PROCEDURES IN

PPE INVENTORY
TAKING

LEAGUE OF LOCAL GOVERNMENT ACCOUNTANT OF

ZAMBOANGA DEL SUR (LLGAZS)
 LEGAL BASIS
• DILG Memorandum Circular No. 2023 – 047 dated March 21, 2023
 Conduct of Inventory and Turnover of Barangay/Sangguniang
Kabataan Properties, Financial Records, Documents and Money
Accountabilities by All incumbent Barangay and SK
Officials………………
 Enjoin all the incumbent Barangay and SK Officials (BSKOs) to
conduct an inventory of all government properties under their
custody, and to turn over said properties to the incoming BSKOs not
later than November 30, 2023.
GENERAL GUIDELINES

• Property, Plant and Equipment (PPE) are tangible items that:

(a) are held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes; and
(b) are expected to be used during more than one reporting period.
GROUPS OF PPE:
A. LAND
B. OTHER LAND IMPROVEMENTS
C. INFRASTRUCTURE ASSETS

D. BUILDINGS AND OTHER STRUCTURES

E. MACHINERY AND EQUIPMENT
F. TRANSPORTATION EQUIPMENT
G. FURNITURE, FIXTURES AND BOOKS
H. CONSTRUCTION IN PROGRESS
I. OTHER PROPERTY, PLANT AND EQUIPMENT
LAND

Parcel of lots owned/controlled by the

agency and used or planned to be used in its
operations of rendering basic services to its
constituents/clientele.
Other Land Improvements

Land improvements such as parking lots, landscape,

walkways, driveways, covered walks, fences, and the
like.
 INFRASTRUCTURE ASSETS
 ROAD NETWORKS
 WATER SUPPLY SYSTEMS
 PARKS, PLAZAS AND MONUMENTS
 BUILDINGS AND OTHER STRUCTURES
Refers to the buildings and structures owned/controlled by the
agency and used in its operations for the delivery of basic services
to clients/constituents.
Office buildings, such as Barangay Hall
School buildings
Health centers
Markets
 BUILDINGS AND OTHER STRUCTURES

 Other Structures
- covered court
- comfort room (separate structure)
- canteen
- checkpoint structure
- stage
- sports facilities like badminton court and others
 MACHINERY AND EQUIPMENT
 Office Equipment
It includes duplicating/photocopying machines, air conditioning units and the like.
 Information & Communication Technology Equipment
It includes hardware (computers, printers, scanners, and the like) and pre-loaded
software such as but not limited to operating systems which are included in the cost of
the computer hardware.
MACHINERY AND EQUIPMENT

Agricultural and Forestry Equipment

It includes threshing and milling machines, plow, saw used in
cutting/trimming/pruning trees, grass cutting machines, and
the like.
 MACHINERY AND EQUIPMENT

Marine and Fishery Equipment

Communication Equipment
 MACHINERY AND EQUIPMENT
Construction and Heavy Equipment
It includes bulldozers, forklifts, graders, payloader, dump trucks, and the
like.
Disaster Response and Rescue Equipment
Equipments used solely for disaster response and rescue activities.
-Firefighting equipment and accessories
-Flood rescue equipment
-Earthquake Rescue equipment
-Volcanic eruption rescue equipment
-Landslide rescue equipment
 MACHINERY AND EQUIPMENT
Military, Police and Security Equipment
Includes guns, armored vehicles, bomber aircraft, military tanks, mobile cars,
patrol boats, navy ships, closed circuit television, security cameras and etc.

Medical Equipment
MACHINERY AND EQUIPMENT
Sports Equipment
Equipments for use in the government’s promotion of sports such as treadmills, stationary bikes,
weights, gymnastic facilities, boxing rings, basketball goals, and the like.

Technical and Scientific Equipment

It includes survey equipments (telescopes, laser distance meters), weather tracking equipment,
cartographic, photographic and reprographic equipments, and other specialized equipments i.e. musical
instruments, and the like.
MACHINERY AND EQUIPMENT

Other Machinery and Equipment

These are equipments not otherwise classified under the specific equipment
accounts.
Example: aluminum ladder, welding machine, pump, tents, tire changer, evaporative industrial fan and
etc.
TRANSPORTATION EQUIPMENT

• Vehicles owned/controlled by the agency and used in its operations

Motor Vehicles
Service vehicles for official use such as cars, bus, motorcycles and the like.
 FURNITURE, FIXTURES AND BOOKS

Furniture and Fixtures

-are larger items of movable equipment that are used to furnish an office. Examples are
bookcases, chairs, desks, filing cabinets, and tables.

Books
Includes books and other reference materials including those in electronic copies (in CD/DVD) for use
in government operations.
 CONSTRUCTION IN PROGRESS

• PPEs in the process of assembly or creation.

-Construction in progress - land improvements
- Construction in progress – infrastructure assets
- Construction in progress - buildings and other structures
 GENERAL GUIDELINES

• For proper accountability, the supplies with serviceable life of more than one year
shall be covered by an Inventory Custodian Slip (ICS)
• Supplies with more than 1 year life span shall be maintained until disposal due
to wear and tear, and obsolescence. The B/SK Treasurer shall cancel such ICS
upon receipt of the defective or worn out supplies from the user which shall be
disposed in accordance with existing rules and regulations on disposal of
unserviceable property.
 GENERAL GUIDELINES

• The Barangay/SK Inventory Team (BIT/SKIT) shall be responsible for the actual
count to ascertain the existence, completeness and condition of all PPEs owned by
the government agency.
• Property records shall be updated based on the results of the physical inventory and
reconciled with accounting records to come up with the reconciled balances of PPE
accounts to be considered as the correct balance of the agency's PPEs.
PROCEDURAL GUIDELINES ON INVENTORY
TAKING
• Preliminary activities prior to the conduct of inventory taking:
1. The Accounting unit shall update its record of acquisition/disposal/transfer
of Property/Equipment Ledger Card (PELC) and ensure that the total
balance of PELCs tally with the balances of controlling PPE accounts in the
General Ledger (in the case of barangay).
2. Property/Equipment Card (PEC) shall be maintained for all property and
equipment of the barangay by the Barangay/SK Treasurer.
 PROCEDURAL GUIDELINES ON INVENTORY TAKING

• Preliminary activities prior to the conduct of inventory taking:

3. Require the Accountable Barangay and SK Officials to submit to the
BIT/SKIT the list of all barangay/SK properties that are entrusted to him/her or
under his/her custody/possession.
4. These records and the latest Report on Inventory of Property and
Equipment (RIPE)/Physical Inventory Report, if available, shall be submitted
to the Inventory Team. These documents shall be considered as inventory
working papers and shall be used by the Inventory Team as basis in inventory
taking.
 PROCEDURAL GUIDELINES ON INVENTORY
TAKING (BARANGAY)

• The Barangay Inventory Team (BIT) headed by the Punong Barangay shall
conduct a physical count of all property and equipment of the barangay.
• The BIT, upon the completion of the physical count, shall accomplish the
prescribed Barangay Inventory and Turn Over Form No. 1 as shown in Annex B
of the DILG Circular duly signed and shall be submitted to the City/Municipal
Mayor thru the City/Municipal Accountant, copy furnished the local COA and
DILG Field Office.
PROCEDURAL GUIDELINES ON INVENTORY
TAKING (SK)

• The SK Inventory Team (SKIT) headed by the SK Chairperson shall conduct a

physical count of all property and equipment of the barangay.
• The SKIT, upon the completion of the physical count, shall accomplish the
prescribed SK Inventory and Turn Over Form No. 1 as shown in Annex E in
the DILG Circular duly signed and shall be submitted to the City/Municipal
Mayor thru the City/Municipal Accountant and LYDO, copy furnished the
Punong Barangay, local COA and DILG Field Office.
 PROCEDURAL GUIDELINES ON INVENTORY
TAKING

• (During) Inventory taking:

The Inventory Team shall state clearly the condition of the PPEs, such as: in
good condition, needing repair, unserviceable, obsolete, no longer needed,
not used since purchase, etc.
  UNRECORDED PROPERTY AND EQUIPMENT

• The B/SK Treasurer shall determine ownership of all unrecorded property and
equipment found during the physical count and recommend to the Appraisal
Committee valuation of all those determined to be owned by the barangay/SK, if cost
is not available.
• The Appraisal Committee shall determine the fair value of the unrecorded property
and equipment owned by the barangay/SK.
  UNRECORDED PROPERTY AND EQUIPMENT

•  The B/SK Treasurer shall prepare and issue a PAR to the end user of the item and
shall record the same in the PEC and shall be included in the Inventory and Turn
Over Form.
• The Inventory and Turn Over Form shall include the unrecorded property and
equipment found in station. This shall be the basis in recording the subject property
and equipment.
 MISSING/LOST PROPERTY AND EQUIPMENT

• The Accountable Officers (AO) shall notify immediately the PB/SK Chairperson
and the auditor concerned on the loss of property/equipment.
• The AO shall prepare and submit three copies of Report of Loss and other
supporting documents to the PB/SK Chairperson and the Auditor. He/she shall also
submit a Request for Relief from Property Accountability (RRPA) to the COA
auditor through the PB/SK Chairperson within the statutory period of 30 days from
the date of loss (or such a period as may be allowed by the city/municipal auditor).
MISSING/LOST PROPERTY AND EQUIPMENT

• The PB/SK Chairperson and the proper investigating agency shall conduct an
investigation regarding the lost property/equipment and based on the results of
his investigation, recommends action on the RRPA submitted to the COA
Auditor.
• The Auditor shall conduct his/her own investigation upon receipt of the Notice
of Loss.
 MISSING/LOST PROPERTY AND EQUIPMENT

• The Barangay/SK Treasurer shall submit the Notice of Loss and the result
of investigation to GSIS, if property insured with the Property Insurance
Fund (PIF) for the recovery of the insurable value of the lost asset.
• The Barangay/SK Treasurer shall indicate the loss of the asset in the PEC.
MISSING/LOST PROPERTY AND EQUIPMENT

• The third copy of Notice of Loss and its supporting documents shall be
forwarded to the C/M Accountant who shall reclassify in the books the lost
property/equipment as liability of the accountable officer, considering the
accumulated depreciation thereof (in the case of barangay).
• Pending the receipt of the COA decision on RRPA, the AO concerned shall be
held accountable.
 MISSING/LOST PROPERTY AND EQUIPMENT

• When the COA decision granting or denying the request for relief from
accountability on the lost property/equipment is received, the COA auditor
shall furnish copies of the decision to the PB/SK Chairperson and C/M
Accountant.
• Based on the COA decision, the C/M Accountant shall prepare the
appropriate accounting entry ( in the case of barangay).
 MISSING/LOST PROPERTY AND EQUIPMENT

• A favorable decision shall relieve the AO from accountability while an unfavorable

decision on the request for relief from accountability shall retain the liability of the
accountable officer. The AO shall pay the sound value of the lost property/equipment
as determined by the COA and the B/SK Treasurer shall issue an OR to
acknowledge the receipt of payment. The sound value refers to the appraised value
of the property.
• The B/SK Treasurer shall cancel the PAR and the corresponding PEC.
 END OF PRESENTATION!

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