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    Inventory

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    Arlea Asenci
    1. The document provides guidelines for conducting a physical inventory of properties, equipment, supplies, and materials for the Department of Social Welfare and Development. 2. Inventory committees will be formed at the central office and field office levels to conduct the physical counts and reconcile records. 3. The inventory aims to validate property records and existence, check supplies levels, and update property records.

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    Inventory

    Uploaded by

    Arlea Asenci
    69 views4 pages
    1. The document provides guidelines for conducting a physical inventory of properties, equipment, supplies, and materials for the Department of Social Welfare and Development. 2. Inventory committees will be formed at the central office and field office levels to conduct the physical counts and reconcile records. 3. The inventory aims to validate property records and existence, check supplies levels, and update property records.

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    1. The document provides guidelines for conducting a physical inventory of properties, equipment, supplies, and materials for the Department of Social Welfare and Development. 2. Inventory committees will be formed at the central office and field office levels to conduct the physical counts and reconcile records. 3. The inventory aims to validate property records and existence, check supplies levels, and update property records.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    69 views4 pages

    Inventory

    Uploaded by

    Arlea Asenci
    1. The document provides guidelines for conducting a physical inventory of properties, equipment, supplies, and materials for the Department of Social Welfare and Development. 2. Inventory committees will be formed at the central office and field office levels to conduct the physical counts and reconcile records. 3. The inventory aims to validate property records and existence, check supplies levels, and update property records.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    I.

    Rationale:
    Property and supply inventory is an itemized list of supplies or property on hand containing
    designation or description of each specific article with its valuation. Section 490 Volume I of the
    Government Accounting and Auditing Manual (GAAM) states that Physical Stock-Taking is an
    indispensable procedure for checking the integrity of property custodianship. In all cases, the physical
    inventory taking which is required semi-annually or annually should be regarded with importance.
    Chief of agencies are required to take physical inventory of all the equipment and supplies belonging
    to their respective offices at least
    once a year, unless otherwise determined by the Commission on Audit
    (COA) chairperson in specific cases.
    The conduct of physical inventory of properties and equipment and
    supplies is one way of attesting the physical existence of properties and
    serve as a basis for preparing accounting reports, and is vital in the
    planning of additional acquisitions. Thus, this Memorandum Circular is
    issued to guide the conduct of such in the Department.

    II.Objectives:
    1. To validate the existence of properties and equipment;
    2. To check the integrity of records of stockpiled items;
    3. To determine the conditions and functionality of properties and.
    equipment; and
    4. To update records on properties, equipment and supplies and
    materials.
    III.
    Composition of the Inventory Committee
    Members of the Inventory Team under Department Order No. 07 Series
    of 2000 shall be reconstituted and amended so as to re-name the
    REPUBLIKA NG PILIPINAS
    KAGAWARAN NG KAGALINGANG PANLIPUNAN AT PAGPapaunlad
    (DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT)
    BATASAN PAMBANSA COMPLEX, CONSTITUTION HILLS
    quezon city

    Inventory Team to National Inventory Committee for Central Office


    (C.O.) and Inventory Committee for Field Offices (FOs).
    Th
    The composition is as follows:
    1. Central Office (C.O.)
    Chief, Property Management Division (PMD)
    Chief, Accounting Division
    2 representatives, Procurement and Supply Division
    2 representatives, Accounting Division
    1 representative, Mgmt. Information Systems Service
    Chairperson
    Vice-Chairperson
    Members
    Members
    Member
    Any deficiency in manpower shall be filled-up by staff from the PMD.
    The Chairperson may appoint additional members from his/her staff
    subject to the approval by the Secretary or his/her/representatives.
    The inventory shall be witnessed by representative/s either from the
    Internal Audit Service (IAS) and/or the Commission on Audit.
    2. Field Offices
    Chief, Management Division
    Supply Officer
    Field Office Accountant/Accounting Representative Member
    Field Office IT Coordinator
    Member
    Chairperson
    Vice-Chairperson
    The Field Office Director may appoint additional members if necessary.
    The inventory taking activities shall be also witnessed by
    representative/s either from the Internal Audit Service (IAS) and/or the
    Regional Commission on Audit/Field Office Resident Auditor.
    The Property Management Division in C.O. and the Property and Supply
    Unit in the Field offices shall serve as the Secretariat to the Committee.
    All the records and other pertinent documents relative to the inventorý
    of properties shall be kept in their custody.
    IV. Functions
    Once the inventory taking has started, the Committee shall perform the
    following functions on a "Jury Duty" to avoid interruption of the activity:
    1. Verify existence of properties and equipment;
    2. Validate stock level/count of all stockpiled items;
    3. Reconcile and prepare reports of discrepancies between physical
    count and property records;
    4. Establish accountability and responsibility over the properties and
    equipment;
    5. Establish conditions and functionality of properties and equipment;
    6. Prepare and submit the final Inventory Reports together with the
    recommendation and findings to the Secretary or his/her
    representative in C.O. or to the Director in FOs for approval.
    v.
    Terms of Assignment of chairperson, vice-chairperson and members of
    the Committee
    The chairperson and vice-chairperson shall have indefinite terms of
    assignment unless otherwise terminated by the Secretary or his/her
    representative in which case, a new chairperson or vice-chairperson will
    be appointed to assume the post.
    All members of the committee shall havrenewable term of
    assignment for two (2) years unless otherwise sooner terminated or
    revoked. In the event of transfer to other office, resignation, termination
    of service and recall of assignment of a member, his/her immediate
    supervisor should recommend a replacement.
    VI. Inventory Procedures
    Prior to the conduct of the actual inventory by the Committee, a standard
    form on the list of existing properties/equipment shall be filled up by
    each office for submission to the property office/unit for initial
    assessment and study not later than October 15 of every year.
    1. Conduct of Physical Inventory
    The Committee is responsible for the actual count and in ascertaining
    the existence of all properties/equipment and supplies and materials
    on stock. The valuation and/or costing for unvalued properties shall
    be the responsibility of Accounting Division/Unit.
    Any adjustment of records of properties and supplies and materials
    shall be done immediately by the Committee with the knowledge and
    consent of the head of the office concerned
    3 of 6

    2. Frequency of Inventory Taking Activity


    Classification
    Supplies and
    Materials
    Property Plant and
    Equipment
    Accountable Forms
    Cut off date Start of Inventory Submission of Report
    June 30
    December 31
    December 31
    December 31
    On or before July 31 of current
    year
    1st working day of July
    1st working day of On or before January 31 ofthe
    January
    succeeding year
    1st working day of On or before January 31 of the
    November
    succeeding year
    1st working day of On or before January 31 of the
    January
    succeeding year
    3. Documents Required as Basis of Inventory Taking Activities
    a. Prior Year's Inventory Reports
    b. Property Ledger Cards (PLC)
    c. Supply Ledger Cards (SLC)
    d. List of Newly Acquired Equipment/Properties
    e. Memorandum Receipts (MR)
    f. List of Properties/Equipment Submitted by Each Office/Unit on
    October 15 of each year
    g. Deed of donation and acceptance of donated properties
    h. Other documents relevant to the inventory
    4. Property Identification
    The Department shall adopt a uniform identification system for easy
    recognition of equipment/property/ies. The property officer shall
    assign a property sticker for each and every property/equipment
    according to the system. The property sticker shall contain all vital
    information of each equipment/property for easy identification, as
    follows:
    a. Brief description of the property/equipment
    b. Model Number
    c. Serial Number
    d. Property Number
    e. Acquisition Date
    f. To Whom Assigned/Responsible Officer/Employee
    g. Space for Validation/Signature of the Inventory Committee
    5. Validation/Inventory Taking
    In order to facilitate the smooth conduct of inventory, the
    Chairperson of the Committee shall give specific assignment to
    his/her members as follows:
    4 of 6

    a. Check the property description as listed in the reference


    documents and state its present condition.
    This will be done by the Counter.
    b. Replace the property sticker/tag if necessary.
    This will be done by the Tagger.
    c. List all equipment/properties that are found at the station but not
    listed in the reference documents and indicate the condition of the
    equipment/property in the remarks portion of the inventory sheet.
    This will be done by the Checker.
    d. Sign the space provided on the sticker/tag indicating therein the
    date of inventory.
    This will be done by the Validator who is usually the chairperson
    or vice-chairperson of the Committee unless delegated to other
    member.
    After the physical inventory, the inventory committee shall reconcile
    the results of the activity with the property and accounting records.
    All discrepancies between the physical count and records shall be
    reported to concerned staff/official and reconciled immediately.
    VII. Preparation and Submission of Reports
    Upon completion of the physical count, the Committee shall prepare the
    required annual or semi annual inventory reports. The inventory reports
    shall be certified correct by the Committee, attested by witnesses from
    COA and/or IAS subject to the approval of the Secretary or his/her
    representative in Central Office and by the Director in FOs.
    Such inventory reports shall be made in official form (GF 41(A)) and
    reproduced in three (3) copies. Upon approval by the Secretary or
    his/her representative in C.O. and the Director in FOs, a copy of the
    reports shall be submitted to the auditor concerned not later than the
    deadline specified under VI. Inventory Procedures, 2. Frequency of this
    guideline.
    5 of6

    VIII. Effectivity
    This Circular shall take effect immediately and amend and/or revoke all
    other issuances, guidelines, or their specific provision/s inconsistent
    with this guidelines.
    ix.
    Issuance
    Issued this 19thday of 2006＿ at Quezon City, Philippines.
    ESPERANZAI, CABRAL
    Secretary
    /
    6 of 6

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