Professional Documents
Culture Documents
Dear Sir:
We have audited the disbursement for the rental of venue (World Trade Center Metro Manila)
for the IFEX Philippines 2017, covered by DV No. IFEX-17010014 amounting to P3,399,372.96
which represents 40% (initial payment) of the total hiring charges being paid to Manila
Exposition Complex, Inc.
1. The subject contract and its supporting documents were not submitted to our office within five
(5) working days after their execution as required under COA Circular 2009-001dated Feb.
12, 2009.
In our previous AOM (AOM No. 2017-01-(16) dated Feb. 6, 2017) citing the same
circular, we required the CITEM management to submit to COA team the perfected contract
along with the required supporting documents within 5 working days upon its execution for
our auditorial review of the said contract. Based on our listing of the submitted contract, we
noted that the contract attached to the subject disbursement voucher was not submitted after
it has been executed. Nevertheless, by auditing the said DV, we simultaneously conducted
an auditorial review of the said contract and notice the following:
a. The contract is not duly supported by Certificate of Availability of Funds and not duly
witness by Chief Accountant in violation of Section 86 of PD 1445, LOI No. 968 and
Section 46 of PD 1177.
Section 86 of PD 1445.
Section 87 of the same law further provides that any contract entered into
contrary to the abovementioned requirement shall be void and the officer or
officers entering into the contract shall be liable to the government or other
contracting party for any consequent damage to the same extent as if the
transaction had been wholly between private parties.
LOI No. 968, ensuring that contracts are signed only when supported by
available funds, provides that “All contracts for capital projects and for the supply
of commodities and services, including equipment, maintenance contracts, and
other agreements requiring payment which are chargeable to agency current
operating or capital expenditure funds, shall be signed by agency heads or other
duly authorized official only when there are available funds. The Chief
Accountant of the contracting agency shall sign such contracts as witness
and contracts without such witness shall be considered as null and void”.
a. The DV and/or contract is not supported by approved APP, thus the provision under
Sec. 7.2 of the Revised IRR of RA 9184, Section 9.2 of COA Circular 2012-001 and
Section 5.4 of Annex A of GPPB Resolution No. 08-2009 were not satisfied.
“The Annual Procurement Plan of the procuring entity shall reflect the
proposed lease of real estate or venue specifying the approved mode of
procurement, the ABC, and the general description of the lease”.
b. Proof that posting requirements to PhilGEPS are satisfied is not attached to the
subject DV.
“ All lease contracts with ABCs costing more than P50,000.00 shall be posted in
the PhilGEPS”. (Annex A of GPPB Resolution 08-2009 dated Nov. 3, 2009)
“ The BAC through its Secretariat shall post the Notice of Award (NOA),
Contract/PO, including the Notice to Proceed (NTP) if necessary, for information
purposes, in the PhilGEPS Website, the website of the Procuring Entity
concerned, if available, and at any conspicuous place reserved for this purpose
in the premises of the Procuring Entity within 10 days from their issuance, except
for contracts with ABC of P50,000 and below.” (Annex H of revised IRR of RA
9184, IV. General Guidelines, L. (2). Notice of Award; Contract Approval; Notice
to Proceed)
Except for the snapshot of Award Notice from the CITEM Website, there is no
attached proof that the other requirements were satisfied.
1. Request for Quotation in which the BAC shall indicate at what stage of the
procurement process these requirements must be submitted, i.e., submission
of offer/s, evaluation of offer/s, before issuance of NOA or prior to payment.
3. Market Analysis of the prevailing rates of lease contracts within the vicinity of
the selected location/s in which the Approved Budget for the Contract (ABC)
shall be set using the midpoint of the range obtained from the results of that
market analysis. (GPPB Resolution No. 08-2009 dated Nov. 3, 2009)
5. Sworn affidavit of the bidder that it is not related to the Head of Procuring
Entity (HoPE) by consanguinity or affinity up to the third civil degree (Sec. 47,
R-IRR of RA 9184; Section 9.2 of COA Circular 2012-001)
May we have your comments on the foregoing audit observations within fifteen (15)
calendar days from receipt hereof. Early submission of the lacking documents to continue
our audit for this transaction will be appreciated.
CHONA U. GABRONINO
State Auditor IV
Audit Team Leader