Case Study: Obigation Request

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Case Study: Obigation Request

Post by engrjhez® on Thu Mar 08, 2012 11:38 pm

I have this multi-part series that you can follow on Legem Advocatus.

Hope the concerned agencies (DBM, COA, GPPB, DILG) also comment on this. Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Fri Mar 09, 2012 9:21 am

The proper procedure is that the Obligation Request should be prepared based on approved Purchase Request, then during the preparation of Purchase Order there will be an adjustments in the Obligation Request and in Registries of Appropriations, the purpose is to earmark the amount of Purchase Request from Available Appropriation Balance.
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Re: Case Study: Obigation Request

Post by engrjhez® on Fri Mar 09, 2012 12:18 pm

Jovinal wrote:The proper procedure is that the Obligation Request should be prepared based on approved Purchase Request, then during the preparation of Purchase Order there will be an adjustments in the Obligation Request and in Registries of Appropriations, the purpose is to earmark the amount of Purchase Request from Available Appropriation Balance.

When will be the most appropriate time to prepare and issue the ObR? After PR, before any procurement? during procurement? after the award? Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Fri Mar 09, 2012 8:37 pm

After the PR,before any procurement.
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Re: Case Study: Obigation Request

Post by engrjhez® on Fri Mar 09, 2012 11:53 pm

Jovinal wrote:After the PR,before any procurement.

What do you place in the box "Payee"? Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Sat Mar 10, 2012 8:20 am

Just the name of Office or Department, then add the name of the awarded supplier during adjustments in the Obligation Request and in Registry of Appropriation after PO preparation , ex. Engineering Office - Bacoor Hardware and Construction Supply.
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Re: Case Study: Obigation Request

Post by Jovinal on Sat Mar 10, 2012 8:41 am


Se. 114 of NGAS Manual Volume I may guide you.
(d) Certification on Allotment and Obligation Slip (ALOBS) - Every PR must be accompanied by an ALOBS showing the certification of the local budget officer and the local accountant, that an appropriation therefore exists; and that the estimated amount of such expenditure has been obligated. The Local Treasurer shall certify as to cash availability in the purchase request.

(e) Approval of Requisitions - Approval of requisitions by the head of office or department concerned who has administrative control of the appropriation against which the proposed expenditure is chargeable is deemed sufficient, except in case of requisition for supplies to be carried in stock which shall be approved by the local chief concerned.
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Re: Case Study: Obigation Request

Post by engrjhez® on Sat Mar 10, 2012 12:22 pm

Jovinal wrote:
Se. 114 of NGAS Manual Volume I may guide you.
(d) Certification on Allotment and Obligation Slip (ALOBS) - Every PR must be accompanied by an ALOBS showing the certification of the local budget officer and the local accountant, that an appropriation therefore exists; and that the estimated amount of such expenditure has been obligated. The Local Treasurer shall certify as to cash availability in the purchase request.

(e) Approval of Requisitions - Approval of requisitions by the head of office or department concerned who has administrative control of the appropriation against which the proposed expenditure is chargeable is deemed sufficient, except in case of requisition for supplies to be carried in stock which shall be approved by the local chief concerned.

Sec.114 is all about Perpetual Inventory Method. You might be referring to Sec.116 which is about Requisition Procedures.

For the meantime, here are my questions:
1. When was the NGAS approved?
2. Is ALOBS (if it still exists) still applicable nowadays?

Smile
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Re: Case Study: Obigation Request

Post by sunriser431 on Sat Mar 10, 2012 7:20 pm

engrjhez® wrote:
For the meantime, here are my questions:
1. When was the NGAS approved?
2. Is ALOBS (if it still exists) still applicable nowadays?
Smile
as per COA NGAS Manual for Local Government Units, effective January 1, 2002. For further verification, follow the LINK . or try another LINK . bounce
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Re: Case Study: Obigation Request

Post by Jovinal on Sun Mar 11, 2012 8:47 am

NGAS was approved in 2002, and ALOBS was modified and renamed to Obligation Request in 2006.
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Re: Case Study: Obigation Request

Post by engrjhez® on Sun Mar 11, 2012 8:11 pm

Jovinal wrote:NGAS was approved in 2002, and ALOBS was modified and renamed to Obligation Request in 2006.

Precisely.

NGAS (for LGUs) was derived from the Local Government Code in consonance with PD 1445. EO 40 was in the same year and its foundation prompted RA 9184 (which came into law January 2003). A more recent law must super cede / repeal where inconsistent.

ALOBS was renamed to OS first before it became ObR:
http://engrjhez.wordpress.com/2012/03/09/case-study-obligation-request-part-2/

From OS, then came the ObR the following year:
http://engrjhez.wordpress.com/2012/03/10/case-study-obligation-request-part-3/

Notice the changes in the functions and delineations? Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Sun Mar 11, 2012 9:41 pm

The rule and purpose of ALOBS, OS, and ObR with regard to PROCUREMENT are the same.
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Re: Case Study: Obigation Request

Post by engrjhez® on Mon Mar 12, 2012 10:31 am

Jovinal wrote:The rule and purpose of ALOBS, OS, and ObR with regard to PROCUREMENT are the same.

There were significant changes as to the purpose and use. I hope you were able to read the Circulars to see how the functions evolved and the change in form blended with the advent of RA 9184.

Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Mon Mar 12, 2012 3:27 pm

What I mean the earmarking of available appropriation and allotment balances in register of appropriation and allotment before the procurement start.
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Re: Case Study: Obigation Request

Post by engrjhez® on Mon Mar 12, 2012 3:53 pm

Jovinal wrote:What I mean the earmarking of available appropriation and allotment balances in register of appropriation and allotment before the procurement start.

Is there a specific rule that requires said earmarking of appropriation and allotment balances PRIOR to commencement of any procurement activity? Will there be a the problem if ObR will be issued after the award before any contract?

Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Mon Mar 12, 2012 10:40 pm

This is the budget process in LGU.
1) Appropriation- this is an authorization, at this stage, the cash to support this appropriation is to be collected pa through the budget year.
2) Allotment - this is issued if there is available cash collected to support payment.

In this situation , if we ignore the earmarking, there is a possibility that your procurement cannot be paid if we just based on ABC or Approved Budget or Appropriation.
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Re: Case Study: Obigation Request

Post by engrjhez® on Mon Mar 12, 2012 10:51 pm

Jovinal wrote:This is the budget process in LGU.
1) Appropriation- this is an authorization, at this stage, the cash to support this appropriation is to be collected pa through the budget year.
2) Allotment - this is issued if there is available cash collected to support payment.

In this situation , if we ignore the earmarking, there is a possibility that your procurement cannot be paid if we just based on ABC or Approved Budget or Appropriation.

I did not said it (ObR) will not be accomplished. What I was pointing out is that ObR need not be issued as early as before any procurement activity. Now, should the procurement process is completed, then it will now be logical to issue the ObR to cover the need to enter contract. I don't see why procurement cannot be paid if there is already a plan supporting its appropriation, and we see to it that all necessary documents are complete by the time a disbursement is requested. Smile
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Re: Case Study: Obigation Request

Post by riddler on Tue Mar 13, 2012 4:16 pm

engrjhez® wrote:
Jovinal wrote:This is the budget process in LGU.
1) Appropriation- this is an authorization, at this stage, the cash to support this appropriation is to be collected pa through the budget year.
2) Allotment - this is issued if there is available cash collected to support payment.

In this situation , if we ignore the earmarking, there is a possibility that your procurement cannot be paid if we just based on ABC or Approved Budget or Appropriation.

I did not said it (ObR) will not be accomplished. What I was pointing out is that ObR need not be issued as early as before any procurement activity. Now, should the procurement process is completed, then it will now be logical to issue the ObR to cover the need to enter contract. I don't see why procurement cannot be paid if there is already a plan supporting its appropriation, and we see to it that all necessary documents are complete by the time a disbursement is requested. Smile


I support your position jhez. OBr should be prepared on or after the release of NTP in order to ascertain the correct amount from the result of Bidding which shall be reflected in the Budget Office. The resultant amount maybe less or equal to the ABC.
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Re: Case Study: Obigation Request

Post by Jovinal on Wed Mar 14, 2012 12:12 am

This is the ruling by COA through the issuance of Manual on NGAS in LGU and this is s practiced by most LGUs.
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Re: Case Study: Obigation Request

Post by engrjhez® on Wed Mar 14, 2012 1:16 am

Jovinal wrote:This is the ruling by COA through the issuance of Manual on NGAS in LGU and this is s practiced by most LGUs.

The law (RA 7160 and PD 1445) should prevail over the Manual (NGAS). The requirement of the law is that the certification (ObR) should be with the requisition (PR) before any disbursement (DV) is made. Practice by many does not make it absolutely correct. Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Wed Mar 14, 2012 11:23 am

What provisions in the RA 7160 and PD 1445 that ObR should be issued after PO preparation ?
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Re: Case Study: Obigation Request

Post by engrjhez® on Wed Mar 14, 2012 1:52 pm

Jovinal wrote:What provisions in the RA 7160 and PD 1445 that ObR should be issued after PO preparation ?

There is none. There is also no provision that will require it before any procurement. What is clear from both is that no disbursement until there is such certification (ObR) issued. The real question is the most appropriate timing of issuance which I suggested after (notice of) award before any contract (or PO). Smile
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Re: Case Study: Obigation Request

Post by Jovinal on Wed Mar 14, 2012 2:37 pm

But Sec. 114 of NGAS Manual Volume require ObR/AlOBs on every PR no PO is mentioned as provided in the the following provisions:

(d) Certification on Allotment and Obligation Slip (ALOBS) - Every PR must be accompanied by an ALOBS showing the certification of the local budget officer and the local accountant, that an appropriation therefore exists; and that the estimated amount of such expenditure has been obligated. The Local Treasurer shall certify as to cash availability in the purchase request.
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Re: Case Study: Obigation Request

Post by engrjhez® on Thu Mar 15, 2012 9:08 am

Jovinal wrote:But Sec. 114 of NGAS Manual Volume require ObR/AlOBs on every PR no PO is mentioned as provided in the the following provisions:

(d) Certification on Allotment and Obligation Slip (ALOBS) - Every PR must be accompanied by an ALOBS showing the certification of the local budget officer and the local accountant, that an appropriation therefore exists; and that the estimated amount of such expenditure has been obligated. The Local Treasurer shall certify as to cash availability in the purchase request.

Yes. But it does not say there "...before any procurement activity...". Upon submissof DV, isn't it right that the PR is attached? so with the ObR? and the rest of the documents? Isn't it that the PR is accompanied by an ObR at that point?

Let me also want to reiterate (correct me if I am wrong) that the section above is NOT Sec.114 but Sec.116. Smile
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