latest trends & issuances on property management

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Latest Trends & Latest Trends & Issuances on Property Issuances on Property

ManagementManagement

COA MandateCOA Mandate

Examine, audit and settle in, in Examine, audit and settle in, in accordance with laws, rules and accordance with laws, rules and regulations, all accounts pertaining to regulations, all accounts pertaining to the revenues and receipts of, and the revenues and receipts of, and expenditures or uses of funds and expenditures or uses of funds and property, owned or held in trust by, or property, owned or held in trust by, or pertaining to, the government, or any pertaining to, the government, or any of its subdivisions, agencies or of its subdivisions, agencies or instrumentalities, including instrumentalities, including government owned and controlled government owned and controlled corporations.corporations.

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COA MissionCOA Mission

The COA, entrusted by the Filipino people The COA, entrusted by the Filipino people with the duty to undertake independent with the duty to undertake independent audit, aims to provide adequate, reliable audit, aims to provide adequate, reliable and current information on the affairs of and current information on the affairs of the governmentthe government

through appropriate audit approaches, through appropriate audit approaches, and the fair and impartial exercise of its and the fair and impartial exercise of its powers so that accountability, powers so that accountability, transparency, economy, productivity and transparency, economy, productivity and effectiveness in the conduct of government effectiveness in the conduct of government operations are hereby promoted.operations are hereby promoted.

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COA 2011-2012 ThrustsCOA 2011-2012 Thrusts

Theme: “Mapping a Culture of Theme: “Mapping a Culture of Integrity”Integrity”

1. 1. Revisit the mandate and assess Revisit the mandate and assess the the

directions;directions;

2. Evaluate the organizational 2. Evaluate the organizational structure structure

and management and businessand management and business

processesprocesses

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COA 2011-2012 ThrustsCOA 2011-2012 Thrusts and undertake the necessary and undertake the necessary

reforms to institute best practices reforms to institute best practices for efficiency and effectiveness in for efficiency and effectiveness in carrying out tasks and carrying out tasks and strengthening independencestrengthening independence

3. Upgrade capabilities especially in 3. Upgrade capabilities especially in the areas of forensic accounting, the areas of forensic accounting, fraud audit and properly fraud audit and properly documenting audit findings so they documenting audit findings so they will stand in courts of law;will stand in courts of law;

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COA 2011-2012 ThrustsCOA 2011-2012 Thrusts

4. Engage citizen participation in 4. Engage citizen participation in the audit process and keep them the audit process and keep them informed of the workings of the informed of the workings of the Commission within the bounds of Commission within the bounds of due process and confidentiality due process and confidentiality requirements; andrequirements; and

5. Fastidiously work and strive to 5. Fastidiously work and strive to grow in professionalism, grow in professionalism, patriotism and integrity.patriotism and integrity.

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Section 2 P.D. 1445Section 2 P.D. 1445

It is the declared policy of the state It is the declared policy of the state that all resources of the government that all resources of the government shall be managed, expended or shall be managed, expended or utilized in accordance with laws and utilized in accordance with laws and regulations and safeguarded against regulations and safeguarded against loss or wastage through illegal or loss or wastage through illegal or improper disposition, with a view to improper disposition, with a view to ensuring economy, efficiency and ensuring economy, efficiency and effectiveness in the operations of the effectiveness in the operations of the government.government.

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Relevant Laws, Rules and Relevant Laws, Rules and RegulationsRegulations

1. Republic Act 7160 Local Government Code 1. Republic Act 7160 Local Government Code (Section 383)(Section 383)

2. Republic Act 9184- Government 2. Republic Act 9184- Government Procurement Reform Act (GPRA)Procurement Reform Act (GPRA)

3. Presidential Decree No. 1445-Government 3. Presidential Decree No. 1445-Government Auditing Code of the PhilippinesAuditing Code of the Philippines

4. COA Circular No. 92-386 Except portions 4. COA Circular No. 92-386 Except portions on Procurement- repealed/amended by R.A. on Procurement- repealed/amended by R.A. 91849184

5. Philippine Bidding Documents5. Philippine Bidding Documents

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Administrative Order No. Administrative Order No. 1717

Directing the Use of the Directing the Use of the Procurement ServiceProcurement Service (PS) (PS) and and Philippine Government Philippine Government Procurement System Procurement System (PhilGEPS)(PhilGEPS) in Procurement in Procurement Activities of NGAs, GOCCs, Activities of NGAs, GOCCs, GFIs, SUCs and LGUsGFIs, SUCs and LGUs

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Circular Letter No. 2011-Circular Letter No. 2011-66

Implementing Guidelines of Implementing Guidelines of AO 17AO 17

Prescribes the procedures Prescribes the procedures and guidelines for the and guidelines for the implementation of AO 17 in implementation of AO 17 in order to facilitate order to facilitate compliance and achieve the compliance and achieve the objectives objectives

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Circular Letter No. 2011-Circular Letter No. 2011-66

Requires all NGAs, including Requires all NGAs, including Military and Police Units, GOCCs, Military and Police Units, GOCCs, GFIs, SUCs and LGUs to GFIs, SUCs and LGUs to submitsubmit the the Annual Procurement Plan for Annual Procurement Plan for Common-Use Supplies (APP-CSE)Common-Use Supplies (APP-CSE) in the prescribed format to:in the prescribed format to:

- Procurement Service (soft copy - Procurement Service (soft copy – e-mail– e-mail or online) or online)

- DBM-ROs (hard copy) - DBM-ROs (hard copy)

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Circular Letter No. 2011-Circular Letter No. 2011-66 Item and Specifications, Unit oItem and Specifications, Unit of f

measure, Quantity requirements on a measure, Quantity requirements on a monthly basis and the Total amountmonthly basis and the Total amount

Items subdivided into categories:Items subdivided into categories: A. Items available at the PS storesA. Items available at the PS stores - Legal size paper- Legal size paper

- Common office supplies (envelope, - Common office supplies (envelope, folder, folder, acetate, alcohol, paper clip) acetate, alcohol, paper clip) - Computer supplies/consumables - Computer supplies/consumables - Common electrical supplies - Common electrical supplies

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Circular Letter No. 2011-Circular Letter No. 2011-66B. Other items not available at the PS butB. Other items not available at the PS but

regularly purchased from others sourcesregularly purchased from others sources - - Office equipment and accessoriesOffice equipment and accessories

- Office supplies - Office supplies - Audio and visual presentation and - Audio and visual presentation and composing equipment composing equipment - Photographic/filming or video equipment - Photographic/filming or video equipment - Cleaning equipment and supplies - Cleaning equipment and supplies - Paper materials and products - Paper materials and products - Lighting fixtures and accessories - Lighting fixtures and accessories - Computer supplies, equipment and - Computer supplies, equipment and accessories accessories

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COA Memo Circular No. COA Memo Circular No. 2011-102011-10

InclusionInclusion in the in the AnnualAnnual Audit ReportAudit Report of govt. of govt. agencies who are not agencies who are not complying with the IRR of complying with the IRR of R.A 9184 to ensure that R.A 9184 to ensure that such agencies procure their such agencies procure their supply requirements supply requirements through PSthrough PS

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Property and Supply Property and Supply ManagementManagement

Covers:Covers:

1. Procurement & Other Modes of 1. Procurement & Other Modes of AcquisitionAcquisition

2. Delivery, Inspection, Acceptance 2. Delivery, Inspection, Acceptance & Payment& Payment

3. Utilization, Accounting & 3. Utilization, Accounting & CustodianshipCustodianship

4. Disposal4. Disposal15

Common Problems in Procurement

1. No APP2. Piecemeal procurement3. PPMPs not consolidated4. PBDs not posted in the

PhilGEPS 5. Splitting of requisitions,

contracts, payments6. Non conduct of public bidding


7. Alternative modes of procurement being the preferred methods

8. Non invitation of observers9. Delayed procurement resulting

to delayed implementation of projects

10. Ordinary/regular office supplies not purchased from the Procurement Service (PS)


• 11. Erroneous bidding procedures• 12. Non requirement of performance

and warranty security• 13. lapses in procedures• 14. non observance of the no brand

name rule• 15. collusion among bidders/bidders &

BAC• 16. overstocking of supplies and

property


Other Modes of Acquisition:• 1. Transfers of property not properly

documented and accounted for• 2. Donations are not properly

documented • 3. Donated property are not taken

up in the books.• 4. Seized properties are not

accounted for.

Common Problems in Delivery, Acceptance & Payment

1. Ghost/short deliveries deliveries2. Deliveries are not in accordance with the

contract3. Non imposition of the liquidated damages

in case of delay/non performance4. Inspection of deliveries are not conducted

rigidly5. Acceptance of goods which are not in

accordance with the contract6. Non imposition of retention7. Delayed payment of perfected contracts8. Inadequate documents supporting

payments

Common Problems in Utilization, Custodianship and

Disposal1. Excessive consumption of supplies/materials.

2. Non preparation of the Monthly Report of Supplies and Materials Issued

3. Non conduct of physical count of government property

4. Unreconciled accounting and property records

5. Overstated balances of inventories and PPE in the books

Common Problems in Utilization, Custodianship and

Disposal• 6. Inadequate property and accounting• records• 7. Unserviceable properties not disposed• 8. Disposed properties are not dropped in

the• agency’s books 9. Inadequate safeguards on government

property 10. Loss of property not reported to COA 11. Non renewal of AREs 12. Costly repairs of property

ProcurementProcurement

- Must be in accordance with Republic - Must be in accordance with Republic Act 9184 (R.A. 9184) otherwise known Act 9184 (R.A. 9184) otherwise known as the Government Procurement as the Government Procurement Reform Act (GPRA)Reform Act (GPRA)

- Public bidding as the default in - Public bidding as the default in procurementprocurement

- Approved APP prior to procurement- Approved APP prior to procurement

- Alternative modes of procurement only - Alternative modes of procurement only in highly exceptional cases.in highly exceptional cases.

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Other Modes of Acquiring Other Modes of Acquiring Govt. PropertyGovt. Property

1. Transfer1. Transfer

2. Donation2. Donation

3. Confiscation, Attachment or 3. Confiscation, Attachment or Seizure and ForeclosureSeizure and Foreclosure

4. Production and Manufacture4. Production and Manufacture

5. Construction5. Construction

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Transfer of PropertyTransfer of Property

Sec. 76 P.D. 1445Sec. 76 P.D. 1445

Any government property that is Any government property that is no longer needed by an agency or no longer needed by an agency or unserviceable maybe transferred unserviceable maybe transferred without cost or at an appraised without cost or at an appraised valuation to other government valuation to other government agencies upon authority of the agencies upon authority of the respective heads of agencies.respective heads of agencies.

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Transfer of PropertyTransfer of Property

1. Property officer shall conduct an inventory 1. Property officer shall conduct an inventory of the property no longer neededof the property no longer needed

2. Prepare a transfer and invoice receipt with 2. Prepare a transfer and invoice receipt with the details of property description, cost, etc.the details of property description, cost, etc.

3. Agency Heads ( transferor and recipient 3. Agency Heads ( transferor and recipient agency) approves the transfer docsagency) approves the transfer docs

4. Require appropriate receipt of items4. Require appropriate receipt of items

5. Furnish the Accountants with original copy 5. Furnish the Accountants with original copy of transfer docs for recording in the booksof transfer docs for recording in the books

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DonationDonation

• Donations/contributions Donations/contributions from private sector, other from private sector, other govt. agencies both local and govt. agencies both local and foreign, and non foreign, and non governmental organizationsgovernmental organizations

•Require a “Deed of Donation” Require a “Deed of Donation” & “Acceptance of Donation”& “Acceptance of Donation”

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Confiscation, Attachment, Confiscation, Attachment, Seizure & ForeclosureSeizure & Foreclosure

Becomes government Becomes government properties by reason of properties by reason of violation of laws, rules or violation of laws, rules or regulations and the title to the regulations and the title to the property has been acquired by property has been acquired by virtue of court decisions or by virtue of court decisions or by competent authorities. (Sec. competent authorities. (Sec. 456, GAAM, Vol I.456, GAAM, Vol I.

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Confiscation, Attachment, Confiscation, Attachment, Seizure & ForeclosureSeizure & Foreclosure

- Govt. agencies concerned shall submit - Govt. agencies concerned shall submit to the COA a monthly report of all to the COA a monthly report of all goods and properties acquired by them goods and properties acquired by them through confiscation, attachment, through confiscation, attachment, forfeiture or donation within the first ten forfeiture or donation within the first ten days of the following month stating the days of the following month stating the description, quantity, estimated value, description, quantity, estimated value, date, place, mode of acquisition, date, place, mode of acquisition, location/where stored, disposition for location/where stored, disposition for the month.the month.

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ConstructionConstruction

•By Administration By Administration •By ContractBy Contract

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RequisitionsRequisitionsof supplies and materialsof supplies and materials

Requisitions for supplies and Requisitions for supplies and materials drawn during the last materials drawn during the last days of December intended to be days of December intended to be paid out of the unexpended paid out of the unexpended balance of the appropriation for balance of the appropriation for supplies and materials shall not supplies and materials shall not be allowed. (Sec. 427 GAAM Vol. be allowed. (Sec. 427 GAAM Vol. 1), except as provided in the GAA1), except as provided in the GAA

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RequisitionsRequisitionsof supplies and materialsof supplies and materials

Except as provided in the GAA, Except as provided in the GAA, the stock on hand of supplies, the stock on hand of supplies, materials and equipment spare materials and equipment spare parts, acquired through ordinary parts, acquired through ordinary or emergency purchase shall at or emergency purchase shall at no time exceed the normal three no time exceed the normal three (3) months requirements. (1987 (3) months requirements. (1987 Adm. Code)Adm. Code)

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DeliveriesDeliveries

Deliveries of supplies, materials Deliveries of supplies, materials and equipment being and equipment being requisitioned must be made by requisitioned must be made by the supplier/contractor in the supplier/contractor in accordance with the accordance with the specifications, terms and specifications, terms and conditions as provided for in conditions as provided for in the contract.the contract.

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DeliveriesDeliveries

In case of failure to deliver In case of failure to deliver within the prescribed period, within the prescribed period, liquidated damages of (1/10) of liquidated damages of (1/10) of one percent (1%) shall be one percent (1%) shall be imposed for every day of delay imposed for every day of delay for the undelivered/unperformed for the undelivered/unperformed portion.portion.

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InspectionInspection

-a means of verifying physical -a means of verifying physical evidence to evidence to establish establish existence and condition of existence and condition of assets.assets.

- the act of measuring, examining, - the act of measuring, examining, testing or gauging the testing or gauging the characteristics and features of a characteristics and features of a product or service.product or service.

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COA Circular No. 92-386COA Circular No. 92-386

Prescribing Rules and Regulations Prescribing Rules and Regulations on Supply and Property on Supply and Property Management in the Local Management in the Local Governments Governments

• Sec. 467- Inspection of PropertySec. 467- Inspection of Property• Sec. 466- Inspection ReportsSec. 466- Inspection Reports• Sec. 467- Records of Inspection.Sec. 467- Records of Inspection.

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Phil. Bidding Documents (May 2005): Phil. Bidding Documents (May 2005): Procurement of GOODS, Sec. IV – Procurement of GOODS, Sec. IV – General Conditions of the ContractGeneral Conditions of the Contract

Clause 14. Clause 14. InspectionInspection and Tests and Tests

14.1 The Procuring Entity (PE) 14.1 The Procuring Entity (PE) shall have shall have the right to inspect the right to inspect and/or test the Goodsand/or test the Goods

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14.2 The Inspection & Testing 14.2 The Inspection & Testing may be conducted on the may be conducted on the premises of the Supplier or premises of the Supplier or its subcontractor, at the its subcontractor, at the point of delivery, and/or at point of delivery, and/or at the GOODS’ final destination.the GOODS’ final destination.

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14.3 The PE shall be entitled to 14.3 The PE shall be entitled to attend the attend the inspection inspection and/or tests.and/or tests.

14.4 The PE may reject any 14.4 The PE may reject any GOODS that GOODS that fail to pass any fail to pass any inspection and/or inspection and/or test or test or do not conform to the do not conform to the specifications.specifications.

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14.5 The Supplier agrees that 14.5 The Supplier agrees that neither the neither the execution of an execution of an inspection and/or test inspection and/or test of the of the GOODS nor the attendance by GOODS nor the attendance by the PE shall release the the PE shall release the Supplier from any warranties Supplier from any warranties or other obligations under the or other obligations under the contract. contract.

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Acceptance and rejection of Acceptance and rejection of deliveriesdeliveries

- Supplies and materials tested - Supplies and materials tested and found to be in accordance and found to be in accordance with existing specifications – with existing specifications – accepted and paid in full.accepted and paid in full.

- With a deficiency of 10% and - With a deficiency of 10% and over – over – rejected and rejected and replacement demanded.replacement demanded.

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Acceptance and rejection of Acceptance and rejection of deliveriesdeliveries

- With a deficiency of less than - With a deficiency of less than 10% - may be accepted, 10% - may be accepted, provided they will serve the provided they will serve the purpose for which they were purpose for which they were purchased (minor defect and purchased (minor defect and contract price reducedcontract price reduced).).

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CustodianshipCustodianship

Guardianship of government Guardianship of government property by the person property by the person accountable includes:accountable includes:

a. Receipta. Receipt

b. Safekeepingb. Safekeeping

c. Issuancec. Issuance

d. Repair and maintenanced. Repair and maintenance

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Also includes:Also includes:

- Accountability- Accountability

- Responsibility- Responsibility

- Liability- Liability

that may arise from loss, misuse, that may arise from loss, misuse, damage or deterioration of government damage or deterioration of government property due to fault or negligence in property due to fault or negligence in safekeeping.safekeeping.

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- Bonding of Accountable Officers - Bonding of Accountable Officers (filed with the Bureau of Treasury)(filed with the Bureau of Treasury)

- Insurance of Government Property- Insurance of Government Property

The agency head has the The agency head has the responsibility to insure responsibility to insure government property under the government property under the Property Insurance Fund Property Insurance Fund administered by the GSIS.administered by the GSIS.

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Responsibility and Responsibility and AccountabilityAccountability

The head of any agency of the The head of any agency of the government is immediately government is immediately and primarily responsible for and primarily responsible for all government funds and all government funds and property pertaining to his property pertaining to his agency (Sec. 102 (1), PD agency (Sec. 102 (1), PD 1445).1445).

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Responsibility of the Head of Responsibility of the Head of AgencyAgency

- Develop and install the internal control - Develop and install the internal control structure of the agency to include the structure of the agency to include the internal control environment, internal control environment, accounting system and procedures.accounting system and procedures.

- Maintain the internal control - Maintain the internal control environment in order to safeguard environment in order to safeguard assets, produce reliable accounting assets, produce reliable accounting data and promote operational data and promote operational efficiency and effectiveness.efficiency and effectiveness.

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- financial and other reports and - financial and other reports and statements are submittedstatements are submitted

- appropriate actions are taken on the - appropriate actions are taken on the deficiencies noted as contained in deficiencies noted as contained in the NS, ND, NC, AOM) and AARthe NS, ND, NC, AOM) and AAR

- the requirements of transactions - the requirements of transactions suspended in audit are complied suspended in audit are complied with;with;

- the settlement of disallowances and - the settlement of disallowances and charges is made within the charges is made within the prescribed period. prescribed period.

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Clearance from money and Clearance from money and property accountabilities in favor property accountabilities in favor of any employee shall not be of any employee shall not be approved, unless all charges, approved, unless all charges, disallowances and suspensions are disallowances and suspensions are first settled; otherwise, he shall be first settled; otherwise, he shall be jointly and severally liable with the jointly and severally liable with the employee concerned. employee concerned.

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The head of the agency shall The head of the agency shall initiate the necessary initiate the necessary administrative and/or criminal administrative and/or criminal charges in case of unjustified charges in case of unjustified failure/refusal to effect failure/refusal to effect compliance with the above compliance with the above requirements by subordinate requirements by subordinate officials. officials.

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Responsibility of Accountable Responsibility of Accountable OfficersOfficers

Who is an Accountable Officer?Who is an Accountable Officer?

An accountable officer is the An accountable officer is the person who by reason of his person who by reason of his office or duty ought to be or office or duty ought to be or deemed to be in possession or deemed to be in possession or custody of government funds custody of government funds or property. or property.

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Responsibility of Accountable Responsibility of Accountable OfficersOfficers

Persons entrusted with the Persons entrusted with the possession or custody of the possession or custody of the funds or property under the funds or property under the agency head shall be agency head shall be immediately responsible to him immediately responsible to him without prejudice to the liability without prejudice to the liability of either party to the government of either party to the government (Sec. 102(2), PD 1445) (Sec. 102(2), PD 1445)

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Responsibility for Proper Use and Responsibility for Proper Use and Care of Government Property.Care of Government Property.

The person in actual physical The person in actual physical possession of government property possession of government property or entrusted with its custody and or entrusted with its custody and control shall be responsible for its control shall be responsible for its proper use and care and shall proper use and care and shall exercise due diligence in the exercise due diligence in the utilization and safekeeping thereof. utilization and safekeeping thereof. (Sec. 376, R.A. 7160; Section 140 of (Sec. 376, R.A. 7160; Section 140 of COA Cir. 92-386) COA Cir. 92-386)

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Responsibility on Transfer of Responsibility on Transfer of Excess PropertyExcess Property

It shall be the duty of every head It shall be the duty of every head of the department or office to of the department or office to turn over to the general services turn over to the general services officer or municipal or barangay officer or municipal or barangay treasurer, as the case maybe, treasurer, as the case maybe, excess property for reissuance excess property for reissuance to other departments or offices. to other departments or offices. (Section 141 of COA Cir. 92-386)(Section 141 of COA Cir. 92-386)

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Responsibility for Wasteful Responsibility for Wasteful Use of Supplies or PropertyUse of Supplies or Property

It shall be the direct responsibility of It shall be the direct responsibility of every local chief executive to every local chief executive to prevent or minimize wasteful uses of prevent or minimize wasteful uses of supplies or property requisitioned by supplies or property requisitioned by each office. The local chief each office. The local chief executive shall develop operating executive shall develop operating standards against the improper or standards against the improper or wasteful use of supplies or property wasteful use of supplies or property (Section 139, COA Cir. No. 92-386)(Section 139, COA Cir. No. 92-386)

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Accountability of the Head of Accountability of the Head of AgencyAgency

1. Accountability for financial and 1. Accountability for financial and other resourcesother resources

2. Accountability for compliance2. Accountability for compliance

3. Accountability for efficient and 3. Accountability for efficient and economical operation, if fraught economical operation, if fraught with measurement problems. with measurement problems.

4. Accountability for program 4. Accountability for program results.results.

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Accountability of the Accountable Accountability of the Accountable Officer Officer

Any officer of the local government unit Any officer of the local government unit whose duty permits or requires the whose duty permits or requires the possession or custody of local government possession or custody of local government funds shall be accountable and responsible funds shall be accountable and responsible for the safekeeping thereof in conformity with for the safekeeping thereof in conformity with the provisions of this Title. Other local the provisions of this Title. Other local officers who, though not accountable by the officers who, though not accountable by the nature of their duties, may likewise be nature of their duties, may likewise be similarly held accountable and responsible for similarly held accountable and responsible for local government funds through their local government funds through their participation in the use or application thereof participation in the use or application thereof (Sec. 340, RA 7160).(Sec. 340, RA 7160).

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Accountability of the Accountability of the Accountable OfficerAccountable Officer

Every officer of any government Every officer of any government agency whose duties permit or agency whose duties permit or require the possession or require the possession or custody of government funds or custody of government funds or property shall be accountable property shall be accountable therefor and for the safekeeping therefor and for the safekeeping thereof in conformity with law. thereof in conformity with law. (Sec. 101(1) P.D. 1445)(Sec. 101(1) P.D. 1445)

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Primary and Secondary Primary and Secondary Accountability for Government Accountability for Government

PropertyProperty Each head of department or office of a Each head of department or office of a

province, city, municipality or barangay shall province, city, municipality or barangay shall be primarily accountable for all government be primarily accountable for all government property assigned or issued to his property assigned or issued to his department or office. The person or persons department or office. The person or persons entrusted with the possession or custody of entrusted with the possession or custody of government property under the government property under the accountability of any head of department or accountability of any head of department or office shall be immediately accountable to office shall be immediately accountable to such officer. ( Sec. 375 (a), R.A. 7160; such officer. ( Sec. 375 (a), R.A. 7160; Section 142 of COA Circular No. 92-386) Section 142 of COA Circular No. 92-386)

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PropertyProperty The head of a department or office The head of a department or office primarily accountable for government primarily accountable for government property may require any person in property may require any person in possession of the property or having possession of the property or having custody and control thereof under him custody and control thereof under him to keep such records and make reports to keep such records and make reports as may be necessary for his own as may be necessary for his own information and protection. ( Sec. 375 information and protection. ( Sec. 375 (b), R.A. 7160; Section 142, COA (b), R.A. 7160; Section 142, COA Circular No. 92-386) Circular No. 92-386)

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PropertyProperty Buildings and other physical Buildings and other physical structures shall be under the structures shall be under the accountability and responsibility of accountability and responsibility of the provincial or city general the provincial or city general services officer or the municipal services officer or the municipal mayor, or punong barangay, as the mayor, or punong barangay, as the case may be. ( Sec. 375 (c), R.A. case may be. ( Sec. 375 (c), R.A. 7160; Section 147 of COA Circular 7160; Section 147 of COA Circular No. 92-386) No. 92-386)

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PropertyProperty Every officer primarily accountable Every officer primarily accountable for government property shall keep for government property shall keep a complete record of all properties a complete record of all properties under his charge and render his under his charge and render his accounts thereof semiannually to the accounts thereof semiannually to the provincial or city general services provincial or city general services officers or the municipal mayor, or officers or the municipal mayor, or punong barangay, as the case may punong barangay, as the case may be. ( Sec. 375 (c), R.A. 7160) be. ( Sec. 375 (c), R.A. 7160)

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Liability of the Head of AgencyLiability of the Head of Agency

The officer directing any The officer directing any illegal payment or disposition illegal payment or disposition of the funds or property shall of the funds or property shall be primarily liable for the be primarily liable for the loss.loss.

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Liability of the Accountable Liability of the Accountable OfficerOfficer

Every officer accountable for Every officer accountable for government funds shall be liable government funds shall be liable for all losses resulting from the for all losses resulting from the unlawful use, or application unlawful use, or application thereof and for all losses thereof and for all losses attributable to negligence in the attributable to negligence in the keeping of the funds (Sec. keeping of the funds (Sec. 105(2), P. D. 1445)105(2), P. D. 1445)

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Measure of Liability of Persons Measure of Liability of Persons Accountable for Government Accountable for Government

PropertyProperty The person immediately accountable for The person immediately accountable for

government property shall be liable for its government property shall be liable for its money value in case of the illegal, improper or money value in case of the illegal, improper or unauthorized use or misapplication thereof, by unauthorized use or misapplication thereof, by himself or any other person for whose acts he himself or any other person for whose acts he may be responsible, and shall be liable for all may be responsible, and shall be liable for all loss, damage, or deterioration occasioned by loss, damage, or deterioration occasioned by negligence in the keeping or use of such negligence in the keeping or use of such property unless it is proved that he has exercised property unless it is proved that he has exercised due diligence and care in the utilization and due diligence and care in the utilization and safekeeping therefor. Sec. 377(a), R.A. 7160; safekeeping therefor. Sec. 377(a), R.A. 7160; Section 149, COA Cir. 92-386)Section 149, COA Cir. 92-386)

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PropertyProperty Unless he registers his objection in Unless he registers his objection in writing, an accountable officer shall not writing, an accountable officer shall not be relieved from liability by reason of his be relieved from liability by reason of his having acted under the direction of a having acted under the direction of a superior officer in using property with superior officer in using property with which he is chargeable; but the officer which he is chargeable; but the officer directing any illegal unauthorized or directing any illegal unauthorized or improper use of property shall first be improper use of property shall first be required to answer therefore. Sec. 377(b), required to answer therefore. Sec. 377(b), R.A. 7160 ; Sec. 149, COA Cir. 92-386)R.A. 7160 ; Sec. 149, COA Cir. 92-386)

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PropertyProperty In cases of loss, damage, or In cases of loss, damage, or deterioration or government deterioration or government property arising from, or property arising from, or attributable to, negligence in attributable to, negligence in security, the head of the security security, the head of the security agency shall be held liable agency shall be held liable therefor. Sec. 377(c), R.A. 7160; therefor. Sec. 377(c), R.A. 7160; Section 150 COA Cir. 92-386)Section 150 COA Cir. 92-386)

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Loss of Government Loss of Government PropertyProperty

COA has the power to credit losses of COA has the power to credit losses of property or act on application for relief property or act on application for relief of accountability. (Sec. 73 of P.D. 1445)of accountability. (Sec. 73 of P.D. 1445)

Procedures:Procedures:

1. Immediately notify COA of the 1. Immediately notify COA of the loss/damageloss/damage

2. Within 30 days submit an application for 2. Within 30 days submit an application for relief together with the required relief together with the required supporting documents.supporting documents.

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Physical Inventory

Chief of agencies are required to take a physical inventory of all equipment and supplies pf their respective offices at least once a year.

Supplies and materials in stock should be inventoried at least every six (6) months as of June 30 and December 31 of each year.

Physical Inventory

Procedures:1. Plan the inventory taking &

prepare the inventory guidelines2. Creation of inventory committee3. Physical Count4. Reconciliation of property and

accounting records

Reconciliation of property and accounting records

5. Reconcile the results of the physical count with the property and accounting records

6. The property or supply officer maintains the stockcards/property cards while the accountant maintains the supplies/equipment ledger cards & control accounts (general ledger accounts)

7. Inventory committee prepares the required report on the physical count of inventory and property plant and equipment.

Property Repair and Maintenance

Repair & Maintenance Program- Extends the standard economical

and useful life of property & equipment

- Serves as a sound basis for scheduling its replacement.

- The property unit shall maintain a ledger card containing the history of the equipment maintained.


Includes the following: - Identification of equipment to be repaired

subject to approval by proper authorities. When repair cost is more than 30% of its FMV-beyond economic repair.

- Preparation of Request for Pre-repair Inspection

- Conduct of Pre-repair Inspection- Preparation of Pre- Repair Inspection

Report


- Replacement of Damaged/Unserviceable Parts

- Preparation of Waste Materials Report

- Conduct of Post Repair Inspection

- Preparation of the Post Repair Inspection Report

Issuance and Utilization

Responsibilities and Activities in Property Utilization

1. Preparation of issuance documents2. Issuance and acknowledgment of

items3. Accounting for the issuance and

acknowledgment of items4. Preparation of monthly reports5. Reconciliation of property and

accounting records


Issuance Documents:Supplies Availability Inquiry

(SAI)Requisition and Issue Slip (RIS)Purchase Request (PR)Acknowledgment Receipt for

Equipment (ARE)Waste Materials Report (WMR)


Section 492, GAAM Vol. 1 Equipment issued by the property

officer for official use of officials and employees shall be covered by ARE, which shall be renewed every January of the third year after issue. AREs not renewed after three(3) years shall not be considered in making physical count of the equipment.

Monthly Report of Supplies and Materials Issued (MRSMI)

- Serves as a monthly abstract of supplies and materials issued s evidenced by the RIS.

- At the end of the month, all MRSMIs shall be consolidated for the preparation of the JEV.

- Reconcile property and accounting records

Transfer of Property

If any property is transferred from one accountable officer to another:

- The old ARE is returned to the former holder of the equipment (Property Officer)

- New ARE is accomplished and submitted by person to whom the property is re-issued.

Return of Unused Supplies & Excess Materials

- Unused supplies/scrap materials previously issued from stock when no longer needed after completion of the work/project shall be returned to the property clerk who shall acknowledge receipt thereof and marked the items “Returned to Stock”

- JEV shall be prepared to restore the items to stock.

Disposal

Disposal is the end of the life cycle of a government property.

The following are subject to disposal

a. unserviceable/obsolete propertyb. confiscated/seized propertyc. property under

distraint/levy/garnishmentd. unclaimed motor vehiclese. real propertyf. valueless records/documents

Section 79 P.D. 1445

“When government property has become unserviceable for any cause and is no longer needed, it shall upon application of the officer accountable therefore , be inspected by the head of the agency or his duly authorized representative x x x and if found to be valueless or unserviceable, it maybe destroyed. If found valuable, it maybe sold at public auction at the highest bidder under the supervision of the proper committee on award or similar body x x x. In the event that public auction fails, the property maybe sold at a private sale at such prices as maybe fixed by the same committee or body concerned.

Disposal

EO. No. 888 Sec I & COA Circular No. 89-296

“ The full and sole authority and responsibility for the divestment or disposal of properties and other assets owned by the National, Corporate and LGUs including its subsidiaries shall be lodged in the heads of departments, bureaus and offices or governing bodies or managing heads of the concerned entities”.

Disposal

Different Modes of Disposal1. Condemnation/Destruction2. Transfer of Property3. Barter4. Donation5. Sale of Unserviceable Property a. Public Bidding b. Negotiated Sale

Disposal

General Procedures in Disposal:1. Prepare the Inventory and

Inspection Report on Unserviceable Property

2. The Property Officer shall file an application for disposal to the COA Auditor with appropriate documents

3. The COA Auditor inspect the items and determine if the items are with or without value

Disposal

4. The Head of the Agency forwards the documents to the disposal committee

5. The Disposal Committee shall recommend to the Head of Agency the mode of disposal most advantageous to the government.

6. If found to be valuable the unserviceable property maybe sold at public auction to the highest bidder under the supervision of the proper Committee on Awards or similar body.

87

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