SOP Library

SOP NO: GS-PD25    (List of Exhibits/Attachments)


Mission: Finance and Administration

Area: General Services (GS)

Activity: Purchasing/Inspection and Fixed Asset Disposition (GS-PD)

Title: REVISED SOP ON SUPPLIES AND MATERIALS (INVENTORIES) MANAGEMENT AND CONTROL SYSTEM

Date Approved/Issued: 12/13/2018

Date Effective: 12/13/2018

Digest:

Hide details for I. TERMS OF REFERENCEI. TERMS OF REFERENCE

Hide details for II. IMPLEMENTING GUIDELINESII. IMPLEMENTING GUIDELINES


For the information, guidance and compliance of all concerned, published hereunder is the Revised SOP on Supplies and Materials (Inventories) Management and Control System. This supersedes SOP No. GS-PD16 (Revised Supplies and Materials Management and Control System) approved March 25, 1999, and its Amendment/Addendum (GS-PD16.A), approved July 16,


E. DEFINITION OF TERMS

1. Inventories – citing Chapter 8, Sec. 2, item c.2 of the GAM as applicable for NFA, these are assets in the form of materials or supplies to be consumed or distributed in the rendering of services (examples: office supplies, ammunitions, maintenance materials).

NFA inventory items are composed of IHC and semi-expendable properties.

2. Inventories Held for Consumption (IHC) or Expendable Supplies and Materials – articles which are normally consumed within one (1) year or converted in the process of manufacture or construction or those having a life expectancy of more than one (1) year but which shall have decreased substantially in value after being put to use for only one (1) year (e.g. medicines, stationery, fuel, and spareparts. (Sec. 5 [Definition of Terms], item m of IRR of RA 9184) commonly referred to as consumable supplies and materials.

3. Semi-Expendable Property - are tangible items below the capitalization threshold of Fifteen Thousand Pesos (P 15,000.00) (Chapter 8, Section 10 of new GAM).

4. Prevailing Market Value – Selling price in the market at the time of payment of the lost item.

5. Inspection – shall refer to the process of measuring or checking materials, workmanship or methods in conformity with ocular quality/condition, quantity and specifications.

F. ACRONYMS :

1. GSD- PSMD – General Services Department – Property and Supply Management Division

2. AGS – Administrative and General Services (in the field offices)

3. FDC-SSD – Food Development Center – Support Services Division

4. SSID – SSD - Security Services and Investigation Department – Security Services Division

5. ASD – COAD – Accounting Services Department – Central Office Accounting Division

6. ASD-CD – Accounting Services Department – Claims Division

7. TRSD – QAD – Technical Research and Services Department – Quality Assurance Division

8. TRSD – MD – Technical Research and Services Department – Metrology Division

9. ISD – IRD – Industry Services Department – Industry Regulation Division

10. HRMD - HSU – Human Resource Management Department – Health
Services Unit

G. RECORDS, FORMS AND REPORTS TO BE PREPARED AND/OR MAINTAINED :

1. Stock Card (SC) (Exhibit 1) – shall be used by the GSD-PSMD/AGS/FDC-SSD/SSID-SSD and HRMD-HSU for each type of supplies / ammunitions / medicines, to record all receipts and issues made and the balance in quantity. The Delivery Receipt (DR), Purchase Order (PO) Inspection and Acceptance Report (IAR), Requisition and Issue Slip (RIS) serve as original source of information for making entries on the stock card.

The balance per stock card shall be reconciled regularly by the said offices with the Supplies Ledger Card (SLC) maintained by the ASD-COAD for Central Office/Accounting Unit for Field Offices.

2. Supplies Ledger Card (SLC) (Exhibit 2) - shall be used by the ASD-COAD for Central Office/Accounting Unit for the field offices, for each type of supplies to record all receipts and issues made and the balance in quantity and amount. The IAR, RIS, RSMI, PO and DR serve as the original sources of information for making entries in the SLC.

The semestral physical inventory of supplies shall be reconciled with the SLCs and ASD-COAD/Accounting Unit records. Any discrepancies shall be immediately verified and adjusted.

3. Requisition and Issue Slip (RIS) (Exhibit 3) – shall be used by the Central Office departments and field offices for requisitioning of supplies and materials that are carried in stock “For issue” and those that are not carried in stock “For purchase”.

All items requested shall be based on the approved NFA Annual Procurement Plan (APP).

4. Purchase Request (PR) (Exhibit 4) – shall be used by the departments/offices in purchasing inventory items that are not available on stock.

Based on the approved PR, the GSD-PSMD/AGS/FDC-SSD shall prepare and process the PO for the procurement of the item/s requisitioned.

5. Purchase Order (PO) (Exhibit 5) – shall be used by the GSD-PSMD/AGS/FDC-SSD, to purchase supplies and materials. It shall be addressed to a supplier and shall contain the quantity and specification of supplies/materials to be purchased with terms and conditions.

6. Report of Supplies and Materials Issued (RSMI) (Exhibit 6) – a form prepared by the GSD-PSMD/AGS/FDC-SSD/ SSID-SSD/HRMD-HSU to report to ASD-COAD/Accounting Unit all issues of Inventories (by stock number) during the day. This shall be based on the RIS and shall be used by ASD-COAD/Accounting Unit as basis in preparing the JEV.

7. Waste Materials Report (WMR) (Exhibit 7) – shall be used by the GSD-PSMD/AGS/FDC-SSD to report all waste materials such as destroyed spare parts and other materials considered scrap due to replacement to be submitted to ASD-COAD/Accounting Unit so that items previously taken up in the books of accounts as assets or in their custody may be properly disposed of and derecognized from the books.

8. Report on the Physical Count of Inventories (RPCI) (Exhibit 8) – a form used by the Inventory Committee to report the physical count of inventory items by type. This shall include the name of the article, description, stock number, unit of measure, unit value, balance per card, balance on hand per count, shortage and overage. It shows the balance of inventory items per card and per count and the shortage/overage, if any. These shall also include the semi-expendable property wherein the issue is covered by ICS.

It shall be prepared semi-annually by the Inventory Committee.
The report shall be reconciled with the SLCs and SCs maintained by the ASD-COAD/Accounting Unit and GSD-PSMD/AGS/FDC-SSD, respectively. Any discrepancy shall be verified and/or adjusted accordingly.

9. Inspection and Acceptance Report (IAR) (Exhibit 9) – a report submitted by the Property Inspector on the inspection and acceptance of the purchased and delivered property, supplies and materials.

The form shall be used to report the result of the inspection made by the Property Inspector on the deliveries and the status of the accepted items by the GSD-PSMD/AGS/FDC-SSD.

10. Inventory Custodian Slip (ICS) (Exhibit 10) - a form used to issue semi-expendable properties to employees.

The form shall be signed and dated by the GSD-PSMD Chief/RAO/PAO/FDC-SSD Chief on the “Received from” portion if issued after delivery by supplier/by the issuing employee if transfer of accountability. It shall be signed and dated by the recipient employee on the “Received by” portion.

11. Supplies and Materials Issuance Report (SMIR) (Exhibit 11) – the form used by the Central Office to document transfers of IHC and/or semi-expendable properties to Regional/Provincial Office.

12. Supplies and Materials Receiving Report (SMRR) (Exhibit 12) – the form used by the field office to document receipt of IHC and/or semi-expendable properties to an official/employee.

II. IMPLEMENTING GUIDELINES B. CUSTODIANSHIP In order to have a systematize procurement process, the calendar of activities to be followed in the procurement of IHC and semi-expendable properties shall be as follows:
OPERATIONAL

TIMELINE

PROCUREMENT ACTIVITY
RESPONSIBLE DEPARTMENT/OFFICE
4th Monday of July

2nd Monday of August

2nd Monday of

September

4th Monday of

September

2nd Monday of

October

1st week of January of the

succeeding year

2nd week of

January

Central Office departments/field offices to formulate Project Procurement Management Plan (PPMP) and submit requirement for IHC and semi expendable properties for the succeeding year.

Submits PPMP to BTFMD for evaluation and budgetary requirement of IHC and semi expendable properties.

PPMPs with budget approval of IHC and semi-expendable properties requirement for Central and Field Offices shall be forwarded to Bids and Awards Committee (BAC) Secretariat for consolidation into an Indicative Annual Procurement Plan (IAPP).

Submission to NFA-DBCC for final approval and confirmation of the NFA Administrator.

Submission of supplies requirement to DBM-PS and/or conduct early outsource from private suppliers, for those supplies and materials not available with DBM-PS.

Acceptance of delivery; Issuance of requested IHC and semi-expendable properties to departments / offices.

Ordering of IHC and semi expendable properties for the next 2 month’s consumption.

All departments/offices

GSD/AGS

GSD/AGS/BAC

CPMSD–CPD thru BAC

GSD

GSD/AGS

GSD/AGS

RIS1-XXXX-YY-MM-XXXXXX
(Note : Office Location Library, is attached as Annex E) RIS2–XXXX-YY-MM-XXXXXX YY - shall refer to the year Ex : 2018

MM - shall refer to the month Ex : 03 for March
XXXXXX – shall refer to the control number Ex : 000003

Ex : PR-8800-18-03-000003 (for the 3rd PR issued to ISD for March 2018

G. PROCEDURES IN THE REQUISITION AND ISSUE OF INVENTORY ITEMS FROM GSD-PSMD/AGS AND FDC-SSD
Area of Responsibility
Sequence No.
Activity
G.1 Supplies and materials for

Offices/departments (See Annex

C.1 for the Flowchart)

RAMs of Central Office Departments / Requisitioning Personnel of FDC and Field Offices

Division Chiefs of C.O Departments / Requesting Personnel of FDC and FO

Head of Office/Chief of Staff of Exec. Offices/Concerned DCs of FDC/Concerned Section Chiefs of FOs

RAMs of C.O. Department/Requesting Personnel of FDC and FOs

GSD-PSMD/AGS/FDC-SSD

Supply Officer

GSD - PSMD Chief / FDC-SSD Chief / RAO / PAO

GSD-PSMD/AGS/FDC-SSD/

Supply Officer

Requesting RAM/ Requesting Personnel




GSD-PSMD/AGS/FDC-SSD Supply Officer

Division Chief, GSD-PSMD/ RAO/PAO Chief/FDC-SSD Chief

GSD Dept. Manager/RM/PM

Stock Card Keeper



FDC-SSD Accountant



ASD-COAD/Accounting Unit





Division Chief, COAD/

Accountant IV/SAS

Accounting Staff




Bookeeper

G.2 Other supplies and materials

as mentioned in item II.B.1

(See Annex C.2 for the flowchart)

Requisitioning employee

Division Chief concerned

Head of Office

GSD/FDC

GSD-PSMD Chief/FDC-SSD Chief

GSD-PSMD/FDC-SSD

GSD

HRMD-HSU/TRSD-QAD/TRSD-MD/SSID-SSD/FDC SSD/ISD-IRD and ASD-CD

GSD-PSMD

Follow procedures specified in items

8-16 of G.1

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1

2

3

4

5

6

7

Prepares RIS in three (3) copies. Fills up all the necessary information except for the “Issue” column.

The RIS shall be distributed as follows :

Original - ASD-COAD/Accounting Unit

Copy 2 - Requesting Office/Section/Division

Copy 3 - GSD-PSMD/AGS/FDC-SSD

Reviews and initials in the “Requested by” portion and forwards the RIS to the Head of Offce/ concerned Division Chief of FDC/Section Chief of FO

for further review and signing.

Determines 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. Signs the “Requested by” portion of the RIS.

Receives signed RIS and forwards to the GSD-PSMD/AGS/FDC-SSD for determination of availability of stocks and/or withdrawal of inventory items requested.

Receives RIS from RAM/ Requesting Personnel. Reviews and verifies the completeness of information. Indicates a “check” in the “Stock Available? Yes” column, if item/s being requisitioned is/are available on stock, or “X” in the ‘Stock Available? No’ column, if not available. Forwards the RIS to GSD-PSMD Chief/RAO/PAO/FDC-SSD Chief for approval.

Determines 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. Signs the “Approved by” portion of the RIS.

If item/s requisitioned is/are available in the storage, issues the item/s requisitioned according to schedule of issuance of supplies, indicates the quantity issued in the “Issued-Quantity” column and any remarks in the “Issued-Remarks’” column, and signs the “Issued by” portion.

If item/s requisitioned is/are not available, return to the requesting department/office for preparation of PR.

The PR shall be prepared in three (3) copies distributed as follows :

    Original - GSD-PSMD/AGS/FDC-SSD (for their appropriate action, later to be attached to the original Disbursement Voucher (DV) for the payment of purchased item/s)

    Copy 2 - GSD-PSMD/AGS/FDC-SSD file

    Copy 3 - Requisitioning Department/Office/Division File

    Receives supplies requested and signs in the “Received by” portion of the RIS

    .

    Files in numerical order copy 2 of RIS and temporarily the original of RIS/PR for the preparation of RSMI.

    Retrieves the original copies of RIS from temporary file, ensures the completeness of the RIS and prepares the RSMI in two (2) copies at the end of the day

    Signs the “Certified Correct” portion of the RSMI, to be noted by the GSD/FDC Department Manager/Regional/Provincial Manager

    Signs the “Noted by” portion of RSMI

    Receives signed copy of RSMI and forwards to the ASD-COAD/Accounting Unit/FDC-SSD Accountant the original copy of RSMI together with original copy of RIS.

    Files copy 2 of RSMI. FDC-SSD Accountant to submit RSMI.

    Fills out the accounting unit portion of the RSMI and forwards RSMI to ASD-COAD

    Receives the original copy of RSMI and original RIS. Checks and verifies the completeness of information. Retrieves SLC from file and fills up the “To be filled up in the ASD-COAD/Accounting Unit portion of RSMI. Checks entries of FDC-SSD Accountant. Records the RSMI in the Stock Ledger Card (SLC) and signs in the “Posted by/date” portion.

    Prepares JEV in two (2) copies based on the RSMI to record the issue of stock.

    Signs the “Prepared by” portion of the JEV and forwards JEV and supporting documents to the Division Chief-COAD / Accountant IV / Senior Accounting Specialist (SAS) for review and approval.

    Reviews correctness of the accounting entry and completeness of supporting documents. If in order, signs the “Certified Correct by” portion of the JEV and forwards Copies 1 and 2 of JEV to the Bookkeeper. If not in order, returns the JEV and supporting documents to the Accounting Staff concerned for correction.

    Receives JEV and SDs for correction of accounting entry. Returns the JEV and supporting documents to the Division Chief-COAD/Accountant IV / SAS for approval.

    Receives signed JEV supported with the RSMI and RIS and records JEV in the GJ. Files copy 2 of JEV.

    Prepares PR in three (3) copies. Fills up all the necessary information except for the “Issue” column

    The PR shall be prepared in three (3) copies distributed as follows :

    Original - GSD-PSMD/FDC-SSD (for their appropriate action, later to be attached to the original DV for the payment of purchased item/s)

    Copy 2 - GSD-PSMD/FDC-SSD file


      Copy 3 - HRMD-HSU / TRSD-QAD/TRSD-MD/SSID-SSD/FDC-SSD/ ISD-IRD and ASD-CD

    Reviews and initials in the “Requested by” portion and forwards the PR to the Head of Office

    Determines 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. Signs the “Requested by” portion of the PR.

    Receives signed PR and forwards to the GSD-PSMD/FDC-SSD.

    Reviews and verifies the completeness of information.

    Determines 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. Signs the “Approved by” portion of the RIS.

    Advices the HRMD-HSU/TRSD-QAD/TRSD-MD/SSID-SSD/FDC-SSD/ISD-IRD and ASD-CD re availability of their requests.

    Inspects delivered items

    Receives item requested and signs in the “Received by” portion of the RIS

    Files permanently in numerical order copy 2 of RIS and temporarily the original of RIS for the preparation of RSMI.



    I. INSPECTION AND ACCEPTANCE OF REQUESTED SUPPLIES AND MATERIALS

    N. REPORTING SYSTEM O. COSTING INVENTORIES
    P. PERPETUAL INVENTORY METHOD Q. PHYSICAL INVENTORY TAKING R. ILLUSTRATIVE ACCOUNTING ENTRIES - INVENTORIES
    1. Inventory Held for Consumption:
    Upon Purchase:
    Account Title Account Code Debit Credit
    Office Supplies Inventory 10404010 xxx
    Accounts Payable 20101010 xxx
    To recognize purchase of office supplies on account.

    Upon Issue/Consumption
    Office Supplies Expenses 50203010 P xxx
    Office Supplies Inventory 10404010 P 400
    To recognize issue/consumption of office supplies amounting to P 400

    At year-end closing of books of Accounts:
    Revenue and Expense Summary 30301010 P 520
    Office Supplies Expenses 50203010 P 520
    To close the expense accounts to Revenue and Expense Summary account

    Accumulated Surplus/(Deficit) 30101010 P 520
    Revenue and Expense Summary 30301010 P 520
    To close the Revenue and Expense Summary account to Accumulated
    Surplus/(Deficit) account

    2. Semi-Expendable Machinery and Equipment:
    Upon Purchase:
    Account Title Account Code Debit Credit
    Semi-Expendable Machinery 10405010 P 13,000
    Cash-Modified Disbursement
    System (MDS), Regular 10401010 P 13,000
    To recognize purchase of air-conditioning unit amounting to P 13,000

    Semi-Expendable Office
    Equipment 10405020 P 14,500
    Cash-Modified Disbursement
    System (MDS), Regular 10401010 P 14,500
    To recognize purchase of printer amounting to P 14,500


    Upon Issue/Consumption:
    Semi-Expendable Machinery and
    Equipment Expenses 50203210 P 27,500
    Semi-Expendable Machinery 10405010 P 13,000
    Semi-Expendable Office
    Equipment 10405020 14,500
    To recognize the issue of semi-expendable machinery and office
    equipment to end-users

    Repairs and Maintenance-Semi-
    Expendable Machinery and
    Equipment 50213210 P4,000
    Cash-Modified Disbursement
    System (MDS), Regular 10104040 P4,000

    To recognize repair of the air-conditioning unit two years after purchase.

    Account Title Account Code Debit Credit

    At year-end closing of books of Accounts:
    Revenue and Expense Summary 30301010 P 31,500
    Semi-Expendable Machinery
    and Equipment Expenses 50203210 P 27,500
    Repairs and Maintenance-
    Semi-Expendable Machinery
    and Equipment 50213210 4,000
    To close the expense account to Revenue and Expense Summary account.

    Accumulated Surplus/(Deficit) 30101010 P 31,500
    Revenue and Expense
    Summary 30301010 P 31,500
    To close the Revenue and Expense Summary account to Accumulated
    Surplus/(Deficit) account.

    c. Semi-Expendable Furniture, Fixtures and Books:

    Account Title Account Code Debit Credit
    Upon Purchase:
    Semi-Expendable Furniture and
    Fixtures 10406010 P 10,000
    Accounts Payable 10401010 P 10,000
    To recognize purchase of sofa set amounting to P 10,000

    Accounts Payable 10406020 P 12,500
    System (MDS), Regular 10401010 P 12,500
    To recognize purchase of books amounting to P 12,500

    Upon Issue/Consumption:
    Semi-Expendable Furniture,
    Fixtures and Books Expenses 50203220 P 22,500
    Semi-Expendable Furniture
    and Fixtures 10406010 P 10,000


    Semi-Expendable Books 10406020 P 12,500
    To recognize the issue of semi-expendable furniture, fixtures and books to
    end-users
    At year-end closing of books of Accounts:
    Revenue and Expense Summary 30301010 P 22,500
    Semi-Expendable Furniture,
    Fixtures and Books Expenses 50203220 P 22,500
    To close the expense account to Revenue and Expense Summary account

    Accumulated Surplus/(Deficit) 30101010 P 22,500
    Revenue and Expense Summary 30301010 P 22,500
    To close the Revenue and Expense Summary account to Accumulated
    Surplus/(Deficit) account.

    Account Title Account Code Debit Credit
    Bookkeeping Errors

    Office Supplies Expenses 50203010 xxx
    Office Supplies Inventory 10404010 xxx
    To adjust Supplies and Materials Inventory Account.

    Semi-Expendable Machinery and
    Equipment Expenses 50203210 xxx
    Semi-Expendable Machinery 10405010 xxx
    Semi-Expendable Office
    Equipment 10405020 xxx
    To adjust Semi-Expendable Account.

    Shortages

    Losses incurred in current year:
    Due from Officers and Employees 10305020 xxx
    Office Supplies Inventory 10404010 xxx
    To recognize amount of confirmed shortagesof supplies inventory as revealed by the
    physical count variance report versus book balances.

    Due from Officers and Employees 10305020 xxx
    Semi-Expendable Inventory 10404010 xxx
    To recognize amount of confirmed shortagesof Semi-Expendable Inventory as
    revealed by the physical count variance report versus book balances.

    Losses incurred in prior years:
    Due from Officers and Employees 10305020 xxx
    Accumulated Surplus/(Deficit) 30101010 xxx
    To recognize amount of confirmed shortagesof supplies inventory as revealed by the
    physical count variance report versus book balances.

    Due from Officers and Employees 10305020 xxx
    Accumulated Surplus/(Deficit) 30101010 xxx
    To recognize amount of confirmed shortagesof Semi-Expendable Inventory as
    revealed by the physical count variance report versus book balances.

    III. RESPONSIBILITIES


    IV. FLOWCHART FROM THE PROVISIONS OF THE FOLLOWING :

    1. Procedures in the Requisition and Issue of Inventory Items from GSD-PSMD/AGS/FDC-SSD and Other Concerned Departments (Annex C.1 and C.2)



    The foregoing SOP supersedes SOP No. GS-PD16 approved April 01, 1999 and its Amendment/Addendum approved July 16, 2002. All rulings, policies and/or issuances inconsistent herewith are hereby superseded.

    The SOP shall take effect ________________.




    TOMAS R. ESCAREZ
    OIC-Administrator

    Date Approved : December 13, 2018



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