Custodianship

S Definition of Property Custodianship

C Accountability, Responsibility and Liability

Inventory Taking
O Inventories & PPE

P Fidelity Bond

E Relief from Accountability

REFERENCES:
- Government Accounting Manual
- PD No.1445
- 2009 Revised Rules on Procedure of COA
- Treasury Circular No.02-2019
PROPERTY
CUSTODIANSHIP
 refers to the guardianship of government
property by the person accountable.
 receipt of supplies, materials and
equipment,
 the safekeeping
 issuance
 repair and maintenance
PROPERTY
CUSTODIANSHIP
 it also includes accountability, responsibility and liability
of accountable or responsible officer on property arising
from
 loss
 misuse
 damage
 deterioration due to fault or negligence in the
safekeeping thereof
RESPONSIBILIT
Y
 acceptance of assigned authority and the
obligation to exercise this assigned authority
attached to the role of an individual or group
participating in organizational activities or
decisions.
ACCOUNTABILIT
Y
 person’s obligation to carry out
responsibilities and be answerable for
decisions and activities.
Responsibility Accountability
 Accountable for
 Responsible for ensuring that the task is
completing the task completed appropriately
 The “doer”  Where the buck stops
 Can be shared to  Only one person can be
others accountable for the
 Responsible to the action
 Ensure that the work is
person accountable
completed to the
required standard
“Every public officer, whose duties permits or requires the
possession or custody of public funds and property, is
accountable and responsible for the safekeeping thereof. He
is liable for all losses, resulting from the unlawful deposit, use
or application thereof and attributable to negligence in the
keeping of the same. Other officers though not accountable
may likewise be similarly held accountable and responsible
through their participation in the use or application thereof .”
LIABILITY
 the obligation that arises as a
consequence of an illegal or improper
act or the non-performance of what one
is mandated to do.
“Accountable Officer is generally liable for the
improper or unauthorized use or misapplication
of property, by himself or any person for whose
acts he may be responsible, and for the loss,
damage or deterioration thereof thru negligence,
whether or not it be in his actual custody at the
time.” Measures of liability of AO (Sec 105, PD # 1445)
Responsibilit
y

Liabilit
y

Accountability
INVENTORY
TAKING
 An indispensable procedure for checking the
integrity of property custodianship.
 The physical stock-taking of equipment and supplies
serves as a basis for preparing accounting reports.
 The Accounting and the Supply/Property Unit should
reconcile their records.
PHYSICAL COUNT
 Inventories - RPCI - Semi Annual
 Property, Plant & Equipment – RPCPPE -
Annual
INVENTORY ITEMS
 Expendable Supplies - items which are normally
consumed in use within one year or converted in the
process of manufacture or construction
 Semi-expendable - Items below the capitalization
threshold of P15,000.00 which are not consumed in use
and ordinarily retain their original identity for more than
one year.
 Semi-expendable items with estimated useful life of more than
one year shall be recorded as inventories upon acquisition and
as expense upon issuance.
 For monitoring, control and accountability,

INVENTORY ITEM ISSUANCE/

MONITORING
Semi-expendable ICS

Expendable Supplies RIS/Stock Card

PROPERTY, PLANT AND
EQUIPMENT
 tangible assets
 meets capitalization threshold of P15,000
 used to achieve government objectives/ mandate
 Items individually valued below threshold but function
as a network asset with total value over P15,000 shall
be recognized as part of the primary PPE
ITEM ISSUANCE/
MONITORING
PPE PAR/Property Card
MODES OF ACQUIRING PPE
Constructio
Purchase n

Transfer Donation
PPE COST COMPOSITION
 Purchase price including import duties and non-
refundable purchase taxes after deducting trade
rebates/discounts
 Any cost attributable to bringing the PPE to the location
and condition necessary to be operable in the manner
intended by mgmt. (installation & assembly)
PPE ACCOUNTABILITY FLOW
Property Officer
issue PAR to
End-User will
End-User
accomplish PTIS to
Accountant return the PPE
will issue
JEV

Property Officer will Property Officer

submit IIRUP/PTIS will cancel PAR
for dropping to
accounting

Property Officer
Property Officer
will accomplish
will update
PTIS for Turn-In to
Property Card
Disposal Yard
PPE ACCOUNTABILITY
 The person in possession of or having custody or control of property is
immediately accountable therefore and Property Acknowledgement Receipt (PAR)
shall be issued.
 When the equipment issued to an officer or employee is no longer needed by him,
said equipment shall be returned to the Property Officer.
 Upon receipt of the returned equipment, the Property Officer shall cancel the
original PAR and shall surrender the same to the concerned employee.
 The return of the equipment shall be posted in the Property Card by the Property
Custodian either for reissuance, repair or disposal
 A new PAR shall be accomplished and issued to the new user.
The Accountable Officer shall maintain/keep records of his
property accountability and shall render accounts as
prescribed by the COA. The Head of the Agency may
designate such number of property officer or agents as
maybe deemed necessary. Upon appointment or
designation he/she must be properly bonded with the
Bureau of Treasury Fidelity Fund.
FIDELITY BOND
 an insurance of bondable public officer under the
Fidelity Fund to assure:
 faithfully perform all the duties imposed by law
upon him;
 faithfully account all funds and public property
coming into his possession, custody of control.
FIDELITY BOND COVERAGE
Property Accountability
Equipment • 30% of total value
Supplies and • 50% of total value
Materials
Accountable • 10% of total value
Forms
FIDELITY BOND
The bond shall NOT be used in the following:
LIMITATION
 To replace fines imposed on a bonded official/employee as
a result of criminal conviction for violation
 To answer for liability of a bonded official/employee
convicted of estafa through falsification of public
documents
 To refund the accountability of a bonded official/employee
found liable for shortage in his accountability
RELIEF FROM
ACCOUNTABILITY
 Immediately notify the auditor within 30 days of the
occurrence of the loss;
 submit an application for relief, supported by required
documents.
 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
LEVEL OF AUTHORITY
Resident Auditor
• Amount not to exceed 100,000

Cluster/ Regional Director

• Amount exceeding 100,000 but not exceeding 500,000

Adjudication and Settlement Board

• Amount exceeding 500,000 but not exceeding 5,000,000

Commissioner
• Amount exceeding 5,000,000
01: REGULAR AGENCY FUND
02: FOREIGN ASSISTED PROJECTS FUND
03: SPECIAL ACCOUNT-LOCALLY FUNDED/DOMESTIC GRANTS
FUND
04: SPECIAL ACCOUNT-LOCALLY FUNDED/FOREIGN
GRANTS FUND
05: INTERNALLY GENERATED FUNDS
06: BUSINESS RELATED FUNDS
07: TRUST RECEIPTS