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DOCUMENTARY

REQUIREMENTS
FOR COMMON
GOVERNMENT
TRANSACTIONS
As prescribed under COA Circular NO. 2012-001 dated June 14, 2012
Fundamental Principles Governing the financial transactions
and operations of government agency as provided under
Section 4 of Presidential Decree (PD) No. 1445:
1. No money shall be paid out of any public treasury or depository except in pursuance of an
appropriation law or other specific statutory authority.
2. Government funds or property shall be spent or used solely for public purposes.
3. Trust funds shall be available and may be spent only for the specific purpose for which the
trust funds was created or the funds received.
4. Fiscal responsibility shall, to the greatest extent, be shared by all those exercising
authority over the financial affairs, transactions, and operations of the government
agency.
5. Disbursements or disposition of government funds or property shall invariably bear the
approval of the proper officials.
6. Claims against government funds shall be supported with complete documentation.
7. All laws and regulations applicable to financial transactions shall be faithfully adhered to.
General Requirements for All Types of
Disbursements
1. Certificate of Availability of Funds issued by the Accountant
2. Existence of lawful and sufficient allotment duly obligated as
certified by authorized official
3. Legality of transactions and conformity with laws, rules or
regulations
4. Approval of expenditure by Head of Office or his authorized
representative
5. Sufficient and relevant documents to establish validity of claim
CASH ADVANCES
1.1 Granting of Cash Advance (COA Circular No. 97-002 dated
February 10, 1997 and reiterated in COA Circular No. 2009-002 dated May
18, 2009 and Section 89 of PD No. 1445)

 No cash advance shall be given unless for a legally authorized specific


purpose.
 No additional cash advances shall be allowed to any official or employee
unless previous cash advance given to him is first liquidated and accounted for
in the books.
 No cash advance shall be granted for payments on account of infrastructure
projects or other undertaking on a project basis.
 A cash advance shall be reported as soon as the purpose for which it was given
has been served.
 Only permanently appointed officials shall be designated as disbursing
officers. Elected officials may be granted a cash advance only
Documentary Requirements common to
all cash advances except for travels
 Authority of the accountable officer issued by the
Head of the Agency or his duly authorized
representative indicating the maximum accountability
and purpose of cash advance (for initial cash advance)
 Certification from the Accountant that previous cash
advances have been liquidated and accounted for in
the books.
 Approved application for bond and/or Fidelity Bond for
the year for cash accountability of P2,000 or more
Payroll Fund for Salaries, Wages, Allowances,
Honoraria and other Similar Expenses

 The Cash Advance for Payroll Fund shall be equal to the net
amount of the payroll for the pay period

Additional Documentary Requirements


 Approved contracts (for initial payments)
 Approved Payrolls or list of payees indicating their net payments
 Approval/authority or legal basis to pay any allowances/salaries/fringe
benefits
 Daily Time Record (DTR) approved by the Supervisor
Petty Cash Fund (PCF)
 The PCF to be set up shall be sufficient for the recurring petty
operating expenses of the agency for the month.
 It shall NOT be used for payments of regular expenses, such as
rentals, subscriptions, light and water bills and the like.
 Payments out of PCF, which shall be made through the Petty Cash
Voucher, shall be allowed only for amounts not exceeding P15,000 for
each transaction
 Splitting of transactions to avoid exceeding the ceiling shall not be
allowed

Additional Documentary Requirements


 Approved estimates of petty expenses for the month
Travelling Allowances (EO No. 248 dated May 29,
1995 as amended by EO No. 248-A dated August 14, 1995 and
EO No. 298 dated March 23, 2004)

 Travels shall cover only those that are urgent and extremely
necessary, will involve the minimum expenditure and are
beneficial to the agency concerned.

Local Travels
Documentary Requirements
 Office Order/Travel Order approved in accordance with Section 3 of EO
No. 298
 Duly approved itinerary of travel
 Certification from the accountant that previous cash advance has been
liquidated and accounted for in the books
CASH ADVANCES
1.2 Liquidation of Cash Advances
The accountable officer shall liquidate cash advances within the following period:

 Salaries, Wages, Allowances, Honoraria and Other Similar Payments – within


five (5) calendar days after the end of pay period
 Petty Cash Fund (PCF) – as soon as the disbursements reaches 75% or as
needed, the PCF shall be replenished which shall be equal to the total amount
of expenditures made therefrom. IN case of termination, resignation,
retirement or dismissal of the PCF custodian, immediately thereafter
 Travelling Expenses- within 30 days after the return of the official/employee
concerned to his official station for local travels and within 60days for foreign
travel
 Special Purpose – as soon as the purpose of the cash advance has been served.
Payroll Fund for Salaries, Wages, Allowances,
Honoraria and other Similar Expenses
Documentary Requirements
 Report of Disbursements certified correct by the accountable officer
 Approved payrolls/vouchers duly acknowledged/signed by payee/s
 Approved Daily Time Records (DTRs) or Certificate of Service
 Approved application for leave
 In case of personnel under the “job order” status, duly verified/accepted
accomplishment report
 Official Receipt (OR) in case of refund for unclaimed salaries
 Authority of the claimant and identification documents, if claimed by
person other than payee
 Such other pertinent supporting documents as are required by the nature
of expense
Petty Cash Fund
Documentary Requirements
 Summary of Petty Cash Vouchers
 Report of Disbursements
 Petty Cash Replenishment Report
 Approved Purchase Request with Certificate of Emergency Purchase, if
necessary
 Bills, receipts, sales invoices
 Certificate of Inspection and Acceptance
 Report of Waste Materials in case of replacement/repairs
 Approved trip tickets, for gasoline expenses
Petty Cash Fund
Documentary Requirements (continuation)
 Canvass from atleast three suppliers for purchases involving P1,000.00
and above, except for purchases made while on official travel
 Summary/Abstract of Canvass
 Petty Cash Vouchers duly accomplished and signed
 OR in case of refund
 For reimbursement of toll receipts
 Toll Receipts
 Trip Tickets
 Such other supporting documents that may be required and/or required
under the company policy depending on the nature of expenses
Travelling Expenses (Local Travel)
Documentary Requirements
 Paper/electronic plane, boat or bus tickets, boarding pass, terminal fee
 Certificate of appearance/attendance
 Copy of previously approved itinerary of travel
 Revised or supplemental Travel Order/Office Order or any proof supporting
the change of schedule
 Revised Itinerary of Travel, if the previous approved itinerary was not
followed
 Certification by the Head of the Agency as to the absolute necessity of the
expenses incurred for official travel exceeded the prescribed rate per day
(Certification or affidavit of loss shall not be considered as an appropriate
replacement for the required hotel/lodging bills and receipts)
Travelling Expenses (Local Travel)

Documentary Requirements (continuation)


 Liquidation Report
 Reimbursement Expense Receipt (RER)
 OR in case of refund of excess cash advance
 Certificate of Travel Completed
 Hotel/room/lodging bills with official receipt in the case of official
travel to places within the 50-kilometer radius from the last city or
municipality where their permanent official station is located, if the
travel allowances being claimed include the hotel room/lodging rate
SALARY
General Guidelines

 For LGUs, the budget limitations for Personal Services (PS)


provided under Section 32 (a) of the Local Government Code
(RA No. 7160) of 45 percent, in case of first to third class
provinces, cities and municipalities, and 55 percent, in case of
fourth class or lower, of the total income from regular sources
realized in the next preceding fiscal year shall be strictly
observed.
Individual Claims
 First Salary
Documentary Requirements
 Certified True copy of duly approved Appointment
 Assignment Order, if applicable
 Certified True copy of Oath of Office
 Certificate of Assumption
 Statement of Assets, Liabilities and Net Worth
 Approved DTR
 Bureau of Internal Revenue (BIR) withholding Certificates (Form 1902 and
2305)
 Authority from the claimant and identification documents, if claimed by
person other than the payee
Individual Claims
 First Salary
Additional Requirements for transferees (from one government office to
another
 Clearance from money, property and legal accountabilities from the
previous office
 Certified True Copy of pre-audited disbursement voucher of last salry
from previous agency and/or Certification by the Chief Accountant of last
salary received from previous office duly verified by the assigned auditor
thereat
 BIR Form 2316 (Certificate of Compensation Payments/Tax Withheld
 Certificate of Available Leave Credits
 Service Record
Individual Claims
 Salary (if deleted from the payroll)
Documentary Requirements

 Approved DTR
 Notice of Assumption
 Approved Application for Leave, Clearances and Medical Certificate, if
on sick leave for five days or more
Individual Claims
 Salary Differential due to Promotion and/or Step
Increment
Documentary Requirements

 Certified true copy of approved appointment in case of promotion or


Notice of Salary Adjustment in case of step increment/salary increase
 Certificate of Assumption
 Approved DTR or certification that the employee has not incurred
leave without pay
 Certification by the LCE, in case of LGUs, that the promotion/step
increment is still within the PS limitation prescribed under Section
325 (a) of RA No. 7160
Individual Claims
 Last Salary
Documentary Requirements

 Clearance from money, property and legal accountabilities


 Approved DTR
Individual Claims
 Salary due to heirs of deceased employee
Documentary Requirements

 Same requirements as those for the last salary


 Additional requirements:
 Death Certificate authenticated by National Statistics Office (NSO)
 Marriage Contract authenticated by NSO, if applicable
 Birth Certificate of surviving legal heirs authenticated by NSO
 Designation of next-in-kin
 Waiver of right of children 18 years old and above
Individual Claims
 Maternity Leave
Documentary Requirements

 Certified true copy of approved application for leave


 Certified true copy of Maternity Leave Clearance
 Medical Certificate for Maternity Leave

Additional Requirements for Unused Maternity Leave (upon assumption before


the expiration of the 60-day maternity leave

 Medical Certificate that the employee is physically fit to work


 Certificate of Assumption
 Approved DTR
General Claims through the Automated Tellet
Machine (ATM)
Documentary Requirements

 Salary Payroll
 Payroll Register (hard and soft copy)
 Letter to the Bank to credit employees’ account of their salaries or other
claims
 Validated deposit slips
ALLOWANCES, HONORARIA AND OTHER FORMS
OF COMPENSATION

General Guidelines

 No official or employee in any of the agencies of the


government shall be paid any personnel benefits charged
against public funds unless authorized by law. Grant of
personnel benefits authorized by law but not supported by
specific appropriations shall also be deemed unauthorized.
(Section 51 of FY 2012 GAA or pertinent provisions of the GAA for the year)
Personnel Economic Relief Allowance (PERA)

 The PERA shall be paid only when basic pay (salary) is also paid.

Documentary Requirements

 Same requirements as those for payments of salaries


Representation and Transportation Allowance (RATA)
 The official/employee who, in the actual performance of their
respective functions, are entitled to receive RATA
 Transportation allowances shall not be granted to officials who are
assigned or who presently using government motor transportation.

Documentary Requirements
 For Individual Claims
 Copy of Office Order/Appointment (1st payment)
 Certificate of Assumption (1st payment)
 Certification that the official/employee did not use government vehicle and
is not assigned any government vehicle
 Certificate or evidence of service rendered or approved DTR
 Certification by the LCE that the revised RATA rates is still within the PS
limitation (for initial claim)
Representation and Transportation Allowance (RATA)

Documentary Requirements (continuation)


 For General Claims
 RATA Payroll
 Payroll Register (hard and soft copy)
 Letter to the Bank to credit employees’ account of their RATA claims,
if applicable
 Validated deposit slips
Clothing/Uniform Allowance
 Government personnel who are expected to render at least six
consecutive months of service in a particular year including leaves of
absence with pay shall be entitled to clothing allowance.
 The appropriations provided for each agency may be used for uniform
or clothing allowance of employees at not more than P5,000.0 each per
annum, subject to the rules and regulations issued by the DBM.

Documentary Requirements
 For Individual Claims
 Certified true copy of approved appointment of new employee
 Certificate of Assumption of new employee
 Certification of non-payment from previous agency, for transferees
Clothing/Uniform Allowance

Documentary Requirements (continuation)


 For General Claims
 Clothing/Uniform Allowance Payroll
 Payroll Register (hard and soft copy)
 Letter to the Bank to credit employees’ account of their claims, if
applicable
 Validated deposit slips
HONORARIA

 Government Personnel performing activities or discharging


duties in addition to, or over and above their regular
functions may be granted honoraria.

 Government Personnel Involved in Government Procurement


 Lecturer/Coordinator

 Special Projects
HONORARIA
 Government Personnel involved in Government Procurement (DBM Budget
Circular No. 2004-5A dated March 23, 2004 as amended by DBM Budget Circular
No. 2007-3 dated November 29, 2007)
 The honoraria shall be sourced from the following:
 Collections from successfully completed procurement projects limited
however, to activities prior to awarding of contracts to winning bidders:
 Proceeds from sale of bid documents
 Fees from contractor/supplier registry
 Fees charged to copies of minutes of bid opening, Bids and Awards Committee
(BAC) Resolutions and other BAC documents
 Protest fees
 Proceeds from bid security forfeiture
 Savings from the local budgets approved by their respective Sanggunian
subject to the pertinent provision of RA No. 7160
HONORARIA
 Government Personnel involved in Government Procurement (DBM Budget
Circular No. 2004-5A dated March 23, 2004 as amended by DBM Budget Circular
No. 2007-3 dated November 29, 2007)

 The honoraria shall be limited to:


 Successfully completed procurement project. A procurement project shall be
considered successfully completed once the contract has been awarded to
the winning bidder.
 Procurement that involves public bidding. Public bidding activities are
present only in:
 Competitive bidding
 Limited source bidding
 Negotiated procurement, only when resorted to after there has been failure of
bidding for the second time
HONORARIA
 Government Personnel involved in Government Procurement
 The honoraria per completed procurement project shall not
exceed P3,000.00 for BAC Chair, P2,500.00 for BAC Members and
P2,000 for each Technical Working Group (TWG) Chair and
Members. The average amount of honoraria per month over one
year shall not exceed 25% of basic monthly salary.
Documentary Requirements
 Office Order creating and designating the BAC composition and
authorizing the members to collect honoraria.
 Minutes of BAC Meeting
 Notice of Award to the winning bidder of procurement activity being
claimed
 Certification that the procurement involves competitive bidding
 Attendance Sheet listing names of attendees to BAC Meeting
HONORARIA
 Lecturer/Coordinator/Resource Persons/Facilitators (DBM Budget Circular
No. 2007-1 dated April 23, 2007)

Documentary Requirements
 Office Order/Travel Order
 Coordinator’s report on lecturer’s schedule
 Course Syllabus/Program of Lecturers
 Duly approved DTR in case of claims by the coordinator and
facilitators
HONORARIA
 Special Projects (DBM Budget Circular No. 2007-2 dated October 1, 2007)

 The honoraria received from all special projects shall not exceed 25% of the
annual basic salary.

Documentary Requirements
 Performance evaluation plan formulated by project management used as
basis for rating the performance of members
 Office Order designating members of the special project
 Terms of Reference
 Certificate of completion of project deliverables
 Special Project Plan
 Authority to collect honoraria
 Certificate of acceptance by the agency head of the deliverables per
project component.
OVERTIME PAY (DBM Budget Circular No. 10 dated March 29, 2006)

 Overtime work should be avoided by adequate planning of work


activities. It should not be resorted to in the performance of
regular/routine work and activities except in cases when unforeseen
events and emergency situations will result in any of the following:
 Financial loss to the government or its instrumentalities
 Embarrassment to the government due to its inability to meet its
commitments
 Negate the purpose for which the work or activity was conceived
 As a general rule, the total overtime pay of the employee for a given
calendar year shall not exceed 50% of his annual basic salary
OVERTIME PAY (DBM Budget Circular No. 10 dated March 29, 2006)

Documentary Requirements
 Overtime authority stating the necessity and urgency of the work to be
done and the duration of overtime work
 Overtime work program
 Quantified Overtime accomplishment duly signed by the employee and
supervisor
 Certificate of service or duly approved DTR
YEAR-END BONUS (YEB) AND CASH GIFT (CF)
Documentary Requirements
 For Individual Claims
 Clearance from money, property and legal accountabilities
 Certification from Head of Office that the employee is qualified to receive
the YEB and CG benefits

 General Claims
 YEB and CG Payroll
 Payroll Register (hard and soft copy)
 Letter to the Bank to credit employees’ account of their claims, if applicable
 Validated deposit slips
TERMINAL LEAVE BENEFITS (Rule XVI of the omnibus Rules
Implementing Book V of EO No. 292, as amended by CSC MC Nos. 41 s. 1998,6 and 14
s.1999)

 Terminal leave is applied for by an official or an employee who


intends to sever his connection with his employer.
 Any official or employee of the government who retires, voluntarily
resigns, or is separated from the service and who is not otherwise
covered by special law, shall be entitled to the commutation of his
leave credits exclusive of Saturdays, Sundays and Holidays without
limitation and regardless of the period when the credits were earned.
 Payment of terminal leave for purposes of retirement or voluntary
resignation shall be based on the highest monthly salary received at
any time during his period of employment in the government service
and not on his latest salary, unless latter is the highest received by
the retiree.
TERMINAL LEAVE BENEFITS (Rule XVI of the omnibus Rules
Implementing Book V of EO No. 292, as amended by CSC MC Nos. 41 s. 1998,6 and 14
s.1999)

Documentary Requirements
 Clearance from money, property and legal accountability from the
Agency assigned
 Certificate of leave credits issued by Admin/Human Resource
Management Office (HRMO)
 Approved leave application
 Complete service record
 Statement of Assets, Liabilities and Net Worth (SALN)
 Certified photocopy of appointment/Notice of Salary Adjustment
(NOSA) showing the highest salary received if the salary under the last
appointment is not the highest
TERMINAL LEAVE BENEFITS (Rule XVI of the omnibus Rules
Implementing Book V of EO No. 292, as amended by CSC MC Nos. 41 s. 1998,6 and 14
s.1999)

Documentary Requirements (continuation)


 Computation of terminal leave benefits duly signed/certified by the
accountant
 Applicant’s authorization (in affidavit form) to deduct all financial
obligations with the employer/agency/LGU
 Affidavit of applicant that there is no pending criminal investigation
or prosecution against him/her (RA No. 3019)
 In case of resignation, employer’s letter of resognation duly accepted
by the Head of the Agency
 Clearance from the GSIS
TERMINAL LEAVE BENEFITS (Rule XVI of the omnibus Rules
Implementing Book V of EO No. 292, as amended by CSC MC Nos. 41 s. 1998,6 and 14
s.1999)

Additional Requirements in case of death of claimant


 Death certificate authenticated by NSO
 Marriage certificate authenticated by NSO
 Birth certificates of all surviving legal heirs authenticated by NSO
 Designation of next-in-kin
 Waiver of rights of children 18 years old and above
MONETIZATION Rule XVI of the Omnibus Rules Implementing Book V of EO No. 292)
 Official and employees n the career and non-career service, who have
accumulated 15 days of vacation leave credits shall be allowed to monetize
a minimum of 10 days; Provided that at least days is retained after
monetization and provided further that a maximum of 30 days may be
monetized in a given year.
 Monetization of 50% or more of accumulated leave credits may be allowed
for a valid and justifiable reasons, such as:
 Health, medical and hospital needs of the employee and the immediate
members of the family
 Financial aid and assistance brought about by force majeure
 Educational needs of the employee and immediate members of his/her
family
 Payment of mortgages/loans which were entered into for the befit or which
inured to the benefit of the employee/immediate family
 Incase of extreme financial needs of the employer and his/her immediate
family where present sources of income are not enough to fulfill basic needs
 Other analogous cases as may be determined by CSC
MONETIZATION (Rule XVI of the Omnibus Rules Implementing Book V of EO
No. 292)

Documentary Requirements
 Approved leave application (ten days) with leave credit balance
certified by the Human Resource Office
 Request for leave covering more than ten days duly approved by the
Head of Agency
 For monetization of 50% or more:
 Clinical Abstract/medical procedures to be undertaken in case of health,
medical and hospital needs
 Barangay Certification in case of need for financial assistance brought by
calamities, typhoons, fire, etc.
LOYALTY CASH AWARD/INCENTIVE (COA Resolution No. 2002-010 dated
November 29, 2002 and CSC Memorandum Circular No. 6 s. 2002 dated March 1, 2002)

 A loyalty award is granted to all officials and employees, who


rendered ten (10) years of continuous and satisfactory service in the
government. The agency where the employee or official completed
the ten years of continuous and satisfactory service shall grant the
award.
 An official or employee who incurred an aggregate of not more than
50 days authorized vacation leave without pay within the 10-year
period shall be considered as having rendered continuous service for
purposes of granting the loyalty awardd
 Effective January 1, 2002, continuous and satisfactory services in
government for purposes of granting loyalty award shall include
services in one or more government agencies without any gap.
LOYALTY CASH AWARD/INCENTIVE (COA Resolution No. 2002-010 dated
November 29, 2002 and CSC Memorandum Circular No. 6 s. 2002 dated March 1, 2002)

Documentary Requirements
 For Individual Claims
 Service Record
 Certificate of non-payment from previous office (for transferee)
 Certification from the HRMO that the claimant has not incurred more than
50 days authorized vacation leave without pay within the 10-year period
or aggregate of more than 25 days authorized vacation leave without pay
within the 5-year period, as the case may be
 General Claims
 Loyalty Cash Award Payroll/Incentive Payroll
 Payroll Register (hard and soft copy)
 Letter to the Bank to credit employees’ account of their claims, if applicable
 Validated deposit slips
COLLECTIVE NEGOTIATION AGREEMENT (CNA) INCENTIVE (DBM Budget
Circular No. 2006-1 dated February 1, 2006)

Documentary Requirements
 Resolution signed by both parties incorporating the guidelines/criteria
for granting CAN incentive
 Comparative statement of DBM approved level of operating expenses and
actual operating expenses
 Copy of CAN
 Certificate issued by the Head of the Agency on the total amount of
unencumbered savings generated from cost-cutting measures identified
in the CAN which resulted from the joint efforts of labor and
management and systems/productivity/ income improvement
 Proof that the planned programs/activities/projects have been
implemented and completed in accordance with targets for the year.
OTHER EXPENSES

 The amounts programmed, particularly for, but not limited


to, petroleum, oil and lubricants, as well as for water,
illumination and power services, telephone and other
communication services and rent requirements SHALL be
disbursed solely for such items of expenditures.
 Any savings generated from these items after taking
consideration the agency’s full year requirement may be
realigned only in the last quarter and subject to the rules
and regulations on realignment of funds.
Utility Expenses

Documentary Requirements
 Statement of Account/Bill (for pre-audit purposes)
 Invoice/Official Receipt or machine validated statement of account/bill
(for post-audit purposes
Telephone/Communication Services

Documentary Requirements
 Statement of Account/Bill (for pre-audit purposes)
 Invoice/Official Receipt or machine validated statement of account/bill
(for post-audit purposes
 Certification by Agency Head or his authorized representatives that all
National Direct Dial (NDD), National Operator Assisted Calls and
International Operator Assisted Calls are official calls
PROCUREMENT
 Procurement of any branch, agency, department, bureau, office or
instrumentality of the government shall be governed by RA No. 9184
and its Revised Implementing Rules and Regulations (IRR) and other
issuances of the General Procurement Policy Board (GPPB)
 The PHILGEPS shall be used as the primary source of information on
government procurement of common-use supplies, goods and
equipment and as a repository of all government procurement
information
 No procurement shall be undertaken unless it is in accordance with the
approved Annual Procurement Plan (APP) of the procuring entity.
 As a general rule, all procurement shall be done through public bidding
 To enhance transparency of the process, the BAC shall, in all stages of
the procurement process, invite, in addition to the COA
representative, at least two observers.
PROCUREMENT
 Procurement through Public Bidding
Basic Requirements for all types of procurement through Public Bidding
 Authenticated photocopy of the approved APP and any amendments thereto
 Approved contract supported by the following documents as required under COA
Circular No. 2009-001 dated February 12, 2009 and COA Memorandum No. 2005-027
dated February 28, 2005 to be submitted to COA’s Office within five (5) days from the
execution of the contract:
 Invitation to Apply for Eligibility to Bid
 Letter of Intent
 Results of Eligibility Check/Screening
 Bidding Documents as enumerated under Section 17.1 of the Revised IRR of RA No. 9184
 Minutes of Pre-Bid Conference (if ABC is P1.0 million and above)
 Agenda and/or Supplemental Bid Bulletin, if any
PROCUREMENT
 Procurement through Public Bidding
Basic Requirements for all types of procurement through Public Bidding (continuation)
 Bidders Technical and Financial Proposals
 Minutes of Bid Opening
 Abstract of Bids
 Post-Qualification Report of Technical Working Group
 BAC Resolution declaring winning bidder
 Notice of Post Qualification
 Bac Resolution recommending approval and approval by the Head of the Procuring Entity of
the Resolution of the BAC recommending award of contract
 Notice of Award
 Performance Security
 Program of Work and Detailed Estimates
PROCUREMENT
 Procurement through Public Bidding
Basic Requirements for all types of procurement through Public Bidding
(continuation)
 Notice to Proceed, indicating the date of receipt by the contractor
 Detailed Breakdown of the ABC
 Copy of the Approved PERT/CPM Network Diagram and detailed computations of
contract time
 Detailed Breakdown of the Contract Cost
 Copy of Advertisement of Invitation to Bid/Request for expression of interest
o Newspaper clippings of advertisement (ABC P5.0 million and above for infrastructure, P2.0
million and above for goods, and P1.0 million or four months duration and above for
consulting services
o Printout copy of advertisement posted in PHILGEPS
o Certification from the Head of the BAC Secretariat on the posting of advertisement at
conspicuous places
o Printout copies of advertisement posted in agency website, if any
PROCUREMENT
 Procurement through Public Bidding
Basic Requirements for all types of procurement through Public Bidding
(continuation)
 Documentary requirements under Section 23.1 and 25.2.b for infrastructure
projects, 23.1 and 25.2a for goods and 24.1 and 25.2c for consulting services, of
the Revised IRR of RA No. 9184
 Minutes of Pre-procurement Conference for projects costing above P5.0 million and
above for infrastructure, P2.0 million and above for goods, and P1.0 million or four
months duration and above for consulting services
 Bid Evaluation Report
 Ranking of short listed bidders for consulting services
 Post Qualification Evaluation Report
 Printout copy of posting of Notice of Award, Notice to Proceed and Contract of
award in the PhilGEPS
PROCUREMENT
 Procurement through Public Bidding
Basic Requirements for all types of procurement through Public Bidding
(continuation)
 Documentary requirements under Section 23.1 and 25.2.b for infrastructure
projects, 23.1 and 25.2a for goods and 24.1 and 25.2c for consulting services, of
the Revised IRR of RA No. 9184
 Minutes of Pre-procurement Conference for projects costing above P5.0 million and
above for infrastructure, P2.0 million and above for goods, and P1.0 million or four
months duration and above for consulting services
 Bid Evaluation Report
 Ranking of short listed bidders for consulting services
 Post Qualification Evaluation Report
 Printout copy of posting of Notice of Award, Notice to Proceed and Contract of
award in the PhilGEPS
PROCUREMENT
 Procurement through Public Bidding
Basic Requirements for all types of procurement through Public Bidding
(continuation)
 For LGUs, as clarified under COA Memorandum No. 2010-014 dated April 22, 2010,
authorization by local Sanggunian for the Local Chief Executive to enter into
contract in case of the following:
o In case of a reenacted budget
- For new contracts entered into by the LCE for contractual obligations included in
the previous year’s annual and supplemental budget
o In case of the regularly enacted budget
- For Projects described in generic terms, such as infrastructure projects, flood
control etc.
- For purchase of goods and services which are neither specified nor encompassed
within the regular personal services and maintenance operating expenses
 Evidence of invitation to three observers in all stages of the procurement service
 Purchase Request approved by proper authorities
PROCUREMENT
 Infrastructure
Additional documentary requirements common to all infrastructure transactions
 Letter request from contractors for advance/progress/ final payment or for
substitution in case of release of retention money
 Common to progress/ final payments
o Statement of Work Accomplished/Progress Billing
o Inspection Report by the Agency’s Authorized Engineer
o Results of Test Analysis, if applicable
o Statement of Time Elapsed
o Monthly Certificate of Payment
o Contractor’s affidavit on payment of laborers and materials
o Pictures before, during and after construction of items of work especially the
embedded items
o Photocopy of vouchers of all previous payments
o Certificate of completion
PROCUREMENT
 Infrastructure (Advance Payments)

 The procuring entity shall, upon written request from the contractor, make an
advance payment to the contractor in an amount not exceeding 15% of the total
contract price to be made lump-sum or, at the most, two installments according to
a schedule specified in the Invitation to Bidders and other relevant Tender
Documents

Additional documentary requirements


 Irrevocable Standby Letter of Credit/Security Bond/Bank Guarantee
 Such other documents peculiar to the contracts and/or to the mode of
procurement and considered necessary in the auditorial review and technical
evaluation thereof
PROCUREMENT
 Infrastructure (Variation Order/Change Order/Extra Work Order)

 Variation Order/Extra Work Order may be issued to cover any increase/decrease in


quantities, including the introduction of new work items that are not included in the
original contract, provided that the cumulative amount of the positive or additional
Variation Order does not exceed 10% of the original contract price.
Additional documentary requirements
 Copy of Approved Change Order (CO)/Extra Work Order (EWO)
 Copy of the approved original plans indicating the affected portion(s) of the project
and duly revised plans and specifications, if applicable, indicating the changes made
which shall be color coded
 Copy of the agency’s report establishing the necessity/justification(s) for the need of
such CO and/or EWO which shall include: (a) the computation as to the quantities of
the additional works involved per item indicating the specific stations where such
works are needed; (b) the date of inspection conducted and the results of such
inspection; (c) a detailed estimate of the unit cost of such items of work for new
unit costs including those expressed in volume/area/lump/lot
PROCUREMENT
 Infrastructure (Variation Order/Change Order/Extra Work Order)

Additional documentary requirements (continuation)


 Copy of the approved/revised PERT/CPM Network Diagram which shall be color
coded, reflecting the effect of additional/deductive time on the contract period
and corresponding detailed computations for the additional/deductive time for
the subject Change Order/Extra Work Order
 Copy of approved detailed breakdown of contract cost for the variation order
 Copy of the COA Technical Evaluation Report for the original contract
 Additional performance security in the prescribed form and amount if variation
order exceeds 10% of the original contract cost
 Such other documents peculiar to the contract and/or to the mode of
procurement and considered necessary in the auditorial review and in the
technical evaluation thereof
PROCUREMENT
 Infrastructure (Final Payment)

 Contractors shall be fully paid only upon completion and acceptance of the project
by the agency
Additional documentary requirements
 As Built Plans
 Warranty Security
 Clearance from the Provincial Treasurer that the corresponding sand and gravel
fees have been paid
 Copy of turn over documents/transfer of project and facilities such as motor
vehicle, laptops, other equipment and furniture included in the contract to
concerned government agency
 Report of Scrap Construction Materials/Waste Materials Report
PROCUREMENT
 Infrastructure (Release of Retention Money)

 The total retention money shall be due for release upon final acceptance of the
works. The contractor may, however, request the substitution of the retention
money for each progress billing with irrevocable standby letters of credit from
commercial banks, bank guarantee or surety bonds callable on demand, of amounts
equivalent to the retention money substituted for and acceptable to the
Government, provided that the project is on schedule and is satisfactorily
undertaken.
Additional documentary requirements
 Any security in form of cash, bank guarantee, irrevocable standby letter of
credit from a commercial bank, GSIS or surety bond callable on demand
 Certification from the end user that the project is completed and inspected.
PROCUREMENT
 Consulting Services

 The services of consultants ,may be engaged by any procuring entity for government
projects or related activities of such magnitude and/or scope as would require a
level of expertise and attention beyond the optimum inhouse capacity of the agency
concerned
Additional documentary requirements
 Letter request for payment from the consultant
 Approved Consultancy Progress/Final Reports, and/or output required under the
contract
 Progress/Final Billing
 Contract of Infrastructure Projects subject to Project Management Consultancy
Services
PROCUREMENT
 Consulting Services

 The services of consultants ,may be engaged by any procuring entity for government
projects or related activities of such magnitude and/or scope as would require a
level of expertise and attention beyond the optimum inhouse capacity of the agency
concerned
Additional documentary requirements
 Letter request for payment from the consultant
 Approved Consultancy Progress/Final Reports, and/or output required under the
contract
 Progress/Final Billing
 Contract of Infrastructure Projects subject to Project Management Consultancy
Services
PROCUREMENT
 Goods

 Procurement of goods shall be governed by the following provisions:


o The Inventory of supplies, materials and equipment spare parts to be procured
out of available funds shall at no time exceed the normal three month
requirement
o Agencies of the government are authorized to make emergency purchases of
supplies, materials and spare parts of motor transport equipment when there is
an unforeseen contingency requiring immediate purchase
o All appropriations for the procurement of equipment, supplies and materials
and other products and services authorized in this Act shall give preference to
domestic entities and domestic bidders.
PROCUREMENT
 Goods (Supplies, Materials, Equipment and Motor Vehicle)

Additional documentary requirements


 Certificate of Exclusive Distributorship, if applicable
 Samples and brochures/photographs, if applicable
 Original copy of Dealers/Supplier’s Invoice showing quantity, description of the
articles, unit and total value, duly signed by the dealer or his representative,
and indicating receipt by the proper agency official of items delivered
 Results of Test Analysis, if applicable
 Tax receipts from the Bureau of Customs or the BIR indicating the exact
specifications and/or serial number of the equipment procured by the
government
 Inspection and Acceptance Report prepared by the Department/Agency property
inspector and signed by the Head of Agency or his authorized representative
 For equipment, Property Acknowledgement Receipt
PROCUREMENT
 Goods (Supplies, Materials, Equipment and Motor Vehicle)
Additional documentary requirements (continuation)
 Warranty Security for a minimum period of three months, in the case of expendable
supplies, or a minimum period of one year in the case of non-expendable supplies,
after acceptance by the procuring entity of the delivered supplies
 Request for purchase of supplies, materials and equipment duly approved by proper
authorities
 In case of motor vehicle, authority to evaluate, recommend and approve purchase
from the DILG
 For procurement of drugs and medicines:
 Certificate of Product Registration (CPR) from FDA
 Certificate of Good Manufacturing Practice (CGMP) from FDA
 If the supplier is not the manufacturer, certification from the manufacturer that the
supplier is an authorized distributor/dealer of the products/items
 License to Operate (LTO) from FDA
 Batch release Certificate from FDA
PROCUREMENT
 Goods (Repair and Maintenance of Equipment and Motor Vehicles)
Additional documentary requirements
 Additional documents required to be submitted to the Auditor’s Office within five days
from the execution of the contracts:
• Copy of the pre-repair evaluation report and approved detailed plans by the agency
showing sufficient detail, the scope of work/extent of repair to be done
• Report of Waste Materials
• Copy of document indicating the history of repair
 Post-Inspection reports
 Warranty Certificate
 Request for payment
 Bill/Invoices
 Certificate of Acceptance
 Pre-repair inspection report
 Such other documents peculiar to the contract
PROCUREMENT
 Goods (Advertising Expenses)

 Administrative Order NO. 103 dated August 31, 2004 suspends, among
others, the paid advertisements, EXCEPT:
 those required in the issuance of agency guidelines, rules and
regulations
 The conduct of public bidding
 The dissemination of important announcements

Additional documentary requirements


 Bill/Statement of Account
 Copy of the newspaper clippings evidencing publication and/or CD in case
of TV/radio commercial
PROCUREMENT
 Road Right-of-Way (ROW)/Real Property (Land)
 Claims for right-of-way are subject to the provision of RA No. 8974 and its IRR.
Documentary Requirements common to both Negotiated Purchase and Payment by Court Decision
 Project parcellary survey plan showing that said lot and structures are within the
boundaries of the right-of-way
 Structural Mapping Plan of the lot affected
 Certification by the implementing agency that the claim is not within the original ROW of
a converted local road
 Certification from the Head of the Implementing Office that there is no previous pending
claim and previous payment on subject property
 Environmental Clearance Certificate (ECC) as required under Section 8 of RA No. 8974
 Copy of latest updated master list of Project-Affected-Persons (PAP) approved by
Agency’s authorized representative
 In case of death of claimant or owner, judicial settlement duly advertised in a newspaper
of general circulation.
PROCUREMENT
 Road Right-of-Way (ROW)/Real Property (Land)

Additional Documentary Requirements


 For Negotiated Purchase
 Independent Appraisal Report/Regional Committee Resolution indicating the valuation of
the land. Valuation should be based on the provisions of RA No. 8974
 Applicable BIR Zonal Valuation
 Certified Photocopy of Authority/Agency Resolution to Purchase Land or Land Rights
indicating the approved/established valuations or BIR Zonal Valuations
 Deed of Absolute Sale registered with the Register of Deeds where the land is located
 Certified Photocopy of Tax Clearance from Assessor’s Office where the land is located
- Certificate Authorizing Registration (CAR)
- Capital Gains Tax (CGT)
- Documentary Stamp Tax (DST)
- Transfer Tax
PROCUREMENT
 Road Right-of-Way (ROW)/Real Property (Land)

Additional Documentary Requirements (continuation)


 For Negotiated Purchase
 If registered land:
- If whole lot is acquired, Transfer Certificate of Title (TCT) of Land Ownership
Award/Original Certificate Title certified a s true copy by the Register of Deeds
and Tax Declaration (TD) certified as true copy by the Assessor’s Office in the
name of the procuring entity or previous owner depending on the provisions of
the sale
- If portion of lot is acquired, certified photocopy of TCT and TD in the name of
the procuring entity or previous owner with annotation of sale
PROCUREMENT
 Road Right-of-Way (ROW)/Real Property (Land)

Additional Documentary Requirements (continuation)


 For Negotiated Purchase
 If unregistered land:
- Certified photocopy of TD in the name of the procuring entity or previous owner with
annotation of sale
- Notarized Affidavit of Ownership
- Certification from the City/Municipal Treasurer that the claimant is the sole entity
paying the taxes for the property for the past five years
- Notarized joint affidavit of two adjoining landowners or Barangay/Local Officials
concerned attesting to the ownership of land
- Such other documents deemed necessary for the auditorial review and in the
technical evaluation thereof
- If claim for payment or amount of sale exceeds P50,000, certified photocopy of
claimant’s Surety/Indemnity Bond issued by any Insurance Company duly accredited
by the Insurance Commission