Republic of the Philippines

((3:)
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City

MEMORANDUM No. 20I009

MAR 1 8
Date 2016

TO Assistant Commissioners, Directors, Supervising Auditors, Audit Team

Leaders, Technical Audit Personnel, and All Others Concerned

SUBJECT : Updated Guide in the Audit of Procurement (Second Update —

December 2014) with Focus on Infrastructure Project implementation

I. RATIONALE

The continuous issuance of Resolutions by the Government Procurement Policy Board

(GPPB) to amend/enhance the Implementing Rules and Regulations (IRR) of Republic Act
9184 (RA 9184) necessitates the updating of the Guide in the Audit of Procurement (First
Update — December 2009), adopted under COA Memorandum No. 2010-003 dated January
14, 2010, for more responsive audit actions.

II. COVERAGE

The Updated Guide in the Audit of Procurement (GAP) shall be used as a reference
material in the evaluation of compliance with the requirements of applicable laws, rules and
regulations; review of the procurement planning/necessity of the project, procurement
processes, and implementation of infrastructure projects.

The updated GAP covers the following:

1. Elements of Procurement; a. Procurement Planning

a.1 Annual Procurement Plan (APP)
a.2 Necessity of the project
b. Bids and Awards Committee (BAC)
c. BAC Observers
d. BAC Secretariat
e. BAC Technical Working Group (TWG)
f. Bidding Documents
f.1 Information and Forms
f.2 Adequacy and soundness of the detailed engineering
f.3 Reasonableness of the Approved Budget for the Contract (ABC)
2. Procurement Processes;
3. Offenses and Penalties;
4. Ethical Standards;
5. Infrastructure Contract/Project Implementation; 5.1 Cost Control
5.2 Quality Control
5.3 Time Control
5.4 Subcontracting
5.5 Contract CompletidnlWarranty
5.6 Transparency Requirements

A Handy Guide on the Audit of Procurement, a concise version of GAP, is included as

reference for planners and implementers of audits (compliance, regularity and technical) of
the procurement of goods and works, and the contract implementation phase of infrastructure
projects.

III. EFFECTIVITY

This Memorandum shall take effect immediately.

L
MIC EL G. AGUINALDO
Chairman

comoissiom ON AUOt
, OFFICE OF THII, CHAtIMERSON

1 II II
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