SEVEN (7) BASIC PROCUREMENT/DISBURSEMENT RULES EVERY ACCOUNTANT AND BUDGET OFFICER SHOULD REMEMBER TO AVOID BEING SUED LATER ON

1. As a general rule, Competitive Bidding is the general method of procurement. Alternative Methods of procurement shall be resorted to only in highly exceptional cases as provided in the procurement law. (See Section 48, Rule XVI of RA 9184)

2. All suppliers are required to register with the PhilGEPS. Registration with PhilGEPS is absolute, and must be complied with regardless of the cost of procurement. (See Section 8.5.1 of IRR of RA 9184, and NPM 34-2013 of the GPPB)

3. The Chief Accountant or Head of the Provincial/City/Municipal Accounting Office and his/her staff is prohibited from becoming a member of the Bids and Awards Committee (BAC), unless the Accounting Department is the end-user unit, in which case the Chief Accountant, Head of the Accounting Department or his/her staff may be designated as an end-user member. (See COA Circular Letter No. 2004-3)

4. No government Procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan (APP) of the Procuring Entity. (See Section 8, Article II, IRR of RA 9184)

5. No funds shall be disbursed, and no expenditures or obligations chargeable against any authorized allotment shall be incurred or authorized unless the Chief Accountant or head of accounting unit issues certification of availability of funds. Any certification for a non-existent or fictitious obligation and/or creditor shall be considered void. The certifying official shall be dismissed from the service, without prejudice to criminal prosecution under the provisions of the Revised Penal Code. (See Section 37, Chapter 2, GAM for NGAs)

6. No money shall be paid out of any public treasury or depository (i.e., national and local government) except in pursuance of an appropriation law or other specific statutory authority. (See Section 4, P.D No. 1445)

7. Government funds, whether local or government funds or property, shall be spent solely for public purposes. (See Section 4, P.D No. 1445)

Additional Readings: Copies of Supreme Court decisions relating to Procurement

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