The document discusses property and supply management. It describes the key phases as acquisition, utilization, and disposition. It outlines the roles and procedures for receiving, inspecting, accepting, and recording deliveries of government property. This includes preparing necessary documents, conducting inspections, and maintaining inventory records. The document also addresses topics like modes of acquisition, force majeure clauses, and policies for donated, transferred, and surplus property.

2. It refers to any system that
monitors and maintains things of
value to entity, group, institutions
or to an individual.

3. 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

4. Modes of Acquiring Government Property
• The following are the modes of acquiring
property, whether supplies, materials,
equipment or land, in government:
4
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

5. 5
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

7. 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

8. 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
can rescind the contract

9. 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

10. Force Majeure
• Force majeure is generally intended to include
occurrences beyond the reasonable control of a party,
and therefore would not cover:
• Any result of the negligence or malfeasance of a party,
which has a materially adverse effect on the ability of
such party to perform its obligations.[4]
• Any result of the usual and natural consequences of
external forces.
• Any circumstances that are specifically contemplated
(included) in the contract—for example, if the contract
for the outdoor event specifically permits or requires
cancellation in the event of rain.

11. there are three things the parties can
do wrong
• Nonfeasance is the failure to act where action
is required — willfully or in neglect.
• Misfeasance is the willful inappropriate action
or intentional incorrect action or advice.
• Malfeasance is the willful and intentional
action that injures a party.

12. Force Majeure
• is a common clause in contracts that
essentially frees both parties from liability or
obligation when an extraordinary event or
circumstance beyond the control of the
parties, such as a war, strike, riot, crime, or an
event described by the legal term act of God
(hurricane, flood, earthquake, volcanic
eruption, etc.), prevents one or both parties
from fulfilling their obligations under the
contract.

13. Fortuitous Event
• An unforeseen event that occurs by chance or
accident from natural or man-made forces
over which an affected person has no control.
ACT OF MAN:
– War
– Robbery
– Murder

14. 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)

15. 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.

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

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

18. 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
Provisional Member:
a). One (1) representative from PTA or NGOs

19. 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
* Physical Facilities Unit
Provisional Member:
a). Representative from the procuring entity who
has knowledge/technical expertise relevant to the
goods delivered

20. 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

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

23. Signs “Received” portion of
the original and copy 2 of the
Delivery Receipt. Returns copy
2 of DR to the supplier
Procedures in the Receipt, Inspection, Acceptance and Recording
of Deliveries of Inventory Items
Property and/or Supply
Division/Unit
Prepares Inspection and
Acceptance Report (IAR) in 4
copies
Forwards original IAR, DR and
copy 2 of PO to Property
Inspector for inspection of
deliveries
Inspectorate Team
Inspects and verifies items as
to quantity and conformity to
specifications based on DR
and approved PO
Signs the “Acceptance”
portion of IAR. Forwards copy
3 of IAR, photocopy of PO and
DR to Accounting for recording
Prepares DV, attaches the
original IAR, copy 2 of DR,
original PO
Accounting
Division

24. 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

25. 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:

26. 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

27. Stock Card
Property Card
Supply Ledger
Card
PPE Ledger
Card
Asset Management
Division
Accounting Division
Recording Cards for Property and
Accounting Division

28. Sample Reconciliation
of Stock Card and Supply
Ledger Card

29. Central and Regional Offices procured
items delivered directly to school

31. Deped No. 82 s. 2011
• Guidelines on Proper
Recording of all Donated
Properties
31

32. Sample Deed of Donation
32

33. 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
33
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

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

35. 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

36. 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

37. 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

38. 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”

39. 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

40. 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

44. 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

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

49. 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

50. 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

51. DO. 74 s, 2011
• The condemnation and disposal of the TXs
and TMs should be coordinated with the
division offices (DOs) through the Disposal
Committee. The replacement of damaged or
lost TXs should be coordinated with the IMCS
if the buffer stocks from the division offices
have been depleted

52. • The TXs and TMs are to be financed from the
General Appropriations Act (GAA) lumpsum
amount for textbooks and instructional materials.
Likewise, it is the policy of DepEd to procure TXs
and TMs on a centralized basis to avail of
economies of scale. The provision of TXs and TMs
will allow DepEd to achieve the 1:1 Textbook to
Pupil Ratio (TXPr) and shall ensure that the TXPr
in all public schools shall remain at desirable
levels (1:1) for core subjects and (1:2) for
non¬core subjects, throughout the five (5) years
life span of the TXs and TMs.

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

54. APPRAISAL

55. 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

56. 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

57. 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
Asset
Management
Division
Sale
of
Unserviceable

58. 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

59. 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

60. 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

61. Documentation

62. 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.

63. 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)

64. 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.

65. 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:

66. Others
• DO 107, s. 2010 - Revised Guidelines on the
Condemnation and Demolition of School
Buildings
• DO 25, s. 2003- Resolving Losses on
TEXTBOOKS
• DO 14, s 2012- Policy guidelines on proper
distribution, care, recording, retrieval and
disposal of TEXTBOOKS and other IMs.

67. DO 13, s 2012- Guidelines on the Allocation,
Delivery, and Distribution of Instructional
Materials (IMs) to Support the K to 12
Curriculum.

68. DO 44 s, 2013-Moratorium on the
Procurement of Supplementary
Reading, Reference, and Other
Instructional Materials (IMs)
The moratorium includes projects and/or programs such as, but not
limited to: School-Based Management, Preschool Education for All
children (for regular children and children with special needs), Every
Child a Reader Program (ECARP), Enhancement of English, Science
and Mathematics Instructions, Special Programs (e.g., Special
Education (SPED), Sports Regional Science High Schools, Engineering
and Science Education Program, Multigrade Program, Mother
Tongue-Based Multilingual Education (MTB-MLE), Gender and
Development Program, among others). Notwithstanding separate
guidelines that may have authorized the procurement of IMs using
these Programs or Funds, this authority is hereby suspended during
the effectivity of this Order.

69. DepEd Order No. 60, s. 2011 entitled
Implementing Guidelines on the Direct Release
of Maintenance and Other Operating Expenses
(MOOE) Allocation of Schools to the Respective
Implementing Units, Section to wit: To use for
other mandatory expenditures except for the
procurement of textbooks and other
instructional materials, and school furniture and
equipment.

70. Relevant Provisions ( revoked, suspended upon the
issuance of DO 44, 2013)
• DECS Order No. 25, s. 1999 dated March 8, 1999 entitled Procurement of
Instructional Materials;
• DepEd Memorandum No. 289, s. 2007 dated July 7, 2007 entitled Reiteration of
the Moratorium on the Procurement of Suplementary and Reference Materials;
• DepEd Order No. 38, s. 2007 dated June 7, 2007 entitled Reiteration of
Moratorium on the Procurement of Supplementary and Reference Materials;
• DepEd Order No. 52, s. 2007 dated August 3, 2007 entitled Addendum to DepEd
Order No. 38, s. 2007;
• DepEd Order No. 112, s. 2009 dated November 13, 2009 entitled List of Approved
Supplementary and Reference Materials;
• DepEd Order No. 119, s. 2009 dated December 21, s. 2009 entitled Additional
Guidelines on the List of Approved Supplementary and Reference Materials;
DepEd Order No. 61, s. 2010 dated May 18, 2010 entitled Corrigendum to DepEd
Order No. 119, s. 2010;
• DepEd Order No. 48, s. 2011 entitled Additional List of Supplementary Reading and
Reference Materials.

71. Sample computations- losses on TXT
Formula:
Straight line method application
Amount to be paid: =Cost per textbooks-
Depreciation
Information:
Cost of Grade 6 Mathematics TXT=P38.95
Date Acquired: January 2017
Date Lost: December 31, 2017

73. Contact Number
• Feel free to call or text this number:
0946-3500-813