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BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

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BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by Dong S on Thu May 05, 2011 5:25 pm

DBM BC 2007-3 provides for which sources only should the honorarium of all personnel involved in procument activities.
If the budget for honorarium of BAC/TWG/Secretariat was embedded in the Annual Budget approved by the Sangunian instead, would it still be legal to grant the same?
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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by engrjhez® on Thu May 05, 2011 5:58 pm

rsongahid wrote:DBM BC 2007-3 provides for which sources only should the honorarium of all personnel involved in procument activities.
If the budget for honorarium of BAC/TWG/Secretariat was embedded in the Annual Budget approved by the Sangunian instead, would it still be legal to grant the same?

Nope. Under BC 2007-03, only savings realized may be used to augment the honoraria of BAC et.al. hence it should not be reflected in the Annual Budget. Smile
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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by Dong S on Fri May 06, 2011 10:01 am

Wether the issuances of DBM relative to granting of honoraria for personnel involved in gov't procurement supercede the principle of "extra compensation for extra work" as indicated in COA circular 85-25- e and other laws and regulations applicable? Incentive given to personnel who've given additional task (procuremetn related) is jeopardized because of DBM circular nos 2004-5a & 2007-3 sounds irrelevant, huh?

THE very first line of Section 15 of revised IRR speaks for granting of honoraria subject to availability of funds.

Along that line, I opine that should the source of honorarium be sourced out from the Annual Budget "approved by the Sanguanian" is not at all inconsistent with the principle of granting honoraria for "extra work" nor a violation of any Law for that matter. BAC as it is "tagged' as such, it's the ADDITIONAL task (procuremetn related) and the responsibility that counts far beyond "nomenclature".

this mAY be inconsistent with DBM Circulars but not a violation of any law enacted for granting honoraria!
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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by engrjhez® on Fri May 06, 2011 2:55 pm

rsongahid wrote:Wether the issuances of DBM relative to granting of honoraria for personnel involved in gov't procurement supercede the principle of "extra compensation for extra work" as indicated in COA circular 85-25- e and other laws and regulations applicable? Incentive given to personnel who've given additional task (procuremetn related) is jeopardized because of DBM circular nos 2004-5a & 2007-3 sounds irrelevant, huh?

THE very first line of Section 15 of revised IRR speaks for granting of honoraria subject to availability of funds.

Along that line, I opine that should the source of honorarium be sourced out from the Annual Budget "approved by the Sanguanian" is not at all inconsistent with the principle of granting honoraria for "extra work" nor a violation of any Law for that matter. BAC as it is "tagged' as such, it's the ADDITIONAL task (procuremetn related) and the responsibility that counts far beyond "nomenclature".

this mAY be inconsistent with DBM Circulars but not a violation of any law enacted for granting honoraria!

In that case, you are not anymore asking but calling the issue for a debate:
rsongahid wrote:DBM BC 2007-3 provides for which sources only should the honorarium of all personnel involved in procument activities.
If the budget for honorarium of BAC/TWG/Secretariat was embedded in the Annual Budget approved by the Sangunian instead, would it still be legal to grant the same?

Please be reminded however, that the intent rather than the letters, define the spirit of the law. If we read carefully on the entire Sec.15 of the IRR:
The procuring entity may grant payment of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. For this purpose, the DBM shall promulgate the necessary guidelines. The procuring entity may also grant payment of honoraria to the BAC Secretariat and the TWG members, subject to the relevant rules of the DBM.

>First, honoraria is NOT mandatory.

>Second, honoraria is subject to availability of funds.

>Third, grant of honoraria (if and when funds are available) is subject to DBM guidelines.


Hence, grant of honoraria doesn't end in the availability of funds. The law covers and considers DBM guidelines as part of the enforcement of the law itself. In fact, even the sourcing, collection and use of funds are well defined in the DBM Circular as referred to by R.A. 9184. Smile

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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by Dong S on Fri May 06, 2011 4:29 pm

First, it's not my intention, whatever, to undersiege ones ego. Second, your right in saying i'm not asking anymore, coz i'm not! It's just some sort of conveying my thoughts vis a vis this "forum" which i'm hopeful enough that someone somewhere could unselfishly share brilliant ideas that may be helpful both to us and to all of the avid fans of this forum.

Two things. One, is on granting of BAC honoraria at the discretion of the HOPE as impliedly stipulated in Section 15 of IRR which is subject to the guidelines issued by DBM. Two, is on extra compensation granted to individuals for the performance of tasks beyond THEIR regular duties.

List of sources of BAC honoraria is clearly delineated in DBM Circulars 2004-5, 2004-5A and 2007-3. While extra compensation granted to individuals for the performance of tasks other than his regular functions is also backed up with existing COA Circular.

DBM Circulars cover only the granting of honoraria to personnel involve in "procurement related activities" while the other encompasses the granting of "honoraria" to all individuals who've given extra work.

"BAC", though named as such is still within the scope of COA circulars and other circulars, as applicable, is eligible to recieve extra compensation (honoraria) as they are performing other function outside from their regular tasks. Ergo, honorarium derived from that of the Annual Budget of the LGU is now become good source of extra compensation for the "BAC".

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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by RDV @ GP3i on Sat May 07, 2011 7:51 am

rsongahid wrote:First, it's not my intention, whatever, to undersiege ones ego. Second, your right in saying i'm not asking anymore, coz i'm not! It's just some sort of conveying my thoughts vis a vis this "forum" which i'm hopeful enough that someone somewhere could unselfishly share brilliant ideas that may be helpful both to us and to all of the avid fans of this forum.

Two things. One, is on granting of BAC honoraria at the discretion of the HOPE as impliedly stipulated in Section 15 of IRR which is subject to the guidelines issued by DBM. Two, is on extra compensation granted to individuals for the performance of tasks beyond THEIR regular duties.

List of sources of BAC honoraria is clearly delineated in DBM Circulars 2004-5, 2004-5A and 2007-3. While extra compensation granted to individuals for the performance of tasks other than his regular functions is also backed up with existing COA Circular.

DBM Circulars cover only the granting of honoraria to personnel involve in "procurement related activities" while the other encompasses the granting of "honoraria" to all individuals who've given extra work.

"BAC", though named as such is still within the scope of COA circulars and other circulars, as applicable, is eligible to recieve extra compensation (honoraria) as they are performing other function outside from their regular tasks. Ergo, honorarium derived from that of the Annual Budget of the LGU is now become good source of extra compensation for the "BAC".


rsongahid:

Under Sec. 15 of R.A. 9184, (a) the grant of honorara to BAC members and TWG is not mandatory as the word "may" is used; (b) it is subject to availability of funds; (c) it is subject to limitation (not exceeding 25% of the salary); and (d) the DBM was granted by the law to issue the guidelines.

The DBM has issued already the guidelines, which are Budget Circular No. 2004-5, superseded by B.C. 2004-5a, and B.C. No. 2007-3. In those Budget Circulars the DBM identified the sources of funds, such as the proceeds of sale of bid documents and copies of minutes of BAC meetings, bid security forfeiture and protest fees. In B.C 2007-3 savings, as pointed out by engrjhez, was added as additional funding source. Definitely, budgeting honoraria in the Annual/Supplemental Budget is not among them.

Considering that it is DBM which is granted by the law to issue the guidelines you have to respect the issuances made by the DBM in accordance with law. COA is exercising its auditing functions with those guidelines in mind.
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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by Dong S on Mon May 09, 2011 9:50 am

Thanks RDV!

There's no doubt as to the limited enumeration of sources of BAC honoraria per DBM Circulars issued. But what I'm trying to emphasize is .......wether the BAC is eligible to receive honoraria on the basis of COA circular 85-25, as they OBVIOUSLY are doing tasks aside from their main functions nothwithstanding their involvement in procurement activities?

I understand the issue is kinda out of procurement purview but i'm so much interested in your generousity and brilliance on the matter in the name of public service.
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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by engrjhez® on Tue May 10, 2011 8:36 am

rsongahid wrote:...
There's no doubt as to the limited enumeration of sources of BAC honoraria per DBM Circulars issued. But what I'm trying to emphasize is .......wether the BAC is eligible to receive honoraria on the basis of COA circular 85-25, as they OBVIOUSLY are doing tasks aside from their main functions nothwithstanding their involvement in procurement activities?
...

Good day!

I have not read in particular COA Circular 85-25 (please provide us a link if theres any) but I believe we can preclude that:

1. RA 9184 speaks of the grant of honoraria for BAC, BAC Secretariat and TWG;

2. Being a recent law with specific provisions on grant of honoraria, the guidelines thereof applies in lieu of COA Circular 85-25;

3. The grant of honoraria is not measured merely by tasks but of every "...successfully completed procurement activities.." as guided by DBM BC-2004-5a.

The older COA Circular, I think, applies only for those (legal) tasks not specifically covered by any law that may be justifiably be remunerated or be paid honoraria in return. Smile
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Re: BAC HONORARIUM EMBEDDED IN THE ANNUAL BUDGET

Post by Dong S on Tue May 10, 2011 5:51 pm

Tnx engrjhez!
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