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APP and Certificate of Availability of Fund

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APP and Certificate of Availability of Fund

Post by Alpha on Thu Aug 02, 2012 7:37 pm

Good day to all members,

I would like to ask whether we can proceed with the procurement of a certain project "A" (under general services) if appropriation for the purpose is made available through an approved Certificate of Availability of Fund (CAF) having the case that such project "A" is not specifically identified or mentioned in the approved Annual Procurement Plan (APP)?

It is to be mentioned, also, that the approved CAF was from a general account/fund allocation category, in this case "Repairs and Maintenance".

Or do we need to submit a revised APP for approval of our mother office (ours is a field management office) in order for the project to be pursued?

Alpha
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Re: APP and Certificate of Availability of Fund

Post by engrjhez® on Thu Aug 02, 2012 8:40 pm

Alpha wrote:Good day to all members,

I would like to ask whether we can proceed with the procurement of a certain project "A" (under general services) if appropriation for the purpose is made available through an approved Certificate of Availability of Fund (CAF) having the case that such project "A" is not specifically identified or mentioned in the approved Annual Procurement Plan (APP)?

It is to be mentioned, also, that the approved CAF was from a general account/fund allocation category, in this case "Repairs and Maintenance".

Or do we need to submit a revised APP for approval of our mother office (ours is a field management office) in order for the project to be pursued?

The fundamental rule applies:
7.2. No procurement shall be undertaken unless it is in accordance with the approved APP of the procuring entity. The APP shall bear the approval of the Head of the Procuring Entity or second-ranking official designated by the Head of the Procuring Entity to act on his behalf, and must be consistent with its duly approved yearly budget.
Smile
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engrjhez®
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Re: APP and Certificate of Availability of Fund

Post by Alpha on Thu Aug 02, 2012 11:21 pm

Thanks sir engrjhez®.

Additional for clarification na lang po. We submit kasi our APP for approval by the Head Office and of course for budget purpose na din. But we have our own BAC and HOPE per our delegation of authority. Does it mean po ba na once meron na kaming approved yearly budget, ma-rerevised na namin ang aming APP which can be approved by our own HOPE basta in line pa din ang revision sa approved yearly budget? The category of fund release to us where we can get the budget for our now proposed project is in general description, e.g. Repairs and Maintenance - Land Improvement, but we do have several fund allocated for specific identified projects talaga. Can we revised our APP specifying the proposed project considering na fund is already available and the proposed project falls under Repairs and Maintenance category?

Alpha
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Re: APP and Certificate of Availability of Fund

Post by engrjhez® on Fri Aug 03, 2012 9:37 am

Alpha wrote:Thanks sir engrjhez®.

Additional for clarification na lang po. We submit kasi our APP for approval by the Head Office and of course for budget purpose na din. But we have our own BAC and HOPE per our delegation of authority. Does it mean po ba na once meron na kaming approved yearly budget, ma-rerevised na namin ang aming APP which can be approved by our own HOPE basta in line pa din ang revision sa approved yearly budget? The category of fund release to us where we can get the budget for our now proposed project is in general description, e.g. Repairs and Maintenance - Land Improvement, but we do have several fund allocated for specific identified projects talaga. Can we revised our APP specifying the proposed project considering na fund is already available and the proposed project falls under Repairs and Maintenance category?

In your question "Can we revised our APP specifying the proposed project considering na fund is already available and the proposed project falls under Repairs and Maintenance category?": Yes, you can. However, please allow me to express my sad observation.

I cannot grasp the idea that your own budget is not consistent with your needs. First, the budget proposal should have come from your office in the form of the initial PPMP. After the approval of the Budget, you will have to adjust the PPMP to be consistent with the approved budget. The BAC Secretariat will only consolidate all those adjusted PPMPs for APP pupoes. In budgeting however, you will have to follow the prescribed budgeting procedures as to classification (PS, MOOE, CO) and other matters.

Now if the budget was given to you not following the procedure above, there is what we call irregularity. Should you have your own budget without any purpose or breakdown as a basis, your remedy is of course to fill in the details. This is "reversed budgeting" where fixed amounts are allocated without any basis and then we try to change the coverage later, and this is the reason you are entangled with problems.

I hope I have answered the question satisfactorily. Smile

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Re: APP and Certificate of Availability of Fund

Post by Alpha on Fri Aug 03, 2012 10:08 am

Thank you very much for the valuable answer.

I have also the same observation when I became a member of TWG here. Although several projects with individual PPMP are really identified and funded and consolidated into an APP, there is also a fund for Repairs / Maintenance where budget are being charged for repairs / maintenance / general services projects na maliliit (for SVP or Shopping mostly) and nag-come up lang later part of the budget year, a sort of contingency fund.

Alpha
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