Cy2017-2018 On Procurement B652

Republic of the Philippines
COMMISSION ON AUDIT
Office of the City Auditor
City of Manila
AOM No.: 2022-285(17-18) B652

Date : 14 March 2022
AUDIT OBSERVATION MEMORANDUM (AOM)
Mr. GUILLERMO CAASI

Punong Barangay
Barangay 652, Zone 68, District V
City of Manila
Mr. GREGORIO BELLARDO

Barangay Treasurer
Subject : Audit of Procurement for Calendar Years (CYs) 2017 to 2018
The payments for goods procured by the Barangay amounting to Php1,171,005.59 for
CYs 2017 to 2018 lack the documentation prescribed in the Revised Implementing
Rules and Regulations (IRR) 2016 Revised IRR of the Republic Act (RA) No. 9184,
and COA Circular No. 2012-001 which was issued pursuant to Section 4(6) of
Presidential Decree (PD) No. 1445. This prevented us to establish the regularity and
validity of these payments.
Section 4(6) of PD No. 1445 requires that claims against government funds shall be
supported with complete documentation.
We audited the payments for goods procured by the Barangay for CYs 2017 to 2018
amounting to Php1,171,005.59 (Table 1) and noted that these payments lack the
documentation prescribed in the 2016 Revised IRR (effective 28 October 2016) of RA No.
9184 and Section 9 of COA Circular 2012-001. The lacking/deficiencies in the
documentation are listed in Annex A per payment.
Table 1. Payments for the Procurement of Goods by the Barangay in CYs 2017 to 2018
Date Check No. Payee Particulars Amount
Supplies and Materials- Clean &
Lydimel General
4/5/2017 784075 Green; Refill of Fire Extinguisher; 157,243.20
Merchandise
Trashbin w/ Roller
Supplies and Materials- Elderly;
Pagm-Prime Gen.
12/14/2017 977924 Christmas Décor; Gift Giving; Sports 337,432.32
Mdse.
Materials; Nebulizer
Supplies and Materials- Office
Lydimel General
3/9/2018 977942 Supplies, Peace & Order Supplies, 171,427.20
Merchandise
Electrical Supplies, Clean and Green
4/2/2018 977946 Lydimel General Supplies and Materials- Sports 186,789.59
Page 1 of 9
Date Check No. Payee Particulars Amount
Merchandise Materials, School Supplies
Lydimel General Supplies and Materials- Refill of Fire
6/21/2018 977964 71,889.60
Merchandise Extinguisher; Public Address System
Lydimel General Supplies and Materials- Christmas
9/25/2018 977982 19,171.20
Merchandise Décor
Lydimel General Supplies and Materials – Food Items
977985 115,786.56
10/11/2018 Merchandise for Distribution
Supplies and Materials- Other
Lydimel General
977998 Maintenance & Operating Expenses; 111,265.92
Merchandise
11/23/2018 Gift Giving Elderly
Total Php1,171,005.59
Moreover, we noted the following deficiencies which show that the Barangay failed
to ensure that it received the goods it actually intended to buy at the most advantageous
price and quality:
a. The specifications of the items procured in the bidding documents are unclear and
ambiguous terms which is contrary to Section 17.2 of the 2016 Revised IRR of RA
No. 9184.
Table 2. Details of the Procurements of the Barangay Without Minimum Specifications

Qty Unit Description of Items in Invitation to Unit Cost Total Cost
Bid (ITB) and Purchase Request (PR) (Php) (Php)
PO No. unnumbered dated 24 ovember (among others)
2 units Nebulizer 4,900.00 9,800.00
PO No. unnumbered dated 16 June 2018 (among others)

1 unit Public Address System 62,400.00 62,400.00
As gleaned from Table 2, the minimum specifications are not indicated in the PR and
ITB, thus, leaving such matter to the discretion of the contractor, such as:
 Nebulizer- dimension, wattage, nebulization rate, aerosol output, medication

capacity, among others;
 Public Address System- the components thereof, the dynamics, frequency

response, distortion, tone control, among others
The danger of not stating the minimum specifications in the procurement document is
that it would give opportunity to the contractor to deliver goods of inferior quality,
exorbitantly-priced or those that will not serve the purpose of the Barangay.
b. The following information were not indicated in the Purchase Order (PO) violating
COA Circular No. 96-010 dated 15 August 1996, prescribing the guidelines in the
preparation and submission of POs relative to the procurement of supplies and
equipment:
1) Purchase Order Number;

2) Information whether the supplier is a manufacturer or exclusive distributor;
registered with SEC, DTI or both;
3) Telephone and fax number of supplier, if any;
4) Date of delivery;
Page 2 of 9
5) Complete item name;
6) Complete detailed item specification, including accessories;
7) Brand name or the word “none” as appropriate;
8) Country of manufacture or origin of item;
9) Payment Terms;
10) Mode of procurement; and
11) Taxes paid by agency; i.e., VAT, etc. If taxes are paid by supplier, do not indicate.
This works against the interest of the Barangay because it will not be able to enforce
the procurement terms and conditions not specified in the PO.
c. Acknowledgement Receipt of the Cash paid by the Winning Bidder as a form of Bid
Security was attached to the DV instead of the prescribed Official Receipt.
The preceding deficiencies in and lack of procurement documentation prevented us to

establish the regularity and validity of these payments.
We recommend that the Barangay 652:
a. Submit without further delay the documents herein enumerated in Annex A

Official Receipt specified in para.item c;
b. Observe strictly Section 17.2 of 2016 Revised IRR of RA No. 9184 by

reflecting the necessary specifications required in the bidding documents (PR
and ITB) to meet the needs of the procuring entity in clear and unambiguous
terms; and
c. Indicate in the PO the information enumerated in COA Circular No. 96-010.
May we have your comments on the foregoing audit observation within 15 calendar
days from receipt hereof.
FRESNEL A. CAYAGO
Audit Team Leader
Team 7 – Barangay Audit
Noted by:
NOEL A. JACOB
Supervising Auditor
Proof of receipt of AOM:

Name Designation Signature Date
Guillermo Caasi Punong Barangay
Gregorio Bellardo Barangay Treasurer
Page 3 of 9
Page 4 of 9
Annex A
Barangay 652, Zone 68, District V, City of Manila

List of Unsubmitted Documents for CYs 2017 and 2018 Procurement of Goods
Date of Check Payee Particulars Amount Unsubmitted Documents

Check Number
4/5/2017 784075 Lydimel Supplies and Materials- Clean 157,243.20 1. Authenticated photocopy of the approved Annual Procurement Plan and
General & Green; Refill of Fire any amendment thereto
Merchandise Extinguisher; Trashbin w/ 2. Documents required under COA Circular No. 2009-001:
Roller a. Results of Eligibility Check/Screening
b. Bidding Documents as required under Section 17.1 of Revised
Implementing Rules and Regulations (IRR) of Republic Act (RA) No.
9184
c. Bidders Technical and Financial Proposals
d. Post Qualification Report of Technical Working Group
e. Notice of Post Qualification
f. Detailed breakdown of the Approved Budget for the Contract (ABC)
3. Copy of Advertisement of Invitation to Bid (ITB);

a. Certification from the Head of BAC Secretariat on the posting of
advertisement at conspicuous places
4. Documentary requirements under Section 23.1a and 25.2a of the Revised
IRR of RA No. 9184;
5. Printout copy of Posting of NOA, NTP and Contract of Award; and
6. Evidence of Invitation to three observers in all stages of the procurement.
12/14/2017 977924 Pagm-Prime Supplies and Materials- 337,432.32 1. Authenticated photocopy of the approved Annual Procurement Plan and
Gen. Mdse. Elderly; Christmas Décor; any amendment thereto
Gift Giving; Sports Materials; 2. Documents required under COA Circular No. 2009-001:
Nebulizer a. Results of Eligibility Check/Screening
9184
Page 5 of 9
Check Number

IRR of RA No. 9184;
3/9/2018 977942 Lydimel Supplies and Materials- 171,427.20 1. Authenticated photocopy of the approved Annual Procurement Plan and
General Office Supplies, Peace & any amendment thereto
Merchandise Order Supplies, Electrical 2. Documents required under COA Circular No. 2009-001:
Supplies, Clean and Green a. Results of Eligibility Check/Screening
9184

IRR of RA No. 9184;
General Sports Materials, School any amendment thereto
Merchandise Supplies 2. Documents required under COA Circular No. 2009-001:
a. Results of Eligibility Check/Screening
Page 6 of 9
Check Number
9184

IRR of RA No. 9184;
6/21/2018 977964 Lydimel Supplies and Materials- Refill 71,889.60 1. Authenticated photocopy of the approved Annual Procurement Plan and
General of Fire Extinguisher; Public any amendment thereto
Merchandise Address System 2. Documents required under COA Circular No. 2009-001:
9184

b. Certification from the Head of BAC Secretariat on the posting of
IRR of RA No. 9184;
General Christmas Décor any amendment thereto
Page 7 of 9
Check Number
Merchandise 2. Documents required under COA Circular No. 2009-001:
9184

c. Certification from the Head of BAC Secretariat on the posting of
IRR of RA No. 9184;
10/11/2018 977985 Lydimel Supplies and Materials – 115,786.56 1. Authenticated photocopy of the approved Annual Procurement Plan and
General Food Items for Distribution any amendment thereto
Merchandise 2. Documents required under COA Circular No. 2009-001:
9184

IRR of RA No. 9184;
Page 8 of 9
Check Number
11/23/2018 977998 Lydimel Supplies and Materials- Other 111,265.92 1. Authenticated photocopy of the approved Annual Procurement Plan and
General Maintenance & Operating any amendment thereto
Merchandise Expenses; Gift Giving Elderly 2. Documents required under COA Circular No. 2009-001:
9184

IRR of RA No. 9184;
P1,171,005.59
Page 9 of 9

Cy2017-2018 On Procurement B652

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cy2017-2018 On Procurement B652

Uploaded by

Copyright:

Available Formats

Republic of the Philippines

AOM No.: 2022-285(17-18) B652

AUDIT OBSERVATION MEMORANDUM (AOM)

Mr. GUILLERMO CAASI

Mr. GREGORIO BELLARDO

Subject : Audit of Procurement for Calendar Years (CYs) 2017 to 2018

Table 2. Details of the Procurements of the Barangay Without Minimum Specifications

PO No. unnumbered dated 16 June 2018 (among others)

 Nebulizer- dimension, wattage, nebulization rate, aerosol output, medication

 Public Address System- the components thereof, the dynamics, frequency

1) Purchase Order Number;

The preceding deficiencies in and lack of procurement documentation prevented us to

We recommend that the Barangay 652:

a. Submit without further delay the documents herein enumerated in Annex A

b. Observe strictly Section 17.2 of 2016 Revised IRR of RA No. 9184 by

c. Indicate in the PO the information enumerated in COA Circular No. 96-010.

Proof of receipt of AOM:

Barangay 652, Zone 68, District V, City of Manila

Date of Check Payee Particulars Amount Unsubmitted Documents

3. Copy of Advertisement of Invitation to Bid (ITB);

3. Copy of Advertisement of Invitation to Bid (ITB);

3. Copy of Advertisement of Invitation to Bid (ITB);

3. Copy of Advertisement of Invitation to Bid (ITB);

3. Copy of Advertisement of Invitation to Bid (ITB);

3. Copy of Advertisement of Invitation to Bid (ITB);

3. Copy of Advertisement of Invitation to Bid (ITB);

3. Copy of Advertisement of Invitation to Bid (ITB);

You might also like