Latest topics

Financial Statement

View previous topic View next topic Go down

Financial Statement

Post by Berna on Wed Sep 01, 2010 2:43 pm

Is there a conflict when the accountant who reviewed the Financial Statement of the bidder is the Municipal Accountant of the Procuring Entity?

Is this a ground for disqualification of the bidder?


Last edited by Bernadette G. Driza on Wed Sep 01, 2010 2:46 pm; edited 1 time in total (Reason for editing : kulang)
avatar
Berna
Active Poster
Active Poster

Female Number of posts : 115
Age : 40
Company/Agency : Calintaan Munti
Occupation/Designation : Clerk, BAC Sec
Registration date : 2010-02-02

http://ompassessor.com.ph

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Wed Sep 01, 2010 3:14 pm

Bernadette G. Driza wrote:Is there a conflict when the accountant who reviewed the Financial Statement of the bidder is the Municipal Accountant of the Procuring Entity?

Is this a ground for disqualification of the bidder?
may I be clarified, you mean member of the TWG? Actually no prohibition, what was prohibited is membership in the BAC.
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by Berna on Wed Sep 01, 2010 3:23 pm

sunriser431 wrote:
Bernadette G. Driza wrote:Is there a conflict when the accountant who reviewed the Financial Statement of the bidder is the Municipal Accountant of the Procuring Entity?

Is this a ground for disqualification of the bidder?
may I be clarified, you mean member of the TWG? Actually no prohibition, what was prohibited is membership in the BAC.
[quote]

Actually, not a member of the BAC nor the TWG...juz municipal accountant. we just noticed kase that the accountant of the bidder is accountant of the procuring entity.
avatar
Berna
Active Poster
Active Poster

Female Number of posts : 115
Age : 40
Company/Agency : Calintaan Munti
Occupation/Designation : Clerk, BAC Sec
Registration date : 2010-02-02

http://ompassessor.com.ph

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Wed Sep 01, 2010 3:29 pm

[quote="Bernadette G. Driza"]
sunriser431 wrote:
Bernadette G. Driza wrote:Is there a conflict when the accountant who reviewed the Financial Statement of the bidder is the Municipal Accountant of the Procuring Entity?

Is this a ground for disqualification of the bidder?
may I be clarified, you mean member of the TWG? Actually no prohibition, what was prohibited is membership in the BAC.


Actually, not a member of the BAC nor the TWG...juz municipal accountant. we just noticed kase that the accountant of the bidder is accountant of the procuring entity.
okay thanks for the additional information, anyway try to browse this LINK
Hope it might help. bounce
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by Berna on Wed Sep 01, 2010 3:59 pm

Thank you very much po...
avatar
Berna
Active Poster
Active Poster

Female Number of posts : 115
Age : 40
Company/Agency : Calintaan Munti
Occupation/Designation : Clerk, BAC Sec
Registration date : 2010-02-02

http://ompassessor.com.ph

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Wed Sep 01, 2010 4:04 pm

Bernadette G. Driza wrote:Thank you very much po...
okay no problem "Bernadette". you are welcome. Smile
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by engrjhez® on Wed Sep 01, 2010 8:35 pm

Bernadette G. Driza wrote:Is there a conflict when the accountant who reviewed the Financial Statement of the bidder is the Municipal Accountant of the Procuring Entity?
YES.

Section 7 of RA.6713 stipulates that:
Section 7. Prohibited Acts and Transactions. - In addition to acts and omissions of public officials and employees now prescribed in the Constitution and existing laws, the following shall constitute prohibited acts and transactions of any public official and employee and are hereby declared to be unlawful:

(a) Financial and material interest. - Public officials and employees shall not, directly or indirectly, have any financial or material interest in any transaction requiring the approval of their office.

(b) Outside employment and other activities related thereto. - Public officials and employees during their incumbency shall not:

(1) Own, control, manage or accept employment as officer, employee, consultant, counsel, broker, agent, trustee or nominee in any private enterprise regulated, supervised or licensed by their office unless expressly allowed by law;

(2) Engage in the private practice of their profession unless authorized by the Constitution or law, provided, that such practice will not conflict or tend to conflict with their official functions; or

x x x
Clearly, since the transaction is under the same Procuring Entity he/she is the Accountant, conflict of interest is evident.

Bernadette G. Driza wrote:Is this a ground for disqualification of the bidder?
NO.

But this will be a definite candidate violation of for RA 3019 or Anti-Graft and Corrupt Practices Act particularly Section 3(i):
3(i) Directly or indirectly becoming interested, for personal gain, or having a material interest in any transaction or act requiring the approval of a board, panel or group of which he is a member, and which exercises discretion in such approval, even if he votes against the same or does not participate in the action of the board, committee, panel or group.

Interest for personal gain shall be presumed against those public officers responsible for the approval of manifestly unlawful, inequitable, or irregular transaction or acts by the board, panel or group to which they belong.

...which is in connection to the RA.6713 first mentioned. Smile
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2480
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Thu Sep 02, 2010 4:15 pm

engrjhez® wrote:
Bernadette G. Driza wrote:Is there a conflict when the accountant who reviewed the Financial Statement of the bidder is the Municipal Accountant of the Procuring Entity?
YES.

Section 7 of RA.6713 stipulates that:
Section 7. Prohibited Acts and Transactions. - In addition to acts and omissions of public officials and employees now prescribed in the Constitution and existing laws, the following shall constitute prohibited acts and transactions of any public official and employee and are hereby declared to be unlawful:

(a) Financial and material interest. - Public officials and employees shall not, directly or indirectly, have any financial or material interest in any transaction requiring the approval of their office.

(b) Outside employment and other activities related thereto. - Public officials and employees during their incumbency shall not:

(1) Own, control, manage or accept employment as officer, employee, consultant, counsel, broker, agent, trustee or nominee in any private enterprise regulated, supervised or licensed by their office unless expressly allowed by law;

(2) Engage in the private practice of their profession unless authorized by the Constitution or law, provided, that such practice will not conflict or tend to conflict with their official functions; or

x x x
Clearly, since the transaction is under the same Procuring Entity he/she is the Accountant, conflict of interest is evident.

Bernadette G. Driza wrote:Is this a ground for disqualification of the bidder?
NO.

But this will be a definite candidate violation of for RA 3019 or Anti-Graft and Corrupt Practices Act particularly Section 3(i):
3(i) Directly or indirectly becoming interested, for personal gain, or having a material interest in any transaction or act requiring the approval of a board, panel or group of which he is a member, and which exercises discretion in such approval, even if he votes against the same or does not participate in the action of the board, committee, panel or group.

Interest for personal gain shall be presumed against those public officers responsible for the approval of manifestly unlawful, inequitable, or irregular transaction or acts by the board, panel or group to which they belong.

...which is in connection to the RA.6713 first mentioned. Smile
In my humble opinion, its rather difficult to be civil servant in government, so many restrictions, accountability etc. pale We need to keep updated as always. study
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by Berna on Sat Sep 04, 2010 4:55 pm

Thank you very much po for the information.
avatar
Berna
Active Poster
Active Poster

Female Number of posts : 115
Age : 40
Company/Agency : Calintaan Munti
Occupation/Designation : Clerk, BAC Sec
Registration date : 2010-02-02

http://ompassessor.com.ph

Back to top Go down

Re: Financial Statement

Post by misty on Sun Aug 14, 2011 8:18 pm

gud pm.
still on financial statements.
One of the bidders submitted an audited financial statements (income statement) which is obviously understated.
can this bidder be postdisqualified?
thanks a lot.
avatar
misty
Active Poster
Active Poster

Female Number of posts : 71
Company/Agency : lgu
Occupation/Designation : finance
Registration date : 2009-06-08

Back to top Go down

Re: Financial Statement

Post by engrjhez® on Mon Aug 15, 2011 3:12 pm

misty wrote:gud pm.
still on financial statements.
One of the bidders submitted an audited financial statements (income statement) which is obviously understated.
can this bidder be postdisqualified?
thanks a lot.
Even if it is "obviously understated", it is up to the BIR to declare it. What we need to check if the document submitted to us for PQ is the same document submitted to the BIR. Using too much discretion is dangerous. Smile
avatar
engrjhez®
Grand Master
Grand Master

Male Number of posts : 2480
Age : 39
Company/Agency : City Government of Bacoor [Region IV-A, Province of Cavite]
Occupation/Designation : Office of the City Legal Service (OCLS) / Certified National Trainer - PhilGEPS
Registration date : 2008-10-31

http://www.bacoor.gov.ph

Back to top Go down

Re: Financial Statement

Post by accounting on Tue Aug 16, 2011 4:35 pm

When we speak of Audited financial statement, it covers the income statement, balance sheet, owners equity, notes to FS. What BAC need to know is the NFCC only. Just be sure that the FS presented in bidding is stamped recieved by BIR. Understatement of the income is not the responsibility of the BAC who is reviewing the FS but the CPA who audited the FS.

the bidders financial eligibility is determine by the outcome of the NFCC when computed.

An accountant who accepts job outside a government office is allowed as long as there is an approval by the HOPE.

Conflict of interest can be seen on this issue however it is more of an influential interest meaning the bidder participated in the bidding because of the presence of his accountant who is concurrently the accountant of the procuring entity.
avatar
accounting
Active Poster
Active Poster

Male Number of posts : 84
Company/Agency : State Universities and Colleges
Occupation/Designation : Accountant III
Registration date : 2010-08-10

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Tue Aug 16, 2011 8:37 pm

accounting wrote:When we speak of Audited financial statement, it covers the income statement, balance sheet, owners equity, notes to FS. What BAC need to know is the NFCC only. Just be sure that the FS presented in bidding is stamped recieved by BIR. Understatement of the income is not the responsibility of the BAC who is reviewing the FS but the CPA who audited the FS.

the bidders financial eligibility is determine by the outcome of the NFCC when computed.

An accountant who accepts job outside a government office is allowed as long as there is an approval by the HOPE.

Conflict of interest can be seen on this issue however it is more of an influential interest meaning the bidder participated in the bidding because of the presence of his accountant who is concurrently the accountant of the procuring entity.
May I share opinion in reference to the underline text. Any practising accountant (CPA) can engage their services, provided a letter of engagement has to be prepared and agreed by both parties. It is the responsibility of the client to maintain sound financial records. The role of the Auditor is to express an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with the generally accepted accounting principles. The audit will be conducted in accordance with auditing standards generally accepted and will include tests of accounting records and other procedures necessary to enable to express such an opinion.
The audit is not designed to detect material errors, fraud, or other illegal acts or illegal acts that might have a direct effect on the financial statements. However, during the course of the audit uncovers any material facts that might influence the results it has to call attention of the client. my take on these topic. Peace.
bounce
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by accounting on Wed Aug 17, 2011 9:48 am

Very well said, mr sunriser431, Very Happy
avatar
accounting
Active Poster
Active Poster

Male Number of posts : 84
Company/Agency : State Universities and Colleges
Occupation/Designation : Accountant III
Registration date : 2010-08-10

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Wed Aug 17, 2011 10:49 am

accounting wrote:Very well said, mr sunriser431, Very Happy
as always cheers
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by Berna on Wed Aug 17, 2011 11:37 am

What if the FS presented was not stamped received by the bir but there is the acknowledgement that they have filed thru efps...
avatar
Berna
Active Poster
Active Poster

Female Number of posts : 115
Age : 40
Company/Agency : Calintaan Munti
Occupation/Designation : Clerk, BAC Sec
Registration date : 2010-02-02

http://ompassessor.com.ph

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Wed Aug 17, 2011 11:47 am

Dette wrote:What if the FS presented was not stamped received by the bir but there is the acknowledgement that they have filed thru efps...
Try follow the LINK and refer to section 2 under the General Provision, hopefully it answer your concern. Peace. bounce
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by Berna on Wed Aug 17, 2011 12:29 pm

Thank you sunriser
avatar
Berna
Active Poster
Active Poster

Female Number of posts : 115
Age : 40
Company/Agency : Calintaan Munti
Occupation/Designation : Clerk, BAC Sec
Registration date : 2010-02-02

http://ompassessor.com.ph

Back to top Go down

Re: Financial Statement

Post by sunriser431 on Thu Aug 18, 2011 4:36 pm

Dette wrote:Thank you sunriser
as always at your service Ma'am "Dette". Lets keep these forum alive cheers
avatar
sunriser431
Grand Master
Grand Master

Male Number of posts : 1518
Company/Agency : Goccs Jolo Sulu All the way Downsouth
Occupation/Designation : IAS
Registration date : 2009-05-07

Back to top Go down

Re: Financial Statement

Post by RDV @ GP3i on Fri Aug 19, 2011 9:24 am

Dette wrote:What if the FS presented was not stamped received by the bir but there is the acknowledgement that they have filed thru efps...

The Audited Financial Statement (AFS) should have either a stamped received by the BIR or by any BIR-accredited institution. If it does not have that stamped received, the bidder should be disqualified.

On the other hand, the EFPS or the Electronic Filing and Payment System is with regards to the payment of the appropriate taxes to the BIR.

The AFS and the EFPS are, therefore, two different requirements.
avatar
RDV @ GP3i
Grand Master
Grand Master

Male Number of posts : 1611
Company/Agency : DBM-Reg'l Office IV-B
Occupation/Designation : Regional Director/ Procurement Trainer
Registration date : 2008-09-04

http://gppphil.org/

Back to top Go down

Re: Financial Statement

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum