Creation of an Inspection and Acceptance Committee and Prescribing the Procedures in the Acceptance or Inspection of Supplies, Properties or Equipments Delivered to the Bureau

September 1, 1981 REVENUE MEMORANDUM ORDER NO. 27-81 SUBJECT : Creation of an Inspection and Acceptance Committee and Prescribing the Procedures in the Acceptance or Inspection of Supplies, Properties or Equipments Delivered to the Bureau TO : All Internal Revenue Officers and Others Concerned In view of the withdrawal of the inspection function of the Commission on Audit on certain transactions as provided in COA Circular No. 76-26 as amended by COA Circular No. 81-26 (k) dated July 2, 1981, the primary responsibility for seeing to it that all acquisition of supplies, materials and equipments of the BIR are in accordance with existing fiscal policies, accounting and auditing regulations, shall now be lodged with the head of the agency. I. PURPOSE To institute proper internal safeguards and controls to prevent any possible irregularities or anomalous transactions in the procurement of supplies, materials and equipments as well as to insure that the correct quantity and quality as specified in the Purchase Order are delivered to the Bureau, there is hereby created a BIR Acceptance and Inspection Committee who shall take over the function previously done by COA. cdt II. ORGANIZATION A National Office Committee The Acceptance and Inspection Committee in the Central Office shall be composed of the following officials: Chairman - Chief, Fiscal Control Division or his authorized representative Members: - Chief, Property Division or his authorized representative - A representative of the Requisitioning Unit whose technical expertise may be needed to determine the acceptability of the supplies, materials, spare parts and/or equipments delivered who may be: 1. The Chief, DPC Support Services Division or his authorized representative on DPC supplies, spare parts and equipments received like continuos forms, magnetic tapes, spare parts for use in repairing the computer and other electronic equipments and the like; or cd i 2. The Chief, Maintenance Section of the General Services Division or his authorized representative for construction materials or spare parts for the air-conditioning, electrical and other equipments of the Bureau other than the computers; or 3. The Chief, Management Division or his authorized representative for the tax returns and other printed materials, forms or supplies not falling under a and b above, etc. Purchases of items whose cost are less than P1,000.00 and paid out of the cash advances of the Chief, Property Division or advanced by any official in the Central Office authorized to buy supplies/materials from their own cash advances shall be inspected by the Chief, Fiscal Control Division or his duly authorized representative only. The inspection undertaken shall be indicated in the face of the delivery receipt and the Requisition and Issue Voucher (RIV). B. Revenue Regional Office Committee The Acceptance and Inspection Committee in the Revenue Regional Offices shall operate similarly as their counterpart in the Central Office and shall be composed of the following officials: Chairman - The Assistant Revenue Regional Director or his authorized representative Members - Chief, Administrative Branch or his duly authorized representative - A representative of the Requisitioning Unit specially if the supplies, parts or equipments requisitioning are technical in nature requiring some expert knowledge of the property acquired. The Inspection Report shall be approved by the Regional Director. III. FUNCTIONS The Acceptance and Inspection Committee whether National or Regional, shall act as an independent unit and shall be responsible for the following: A. Inspect and accept all deliveries of the following items whose cost as shown in the Purchase Order/Letter Order/Contract/Job Order are not subject to pre-audit/inspection by the Commission on Audit: 1. Consummable items such as printed forms, office supplies, accounting forms, motor vehicle fuel, tires, lubricants, batteries, spare parts, construction materials, medical supplies, ammunition, electricity, gas, water and other expendable property normally consumed within one (1) year after being put to use, or converted in the process of manufacture or construction whose value is P20,000.00 or less; 2. Non-consummable items such as office equipments, furnitures and other fixed assets whose value is P40,000.00 or less. B. Ascertain that the particular delivery conforms with the specification/s called for in the Purchase Order/Letter Order/Contract/Job Order and other documents. C. Cause the testing of the supplies, pre-printed continuous forms for use by DPC, spare parts for the electronic equipments, etc. in order to determine its fitness and/or quality. For example, whenever there is a need to determine the quality of paper used, the same shall be referred to the National Institute of Science and Technology for testing or manually computed in accordance with the provisions of the Manual on Property Inspection published by COA. D. Prepare and submit an inspection report to the Revenue Service Chief or Asst. Revenue Service Chief (Personnel and Administrative) for approval. acd IV. REPEALING CLAUSE Any existing orders or provisions thereof which are inconsistent or contrary to this Order are hereby revoked or modified accordingly. V. EFFECTIVITY This Order takes effect upon approval hereof. RUBEN B. ANCHETA Acting Commissioner