Department of Environmental and Natural Resources

Environmental Management Bureau, Region X

ACTIVITY DESIGN ON THE CONDUCT OF PHYSICAL

INVENTORY PLAN FOR THE ONE TIME CLEANSING OF
PPE
I. RATIONALE

Property, Plant and Equipment (PPE) generally constitute a significant portion

of the total assets of the government, usually comprising more than fifty percent
thereof.

The existence of enormous amounts of discrepancies in PPE account balances

of government agencies has become a perennial issue and caused the non-
establishment of the accuracy of the PPE balances presented in the financial
statements. Such condition, if not properly addressed would always cause an
exception in the fairness of presentation of the financial position of government
agencies and will deprive the government of reliable and useful information in
decision-making and accountability for these assets.

II. OBJECTIVE
To cleanse the PPE balances in the financial statement and submit within the
month of July below reports to COA in compliance with COA Circular No. 2020-006
dated January 31, 2020:
i. Inventory Count Form (Annex A)
ii. List of PPEs Found at Station (Annex B) (Completeness)
iii. List of Non-Existing/Missing PPEs (Annex C) (Existence)
iv. Registry of Derecognized PPEs (Annex D)
v. Journal Entries Vouchers

III. COMMITTEE
Special Order No. 01-10-2022 created the inventory committee for the
conduct of PPE cleansing in EMB-X Regional and PEMU office and composed of the
following personnel:
 Samih M. Alonto - Head, Inventory Committee
 Ruelan Ruben M. Lacre, Jr. - Reconciler
 Fatmah Nhehar L. Daluma - Count Validator
 Rothelio M. Orgada - Tracer
 Jeffrey P. Ceballos - Inventory Count and Tagger
 Norman Elcano - Inventory Count and Tagger
 Donna Jane T. Lim* - Inventory Count and Tagger
 Mohamad Iman B. Alib** - Inventory Count and Tagger
*Replaced Seigfred G. Balta

**Added to the them to create two (2) inventory count teams

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

IV. SCHEDULE OF ACTIVITY

LOCATION
DATE
TEAM 1 TEAM 2

02/09/22 – 02/11/22 EMED New Building EMED New Building

02/14/22 – 02/18/22 Blue Building Laboratory Building

02/21/22 – 02/25/22 Finance and ORD CPD

02/28/22 – 03/02/22 Hostel 2nd Floor Hostel 1st and 3rd Floor

03/03/22 – 03/04/22 Reconciliation Reconciliation

V. BUDGETARY ESTIMATES
ACTIVITY MANDAYS EXPENSES QTY UNIT COST TOTAL COST

Count 23 DAYS Lunch 6 Pax 150/pax/day PHP 20,700.00

Lunch 4 Pax 150/pax/day PHP 1,200.00

Recon 2 DAYS
Dinner 4 Pax 150/pax/day PHP 1,200.00

Entire Count Supplies 1 Lot 3,000 PHP 3,000.00

Entire Count Contingencies 1 Lot 3,000 PHP 3,000.00

GRAND TOTAL PHP 29,100.00

Team 1: Team 2:
1. Donna Jane T. Lim (Finance) 1. Mohamad B. Alib (Finance)
2. Jeffrey M. Ceballos (Admin) 2. Norman M. Elcano (Admin)
3. Nershel T. Mora (COA) 3. Arlene B. Sadicon (COA)
Reconciliation
1. Ruelan Ruben M. Lacre, Jr. (Finance)
2. Fatmah Nhehar L. Daluma (Admin)
3. Donna Jane T. Lim (Accounting)
4. Nershel T. Mora (COA)
Due to inevitable circumstances, additional one manpower from finance were
made to create two (2) teams.
VI. OUTPUT
The committee shall adopt the format as prescribed under COA Circular 2020-006
dated January 31, 2021 and the Government Accounting Manual Volume III, but shall make
an amendment to the signatories.

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

Below will be the list of reports to be submitted on March 3, 2022 with the names of
the accountable persons:

Accountable Person
REPORTS Format
Designation Name
Report on the Physical Count of Appendix GSS Chief Fatmah Nhehar L.
Property, Plant & Equipment 73 Daluma
Report of Physical Count of Appendix GSS Chief Fatmah Nhehar L.
Inventory 66 Daluma
Property Acknowledgement Appendix Property Rothelio M. Orgada
Receipt 71 Custodian
Inventory and Inspection Report Appendix Inventory Samih M. Alonto
of Unserviceable Property 74 Committee
Report of Lost, Stolen, Appendix Inventory Samih M. Alonto
Damaged, Destroyed Property 75 Committee
Property Transfer Report Appendix GSS Chief Fatmah Nhehar L.
76 Daluma
Reconciliation Report Accountant Ruelan Ruben M. Lacre,
Jr.

VII. DUTIES AND RESPONSIBILITIES

The duties and responsibilities shall be in line with the Physical Inventory Plan (PIP)
as approved by the head of office and all stipulations therewith shall remain in force.
VIII. CHARGING OF THE EXPENSES
The expenses incurred shall be charged against the regular agency fund subject to
usual accounting and audit guidelines.
IX. APPROVAL OF THE ACTIVITY DESIGN
Prepared by:

SAMIH A. ALONTO, JD
Inventory Committee, Head and
Administrative Section, Chief

Noted by:

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

ROTHELIO M. ORGADA FATMAH NHEHAR L.

DALUMA
Property Custodian GSS Chief

Availability of Fund:

RUELAN RUBEN M. LACRE, JR.

Finance Section, Chief

Recommending for Approval:

AGAKHAN M. CABUGATAN
FAD Assistant Division Chief

Approved by:

REYNALDO S. DIGAMO
Regional Director

PHYSICAL INVENTORY PLAN (PIP) FOR SEMI-EXPENDABLE EQUIPMENT

AND PROPERTY, PLANT AND EQUIPMENT (PPE) IN EMB-X

Pursuant to COA Circular 2020-006 dated January 31, 2020, this plan is
hereby prepared to ensure the efficient conduct of Physical Inventory Taking for
purposes of Recognition of all PPEs found at the regional Office (including PEMU
Offices) and Disposition of Non-Existing/Missing PPE items.

I. Preliminary Activities

The Inventory Committee through the General Services and Supplies (GSS)
Unit, must undertake the following activities:

a. Initiate coordination meetings with the Accounting Unit in sorting out issues on
record discrepancy;
b. Provide Property Tag in conformity with the data requirements indicated in the
Circular for approval of Inventory Committee.

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

c. Preparation of necessary report needed in the reconciliation period with the

Accounting Unit, to wit:
c.1 Property Cards
c.2 Stock Cards
c.3 Latest Report for the Physical Count of Property Plant and
Equipment (RCPPE) / Asset Registry

c.4 Copy and Soft copy of data list of Inventory and Inspection Report of
Unserviceable Properties (IIRUP) to verify items that have already
been disposed.
c.5 Copy and Softcopy of data list of items transferred to various
employees through Property Transfer Report
c.6 Segregation of Property Acknowledgment Receipt (PAR) per
employee.
c.7 Preparation of initial list of items for disposal
c.8 Printing of Properties per Office

II. Reconciliation Process

The Accounting Unit must undertake updating of its records of

acquisition/disposal/transfer of PPEs in the PPE Ledger Cards (PPELCs). The
updated PPELCs of Accounting must be cross-validated with the RPCPPE of GSSU.

a. List of PPE Items which are recorded in the PPELCs but NOT included in the
RPCPPE / Asset Registry / Physical inventory Report
b. PPE Items which are included in the RPCPPE but not recorded in the
PPELCs

After the completion of reconciliation between the GSS Unit and the Accounting
Unit, the following reports are required to be submitted to the Inventory

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

Committee as the Inventory Working Paper and as basis for inventory-taking

activities taking into consideration the capitalization threshold of P15,000.00.

III.Designation of Physical Inventory Team

The Inventory Committee may designate personnel from other offices in

addition to GSSU and Accounting Unit to undertake the tasks of Physical Counting
for check and balance. The number of personnel to undertake the Physical Inventory
Taking shall depend on the magnitude / scope of work;

ROLES RESPONSIBILITIES

Validator and Tracer  Responsible in checking the existence of PPE

and Semi-Expendable Equipment/ Furnitures
and Fixtures, items NOT included in the
Inventory Working Paper and the actual
1. Daluma, Fatmah Nhehar condition of the items.
L. a. In good condition
2. Masbud, Caironisah b. Need Repair
3. Rothelio M. Orgada c. Unserviceable
d. Obsolete
e. No Longer Needed
f. Not used since Purchase

Items not included in the said working paper shall

be listed and considered “Found at Station” using
the Inventory Count Form (ICF) provided by the
COA.

 Responsible in the verification of Accountable

Officer for the particular item per office using
the working paper as basis.
 Confirm all accountabilities based on Inventory
Working paper must be reported for
preparation of renewal of PAR. New PAR will
be prepared in case there is a change of
Accountable Officer.
 Affix tags
 Assign sequence number to all items with
temporary tags as guide for the Taggers to
follow in laying the final Property Tag of the
items.
 Submit report for the preparation and printing
of Tags / Stickers.

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

Counter and Tagger  Responsible for laying the final tag based on
the report submitted by the Counter and
1. Ceballos, Jeffrey P. Checker and prepared Property Tags
2. Norman Elcano (Stickers)
3. Seigfred Balta
 Countercheck the Inventory Working Paper
based on the number of PPEs, semi-
Reconciler expendable equipment, and those “found at
station” as declared by the Validator and
Lacre, Ruelan Ruben Jr. Checker

 Responsible for the preparation and printing on

Inventory Working Paper that will used by the
Checkers and Counters in verifying the
existence, condition, and accountable officer of
the items.
 Responsible for cross-checking copies of PAR
and ICS for all items NOT found during the
inventory-taking activity
 Preparation of new/renewal of PAR and ICS
and facilitate the signing of the PAR and ICS
 Responsible for updating the Property Card
and Stock Card
 Prepare Report of PPE and Physical Count of
Supply Officer Inventories (RCPI)
 Provide the Inventory Committee with the list of
Daluma, Fatmah Nhehar L. items for derecognition

WITNESS:

Representative from Commission on Audit (COA)

IV. Physical Inventory Taking

The flow/movement of the personnel designated must be coordinated and

organized for efficient and smooth conduct of the activity;

a. The GSS Unit will provide the Inventory Working Paper to Inventory
Committee. The approved Working paper shall be forwarded to the
Inventory Team.
b. Prior to the start of physical inventory, an orientation will be facilitated by
the Supply Officer on various classifications of PPEs and other issued that
may arise during the Inventory Taking.

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

c. Assigned Checkers and Counters will take the 1 st step on the actual
undertaking, followed by Taggers and Validators taking the last step.
d. All items considered as “Found at the Station” will be appraised and shall
be submitted to the Accounting Unit for recognition as fixed asset if
appraised value is P15,000 above. A PAR will be issued accordingly to the
Accountable Officer. Otherwise, an OCS will be issued to monitor the
accountability.
e. Items not found during the conduct of Physical Inventory Taking BUT was
included in the Inventory Working paper will be checked based on PAR
and ICS on file.
f. All missing items without proof of accountability shall be submitted to the
Inventory Committee for endorsement to COA for derecognition.

V. Schedule for Physical Inventory Taking

To ensure the smooth undertaking of Physical Inventory without delay as far as

the number of days indicated in COA Circular 2020-006, strict observance of the
recommended schedule must be properly followed. The approach of Physical
Inventory-Taking shall be on per building at the Regional Office and per Office in the
Provincial Environmental Management Unit Offices in the region.

BUILDING SCHEDULE

New EMED Building January 27-28, 2022

Old EMED Building Jan 31, 2022 & Feb 2, 2022

ORD/Finance/ CPD Building February 3-4, 2022

Hostel/Training Center February 4, 2022

PEMU Office (Virtual) February 4, 2022

VI. Submission of Report

On the basis of the COA approved derecognition, findings and reconciliation

result of the actual inventory-taking, the Inventory Committee shall submit the Final
Annual Report of Physical Count of Property, Plan and Equipment (RPCPPE) to the
COA.

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

The said report will now be the basis for the Accounting Unit to update its
Property, Plant and Equipment Ledger Card (PPELC) and will serve as the
beginning balance.

January 14, 2022

EMB Regional Special Order

No. _______ series of 2022

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph
 Department of Environmental and Natural Resources
Environmental Management Bureau, Region X

SUBJECT: CREATION OF INVENTORY COMMITTEE FOR THE CONDUCT OF

PROPERTY, PLANT, AND EQUIPMENT CLEANSING IN EMB-X REGIONAL
AND PEMU OFFICE

Property, Plant and Equipment (PPE) generally constitute a significant portion of the
total assets of the government, usually comprising more than fifty percent (50%) thereof. In
compliance with section 5.2 of the Commission on Audit (COA) Circular Number 2020-006
dated January 31, 2020, “Guidelines or the Procedures in the Conduct of Physical Count of
Property, Plant and Equipment (PPE), Recognition of PPE items Found at the Station and
Disposition for Non-Existing / Missing items for the One Time Cleansing of PPE Account
Balances of government Agencies”, the inventory committee for the Regional and PEMU
Office is hereby made and shall be composed of the following personnel:

1. Samih M. Alonto - Head, Inventory Committee

2. Ruelan Ruben M. Lacre Jr. - Reconciler
3. Fatmah Nhehar L. Daluma - Count Validator
4. Rothelio M. Orgada - Tracer
5. Jeffrey P. Ceballos - Inventory Count Personnel and Tagger
6. Norman Elcano - Inventory Count Personnel and Tagger
7. Seigfred G. Balta - Inventory Count Personnel and Tagger

All members of the Inventory Committee shall prioritize the inventory count but shall
ensure that the operation of the agency will not be hampered.

This Order shall be effective immediately and shall be automatically revoked after the
end of the inventory.

For immediate and strict compliance.

REYNALDO S. DIGAMO
Regional Director

DENR-10 Compound, Brgy. Puntod, Cagayan de Oro City

Telephone Nos. (088) 856-9362 Email: embregion10@emb.gov.ph Website: http://www.r10.emb.gov.ph