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SOURCE OF PAYMENT FOR HONORARIA

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SOURCE OF PAYMENT FOR HONORARIA

Post by thenaj on Tue Jul 24, 2012 1:46 pm

ISSUE:

The Agency recently had a competitive bidding for the procurement of Janitorial Services. We did not sell any bidding documents to prospective bidders, or gained any amount incurred from the conduct of the said bidding. Our problem is where are going to source the payment of honoraria for the Chair and Member of the BAC?

According to the Budget Circular No. 2007-3 issued by the DBM states that" The amount necessary for the payment of honoraria and overtime pay authorized under BC No. 2044-5a shall be source from the following:

3.1.1 Collections from the successfully completed procurement projects limited, however to activities prior to awarding of contract to winning Bidders such as (Proceeds from sale of bidding docs, fees from contractor registry..etc)

3.1.2 Savings from the current year specific budget of agency under the General Appropriations Act (GAA)

3.1.3 In case of GOCC's, savings from the DBM-approved corporate budgets.

3.1.4 In case of LGU's savings from the local budgets approved by their respective Sangguniang..


Question:

We are not entitled from 3.1.2 because we did not sell any bidding documents or gained any amount out of the said bidding. However, can we refer to 3.1.2, the Savings derived from current year (specific budget) but problem arises because are budget is not generated from the General Appropriations Act but it is a Automatic Appropriations.

If we can refer to the said clause (3.1.2), can you enlighten as what does clause 3.3 really meant?

In the use of savings, priority shall be given to augmentation of the amounts set aside for mandatory expenditure items provides under the General Appropriations Act. It is understood that the use of agency savings for payment of honoraria and overtime pay for procurement activities shall be made only after satisfying said mandatory expenditure items.

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Re: SOURCE OF PAYMENT FOR HONORARIA

Post by RDV @ GP3i on Tue Jul 24, 2012 2:16 pm

thenaj wrote:ISSUE:

The Agency recently had a competitive bidding for the procurement of Janitorial Services. We did not sell any bidding documents to prospective bidders, or gained any amount incurred from the conduct of the said bidding. Our problem is where are going to source the payment of honoraria for the Chair and Member of the BAC?

According to the Budget Circular No. 2007-3 issued by the DBM states that" The amount necessary for the payment of honoraria and overtime pay authorized under BC No. 2044-5a shall be source from the following:

3.1.1 Collections from the successfully completed procurement projects limited, however to activities prior to awarding of contract to winning Bidders such as (Proceeds from sale of bidding docs, fees from contractor registry..etc)

3.1.2 Savings from the current year specific budget of agency under the General Appropriations Act (GAA)

3.1.3 In case of GOCC's, savings from the DBM-approved corporate budgets.

3.1.4 In case of LGU's savings from the local budgets approved by their respective Sangguniang..


Question:

We are not entitled from 3.1.2 because we did not sell any bidding documents or gained any amount out of the said bidding. However, can we refer to 3.1.2, the Savings derived from current year (specific budget) but problem arises because are budget is not generated from the General Appropriations Act but it is a Automatic Appropriations.

If we can refer to the said clause (3.1.2), can you enlighten as what does clause 3.3 really meant?

In the use of savings, priority shall be given to augmentation of the amounts set aside for mandatory expenditure items provides under the General Appropriations Act. It is understood that the use of agency savings for payment of honoraria and overtime pay for procurement activities shall be made only after satisfying said mandatory expenditure items.

You cannot use your savings from Automatic Appropriations for payment of BAC honoraria.

Regarding your question on the meaning of Clause 3.3, the General Provisions of the GAA provide for priority in the use of savings, meaning you have to provide first for mandatory expenditures before you satisfy the requirement for honoraria for BAC members.

That's the reason why the IRR of GPRA provides that the bidding documents may be sold, not only just to recover the cost of preparation, but also to discourage bidders who are not serious, and also as the main source for the payment of honoraria.

Savings should only be used to augment any deficiency.
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