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BAC Honoraria : Funding Source

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BAC Honoraria : Funding Source

Post by neilbeluan on Thu Jun 17, 2010 12:56 pm

Please help us solve this:

If the sale of bid documents from a certain project is deficient to pay the honoraria of the BAC and TWG members, are we not allowed to utilize savings accumulated from the sales of bid documents of the previous and other procurement activities (bidding) to satisfy the needed honoraria on this particular project? Do DBM M.C. 2004-5a and 2007-3 prohibit this action? Isn’t it correct that we can consume 100% of the accumulated sales of bid documents all for honoraria of the BAC and TWG as the guidelines provide, regardless of what particular project the sale is acquired and of what particular project it will be used as an honorarium?
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Re: BAC Honoraria : Funding Source

Post by Niwram on Thu Jun 17, 2010 1:06 pm

Welcome to the Forum neilbeluan

you are correct that all sales of the bidding documents will apply to honoraria and to other expenses occurred during the bidding process. and as provided in the DBM Circulars up to 25% of the total Monthly salary of member of the BAC shall be paid as honoraria.. and all the proceeds from the sales of bid docs that were not use will apply to the next procurement for the payment of honoraria.
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Re: BAC Honoraria : Funding Source

Post by fe a. araya on Sun Jun 20, 2010 5:59 pm

BAC Honoraria is not only taken from the sales of bid docs, etc. but from the agency savings. Sec. 3.1.2 of DBM BC No. 2007-3 dated November 29, 2007 provides that BAC Honoraria may be sourced out from "Savings realized from the current year specific budget of the Agency under the Government Appropriations Act (GAA)" provided all mandatory expenses have been paid.
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Re: BAC Honoraria : Funding Source

Post by engrjhez® on Mon Jun 21, 2010 1:39 pm

neilbeluan wrote:Please help us solve this:

If the sale of bid documents from a certain project is deficient to pay the honoraria of the BAC and TWG members, are we not allowed to utilize savings accumulated from the sales of bid documents of the previous and other procurement activities (bidding) to satisfy the needed honoraria on this particular project? Do DBM M.C. 2004-5a and 2007-3 prohibit this action? Isn’t it correct that we can consume 100% of the accumulated sales of bid documents all for honoraria of the BAC and TWG as the guidelines provide, regardless of what particular project the sale is acquired and of what particular project it will be used as an honorarium?


There is none in the BCs that specifies one-to-one correspondence in the sale of bid docs and honoraria for that purpose. Hence, you simply accumulate the sale of bid docs (which is in trust fund) readily available for the fiscal year. You may use all realized sales regardless of procurement as long as honoraria is paid on successfully completed procurements only (25% annual salary cap limitations apply). At the end of every fiscal year, the remaining balance (if any) is forwarded to the General Fund as part of savings.
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Re: BAC Honoraria : Funding Source

Post by neilbeluan on Mon Jun 21, 2010 2:04 pm

Thank you engrjhez for a clear explanation. We had an arguments on this matter with our Accountant. She believes that the "excess" in sale to be remitted as savings to the general funds applies on every procurement project and not at the end of every fiscal year.
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Re: BAC Honoraria : Funding Source

Post by engrjhez® on Mon Jun 21, 2010 5:32 pm

neilbeluan wrote:Thank you engrjhez for a clear explanation. We had an arguments on this matter with our Accountant. She believes that the "excess" in sale to be remitted as savings to the general funds applies on every procurement project and not at the end of every fiscal year.

No problem. Smile
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Re: BAC Honoraria : Funding Source

Post by accounting on Tue Aug 10, 2010 11:46 am

Can anyone help me solve this query?
what do we mean on the 25% monthly salary limitation in granting honoraria to BAC and secretariat and TWG? is it the 25% monthly salary for one (1) montgh or 25% monthly salary for (1) year, i mean can they claim 25% monthly salary monthly or 25% monthly salary for the whole one (1) year?
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Re: BAC Honoraria : Funding Source

Post by RDV @ GP3i on Tue Aug 10, 2010 12:41 pm

accounting wrote:Can anyone help me solve this query?
what do we mean on the 25% monthly salary limitation in granting honoraria to BAC and secretariat and TWG? is it the 25% monthly salary for one (1) montgh or 25% monthly salary for (1) year, i mean can they claim 25% monthly salary monthly or 25% monthly salary for the whole one (1) year?

The provision of the relevant DBM Circular (Budget Circular 2004-5A), specifically Item 5.4 thereof, provides as follows:

"5.4 The average amount of honoraria per month over one year shall not exceed 25 per cent (25%) of the basic monthly salary. The honoraria, however, shall be paid only upon the successful completion of each procurement.
"

Payment of honoraria, therefore, is contingent upon a successful completion of a procurement of a project. A project is successfully completed if there is an award to a winning bidder. The award is by virtue of a public bidding conducted. If no public bidding and/or award is made in one month, the BAC and support unit will not be entitled to the payment of honoraria. On the other hand, if there were three (3) projects conducted through public bidding and were successfully completed in one month, the BAC and support staff will be entitled to honoraria for each of the 3 projects (or 3 honorarias in one month).

Here comes the limitation, which is: "The average amount of honoraria per month over one year shall not exceed 25% of the basic monthly salary." How do you get the "average amount of honoraria per month over one year"? You add all the honorarias received by a BAC member for one year (including the 3 honorarias received in one month, in my example), and get the average of these. To get the average monthly honoraria, you divide the total honoraria in one year by 12 mos. If your average honoraria does not exceed 25% of the basic monthly salary of the BAC member, then you comply with the limitation. If it exceeds, then a refund will be in order.
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Re: BAC Honoraria : Funding Source

Post by engrjhez® on Tue Aug 10, 2010 9:47 pm

accounting wrote:Can anyone help me solve this query?
what do we mean on the 25% monthly salary limitation in granting honoraria to BAC and secretariat and TWG? is it the 25% monthly salary for one (1) montgh or 25% monthly salary for (1) year, i mean can they claim 25% monthly salary monthly or 25% monthly salary for the whole one (1) year?

You may also want to view a similar topic on honoraria here
.
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Re: BAC Honoraria : Funding Source

Post by accounting on Wed Aug 11, 2010 8:57 am

thank you for that enlightenment, so in summary, in any given year the total honoraria of each BAC member and support unit shall not exceed 25% of his/her salary?
Another query, can a Chief of PPDO or the planning unit be the chairman of the Bids and Awards Committee and Can a job-order personnel be a member of the TWG?
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Re: BAC Honoraria : Funding Source

Post by engrjhez® on Wed Aug 11, 2010 10:38 am

accounting wrote:thank you for that enlightenment, so in summary, in any given year the total honoraria of each BAC member and support unit shall not exceed 25% of his/her salary?
Yes. Not to exceed 25% of basic annual salary, with the grant subject to pertinent provisions of DBM BC 2004-5a.

accounting wrote:Another query, can a Chief of PPDO or the planning unit be the chairman of the Bids and Awards Committee
The requirement for the Chairman is that he/she is at least 3rd ranking (dept head or equivalent).

accounting wrote: and Can a job-order personnel be a member of the TWG?
Yes. Smile


Wow! Just noticed that this is my 1,000th post.

Cheers! cheers
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Re: BAC Honoraria : Funding Source

Post by accounting on Wed Aug 11, 2010 11:26 am

what if the contract of the job order personnel is only 1-3 months?
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Re: BAC Honoraria : Funding Source

Post by RDV @ GP3i on Wed Aug 11, 2010 12:01 pm

engrjhez® wrote:

Wow! Just noticed that this is my 1,000th post.

Cheers! cheers

CONGGGRATULATIONSSSS on your 1000 posts! Amazing! cheers

Five cherries for you, engrjhez: cherry cherry cherry cherry cherry
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Re: BAC Honoraria : Funding Source

Post by engrjhez® on Wed Aug 11, 2010 12:05 pm

accounting wrote:what if the contract of the job order personnel is only 1-3 months?

No problem with that. TWG is only ad hoc and need not to be availed all of the time. Smile
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Re: BAC Honoraria : Funding Source

Post by engrjhez® on Wed Aug 11, 2010 12:07 pm

RDV @ GPPPI wrote:
CONGGGRATULATIONSSSS on your 1000 posts! Amazing! cheers

Five cherries for you, engrjhez: cherry cherry cherry cherry cherry

Thanks RDV!

Hoping you and sunriser be the next. Smile
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Re: BAC Honoraria : Funding Source

Post by sunriser431 on Wed Aug 11, 2010 10:37 pm

accounting wrote:what if the contract of the job order personnel is only 1-3 months?
For similar topic
excerpt from the FAQ of the GPPB.
Can a non-employee of the procuring entity be designated as TWG member?
Yes, this is possible when the technical expertise required to support the procurement is not available in the procuring entity. However, he or she must have no conflict of interest, and the Head of the Procuring Entity must approve his/ her designation
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Re: BAC Honoraria : Funding Source

Post by sunriser431 on Wed Aug 11, 2010 10:42 pm

engrjhez® wrote:
RDV @ GPPPI wrote:
CONGGGRATULATIONSSSS on your 1000 posts! Amazing! cheers

Five cherries for you, engrjhez: cherry cherry cherry cherry cherry

Thanks RDV!

Hoping you and sunriser be the next. Smile

Maybe by the end of the year Laughing . Its a promise. To you engrjhez cheers
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Re: BAC Honoraria : Funding Source

Post by fe a. araya on Thu Aug 12, 2010 11:01 am

Wow, sir engrjez, inggit naman ako. It appears na malayong malayo pa ko sa number of posts mo. I hope I can reach that number. Pero sad to say pasulpot-sulpot lang ako coz of too much paperwork in the Admin and BAC, CONGRATULATIONS, sir engrjhez!
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Re: BAC Honoraria : Funding Source

Post by engrjhez® on Mon Aug 16, 2010 11:11 pm

fe a. araya wrote:Wow, sir engrjhez, inggit naman ako. It appears na malayong malayo pa ko sa number of posts mo. I hope I can reach that number. Pero sad to say pasulpot-sulpot lang ako coz of too much paperwork in the Admin and BAC, CONGRATULATIONS, sir engrjhez!

Thanks.

But if you noticed, medyo mababa na rin turnout ng post ko these past months. unlike last year na medyo "boost" talaga. I am attending less frequent to posts na because of the new BAC Composition in the LGU. I am still on the stage of 'educating' them, hehe Smile.

Anyway, walang imposible. Kaya nyo rin ma-reach yan basta i-target nyo. Hindi ko rin aakalaing magki-click ang forum na ito nung una. Imagine less than 10 registered users. Out of the 10, 3 pa dun ang admin/moderator and 1 procurement trainer (that's RDV). The first 5 post came from them.

My 1st post? No reply pa rin until now (hanapin nyo). haha! Smile
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1000 posts

Post by fe a. araya on Tue Aug 17, 2010 6:50 pm

sir engrjhez, mag research ako and will look for that 1st post. I hope I can make a reply on it.
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Re: BAC Honoraria : Funding Source

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