7.2.5 Inventory Taking and Reconciliation

a. The Inventory Committee headed by the PB or his authorized representative and the BT as his member shall conduct a physical count of all property and equipment of the barangay at least once a year.

b. The Inventory Committee, upon the completion of the physical count, shall prepare three copies of Report on Inventory of Property and Equipment (RIPE), as shown in Annex 30 and shall be approved by the PB. The RIPE shall be distributed as follows:

Original - to COA Auditor through C/M Accountant
Duplicate copy - to the C/M Accountant
Triplicate copy - to the BT

c. The RIPE shall be the basis of the C/M Accountant for reconciling the results of inventory with the PPE accounts.

d. The RIPE shall be the basis of the BT for reconciling the equipment that should be covered by ICS with the actual file of ICS.

7.2.6 Unrecorded Property and Equipment

a. The BT 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, if cost is not available.

b. The Appraisal Committee shall determine the fair value of the unrecorded property and equipment owned by the barangay.

c. The BT shall prepare and issue a PAR to the end user of the item and shall record the same in the PEC.

d. The RIPE shall include a separate caption of the unrecorded property and equipment found in station. This shall be the basis of the C/M Accountant in recording the subject property and equipment in the books of accounts.

7.2.7 Missing/Lost Property and Equipment

a. The Accountable Officers (AO) shall notify immediately the PB and the auditor concerned on the loss of property/equipment.

b. The AO shall prepare and submit three copies of Report of Loss and other supporting documents to the PB and the Auditor through the BT. He/she shall also submit a Request for Relief from Property Accountability (RRPA) to the COA auditor through the PB within the statutory period of 30 days from the date of loss.

c. The PB 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.

d. The Auditor shall conduct his/her own investigation upon receipt of the Notice of Loss.

e. The BT 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.

f. The BT shall indicate the loss of the asset in the PEC.

g. 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.

h. Pending the receipt of the COA decision on Request for Relief from Property Accountability, the AO concerned shall be held accountable.

i. 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 and C/M Accountant.

j. Based on the COA decision, the C/M Accountant shall prepare the appropriate accounting entry.

k. 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 BT shall issue an OR to acknowledge the receipt of payment. The sound value refers to the appraised value of the property.

l. The BT shall cancel the PAR and the corresponding PEC.



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