Requisitioning is the act of requiring that something be furnished. In the procurement function, it is the submission of written requests for supplies and materials and the like.

In national government agencies, such request is usually made through the use of a Requisition and Issue Voucher (RIV) (Appendix 6) which shall be duly signed by authorized officials. In local government agencies, the RIV (General Form No.45 (A) (Appendix 7) is used for supplies carried in stock. For supplies not carried in stock, the Purchase Request (PR) is used. (LGU Form No. 05)(Appendix 8)

The quantity and kind of supplies and materials requisitioned are indicated in the RIV or PR and the receipt portion is signed by the person authorized to receive them.

Purchase/requisition of any single commodity above P1,000.00 should be supported by a Stock Position Sheet (Appendix 9). This is for the purpose of determining the reasonableness of the quantity being requisitioned. As a general rule, stock on hand of supplies and materials and equipment spareparts should not exceed the normal three-month requirement. However, department heads may approve the build up of stocks on hand of critical supplies and materials in anticipation of cost increase or emergency requirement. In no case shall these stocks exceed more than one year supply unless otherwise approved by the President. The procurement of equipment for stock purposes is not allowed.

Nevertheless, agencies may be allowed to enter into contracts for the purchase of supplies and materials for one year subject to the condition that deliveries shall be made on a staggered basis, and the agencies three (3) months' supply requirements are not exceeded and payments shall be made after each delivery only.

The description and specifications of the supplies and property called for in the requisition shall include only the technical specifications which will fill and satisfy the needs of the requisitioner. All measurements and weights shall be stated in the metric system except those supplies or property which can better be described in the English System.

Requisitions of drugs and medicines should comply with The Generics Act of 1988 (R.A. 6675) which prescribes the use of generic terminology or generic names in all transactions related to purchasing, prescribing, dispensing and administering of drugs and medicines. Requisitions therefore of said items should be in their generic names or the identification of drugs and medicines by their scientifically and internationally recognized active ingredients or by their official generic name as determined by the Bureau of Food and Drugs of the Department of Health.

Splitting of requisition is prohibited. Splitting in its literal sense means dividing or breaking up into separate parts or portions or the act resulting in a fissure, rupture, breach. Splitting of requisition consists in the non-consolidation of requisitions for one or more items needed at or about the same time by the requisitioner. It is usually resorted to in order to do away with and circumvent control measures promulgated by the government.

Applicable Laws, Rules and Regulations

1. Section 358 of the Local Government Code

Requirement of Requisition.-Any order for supplies shall be filled by the provincial or city general services officer or the municipal or barangay treasurer concerned, as the case maybe, for any office of department of local government unit only upon written requisition as hereinafter provided.

2.Section 359 of the Local Government Code and Section 18 of the RRSPMLG

Officers Having Authority to Draw Requisitions. - Requisitions shall be prepared by the Head of Office or department needing supplies, who shall certify as to their necessity for official use and specify the project or activity where the supplies are to be used.

3. Section 446 of the GAAM, Vol. II

 Requests for supplies and materials are made with this form (Appendix 29), which shall be duly approved by authorized officials. The quantity and kind of supplies and materials requisitioned are indicated therein and the receipt portion is signed by the person authorized to receive them. The RIV shall be prepared in three copies: the original is used by the Property Officer to support the Monthly Report of Supplies and Materials Issued submitted monthly to the Chief Accountant; the duplicate is used to support postings in the Supplies Ledger Card/Stock Cards; and the third copy is retained by the requisitioner.

4. Section IV- 1 and 2 of COA Circular No. 78-84 dated August 1, 1978

 In the audit of payment for supplies, materials and equipment delivered, the following documents shall be required, regardless of the mode of procurement:

1. Request for purchase or requisition of supplies, materials and equipment or its equivalent, duly approved by proper authorities;

 2. Stock position sheet in case any single commodity requisitioned exceeds P1,000.00 in value;

5. Sec. 425 of the GAAM, Vol. I

Requirements of requisition in the local government units.-

a. Any order for supplies shall be filled by the provincial or city general services officer or the municipal or barangay treasurer concerned, as the case may be, for any office or department of a local government unit only upon written requisition.

b. Requisitions shall be prepared by the head of office or department needing the supplies, who shall certify as to their necessity for official use and specify the project or activity where the supplies are to be used.

c. Every requisition must be accompanied by a certificate signed by the local budget officer, the local accountant and the local treasurer showing that an appropriation therefor exist, the estimated amount of such expenditure has been obligated, and the funds are available for the purpose, respectively.

6. Sec. 426 of the GAAM, Vol. I

Approval of requisitions.- In the local government unit, approval of the requisitions by the head of office or department concerned who has administrative control of the appropriation against which the proposed expenditure is chargeable is deemed sufficient, except in case of requisitions for supplies to be carried in stock which shall be approved by the local chief executive concerned: Provided, that such supplies are listed or included in the annual procurement plan and the maximum quantity thereof does not exceed the estimated consumption corresponding to a programmed three-month period: and Provided, Further, That nothing herein contained shall be construed as authorizing the purchase of furniture and equipment for stock purposes.

7. Sec. 427 of the GAAM, Vol. I

Requisitions during the last days of December.-Requisitions for supplies and materials drawn during the last days of December intended to be paid out of the unexpended balance of the appropriation for supplies and materials shall not be allowed. All balances of appropriations for the past calendar year shall be applied only to the payment of expenses properly incurred during that year or to the fulfillment of contracts in force properly executed for bona fide needs in the said calendar year when the contracts were made.

8. Sec. 428.b, GAAM, Vol. I

All appropriations for the purchase of equipment, supplies and materials authorized in the General Appropriations Act shall be available only for locally manufactured equipment, parts, accessories, medicines and drugs, supplies and materials, except when none is available in the market or when the price of the locally manufactured articles exceeds those determined by the Flag Law.(Sec. 28, Bk. VI, 1987 Adm. Code)

Preference shall be given to the products manufactured by the Government and to the dormant supplies and equipment of the National Government.

9. Sec. 428.c.3, GAAM, Vol. I

Three copies of the stock position sheet shall be prepared. The original shall go with the original requisition when it is submitted for processing and approval by agency officials. One copy shall be attached to the agency file of the requisition and the other, with a copy of the requisition, shall be sent promptly to the Auditor concerned.

10. Sec. 77, Bk VI, 1987 Adm. Code and Sec. 84 of PD 1177.

Except as otherwise provided in the General Appropriations Act, the stock on hand of supplies, materials and equipment spare parts, acquired through ordinary and emergency purchase, shall at no time exceed the normal three month requirements, subject to pertinent rules and regulations issued by competent authority: Provided, That department heads may approve the build up of stocks on hand of critical supplies and materials, in anticipation of cost increases or requirements of a national emergency, and specifying maximum quantities of individual items, but in no case shall these stocks exceed more than one year's supply, unless otherwise approved by the President. (Se. 77, Bk VI, 1987 Adm. Code)

11. COA Circular No. 85-55A dtd. September 8, 1985

Sec. 3.2A.3

Three (3) months supply is determined by computing the average monthly consumption of the agency for the last six (6) months plus 10% allowance for contingencies multiplied by three. However, the 10% allowance for increase may be exceeded when the circumstances call for additional procurement, such as but not limited to seminars, conferences and the like or in case where the activities cannot be delayed without causing detriment to the public service.

Sec. 4.2 Stocking

Subject to availability of fund, agencies may be allowed to enter into contracts for the purchase of supplies and materials for one year subject to the condition that deliveries shall be made in a staggered basis, and the agencies three (3) months supply requirements are not exceeded and payments shall be made after each delivery.

Formula for A.3: For arriving at one (1) month's supply

Let T = total consumption for the last 6 months
A = T/6 average consumption for the last 6 months
P = estimated one (1) month supply
P = A + (10%)A - (1.10) x A

Examples: Month Consumption

January     P 23,377.33
February       28,353.04
March           43,411.68
April              50,623.84
May              43,664.34
June             41,646.82
Total         P231,077.05

Average Consumption for one month will be:

P (one month supply) = (231,077.05/6)+(.10)x(231,077.05/6)-(1.1)x(231,077.05/6)

= 38,512.84 + (1.10) (38,512.84)
= 38,512.84 + 3,851.28
= 42,364.12

Note : To compute for the three months consumption, multiply the P (estimated one month supply) by 3.

12. Republic Act No. 6675, otherwise known as the Generics Act of 1988.

  x x xx x x x x x

 Section 3: Definition of Terms x x x x

 (1)"Generic Name or Generic Terminology" is the identification of drugs and medicines by their scientifically and internationally recognized active ingredients or by their official generic name as determined by the Bureau of Food and Drugs of the Department of Health.

 Section 6. Who shall use Generic Terminology. (a) All government health agencies and their personnel as well as other government agencies shall use generic terminology or generic names in all transactions related to purchasing, prescribing, dispensing and administering of drugs and medicines.

13. Sections 17-26, Rule 4, RRSPMLG

Sec. 17Requirement of Requisition.-No order for supplies or property shall be placed by the local general services officer, municipal treasurer or barangay treasurer, as the case may be, for any department or office of the local government except upon written requisition as herein provided. Except in the case of emergency purchase, no requisition shall be given due course unless the supplies or property desired are included or listed in the annual procurement program or amendatory procurement program.

SEC. 18 Officers Authorized to Draw Requisitions. - Requisitions shall be drawn by the head of the department or office needing the supplies or property who shall certify as to their necessity for official use and shall specify the project or activity where the supplies or property are to be used.

SEC. 19 Approval of Requisitions.-Approval of the requisition by the head of the department or office concerned who has administrative control of the appropriation against which the proposed expenditure is chargeable is deemed sufficient, except requisition for supplies to be carried in stock which shall be approved by the local chief executive concerned: Provided, That such supplies are listed or included in the annual procurement plan and the maximum quantity thereof does not exceed the estimated consumption corresponding to a programmed three-month period. Provided further, That nothing herein contained shall be construed as authorizing the purchase of furniture and equipment for stock purposes. Purchases by barangays, including those authorized under Section 391, Paragraph (a), Sub-Paragraph 13, of RA No. 7160, shall be made only upon duly approved requisition.

The punong barangay shall approve the requisition in the case of barangays.

Sec. 20 Certification by the Local Budget Officer, Accountant, and Treasurer.-Every requisition must be accompanied by a Request for Obligation and Allotment (ROA) showing the certification of the local budget officer, the local accountant, and the local treasurer that an appropriation thereof exists, that the estimated amount of such expenditure has been obligated, and that funds are available for the purpose, respectively.

In the case of barangays, every requisition must be accompanied by a request for obligation and allotment showing the certification of the following:

• the chairman of appropriations committee of the sanguniang barangay that an appropriation therefor exists;
• the city or municipal accountant that the amount has been obligated; and
• the barangay treasurer that funds are available.

• for supplies carried in stock - Requisition and Issue Voucher (General Form 45(A) as amended 1992); and
• for supplies not carried in stock- Purchase Request (LGU Form No. 05)

• the original copy to be attached as supporting paper to the voucher prepared to effect the payment of the supplies or property procured;
• a copy to the local general services officer, municipal treasurer or barangay treasurer, as the case maybe; and
• a copy to the requisitioning department or office.

Sec. 24. Specifications of Supplies or Property - The description and specifications of the supplies or property called for in the requisition shall include only the technical specifications which will fill and satisfy the needs of the requisitioner. All measurements and weights shall be stated in the metric system except those supplies or property which can better be described in the English System.

The general services officer, municipal or barangay treasurer, as the case may be, shall be responsible for the correctness and accuracy of the specifications or technical descriptions of supplies or property to be purchased, whatever is the mode of procurement, to avoid delays that could arise from any ambiguity.

Sec. 25. Filing of Requisitions in Advance.-Heads of departments or offices shall file their requisitions in advance to allow procurement thereof through the normal process.

Sec. 26.Prohibition against Splitting of Requisitions. - Except in case of requisitions of supplies or property through emergency purchases, requisitions for items needed for each quarter must be consolidated. There is deemed to be splitting when it is resorted to in order to evade the required approval of higher authorities or circumvent control measures provided for in these rules and regulations. The following are illustrations of splitting:

• non-consolidation of requisition for one (1) or more items needed at or about the same time by the requisitioner; and
• issuance of two (2) or more purchase orders based on two (2) or more requisitions for items needed or at about the same time by different requisitioners.

What is "Splitting"?

Splitting, in its literal sense, means dividing or breaking up into separate parts or portions, or an act resulting in a fissure, rupture, breach. Within the sphere of government procurement, splitting is associated with requisitions, purchase orders, deliveries and payments.

Forms of Splitting:

1. Splitting of Requisitions consists in the non-consolidation of requisitions for one or more items needed at or about the same time by the requisitioner.
2. Splitting of Purchase Orders consists in the issuance of two or more purchase orders based on two or more requisitions for the same or at about the same time by different requisitioners; and
3. Splitting of Payments consist in making two or more payments for one or more items involving one purchase order.

1. Splitting of requisitions and purchase orders to avoid inspection of deliveries;
2. Splitting of requisitions and purchase orders to avoid action, review or approval by higher authorities; and
3. Splitting of requisitions to avoid public bidding.

 x x xx x xx x x

Accordingly, all auditors are hereby exhorted to be alert and vigilant at all times with a view to detecting acts of splitting and possibly nipping in the bud any attempt at splitting in any form. In all cases, therefore, where splitting appears to have been resorted to, except of requisitions specified under Section 18, LOI 44 (Supra). They should not only report said cases to the responsible official concerned within their respective jurisdiction but they should disallow in audit all disbursements or payment covering the transactions.

15. Sec. 18, Letter of Implementation, dtd. April, 8, 1976

Subject: Requisitions for supplies, materials and equipment spare parts x x x acquired through emergency purchase from reputable firms

x x xx x xx x x

Section 18. Limitation of ordinary and emergency purchase of supplies, materials and equipment spare parts. -Any provision of law to the contrary notwithstanding, supplies, materials and equipment spare parts acquired ordinary and emergency purchase, shall at no time exceed the normal three-month requirements of any agency, bureau or office: PROVIDED, That under no circumstance shall splitting of requisitions for supplies, materials and equipment spare parts be allowed except those acquired through emergency purchase from reputable firms: PROVIDED, FURTHER, That no requisition shall be made by any office for items of the same kind as would exceed requirements for three months based on the annual procurement program approved by the Bureau of Supply Coordination: PROVIDED, FURTHERMORE, That the Agency head making the emergency purchase shall submit to the Commissioner of the Budget a detailed quarterly report of all such purchase within fifteen days form the close of every quarter.

16. COA Circular No. 94-009 dated Aug. 16, 1994

Subject: Amendments to Volume II of the Government Accounting and Auditing Manual prescribed under COA Circular No. 91-368 dated Dec. 19, 1991.

4.0 EXPANSION OF ACCOUNTS TO PROVIDE SEPARATE EXPENSE ACCOUNT FOR GASOLINE, OIL AND LUBRICANTS AND INVENTORY ACCOUNT FOR THE SAME

4.1 Gasoline, Oil and Lubricants (3-23-000)

Republic Act No. 7886 requires submission of a report to Congress with specific identification, among others, of certain expenditure items which include cost of gasoline, oil and lubricants. To easily generate the total amount expended for this purpose, a separate account is herein provided for Gasoline, Oil and Lubricants with account Code 3-23-000 to be incorporated in the Standard Government Chart of Accounts under Section 368, Vol. II of the GAAM. This account shall be described as follows:

"This account includes the cost of gasoline, oil and lubricants purchased for stock or immediate use in connection with government operations."

Accordingly, the description of expense account "Supplies and Materials" (3-07-000) under Section 352, Volume II of the GAAM, which originally includes the cost of gasoline, oil and lubricants shall be amended to read as follows:

"This account includes the cost of all expendable commodities acquired or ordered for immediate use in connection with government operation. It also includes, but is not restricted to items (1) normally consumed within one year after being put into use, or (2) converted in the process of manufacture or construction, having a life expectancy of more than one year but which shall have decreased substantially in value after being put into use in only one year. Examples are: printed forms, cards, ledgers, journals, pencils, cartridge, brooms, paint, brushes, nails, soaps, powder, inks, pad, medical supplies, construction materials for instruction purposes, spare parts, semi-expendable property having a value that maybe assigned by the Commission on Audit and other expendable property consumed in a function, activity, or office."

17.COA Circular No. 86-200-B dated Jan. 3, 1986

1.0 PURPOSE

This Circular is being issued to increase the value of items to be categorized as "Furniture, Fixtures, Equipment, Work Animals and Books" from P500.00 to P1,500.00 and to revise the definition of the affected accounts in view of such increase.

2.0 REVISED DEFINITION OF TERMS

2.1 The definition of account 8-79-000-"Fixed Assets, Furniture, Fixtures Equipment, Work Animals and Books" is hereby amended to read as follows:

"This account is used to record the cost or value, or other appropriate value, of furniture, fixtures, equipment, work animals and books, which are more or less capital in nature, the cost of which amounts to P1,500.00 or more, and which, when used, do not suffer any material or substantial change or alteration in size or form."

18.COA Circular No. 94-012 dated Sept. 13, 1994

Definition of Terms:

"Library books and materials" shall include reference books and all other materials relevant to the functions of the agency, or institution concerned, comprising the library collection and needed in the intellectual and professional advancement of government personnel and other library users. This account shall include printed and audio visual materials.

Purchase and Acquisitions:

Purchase of library books and materials not exceeding P10,000.00 per copy/unit irrespective of economic or serviceable life, shall be properly charged against appropriation allotment for "Maintenance and Other Operating Expenses" and taken up as expenses under the account "Library books and materials" (Object Code 3-27-000). Similar purchases costing more than P10,000.00 per copy/unit shall be charged against appropriation allotment "Capital Outlay" and taken up as expenses under the account "Furniture, fixtures, equipment and books outlay" (Object Code 4-36-000)

Accountability :

1.Library books and materials costing P10,000.00 or less per copy/unit shall be considered semi-expendable property and a memorandum receipt therefor should be kept for purposes of control. Other library books and materials costing more than P10,000.00 per copy or unit shall be treated as any other equipment for all purposes.

ILLUSTRATIVE DECISION

Nature: Splitting of requisitions

Decision No.:COA Decision NO. 872 dtd. April 13, 1989

Particulars:

While it is true that an Office policy may be adopted to govern the requisition and procurement of office supplies and materials, it is important that the same should not be contrary to law, rules and regulations. In the instant case, the agency did not consolidate the requisitions made by its divisions and operating units, thereby avoiding action, review and approval thereof by higher authorities and the required public bidding. Moreover, whether or not the carpets purchased by the agency are imported is no longer of any moment since under COA Circular 75-55 as amended by COA Circular NO. 85-55A, the furnishing of carpets to offices other than that of the Director is unnecessary and extravagant expenditure. Finally, the failure of the auditor concerned to immediately notify the agency head of the deficiencies found in the subject POs cannot relieve the LMB Director from discharging his fiscal responsibility in the premises.