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.
CLASSIFICATION OF ASSET

- Cash
- Marketable Securities
- Accounts Receivables
- Prepaid Assets

- Land
- Buildings
- Office Equipment
- Furniture and Fixtures
- Softwares
Is a systematic process of deploying,
operating, maintaining, upgrading and
Disposing of assets cost effectively
 “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”

It is a state policy that

5
Phases of Property and Supply Management

Acquisition
Procurement
Delivery
Inspection
Acceptance of Delivery

Utilization
a. Recording & maintaining

Inventory
SC & PC

Taking
b. Preparation of Issuance
Documents (RIS, PAR & ICS)
c. Preparation of Inventory
Report (Semi-Annual & Annual)

Disposition
Transfer of Property
Sale of Unserviceable
Modes of Acquiring Government Property

• The following are the modes of acquiring

property, whether supplies, materials,
equipment or land, in government:

1. Purchased
2. Constructed
3. Acquired (Transfer/Donation)
•Non-Exchange Transaction
•Donation without Condition
•Donation with Condition
•Grant
•Intra-Agency Transfer
•Inter-Agency Transfer
•Exchange Transaction
7
 Role of Supply Officer / Property
Custodian
1. Accepts delivery / transfer / donations
(duly signed PO / Contract / Deed of
Donation and MOA)
2. Signs Inspection and Acceptance Report
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)

4. Prepares Issuance Documents Property

Acknowledgement Receipt (PAR) and Inventory Custodian
Slip (ICS)

5. Conducts Inventory Taking and Maintains PC & SC

6. Prepares Inventory Report including (monitoring the

actual location of asset, condition of asset and Person
Accountable) as required by COA
8
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
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
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
 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)
 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.
Supply Officer/Designated
Property Custodian
forwards Original DR &
Copy 2 of Approved PO to
Inspection Committee for
inspection of deliveries
The Head of Office or
school shall constitute an
Inspection Committee to
inspect and validate
deliveries
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

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
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
The Office/School inspection
Committee shall sign the Inspection
and Acceptance Report (IAR) prior
to acceptance by the Supply
Officer/School Property Custodian.
Procedures in the Receipt, Inspection, Acceptance and Recording
of Deliveries of Inventory Items
Property and/or Supply
Division/Unit
Inspectorate Team
Inspects and verifies items as
to quantity and conformity to
specifications based on DR
and approved PO
Signs “Received” portion of
the original and copy 2 of the
Delivery Receipt. Returns copy
2 of DR to the supplier Accounting
Division
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
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
POLICIES ON THE APPLICATION
OF THRESHOLD
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
 Policy on Purchases with
Promotional Items:

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
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
Recording Cards for Property and
Accounting Division

Asset Management Accounting Division

Division

Supply Ledger
Stock Card
Card

PPE Ledger
Property Card
Card
Central and Regional Offices procured
items delivered directly to school
 At the School Level

School Property
School Property
Custodian signs the
Custodian accepts
acceptance portion of the
delivery
IAR

School Property
Custodian forwards
delivery receipt to the
School Inspectorate Team
If School is No
IUs B
School Inspectorate ?
Team conducts
inspection and signs
Inspection and
Acceptance Report (IAR)
upon completion of Yes
installation and testing
A
 Non-Implementing
Units
At the Division Office
Level School Property
Custodian returns
original signed DR, IAR,
Division Supplier Officer to the supplier for
B
records delivery in the DO payment purposes
provides copy of DR &
IAR to Division Supply
Officer
Division Supply Officer
prepares transfer of
accountability thru PAR & School Property
ICS to the Accountable Custodian records
Officer of the School delivery to School
Inventory and Property
Card/Stock Card
 Implementing Units

School Property
Custodian returns
original signed DR, IAR,
to the supplier for
A payment purposes
provides copy of DR &
IAR to Division Supply
Officer
School Property
Custodian records
School Property delivery in the School
Custodian records inventory and prepare
delivery to School transfer of
Inventory and Property accountability thru
Card/Stock Card (PAR) & (ICS) for
the Accountable Officer
in the School
 DBM-PS / Supplier
At the CO / RO provides copy of DR & IAR
to CO / RO Asset Mgnt Div

CO / RO Asset Mgnt Div

prepares & transmit
Property Transfer Report
(PTR) with DR
attachment to respective
DO Offices to effect
booking-up

C
 Division Supply Officer
verifies delivery based on
C
the attachments and
signs PTR
Division Supply Officer
transmit signed PTR to
CO / RO

CO / RO transmit signed
PTR to CO / RO
Accountant for dropping
from book of accounts
CO / RO Accountant
transmit Journal Entry
Voucher (JEV) to
respective DO
Accountant
Deped No. 82 s. 2011
• Guidelines on Proper
Recording of all Donated
Properties

35
Sample Deed of Donation

36
 DO Order No. 82 s. 2011
The DONOR shall provide the DONEE a
DEED OF DONATION
It must be properly signed between the
At the School
Donor and Head of School or
Level Representative

Donated assets shall be recorded at

cost, fair market value or appraised
Elementary and Non - IUs value when cost is not available Secondary / IUs

The School Property Custodian accepts the The HS Supply Officer accepts the delivery
delivery and records the delivery to the and record the same to the Property
Property/Stock Card and School Inventory Card/Stock Card and School Inventory
Report Report

The School Property Custodian forwards

the original Deed of Donation and (school The HS Supply Officer forwards copy of the
inventory report) to the DO Supply Officer Deed of Donation to DO Accountant for
for recording Booking-UP

DO Supply Officer forwards copy of the

Deed of Donation to DO Accountant for 37
Booking-UP
is the act of transferring the
custodianship of property from
one person to another
 Procedures in the Requisition and Issuance of
Requesting Office PPE
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 Personnel
forwards signed RIS to
Property/Supply Unit/Division
Requesting Personnel signs in
the “Received By” portion of
RIS and PAR
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
Accounting
Based on the approved RIS, Division
Property Staff prepares Property
Acknowledgement Receipt (PAR)
Head of Supply/Property signs in
the “Issued By” portion of RIS and
PAR
Forwards the original RIS to the
Accounting Division/Unit
 Procedures in the Requisition and Issuance of
Inventory Items

Requesting Office

Requesting Personnel
Requesting Personnel
forwards the RIS to
prepares RIS in 3 copies and
authorized official for
fills-up necessary information
review

Property and/or Supply

Authorized Official signs RIS Division/Unit
after determining the
reasonableness of the Receives RIS from Requesting
quantity and nature of Personnel. Reviews and verifies
item/s being requested and the completeness of information.
ensures that the same does Indicates “P” in the Stock
not exceed the planned Available? Yes Column if item
usage for the period being requisitioned is/are
available on stock, or “X” in the
stock available? No column if not
available
Requesting Personnel
forwards signed RIS to
Property/Supply Unit/Division A
 Requesting Office
A Property and/or Supply
Receives supplies requested
and signs in the “Received By”
portion of the RIS
Division/Unit
Files permanently copy 3 of
RIS, original for preparation of
Report of Supplies and
Materials Issued (RSMI)
Accounting Division
Forwards RSMI to Accounting
Division together with
Original RIS (at the end of the
Day)
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”
Recording deliveries thru Stock and
Property Card

Expendable, Semi-
Stock Card
Expendable and equipment
< P 15,000.00

Inventory Custodian Slip (ICS)

Property Card Property, Plant and

Equipment =/> P 15,000.00

Property Acknowledgement Receipt (PAR)

Preparation of Issuance Documents

Requisition and Issue Slip

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

Note: For use of Report of Supplies and Materials Issued (RSMI)

Activities in Property Utilization
Issuance and acknowledgement of items
Property
Acknowledgement Receipt
Property, Plant & Equipment
(IT Equipment, Office Equipment, vehicle
more than P15,000.00)
Inventory Custodian Slip
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
DISPOSAL – is the end of the life cycle of
a government property
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
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
 MODES OF DISPOSAL

Condemnation / Destruction

Transfer of Property

Donation of Property

Sale of Unserviceable Property

APPRAISAL
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
Appraised Value -
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

Situations where appraisal is needed:

 transfer of ownership
 financing and credit
 basis for taxation/taxes
 just compensation in sale
or condemnation
procedures
 Determine and identify
the items for disposal

List the items in IIRUP

and Waste Material
Repots BAC on Disposal pre-
qualify interested bidders
(Junk Shop)
Asset Management Division

Sale of Unserviceable
Take Pictures

BAC on Disposal conducts

Opening of Bids

Solve for the appraised

value
BAC on Disposal awards
The disposal to the
highest bidder
Analyze the appraised
value and recommend
the most realistic and
reasonable AV

Asset Management
Submit the IIRUP and Division forwards copy to
Disposal Committee
Waste Material Report Accounting Division for
transmit approve IIRUP
with appraised value to dropping from the book
and Waste Material to
the Disposal Committee of accounts
BAC on Disposal
for approval
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
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
 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
Documentation
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.
 Inventory and Inspection Report of
Unserviceable Property (IIRUP)

INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY

As of

(Agency) ( Name of Accountable Officer ) ( Designation )

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

DIS P OS ITION 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 )

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.
 WASTE MATERIALS REP ORT

Agency

Place of Storage Date

ITEMS FOR DISPOSAL

ITEM QTY. UNIT DESCRIPTION RECORD OF SALES
O.R. No. Amount
1

TOTAL
Certified Correct: Disposal Approved:

Property Officer
CERTIFICATE OF INSPECTION

I hereby certify that the property enumerated above was disposed of as follows:

Ite m ________ De stroye d

Ite m ________ Sold at private sale
Ite m ________ Sold at public auction
Ite m ________ Transfe rre d without cost to _______

Property Inspector: (Name & Signature) Witness to disposition: