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Authority to draw cash advance

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Re: Authority to draw cash advance

Post by venom.0420 on Mon Mar 30, 2009 10:11 pm

RDV wrote:

If "catering services" could be considered as "readily available off-the-shelf goods", and with all the other conditions present, then Shopping under Sec. 52(a) may be possible.
However, since catering services is not a tangible good, as the intent of the provision is procurement of a tangible good, the more appropriate term to be used maybe is procurement of "foodstuffs".

Thank you sir RDV. Will meals and snacks be alright? These are the terms we usually indicate in our PR. I hope you don't mind sir, I would like to clarify another thing. Isn't "readily available off-the-shelf goods" is the phrase used in the second case where shopping may apply and "purchase of goods" is the phrase used in the first case? Is there any difference between the two phrases at all? Question
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Re: Authority to draw cash advance

Post by RDV @ GP3i on Tue Mar 31, 2009 10:38 am

venom.0420 wrote:
RDV wrote:

If "catering services" could be considered as "readily available off-the-shelf goods", and with all the other conditions present, then Shopping under Sec. 52(a) may be possible.
However, since catering services is not a tangible good, as the intent of the provision is procurement of a tangible good, the more appropriate term to be used maybe is procurement of "foodstuffs".

Thank you sir RDV. Will meals and snacks be alright? These are the terms we usually indicate in our PR. I hope you don't mind sir, I would like to clarify another thing. Isn't "readily available off-the-shelf goods" is the phrase used in the second case where shopping may apply and "purchase of goods" is the phrase used in the first case? Is there any difference between the two phrases at all? Question

Meals and snacks, I think, is alright.

The first case (Sec. 52(a)) refers to "readily available off-the-self goods" which refers to tangible goods.

The second case (Sec. 52(b)) refers to "ordinary or regular office supplies" and equipment, which was subsequently defined in GPPB Resolution 12-2006 dated 14 June 2006.

Both refers to the purchase or "procurement of goods." Both excludes services.
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Re: Authority to draw cash advance

Post by engrjhez® on Tue Mar 31, 2009 11:27 am

RDV wrote:
Meals and snacks, I think, is alright.

The first case (Sec. 52(a)) refers to "readily available off-the-self goods" which refers to tangible goods.

The second case (Sec. 52(b)) refers to "ordinary or regular office supplies" and equipment, which was subsequently defined in GPPB Resolution 12-2006 dated 14 June 2006.

Both refers to the purchase or "procurement of goods." Both excludes services.
Next logical question is, will there be harm if "meals and snacks" were not recognized as "readily available off-the-shelf goods" (and used Negotiated Purchase Sec.53.h)?

The reason may all depend, we think, to the type of meals and snacks being delivered.

Ex. Tuna Sandwich + Pasta + Iced Tea.

The first two "cannot" be readily of-the-shelf as we all know these are made only after confirmed orders only. No establishment would keep it as readily available (even some fast food chains would not dare). The iced tea is in a special case. It can and it can't be at the same time. "Kitchen recipied" meals do not make them readily available. On the other hand, there are branded bottled iced tea that can be fit in to the definition of "shopping". In the end we simply settled to a more conservative Section 53.h than a debateable 52.a. Very Happy


Last edited by engrjhez on Tue Mar 31, 2009 12:06 pm; edited 1 time in total
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Re: Authority to draw cash advance

Post by RDV @ GP3i on Tue Mar 31, 2009 11:57 am

engrjhez wrote:
RDV wrote:
Meals and snacks, I think, is alright.

The first case (Sec. 52(a)) refers to "readily available off-the-self goods" which refers to tangible goods.

The second case (Sec. 52(b)) refers to "ordinary or regular office supplies" and equipment, which was subsequently defined in GPPB Resolution 12-2006 dated 14 June 2006.

Both refers to the purchase or "procurement of goods." Both excludes services.
Next logical question is, will there be harm if "meals and snacks" were not recognized as "readily available off-the-shelf goods" (and used Negoriated Purchase Sec.53.h)?

The reason may all depend, we think, to the type of meals and snacks being delivered.

Ex. Tuna Sandwich + Pasta + Iced Tea.

The first two "cannot" be readily of-the-shelf as we al know these are made only after confirmed orders only. No establishment would keep it as readily available (even some fast food chains would not dare). The iced tea is in a special case. It can and it can't be at the same time. "Kitchen recipied" meals do not make them readily available. On the other hand, there are branded bottled iced tea that can be fit in to the definition of "shopping". In the end we simply settled to a more conservative Section 53.h than a debateable 52.a. Very Happy

I think you all know the answers to the question. If the goods are not "readily available off-the-shelf", then go to negotiated procurement (Sec 53.h). What seems to be the problem? This is the end of my reply is this post.
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Re: Authority to draw cash advance

Post by engrjhez® on Tue Mar 31, 2009 12:17 pm

RDV wrote:I think you all know the answers to the question. If the goods are not "readily available off-the-shelf", then go to negotiated procurement (Sec 53.h). What seems to be the problem? This is the end of my reply is this post.
The question I previously posed is a self-sustaining reminder. I raised it to emphasize that, although the law speaks of the applicability, we seemed to always want to extend definitions beyond what is expressly allowed. This notes further, that although MEALS and SNACKS may be allowed to fall under "shopping", certain conditions as elaborated in this topic shall still apply.

From Davao to Manila in 11hours... Very Happy
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Re: Authority to draw cash advance

Post by mbdr on Tue Mar 31, 2009 12:42 pm

Good morning Sir RDV and to all !


I was absent (from the office) for a number of days but at home, I monitored your responses and posts. thank you so much sir RDV.... and to other contributors! More power and god bless us all! I

mbdr bounce

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Re: Authority to draw cash advance

Post by emma on Wed Apr 15, 2009 1:53 pm

Hi, am new here but I want to share our practice with regards to procurements which would entail the need to request for cash advance. The end-user files the request for procurement either of services or goods, the BAC will decide on the applicable mode of procurement either by "Shopping" or "AMP-Limited Source Bidding". After the quotations or offers have been evaluated, BAC thru a resolution recommends approval of award to the HOPE. Then the end-user implements the procurement and if the supplier would only accept "COD", only then does the end-user request the HOPE for release of cash advance in the exact amount of the approved offer. BAC no longer has a say on the request for cash advance since this is not within the scope of its functions as this involves implementation. Our office also have policies on the grant of cash advances so that this could only be approved if the amount does not exceed the limits. My emphasis is that BAC has no say on the issue of cash advance. Once the end-user liquidates the amount of the cash advance, our Accounting will require the submission of documents showing that the procurement was undertaken in accordance with IRR of R.A. 9184.
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Re: Authority to draw cash advance

Post by RDV @ GP3i on Wed Apr 15, 2009 2:19 pm

emma wrote:Hi, am new here but I want to share our practice with regards to procurements which would entail the need to request for cash advance. The end-user files the request for procurement either of services or goods, the BAC will decide on the applicable mode of procurement either by "Shopping" or "AMP-Limited Source Bidding". After the quotations or offers have been evaluated, BAC thru a resolution recommends approval of award to the HOPE. Then the end-user implements the procurement and if the supplier would only accept "COD", only then does the end-user request the HOPE for release of cash advance in the exact amount of the approved offer. BAC no longer has a say on the request for cash advance since this is not within the scope of its functions as this involves implementation. Our office also have policies on the grant of cash advances so that this could only be approved if the amount does not exceed the limits. My emphasis is that BAC has no say on the issue of cash advance. Once the end-user liquidates the amount of the cash advance, our Accounting will require the submission of documents showing that the procurement was undertaken in accordance with IRR of R.A. 9184.

Welcome to the Forum, emma.

Thank you also for sharing the practice being done by your Office. I think it is a good practice, both in terms of the requirements of RA 9184 and its IRR-A, as well as the accounting requirements.

Sharing of Good Practices is very much welcome in the Forum. We can all learn from each other. Very Happy
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Re: Authority to draw cash advance

Post by jcolas on Sun Jul 05, 2009 12:18 am

Sirs;
I chanced upon the querry of mbdr with regards Cash advances. I also deduced that all of you are from the Local Govt. Units. I would like to inform you that I am from a national Government Agency but the treatment for C/A is the same for LGU and NGA, The First Querry is whether you have to get a resolution from the BAC for the approval of a C/A. My answer is the BAC can not pass a resolution on C/A as it is the sole prerogative of the HOPE to approve or not to approve the C/A. One thing more, C/A are drawn for a very specific purpose. It is understood then that planning was conducted before an application for C/A is submitted to the HOPE for approval, and in the planning, canvassed should have been undertaken so tnat you can come up with a very reliable Cash Advance. I hope I have clarified the matter and I suggest that you talk with your auditors on the matter and not the BAC as the BAC has nothing to do with the approval/disapproval of a Cash Advance.
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Re: Authority to draw cash advance

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