PROCUREMENT | Allowed ba ang LGU na gamitin ang savings from ABC [bidding] sa honorarium ng BAC members and its TWG?
Hi. Allowed po ba ang LGU na gamitin ang savings from ABC [bidding] sa honorarium ng BAC members and its TWG?
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DBM Budget Circular No. 2007-3 identifies the following as the allowable source of funds to pay the honoraria of the members of Bids and Awards Committee (BAC), BAC Secretariat, and BAC Technical Working Group (TWG), viz:
3.1 The amount necessary for payment of honoraria and overtime pay authorized under BC No. 2004-5A dated October 7, 2005 shall be sourced from the following:
3.1.1 Collections from successfully completed procurement projects limited, however, to activities prior to awarding of contracts to winning bidders:
• Proceeds from sale of bid documents;
• Fees from contractor/supplier registry;
• Fees charged for copies of minutes of bid openings, BAC
resolutions and other BAC documents;
• Protest fees; and,
• Proceeds from bid security forfeiture.
3.1.2 Savings realized from the current year specific budget of the agency under the General Appropriations Act (GAA).
3.1.3 In the case of GOCCs, savings from the DBM-approved corporate operating budgets.
3.1.4 In the case of LGUs, savings from the local budgets approved by their respective Sanggunian subject to the pertinent provisions of R.A. 7160 (Local Government Code of 1991).
The savings being refered to above pertains to portions or balances of agencies’ budgets as referred to in items 3.1.2, 3.1.3 and 3.1.4, free from any obligation of encumbrance which are:
3.2.1 still available after the completion or final discontinuance or abandonment of the work, activity or purpose for which the appropriation is authorized;
3.2.2 arising from unpaid compensation and related costs pertaining to vacant positions and leaves of absences without pay; and,
3.2.3 realized from the implementation of collective negotiation agreements which resulted in improved systems and efficiencies and thus enabled an agency to meet and deliver the required or planned targets, programs and services at lesser cost.
3.3 In the use of savings, priority shall be given to augmentation of the amounts set aside for mandatory expenditure items provided under the General Provisions of the General Appropriations Act (GAA). 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.
3.4 The manner of payment of honoraria and overtime pay to entitled government personnel to be charged against collections from successfully completed procurement projects (activities prior to awarding of contracts to winning bidders) enumerated under item 6.1.1 and savings cited under item 6.2 shall be in accordance with item 6.5, except use of savings by national government agencies which shall follow the General Provision of the GAA on the disbursement of funds, i.e., through the National Treasury and/or authorized servicing banks under the Modified Disbursement Scheme.
3.5 In cases of deficiency in collections from procurement activities and non- availability of agency savings, the amount of honoraria and overtime pay shall be adjusted proportionately for all those entitled thereto.
Thus, to answer the question, the LGU concerned is allowed to use its savings, provided the same satisfies the definition of savings as provided for in the guidelines, and as approved by its Sanggunian subject to the pertinent provisions of R.A. 7160 (Local Government Code of 1991).