement of
Infrastructure Projects of the IRR of RA 9184,
and established or accepted procedures for
preparation of the ABC compatible with the
principles and procedures of RA 9184 and its
IRR, such as DPWH Department Order No. 72,
Amendment to D.O. 29, Series of 2011 Re:
Revised Guidelines in the Preparation of the
Approved Budget for the Contract (ABC).

6. Request the PE for documentation of its

procedures and controls to see to it that in all
stages of the preparation of the Bidding
Documents, equal access to information is
ensured, if any, in accordance with Section 19
of the IRR of RA 9184, and determine whether
these are implemented.
7. Verify that the posting of the Invitation to Bid as
required under Section 21.2.1 of the IRR of RA
9184 has been complied with
8. From the BAC Secretariat, obtain a copy of the
policy on the mechanism for
identifying/selecting the group (professional
organizations; non-governmental organizations)
from which Observers were invited for specific
procurements.
9. Obtain and evaluate documents from the BAC
Secretariat evidencing implementation of the
policy (e.g. relevant Minutes of the BAC's
meetings, documentation of the pool of relevant
professional organizations and non-
governmental organizations, invitation letters).
Take note of discrepancies or cases of non-
compliance, if any.
10. Request the PE for a document outlining
mandatory safeguards and controls for
ensuring equal access to information as

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 DAVAO PRISON AND PENAL FARM
AUDIT PROGRAM
FOR THE PERIOD JANUARY 1, 2018 to DECEMBER 31, 2018
required under Section 19 - Access to
Information of the IRR of RA 9184, if any.
11. Verify if the bid security is of the prescribed
form, amount and validity period in accordance
with Section 27 of the IRR of RA 9184.
12. Verify the legal identity of all bidders who have
responded. (NOTE; The legal existence of
losing bidders may also be confirmed after
award of the contract through their
acknowledged receipt of registered mail
containing the notices by the BAC of the
decision to award the contract to the successful
bidder. Notification of all losing bidders is
required under Section 37.1.2. of the IRR of RA
9184. Please refer to Audit Procedure No. 19.1.
)
13. Observe the stages on Submission and Receipt
of Bids, and Bid Evaluation, and/or review the
Minutes of the Bid Opening to determine
compliance with the requirements under Rule
VIII (Sections 23 to 29) and Rule IX (Sections
30 to 33) of the IRR of RA 9184. 15.2
Take note of discrepancies or cases of non-
compliance, if any.
14. Observe the Bid Evaluation process and/or
analyze the TWG report, as reviewed by the
BAC, Minutes of the BAC meeting on bid
evaluation, Abstract of Bids as Calculated, and
Resolution of the BAC declaring the LCB, in
regard to disqualified bidders whose bids are
higher than the ABC and verify compliance with
Section 31.1 of the IRR of RA 9184. 16.2 Take
note of discrepancies or cases of non-
compliance, if any.
15. Observe the Post-Qualification process and/or
review the:

- BAC Resolution declaring the bidder with

the LCB
- Minutes of the BAC meetings on post-
qualification
- Other ancillary reports on the Post-
Qualification conducted.
16. Observe all stages of the procurement process
and/or verify from the Minutes of BAC meetings
and other records to determine the reasons for
declaration of a failure of bidding.
17. Validate the reasons of the BAC and the HOPE
for declaring a failure of bidding and determine

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 DAVAO PRISON AND PENAL FARM
AUDIT PROGRAM
FOR THE PERIOD JANUARY 1, 2018 to DECEMBER 31, 2018
whether these are in accordance with Sections
35 and 41 of the IRR of RA 9184.
18. Determine the number of days from the date of
receipt by the HOPE of the recommendation for
award to the date of approval and compare with
the 7-day or 15-day period (for GOCCs/GFIs )
required under Sections
19. Verify from the record of receipt of the BAC the
actual date of posting of the performance
security and determine compliance with Section
37.2.1 of the IRR of RA 9184.
20. Determine compliance of the amount, currency,
form, issuing agency and validity period of the
performance security with the requirements of
Section 39 of the IRR of RA 9184.
21. From the notices to the losing bidders, look for
the date of its receipt and compare with the 7-
day or 15-day requirement.
22. Access the PhilGEPS website and the website
of the procuring entity, and conduct inspection
of the area where the Notice of Award is to be
posted on the 3rd day from the issuance of the
Notice of Award to the winning bidder.
23. Access the PhilGEPS website and the website
of the procuring entity where the Notice to
Proceed and the approved contract is to be
posted on the 15th calendar day after the
issuance of the NTP.
24. . Take note of instances of non-compliance, if
any.

Prepared by: Reviewed by:

ALTHEA GRACE A. ALVAREZ ROSELYN L. SALUDARES

Audit Team Member Audit Team Leader

Approved by:

JOCELYN Y. ABAD
OIC-Regional Supervising Auditor

Date:

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 DAVAO PRISON AND PENAL FARM
AUDIT PROGRAM
FOR THE PERIOD JANUARY 1, 2018 to DECEMBER 31, 2018