It is a policy of the state that all resources of the government shall be

managed, expended, or utilized in accordance with law and regulations, and

safeguarded against loss or wastage through illegal or improper disposition with
the aim of ensuring economy, efficiency and effectiveness in the operations of the
government.

Be advised that Section 105 of P.D. 1445 (Government Auditing Code)

provides for the measure of liability of officers accountable for government
property, to wit:

Section 105. Measure of liability of accountable officers.

1. Every officer accountable for government property shall be liable for its money
value in case of improper or unauthorized used 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 occasioned by negligence in the
keeping or use of the property whether or not it be at the time in his actual custody.

2. Every officer accountable for government funds shall be liable for all losses
resulting from the unlawful deposit, use, or application thereof and for all losses
attributable to negligence in the keeping of the funds.

In this regard, the said officers may also be held criminally liable and will
mete out the corresponding penalty under Article 217 of the Revised Penal Code,
viz.:

Art. 217. Malversation of public funds or property; Presumption of malversation.

— Any public officer who, by reason of the duties of his office, is accountable for
public funds or property, shall appropriate the same or shall take or misappropriate
or shall consent, through abandonment or negligence, shall permit any other
person to take such public funds, or property, wholly or partially, or shall otherwise
be guilty of the misappropriation or malversation of such funds or property, shall
suffer:

1. The penalty of prision correccional in its medium and maximum periods,

if the amount involved in the misappropriation or malversation does not
exceed two hundred pesos.
2. The penalty of prision mayor in its minimum and medium periods, if the
amount involved is more than two hundred pesos but does not exceed six
thousand pesos.

3. The penalty of prision mayor in its maximum period to reclusion temporal

in its minimum period, if the amount involved is more than six thousand
pesos but is less than twelve thousand pesos.

4. The penalty of reclusion temporal, in its medium and maximum periods,

if the amount involved is more than twelve thousand pesos but is less than
twenty-two thousand pesos. If the amount exceeds the latter, the penalty
shall be reclusion temporal in its maximum period to reclusion perpetua.

In all cases, persons guilty of malversation shall also suffer the penalty of
perpetual special disqualification and a fine equal to the amount of the funds
malversed or equal to the total value of the property embezzled.
The failure of a public officer to have duly forthcoming any public funds or
property with which he is chargeable, upon demand by any duly authorized
officer, shall be prima facie evidence that he has put such missing funds or
property to personal use. (As amended by RA 1060).

Pursuant to these provisions, you are hereby reminded to always ensure

safety measures of all government resources within your office.

Nevertheless, be guided that in case of unavoidable circumstances which

resulted to losses due to fortuitous events, natural calamities, or due to acts of
man, i.e. robbery, theft, arson, etc., the accountable officer should notify the
Commission on Audit of such loss accompanied with the corresponding
requirements in accordance with its Memorandum no. 92-75, dated 24 February
1992, and as stated in Section 73 of the Government Auditing Code:

Section 73. Credit for loss occurring in transit or due to casualty or forces
majeure.

1. When a loss of government funds or property occurs while they are in transit
or the loss is caused by fire, theft, or other casualty or force majeure, the officer
accountable therefore or having custody thereof shall immediately notify the
Commission or the auditor concerned and, within thirty days or such longer
period as the Commission or auditor may in the particular case allow, shall
present his applicable for relief, with the available supporting evidence.
Whenever warranted by the evidence credit for the loss shall be allowed. An
officer who fails to comply with this requirement shall not be relieved of liability
or allowed credit for any loss in the settlement of his accounts.

2. The Commission shall promulgate rules and regulations to implement the

provisions of this section.