RMO No. 29-2020 — Prescribes the guidelines and procedures in the conduct of Pre-Repair Inspection and Inspection and Acceptance of Delivered Goods and Services, Infrastructure Projects and Consulting Services in the BIR Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENTOF FINANCE BUREAU OF INTERNAT REVENUE Quezon City August 14,2020 REVENUE MEMORAI{DUM ORDER N[O. 2q- lo?n SUBJECT : Prescribing the Guidelines and Procedures in the Conduct of Pre-Repair Inspection and Inspection and Acceptance of Delivered Goods and Services, Infrastructure Projects and Consulting Services in the Bureau of Internal R.svenue TO : Alt lnternal Revenue Officials, Emptroyees and Other:s Concerned BACKGROUND Revenue iVlemorandum Order No. 19,-2013 was issued to, among others, split the National Office Inspection and Acceptance Committee (lAC) into two (2) separate committees, the Inspection Comrnittee urd flr. Acceptance Commiffee. This was done primarily to strengthen check and balance in the conduct of inspection and acceptance ofdelivered goods and services. In furtherance thereof, splitting ofthe Regional IAC and adoption of parallel guidelines and procedures with that of the National Office is necessary. I. OBJECTIVES A. To amend pertinent provisions of Revenue Memorandum Order No . 45' 201I dated October 26,2011, as amended. B. To split the tnspection and Acceptance Committee (lAC) into separate committees namely: 1. Inspection Committee (lC) 2. Acceptance Comrnittee (AC) C. To institute proper internal safeguards and controls on deliveries. D. To determise the necessity andlor extent of repair / rehabilitation / renovation and work to be done on IT and non-lT equipment, building facilities and vehicles as well as the replacament of parts thereof. E,. To ensure that the correct quantity and quality of goods / services rendered as specified in the Purchase Order (pO) i Job Order (JO) /Agency Procurement Request (APR) / Request for Printing and Binding (RpB) and Contract and other documents are delivered, inspected, verified and found in order. F. To define and delineate the duties and respoqsibilities of different Offrces involved' G. To ensure timely submission of comgrlete supporting documents relevant to the preparation of the Inspection and Acceptance Report (IAR)' 'H. To ensure compliance with COA circulars and memoranda corresponding to inspection and acceptance of deliveries of Goods and Services. BUREAU OF INTERNAL REVE NUE W JM m R ECORDS MGT. DIV ls to}N

II. SCOPE A. Goods and Services l. Irrformation Technology/Infrastruclure deliverables such as but not limited to the following: o Software Licenses / Contracts / Certificates . Hardware / Equipment r Reports o Manuals o Systems Documentation . Application / SYstem Software o IT Related Service 2. Non-IT deliverables such as but nc,t limited to the following: r Equipment o Supplies o Spare Parts o Construction Materials 3. Vehicles 4. Building Facilities 5. Services Rendered B. InfrastructureProjects 1. Building Construction 2. Repair/Rehabilitition/Renovation o1' Building Facilities (major) C. Consulting Services l. Management Services 2. IT Related Services III. Onganization A. National Office The Inspection Committee and the Acceptance Committee in the National Office shall be composed of the following officials: 1. InspectionCommittee w Chairperson : Assistant Commissioner, Internal Affairs Service (IAS) Vice-Chairperson : HREA, IAS Members * : o Chief, Procurement Division (Proc Div.) o Chief, General Services Division (GSD)

o Two (2) Representatives fiom Information Systems Group (lSG) o One (1) Representative from lnternal lnvestigation Division (IlD) o Other Members to be recommended by the Chairperson, Inspection Committee, and approved by the Commissioner of Internal Revenue (CIR) Secret ariat As recommended by the Chairperson, Inspection Committee and approved by the CIR 2. Acceptance Committee Chairperson Chief, Froperfy Division Co-Chairperson Chief, Network Management and Technical Support Division (NMTSD) Vice Chairperson Co-Vice Chairperson Assistanl: Chief, Property Div ision Chief, Computer Operations Network and Engineering Division, National Office Data Center (CONED-NODC) Members: o Chief, Warehousing and Distribution Section Property Division o Chief, Technical Support Section, NMTSD o Chief, Technical Support Section Revenue Data Center (RDC) o Additional members to tre recommended by the Chairperson, Acceptance Committee, and approved by the CIR Secret ariat : As recontmended by the Chairperson, Acceptance Committee and approved by the CIR B. Regional Oflice The Inspection Committee and Acceptance Committee in the Regional Office (RO) shall operate similarly as their counterpart in the NO and shall be composed of the following officials: 1. Inspection Committee Chairperson : Chief, Regional Investigation Division (RID) Vice-Chairperson : Assistant Chiel RID Members : o Assistant Chief, Collectirxr Division o 2 members to be recommended by the Chairperson, Inspection Committee and approved by the Regional Director Secret ariat As recornmended by the Chairperson, Inspection Committee and approved by the Regional Director 2. Acceptance Committee Chairperson Chief, Administrative & Human Resource Management Division (AHRMD) Vice-Chairpersorl Assistant Chief, AHRMD Members . Section Chief, General Services Section IN]TffiLIriT NUNEAIJ t)F INI ERNAL RfV i:tuUL \[ Jlil(Jll\\sIEM[ egf2f0i-20dILn) ii R E C 0l'( l-i *t irrt t. tilvts rt.)N

a Section Chiei Procurement, Accountable Forms & Property Section o Additional members t,r be recommended by the Chairperson, Acceptance Committee, and approved by the Rerg;ional Director Secret ariat : As recontmended by the Chairpersr:'n, Acceptance Committee and approved by the Regional Director C. Sub-Committee For far-flung/remote areas which covdrs Island District Offices and District Offices requiring travel by land of 200 kilometers distance or at least four (4) hours continuous travel from Regional Offices. 1. Inspection Sub-Committee Chairperson : Asst. Revenue District Officer Members a o Section Chief Collection liection o Section Chief Assessment Section o Other member to be recommended by the Chairperson, Inspection Sub-Cornmittee and approved by the Regional Director Secret afiat : As recommended by the ChairPerson, Inspection Sub-Committee and approved by the Regional Director 2. Acceptance Sub-Committee Chairperson : Revenue District Officer Members : o Chief, Administrative Section o Additional members to be recommended by the Chairperson, Acceptance Sub-Committee, and approved by the Regional Director 'secretariat : As recommended by the Chairperson, Acceptance Sub-Commiffee and approved by the Regional Director IV. Guidetrines and Policies The following guidelines and policies shall be observed in carrying out the activities pursuant to this Order. A. Inspection Committee 1. The IC shall act as an independent unit. 2. In the absence of official properly designated in the plantilla position of the abovementioned offices the Commissioner/Regional Director may appoint any official of the same or next lower rank/level who shall act as IC Chtirperson/Member until such time that an official shall have been officially designated. ffi-INTERNALR EVENUE W lI] ilf r JD RECORDS MG-[, Dtv l$i0f'l

Ja. In case of prolonged absences of the Chairperson or any member, they shall designate their authorized representatives, not lower than the next in rank position/item than that to be represented, duly approved by the Commissioner/ Regional Director. 4. Propefi inspection is an auditing technique which aids the Property Inspector in his constitutional duty to examine, audit and settle all accounts pertaining to the expenditures of funds and/or uses of properly. It requires the Inspector no less than an ocular verification of the existence and condition of ihe property under inspection. It provides an ample safeguard against attempts of suppliers or contractors to defraud the Government thru short or substandard deliveries or projects. (Sec. l- COA Manual of Property Inspection 1979). 4.1. Pre-Repair Inspection 4.1.1. Pre-Repair Inspection shallbe conducted on IT and non-lT equipment, vehicles and building facilities requested for repair / rehabilitation / renovation/ replacement of uniVparts by concerned offices ofthe rlureau. 4.1.2. Pre-Repair inspection shall be conducted only upon receipt of duly accomplished Request for Pre-Repair Inspectio;t (Annex 'oA") from the concerned offices of the Bureau. The request shall be accompanied by a picture ofthe facility/equipment to be replaced/repaired. (COA Circular No. 2012-001 dated June 14, 2012). 4.1.3. Requisitioning unit/office shall prepare Request for Pre-Repair Inspectiou and Purchase Request except in cases involving repair / rehabilitation / renovation/ replacement of uniVparts which shall be prepared by concerned offices of the Bureau. However, for island districts the Request for Pre-Repair Inspection and Purchase Request shall be prepared by the Adrninistrative Section (RDO). 4.1.4. The IC and Sub-committee shall conduct actual pre-repair inspection and sign the Pre- Repair lnspection document (Annex ooA"). 4.1.5. Procurement Division (NO) /Collection Division (RIt) /Collection Section (RDO) shall check whether cost of repair is economical or not (rrot greater than 30o/o of the current market price) (COA Circular No.85-55A). 4.2. Inspection of Deliveries 4.2.1. Actual inspection shall be conducted only upon receipt of duly accomplished Request for Inspection (Annex "8") from Chief, Property Division (PropD) (NOy Chief, AHRMD (RR)/ Section Chief, Administrative Section (AdmS) (RDO) or concerned project proponent. For the procurement ofgoods (services) and infrastructure projects, pictures (if applicable) of the completed work shall be attached. 4.2.2. Inspection shall be conducted only on delivelies of goods and services renderedthat are properly receipted for ano accepted by concerned Property/Supply Offrcer and other concerned offices. INTHtrNAL REVENUE v' 07 2029

4.2.3. Inspection should be made. as a general rule, in the site specified in the order, afterthe deliveries have been duly received by the Bureau. Uncler no circumstances shall inspection be conducted in the premises of the supplier. Exceptionaltransaction shall be covered by a Memorandum of Agreement (MOA) between the Bureau and the supplier as approved by the Commission on Audit (COA). 4.2.4. Inspection and Acceptance Report (IAR) (Annex "C") must state the items actually inspected and conclusive remarks on findings and recommendation relative to inspection conducted. In case of deviation, the concerned proponent shall prepare a certification indicating the justification relative to the inspected goods/services which do not conform with the approved specifications subject f<rr approval of the one who signed the POiJOlcontract. 4.2.5. The IC representative shall affix his signature beside printed name and indicate the date of inspection in the original Delivery Receipt (DR)/Sales Invoice (Sl)iService Invoice/Charge Invoice (CI). 4.2.6. Inspection of accountable forms delivered by Bangko Sentral ng Pilipinas (BSP), APO production Unit,Inc. (APQ) and National Printing Office (NPO) shall be supervised and controlled by the Committel to Supervise the Printing of Specialized Accountable Forms pursuant to Revenue Memorandum Order No. 14-201 5 dated June 24, 2015 . 4.2.7. Purchase of item whose cost is less than P15,000.00 and paid out of Petty Cash Fund by authorized Special Dishursing Officer or advanced by any official in the National Office/Regional Office/RDO authorized to buy supplies/materials from their own cash advances shall be inspecterl by any authorized member of the Inspection Committee upon receipt of goods for inspection from the Special Disbursing Officer. The inspection undertaken shall be indicated on the face ofthe invoice or delivery receipt. 4.2.8. The Requisitioning Officer shall be held accountable for failure to return/surrender to properry Division (PropD) (NO) / AHRMD (RR) / AdmS (RDO) the waste materials such as wc)rn out spare parts, components and other materials considered scrap due to replacement. (Sec. 63 of Mrnual of the NGAS). 4.2.g. propD (NO) / AHRMD (RR) / AdmS (RDO) and concerned project proponent shall invite COA to wifiress the inspection of items delivered pursuant to Section 6.06 of COA Circular 95-006 (Annex "D")' 4.2.10. IC sub-committee created iir Regional Offices with lsland District Offices/ District Offices requiring travel by land of 200 kilometers distance or at least four (4) hours from Regional Offices shall facilitate inspection for projects amounting to Pl5,000.00 in said district office. 4.2.lL All photocopies of suppcrting documents shall be properly authenticated by the concerned originating office. BUREAIJ OF I[! T F R NAL R EVENU E !f, In\ IF/TI NLT lffim JI ?[l20 . )!, 8+L RECORDS M fi'r.,,Dl t/l $ 10rfuv

B. Acceptance Cornmittee 1. The AC shall act as an independent unit. 2. In the absence of an official properly designated in the plantilla position of the abovementioned offices, the Commissioner/Regional Director rnay appoint any official of tlie same or next lower rank/level who shalt act as AC Chairperson/Member until such time that an official shall have been officially designated. 3, In case of prolonged absences of the Chairperson or any member, they shall designate their authorized representatives, not lower than the next in rank position/itern than that to be represented, duly approved by the Commissioner/Regional Director. 4. For deliveries in the National Office per"taining to supplies and other items for stock and distribution and other non-IT Resources, the Chairperson of the Acceptance Committee shall be the signatory for the "Acceptance" portion of the IAR. Hr:wever, for contract deliverables pertaining to IT Resources., the signatory shall be the Chief, NMTSD, in his capacity as Co-Chairperson of the Acceptance Committee. 5. Acceptance of accountable forms delivered by Bangko Sentral ng Pilipinas (BSP), APO Production Unit, Inc. (APO) and National Printing Office (NPO) shall be undertaken by the Chief, Accountable Forms Division. V. Procedures A. Inspection Committee The concerned officer shall be resporlsible for the following: 1. Pre-repair Inspectiorn 1.1. Requisitioning lJnit 1.1.1. Prepare leffer request to ACIR, Administrative Service, Attention: PropD/ GSD (NO) i Regional Director, Attention: Chief, AIIR.MD (RR) for repair/renovation/rehabilitation/replacement of uniVparts; 1.1 ,2 Coordinate with the following trffices: o PropD/GSD/AHRMD/AdmS - For Non-lT equipment, vehicles and building frrcilities for repair/renovation/rehabilitation/ rep lacement of unit/parts . Service Desk, NMTSD (NO) /RDC (RR) - For IT equipment and facilities for repair/ renovatior/ rehabilitatior/ replacement of uniVparts t.:. i. Prepare and sign Request for Pre-Repair lnspection (Annex "A") and Purchase Request; v'

I .1 ,4. Submit Request for Pre-Repair Inspection to IC. Pictures before the repair should be attached (if applicable); and, 1.1.5. Return /surrender to PropD/AHIUVID/AdmS within one (1) day upon inspection, the waste materials such as worn out spare parts, components and other materials considered scrap dtte to replacement. 1.2. Service Desk, NMTSD (NO)/RDC(RR) and facilities for 1.2.1. Conduct actual pre-repair inspection of IT equipment repair/renovation/rehabilitation/ rr:placement of uniVparts; 1.2.2. Check and determine the necessiW of repair and the extent of the damage; 1.2.3. Determine reasons for breakdown, whether due to fair wear and tear or negligence; 1.2.4. Coordinate with Project Propone:rt (PP) if property is still covered by warranty; 1.2.5. Prepare, sign and attach Service Report to the Requesl fq1 p1e-Repair Inspection; and, |.2.6. Forward the Request for Pre-Repair Inspection to Member, IC (NOy AHRMD(RR)/ AdmS (RDO) within one (1) working day from the conduct of actual pre-repair inspection. 1.3. Members - IC . 1 .3.I Conduct actual pre-repair inspection / evaluation; 13.2. Check and determine the necessity of repair and the extent of the damage; 1.3.3. Determine reasons for breakdown, whether due to fair wear and tear or negligence; 1.3.4. Coordinate with PP if property is still covered by waranty; 1 .3.5. Check whether cost of repair is economical or not (not greater than30o/o ofthe current market price) (COA Circular No. 85-55A); 1 .3.6. Validate the findings in the Requt,st for Pre-Repair Inspection; and, 1.3.7. Sign and forward the Request for Pre-Repair lnspection to Chairperson, IC (NOyzuD(RRyARDO(District) within three (3) working days from the conduct of actual pre- repair inspection except for major repairs amounting to 1,000,000.00 and below requiring submission of drawings, lay-out ,-?r. estimates within fifteen (15) working days. 1,4, Chairperson - IC . I .4.7 Affirm the findings in the Request for Pre-Repair lnspection; and, *;,; e,*r-,.3 f. muH IfnfilI*tr ll IUI a. ]fi, i,,]: REC(.)r.t l-i,$ ii''',i [. l ttiti s" t {"1rr'

1.4.2. Sign and forward the Request for Pre-Repair Inspection to Assistant Commissioner, Administrative Service (NO)iRegional Director (RR) together with the Purchase Request within one (1) working day. 2. Inspection of Deliveries 2.1. Requisitioning Unit 2.1.1. Prepare, sign and forward Request for Inspection to the Chairperson, IC and Commission on Audit (COA) together with the originat DR/ SIi Servl/ By BS/ Cy SOA and certified true copy of PO/ JO/ APR/ RPB/TOR/Contract within twenty-four (24) hours from receipt of deliveries. 2.2. Inspection Committee Secretariat (ICS) 2.2.1. Receive from PropD/GSDI{MTSD/PP (NO) / AHRMD (RR) / AdmS (District) the Request for Inspection together with the original DR/ SV Servl/ By BS/ CV SOA and certified true copy of PO/JO/ APR/ RPB/TOR"/ Contract; 2.2.2. Receive original Certificate and /or Waste Materiai Report; 2.2.3. Validate the accuracy and completeness of documents necessary for processing the Inspection and Acceptance Report. ln case of discropancies, prepare Reference Slip/\4emorandum for signature of Chairperson, IC returning the clocuments to PropD/GSDNMTSD/PP (NO) / AHRMD (RR) / AdmS (District) / PP for appropriate action; 2.2.4. Prepare Transmittal Slip, Inspection and Acceptance Report (IAR) and Chronology of Events (COE) within twenty-four (24) hours upon receipt of Request 1'or Inspection including attachments; (Annex "E"); 2.2.5. Stamp "INSPECTED" in the original DR/SI/ServyByBS/CySOA and request the inspectors to affix his/her signature beside printecl name and indicate the date of inspection;' ?.2.6. Forward the signed Transmittal Slip with the complete docket (IAR, Request for Inspection including all supporting documents) to assigned/concerned Inspectors; and, 2.2,7. Forward the approved / signed tAR by the Chairperson, Inspection Committee together with the complete docket to the Chairpers rn/Co-Chairperson, Acceptance Committee. 2.3. Members - IC 2.3.1. Inspect and verifu items as to quantity and conformity with the specifications based on the DR/ SV Servl/ By BS/ CV SOA and appro'red PO/JO/APR/RPB/TOR/Contract, within three (3) working days from receipt of Request for Inspection; '2.3.2. Verifi / Check waste materials sul,;h as worn out spare parts- components and other materials considered scrap due to replacemertlfait wear & tear; V" BURrHAtJ #F INTHPNAL RKVIiNI,L m k

2.3.3. Affix Inspector's signature beside printed name and indicate the date of inspection on the original DR/ SI/ Servl/ BI/ BS/ CV SOA; and, 2.3.4. Sign the IAR over printed name 2.4. Yice-Chairperson - IC 2.4.1. Review and initial on the transmittal Slip; 2.4.2. Review and initial on the Reference Slip/Memorandum returning the Request for Inspection (including all supporting documents) w/ discrepancies; 2.4.3. Review and sign Chronology of,Evutts; 2.4.4. Review and initial in the IAR. 2.5. Chairperson - IC 2.5.1. Assign Inspectors to conduct actual inspection; 2.5.2. Sign Reference Slip/Memorandum returning the Request for Inspection (including all support ing documents) w/ discrepancies; and, 2-5.3. Review and sign the IAR within one (l) working day from receipt. B. AcceptanceCommittee 1. Acceptance Committee Secretariat (ACS) l.l. Receive Inspection and Acceptance Report Gq.R) signed by the Chairperson, Inspection Committee, together with, but not limited to the following documents: a. Original Delivery Receipt b. Original Sales lnvoices/Billing hrvoice/Statement of Account c. Authenticated Copy of Purchase OrderiJob Order/ContractuAPR d. Original Request for Inspection Additional attachments, if applicat'le; a. Original Certificate of Completion and Acceptance b. Official Certificate of Job Completion c. Original Certificate of Service Performance d. OriginalWarranty 1,2. Forward the IAR together with the attached documents to the members for their val idation/comments and initial; 1.3. Prepare Reference Slip forwarding ;he report of the AC on discrepancies/inconsistencies; BIJREAU OF INTEFNAL RKVL[{UL, L0 m .Pr&uI2020 R ECfltrrJl., ilr r.i'[.

)- 1.4. Forward the approved/signed Refer'ence Slip and Report on discrepancies/inconsistencies to the Project ProponenV Inspection Comrrittee for appropriate action; 1.5. Forward the approved/signed IAR by the Chairperson/Co-Chairperson, Acceptance Committee, to the Properfy Division/AHRMD; and, 1.6. Furnish copy of the approved IAI{ to Accounting and COA for recording purposes. 2. Members - AC 2.1. Receive IAR from Acceptance Committee Secretariat together with the attached documents for validation; 2.2. Validate IAR and the attached documents; 2.3. Prepare and initialthe Report on discrepancies/inconsistencies found for approval/signature of the 2.4. Affix initial under the name cf the Chairperson, Acceptance Committee, appearing in the "ACCEPTANCE" box of the IAR within one (l ) working day from its receipt; and, 2.5. Forward IAR to the Chairperson/Vir:e-Chairperson, Acceptance Commiffee, for approval. 3. Vice-Chairperson - AC 3.1. Review documents and initial under the name of the Chairperson, Acceptance Commiffee, appearing in the "ACCEPTANCE" box of the IAR within one (1) working day from its receipt; 3.2. Review and initial Reference Slip and Report on discrepancies/ inconsistencies prepared by the AC Secretariat and Members, respectively; 3.3. Forward lAR/Reference Slip and Report of discrepancies/ inconsistencies to the Chairperson, Acceptance Committee for appropriate action; and, 3.4. Act and assume the responsibilities of the Chairperson during prolonged absences of the latter until such time that the designated authorized representative shall have been approved by the Commissioner/Regional Director (lV. Guidelines and Policies, Section 3). 4. Chairperson - AC 4.1. Review documents and sign the "I,CCEPTANCE" box of the tAR within one (l) working day upon receipt of the Inspection and.i!.cceptance Report; 4.2. Sign Reference Slip and Report on discrepancies/ inconsistencies prepared by the AC Secretariat and Members, respectivelY; and, lFrgnNAL RhvtsNuE, LL t:4):

4.3. Forward approved IAR/Reference Slip and Report on discrepancies/inconsistencies to AC Secretariat. VI. Repealing Clause This supersedes all issuances or portions thereof inconsistent herewith. VtrI. Effectivity This order shall take effect immediately. tro\^W g CAESARR. DULAY Commissioner of Internal Revenue 0 36 4 5 5 L2