SOP No: GS-PS01

SOP Library

SOP NO: GS-PS01 (List of Exhibits/Attachments)

Mission: Finance and Administration

Area: General Services (GS)

Activity: Properties and Supplies Management (GS-PS)

Title: SOP on Property, Plant and Equipment (PPE) Inventory, Monitoring and Control System (Revised 2018)

Date Approved/Issued: 01/10/2019

Date Effective: 01/10/2019

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

E. Acronyms

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

2. ASD-COAD – Accounting Services Department - Central Office Accounting Division

3. AGS – Administrative and General Services

4. FDC-SSD - Food Development Center - Support Services Division

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

6. CPMSD – Corporate Planning and Management Services Department

7. TRSD – Technical Research and Services Department

8. BTFMD – Budget, Treasury and Fund Management Department

9. COA - Commission on Audit

10. PPEIR - Property, Plant and Equipment Issuance Report

11. PPERR - Property, Plant and Equipment Receiving Report

12. PAR - Property Acknowledgment Receipt

13. IAR – Inspection and Acceptance Report

14. RRP – Receipt of Returned Property

F. Definition of Terms

1. Supply Officer shall refer to Supply Officers of GSD-PSMD of Central Office, Field Office and designated Supply Officers of Lead Departments, unless otherwise noted.

2. General Services shall refer to GSD-PSMD for Central Office and AGS for the Field Office, unless otherwise noted.

3. Lead Department shall refer to FDC for FDC’s PPE, CPMSD for IT equipment and peripherals, TRSD for post-harvest machineries, equipment and laboratory equipment and SSID for firearms, unless otherwise noted.

4. Accounting shall refer to ASD-COAD for Central Office and Accounting Unit for the Field Office, unless otherwise noted.

5. Heads of Offices shall refer to Department Managers for Central Office, Heads of Offices for Executive Offices, Regional Managers (RM) for Regional Offices (RO) and Provincial Managers (PM) for Provincial Offices (PO), unless otherwise noted.

6. Property Inspectors shall refer to designated Property Inspectors at GSD for GSD’s PPE, FDC for FDC’s PPE, CPMSD for IT equipment and peripherals, TRSD for post-harvest machineries, equipment and laboratory equipment and SSID for firearms, unless otherwise noted.

7. COA Auditor shall refer to both the Central and Field Office’s COA Auditors, unless otherwise noted.

II. IMPLEMENTING GUIDELINES

A. GENERAL POLICIES

1. PPE shall be properly valued and the cost arrived at shall be capitalized.

2. Primary accountability is vested upon the accountable employee to whom the PPE is issued.

3. As a general rule, PPE shall remain with the office where it was originally issued. Transfer of accountability should therefore be from one employee to another within the same office. Exemption shall be made when a whole unit/division is transferred from one office to another.

The Provincial office shall be responsible in recording in its books the land, land improvements and also buildings and other structures where the Regional Office is housed.

4. Accounting shall strictly adhere to the SOP on Depreciation Accounting and supplemental guidelines regarding PPE depreciation to maintain an accurate carrying amount of a PPE.

5. Major expenditures after acquisition of the PPE shall also be capitalized.

6. The Heads of Offices shall be held responsible for the management, utilization and safeguarding against loss or wastage through illegal or improper disposition of the NFA’s PPE, in accordance with the existing policies and regulations.

7. The Supply Officers shall be responsible in monitoring all movements of PPE in their areas of jurisdiction.

8. Central Office Inventory Committee shall conduct physical inventory semi-annually every July 1-15 and January 1-15 to establish balances of PPE as of June 30 and December 31 of each year, respectively. Provincial / Regional Inventory Committees shall conduct physical inventory annually every January 1-15 to establish balances as of December 31 of each year.

9. Unserviceable PPE and serviceable but outmoded PPE shall be dropped from the books following the latest approved SOP on the Disposal of Unserviceable Fixed Assets and Materials (Junk Properties).

B. SPECIFIC POLICIES

1. ITEMS CONSIDERED AS PPE

1.1 In conformity with the GAM, fixed assets shall henceforth be referred to as Property, Plant and Equipment or PPE which is defined as tangible assets that are:

a. purchased, constructed, developed or otherwise acquired;

b. held for use in the production or supply of goods or services or to produce program outputs;

c. for rental to others;

d. for administrative purposes;

e. expected to be used during more than one reporting period;

f. not intended for resale in the ordinary course of operations; and,

g. meets the capitalization threshold of P15,000.00

1.2 Per GAM, PPE shall have the following classifications:

a. Land

b. Land improvements

c. Buildings and other Structures

d. Machinery and Equipment

i. Office Equipment

ii. Information and Communication Technology

iii. Communication Equipment

iv. Disaster-Response and Rescue Equipment

v. Medical Equipment

vi. Sports Equipment

vii. Technical and Scientific Equipment

viii. Other Equipment

e. Transportation Equipment

i. Motor Vehicles

ii. Aircrafts and Aircrafts Ground Equipment

iii. Watercrafts

iv. Other Transportation Equipment

f. Furnitures, Fixtures and Books

i. Furnitures and Fixtures

ii. Books

1.3 To ensure uniform PPE classification, type and code, all types of NFA PPE are listed in

Annex A.

PPE not included in the list should be referred to GSD-PSMD in coordination with ASD-COAD for proper classification, type and code.

2. VALUATION

2.1 PPE shall be properly valued. The cost arrived at which shall include the purchase price plus VAT, if any, and other expenditures incurred to bring them to the working condition or location necessary for their intended use, shall be capitalized. Any trade discounts and rebates are deducted in arriving at the purchase price.

2.2 The cost of the PPE under the following modes of acquisition shall be as follows:

a. Purchase

a.1. On cash basis – Cash paid plus all costs incurred in bringing the asset to the location necessary for its intended use such as delivery, freight-in, installation costs, etc.

a.2. On Account – Purchase price including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

a.3. On Installment Basis – Cash price equivalent or its fair value at the recognition date.

a.4. Purchase 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. Please refer to Chapter 10, Section 8.d of the GAM, for proper valuation and accounting treatment.

a.5. If the promotional item received is different from the PPE purchased, the cost of the promo item shall be its fair value. Please refer to Chapter 10, Section 8.e of the GAM for proper valuation and accounting treatment. Please refer to Chapter 10, Section 8.d of the GAM, for proper valuation and accounting treatment.

a.6. At a Lump Sum Price – the cost shall be apportioned to the asset acquired in order to have proper basis for computing depreciation. Please refer to Chapter 10, Section 8.f of the GAM, for proper valuation and accounting treatment.

a.7. Construction of PPE – During the construction period, all expenses incurred in relation to the construction of the PPE shall be taken up in the books as Construction in Progress (CIP) with the approriate asset classification. Please refer to Chapter 10, Section 8.g of the GAM, for proper valuation and accounting treatment.

b. Exchange Transaction - Fair value unless (a) the exchange transaction lacks commercial substance, or (b) the fair value of neither the asset received nor the asset given up is reliably measurable. Please refer to Chapter 10, Sections 9 & 10 of the GAM, for proper valuation and accounting treatment.

c. Non-exchange Transaction such as donation, presidential proclamation, taxes, transfers and grants - fair value as of the date of acquisition. Please refer to Chapter 10, Section 11 of the GAM, for proper valuation and accounting treatment.

2.4 Expenditures incurred in connection with the acquisition of the PPE shall also be capitalized to form part of its cost. In determining the costs comprising the PPE, please refer to Chapter 10, Section 5 of the GAM, for proper valuation and accounting treatment.

2.5 The responsibility for determining whether an expenditure for restoring or improving the useful conditions of PPE is major or minor or should be capitalized or expensed shall be vested on the Supply Officers, in coordination with Accounting and the designated Property Inspectors.

2.6 Major expenditures incurred after acquisition of the PPE shall also be capitalized. These major expenditures include the following:

a. Repairs and Maintenance - this shall primarily maintain or improve the functionality and capacity of the PPE; increase its service life; improve the quality of its output; or reduce the operating cost. These may be categorized into major and minor repairs. Minor repairs shall be directly charged to expense account “Repairs and Maintenance” of the specific PPE while major repairs shall be added to the carrying amount of the PPE and shall be depreciated over the remaining life of the PPE. Where cost cannot easily be differentiated between a minor or major repair, it shall be treated as expense.

b. Betterments – this refers to enhancements to the future economic benefits or service potential of a capital asset, such as:

i. an increase in the previously assessed physical output or service capacity;

ii. a reduction in associated operating costs;

iii. an extension of the estimated useful life; or

iv. an improvement in the quality of output.

The cost incurred for betterment shall be capitalized if the amount is material and:

b.1. where the expenditure results in an effective increase in the future economic benefits or service potential that is expected to be derived from using the asset and the increase in future economic benefits or service potential will be realized;

b.2. there has been an effective increase in the quality of the services provided by the asset beyond that previously determined; or

b.3. there has been an effective extension to the asset’s useful life as a result of the expenditure.

c. Additions and Rearrangements - Additions are modifications which increase the physical size or function of the PPE. Two types of expenditures which shall be both capitalized are namely, entirely new unit and expansion, and enlargement or extension of the old asset.

For example, the addition of a wiring to a building or the addition of an air conditioning system increases the service potential of that facility and shall be capitalized. On the other hand, rearrangements are cost incurred in moving an asset from one location to another that will benefit future periods but do not represent additions, replacements or improvements.

2.7 Cash outlay incurred after acquisition of the PPE which do not satisfy the conditions of being a major expenditure shall be treated as operating expenses and shall not affect the cost of the PPE.

2.8 The assigned Property Inspectors shall make the recommendation in the job order of major repair.

2.9 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 : TRSD Representative

Division Chief, PSMD, GSD
Division Chief, COAD, ASD

Observer : COA Representative

b. Regional Office

Team Leader : Asst. Regional Manager
Members : Regional Administrative Officer
Regional Engineer
Regional SQAO
Regional Accountant
Observer : COA Representative

c. Provincial Office

Team Leader : Provincial Manager
Members : Provincial Administrative Officer
Sr. MPO/Plant Engineer
Provincial SQAO
Provincial Accountant
Observer : COA Representative

3. Documentation

All PPE transactions shall be properly documented as follows:

3.1 Transfer of Certificate Title (TCT) / Original Certificate Title (OCT)

Acquisition of Land and Buildings shall be documented by a TCT / OCT / building plans / declaration of real property which shall be the resposibility of the Legal Affairs Department (LAD). The Original copies of the TCT/OCT shall be endorsed to the Cash Division, BTFMD for safekeeping and the original copies of the building plans shall be kept by the TRSD. The Accounting and General Services of the concerned office shall be furnished with copies of the aforementioned documents.

3.2 Property, Plant and Equipment Receiving Report (PPERR-

Exhibit 1

)

3.2.1 Receipt of PPE thru Purchase

a. PPEs other than Land and Buildings shall be received as to the correct quantity, by the Supply Officer from the supplier and sign in the Delivery Receipt (DR).

b. PPEs delivered shall be inspected and verified as to correct quantity and specification by the property inspector. After inspection, the property inspector and the Supply Officer shall sign the Inspection and Acceptance Report (IAR) -

Exhibit 2

. The testing and evaluation report or findings, if necessary, shall be attached in the IAR. Please refer to the latest approved SOP on Property Inspection for the detailed procedure on the inspection of purchased PPE.

c. Upon acceptance of the newly purchased PPE, the Supply Officer shall assign a property code.

d. For Lead Departments, the Supply Officer who received the PPE shall provide GSD-PSMD with a list of the PPE received with their serial numbers for assignment of property codes.

e. After assignment of property codes, Supply Officer shall prepare the PPERR and sign on the “Received by”

portion.

The GSD-PSMD Division Chief/ RM / PM shall sign on the “Noted by” portion.

3.2.2 Receipt of PPE thru Transfer from one office to another

Receipt of PPE of Field Office from Central Office or vice versa or from one Field Office to another shall be documented by the PPERR. Upon receipt of the PPE, the receiving Supply Officer shall prepare and sign the “Received by” portion of the PPERR. The GSD Division Chief / RM / PM concerned shall sign on the “Noted By” portion of the PPERR.

The Property, Plant and Equipment Issuance Report (PPEIR-

Exhibit 3

) shall be the basis of the receiving office in documenting the PPERR. The PPEIR shall have the same date as that of the PPERR.

3.2.3 Receipt of PPE thru Donation

Upon acceptance of the donated PPE, the Supply Officer, shall prepare the PPERR and sign on the “Received by”

portion.

The GSD-PSMD Division Chief / RM / PM shall sign on the “Noted by” portion.

3.3 Property, Plant and Equipment Issuance Report (PPEIR)

3.3.1. Issuance of PPE thru Transfer from one office to another:

Issuance of PPE to Field Office from Central Office or vice versa or from one Field Office to another shall be documented with a PPEIR to be signed on the “Issued by” portion by the Supply Officer, on the “Approved by” portion by the GSD-PSMD Division Chief / RM / PM and on the “Received by” portion by the receiving Supply Officer or any authorized representative who received the PPE. Upon receipt of the PPE, the receiving Supply Officer shall prepare a corresponding PPERR. The PPERR shall have the same date as that of the PPEI R.

3.3.2. Issuance/Disposal of PPE for Sale / Donation / Dumping /

Destruction, etc.

Issuance/disposal of fully depreciated PPE, “unserviceable” and “serviceable but outmoded” PPEs to sale, donation, dumping, destruction, etc shall be documented by PPEIR and shall be governed by the latest approved SOP on Disposal of Unserviceable Fixed Assets and Materials (Junk Properties) and the amendments/addenda issued thereto.

3.4 Property Acknowledgement Receipt (PAR)

a. Issuance of newly purchased PPE by a Supply Officer to the accountable employee shall be documented with a PAR (

Exhibit 4)

The “Received by” portion shall be signed by the end-user and the “Issued by” shall be signed by the issuing Supply Officer and approved by the GSD-PSMD Division Chief / FDC-SSD Division Chief / RM / PM.

b. PARs for PPEs in the custody of an employee shall be renewed by the Supply Officers every three (3) years.

3.5 Property Transfer Report (PTR)

a. Transfer of PPE from one employee to another shall be documented with a PTR (

Exhibit 5

). The “Received by” portion shall be signed by the receiving employee and the “Issued by” shall be signed by the issuing accountable employee and approved by the GSD-PSMD Division Chief / FDC-SSD Division Chief / RM / PM. The Representative for Administrative Matters (RAM) / Regional Administrative Officer (RAO) / Provincial Administrative Officer (PAO) shall furnish the Supply Officer of the PTR. The Supply Officer shall provide the PTR number and update their record.

3.6 Receipt of Returned PPE (RRP-

Exhibit 6

)

a. “Unserviceable” and “serviceable but outmoded” PPEs shall be returned by the accountable employee to the Supply Officer supported by the Certificate of “Unserviceable” and “serviceable but outmoded” PPEs. It shall be documented with a RRP. Separate RRP control numbers shall be maintained for “unserviceable” and “serviceable but outmoded” PPEs.

b. The designated Property Inspector shall issue a certification signed by the concerned Head of Office that the PPE is “unserviceable” or “serviceable but outmoded”. The certification shall be attached to the RRP.

c. The RRP shall be prepared by the Supply Officer who received the returned PPE and shall be approved by the GSD-PSMD Division Chief / FDC-SSD Division Chief / RM / PM.

d. Based on the approved RRP, the Supply Officer shall cancel the PAR and delete from the accountability of the concerned employee from his/her records.

e. FDC-SSD shall submit to GSD-PSMD a monthly summary of approved RRP.

Instructions on how to fill out the PPERR, PPEIR, PAR, PTR and RRP are presented in

Annex B

Officials/employees shall strictly follow the documentation procedures of movements. Negligence in the documentation shall be considered a violation of this SOP and shall 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.

4. Copy Distribution

4.1 The Supply Officer shall distribute copies of the PPERR, PPEIR, PAR, PTR and RRP to the proper recipients following the copy distribution in

Annex C

4.3 The Supply Officer shall furnish Accounting with a copy of the PPERR, PPEIR, PAR, PTR and RRP within the day.

4.4 Upon receipt of the PPERR, PPEIR, PAR, PTR and RRP, the Accounting shall prepare the Journal Entry Voucher (JEV) to record receipt and issuance of PPE in the book of accounts following the standard accounting entries in

Exhibit 7

5. Accountability and Responsibility

5.1 Newly acquired PPE shall be the responsibility of the Heads of Offices and shall be the accountability of the Supply Officer until issued to an accountable employee following the documentation presented in II.B.3.

5.2 In the field offices, the Supply Officer shall be directly responsible for receiving and issuing the PPE. PPE received by the Supply Officer with no corresponding PAR shall remain in the Supply Officer’s accountability.

5.3 The Supply Officer in the Provincial Office shall be responsible in the recording of the Regional Office’s land, land improvements, building and other structures. Said PPE shall be the accountability of the Provincial Manager.

5.4 The receiving employee shall be held accountable for all PPEs issued to him/her based on the PAR and PTR.

5.5 Every employee accountable for NFA’s PPE shall be liable for the improper or unauthorized use or misapplication thereof, by himself/herself or any person for whose acts he/she may be responsible. He/She 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/her custody during the time of loss or damage.

5.6 All PPEs should not be taken home, except for equipment for mobile/portable use such as cellphones, laptop computers, etc. In unavoidable cases where non-mobile / non-portable equipment needs to be taken home, it should be approved in writing first by the concerned Head of Office and with approved gate pass.

5.7 The Heads of Offices shall exercise diligence in supervising accountable employees under his/her supervision to prevent the incurrence of loss.

5.8 In Case the PPE is Lost

a. If the PPE was lost while they are in transit or the loss is caused by fire, theft, or other casualty or force majeure, the employee accountable for PPE lost due shall file, within (30) thirty calendar days from the date of loss, a Request for Relief of Property Accountability which shall be submitted to the COA Auditor with the available supporting evidence such as Affidavit of Loss, Joint Affidavit of two disinterested persons, PAR/PTR and a Police Investigation Report if lost outside the office. If lost within the office, the Investigation Report of the CO-SSID / Regional Investigator / Provincial Investigator shall suffice.

b. The concerned employee shall only be cleared of his/her accountability upon the issuance by the COA Auditor of a Relief of Accountability through the Supply Officer which is only issued if the circumstances surrounding the loss is beyond the control of the said employee.

c. The Supply Officer shall furnish the Accounting with a copy of the Relief of Accountability as basis for writing-off from the books and shall give the accountable employee his/her personal copy of the adjusting Journal Voucher.

d. If the accountable employee is relieved from accountability, the Supply Officer shall cancel the corresponding PAR/PTR by attaching to it a photocopy of the Relief from Accountability.

e. In case the accountable employee shall be made to pay for the lost PPE, the accountability of the accountable employee over the loss of depreciated asset shall be based on Depreciated Replacement Cost (DRC) PPSAS 21 par. 45. DRC is replacement cost less accumulated depreciation calculated on the basis of replacement cost.

f. PPEs shall be restituted / paid by the accountable employee immediately in cash or deducted from the salary or whatever allowance/ benefit/incentive that the Accountable employee may receive from NFA, in coordination with the Accounting. In case of cash payment, the Supply Officer shall be furnished with a copy of the Official Receipt. (OR) and Accounting for the deletion of his/her accountibility in the books.

6. Physical Inventory

6.1 Central Office Inventory Committee shall conduct physical inventory semi-annually every July 1-15 and January 1-15 to establish balances of PPE as of June 30 and December 31 of each year, respectively. Provincial / Regional Inventory Committees shall conduct physical inventory annually every January 1-15 to establish balances as of December 31 of each year.

6.2 GSD-PSMD / FDC-SSD / RAOs / PAOs shall provide accountable employees with an updated listing of their property accountabilities one week prior to the inventory-taking. They shall likewise ascertain the issuance of PAR for each accountability.

6.3. During the actual physical count, the inventory teams shall bring with them the detailed listings of PPE of Accounting and the Inventory Report Sheet (IRS –

Exhibit 8

) of GSD. These shall be reconciled as they perform the actual inventory taking. In case of inconsistencies, the Accounting records shall prevail.

6.4 Members of inventory teams conducting the count and reconciliation shall be relieved from their office functions to expedite the completion of this undertaking.

6.5 All PPEs regardless of location shall be covered by the count.

6.6 Accessories to PPEs shall be considered part of the PPE but shall have a separate property code.

6.7 The Report on the Physical Count of PPE (

Exhibit 9

) shall immediately be reconciled with accounting and inventory records as of June 30 and December 31 for C.O. and as of December 31 for F.O. of each year.

6.8 The Provincial / Regional / Central Office / National Consolidated Report on the Physical Count of PPE shall be prepared and certified correct by the committee in charge thereof, witnessed by the COA Auditor and approved by the Provincial Manager / Regional Manager / GSD Department Manager / Administrator, as the case may be.

6.9 Regional/Provincial office inventory reports shall be submitted to the National Inventory Control Committee on or before January 20. Central Office inventory reports shall be submitted to the National Inventory Control Committee on or before July 20 and January 20. National Inventory reports shall be submitted to NFA management for approval on or before January 25 and to COA on or before January 31.

6.10 Failure to submit the reports on the specified deadline shall be considered as neglect in the performance of duty and the concerned employees / members of committees shall be administratively charged pursuant to CSC rules on administrative cases.

6.11 Presentation in the inventory report shall be based on the classification as grouped in the new Chart of Accounts of the GAM.

6.12 The Report on the Physical Count of PPE shall be used to support the adjusted book balance of the PPE accounts and monitor employee accountabilities.

6.13 Copy distribution of the report shall be as follows:

a. Regional / Provincial Inventory Report

Copy 1 - National Inventory Control Committee for

consolidation

2 - Regional / Provincial Accounting Unit

3 - Local COA Unit

4 - Regional / Provincial Inventory Committee file

b. Central Office Inventory Report

Copy 1 - National Inventory Control Committee for

consolidation

2 - ASD

3 - Central Office Inventory Committee file

- NFA C.O. COA

c. National Consolidated Inventory Report

Copy 1 - NFA C.O. COA

2 - ASD

3 - National Inventory Control Committee file

6.14 The Inventory Committees shall be organized as follows:

National Inventory Control Committee

Chairperson : Asst. Adm. for Finance and Administration

Members : GSD Dept. Manager

ASD Dept. Manager

The National Inventory Control Committee (NICC) shall be responsible for providing directions on inventory taking and shall monitor the activities of all inventory committees. It shall also be responsible for preparing and submitting the consolidated Report on the Physical Count of PPE to NFA C.O. COA.

Central Office Inventory Committee

Chairperson : Division Chief, PSMD, GSD

Members : GSD Representative

ASD Representative

TRSD Property Inspector

Observer : COA Representative

The Central Office Inventory Committee shall be responsible for the inventory taking per department / office in the Central Office and in the consolidation and submission of the central office inventory report to the NICC. They shall be assisted by the RAMs of the concerned department/office and the Supply Officer in the case of FDC.

Regional Office Inventory Committee

Chairperson : Asst. Regional Manager

Members : Regional Accountant

Regional Adm. Officer

Designated Supply Officer

Observer : COA Representative

The Regional Office Inventory Committee shall be responsible for the physical inventory taking in the regional office and in the preparation and submission of inventory report to the NICC.

Provincial Office Inventory Committee

Chairperson : Provincial Manager

Members : Provincial Accountant

Provincial Administrative Officer

Supply Officer

Observer : COA Representative

The Provincial Office Inventory Committee shall be responsible for the physical inventory taking in the provincial office and in the preparation and submission of inventory report to the NICC.

6.15 Transfers/purchases are temporarily suspended for the duration of the count.

6.16 Verification shall be done for items included in the books but missing during the count.

6.17 Inventory Teams shall exert maximum effort to locate each missing item.

6.18 Missing PPEs which cannot be located after exhaustive search must be properly noted as missing in the remarks column of the IRS. The accountable employee shall be asked to restitute the PPE.

6.19 Inventory per count must be reconciled per book of accounts.

6.20 For items still unreflected/unrecorded in the books but existing per count, adjustments must be made in the books the current year the physical count was conducted.

6.21 The GSD-PSMD shall coordinate with the respective RAMs / FDC Supply Officer regarding accountabilities of the employees in their department / office.

6.22 After conducting physical inventory, all PPEs found without PAR shall be documented by a PAR by the GSD-PSMD / FDC-SSD / FO Supply Officer.

Property Identification and Coding

7.1 Property Identification and Coding of PPEs purchased by GSD / C.O. BAC and delivered at GSD / FDC / TRSD / CPMSD / F.O. Supply and Property Unit shall be the responsibility of GSD-PSMD.

7.2 Property Identification and Coding of PPEs purchased by and delivered at the field offices shall be the responsibility of the concerned Supply Officer of the AGS.

7.3 All PPEs acquired from purchase, transfer and donation, shall be assigned a property code to be labelled / tagged / marked on a conspicuous part of the PPE by the Supply Officer.

7.4 The property code of PPE transferred/disposed/donated shall be properly noted accordingly in the Property Card and Property Ledger Card.

7.5 PPE property code numbers shall be alpha-numeric and shall follow the format in

Annex D

7.6

Property codes assigned by the Supply Officer to a PPE shall be permanent

and should not be changed even when transferred.

Supply Officers of field offices shall not assign a new property code for the same PPE received from transfer.

7.7 Property codes shall be placed in any conspicuous location on the PPE which can easily be seen.

7.8 If properties are for repainting/re-varnishing/reupholstery/repair the Property Custodian/Supply Officer/carpentry personnel shall see to it that property codes are placed on the same PPE and on the same location.

7.9 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 placed.

Monitoring

8.1 The Supply Officers shall maintain an efficient monitoring system for PPE. The General Services shall serve as the data bank of property information and as such shall bear the following responsibilities:

a. Monitoring of PPE movement, status, number and cost ;

b. Tracking of repair and maintenance activities conducted on each PPE using the Vehicle Property Card (

Exhibit 10)

except for vehicles in the Central Office which is the responsibility of the GSD-AFSD.

c. Providing management with timely, relevant and accurate information/reports concerning the agency’s PPE;

d. Facilitating insurance coverage of all properties.

8.2 The Property Card (

Exhibit 11

) shall be used by the Supply Officers to record the description, acquisition, transfer, disposal and other information about the PPE. It shall be kept for each class of PPE and shall be prepared and updated by the Supply Officers in order to maintain an efficient data bank.

8.3 The PPE Ledger Card (

Exhibit 12

) shall be used for each class of PPE to record the acquisition, description, custody, estimated life, depreciation, impairment, disposal, transfer/adjustment, repair history and other information about the PPE. It shall be kept and maintained by the Accounting.

Accounting Treatment

Pro-forma Journal entries are contained in Exhibit 7.

Annex E

- Central and Field Office Location Library

All rulings, policies and/or issuances inconsistent herewith are superseded.

This revised SOP shall take effect immediately upon approval.

LT. COL. JASON L.Y. AQUINO, (RET) PA
NFA Administrator

III. RESPONSIBILITIES

IV. FLOW CHART
Top Page

EXHIBITS

Annex A - Property, Plant and Equipment Classification, Type and Description

Annex B - Instructions on How to Fill Out PPE Documents

Annex C - Copy Distribution

Annex E - Central and Field Office Location Library

Annex D - Property Code

Exhibit 3 - PPE Issuance Report

Exhibit 4 - Property Acknowledgement Receipt (New Purchase)

Exhibit 5 - Property Transfer Report

Exhibit 6 - Receipt for Returned Property

Exhibit 7 - Accounting Entries

Exhibit 8 - Inventory Report Sheet

Exhibit 9 - Report on the Physical Count of PPE

Exhibit 10 - Vehicle History Card

Exhibit 11 - Property Card

Exhibit 12 - Property, Plant and Equipment

Exhibit 1 - Pre-Receiving Report

Exhibit 2 - Inspection and Acceptance Report

Annex A - Property, Plant and Equipment Classification, Type and Description
Annex B - Instructions on How to Fill Out PPE Documents
Annex C - Copy Distribution
Annex E - Central and Field Office Location Library
Annex D - Property Code
Exhibit 3 - PPE Issuance Report
Exhibit 4 - Property Acknowledgement Receipt (New Purchase)
Exhibit 5 - Property Transfer Report
Exhibit 6 - Receipt for Returned Property
Exhibit 7 - Accounting Entries
Exhibit 8 - Inventory Report Sheet
Exhibit 9 - Report on the Physical Count of PPE
Exhibit 10 - Vehicle History Card
Exhibit 11 - Property Card
Exhibit 12 - Property, Plant and Equipment
Exhibit 1 - Pre-Receiving Report
Exhibit 2 - Inspection and Acceptance Report