Guide in the Audit of Procurement

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Guide in the Audit of Procurement

Post by sunriser431 on Thu Feb 11, 2010 9:06 pm

Excerpt from audit guide. (COA Memorandum No. 2010-003 - January 14, 2010)
This Guide in the Audit of Procurement (First update-December 2009) shall be used as a reference material for audit, policy study, and other purposes. For complete information click this link http://www.coa.gov.ph/Whats_New/2010/coamemo/M2010-003.pdf
Happy reading (695 pages in all) bounce
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Re: Guide in the Audit of Procurement

Post by engrjhez® on Thu Feb 11, 2010 10:55 pm

Whew! Finished browsing.

What can I say is that this is real nice and an exhausting but totally admirable effort for the COA to ensure adherence to GPRA. I like the rationale (A. DEVELOPMENT OF THE GUIDE) the best.

Congratulations to COA for a job well done! Very Happy
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Re: Guide in the Audit of Procurement

Post by sunriser431 on Sun Feb 14, 2010 3:36 pm

excerpt from Guide
Shopping for goods
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 222 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers ( or 1 supplier during unforseen contingenies )?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Negotiated procurment for goods
Small value procurement
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 267 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Question. Refence to the underline bold text.
Does it mean this task is now delegated? to the Procurement unit? or is it the BAC the only authorize to conduct the procurement activities? scratch
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Re: Guide in the Audit of Procurement

Post by msm326 on Mon Feb 15, 2010 7:51 am

Good day ...
With these guide and the new Team we have here, we will have so so so many nice comments and observations.....grabe.......(patience .......patience)

msm326 cheers
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Re: Guide in the Audit of Procurement

Post by Guest on Mon Feb 15, 2010 11:31 am

sunriser431 wrote:excerpt from Guide
Shopping for goods
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 222 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers ( or 1 supplier during unforseen contingenies )?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Negotiated procurment for goods
Small value procurement
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 267 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Question. Refence to the underline bold text.
Does it mean this task is now delegated? to the Procurement unit? or is it the BAC the only authorize to conduct the procurement activities? scratch

As the revised IRR of RA 9184 provides that the BAC shall have the function of not only to (j) recommend to the Head of the Procuring Entity the use of Alternative Methods of Procurement as provided for in Rule XVI hereof; but also (k) perform such other related functions as may be necessary.

In short the BAC shall be responsible for all procurement process may it be public bidding or alternative mode of procurement.

However I cannot give my interpretation in behalf of COA regarding the Procurement unit , in my opinion the procuring unit pertains to the BAC.

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Re: Guide in the Audit of Procurement

Post by RDV @ GP3i on Mon Feb 15, 2010 12:37 pm

sunriser431 wrote:excerpt from Guide
Shopping for goods
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 222 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers ( or 1 supplier during unforseen contingenies )?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Negotiated procurment for goods
Small value procurement
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 267 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Question. Refence to the underline bold text.
Does it mean this task is now delegated? to the Procurement unit? or is it the BAC the only authorize to conduct the procurement activities? scratch

Under Item 2.c of GPPB Resolution 09-2009 on the Guidelines for Shopping and Small Value Procurement, "After the decision to resort to Shopping or Small Value Procurement has been made (by the BAC and approved by the HOPE), the conduct thereof may be delegated to the appropriate bureau, committee, or support unit duly authorized by the Bids and Awards Committee."

Based on the foregoing, the "procurement unit" as mentioned in that COA Audit guidelines does not necessarily refer to the BAC, but to any unit duly authorized by it (of by the HOPE) to do the Shopping or Small Value Procurement.
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Re: Guide in the Audit of Procurement

Post by Guest on Mon Feb 15, 2010 1:46 pm

Agree

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Re: Guide in the Audit of Procurement

Post by sunriser431 on Mon Feb 15, 2010 11:21 pm

RDV wrote:
sunriser431 wrote:excerpt from Guide
Shopping for goods
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 222 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers ( or 1 supplier during unforseen contingenies )?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Negotiated procurment for goods
Small value procurement
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 267 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Question. Refence to the underline bold text.
Does it mean this task is now delegated? to the Procurement unit? or is it the BAC the only authorize to conduct the procurement activities? scratch

Under Item 2.c of GPPB Resolution 09-2009 on the Guidelines for Shopping and Small Value Procurement, "After the decision to resort to Shopping or Small Value Procurement has been made (by the BAC and approved by the HOPE), the conduct thereof may be delegated to the appropriate bureau, committee, or support unit duly authorized by the Bids and Awards Committee."

Based on the foregoing, the "procurement unit" as mentioned in that COA Audit guidelines does not necessarily refer to the BAC, but to any unit duly authorized by it (of by the HOPE) to do the Shopping or Small Value Procurement.
sir RDV, for clarification, what is the purpose/rational? (referring to the bold/undeline text). as far as I know the BAC can only create TWG, so we are adding another layer of responsibility to duly assist the BAC.(Under Item 2.c of GPPB Resolution 09-2009)
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Re: Guide in the Audit of Procurement

Post by Mikel on Tue Feb 16, 2010 10:59 am

In my opinion, the subject COA Memo is prescribed for the use (exclusive) of auditors in the performance of their duties and responsibilities. It does not alter or amend existing laws, rules and regulations regarding procurement and its related activities. The procurement unit, whether newly created by the HOPE or already any existing office or the BAC or its secretariat, is only a general reference to any office authorized by law to perform such activities. It would be difficult to specifically indicate the exact term/ name of such office as different agencies have different (names of) offices performing such function. Kumbaga, generic na lang ginamit at hindi branded.
In my opinion, the Memorandum was issued not to add responsibility/ office to assist the BAC, rather, it was issued with the presumption that each PE have already procurement units in place to perform the activities enumerated therein.
Anyway, medyo procedural lang naman siguro yan, what is more important is the substantive aspect of the activities we are auditing.

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Re: Guide in the Audit of Procurement

Post by RDV @ GP3i on Tue Feb 16, 2010 12:50 pm

sunriser431 wrote:
RDV wrote:
sunriser431 wrote:excerpt from Guide
Shopping for goods
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 222 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers ( or 1 supplier during unforseen contingenies )?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Negotiated procurment for goods
Small value procurement
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 267 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Question. Refence to the underline bold text.
Does it mean this task is now delegated? to the Procurement unit? or is it the BAC the only authorize to conduct the procurement activities? scratch

Under Item 2.c of GPPB Resolution 09-2009 on the Guidelines for Shopping and Small Value Procurement, "After the decision to resort to Shopping or Small Value Procurement has been made (by the BAC and approved by the HOPE), the conduct thereof may be delegated to the appropriate bureau, committee, or support unit duly authorized by the Bids and Awards Committee."

Based on the foregoing, the "procurement unit" as mentioned in that COA Audit guidelines does not necessarily refer to the BAC, but to any unit duly authorized by it (of by the HOPE) to do the Shopping or Small Value Procurement.
sir RDV, for clarification, what is the purpose/rational? (referring to the bold/undeline text). as far as I know the BAC can only create TWG, so we are adding another layer of responsibility to duly assist the BAC.(Under Item 2.c of GPPB Resolution 09-2009)

I think the rationale is because the conduct of Shopping or Small Value Procurement itself, since they no longer involve the bidding process, could be done by another unit rather than the BAC. As a matter of fact, the conduct itself of Shopping or SVP is not among the identified functions of the BAC under Sec. 12, although you can argue that it could be subsumed under "other related functions as may be necessary."

It clarifies what was not so clear in the IRR, but was already allowed even before the IRR, that the conduct of Shopping or SVP could already be delegated by the BAC after the mode of procurement has already been recommended by the BAC and approved by the HOPE. It would also free the BAC of any conflict of interest. The BAC could also be accused of always recommending Shopping ans SVP because it is benefited by such mode considering that it does the procurement itself.
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Re: Guide in the Audit of Procurement

Post by Berna on Tue Feb 16, 2010 1:46 pm

Clarification lang po...

After the BAC had recommended the alternative method of procurement, the Shopping or SVP could be done by another unit authorized by the BAC, approved by the HOPE. Do we need some kind of resolution by the BAC to delegate a procurement unit, or does the existence of the GSO meant the GSO is the duly authorized unit to do Shopping or SVP method?

If this is so, why should the abstract of quotation be signed and certified by the BAC? scratch
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Re: Guide in the Audit of Procurement

Post by Berna on Tue Feb 16, 2010 1:56 pm

lol!

There's a comment pala from Mikel... juz read...

Siguro nga po... it doesn't matter who's the procurement unit as long as the required tasks (obtain 3 price quotations, post noa, prepare abstract, etc.) were done by the authorized ones...
Embarassed
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Re: Guide in the Audit of Procurement

Post by sunriser431 on Tue Feb 16, 2010 9:02 pm

RDV wrote:
sunriser431 wrote:
RDV wrote:
sunriser431 wrote:excerpt from Guide
Shopping for goods
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 222 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers ( or 1 supplier during unforseen contingenies )?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Negotiated procurment for goods
Small value procurement
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 267 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Question. Refence to the underline bold text.
Does it mean this task is now delegated? to the Procurement unit? or is it the BAC the only authorize to conduct the procurement activities? scratch

Under Item 2.c of GPPB Resolution 09-2009 on the Guidelines for Shopping and Small Value Procurement, "After the decision to resort to Shopping or Small Value Procurement has been made (by the BAC and approved by the HOPE), the conduct thereof may be delegated to the appropriate bureau, committee, or support unit duly authorized by the Bids and Awards Committee."

Based on the foregoing, the "procurement unit" as mentioned in that COA Audit guidelines does not necessarily refer to the BAC, but to any unit duly authorized by it (of by the HOPE) to do the Shopping or Small Value Procurement.
sir RDV, for clarification, what is the purpose/rational? (referring to the bold/undeline text). as far as I know the BAC can only create TWG, so we are adding another layer of responsibility to duly assist the BAC.(Under Item 2.c of GPPB Resolution 09-2009)

I think the rationale is because the conduct of Shopping or Small Value Procurement itself, since they no longer involve the bidding process, could be done by another unit rather than the BAC. As a matter of fact, the conduct itself of Shopping or SVP is not among the identified functions of the BAC under Sec. 12, although you can argue that it could be subsumed under "other related functions as may be necessary."

It clarifies what was not so clear in the IRR, but was already allowed even before the IRR, that the conduct of Shopping or SVP could already be delegated by the BAC after the mode of procurement has already been recommended by the BAC and approved by the HOPE. It would also free the BAC of any conflict of interest. The BAC could also be accused of always recommending Shopping ans SVP because it is benefited by such mode considering that it does the procurement itself.
well it has been confirmed. bounce
Excerpt from GPM,
Tips: Let’s make doing things easier
On approving authorities for purchases through the Shopping method
Considering the small value of procurement through Shopping, the head of the procuring entity is encouraged to delegate the function of approving such requests to lower level officials, provided the aggregate amount of such procurement transactions still falls within the amount allowed for contingencies in the APP. If the aggregate amount of these transactions exceed the amount provided for in the APP, it could indicate either of two things:
1. the APP does not reflect a realistic percentage of contingent procurements, requiring a more thorough study of past procurement data; or
2. there is a tendency to purchase indiscriminately, possibly to avoid competitive bidding.
In either case, the head of the procuring entity should step in and ensure that proper measures are carried out to correct the situation.
Another alternative would be for the BAC to include in the APP a general recommendation for Shopping as an alternative method to be employed in case of an occurrence of a contingency, so that the approval of the APP by the head of the procuring entity would necessarily cover an approval of such recommendation; provided, of course, that the limits indicated for contingencies are not exceeded.
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Re: Guide in the Audit of Procurement

Post by sunriser431 on Sat Feb 20, 2010 10:54 am

Pritong Kandule wrote:
sunriser431 wrote:excerpt from Guide
Shopping for goods
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 222 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers ( or 1 supplier during unforseen contingenies )?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Negotiated procurment for goods
Small value procurement
11 Price quotations, acceptance of offer and award of contract
a. xxxx
b. xxxx
Audit question (page 267 of the guide)
1. Did the Procurement unit of the procuring entity obtain price quotations from at least 3 bona fide suppliers?
2. Did the Procurement unit of the PE post the NOA in xxxx
3. (a)Did the Procurement unit of the PE prepare an Abstract of Quotations?
(b)Did the Procurement unit of the PE prepare an abstract of quotation after the deadline for the submission of the price quotation?
(c) Did the Procurement unit of the PE determine the lowest quotation?
4. xxxx
Question. Refence to the underline bold text.
Does it mean this task is now delegated? to the Procurement unit? or is it the BAC the only authorize to conduct the procurement activities? scratch

As the revised IRR of RA 9184 provides that the BAC shall have the function of not only to (j) recommend to the Head of the Procuring Entity the use of Alternative Methods of Procurement as provided for in Rule XVI hereof; but also (k) perform such other related functions as may be necessary.

In short the BAC shall be responsible for all procurement process may it be public bidding or alternative mode of procurement.

However I cannot give my interpretation in behalf of COA regarding the Procurement unit, in my opinion the procuring unit pertains to the BAC.
The DBM issued NBC 517 dated December 22, 2008, click this link for details http://www.dbm.gov.ph/issuance/issuance/nbc517/nbc517.pdf
This guidelines provides for the establishment of the Procurement units in government agencies. bounce
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