COMMISSION ON AUDIT CIRCULAR NO.

78-70 January 11, 1978

TO : COA Office Managers; COA Regional Directors; DLGCD Region Auditors;

Provincial and City Auditors; Provincial, City, Municipal and Barangay
Treasurers; Barangay Captains; and All Others Concerned.

SUBJECT : Guidelines in the Procurement of Materials Funded Out of the DLGCD "Barangay
Improvement and Development Assistance (BIDA)".

In line with Memorandum Circular No. 78-3 dated January 9, 1978 of the Department of
Local Government and Community Development (DLGCD), the following guidelines shall be
observed in the procurement of materials funded out of the DLGCD " Barangay Improvement
and Development Assistance (BIDA)" Fund consisting of P15,000 aid per barangay for the
implementation of their development projects; viz:

1. The supplies and materials which may be procured out he P5,000 per barangay
"BIDA" fund release shall only be for the implementation of development projects
approved by the Provincial Development Officer (PDO) or the City Development
Officer (CDO)m as the case may be.

2. The usual procedure observed in the procurement of supplies and materials shall
followed, except for certain changes and modifications as herein provided.

3. Among the new forms devised is the pro-forma Barangay Council Resolution
which also serves as the bill of materials and RIV. Receipt of the original of said
duly approved resolution is sufficient authority for the Committee on Canvas and
Award to proceed with the procurement of the supplies and materials indicated
therein.

4. The Committee on Canvass and Award shall be composed of the Municipal

Development Officer (MDO) as Chairman; the ABC President and the Municipal
Coordinator (or in his absence the secretary of Sangguniang Bayan) as
members. In the case of cities, the City Development Worker (CDW) shall be the
Chairman, and the ABC President and City Development Coordinator (or in his
absence the secretary of Panglungsod) as members. In discharging his
functions as committee chairman, the MDO may request secretarial assistance
from any municipal office, including the municipal office, including the municipal
treasurer's office.

5. The usual canvass forms shall be used, except for some modifications that has
to be made in the following:

(a) Barangay Council Resolution Form shall also serve as bill of materials and
Requisition and Issue Voucher (RIV), with the back thereof embodying the
report of inspection, and the receipt of delivery. (See Attachment "A")

(b) Canvass and purchase order; (See Attachment "B")

 (c) Abstract of quotation of prices; (See Attachment "C")

6. The opening of the canvass or price quotations by the Committee on Canvass

and Award shall be witnessed by a representative of the Commission on Audit
(COA) as follows: in the case of barangays within municipalities, the Municipal
Treasurer is hereby designated as COA representative; in the case of barangays
within cities, the COA representative shall be the City Auditor.

7. After the canvass, the purchase order shall be approved by the PDO in the case
of municipalities, and the CDO in the case of cities.

8. Procured materials shall be delivered direct to project site and received by the
Barangay Treasurer, duly inspected as to quantity and specifications by the
Barangay Captain who is hereby deputized as the authorized representative of
the COA. Both the Barangay Captain and the Barangay Treasurer shall be
identified by the Municipal Development Officer, who shall invariably attest to the
signatures in the Report of Inspection by the Barangay Captain and receipt of
delivery by the Barangay Treasurer.

9. The office of the Provincial Development Officer/City Development Officer

prepares the payment voucher for procured materials upon submission of the
following by the Barangay Council thru the MDO/CD worker concerned:

(a) Approved Barangay Resolution;

(b) Canvass papers, including abstract of price quotation and purchase order
approved by the PDO and CDO;
(c) Report of Inspection by the Barangay Captain (as appearing at the back of
the Barangay Resolution);
(d) Receipt of Delivery by the Barangay Treasurer (as appearing at the back of
the Barangay Resolution);
(e) Taxpayer's Tax Certificate;
(f) BIR Tax Clearance;
(g) Approved payroll for payment of labor;
(h) Other usual accounting and auditing requirements

10. The voucher covering the payment of the procured materials shall be processed
by the PDO/CDO concerned, and in case the claim exceeds the amount of
P5,000.00 and the same shall be submitted for pre-audit to the Provincial Auditor
or the City Auditor, as the case may be. Checks exceeding P5,000.00 issued in
payment of supplies and materials covered by this Circular shall be
countersigned by the Provincial or City Auditor concerned, otherwise if the
amount is less the same shall, as usual, be countersigned by the PDO/CDO. The
DLGCD Region Auditors shall coordinate the activities of the Provincial and city
auditors within their respective regions, insofar as it concerns the use of "BIDA"
funds.

11. Each Barangay Captain who is deputized to inspect deliveries shall submit a
report to the Provincial Auditor/City Auditor concerned stating:
 (a) the name of the barangay;
(b) TW number, date, and amount of BIDA fund received: (c) Barangay Council
Resolution Number and date; (d) Amount expended for construction
materials; (e) amount expended for labor; (f) name of Barangay Treasurer
who is accountable for the materials delivered.

12. Upon receipt of the Provincial Auditor/City Auditor of the report of the Barangay
Captain as stated in the preceding paragraph, the former shall submit the same
to the DLGCD Region Auditor who shall make the consolidated report thereof by
municipality, province and region.

13. Paid vouchers, together with their supporting papers shall, as usual, be
submitted to the DLGCD Region Auditor for post-audit and final disposition.

The COA Regional Directors are hereby directed to disseminate immediately the contents of this
Circular to all Provincial and City Auditors, Provincial and City Treasurers, and the DLGCD
Region Directors within their respective regions.

(SGD.) FRANCISCO S. TANTUICO, JR., Acting Chairman