SOP Library
SOP NO:
GS-PD19
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
General Services (GS)
Activity:
Purchasing/Inspection and Fixed Asset Disposition (GS-PD)
Title:
Revised SOP on Fixed Assets Inventory, Monitoring and Control System
Date Approved/Issued:
03/24/2003
Date Effective:
03/24/2003
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A.
General Policies
1.
Upon initial implementation of this SOP the Supply Officers shall make a
complete inventory of NFA fixed assets
in their respective areas and submit the complete and
Updated
Fixed Assets Inventory Report
(Exhibit 1
) to the Regional Office for consolidation and submission to GSD-PMSD.
The Supply Officer concerned shall update the inventory report indicating the actual location and the accountable officer of the fixed asset. Henceforth, the Supply Officer shall submit a Quarterly Consolidated Updated Fixed Assets Inventory Report to GSD-PMSD to monitor movement of NFA fixed assets. Submission of the Quarterly Consolidated Updated Fixed Assets Inventory Report shall be every 15th day after the end of each quarter.
2.
Fixed assets shall be properly valued. The acquisition cost and other expenditures incurred in connection with the acquisition of fixed assets shall be capitalized.
3.
Expenditures incurred for major repairs amounting to Php10,000 and above which increase the usefulness and/or prolong the economic life of a fixed asset shall also be capitalized.
4. The Department for Accounting Services (DAS), General Services Department, all field accounting units and Administrative and General Services Units shall strictly adhere to the SOP on Depreciation Accounting and supplemental guidelines regarding fixed asset depreciation to maintain an accurate book value of a fixed asset.
5.
Unserviceable Fixed Assets shall be reclassified/treated as Miscellaneous Asset - Junked Assets. A separate schedule for Unserviceable Fixed Asset shall also be prepared.
6.
Junked Fixed Assets shall be removed from the fixed asset inventory account after the issuance of the Inventory and Inspection Report (I & IR).
7.
Disposition of unserviceable fixed assets shall be done faithfully following the provisions of the SOP on the Disposal of Unserviceable Fixed Assets and Materials (Junk Properties) per SOP No. GS-PD14 dated May 29, 1997 and made effective June 1, 1997.
8.
The Property, Monitoring and Maintenance Section (PMMS), Property and Supply Management Division (PSMD) of the General Services Department (GSD) and the Property Units of the field offices shall be responsible in monitoring all movements of fixed assets.
9.
The Administrative Officer/Supply Officer shall prepare a Quarterly Report on Junked Properties (
Exhibit 2
) to be submitted directly to C.O. - GSD - PMMS five (5) days after end of each quarter.
10.
As much as possible, fixed assets shall remain with the office where it was originally issued. Transfer of accountability should therefore be from one employee to another within the same department/office. Exemption shall be when a whole unit/division is transferred from one department to another.
11.
The heads of offices shall be held primarily responsible for the management, expending or utilization of the NFA’s fixed assets in accordance with the existing policies and regulations, and safeguarding against loss or wastage through illegal or improper disposition.
12.
Primary accountability is vested upon the accountable officer to whom the fixed asset is issued.
B.
Specific Policies
1.
Classification
1.1
Effective July 7, 1997, only newly purchased or acquired properties with a value of P10,000 and above shall be regarded as fixed assets.
Properties classified as fixed assets prior to July 7, 1997 with a life expectancy of more than one year and with a value of P1,500 and above (i.e electric fans, clerical tables clerical chairs, etc) shall still be classified as fixed assets.
1.2
Fixed assets shall have three (3) major classifications
a)
Land and Land improvements
- consist of land and its improvement which are more or less permanent and capital in nature including property rights and interest ;
b)
Building and Structures
- consist of building and structures which are more or less permanent and capital in nature ; and
c)
Furniture, fixtures, equipment work animals and books with a value of P10,000 and above, more or less capital in nature, and which when used do not suffer any material or substantial change or alteration in size or form shall be classified as fixed assets.
1.3
To ensure uniform classification and treatment, only items listed in
Annex A
shall be considered as fixed assets.
1.4
Items not included in the list must be referred to GSD PMMS for proper coding and classification.
2.
Valuation
2.1
The acquisition cost of fixed assets with the following modes of procurement shall be determined as follows:
2.1.1
Outright purchase - net price paid for the item ;
2.1.2
Exchange for another fixed asset - fair market value of the asset received and the difference, if any, shall be charged to miscellaneous income or loss ;
2.1.3
Trade-in for another fixed asset - fair market value of the asset traded-in plus additional cash paid.
2.1.4
Grants and Donations Received - fair market value of the asset received or the value as stated in the Deed of Donation. Foreign grants and donations shall be recorded at their peso value using the conversion rate on the date of receipt.
2.1.5
GSD-OBMD shall furnish the Department for Accounting Services (DAS) with a copy of fixed asset major repairs amounting to P10,000 and above.
2.2
Expenditures incurred in connection with the acquisition of fixed assets shall be capitalized to form part of its cost as follows :
2.2.1
Land
a)
Cost of demolition, cleaning and/or grading ;
b)
Relocation or reconstruction of property belonging to others in order to acquire possession ; and
c)
Other costs directly attributable to its acquisition and to conditioning the land for use.
2.2.2
Buildings
a)
Expenditures for service equipment and fixtures made a permanent part of the structure ; and
b)
Payment for building permits, direct cost of construction and overhead directly applicable to construction if the building is constructed by administration or the total amount paid to the builder if the construction was awarded to a contractor.
2.2.3
Machinery and Equipment
a)
Cost of installation, freight and insurance costs borne by NFA to bring the property to its site of use, and
b)
Materials and other costs incurred directly and attributable to placing the equipment ready for use.
c)
For equipment -in-process
*
- the basis for capitalization shall be the terminal report. At the end of each project the concerned department should make a terminal report summarizing all expenses incurred for purposes of recording/capitalizing expenses.
*
Equipment-in-process
- equipment undergoing major
repair works.
2.3
Cost incurred after acquisition to prolong the life and/or improve the productivity/efficiency of a fixed asset shall be capitalized provided ;
2.3.1
The total amount spent is P10,000 and above and extends the life of the asset.
2.3.2
The Technical Inspection Unit (TIU), IAS/Supply Officer (Field Office) shall make the recommendation in the work order/job order for capitalizable expenditures.
2.4
Cash outlay incurred which do not satisfy the above conditions shall be treated as operating expenses and shall not affect the cost of the fixed asset.
2.5
Appraisal teams shall be created to facilitate the valuation of fixed assets with unestablished values. The teams shall be composed of the following :
a)
Central Office
Team Leader : Department Manager, GSD
Members : TSD Representative
TRDD Representative
Chief, PSMD, GSD
Chief, Gen. Accounting, DAS
Chief, TIU, IAS
Observer : COA Representative
b)
Regional Office
Team Leader : Asst. Regional Manager
Member : Regional Administrative Officer
Regional Engineer
Regional SQAO
Regional Accountant
Observer : COA Representative
c)
Provincial Office
Team Leader : Provincial Manager
Member : Provincial Administrative Officer
Sr. MPO/Plant Engineer
Provincial SQAO
Provincial Accountant
Observer : COA Representative
3.
Documentation
All fixed asset transactions shall be properly documented as follows (Please refer to
Annex B
for the documentation summary):
3.1
Acquisitions
3.1.1
Land and Buildings shall be documented by a Transfer of Certificate Title (TCT)/Original Certificate Title (OCT)/building plans, and declaration of real property. The Original copies of the TCT/OCT shall be endorsed to the Cash Division, Department for Treasury Budget and Fund Management (DTBFM) for safekeeping and the Original copies of the building plans shall be kept by the Technical Services Department (TSD) . The PMMS/Property Unit of the concerned Field Office shall be furnished copies of the aforementioned documents.
3.1.2
Receipts of newly purchased fixed assets other than land and buildings and their subsequent issuance shall be documented with a Fixed Asset Receiving Report (FARR-
Exhibit 3
) and a Fixed Asset Issuance Report (FAIR-
Exhibit 4)
respectively to be accomplished by the Department for General Services - Property and Supply Management Division (GSD-PSMD) - except in cases enumerated herein:
Case A:
Fixed Assets Purchased by C.O., delivered in C.O.
(examples are
:
computers
,
fogging machines,
moisture meters, etc.)
A.1
For Computers Purchased by C.O. delivered to MSD
a)
Upon receipt of the newly purchased computers, the Management Services Department (MSD) shall prepare the FARR which shall be signed by the Chief, MSD-MISD on the
“Noted by”
portion of the document. The
“Received by”
portion of the FARR shall be signed by the designated supply officer in MSD.
b)
Before deployment, MSD shall prepare a Deployment/Distribution List (
Exhibit 5
) indicating Serial Number, location where the computer will be deployed and FAIR/MR number. MSD shall provide the GSD-PMSDS with a copy of the Deployment/Distribution List for property coding. After the newly purchased equipment have been coded the Deployment List will be sent back to MSD for the preparation of FAIR (if the equipment will be issued to field offices) or MR (if the equipment will be issued to C.O).
c)
After deployment the designated supply officer in MSD shall provide DAS a copy of FAIR for the preparation of Advice.
A.2
For fogging machines/moisture meters and other
equipment purchased by C.O. delivered to TRDD
a)
Upon receipt of the newly purchased fixed assets the Technical Resource Development Department (TRDD) shall prepare the FARR which shall be signed by the Chief, GSD-PSMD on the
“Noted by”
portion of the document. The
“Received by”
portion of the FARR shall be signed by the concerned Division Chief of TRDD.
b)
Before deployment, TRDD shall prepare a Distribution List (follow format on Exhibit 5) indicating the serial number of units and the location where the units will be deployed. TRDD shall provide the GSD-PMSDS with a copy of the Distribution List for the preparation of FAIR. After deployment the GSD-PMSDS shall provide DAS a copy of FAIR.
c)
To document properties to be transferred, GSD-PSMD shall prepare the FAIR signed by its Chief on the “Approved by” portion. GSD-PMMS shall indicate the property code of the equipment in the FAIR and the distribution list prepared by TRDD.
Case B:
Purchased by C.O., directly delivered to F.O. (example:
generator sets, mechanical driers, packaging machines
purchased by the Technical Services Department (TSD)
a)
Whenever there is a delivered equipment in the field office the concerned Supply Officer shall immediately furnish the GSD-PMSDS, the DAS. the F.O. Accounting unit and the local TSD personnel with a photocopy of the delivery receipt (DR) for information purposes.
b)
The local TSD Personnel of the concerned NFA Provincial Office shall, immediately upon the acceptance of the equipment/machinery(ies), (supported by satisfactory performance test), submit to TSD Central Office a Certificate of Acceptance, copy furnished DAS and GSD-PMSDS.
c)
On the basis of the Certificate of Acceptance, the concerned local Supply Officer shall document the acceptance of the equipment/machinery(ies) by accomplishing the required FARR. He/She shall sign on the
“Received by
” portion of the FARR while the Chief of GSD-PSMD shall sign on the
“Noted by”
portion of the document.
d)
The concerned local TSD Technical Personnel shall see to it that the local Supply Officer is always furnished with a copy of Certificate of Acceptance to inform him/her of any equipment/machinery(ies) that are being formally accepted by NFA, as basis for the preparation of FARR.
e)
To document equipment issued to the field offices GSD-PMSDS shall prepare the FAIR based on the
Acceptance Report
and FARR signed by the Chief, GSD-PSMD.
Note:
Where the responsibility to deploy/distribute computers, fogging machines and other equipment is given to the Regional Office, the Deployment/Distribution List must be strictly followed by the issuing Supply Officer in the regional office. Any deviation in the Deployment/Distribution list is considered a violation of this SOP and shall subject them to administrative sanctions as defined in the last paragraph of Item III.E. of the SOP.
.
3.1.3
The purchase of fixed assets shall be governed by the SOP on Central Office/Field Office Purchasing System.
3.1.4 All fixed asset acquisition and receipts whether from purchase (local and importation), fabrication, transfers and donation shall be properly documented as prescribed in this SOP and all documentation shall be coordinated with PSMD, GSD/Property Units of Field Offices.
3.1.5
The receiving office shall refer to Annex B for the documentation procedure.
3.2
Issues to Employees
3.2.1
Issues of fixed assets to employees shall be documented by a Memorandum Receipt (MR-
Exhibit 6
).
3.2.2
MRs for newly purchased fixed assets issued by the GSD-PMSDS including computers/equipment/machineries issued by MSD/TRDD/ TSD repespectively shall be signed by the Department Manager of General Services Department (DM, GSD).
3.2.3
MRs for property in the custody of an official or employee shall be renewed by the concerned Administrative Assistant every two (2) years during physical inventory taking, signed by the Department Manager concerned, copy furnished GSD-PMMS. MRs involving transfers of properties to other departments shall be approved by the GSD-PMMS. PMMS shall furnish DAS-GAD a copy of the MR.
3.3
Transfer of Fixed Assets from C.O. to F.O. or from One F.O. to Another
3.3.1
Transfer of fixed assets from Central Office (C.O.) to field offices (F.O.) and vice-versa or from one field office to another shall require the preparation of the Fixed Asset Issuance Report (FAIR-Exhibit 4) by the issuing Supply Officer and the Fixed Asset Receiving Report (FARR-Exhibit 3) by the receiving Supply Officer.
3.3.2
Transfer of fixed assets from F.O. to C.O. or from one F.O. to another for purposes of repair shall be acknowledged in the Work Order (WO) and the Job Order (JO) respectively by the employee who will repair the equipment. FARR shall only be prepared by GSD if the equipment will not be returned but will be permanently junked.
3.3.3
GSD-PSMD/PMSDS shall issue and accomplish the FAIR and FARR accountable forms whenever fixed assets are transferred from the C.O. to the field offices and vice versa. The Department for Accounting Services (DAS) shall be immediately furnished their respective copies of accomplished FAIR/FARR.
3.4
Transfer within the same Office/Department
3.4.1
Transfer of property accountability from one employee to another within the same department/office shall be documented by preparing a new MR for the receiving employee and canceling the MR of the employee issuing the property. The new MR shall be signed by the Department Manager concerned.
3.4.2
A copy of the MR shall be given to GSD-PMMS as basis for clearing the issuing employee of his accountability and for updating GSD records.
3.5
Return of Fixed Assets to the Supply Officer
GSD-PMSDS shall prepare a Receipt for Returned Property (RRP-
Exhibit 7
/
Exhibit 7.1
) for a fixed asset surrendered and returned by an accountable officer cc: PMMS/Supply Officer who will cancel the MR.
Fixed Assets for transfer to field offices shall first be surrendered to GSD-PMSDS which shall be responsible for transferring the FA to field office.
3.6
Issues/Receipts to/from Repairs/Fabrication
3.6.1
Requests for fabrication of a furniture or fixture must be supported by a Work Order (WO), if work is to be done by NFA or a Job Order (JO), if a private contractor has been commissioned to do the job.
3.6.2
Receipt of fabricated furniture or fixture done in-house and by private contractors shall be acknowledged in the WO and the JO respectively, by the receiving party.
3.6.3
The GSD-PMMS in coordination with GSD-AFSD shall determine the cost of the fabricated furniture or fixture. An MR shall then be prepared as soon as the fabricated property has been finished and issued.
3.6.4
All fabrications shall, likewise be subject to pre-repair and/or post repair inspection by TIU, IAS/designated Property Inspector (field office).
3.6.5
The SOP on Repair/Maintenance/Fabrication of Central Office Furniture, Equipment and Facilities (SOP NO. GS-PD09) effective October 6, 1987 and its amendments/addenda issued thereto covers the details on repairs and fabrication of fixed assets.
3.7
Disposal of Unserviceable Fixed Assets
3.7.1
Unserviceable fixed assets shall be immediately surrendered to the Supply Officer by the concerned accountable employee/user and shall be covered by a Receipt of Returned Property (RRP). Same shall be immediately reported to DAS/Accounting Section by the Supply Officer.
3.7.2
Disposal of junked property shall always be covered by an Inventory and Inspection Report (I & IR) copy furnished GSD-PMMS and DAS/Accounting Unit (F.O.).
3.7.3
Properties surrendered to the Supply Officer which are already approved for disposition shall remain to be the accountability of the Supply Officer until such assets are physically disposed and written-off in the books of accounts.
3.7.4
The write-off in the records shall be documented by FAIR. The FAIR shall be prepared upon physical disposition of the fixed asset with the corresponding I & I Report. DAS/Accounting Units shall be provided with a copy of FAIR and I & I Report as basis for recording in the books of accounts.
3.7.5
The Revised SOP on Disposal of Unserviceable Fixed Assets and Materials (Junk Properties) (SOP No. GS-PD14) issued on May 29, 1997 and made effective June 1, 1997 and its amendments/addends issued thereto discusses the details on disposition of fixed assets.
3.8
Lost Asset
3.8.1
The employee accountable for a lost fixed asset shall file, within thirty (30) days from date of loss, a Request for Relief of Property Accountability which shall be submitted to the Commission on Audit (COA) with the available supporting evidence such as Affidavit of Loss, Joint Affidavit of two disinterested persons, Memorandum Receipt and a Police Investigation Report if lost outside the office. However, if lost within the office, the Investigation Report of the Provincial Investigators/IPD-IAS shall suffice.
The Request for Relief of Property Accountability of employees accountable for lost fixed asset in the field offices shall be submitted directly to the field office COA Auditors.
3.8.2
The concerned employee shall only be cleared of his accountability upon the issuance by the Corporate Auditor of a Relief of Accountability through GSD which is only issued if the circumstances surrounding the loss is beyond the control of the said employee.
The GSD-PMMS shall furnish DAS with a copy of the Relief of Accountability as basis for writing-off from the books and shall give the accountable officer his/her personal copy of the adjusting Journal Voucher.
If the accountable officer is relieved from accountability, the PMMS shall cancel the corresponding MR and it shall attach to it a photocopy of the Relief from Accountability issued by COA.
4.
Accountability and Responsibility
4.1
For Central Office, newly acquired assets shall be the responsibility of the GSD, Department Manager and shall be the accountability of the Chief of PMSDS until MRs are issued to an accountable officer or employee.
For cases discussed in Item 3.1.2, fixed assets shall be the responsibility of the Department Manager concerned (MSD, TRDD and TSD) until FAIR has been issued based on the Distribution List, Acceptance Report and/or FARR submitted by the MSD, TRDD and TSD to GSD-PMMS.
4.2
For field offices, the Supply Officer shall be directly responsible for receiving and establishing custodianship of each asset. As such, assets received by the office with no existing MRs shall be the Supply Officer’s accountability.
4.3
The employee shall be held primarily accountable and secondarily responsible for all properties issued to him as specified in the MR.
4.4
The Head of Office (for Provincial and Regional Offices, Central Office department/offices) shall exercise the diligence of a good father of a family in supervising accountable officers under his control to prevent the incurrence of loss.
4.5
Every officer accountable for NFA fixed assets shall be liable for the improper or unauthorized use or misapplication thereof, by himself or any person for whose acts he may be responsible. He shall likewise, be liable for all losses, damages, or deterioration due to negligence in the keeping or use of the property, whether or not it was in his custody during the time of loss or damage.
4.6
In case of loss due to the fault of the accountable officer, he/she shall restitute the lost asset or made to pay the corresponding replacement cost based on the provisions of SOP No. FS-GP18 entitled SOP on the Application of Replacement Cost issued and made effective December 7, 2000.
If the accountable officer opts to pay the replacement cost he/she shall secure an Authority to Accept Payment (AAP) from the PSMD to document purpose of payment. The Chief of the PMMS shall affix his/her initials in the AAP prior to the approval of the Chief of PSMD. After payment and receipt of two copies of the OR, the accountable officer shall give one copy of the OR to PMMS which shall be the latter’s basis in cancelling the MR.
5.
Physical Inventory
5.1
Physical Inventory of fixed assets shall be conducted annually to establish balances as of July 31, of each year.
5.1.1
The physical counting shall be conducted within August 1-15 for Central Office and within August 1-18 for field office.
5.1.2
The Inventory Report shall be prepared and certified correct by the committee in charge thereof, witnessed by the auditor and approved by the head of office.
5.2
The Inventory Report shall immediately be reconciled with accounting and inventory records as of July 31.
5.3
Regional/Provincial office inventory reports shall be submitted to the Central Office Inventory Committee on or before September 15. Central Office inventory reports shall be due every September 30. National Inventory reports shall be due every November 30.
Failure to submit the reports on specified deadline shall be considered as neglect in the performance of duty and the concerned personnel shall be administratively charged pursuant to CSC rules on administrative cases.
5.3.1
Copy distribution of the report shall be as follows :
Copy 1 - PSMD/PMMS-GSD for editing and consolidation
prior to submission to COA
2 - Accounting Unit
3 - Local COA Unit
4 - Department/Office file
5.4
The Inventory Committees shall be organized as follows :
5.4.1
National Inventory Control Committee
Chairman : Asst. Adm. for Administration
Members : GSD, Asst. Dept. Manager
IAS, Asst Dept. Manager
DAS, Asst. Dept. Manager
TSD, Asst. Dept. Manager
TRDD, Asst. Dept. Manager
Observer : COA
The National Inventory Control Committee (NICC) shall be responsible for providing directions on inventory taking and shall monitor the activities of all inventory committees. The same committee shall be responsible for the rendering of the consolidated inventory report to COA.
5.4.2
Central Office Inventory Committee
Chairman : Chief, PSMD, GSD
Members : Chief, GAD, DAS
Chief, TIU, IAS
Chief, PMMS, PSMD, GSD
Administrative Assistant, Dept. concerned
Observer : COA Representative
The Central Office Inventory Committee shall be responsible for the fixed asset inventory taking in the Central Office and in the consolidation and
submission of the inventory report to the NICC.
5.4.3
Regional Office Inventory Committee
Chairman : Asst. Regional Manager
Members : Regional Accountant
Regional Engineer
Regional Adm. Officer
Observer : COA Representative
The Regional Office Inventory Committee shall be responsible for the physical inventory taking of the fixed assets in the regional office and in the preparation and
submission of inventory report to the NICC.
5.4.4
Provincial Office Inventory Committee
Chairman : Provincial Manager
Members : Provincial Adm. Officer
Supply Officer
Plant Engineer/Sr. MPO
Provincial Accountant
Observer : COA Representative
The Provincial Office Inventory Committee shall be responsible for the physical inventory taking of the fixed assets in the provincial office and in the preparation and
submission of inventory report to the NICC
.
5.5
Members of inventory teams conducting the count and reconciliation shall be relieved from their office functions to expedite the completion of this undertaking.
5.6
All fixed assets regardless of location shall be covered by the count.
5.7
Presentation in the inventory report shall be based on fixed asset grouping/classification.
5.8
The inventory report on fixed assets shall be used to support the adjusted book balance of the fixed asset accounts and monitor employee accountabilities.
5.9
Inventory teams must see to it that fixed assets are properly documented by an MR.
5.10
Accessories to fixed assets shall be considered part of the asset but shall have a separate property code as discussed in Section II.B.6.
5.11
The GSD-PSMD thru the GSD-PMMS shall coordinate with the respective Administrative Assistants regarding accountabilities of the employees in their departments including maintenance of complete file of MRs.
5.12
Transhipments/purchases are temporarily suspended for the duration of the count.
5.13
Inventory Teams shall exert maximum effort to locate each missing item.
5.14
Verification shall be done for items included in the books and missing during the count.
Such items must first be referred to the NICC before they are dropped from the books.
5.15
Construction in progress must be accounted for in terms of percentage of payment made by NFA and percentage of completion.
5.16
Inventory per count must be reconciled per book of accounts.
5.17
Adjustments must be made in the books for items still unreflected/unrecorded but existing per count.
5.18
Missing assets which cannot be located after exhaustive search must be properly noted as missing in the remarks column of the Inventory Report Sheet (IRS).
5.19
After the inventory count, GSD-PMMS shall update the employees of their accountabilities.
6.
Property Identification and Coding
6.1
Property Identification and Coding shall be centralized with GSD-PMMS. Field offices shall coordinate with GSD-PMMS for identification and coding of locally purchased properties. Property code shall be perpetual regardless of fixed asset location.
6.2
All fixed assets acquired from purchase, fabrication, transfer and donation, shall be assigned a property code to be painted on a conspicuous part of the asset by the GSD-PMMS/Supply Officer.
6.3
The property code of fixed assets transferred/disposed/donated shall be properly noted accordingly in the property records/books.
6.4
Fixed asset code numbers shall be alpha-numeric and shall follow the format in
Annex C
.
6.5
Assignment of property codes shall be independent from one department/office to another.
Ÿ
Property coding per type of asset shall be chronological.
Ÿ
Property codes
assigned by GSD- C.O. to an asset shall be permanent
and should not be changed even when transferred.
Ÿ
Illustration:
C.O.-TSD purchased four units (4) of Packaging Machines. Batangas and Cabanatuan got two (2) units each of the equipment. The equipment should be coded as follows :
Batangas Shipment
:
Packaging Machine No. 1 : 01-NFA-401-WE-H001
Packaging Machine No. 2: 01-NFA-401-WE-H002
Cabanatuan Shipment
:
Packaging Machine No. 3: 01-NFA-301-WE-H001
Packaging Machine No. 4: 01-NFA-301-WE-H002
6.6
Numeric elements shall be printed in Arabic form while alpha elements shall be in bold print similar to the upper case letters in the English alphabet.
6.7
Painting of property codes shall be done in the following locations:
6.7.1
Furniture and Fixtures
a)
Tables - Right hand edge of the table top facing the user
b)
Chairs - Back portion of the backrest of the chair
6.7.2
Office Equipment
Back portion of the equipment except for filing cabinets which must be coded in front at the upper right hand corner.
6.7.3
Motor Vehicles
At the rear bumper for those with security plates (codes to be painted on the inside surface of the compartment hood).
Illustration:
___________________________________________
:84-NFA-GSD LT-A001
____________________________________________
REAR BUMPER
6.7.4
Post-Harvest Facilities
a)
Machineries - Outside surface of the engine’s housing/block
b)
Equipment - part of the equipment that is not detachable
6.7.5
Communication/Audio Visual Equipment - Back portion of the equipment
6.7.6
Firearms
Ÿ
Bottom portion of the equipment
Ÿ
If bottom is corrugated, on the side of the handle
6.8
Lands and Buildings shall be exempted from the coding system.
6.9
If properties are for repainting/re-varnishing/reupholstery/repair the Property Custodian/Supply Officer/carpentry personnel shall see to it that property codes are repainted on the same assets and on the same location.
6.10
The inventory team should consult the personnel handling properties with sensitive parts so as not to cause damage to said properties while the code is being painted.
7.
Monitoring
7.1
The GSD-PMMS and the field office property unit shall maintain an efficient monitoring system for fixed assets. The GSD-PMMS and the Property Units in the Provincial Offices shall serve as the data bank of property information and as such shall bear the following responsibilities:
7.1.1
Monitoring of fixed asset movement, status, number and cost ;
7.1.2
Tracking of repair and maintenance activities conducted on each fixed asset except for vehicles and air conditioners in the Central Office which is the responsibility of the GSD-Office Facility Maintenance Section (OFMS).
7.1.3
Providing Management with timely, relevant and accurate information/reports concerning the agency’s fixed assets;
7.1.4
Providing the Insurance, Billing and Collection Division (DAS-IBCD) with an accurate listing of properties acquired to facilitate insurance of the fixed assets.
7.1.5
Assisting DAS/Accounting Section with collection of cost data on the
agency’s fixed assets.
7.2
The following records shall be prepared and updated by the General Services Department (GSD) in order to maintain an efficient data bank:
7.2.1
History Card - shall be prepared for each fixed asset to record its historical cost, specifications and other relevant data pertaining to the fixed asset such as cost of repairs and maintenance including details on parts and materials used, labor and other overhead. There shall be four (4) types of history cards and the type to be prepared shall depend on the general classification on which the fixed asset falls :
a)
Equipment History Card (
Exhibit 8
)
All items falling under account codes 79-811, 79-812 and 79-821.
b)
Vehicle History Card (
Exhibit 9
)
All items belonging to account codes 79-813, 79-814.2, 79-815, 79-816, 79-817, 79-818, 79-819, 79-820, 79-822, 79-823, and 79-824.
c)
Machinery History Card (
Exhibit 10
)
All items covered by account codes 79-814.1, 79-814.3 and 79-814.5
d)
Land/Building History Card (
Exhibit 11
).
7.3
Other provisions regarding movements of fixed asset not covered herein, shall be properly reported to GSD-PMMS for updating (Ex. Lost assets, retired, destroyed by fire).
7.4
The following personnel/offices shall assist the GSD-PMMS in the development/maintenance of the data bank to ensure its efficiency by accomplishing the tasks specified as follows :
7.4.1
Property Custodian/Supply Officer (Field Office)
a)
Preparation of a report on Capital Expenditures
(Exhibit 12
) to be submitted to the GSD-AFSD cc: GSD-PMMS at the end of each quarter.
b)
Maintenance of fixed asset history cards and ledger cards similar to those being maintained by GSD-PMMS; and
c)
Reporting of fixed asset condition, acquisition and issuance by submitting the Fixed Asset Transaction Report
Exhibit 13
) quarterly to GSD-PMMS with the accountable forms attached.
7.4.2
Chief, Office Facility Maintenance Section (OFMS,GSD)
a)
Monthly reporting of fixed asset fabrication, capital expenditure, and repair and maintenance using the prescribed form in
Exhibit 14
.
b)
Supervision of painting of property codes on all fabricated properties which must be coordinated with PMMS.
8.
Accounting Treatment
Pro-forma Journal entries are contained in
Exhibit 15
.
III.
RESPONSIBILITIES
A.
Receipt of Fixed Asset from Supplier
1.
Central Office
1.1
Property and Material Storage and Disposition Section (PSMD-PMSDS)
a)
Acknowledges receipt of FA in the DR of Supplier
b)
Requests inspection of deliveries
c)
Prepares FARR and retains FARR copy 2 (Pink copy)
d) Forwards FARR copy 1 (white copy) to Issuing Party (MSD-computers/TRDD-equipment & machineries/GSD), Copy 3 (blue copy) to GSD-PMMS and Copy 4 to DAS (yellow).
1.2
Division Chief - Property and Supply Management Division (PSMD)
Signs on FARR
1.3
PSMD-Purchasing Section
a)
Prepares voucher with FARR copy - and other supporting documents attached.
b)
Prepares voucher/PO/LO/JO pertaining to the acquisition of spare parts/repair of equipment copy furnished GSD-PMMS.
c)
Routes voucher to DAS - Claims and Processing Division for processing.
1.4
PSMD-Property Monitoring and Maintenance Section (PMMS)
Updates Fixed Asset Inventory Report, Ledger card and history card of equipment, machinery and vehicle based on FARR.
2.
Field Office
2.1
Supply Officer
a)
Acknowledges receipt of FA in the DR of supplier
b)
Prepares FARR and secures signature of PM/OIC on FARR copies.
c)
Forwards FARR Copy 4 to Accounting Section.
d)
Prepares voucher and forwards same to Accounting Section with FARR copy - and other supporting documents attached.
e)
Updates Fixed Asset Inventory Report, ledger card and history card of equipment, machinery and vehicle based on FARR Copy 3/PO/LO/JO.
f)
At the end of the quarter, prepares and sends Fixed Asset Transaction Report to GSD-PMMS with supporting documents.
2.2
Provincial Manager/OIC
Signs on FARR and returns same to Supply Officer
B.
Fixed Asset Issuance to Employee by the Supply Officer
1.
PMSDS
(C.O.)
a)
Prepares MR.
b)
Signs on the issued by portion of the MR.
c)
Secures signature of accountable officer
d)
Distributes MR copies accordingly ( Copy 1 to PMMS, copy 2 to PMSDS, copy 3 to Accountable Officer and copy 4 to the Administrative Asst.)
2.
Supply Officer (F.O.)
a)
Prepares MR.
b)
Signs on the issued by portion of the MR.
c)
Secures signature of accountable officer
d)
Distributes MR copies accordingly ( Copy 1 to Supply Officer, copy 2 to Accountable Officer, copy 3 to Accounting Section and copy 4 file)
3.
Chief, PSMD/Provincial Manager
Approves MR.
C.
Transfer of FA from C.O. to F.O. or from One F.O. to Another
1.
PMSDS (C.O.)
a)
Prepares FAIR and secures approval of head of office.
b)
Issues the fixed asset with FAIR Copy.
c)
Distributes FAIR copies accordingly. Copy 1 to Issuing Party (white copy), Copy 2 (pink copy) to PMSDS Copy 3 (blue copy) to GSD-PMMS and Copy 4 to DAS (yellow).
d)
Updates Fixed Asset Inventory Report, ledger card and history card of equipment, machinery and vehicles based on FAIR.
2.
Issuing Supply Officer (F.O.)
a)
Prepares FAIR and secures approval of head of office.
b)
Issues the fixed asset with FAIR Copy.
c)
Distributes FAIR copies accordingly. Copy 1 to Issuing Party (white copy), Copy 2 (pink copy) to PMSDS Copy 3 (blue copy) to GSD-PMMS and Copy 4 to DAS (yellow).
d)
Updates Fixed Asset Inventory Report, ledger card and history card of equipment, machinery and vehicles based on FAIR.
3.
PSMDS (C.O.)
a)
Receives fixed asset.
b)
Prepares FARR and distributes FARR Copies (copy 1 to Issuing Party (white copy), Copy 2 (pink copy) to PMSDS, Copy 3 (blue copy) to GSD-PMMS and Copy 4 to DAS (yellow).
c)
Updates Fixed Asset Inventory Report, ledger card and history card of equipment, machinery and vehicle based on FARR.
4.
Receiving Supply Officer (F.O.)
a)
Receives fixed asset.
b)
Prepares FARR and distributes FARR Copies (copy 1 to Issuing Party (white copy), Copy 2 (pink copy) to PMSDS, Copy 3 (blue copy) to GSD-PMMS and Copy 4 to DAS (yellow).
c)
Updates Fixed Asset Inventory Report, ledger card and history card of equipment, machinery and vehicle based on FARR.
D.
Transfer of Fixed Asset within the same Office
Central Office
1.
Employee (Issuing)
a)
Informs the Administrative Assistant of the FA transfer and requests for the preparation of new MR for the receiving employee.
b)
Signs on the “Issued by” portion of the MR
2.
Administrative Assistant
a)
Prepares new MR and secures signature of both the issuing and receiving employees.
b)
Forwards new MR to the Head of Office/Department for approval.
c)
Forwards approved MR to Chief, GSD-PMMS for cancellation of the old MR.
d)
Furnishes issuing employee a copy of the new MR and cancelled MR.
Field Office
1.
Employee (Issuing)
a)
Informs the Supply Officer of the FA transfer and requests for the preparation of new MR for the receiving employee.
b)
Signs on the “Issued by” portion of the MR
2.
Supply Officer
a)
Prepares new MR and secures signature of both the issuing and receiving employees.
b)
Forwards new MR to the Head of Office for approval.
c)
Cancels new MR and furnishes issuing employee a copy of the new MR and cancelled MR.
E.
Return of FA to the Supply Officer by Accountable Employee
Central Office
1.
Accountable Employee
Verifies property with GSD-PMMS.
2.
GSD-PMSDS
a)
Prepares RRP
b)
Requests for inspection by IAS and receives fixed asset
c)
Forwards copy of RRP to GSD-PMMS
3.
GSD-PMMS
a)
Cancels corresponding MR based on RRP.
b)
Updates Fixed Asset Inventory Report, ledger card and history card of equipment, machinery and vehicle based on RRP.
Instructions on how to fill up fixed assets documents are presented in
Annex D
.
Officials/employees shall strictly follow the documentation procedures of fixed asset movements
.
Negligence in the documentation shall be considered a violation of this SOP and shall in accordance with PD807 and RA 6713, subject them to the administrative offense of violation of Reasonable Office Rules and Regulations and shall upon conviction suffer the penalty of Reprimand, suspension or Dismissal as the case maybe.
All ruling and/or issuances inconsistent herewith are hereby superseded
.
III. RESPONSIBILITIES
IV. FLOW CHART
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