Policies and Guidelines in the Requisitioning and Procurement of Equipment and Semi-expendable Property

July 5, 1999 REVENUE MEMORANDUM ORDER NO. 54-99 SUBJECT : Policies and Guidelines in the Requisitioning and Procurement of Equipment and Semi-expendable Property TO : All Assistant Commissioners, Regional Directors, Revenue District Officers and Others Concerned I. OBJECTIVE This Revenue Memorandum Order is issued to prescribe the policies and guidelines in the requisitioning and procurement of equipment and semi-expendable property. II. DEFINITION OF TERMS A. Equipment is any property, other than land, structures and fixed facilities, having a useful life greater than a year, the cost of which amounts to P10,000 or more and which when used does not suffer any material or substantial change or alteration in size or form. B. Semi-expendable property refers to semi-expendable supplies and property which are used in government operations having a value of less than P10,000 but with life expectancy of more than one (1) year. Examples are furniture, fixtures, equipment, books including printed and audio visual materials; semi-expendable Information Technology (IT) supplies, accessories, peripherals, and property, all costing below P10,000 per unit of item. III. GENERAL POLICIES AND GUIDELINES A. Requisitions for, and purchase of equipment and semi-expendable property shall be limited to items that are considered very necessary and urgently needed in the performance of the functions of the Bureau and those that will contribute to the increased productivity and efficiency of the organizational unit concerned, subject to availability of funds. B. All requisitions for equipment and semi-expendable property shall be submitted to the General Services Division (GSD) except for semi-expendable property that may be purchased directly by the regional offices with the funds released to them for Maintenance and Other Operating Expenses (MOOE). C. The optimum utilization of existing equipment shall be a precondition for the purchase of additional items. The practice of sharing equipment such as copying machines, typewriters, printers and similar type of equipment shall be adopted. Likewise, the repair and rehabilitation of existing equipment and semi-expendable property shall be considered as an alternative for the procurement of new items. D. Requisitions and/or requests to replace unserviceable equipment and semi-expendable property shall be given priority over the purchase of additional items. E. Requisitions for airconditioning equipment intended for BIR-owned buildings shall have priority over those for leased buildings and offices. F. Requisitions and/or requests for equipment and semi-expendable property which do not meet the general policies and guidelines contained in this Revenue Memorandum Order shall be returned without action to the requisitioning/requesting office or unit. IV. RESPONSIBILITIES A. Requisitioning Office/Unit 1. Support all proposals for replacement of unserviceable property by an Inventory and Inspection Report of Unserviceable Property, duly signed by the Head of Office concerned. dctai In case of computers and printers declared as unserviceable, further verification and confirmation of their unserviceability by the Information Systems Group technicians shall first be obtained before the same items are surrendered to the GSD. 2. Submit all requisitions for new equipment and semi-expendable property to GSD accompanied by an Inventory of Similar Equipment, duly certified by the Head of Unit concerned. 3. Indicate the specific office/unit where the item(s) will be deployed and/or assigned and the specific user(s) of the requested item(s) for all requisitions, whether for replacement items or additional items. 4. Submit other relevant information that will establish the necessity for the requested item(s) of equipment and semi-expendable property, such as: The approved project/activity where the equipment and/or semi-expendable property will be utilized, Volume of workload involving equipment/property, Labor and other cost savings that may be derived from the use of the equipment and/or property, etc. B. General Services Division 1. If stocks are available, fill the requisition from items procured beforehand using as basis the approved List of Property for Distribution. 2. If no stocks are available: Course the requisition to the Assistant Commissioner and/or Head Revenue Executive Assistant, both of the Financial & Administrative Service, for determination whether or not funds may be made available therefor. C. Procurement Division 1. Receive the approved RIV from the FAS. 2. Execute the order or contract for the procurement of the item. D. Regional Office In case of direct purchase of semi-expendable property: 1. Charge said purchase against the funds released to them for MOOE. 2. Take up such purchase as an expense under the proper account. 3. Ensure that semi-expendable property issued for official use of revenue personnel are covered by Memorandum Receipt for purposes of control and accountability. LibLex E. Financial and Administrative Service 1. Determine availability of fund for the proposed procurement. 2. Approve the RIV. V. REPEALING CLAUSE All revenue memorandum orders and circulars inconsistent herewith are hereby amended/modified accordingly. VI. EFFECTIVITY This Revenue Memorandum Order shall take effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue