Findings No.11 COA Annual Audit Report 2005

July 25, 2008

11. The agency failed to prepare an Annual Procurement Program due to the failure of some department heads to submit Procurement Management Plan, violative with the pertinent provisions of the IRR of RA 9184.

Section 7.1 of the IRR Part A of Republic Act 9184 provides that: “All procurement should be within the approved budget of the procuring entity and should be meticulously and judiciously planned by the procuring entity concerned. No government procurement shall be undertaken unless it is in accordance with an approved Annual Procurement Program (APP). X-x-x-x

The annual procurement program thus prepared may be supplemented at anytime during the year to take care of additional supplies requirement for which additional funds are to be earmarked. Summing it up, this is to say that the Government must anticipate its annual supply needs and requirements as an essential phase of its procurement system.

For the year in review, procurement of supplies and materials were not consolidated nor made quarterly as required by law, rules and regulations. It was made as frequent as possible or whenever the need to procure arises. The deficiency could be attributed to the failure of department heads to prepare and submit Project Management Plan for the BAC Secretariat to consolidate and come up with an Annual Procurement Program (APP). This practice of procurement is uneconomical in terms of time, efforts and resources since it was being made as frequently as possible. It does not allow control measures to be in place since purchases were not coursed through the inventory account, but directly treated as an expense.

During the exit conference, the City Administrator promised to take the matter to the City Mayor.

Recommendations

Take positive steps to ensure the submission of an Annual Procurement Plan. Under the IIR of RA 9184 the preparation and updating of an Annual Procurement Program (APP) for its procurement, that shall include, for each individual project, a Project Procurement Management Plan (PPMP) shall be the responsibility of the respective Project Management Offices (PMOs) or end-user units of the city, while the consolidation of these PPMPs into an APP shall be lodged with the BAC Secretariat.

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Written by admin · Filed Under Commission on Audit, Iligan City