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Operationalizing the giving of HONORARIA to BAC, TWG and SECRETARIAT

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Operationalizing the giving of HONORARIA to BAC, TWG and SECRETARIAT

Post by alpha_mike on Tue Sep 22, 2015 1:54 pm

Hi! I'm new here. I was recently appointed as member of the TWG in our BAC. I was surprised that for the almost 15 years of existence of our agency, the BAC, TWG and SECRETARIAT never received even a single peso of honoraria because our administrative office does not know they will pay the honoraria without specific guidelines. So, as a new member of the TWG, I took it upon myself to prepare the necessary guidelines so honoraria may be given to whom it is rightfully due under the law.

As a backgrounder, the employees of the AMLC Secretariat are regular officers of the BSP. All our benefits come from BSP. However, when it comes to operations (including procurement), we are a separate, distinct and independent agency from the BSP. The BSP has its own procurement department, while we do it through BAC.

Anyway, I have already read all the DBM and GPPD guidelines relative to the grant of honoraria. Our problem is in the implementation.

1. All collections from "sources" (bid docs; fees for contractor registry, minutes, and protest; and bid/performance security forfeited) are issued official receipts under our agency's name and are all remitted to the national treasury.

I understand that our agency may treat it as trust receipts exclusively for purposes of honoraria. Our problem is, how do we treat it as trust receipts? Our admin insists that if we issue an O.R. under our agency's name,  it should go to the treasury.

How do we actually put this procedure into actual practice? Should we apply for a different receipt for all "sources"? If yes, in what name should it be under? Also, should we open a different bank account were we can put all theses trust receipts? Under what name? One of my colleagues said we should seek permission to DBM first. Is there really a need for that?

2. Even though we have many items for procurement each year, very few buys bid docs; pays fees for contractor registry, minutes, and protest; and no bid/performance security has been forfeited. So, we are constrained to get the honoraria from savings realized from the current year specific budget of our agency under the GAA.

Our problem is, our admin office uses continuing budgets which were not consumed during our fiscal year. So, if we have a budget of 2M for project X in 2015 and only 1M was used, the remaining 1M will be continued for 2016 to be added to the budget for project X in 2016. In this case, how can we declare "savings"?

Savings is defined as, among others, portions or balances of agencies' budgets free from any obligation or encumbrance which are still available after the completion or final discontinuance or abandonment of the work, activity or purpose for which the appropriation is authorized.

Under the said definition, and with the practice of continuing budget, I see no way how we can ever declare a savings, because all our budget will just be continued to the next year. Is there something wrong with our practice or can we do something about it?

3. Is it all right to just give the honoraria from January to December on the immediately succeeding January (after savings are declared)? Our collections from authorized "sources" are not enough to allow us to give honoraria on a month-by-month basis. I my calculations are correct, we do not even collect 25k from the allowed "sources" for the entire year, so we can only depend on savings.

4. Finally, our payroll is attached to another government agency (BSP) so it is the one who deducts all the taxes, etc. For purposes of taxes on honoraria, who should deduct it? Should we, as members of BAC, TWG and SECRETARIAT pay it independently or should our admin office be the one to deduct it so we will not have to worry about how to pay the taxes on honoraria?

Whoah! I'm new here, yet my first post is very long already. lol Pardon me for this. I just badly need guidance and assistance. Thanks in advance.

New Member
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Male Number of posts : 2
Company/Agency : AMLC Secretariat
Occupation/Designation : LO
Registration date : 2015-09-22

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