Republic of the Philippines
Department of Social Welfare and Development
IBP Road, Batasan Pambansa Complex, Constitution Hills, Quezon City 1126
Telephone Nos. (632) 931-8101 to 07; Telefax (632) 931-8191
e-mail: ,(. d d 9" ~
Website: tpw dswcl (j v ph
MEMORANDM CIRCULAR
No. 19
Series of 2009
SUBJECT: AMENDED GUIDELINES ON DSWD INSPECTION COMMITTEE
I. RATIONALE
The Commission on Audit (COA) Circular No. 95-006 dated 18 May 1995 provides
that inspection of COA is no longer a prerequisite neither for acceptance nor for
payment. Hence, pre-audit activities are considered part of the accounting and
fiscal control processes of every government agency.
Inspection as defined by COA in its Procurement and Supply Management
System is the examination or testing of supplies and services including raw
materials and components to determine whether the supplies and services
conform to contract requirements, such as but not limited to applicable drawings,
specifications and purchase description.
The Inspection and Acceptance Committee (lAC) was created in 1992 as an
internal control system of the Department under the principle of check and
balance. It was strengthened in 1995 to pursue the mandate of the aforesaid COA
Circular. By virtue of Department Order (D.O.) No. 05 series of 2000, the
inspection and acceptance functions of the lAC were segregated for better
responsiveness and check and balance as well as to involve the requisitioning
end-user in the process, thus renaming the lAC Inspection Committee (IC).
The acceptance function is lodged with the requisitioning officer I end-user in case
of direct purchases or the property officer in case of procurements for agency's
provision to replenish stock pursuant to Paragraph c of Section 465 under Article
16 of Volume I Government Accounting and Auditing Manual (GAAM) which states
that:
"All items to be inspected shall invariably be accepted first by the
requisitioning or properly officer."
Over the years, there has been a need to refine existing internal control system
including inspection, hence these amended guidelines.
II. LEGAL BASES
1. Memorandum dated 21 April 2002 signed by Undersecretary Luwalhati F.
Pablo reconstructing the DSWD Inspection Committee to be composed of two
teams.
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2. Memorandum dated 31 May 2000 signed by Undersecretary Luwalhati F.
Pablo on the guidelines in the conduct of acceptance and inspection of goods
as prescribed in D.O. NO.5 series of 2000.
3. Department Order No. 07 series of 2000 - implementing rules and
regulations on COA Circular No. 95-006 dated 21 June 2000 signed by then
Vice President and DSWD Secretary Gloria M. Arroyo.
4. Department Order No. 05 s. 2000 - amending Department Order No. 09 s.
1992 renaming the lAC to Inspection Committee dated 10 May 2000 signed by
then Vice President and DSWD Secretary Gloria M. Arroyo.
5. COA Circular No. 95-006 - total lifting of pre-audit on all financial transactions
of the National Government agencies, government-owned and/or- controlled
corporations and local government units dated 18 May 1995.
6. Department Order No. 10 s. 1995 - strengthening the DSWD Inspection and
Acceptance Committee signed by then Acting Secretary Lina B. Laigo dated 10
May 1995.
7. Department Order No. 009 s. 1992 - creation of an Inspection and
Acceptance Committee (lAC) signed by then Secretary Mita Pardo De Tavera.
III. OBJECTIVE
To amend previous guidelines in order to provide specific guidance in the
implementation of pre/post repair evaluation and inspection of supplies, materials,
equipments, vehicles and services rendered towards achieving economic
efficiency and effectiveness in the management and utilization of the Department's
resources.
IV. COVERAGE
These guidelines shall cover the Department's Central and Field Offices.
V. COMPOSITION AND TERMS OF THE INSPECTION COMMITTEE
The Head of the Agency/Field Office shall designate an Inspection Committee that
shall be under the technical supervision of the Director of CO-Administrative
Service/Chief of FO-Management Division through a Special Order to be
composed of the following:
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1. Chairperson
The Chairperson of the IC shall be a second level employee of the Department
under permanent status who shall be responsible on the assignments of the
inspector(s) and in the approval of their findings/recommendations.
2. Permanent Members
2.1 The IC shall have at least three (3) or more than permanent members,
exclusive of the Chair. One of whom shall be designated as the alternate
chair and another as the 2nd alternate chair to ensure no delay in the
inspection service.
2.2. The members of the IC shall be first and second level employees under
permanent status selected from the different clusters of the DepartmenU
Field Office for their expertise and technical knowledge related to office
equipmenUsupplies/materials, printing, radio communication, motor
vehicles, and construction materials.
2.2 They shall perform the functions enumerated In Section VI of these
guidelines.
2.3 Their permanence and availability are crucial to ensure no delay in the
inspection of supplies and materials delivered.
3. Provisional Member
The designated supply officer (DSO) of the Offices/Bureaus/Services/Units
(OBSUs) shall be automatically included as provisional member of the IC to
ensure that the items procured/delivered meet the specifications of the
requesting unit.
4. Terms and Conditions
The Chairman and all members of the Committee:
4.1 Shall have a two-year term reckoned from the date of designation,
renewable at the discretion of the Head of the Agency or his/her
designated authority;
4.2 Should not be a staff or member of the Bids and Awards Committee (BAC)
and its Secretariat, Property Disposal and Awards Committee (PDAC),
Finance Service, Internal Audit Service, Legislative and Liaison Office,
Donations Facilitation Office, Property and Procurement Divisions;
4.3 Should not have administrative and/or criminal case; and
4.4 Should be willing to work overtime when services are needed.
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5. Secretariat
The CO-Administrative Service / FO-Management Division shall provide an
office and personnel for the IC Secretariat who shall be responsible in ensuring
the facilitation and tracking of the requests for inspection.
VI. FUNCTIONS OF THE INSPECTION COMMITTEE
The IC shall perform the following functions:
1. Check the completeness and authenticity of supporting documents upon
receipt of the request for inspection.
2. Proceed to delivery site and conduct inspection and testing procedures when
necessary.
3. Inspect prior to payment the goods bought by the Department to ensure that
such goods to be paid are in accordance with the specifications.
4. Inspect goods donated to the Department.
5. Inspect consumable and perishable items.
6. Act as pre/post-repair evaluators and as the "authorized/property inspectors" of
the Department.
7. Ensure that the necessary inspection procedures are done with transparency
and in accordance with generally-acceptable accounting and auditing
principles including the involvement of COA or other outside experts when the
need calls for it.
8. Submit the inspection report to the COA Auditor within 24 hours from
inspection of the items delivered (COA Circular 95-006)
9. Issue a formal report addressed to the Head of the Agency in case material
finding/s arise in the inspection.
10. Do other related tasks to ensure that the objectives of relevant guidelines and
orders are realized.
VII. IMPLEMENTING GUIDELINES
The IC shall be guided by the following:
1. Inspection shall be undertaken by the authorized inspector(s) of the agency.
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2. All items to be inspected must be accepted first by the requ'sitioning or ~
property or procurement officer pursuant to the provisions of GAA Volume I.
3. All inspection of goods/supplies and services shall be conducted in the most
economical and expeditious manner consistent with the best in erest of the
government and shall conform to the provision of applicable accounting and
auditing regulations and standards, sampling procedures (statistical). quality
control procedures, policies relating to uniform method of interpreting
specifications.
4. Inspection involves the presentation of the following to the IC:
4.1 Approved request for inspection from the Property/Procurement Officer;
4.2 Duly signed Certificate of Acceptance;
4.3 A properly executed RIS which indicates the description of the item/s
quantity, specifications, among others, duly signed by the authorized
supervisor of the OBSU and approved by the authorized signatory;
4.4 Approved Contract or Purchase/letter Order (PO/lO);
4.5 The item/s that was/were purchased;
4.6 Invoices, Delivery Receipts and other documentations from the supplier;
4.7 Other documents specified in the contract necessary to determine
conformance with specifications; and
4.8 Duly accomplished report of waste materials, whenever applicable.
5. The IC undertakes inspection together with the requesting/accepting party or
end-user as observer by verifying/confirming if the supplies and materials
presented are in accordance with the specifications of the requisitioning unit in
terms of:
5.1 Description of the item/s as indicated in the RIS;
5.2 Specifications and condition/functional performance;
5.3 Quantity; and
5.4 Price.
6. Supplies or property tested and found to be in accordance with the required
specifications shall be accepted. However, where there is a trend of shortage
in quantity, deficiency or defectiveness in quality as established, the inspector
may recommend rejection of the goods.
7. For transactions involving purchases amounting to less than fifteen thousand
pesos (Php15,OOO.OO) per PO/lO, inspection can be undertaken by any
permanent member of the IC to be noted by the Chair or the alternate Chair in
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his absence. This will be accomplished by noting his findings and writing
"Inspected" on the invoice, or in it stead, the Delivery Receipt, of the supplier
followed by the signature over the printed name of the inspector and the date
of inspection.
8. Transactions exceeding fifteen thousand pesos per PO/lO (which needs to be
canvassed pursuant to DSWD Memorandum Circular NO.2 Series of 2007 and
to Auditing Requirements for Typical Government Disbursement) need at least
two signatures, namely: one permanent member plus the chairperson or the
vice-chair using the prescribed forms (Annex "A")
9. Inspection of non-consumable items such as purchase or repair of equipment,
vehicles, printed materials subcontracting of various services among others
shall be guided by the following:
9.1 Two permanent members of the IC together with the provisional member
shall undertake the inspection of the itemls to verify if the said itemls
delivered meet the specifications indicated in the RIS, PO/lO.
9.2 The permanent members shall prepare the report with the concurrence of
the provisional member and the approval of the chairman or the vice chair.
9.3 The report shall then be submitted to the COA Auditor within twenty-four
(24) hours from the inspection of the itemls delivered.
10. Report of inspection of all consumables shall be submitted to the COA Auditor
within 24 hours.
11. The IC report is a pre-requisite to the payment of all transactions involving
procurement of materials, supplies and services.
12. Final acceptance and payment of the transaction shall be based on its full
compliance with respect to price, quantity, quality and all other specifications.
VIII. EFFECTIVITY
This Circular shall take effect immediately and repeals or modifies all other
issuances contrary to it.
Done in Quezon City this If IL day of July 2009
. 7lif-/ofM.D.
E ERANZA I. CA~RAL,
ecretary y
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In Replying Please Cite: R0000013314
