Republic of the Philippines

City of Manila
Department of Social Welfare
(Kagawaran ng Kagalingan Panlipunan)

PROPERTY & SUPPLY

SECTION

GUIDELINES
ACKNOWLEDGEMENT RECEIPT FOR EQUIPMENT (ARE)

REPORT ON THE PHYSICAL COUNT OF PROPERTY,

PLANTS, AND EQUIPMENTS (RPCPPE)

INVENTORY CUSTODIAN SLIP (ICS)

 FOREWORD

In line with the mandate given by the Officer-In-Charge of the

Manila Department of Social Welfare (MDSW) to further improve
the internal management of the department’s valuable assets, the
Property and Supply Section duly recognize the paramount
necessity of managing said resources through implementing
adaptive methods and measures in line with the principles of
good governance pertinent to the proper inventory and
accounting of all Property, Plants And Equipments (PPE),
consistent with existing laws, prescribed government policies,
rules and regulations.

This guidelines has been designed as part of the internal process

on property administration of the Department and to instruct the
Property Officer/Custodian of all units and intuitions on asset
management, specifically, on the importance of preparing and
record keeping of the Acknowledgement Receipt for Equipments
(ARE) and the, Report on the Physical Count of Property, Plants,
and Equipments (RPCPPE), as well as the Inventory Custodian
Slip (ICS).

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 LEGAL BASIS

Under the 1987 Philippine Constitution, Section 1 Article 11 thereof

provides that the Public Office is a Public Trust. Public officials and
employees must at all times be accountable to the people, serve them with
utmost honesty, responsibility, integrity, loyalty, and efficiently act with
patriotism and lead modest lives.
Also, Section 2 of Presidential Decree No. 1445 otherwise known as
The State Auditing Code of the Philippines states that “all resources of
the government shall be managed, expended or utilized in
accordance with law, rules and regulations & safeguarded against
loss or wastage through illegal or improper disposition with the
view of ensuring economy, efficiency, and effectiveness in the
operation of the government”. The responsibility to take care of such
policy rests directly with the chief or the head of the government agency
concerned.
Accordingly, every officer of the government whose duties require
or permit the possession or custody of funds and property should adhere to
the declared policy of the state. They shall promote the ideas of good
governance in all its branches, department, agencies, subdivisions and
instrumentalities including Government-Owned and Controlled Corporation
(GOCC) and Local Government Units (LGUs). Likewise, they shall exercise
proper transparency, accountability, responsibility and liability in
undertaking their duties and functions. Subsequently, the exercise of such
duties and functions shall mean to provide good governance in the
implementation of programs and projects.
The Head of the Agency is primarily responsible for all government
funds and properties pertaining to the agency. Likewise, the personnel
entrusted with the possession or custody of the funds or property shall be
responsible to the head of Office without prejudice to the liability of either
party to the government.

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
Property Officer/Custodian

The functions and duties of the property officer or custodian at the

Unit/Institution shall be performed by any administrative officer or, in the
absence thereof, by any regular personnel with permanent employment
status, in view of the nature of the responsibility and accountability
involved. Otherwise, the unit or institution head by reason of command
responsibility and over-all supervision may be held directly and jointly
accountable with the personnel that caused the mismanagement, damage
or loss of government property, thus, liable for the administrative and/or
criminal offense resulting from the same, in lieu of the unqualified property
officer or non-designation thereof.

Duties of the Property Officer/Custodian

at the Unit or Institution

1. Shall prepare the PPMP of the Unit/Institution.

2. Shall accept, distribute and monitor all deliveries of supplies, materials
and equipment to the offices under the Unit/Institution and prepares
necessary reports required by the Property & Supply Section.
3. Shall prepare the request for inspection of deliveries of supplies,
materials and equipment as well as the Inspection and Acceptance
Report (IAR).
4. Shall prepare and maintain Property and Stock Cards for all properties
and supplies of the Unit/Institution.
5. Shall prepare and endorse the clearance of property accountability for
all officials and employees of the Unit/Institution with the Property &
Supply Section.
6. Shall initially prepare and keep an updated Record of the
Physical Count of Inventories (RPCI), the Report on the
Physical Count of Property, Plants, and Equipments (RPCPPE),
and the Acknowledgement Receipt for Equipment (ARE) of all
property, plants, and equipment situated at the unit/intuition.
7. Other relative functions pertinent to the said designation.

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
Acknowledgement Receipt for Equipment (ARE)

The ARE is an official instrument used for PPE accounts when issued to
officials and regular personnel other than the Property & Supply Section of the
department, it is proof that the PPE has been duly issued, assigned or
transferred by the head of the said section to a regular personnel who will
assume the responsibility and be accountable thereto.

Generally, ARE covers all PPE either acquired through the regular
procurement process or was donated to the department or to its units,
centers or institutions, and those which are transferred to it by any other
agency, department, or government offices. However, items that are
considered as tangible assets with serviceable life of more than one year but
small enough to be considered as PPE are excluded from ARE but are required
instead to be issued with the Inventory Custodian Slip (ICS).

Importance of the Acknowledgement Receipt for Equipment

An ARE serves two functions: first, as an official receipt that

acknowledges the acceptance of responsibility and accountability of an officer
or personnel who received a government property, plant or equipment for
official use; and second, as an official record relative to the source, date
acquired, specification of the subject item, and other pertinent details.

It is indispensable not only as an integral tool in the internal

management and control of the department over its PPE, but a vital reference
data on the Regular Physical Count of Inventories (RPCI) and the basis of the
annual preparation of the Report on the Physical Count of Property, Plants,
and Equipments (RPCPPE).

Process:

The ARE form shall be initially accomplished in triplicate copies by the

property officer/custodian of the concerned unit or institution, which will be
forwarded to the Property & Supply Section for review and/or inspection, prior
to processing the same with the City General Services Office (CGSO).

After the said ARE has been processed by the CGSO, the same upon its
return to the Property & Supply Section, shall be submitted to the office of the
Head of the Department for the final signature of the Officer-In- Charge.

Thereafter, the ARE shall be filed and recorded with the Property &
Supply Section which shall furnish two copies thereof to the concerned unit or
institution, one copy for filing and record keeping of its property
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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
officer/custodian and the other copy for the personnel who received the
subject PPE.

Normally, AREs shall be renewed every three (3) years, unless there is
a transfer/reassignment, resignation, dropping from the rolls or retirement of
personnel, thus, requiring the issuance of a new ARE indicating the transfer of
responsibility and accountability to the new receiver.

Any PPE of a unit or institution not covered by an ARE shall be placed

under the direct responsibility and accountability of the Unit/Institution Head,
hence, ARE/s will be accordingly prepared and issued under the latter’s name
for the said purpose.

The AREs shall be filed alphabetically by the designated property officer

or custodian for ready reference. It shall be renewed on the third year after
issuance. AREs that are not renewed after three years shall not be considered
in making the physical count of the equipment.

Details to be Indicated in the ARE Form

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
LEGEND:
Red - To be aptly acted upon by the concerned Unit/Institution
Blue - To be aptly acted upon by the Property & Supply Section
Green - To be aptly acted upon by the CGSO

Usefull Life – this pertains to the number years of the

ARE Number – the no. shall be
property, plant & equipment based on its type. (Refer
to the Appendices, at page 7.) provided by the CGSO upon being
processed.

The Quantity and Unit – the number of quantity
and unit of the subject item for ARE.
Description – the property description as to the
kind, type, model, physical dimensions,
specifications, serial number and other details.
Class – the Class number depends on the
type of the property as listed in the Revised
NGAS Chart of Accounts. (Refer to the
Appendices, at page 8.)
Unit Price – the amount
indicated in the Delivery Receipt
or Purchase Order, or Invoice
Order, if any.

Property Number – in case of

new items the no. shall be
provided by the concerned
unit/institution. If not, it will
follow the designated property
no. given in the previous ARE or
RPCPPE.

The current Receiver’s Signature

above Printed Name, with
official designation and
item/position – this pertains to
the personnel who received and
has possession of the subject
PPE

Remarks – in case of old PPE, it

should always indicate the
transfer of accountability and
responsibility from the previous
personnel who received and
possessed it, to the present
receiver.

If new, then indicate that the

accountability and responsibility
is transferred to the receiver.

If the PPE is acquired from

another department or agency,
as a note, indicate whether the
said transfer is with or without
cost.

To be noted by the Head of the Property &

Supply Section as the Supply For inspection and
Officer/Property Custodian of the Dept. processing of the
CGSO After being processed at the
Indicate details as to the P.O. No., Invoice CGSO and returned back to the
No., and Supplier, if the item was MDSW, the ARE is for the final
purchased or procured. If the item was signature of the Officer-In-
donated merely acquired from another Charge.
Donor or source agency or office, then
indicate the name of the said source as
REPORT ON THE PHYSICAL COUNT OF PROPERTY, PLANTS,
well as the date it was acquired.

AND EQUIPMENTS (RPCPPE)

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 The RPCPPE is the official instrument used on reporting the physical
count of PPE by type such as land, land improvements, infrastructure,
building and other structures, machinery and equipment, transportation
equipment, furniture, fixtures and etc., which are owned by the agency. It
shall be prepared yearly by Department.

Importance of the RPCPPE

Needless to say, the RPCPPE is essential part of proper property

management and accounting of any government agency. It is required to be
submitted annually as part of the auditing process in order to reconcile the
actual physical inventory count and accounting records.

Process:

The Units, Centers or Institution shall initially prepare an updated

RPCPPE per division during the last quarter of every year dating the same- AS
OF the last day of the Month of December.

On or before the end of the 1st week of the month of January of the
succeeding year, a hard and soft copy of the updated RPCPPE of the said
Units, Centers or Institution shall be submitted to the Property & Supply
Section for review and if required an initial inspection or physical inventory will
be conducted thereon.

Upon ascertaining the consistency and correctness of the RPCPPEs, the

Property & Supply Section shall proceed in consolidating it all and prepare the
same according with the guidelines to be set by the CGSO.

An initial copy of the consolidated RPCPPE shall then be given to the

Inventory Committee, composed by the respective representative of the Office
of the City Administrator, CGSO, Commission on Audit (COA), Office of the
City Accountant (OCAT) and this Section. Said copy will be utilized as their
reference for the scheduled inventory inspection to be conducted throughout
the entire department.

After the inspection of the Inventory Committee, any findings or

concerns will be acted upon by the said section and shall likewise edit the
consolidated RPCPPE accordingly, if necessary. The attention of the concerned
unit, center or institution shall be called upon should there be any irregularity
or anomaly without prejudice to the filing appropriate administrative and/or
criminal charges against the officer or personnel who shall be found
responsible thereto.
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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 Generally, the report shall be certified correct by the Inventory
Committee Chair and Members, signed by the Property & Supply Officer,
Chief Administrative Officer, approved by the Head of the Department or
his/her Authorized Representative, and verified by the COA Representative.

It shall be prepared in four (5) copies formally endorsed to the Office

of the City Administrator through the CGSO, copy furnished to all the
members of the Inventory Committee. The last copy thereof will be kept by
the Property & Supply Section for record purposes.

Details to be indicated in the RPCPPE

This form shall contain the following details:

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
a) Type of Property, Plant and Equipment –PPE account name such
as Heavy Equipment, Technical and Scientific Equipment, Motor
Vehicle, Office Equipment, Furniture and Fixtures, etc.
b) As of __________ – date of the report
c) Fund Cluster–fund cluster name/code in accordance with UACS
d) Name of Accountable Officer – name of the accountable officer
e) Official Designation– official designation of the accountable officer
f) Entity Name–agency or office where the accountable officer is
assigned
g) Date of Assumption– first day of assumption of the duties and
responsibilities as accountable officer
h) Article – type of item or article (e.g., personal computer, printer,
filing cabinet, etc.)
i) Description – brief description of the article/item (e.g., Acer monitor
for personal computer, Epson for printer, etc.)
j) Property Number – assigned property number by the Supply and/or
Property Division/Unit
k) Unit of Measure – unit of measurement of the property, plant and
equipment (e.g., piece, set, etc.)
l) Unit Value – cost per quantity unit
m) Quantity-Per Property Card – quantity of items or articles
appearing in the PC
n) Quantity-Per Physical Count –quantity of items or articles per
physical count
o) Shortage/Overage –excess of the quantity and total value of items
or articles per PPELC over that of the physical count or vice versa
p) Remarks – whereabouts, conditions and other relevant information
relative to PPE

(Refer to the sample RPCPPE copy at the Appendices at page 9.)

INVENTORY CUSTODIAN SLIP (ICS)

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 The ICS is the form used by the Supply and/or Property Custodian
issued to the end user or personnel to establish accountability over tangible
items amounting to less than Php. 15,000.00 with serviceable life of more
than one year but small enough to be considered as PPE.

Importance of the ICS

It is prepared for monitoring, control and accountability of small tangible

items as proof of its issuance to the personnel.

Process:

Beforehand, all supplies and equipment considered as small tangible

items either procured by the department or was donated thereto should be
properly accounted (recording and maintenance of stocks cards) by the
Property Officer or Supply Custodian of the unit, center or institution.

Any personnel who shall request for such supplies or equipment shall
properly accomplish an Requisition Issue Slip (RIS) and approved by the Unit,
Center or Institution Head.

Upon receipt of an approved RIS, the concerned Property Officer or

Supply Custodian shall prepare an ICS relative to the requested supplies or
equipment.

The said ICS shall be submitted to the Unit, Center or Institution Head
to update the latter as to the status and /or availability of the items covered
therein with recommendation as to allowable of supplies that can be released.

Upon approval of the ICS the same shall be return to the Property
Officer or Supply Custodian, who shall input the number of items to be
deducted and update the balance in the stock card corresponding to the
property account.

The allowed supplies/equipment in the ICS shall then be issued to the

requesting personnel who will sign therein as proof that he received the
subject items.

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
Instructions

A. This form shall be accomplished as follows:

1. Agency logo and letterhead – name, address and logo of the agency
2. ICS No. – assigned control number
3. Quantity – number of units given to the concerned employee or user of
the inventory item with estimated useful life of more than one year
4. Unit – unit of measurement
5. Description – brief description or details of the items issued to the
concerned employee, including serial number in case of equipment with
serial number
6. Inventory Item No. – assigned property number of the inventory item
issued
7. Estimated Useful Life – estimated useful life of the item issued

B. The ICS shall be prepared in two copies distributed as follows:

Original – Supply and Property Section
Duplicate Copy – Recipient or user of the inventory

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 Appendices

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MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 12
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 12
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16