This document discusses government property management. It defines key terms like accountability, responsibility and liability. It outlines the different phases of property management including acquisition, utilization, and disposition. It describes the different modes of acquiring government property such as purchase, construction, transfer, donation. It provides details on topics like recording assets, inventory taking, relief from accountability for lost property, and disposal of unserviceable property. The document is a comprehensive reference on policies and procedures for managing government assets.

2. •Why are we
here?

3. “The illiterate of the 21st century is
NOT the PERSON who is unable
to read and write, rather the person
who is unable to
learn, unlearn & relearn”

4. Are resources controlled by an entity as a result
of past events, and from which future economic
benefits or service potential are expected to flow
to the entity.
If an expenditure is instead consumed within the
current Period, it is classified as an expense.

5. - Cash
- Marketable Securities
- Accounts Receivables
- Prepaid Assets
- Land
- Buildings
- Office Equipment
- Furniture and Fixtures
- Softwares
CLASSIFICATION OF ASSET

6. Phases of Property and Supply Management
Acquisition
Utilization
Disposition
Procurement
Delivery
Acceptance of Delivery
Inventory
Taking
Inspection
a. Recording & maintaining
SC & PC
b. Preparation of Issuance
Documents (RIS, PAR & ICS)
c. Preparation of Inventory
Report (Semi-Annual & Annual)
Transfer of Property
Sale of Unserviceable

7. Modes of Acquiring Government Property
• The following are the modes of acquiring
property, whether supplies, materials,
equipment or land, in government:
7
2. Constructed
1. Purchased
3. Acquired (Transfer/Donation)
•Non-Exchange Transaction
•Donation without Condition
•Donation with Condition
•Grant
•Intra-Agency Transfer
•Inter-Agency Transfer
•Exchange Transaction

9. “All resources of the government shall be managed,
expended or utilized in accordance with law and
regulation, and safeguarded against loss or wastage
through illegal or improper disposition, with view to
ensuring economy, efficiency and effectiveness in the
operation of the government”
9
It is a state policy that

10. • What Is the
Issue?

11. Custodianship
Accountability LiabilityResponsibility
of accountable officers arising from loss, misuse, damage or deterioration of
government property due to fault or negligence in the safekeeping
Includes:

12. Accountability, Responsibility
and Liability for Government
Property
• Accountability – “a person” obligations to carry out
responsibilities and be answerable for decisions and activities
• Responsibility – the acceptance of assigned authority and the
obligation prudently to exercise assigned or imputed authority
attaching to the assigned or imputed role of an individual or
group participating in organizational activities or decision
• Liability – Refers to the obligation that arises as a
consequence of an illegal or improper act or the non-
performance of what one is mandated to do.

13. DO LRMDS Coordinator /
Librarian
DO Supply Officer /
Sch Property Custodian
DO / School
ICT Coordinator
Head of the Agency
- Immediately and primary responsible
for all government funds and property
pertaining to his/her agency
- are officers who are made
responsible for the supervision
and control of accountable
officers
ACCOUNTABLE OFFICER
Accountable – Answerable or one whose duties permit or required possession or
custody of funds and property such as cashier, disbursing or supply officer and other
persons though not accountable may be held accountable by virtue of their
participation on a particular transaction

14. 14
6. Prepares Inventory Report including (monitoring the
actual location of asset, condition of asset and Person
Accountable) as required by COA
4. Prepares Issuance Documents Property
Acknowledgement Receipt (PAR) and Inventory Custodian
Slip (ICS)
3. Records delivery / transfer / donations thru Property Card
and Stock Card (duly inspected from a perfected PO or
Contract, formal turn-over thru IRP or duly accepted or signed
Deed of Donation)
1. Accepts delivery / transfer / donations
(duly signed PO / Contract / Deed of
Donation and MOA)
2. Signs Inspection and Acceptance Report
5. Conducts Inventory Taking and Maintains PC & SC
Role of Supply Officer / Property
Custodian

15. The delivery of supplies, materials and equipment must
be made by the supplier/Manufacturer/contractor :
In accordance with the
specifications, terms and
conditions provided in the
Contract/Purchase Order
Within the stipulated period
and at the place/s indicated
in the PO or contract

16. Failure to deliver within the
prescribed period, the
supplier / manufacturer /
contractor shall be liable for
penalty, usually in the form
of :
“LIQUIDATED DAMAGES”
Once the accumulative amount of
Liquidated damages reaches 10%
of the contract, the procuring entity
may rescind the contract

17. Extension of time to deliver may be
granted for the following reason:
1. Force Majeure
2. Fortuitous Event
3. Beyond the control of the contractor
4. Delay is attributable to the purchaser
or the like

18. The Supply Officer / Designated Property
Custodian shall receive all the deliveries and
signs the Delivery Receipt (DR) if the delivered
goods are in accordance with the contract or
Purchase Order (PO).
If not, he/she may reject the deliveries
until the supplier complies with the end-
users specifications
Supply Officer/Designated Property Custodian
signs “Received” portion of the original and copy 2 of
Delivery Receipt (DR)

19. All items to be inspected shall be accepted first
by the Property Officer/School Property
Custodian, as the case may be (Section 114,
COA Circular 92-386)
The above provision pertains only to the
receipting/signing on the delivery receipt (DR)
and temporary recording of the deliveries upon
arrival of goods or articles. The deliveries
are still subject to inspection for
conformity with specifications on the
order.

20. Supply Officer/Designated
Property Custodian
forwards Original DR &
Copy 2 of Approved PO to
Inspection Committee for
inspection of deliveries

21. The Head of Office or
school shall constitute an
Inspection Committee to
inspect and validate
deliveries

22. The School Inspection Committee
shall be composed of :
Regular Members:
a). Team Leader – at least 2nd ranking
permanent official of school
b). One (1) school personnel designated by
the principal who has knowledge/technical
expertise relevant to the goods delivered
c). One (1) representative from PTA or NGOs

23. The Division Office Inspection Committee
shall be composed of :
Regular Members:
a). Team Leader – at least 3rd ranking permanent
official of the procuring entity
b). One (1) representative from any of the regular
offices under the Office of the Schools Division
Superintendent (SDS) such as, but not limited to
the following
* Administrative Unit
* Budget Unit
* Legal Unit
* School Governance and Operation Division
c). Representative from the procuring entity who
has knowledge/technical expertise relevant to the
goods delivered

24. The Regional Office Inspection Committee
shall be composed of :
Regular Members:
a). Team Leader – at least 5th ranking permanent
official of the procuring entity
b). One (1) representative from any of the regular
offices under the Office of the Regional Director
such as, but not limited to the following
* Administrative Unit
* Budget Unit
* Legal Unit
* Education Support Services Division
c). Representative from the procuring entity who
has knowledge/technical expertise relevant to the
goods delivered

25. The Inspectorate Team and the Supply Officer /
Designated Property Custodian shall prepare the
Inspection and Acceptance Report (IAR)
Note: Distribution of IAR shall be as
follows
1. Original – Property and/or Supply
Division/Unit (to be attached
To DV, together with the
Original DR
2. Copy 2 – Property Inspector /
Inspection Team
3. Copy 3 - Accounting Division/Unit
(attached in setting up
payables)
4. Copy 4 - Property and/or Supply
Division/Unit File

26. The Office/School inspection
Committee shall sign the Inspection
and Acceptance Report (IAR) prior
to acceptance by the Supply
Officer/School Property Custodian.

28. Expendable
Semi-
Expendable
Non-
Expendable
Consumable
Non-
Consumable
PPE
Pencil
Bond Paper
Supply or
equipment less than
15K
IT Equipment
Office Equipment
Furniture
Comm. Equipment
>= 15k
Inventory Items PPE
Pencil
Bond Paper
Textbooks & School
Furniture
Library Books,
Office Furniture &
Office Equipt >= 15k
STOCK CARD
PROPERTY
CARD
ICS PAR

29. Tangible Items below the capitalization threshold of P
15,000.00 shall be accounted as semi-expendable
property.
** Minimum cost of the individual asset
*** Individual item below the threshold but work together
as one network of asset, the amount exceeds the
threshold
**** the P15,000.00 shall not be applied to the aggregate
value of PPE acquired in bulk
POLICIES ON THE APPLICATION
OF THRESHOLD

30. If the Promotional Item received is the same as the
PPE purchased –
“the total purchase cost shall be allocated to the total
quantity purchased plus the promotional item”
Example : An entity purchase 10 units of motor vehicles
at P 330,000.00 per unit totaling to P 3,300,00.00. An
additional unit was received as promotional item.
Computation of the cost per unit is P 3,300,000.00/11
units = P 300,000.00
Policy on Purchases with
Promotional Items:

31. If the Promotional Item received is
different from the PPE purchased –
“the cost of the promotional item shall be its fair value.
It shall be deducted from the total cost of the items
purchased and the balance shall be allocated to the
total quantity purchased”
Example : An entity purchase a motor vehicles at P
330,000.00. A window-type air conditioning unit with fair
value of P 20,000.00 was received as promotional item.
Computation of the cost of the motor vehicle is P
330,000.00 – P 20,000.00 = P 310,000.00

33. Deped No. 82 s. 2011
• Guidelines on Proper
Recording of all Donated
Properties
33

34. Sample Deed of Donation
34

35. The DONOR shall provide the DONEE a
DEED OF DONATION
It must be properly signed between the
Donor and Head of School or
Representative
DO Order No. 82 s. 2011
35
The School Property Custodian accepts the
delivery and records the delivery to the
Property/Stock Card and School Inventory
Report
The HS Supply Officer accepts the delivery
and record the same to the Property
Card/Stock Card and School Inventory
Report
Elementary and Non - IUs Secondary / IUs
Donated assets shall be recorded at
cost, fair market value or appraised
value when cost is not available
The School Property Custodian forwards
the original Deed of Donation and (school
inventory report) to the DO Supply Officer
for recording
DO Supply Officer forwards copy of the
Deed of Donation to DO Accountant for
Booking-UP
The HS Supply Officer forwards copy of the
Deed of Donation to DO Accountant for
Booking-UP
At the School
Level

36. is the act of transferring the
custodianship of property from
one person to another

37. Requesting Personnel
prepares RIS in 3 copies and
fills-up necessary information
Requesting Personnel forwards
the RIS to authorized official
for review
Authorized Official reviews
and signs in the “Requested
By” portion of the RIS
Requesting Office
Requesting Personnel
forwards signed RIS to
Property/Supply Unit/Division
Property and/or Supply
Division/Unit
Property Staff receives RIS.
Forwards the original copy 3 of RIS
to the Head of Supply/Property
for review and approval
Procedures in the Requisition and Issuance of
PPE
Based on the approved RIS,
Property Staff prepares Property
Acknowledgement Receipt (PAR)
Head of Supply/Property signs in
the “Issued By” portion of RIS and
PAR
Requesting Personnel signs in
the “Received By” portion of
RIS and PAR
Accounting
Division
Forwards the original RIS to the
Accounting Division/Unit

38. Requesting Personnel
prepares RIS in 3 copies and
fills-up necessary information
Requesting Personnel
forwards the RIS to
authorized official for
review
Authorized Official signs RIS
after determining the
reasonableness of the
quantity and nature of
item/s being requested and
ensures that the same does
not exceed the planned
usage for the period
Requesting Office
Requesting Personnel
forwards signed RIS to
Property/Supply Unit/Division
Property and/or Supply
Division/Unit
Receives RIS from Requesting
Personnel. Reviews and verifies
the completeness of information.
Indicates “P” in the Stock
Available? Yes Column if item
being requisitioned is/are
available on stock, or “X” in the
stock available? No column if not
available
Procedures in the Requisition and Issuance of
Inventory Items
A

39. Requesting Office
A
Receives supplies requested
and signs in the “Received By”
portion of the RIS
Property and/or Supply
Division/Unit
Files permanently copy 3 of
RIS, original for preparation of
Report of Supplies and
Materials Issued (RSMI)
Forwards RSMI to Accounting
Division together with
Original RIS (at the end of the
Day)
Accounting Division

40. Accountability over Semi-expendable Property
“it shall be issued to end-user to establish
accountability over them. Accountability shall be
extinguished upon return of the item to the
Property and Supply Division/Unit or in case of
loss, upon approval of the relief from property
accountability”

41. Recording deliveries thru Stock and
Property Card
Expendable, Semi-
Expendable and equipment
< P 15,000.00
Property, Plant and
Equipment =/> P 15,000.00
Stock Card
Inventory Custodian Slip (ICS)
Property Acknowledgement Receipt (PAR)
Property Card

42. Preparation of Issuance Documents
Requisition and Issue Slip
Note: For use of Report of Supplies and Materials Issued (RSMI)
The RIS shall be distributed as follows:
1. Original - Accounting Division/Unit
2. Copy 2 - Requesting Office
3. Copy 3 - Property and/or Supply Division/Unit

46. Activities in Property Utilization
Issuance and acknowledgement of items
Property Acknowledgement
Receipt Inventory Custodian Slip
Property, Plant & Equipment
(IT Equipment, Office Equipment, vehicle
more than P15,000.00)
Non-Consumable Supplies
(including textbooks, school furniture)
(Office furniture & Office/ICT equipment less
than P 15,000.00)
Note: 2016 GAM indicates Accountability
Over Semi-Expendable Property

49. Loss of Government Property
It is the power of the COA to
credit losses of property or act
on application for relief of
accountability
New Form from COA
Report of Loss

50. Immediately notify the auditor of the occurrence of the loss
and within thirty (30) days submit an application for relief
** Affidavit executed by the accountable officer stating the following facts:
1. Property lost and its valuation
2. Actual date in which the absence was first noted
3. Manner of disappearance
4. Efforts put forth to recover the same
5. Provision made to safeguard the property
6. Date when the loss was reported to the Auditor and Police

51. ** Joint Affidavit of two (2) disinterested persons
** Final Police report showing the steps taken by the police
authorities to recover the property lost and to apprehend the
suspect(s) and the present status of the case
** Comments and/or recommendation of the agency head
** Copy of Acknowledgement Receipt of Equipment for Property
Lost

52. STEPS / PROCEDURE
IN CONDUCTING
INVENTORY TAKING

53. 1 Planning the inventory taking
-Accurate inventories require a METHODICAL SYSTEM
(Procedure/orderliness in doing something)
1. Definite plans should be developed
concerning:
* the date of physical inventory
* who is to supervise the count
* the personnel to act as counters
and checkers
* sequence of counting
2. There should be set of instructions
to be observed by each person
connected with the taking of inventory

54. Creation of Inventory Committee
2

55. Physical Inventory Taking3
- The committee shall take the actual counting,
measurement or weigh the object of inventory
- the committee shall take note of:
1. Name of inventory item
2. Code number
3. Location
4. Item Count
Asset Registry Template

56. Witnessing the Inventory Taking4
A representative from COA
shall be invited to witness
physical inventory taking
conducted by inventory
committee to observe the
actual process in order to
assure themselves the fairness
of the presentation of financial
statements

57. Reconciliation of Property & Accounting
Records
5

59. DISPOSAL– is the end of the life cycle of
a government property

60. Disposal Objectives
• to avoid continuing carrying/inventory
costs
• to prevent further deterioration
thereby obtaining the fair return in
case of sale
• to relieve accountable officers of
unnecessary accountability
• to make available space for the
agency

61. Determination of Disposable Property
• Can no longer be repaired or reconditioned
• Maintenance/repair costs more than or
outweighs the benefits and services
• Has become obsolete or outmoded
• Has been rendered unnecessary due to
change in the Agency’s functions/mandate
• In excess of requirements
• Has become dangerous or hazardous to use

62. MODES OF DISPOSAL
Transfer of Property
Donation of Property
Condemnation / Destruction
Sale of Unserviceable Property

63. APPRAISAL

64. Appraisal - art of estimating the fair
exchange worth of a property as of a
specified date, supported by relevant and
factual data.
Appraisal may or may not be
accurate depending on:
Basic competence and
integrity of appraiser
Soundness and skill with
which he/she uses the data
Availability of
pertinent data

65. an estimate or opinion of value of a described
property as of a specific date transmitted in writing
and supported by relevant and factual data
Appraised Value -
Situations where appraisal is needed:
 transfer of ownership
 financing and credit
 basis for taxation/taxes
 just compensation in sale
or condemnation
procedures

66. Determine and identify
the items for disposal
List the items in IIRUP
and Waste Material
Repots
Take Pictures
Solve for the appraised
value
Analyze the appraised
value and recommend
the most realistic and
reasonable AV
Submit the IIRUP and
Waste Material Report
with appraised value to
the Disposal Committee
for approval
Disposal Committee
transmit approve IIRUP
and Waste Material to
BAC on Disposal
BAC on Disposal pre-
qualify interested bidders
(Junk Shop)
BAC on Disposal conducts
Opening of Bids
BAC on Disposal awards
The disposal to the
highest bidder
Asset Management
Division forwards copy to
Accounting Division for
dropping from the book
of accounts
AssetManagementDivision
SaleofUnserviceable

67. Principles in computing for the Appraised Value
Unserviceable property -
at scrap/junk value
When Property is still
Operational/Functional or can be
Repaired - at CMV
AV = CMV x ( CF1 / CF2 )
AV = Appraised Value
CMV = Current Market Value
CF1 = Condition Factor of the Property
CF2 = Condition Factor of the Advertised/Canvassed Property

68. When Property is still
Operational/Functional or can be
Repaired - at CMV
Example: Laptop Computer, Lenovo L412
Original Acquisition Cost is P 30,000.00
CF1 = 30% (Condition of the Property being disposed)
CF2 = 80% (Condition of the Property being compared to)
CMV = 15,000.00
AV= CMV X (CF1/CF2)
AV= 15,000.00 x (30%/80%)
AV = 5,625.00

69. Appraisal Process
1. Conduct inspection
2. Seek reference price information
3. Compute the appraised value
Inspection to establish the existence and
condition of the property / asset
to supplement theoretical
computation of value with first-
hand observation

70. Documentation

71. Inventory and Inspection Report of Unserviceable Property
(IIRUP)
• This form is used for :
– disposal of vehicles,
– office equipment,
– furniture, and
– other properties, plant and equipment
which can no longer be repaired or
reconditioned and whose maintenance
cost of repair more than outweighs the
benefits and services that will be
derived from its continued use.

72. As of
(Agency) ( Name of Accountable Officer ) ( Designation )
Appraisal Official
Articles Quantity Unit Cost Total Cost Property No. Date No. of years Accumulated Receipt Amount
Acquired in service Depreciation Number
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
I HEREBY request inspection, and disposition I CERTIFY that I have inspected each and every
pursuant to Section 79 of PD 1445, of the Property article enumerated in this report and that the I CERTIFY that I have witnessed the diposition
enumerated above. disposition made thereof was, in my judgement, the of the article enumerated on this report this
best for the public interest. ______ day of ______________________.
Requested by : Request for Inspection Approved by :
( Signature of Accountable Officer ) ( Name and Signature )
( Name and Signature of Inspector ) ( Name and Signature of Witness )
( Designation of Accountable Officer ) ( Designation )
INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY
I N V E N T O R Y I N S P E C T I O N R E P O R T
D I S P O S I T I O N
Inventory and Inspection Report of
Unserviceable Property (IIRUP)

73. Waste Materials Report
• This form shall be used:
– to report all waste materials previously taken up in the
books as assets so that they may be properly disposed
of and dropped from the accounts
– in the disposal of waste materials which result from
the consumption or utilization of expandable
materials, and covers damaged equipment parts,
empty containers, and remnants salvaged from
destroyed or damaged property, plant and
equipment.

74. ITEM QTY. UNIT
O.R. No. Amount
1
2
3
4
5
6
TOTAL
I hereby certify that the property enumerated above was disposed of as follows:
Item ________ Destroyed
Item ________ Sold at private sale
Item ________ Sold at public auction
Item ________ Transferred without cost to _______
Property Inspector: (Name & Signature) Witness to disposition:
CERTIFICATE OF INSPECTION
ITEMS FOR DISPOSAL
WASTE MATERIALS REPORT
DESCRIPTION RECORD OF SALES
Agency
Place of Storage Date
Certified Correct:
Property Officer
Disposal Approved:

75. “The only person who is educated
is the one who has learned how to learn…. and
changed “
Carl Rogers