Unit VI.

Management of Material Resources

A. Material Resources – Meaning,

Need and Types of Resources
Janice M. Cacao
MAEd- Educational Management Student
 Learning Outcomes
At the end of the session, the students should have:
• defined material resources;
• identified the types of material resources; and
• explained the significance of material resources in delivering
quality education.
WARM UP
CHOOSE
AND
TELL
WARM UP
 MATERIAL
RESOURCES
DEFINITION
❖ objects that have material value or use that are owned by a person or
an organization like educational institution.

❖ physical commodities which are available in limited quantities and

need to be consumed to obtain a benefit by using it.

❖ facilities that are use to develop and add values to people.

 MAIN CHARACTERISTICS
UTILITY

QUANTITY QUALITY
 TYPES
CONSUMABLE NON-CONSUMABLE

• resources that get consumed or get • resources which are repeatedly

exhausted in the process of their used.
usage. • furniture, equipment, classroom,
• bond papers, printer inks, computers, printers, scanners, chalk
chemicals, chalk, items for cleaning boards, books, electrical goods, etc.
and maintenance of buildings,
spare parts for various types of
equipment, hygiene chemicals, etc.
 WHY MATERIAL RESOURCES NEEDED IN SCHOOLS?
✔The physical infrastructure of a school and the educational materials
available to teachers and students – which are referred to here
collectively as “material resources” – are important components of a
high-quality education. Teachers need educational materials, such as
textbooks, computers, library materials or laboratories, in order to
provide instruction that is up-to-date, and that is challenging and
responsive to students’ needs (Oakes and Saunders, 2004[1]; Murillo
and Román, 2011[2]).
 WHY MATERIAL RESOURCES NEEDED IN SCHOOLS?

✔In addition, a school environment that is conducive to teaching and

learning requires adequate physical infrastructure and facilities, such as
buildings, grounds, heating and cooling systems, and lighting and
acoustic systems (Conlin and Thompson, 2017[3]; Gunter and Shao,
2016[4]; Neilson and Zimmerman, 2014[5]).
Figure V.5.1. Material resources in schools
as covered in PISA 2018
Figure V.5.2. Shortage of material resources, school characteristics and
reading performance
Figure V.5.4. School computers per student, school characteristics and
reading performance
Figure V.5.6. School computers connected to the Internet, school
characteristics and reading performance
Figure V.5.10. Shortage of material resources in schools and
reading performance

Positive values in this index indicate more shortages of quality material resources than on average
across OECD countries; negative values indicate greater availability and quality of material
resources than on average across OECD countries.
Sources: OECD, PISA 2018 Database, Tables I.B1.4 and V.B1.5.2.
 Figure V.5.11. Allocation of material resources related to schools’
socio-economic profile and reading performance

1. This is the strength of the association between the school’s socio-economic profile and the principal’s concern about the educational material at
the school. Positive values indicate that principals of socio-economically advantaged schools are more concerned than principals of disadvantaged
schools. Negative values indicate that principals of disadvantaged schools are more concerned than principals of advantaged schools. A value of 0
means there is no difference between advantaged and disadvantaged schools.
Sources: OECD, PISA 2018 Database, Tables I.B1.4 and V.B1.5.5.
Figure V.5.12. Computers at school connected to the Internet and reading
performance
Figure V.5.13. Availability of adequate software and reading
performance
Figure V.5.15. Schools’ written statements about the use of digital
devices and reading performance
WRAP UP
 References
• PISA 2018 Results (Volume V) Effective Policies,
Successful Schools, Retrieved from https://www.oecd-
ilibrary.org/sites/2a420765-en/index.html?itemId=/content/
component/2a420765-en#sect-62
• T KAUR UNIT 11 MANAGEMENT OF MATERIAL
RESOURCES, Retrieved from
http://www.egyankosh.ac.in/bitstream/123456789/62209/1/
Unit-11.pdf
 THANK YOU FOR
LISTENING
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UNIT VI – MANAGEMENT OF
MATERIAL RESOURCES
B. 1 Objectives of Material Resource Management
Reporter: Marie Rose T. Tadena
Ed Mgt 210
 Learning Outcomes
At the end of the lesson, you must have:
1. enumerated the primary and secondary objectives
of material resource management, and;
2. recognized the aim of material management.
Warm-up Activity
HOW TO PLAY:
“WHOSE CLUES”
ANSWER:

MANAGEMENT
ANSWER:

MATERIAL
IONS
ANSWER:

OBJECTIVES
Objectives of Material
Resource Management
 MAIN OBJECTIVE OF
MATERIAL MANAGEMENT
Divided into 2 categories:

1. PRIMARY OBJECTIVES

2. SECONDARY OBJECTIVES
PRIMARY OBJECTIVES
i. Lower prices
ii. High turnover
iii.Low cost acquisition & possession
iv. Continuity of supply
v. Consistency of quality
vi.Favorable supplier relations
vii.development of personnel
viii.good information system
 SECONDARY OBJECTIVES
i. Forecasting
ii. Inter departmental harmony
iii.New materials and products
iv. Economic make or buy
v. Standardization
vi. Product improvement
vii.Forecast
viii.Favorable reciprocal relationship
AIM OF MATERIAL MANAGEMENT

✔The RIGHT QUALITY

✔RIGHT QUANTITY of supplies
✔At the RIGHT TIME
✔At the RIGHT PLACE
✔For the RIGHT COST
Wrap-up Activity
References
• Unit-11_MANAGEMENT%20OF%20MATERIAL%20%20RESOURCES.pdf
RA 9184
• Contemporary Aspects on Institutional Management (book)
• Property Manual Handbook Asset Management
• DepEd Order No. 13, S. 2016
• Executive Order No. 69, S. 2012
• DepEd Order No. 45, S. 2015
• DO 62, s 2010
• https://l.facebook.com/l.php?u=https%3A%2F%2Fwww.managementstudyguide.com%2Fmanagement_functions
.htm%3Ffbclid%3DIwAR2RnBn_ZDiwwj0YF9pGl6BzV178_cW1ETpjShB0iUma2VuwNQJHOOKGSuQ&h=AT3LT1r54p
_SmxOJ87gyIlfqWg_6ML2699rXWRJ4r59Kc7RvJkPgzsSLfx5i551ZxIBi6RknR1X1P9cX1tvF3xhxihUoiD8KC-Zf-c3JLhixF
NFzWf5kcIRa9VomsPPSGbxENw
• https://l.facebook.com/l.php?u=https%3A%2F%2Fwww.researchgate.net%2Fpublication%2F338774956_The_Con
trol_Function_of_the_School_Administrator%3Ffbclid%3DIwAR1bUvExBKlWXQK1rEnKj3Tixm9xWerqy_1S2Lw_A8
IJYGMGIclJAXVUsUc&h=AT3LT1r54p_SmxOJ87gyIlfqWg_6ML2699rXWRJ4r59Kc7RvJkPgzsSLfx5i551ZxIBi6RknR1X1
P9cX1tvF3xhxihUoiD8KC-Zf-c3JLhixFNFzWf5kcIRa9VomsPPSGbxENw
 “IT’S NOT ABOUT YOUR
RESOURCES, IT’S ABOUT YOUR
RESOURCEFULNESS.”
-TONY ROBBINS
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 B.2 Elements, Purposes,
Principles, and Functions of
Material Resource Management
ROMNICK R. AGAG
Student
Ed. Mgt. 210
 LEARNING OUTCOMES
This discussion aims to provide an introduction of managing
material resources in education.

Thus, at the end of the session, students should have:

1.Explained the elements, purposes, principle, and functions of
material resource management; and
2.Discussed the importance of managing material resources in
education.
WARM-UP ACTIVITY

SHUTTER ISLAND

If you were stranded on an island, what three

things/materials would you wish were with
you? Why?
A review…
MATERIAL RESOURCE MANAGEMENT is concerned with
the integrated approach to planning, organizing,
controlling of the flow of materials as per the demands,
purchase through internal operations to the service point
through distribution to the consumers.
ELEMENTS OF MATERIAL RESOURCE MANAGEMENT
1. Demand Estimation
⮚ predicting future demand for the product
under given conditions and helped the
manager in making decisions with regard to
production, sales, investment, expansion,
employment of manpower etc., both in the
short run as well as in the long run.
ELEMENTS OF MATERIAL RESOURCE MANAGEMENT
2. Identification of Required Items/Materials
⮚ Materials are critical in the operations in every industry
since unavailability of materials can stop production. In
addition, unavailability of materials when needed can
affect productivity, cause delays and possible suspension
of activities until the required material is available.
ELEMENTS OF MATERIAL RESOURCE
MANAGEMENT
3. Review with resource constraints
⮚ Before you can assign resources to your project, you need
to know their availability. Resource availability includes
information about what resources you can use on your
project when they’re available to you and the conditions of
their availability. 
ELEMENTS OF MATERIAL RESOURCE
MANAGEMENT
4. Computation of Trends of Consumption (Trend Analysis)
⮚ calculate the percentage change for one account over a
period of time of two years or more.
PRINCIPLES OF MATERIAL RESOURCE MANAGEMENT

1. Effective management and supervision

2. Sound purchasing method
3. Skillful and hard poised negotiation
4. Effective purchase system
5. Simple inventory control program
PURPOSES OF MATERIAL RESOURCE MANAGEMENT

Cavinato (1994) states that the purposes of a material

management system should include lowest final cost,
optimum quality, assurance of supply, and lowest
administrative costs.
PURPOSES OF MATERIAL RESOURCE MANAGEMENT

1. Lowest Final Cost

⮚ The materials manager should obtain the materials
needed at the lowest cost possible. By buying the
products at the lowest possible costs, operating costs can
be reduced and profits can be increased.
PURPOSES OF MATERIAL RESOURCE MANAGEMENT

2. Optimum-Quality
⮚ Quality is a very important aspect that the materials
manager has to keep in mind. When specifications
require a high quality product, quality could become
the most important objective.
PURPOSES OF MATERIAL RESOURCE MANAGEMENT

3. Assurance of Supply
⮚ When an organization has a good relations with its
suppliers, it could benefit from the cost reductions,
cooperative environment from the employees of the
supplier, and willingness to help with materials
ordered and orders pending.
PURPOSES OF MATERIAL RESOURCE MANAGEMENT

4. Lowest Administrative Costs

⮚ effective management of materials can minimize the
impact that lack of materials or improper management
of materials could have in the overall schedule and
cost of the project.
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

The typical tasks associated with a material management

system are {(Tersine and Campbell (2004), Ammer (1999),
Stukhart (2007)}:
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

1. Procurement and Purchasing

⮚ Deals with the acquisition of materials to be used in the
operations.
⮚ The primary function of purchasing and procurement is to get
the materials at the lowest possible cost, but keeping in mind
quality requirements.
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

2. Expediting
⮚ continuous monitoring of suppliers to ensure on time
deliveries of materials purchased.
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

3. Materials Planning
⮚ The purpose of materials planning is to procure the
materials for the dates when they are needed, storage
facilities, and handling requirements.
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

4. Materials Handling
⮚ The primary function of materials handling is to manage
the flow of materials in the organization. The manager has
to assure that the costs associated with handling materials
are kept to a minimum.
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

5. Cost Control
⮚ the manager has to insure that the costs to buy materials
are kept to a minimum.
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

6. Inventory Management/Receiving/Warehousing
⮚ The inventory management deals with the availability of
materials.
FUNCTIONS OF MATERIAL RESOURCE MANAGEMENT

7. Transportation
⮚ involves using the safest most economical means to
transport the materials to the site where they are needed.
Typical Material Management
Source: Thabet, 2001
WRAP UP QUESTION
References:
Sharma, S. (n.d). Introduction to Materials Management. Retrieved from
https://www.academia.edu/6465200/INTRODUCTION_TO_MATERIALS_MANAGEMENT

Property Manual Handbook (Asset Management)

Lohrey, J. (n.d). What is Demand Estimation. Azcentral. Retrieved from

https://yourbusiness.azcentral.com/demand-estimation-25210.html

DepEd Order No. 45, s. 2015

Akpan, C. 1999. The Control Function of the School Administrator. Research Gate. Retrieved from
https://www.researchgate.net/publication/338774956_The_Control_Function_of_the_School_Administrator
THANK YOU FOR YOUR ACTIVE
PARTICIPATION!
Unit VI. Management of Material Resources

C. Planning and Procurement

System
Danica Rose T. Savella
MAEd- Educational Management
 Learning Outcomes
At the end of the session, the students should have:

• analyzed the principles in the procurement process stated

in Republic Act 9184.
• explained planning and procurement system in
educational institutions
 WARM UP

F _ L L IN THE
B LA_ K S
 WARM UP
T__ns_are__y
Transparency
 WARM UP

Co_p_ti_i_en_ss
Competitiveness
 WARM UP
Str_aml_n_d
Streamlined
 WARM UP
System of
Ac__un_ab_l_ty
Accountability
 WARM UP
Public
M_nit__in_
Monitoring
Procurement

RA 9184
Government
Procurement Reform Act
Section 3
departments bureaus

“All procurement offices agencies

of the government state universities and

government-owned
and controlled
colleges
corporations
government financial local government units
institutions
PRINCIPLES:
in the procurement process and in the
a. transparency implementation of procurement contracts;
by extending equal opportunity to enable
b. competitiveness contracting parties who are eligible and qualified to
participate in public bidding;
procurement process that will uniformly apply to all

c. streamlined government procurements. The procurement process shall be

simple and made adaptable to advances in modern technology
in order to ensure an effective and efficient method;
PRINCIPLES:
where both the public officials directly or indirectly

d. system of involved in the procurement process as well as in the

implementation of procurement contracts and the
private parties that deal with the government are,
accountability warranted by circumstances, investigated and held
liable for their actions relative thereto; and
of the procurement process and the implementation of

e. public awarded contracts with the end in view of guaranteeing

that these contracts are awarded pursuant to the
provisions of this Act and its implementing rules and
monitoring regulations, and that all these contracts are performed
strictly according to specifications.”
Project Procurement Management Plan (PPMP) and
Annual Procurement Plan (APP)
within the approved budget of the procuring
entity
meticulously and judiciously planned through the
APP prepared, consistent with the government fiscal
PROCUREMENT discipline measures
cover only those considered crucial to the efficient
discharge of government functions formulated and
revised in accordance with the guidelines of the IRR
of RA 9184.
A. Preparation of the Project Procurement Management Plan
(PPMP)
The Project Management Offices (PMOs) are responsible in preparing
and updating their respective PPMPs based on their annual work and
financial plan.
PPMPs shall indicate the:
1. type of items to be procured, whether goods, services or infrastructure projects;
2. extent/size of contracts scope/packages;
3. procurement method to be adopted;
4. time schedule for each procurement activity; and
5. estimated budget for the general components of the contract.
 B. Preparation of the Annual Procurement Plan
(APP)
In the preparation of the APP, consider the following:
• Identify and categorize the items according to common-use
and non-common-use and submit it to the BAC for appropriate
action, except in the Central Office where the common-use
items shall be submitted to the Property Division for purchase
at the DBM-PS.
• Determine the most beneficial and advantageous mode of
procurement to be adopted for non-common-use items
Planning and Procurement System in Educational Institutions

Planning of the material resources is a scientific way of

determining the requirements of equipment, components and
other items for fulfilling the needs the educational institution
within the economic investment policies.
The essence of successful material management lies in
timely planning of the material resources. This involves:

• calculating the consumption patterns of the institution

• taking account of the available stock, requirements of the
institution, listing the sources of supply available,
economic ordering quantity
• maintenance of information system for the necessary
details for better functioning of the educational institution.
Material Resource Planning
-beneficial to ensure that materials and components
required for executing tasks such as conducting
practical classes, day to day maintenance of the
institution, upkeep of the classrooms, laboratories
and other infrastructure.
-essential in educational institutions for improving
teaching-learning process, quicker response to the
change in demand.
- The basic objective of procurement function is to
ensure procuring the best material resources at the lowest
amount and to put it into use in the most constructive
manner so as to achieve maximum output. It is to
purchase best quality of required material in appropriate
quantity at right time from reliable source at right cost.
 Procurement procedures for NON-IUs:
1
• Preparation/updating of the APP;

• Identification of both the common-use and non-common-use items

2 by the SBAC Secretariat and preparation of separate lists for each;
• Performance of the function of the SBAC (conduct of canvass, bidding,
etc.) for items not classified as common-use supplies and preparation of
3 the Agency Procurement Request (APR) by the designated
Supply/Property Officer for commonly use items to be submitted to
DBM-PS in the region where it must be procured;
• Payment of supplies is drawn from the Cash Advance for
4
School MOOE
WRAP UP
References
• RA 9184
• Contemporary Aspects on Institutional Management (book)
• Property Manual Handbook Asset Management
• DepEd Order No. 13, S. 2016
• Executive Order No. 69, S. 2012
• DepEd Order No. 45, S. 2015
Get in Touch
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Send us a message or
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Unit VI. MANAGEMENT OF MATERIAL RESOURCES

D. Budgeting and Allocation

 Outcomes
At the end of the session, you should be able to:
1. Obtain an overview of budgeting and allocation
2. Discuss school’s sources of fund
3. Explain the uses of MOOE
Due to budget cuts the light at the end of
the tunnel has been turned off.
What is budgeting?
 BUDGETING
1. It may be described as the process of preparing a statement of
anticipated revenue and the proposed expenditure over a period of time.

2. Budgeting as a control tool, provides an action plan.

3. Budgets are used to give an overview of the organization and its

operation.
 PURPOSE OF BUDGETING
• Budget helps to set parameters for activities to be done during the
budget period.

• Acts as a control device for regulating spending in the organization

• Provides an objective set of criteria against which a school

performance can be measured.
 ADVANTAGES OF BUDGETING
• Coordinates activities across departments.

• Budgets translate strategic plans into action.

• Budgets provide an excellent record of organizational activities.

.
 ADVANTAGES OF BUDGETING
• Budgets improve communication with employees.

• Budgets improve resources allocation, because all requests are

clarified and justified.

• Budgets provide a tool for corrective action through reallocations

DISADVANTAGES OF BUDGETING
• The major problem occurs when budgets are applied mechanically and
rigidly.

• Budgets can demotivate employees because of lack of participation. If

the budgets are arbitrarily imposed top down, employees will not
understand the reason for budgeted expenditures, and will not be
committed to them.
 DISADVANTAGES OF BUDGETING
• Budgets can cause perceptions of unfairness.

• Budgets can create competition for resources and politics.

• A rigid budget structure reduces initiative and innovation at lower

levels, making it impossible to obtain money for new ideas.
ALLOCATION
 ALLOCATION
• A budgetary allocation is the amount of cash, or budget, you allocate to
each item of expenditure in your financial plan.
• A budget allocation is the amount of funding designated to each
expenditure line.
• It designates the maximum amount of funding an organization is willing to
spend on a given item or program, and it is a limit that is not to be
exceeded by the employee authorized to charge expenses to a particular
budget line.
 HOW TO ALLOCATE?
• Know the scope – to know what your project about.
• Identify resources – to know which tools.
• Track time – analysis of the progress.
• Don’t look only at the big picture – Once you allocate resources you
have to keep track of all of them.
• Don’t over-allocate – because your team will experience burnout and
their productivity will significantly drop.
 Why you need effective resource
Allocation?
1. Flexible for all size –assign resources to project and manage them
effectively.
2. Save money – Effective resource allocation leads to no waste of
money.
3. Improve time management – Proper allocation of resources can set the
actual estimate hours to complete the tasks.
School’s Sources of Funds
 School sources of funds
1. Allocation from the national budget

2. Income Generating Projects or IGP

3. Donations

4. Other government sources

 School-based Financial Management
• Refers to activities undertaken or pursued by a school head and his/her
designated staff that assists in the management of financial and
relevant non-financial resources available to the school

• These are pursued aimed at maximizing the benefits that may be

derived from the utilization of these resources and minimizing the
attendant negative costs or effects of such activities
 BUDGETING
VS
FINANCIAL MANAGEMENT
• Budgeting looks at what’s happening with your financial picture now
and helps you prioritize how you’re spending and saving your money
on a regular basis.

• Financial planning - is a broader look at your entire financial picture

over time..
 MOOE
• It is the allocated funds for public elementary and secondary schools
that can be spent on activities and necessities (i.e. electricity and
water) that support learning programs and help maintain a safe and
healthy environment in schools
 Uses of School MOOE
1. To fund activities as identified in the approved School Improvement
Plan (SIP) for implementation in the current year and as specifically
determined in the Annual Implementation Plan (AIP) of the school.

2. To support expenses for school-based training and activities that are

selected or designed to address the most critical needs that will improve
learning outcomes.
 Uses of School MOOE
3. To finance expenses pertaining to graduation rites, moving up or closing
ceremonies and recognition activities.

4. To procure school supplies and other consumables for teachers and

students deemed necessary in the conduct of classes.

5. To fund minor repairs of facilities, building and grounds maintenance and

the upkeep of the school.
 Uses of School MOOE
6. To pay for wages of full-time janitorial, transportation/mobility and
security services.

7. To pay for utilities and communication expenses.

8. In no case shall the school MOOE be used for the procurement of

school furniture
References
https://hmhub.me/advantages-disadvantages-of-budgeting/

https://www.academia.edu/31177656/PRINCIPLES_AND_PRACTICES_OF_BUDGETING_IN_SCHOOL_FI
NANCE_MANAGEMENT_Explain_the_concept_of_budget_school_budget_and_budgeting#:~:text=As%20a
%20matter%20of%20importance,school%20within%20the%20year%2C%20plan

https://slideplayer.com/slide/11845760/
https://cdn.fbsbx.com/v/t59.2708-21/11399832_837553079647486_475492629_n.pdf/Property-Manual-
Handbook-Asset-Management.pdf?_nc_cat=107&ccb=1-
5&_nc_sid=0cab14&_nc_ohc=OCWvSlGeRvsAX9gw6xH&_nc_oc=AQlLtownnB8rEAay8ADoAx90OAzer4
Q8c1JeIqktn21fphFfe7XXBXSglaXbGyYdc85K-
RKcRaF7bbicblJQB8x2&_nc_ht=cdn.fbsbx.com&oh=5faabb6c077509c9432c3ec15c6b5691&oe=614725A9&
dl=1

https://www.lsbf.org.uk/blog/news/importance-of-financial-management/117410
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Unit VI. Management of Material Resources

E. Directing and Controlling

Ariel R. Peralta
MAEd- Educational Management
 Learning Outcomes
At the end of the session, the students should have:

1. identified the concept of directing and controlling in management

of material resources.

2. understood the importance of directing and controlling in

management of material resources.
 WARM UP
F _ L L IN
THE
B LA _ K S
D_R_CTING

DIRECTING
 C_NTR_LL_N
G
CONTROLLING
Directing and
Controlling

• Purchased from single supplier, at

his quoted price
Direct • Prices may be high
Procurement • Reserved for proprietary materials,
or low priced, small quantity &
emergency purchases.
Directing and
Controlling

• Direct Contracting or single source

procurement is a method of procurement
Direct of goods that does not require elaborate
Contracting Bidding Documents.
• The supplier is simply asked to submit a
price quotation or a pro-forma invoice
together with the conditions of sale.
Directing and
Controlling

Controlling
It implies measurement of accomplishment against the
standards and correction of deviation if any to ensure
achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in
conformities with the standards.
 Control techniques are the various methods or approaches utilized by die
school administrator to regulate, check and curb the excesses of school staff and
students in the discharge of their daily responsibilities. They include the following:

INTERNAL AUDITING AS A CONTROL TECHNIQUE

SUPERVISION OF SCHOOL ACTIVITIES

EVALUATION OF PERFORMANCES

PHYSICAL CONTROL DEVICE

Directing and Controlling – Physical Control/Inventory
Control

Physical It means stocking adequate number

and kind of stores, so that the
Control materials are available whenever
OR
required and wherever required.
Inventory Scientific inventory control results in
optimal balance
Control
Directing and
Controlling

•To provide maximum supply service,

Functions consistent with maximum efficiency &
of optimum investment.
Inventory •To provide cushion between
Control forecasted & actual demand for a
material.
 ABC ANALYSIS
(ABC = Always Better Control)

This is based on cost criteria.

It helps to exercise selective control when confronted with large
number of items it rationalizes the number of orders, number of
items & reduce the inventory.
About 10 % of materials consume 70 % of resources
About 20 % of materials consume 20 % of resources
About 70 % of materials consume 10 % of resources
 ‘A’ ITEMS
Small in number, but consume
large amount of resources
Must have:

•Tight control
•Rigid estimate of requirements
•Strict & closer watch
•Low safety stocks
•Managed by top management
 ‘B’ ITEM
Intermediate
Must have:

• Moderate control
• Purchase based on rigid requirements
• Reasonably strict watch & control
• Moderate safety stocks
• Managed by middle level management
 ‘C’ ITEMS
Larger in number, but consume lesser
amount of resources
Must have:

• Ordinary control measures

• Purchase based on usage estimates
• High safety stocks 
ABC analysis does not stress on items
those are less costly but may be vital
WRAP UP
References

• Revised Implementing Rules and Regulations of Republic

Act 9185, (IRR-A Section 50).
• RULE XV – DISCLOSURE OF RELATIONS
(IRR-A Section 50).
• DO 45, S. 2015 – GUIDELINES ON SCHOOL-BASED
MANAGEMENT (SBM) GRANTS FOR FISCAL YEAR (FY) 2014
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Unit VI. Management of Material Resources

E. WAREHOUSING AND
DISPOSAL
Jesah Marizz E. Bal
MAEd- Educational Management
 Learning Outcomes
At the end of the session, the students should have:

• described warehousing and disposal of government

properties in educational institution

• applied the proper procedures in warehousing and

disposal of government properties
 WARM UP
Argedran eht bledJum tersteL

Arranged the Jumbled Letters

WARM UP
ragesto
Storage
WARM UP

ouseheraW
Warehouse
WARM UP
podislas
Disposal
 WARM UP

tyPorerp dianCusot

Property Custodian
WARM UP
cepInsnoit

Inspection
Warehousing/Storage
• Storage is an important function to ensure that materials are
maintained in proper shape and condition and that there is no
wastage

• It also helps in proper identification and retrieval of items at the

right time without any wastage of time and effort.

• Storage/warehousing refers to the scientific and economical

warehousing of materials for their best safekeeping and
availability.
Warehousing/Storage

Factors to be considered in Warehousing

1) to be able to figure out the amount of materials that can be
stored
Site location and size of 2) for determination of access for efficient and proper transport
storage/stockroom to use of supplies and materials
3) for provision of large size of doorways and entrances
4) for installation of proper lightings and ventilation
Space layout planning for The placement of supplies should be by category, type,
materials to be stored similarity, popularity, sizes, shapes, characteristics

Types of stacking suitable for 1)Bulk Storage

each type of property 2) Medium Lot Storage
3) Small Lot Storage
Warehousing/Storage

Procedures in Warehousing

Supplies, materials and equipment must be accompanied

Receipt of Materials and
by Delivery Receipts (DRs) and/or Sales Invoice (SI) -
Equipment and Other
pre-inspected by the supply officer/designated property
Property
custodian before the items are received

The storekeeper arranges the materials inside the

Arrangement of Materials stockroom in accordance with the prepared storage plan
Warehousing/Storage

Procedures in Warehousing

The storekeeper properly posts and updates the

information (receipts, issuances and balance on hand)
Recording of
Receipts/Deliveries
Settlement of entries of bin cards with stock/property
cards and with physical count of stock on hand
Disposal
• Disposal is the end of the life cycle of a government property.

• This section discusses the reason and the modes of disposing them, the
types of assets that are subject to disposal, and how they are inspected
and appraised.

• A considerable quantity of unserviceable, no longer needed, obsolete,

forfeited/seized supplies, materials and equipment and valueless records
have grown into unmanageable and uneconomical proportions in
various government agencies.
Guidelines in the Disposal

INSPECTION

▪ Inspection is conducted to observe the physical condition of the

property to be disposed.

▪ An ocular inspection is usually done to have a first-hand

observation of the conditions of the property.
INSPECTION
In the conduct of inspection of the property to be disposed, the following shall be
performed:
✔ Identify the property in accordance with its descriptions in the inventory list or directive
✔ Check the condition of the property and determine whether operational, under repair or
irreparable
✔ Determine if the property is economically repairable and the most probable cost of its
repairs and current costs of spare parts
✔ Check for the damage/worn-out or missing parts. Careful determination of its present
physical condition shall serve as basis for its depreciation and correct evaluation/valuation
✔ Verify stated ratings, capacity, model, year of manufacture, serial number, chassis number,
motor number, and other technical specifications, and accessories.
INSPECTION
✔ Determine the correct date when the property has been acquired or its present age/number of years the
property has been used or operated.
✔ Determine the quality or degree of maintenance, repair, restoration or upgrading made, check logbook, if
available.
✔ Determine the extent of use, mileage, rate of depreciation, and any excessive wear and tear.
✔ Determine whether property has still market demand, or the existence of probable buyers in the locality.
✔ Inspect the location of the properties and the available facilities for their transportation.
✔ See if the property is sheltered or exposed to elements and theft.
✔ Determine the parts which could be salvaged or profitably used such as engine, dynamo, wheels, tires,
axles, body/chassis, etc. of motor vehicles.
Guidelines in the Disposal

APPRAISAL

▪ This is usually done to attain more realistic valuation of property

under disposal based on the actual state or condition of properties
being disposed and to provide a reliable basis of ensuring that
government recovers a fair return for the disposal of the properties.
Appraised Value
▪ An estimate or opinion of the value of an adequately described property as of a specific
date transmitted in writing and supported by presentation and analysis of relevant and
factual data.

▪ Unserviceable property which can no longer be repaired or reconditioned shall be

appraised at scrap or junk value.

▪ Unserviceable property which can still be repaired or reconditioned shall be appraised at

sound value.
General Procedures in Appraising the Property for Disposal

1. Conduct an ocular inspection of the property to be appraised to assess its physical

condition.

2. Seek reference price information such as acquisition cost or current market price of
similar property or replacement cost for a similar new property.

3. Compute the appraise value following the revised formula on appraisal of government
properties except real estate, antique property and works of art which considers the
property’s actual physical condition
 Preliminary Documentations
The Inspection Committee of the property to be appraised shall ensure that the corresponding forms
for disposal have been properly accomplished. The forms used for disposal are the following:

1. Inventory and Inspection Report of Unserviceable Property

✔ This form is used for the disposal of vehicles, equipment, furniture and inventory items.
✔ This form should also contain the list of missing parts, if any, which should be accompanied by a
certification of the property officer or custodian as to whether the missing parts were removed
for future stock or have been utilized already for repair purchases.
2. Waste Materials Report

✔ This form is used in the disposal of waste materials which result from the consumption or
utilization of inventory items, and covers damaged equipment parts, empty containers, and
remnants salvaged from destroyed or damaged fixed assets.

✔ The appraiser shall likewise accomplish the checklist for unserviceable equipment.

✔ The checklist shall indicate the individual component/part of the equipment with their
condition whether serviceable, or missing, etc.
MODES OF DISPOSAL
1. Condemnation/Destruction of Property
The condemnation or destruction of property shall be done through pounding, breaking,
shredding, throwing or any other method by which the property is disposed beyond economic
recovery. Destruction shall be made in the presence of the Disposal Committee.
Destruction or condemnation shall be resorted to only under any of the following instances:
✔ when the unserviceable property has no commercial value;
✔ cannot be sold (no buyers);
✔ is hazardous, or is beyond economic repair;
✔ when there is no willing receiver; or;
✔ when the appraised value is less than the administrative cost of sale.
MODES OF DISPOSAL
2. Transfer of Property
The government property can be transferred to any government office or agency with or
without cost upon the request of the owning agency or office.
 
3. Donation of Property
Government property may be donated to charitable, scientific, educational or cultural
institutions without cost subject to existing government rules and regulations on disposal.
 
4. Sale of Unserviceable Property
The sale of unserviceable property can be done through a Public Bidding (PB) subject to
existing government rules and regulations on disposal.
 WRAP UP
What other strategies or procedures can you
add for the best safekeeping and inspection of
government properties?
References
• Property Manual Handbook Asset Management
Get in Touch
With Us
Send us a message or
visit us
City of Batac, Ilocos Norte,
Philippines
(63) 77-600-0459
op@mmsu.edu.ph

Follow us for updates

facebook.com/MMSUofficial
www.mmsu.edu.ph