Systems and Procedures

Manual on the Management

of Barangay Funds and
Property

SUPPLIES & MATERIALS,

PROPERTY, PLANT & EQUIPMENT,
PUBLIC INFRASTRUCTURES and
REFORESTATION PROJECTS
Learning
Objectives
 To understand the operating, recording and
reporting policies governing supplies and
materials, property, plant and equipment,
public infrastructures and reforestation
projects;

 To know the responsibilities of barangay

officials and staff; and

 To familiarize with the forms and reports

Policies on the following:
 Requisition and Procurement
 Issuance of Supplies and Materials
and PPE
 Physical Count of PPE
 Loss of PPE
 Disposal of Supplies and Materials
and PPE
Policies on the following:
 Insurance of PPE
 Public Infrastructures and
Reforestation Projects
 Costing of Supplies and PPE
 Recording Supplies and Materials,
PPE, Public Infrastructures and
Reforestation Projects
 Reporting PPE
 Policies on Requisition and
Procurement

a. The BT shall act as the Property

Officer responsible for the receipt,
upkeep, issuance and physical
inventory of barangay property;
b. All procurement shall be covered by
Approved Procurement Program
(APP);
 Policies on Requisition and
Procurement

c. Total estimated cost of the APP shall

not exceed the total appropriations
authorized for the acquisition of
supplies or property;

d. All procurement shall be in

accordance with the requirements of
RA 9184, the Procurement Law;
 Policies on Requisition and
Procurement

e. Procurement of supplies shall be

directly charged to MOOE

f. Procurement of PPE and construction

of Public Infrastructures shall be
charged against appropriations for CO
 Policies on Requisition and
Procurement

g. Request for procurement of supplies

and property shall be covered by
approved Purchase Requests (PR);

h. Purchases shall be covered by

approved Purchase Orders (PO);
 Purchase Request

This form shall be prepared by the

requisitioner for the procurement of
supplies, materials and PPEs. It shall be
the basis in preparing the PO.
 PURCHASE REQUEST
Barangay: Simamla P.R. No.: 07-01-001
City/ Municipality: Virac Date : 1/2/07
REQUISITION
Item Unit of Estimated Estimated
Qty
Number Issue Item Description Unit Cost Amount
1 1 pc Cannon BJC 210 3,025.00 P 3,025.00
2 1 set Acer computer 30,000.00 30,000.00

Total Estimated Amount P 33,025.00

Purpose:

Requested by: Approved:

___________________________________
Signature over Printed Name Signature over Printed Name
Requisitioner Punong Barangay
_________________ _________________
Date Date
 Purchase Request

This form shall be prepared in three

(3) copies to be distributed as follows:
Original – to be attached to the
PO
2nd copy – Requestor
3rd copy – BT
 Purchase Order

This form shall be prepared by the BT

for every purchase to be made addressed
to the supplier requesting the
supply/delivery of the specified items in
accordance with the terms of the purchase
as agreed upon during the procurement
process.
 PURCHASE ORDER
Barangay: Simamla City/ Municipality: Virac
Tel. No. 811-2318 Province: Catanduanes
Supplier : Perry's Electonics P.O. No.: 07-01-001
Address : Salvacion, Virac, Catandunes Date : 1/2/07
TIN : 136-435-089 Mode of Procurement:
 Bidding Negotiated Over the Counter
Gentlemen:
Please deliver to this Office the following articles subject to the terms and conditions contained herein:
Place of Delivery: Simamla, Virac, Catanduanes Delivery Term: 5 days upon receipt
Date of Delivery: 1/10/07 Payment Term: 2/10, n/30
Unit Particulars Quantity Unit Cost Amount
pc Cannon BJC 210 1 3,025.00 P 3,025
set Acer computer 1 30,000.00 30,000.00

(Total Amount in Words) Thirty three thousand and twenty five pesos only P33,025.00

In case of failure to make full delivery within the time specified above, a penalty of one-tenth (1/10)
of one percent for everyday of delay shall be imposed.

Very truly yours,

Signature over Printed Name

Punong Barangay

Date
Conforme: Existence of Available Appropriations
of Thirty three thousand and twenty five only
(P33,025.00).

Signature over Printed Name Signature over Printed Name

Supplier Chairman, Committee on Appropriations

Date Date
 Purchase Order

This form shall be prepared in three

(3) copies to be distributed as follows:
Original – to the Supplier for
conforme to the
terms of the
PO and
attachment to the DV
upon request for
payment
2nd copy – BT
3rd copy – BRK
 Policies on Requisition and
Procurement

i. All deliveries shall be covered by IAR

and shall be inspected by the
Inspection Committee headed by BT
with a designated Kagawad as
member; and

j. The supplies and property inspected

shall be accepted by BT.
 Inspection and Acceptance Report

Goods ordered and delivered are

subject to inspection by the Inspection
Team to check if deliveries conform with
the specifications stated in the PO and
acceptance by the BT.
 Inspection and Acceptance Report

The BT shall prepare an Inspection

and Acceptance Report to give information
on the items received by the BT out of PO
issued and on the status of the deliveries,
either full or partial. This report shall also
be prepared for inspection and acceptance
of infrastructures and reforestation
projects.
 Simamla Virac
811-23-18 Catanduanes

Perry’s Electronics 654 06-01-001 1/10/07

06-01-001 1/6/07 1/14/07 06-01-001 1/4/07

pc Cannon BJC 210 1

set Acer Computer 1

1/16/07 1/16/07

√ √

IAN VERDE LUCY PRIMERO

 Inspection and Acceptance Report
The IAR shall be prepared in four copies
to be distributed as follows:
Original – BRK to support the DV
for the payment
2nd Copy – City/Municipal Accountant
3rd Copy – BRK
4th Copy – BT
The IAR shall form part of the
supporting documents to the claim of the
supplier for payment.
 Policies on Issuance of
Supplies and Materials

a. Issuance of supplies and materials

shall be covered by an approved
Requisition and Issue Slip (RIS);

b. For accountability purposes, the

recipient of small tangible items with
serviceable life of more than one year
shall be issued an Inventory
Custodian Slip (ICS); and
 Requisition and Issue Slip

This form shall be used to request for

goods/supplies/property needed.

The Requisitioner shall prepare the

RIS, by filling out information in the
“Requisition” portion and signing the
“Requested by" caption;
 Requisition and Issue Slip

This form shall be prepared in three

copies to be distributed as follows:
Original – BRK to support the PO
or the issuance
2nd copy – BT
3rd copy – BRK

The accomplished RIS shall be

forwarded to the BT.
 Inventory Custodian Slip

The ICS shall be prepared by the BT

for the issuance of small items with a
serviceable life of more than one year but
small enough to be considered as PPE.
 Inventory Custodian Slip

The ICS shall be prepared in three

copies to be distributed as follows:
Original – BT
2nd copy – BRK
3rd copy – Recipient or user of the
inventory
 Policies on Issuance of
Supplies and Materials

c. The recipient shall be responsible

for the upkeep of the issued small
tangible items and shall be
accountable thereto.
 Policies on Issuance of PPE

a. Issuance of property to end-user shall

be covered by Property
Acknowledgement Receipt (PAR)
which shall be renewed at least every
three years;

b. Any unserviceable PPE shall be

returned to the BT for cancellation of
the PAR
 Property Acknowledgement Receipt

The PAR shall be prepared by the

BT/BRK in three copies to be distributed as
follows:
Original – BT
2nd copy – BRK
3rd copy – Recipient/user
 Policies on Issuance of PPE

c. Outgoing barangay officials/staff shall

be cleared of money and property
accountabilities by accomplishing the
Transfer of Money and Property
Accountabilities.
 Transfer of Money and Property
Accountabilities

The TMPA shall be prepared in four

copies every time an accountable officer
ceases to be one to be distributed as
follows:
Original – Incoming Barangay
Official
2nd Copy – BRK
3rd Copy – Outgoing Barangay
Official
4th Copy – COA Representative
Policies on Physical Count of PPE

a. A physical inventory of all barangay

property shall be conducted at least
once a year and the result of the
physical inventory shall be reported in
the Report on the Physical Count of
Property, Plant and Equipment
(RPCPPE);
Report on the Physical Count of Property, Plant
and Equipment

This report shall be rendered by the

Inspection Team, headed by the PB, on its
yearly physical count of properties owned
by the barangay. This report gives
information on the physical existence and
condition of PPE, including those which are
unrecorded and those which could not be
accounted for.
Report on the Physical Count of Property, Plant
and Equipment

The RPCPPE shall be prepared by the

BRK in three copies to be distributed as
follows:
Original – City/Municipal Accountant
2nd copy – BT
3rd copy – BRK
 Policies on Physical Count of PPE

b. A Committee headed by the BT or

his authorized representative shall
conduct the physical count of PPE
owned by the barangay;

c. The RPCPPE shall be submitted to

the BRK and the City/Municipal
Accountant for reconciliation with the
recorded PPE;
 Policies on Physical Count of PPE

d. Any unrecorded PPE shall be

booked up at appraised cost, and

e. Any unaccounted PPE shall be

verified and the AO shall be held
accountable in case of loss.
 Policies on Loss of PPE

a. For property lost through force

majeure, theft, robbery, or negligence, a
Notice of Loss shall immediately be
rendered by the AO to the PB through
the BT;

b. The AO shall report the loss to the

police authorities immediately upon its
discovery;
 Policies on Loss of PPE

c. The AO shall immediately notify the

Auditor upon discovery of the loss;

d. A request for Relief from Property

Accountability shall be submitted through
the PB to the COA within the statutory
period of 30 days;
 Policies on Loss of PPE

e. Immediately upon receipt of the report

of loss, the PB shall notify the Property
Insurance Fund Division of GSIS for the
recovery of insurable value of the lost
asset;
f. The reported lost property shall be
dropped from the books and the AO shall
be held accountable, pending receipt of
COA decision on request for Relief from
Property Accountability;
 Policies on Loss of PPE

g. Accountability for lost property shall be

computed at sound value of the property;
h. Sound value is computed at
replacement cost less accumulated
depreciation based on replacement cost;
and
i. In case the request for relief is denied,
the AO shall pay the amount equivalent
to the sound value of the lost item.
 Policies on Disposal of Supplies and
Materials and PPE
a. All obsolete and unserviceable small
tangible items which could no longer be
used shall be turned over to the BT for
disposal. The corresponding ICS shall be
cancelled to relieve the user from
accountability;
b. All unserviceable PPE shall be turned
over to the BT for cancellation of
previously issued PAR and for
subsequent disposal of the items;
 Policies on Disposal of Supplies and
Materials and PPE

c. Disposal procedures shall be in

accordance with applicable rules and
regulations on supply and property
management for LGUs;
d. The Waste Materials Report (WMR) and
the IIRUP shall be prepared ; and
e. The PPE disposed of shall be dropped
from the books only upon receipt of the
report on its disposal.
 Waste Materials Report.

This report shall be prepared by the

BT/Property Officer to report all waste
materials such as destroyed spare parts
and other materials considered scrap which
are due for replacement/disposal
 Waste Materials Report
This report shall be prepared in three
copies to be distributed as follows:
Original – City/Municipal Accountant
2nd copy – BRK
3rd copy – BT/Property Officer
 Inventory and Inspection Report of
Unserviceable Property

The IIRUP shall be prepared by the BRK

in three copies to be distributed as follows:
Original – City/Municipal Accountant
2nd copy – BT
3rd copy – BRK
 Policies on Insurance of PPE

All PPE with insurable risk shall be

insured with the Property Insurance
Fund of the Government Service
Insurance System (GSIS).
 Policies on Public Infrastructures and
Reforestation Projects

a. Infrastructure projects, which are

constructed for public use, such as
roads, parks, etc, shall be classified
as Public Infrastructure Projects
while marshland or swampland shall
be classified as Reforestation
Projects;
 Policies on Public Infrastructures and
Reforestation Projects

b. The cost of the projects and the

cumulative costs of repairs and
maintenance shall be monitored using
the appropriate registries such as:
 Registry of Public Infrastructure –
Roads, Highways and Bridges
 Registry of Public Infrastructure –
Parks, Plazas and Monuments
 Registry of Reforestation Projects
 Policies on Costing of Supplies
and Materials

The cost of supplies and materials

acquired through purchase shall be
based on the invoice cost.
 Policies on Costing of PPE

The cost of property acquired shall

include the purchase cost and all
expenses incurred in bringing the asset
to its intended location and making it
operational. Such expenses include
transportation cost, insurance, arrastre,
freight charges, installation cost, etc.
 Policies on Costing of PPE

Costs of PPE include the following:

1. Land

a) Purchase price

b) Cost of clearing and demolishing

unnecessary structures

c) Cost of survey
 Policies on Costing of PPE

Costs of PPE include the following:

1. Land (continuation)
d) Fees for registration and
transfer of title

e) Taxes paid (transfer & capital

gains tax depending on the
agreement)
 Policies on Costing of PPE

Costs of PPE include the following:

2. Building – through purchase
a) Purchase price

b) Payment to tenants for vacating the

place (if part of the agreement)
c) Cost incurred in renovating the
building to put it to suitable
condition such as lighting installation,
partitions and repairs made prior to
occupancy
 Policies on Costing of PPE

Costs of PPE include the following:

3. Building – by contract
a) Contract cost

b) Cost of advertising the bidding

c) Consultancy fee as supervision cost

d) Any expenses related to the

construction
 Policies on Costing of PPE
Costs of PPE include the following:

4. Building – by administration
a) Materials, labor and overhead
expenses incurred during
construction
b) Supervision fee (consultant)
c) Excavation cost
 Policies on Costing of PPE

Costs of PPE include the following:

4. Building – by administration (continuation)

d) Cost of bunk house (used as

temporary construction office,
materials and tools storeroom)
e) Rental of service equipment
f) Building and other permits
g) Architectural fees
 Policies on Costing of PPE

Costs of PPE include the following:

5. Machinery, equipment, furniture &

fixtures
a) Purchase price
b) Insurance while in transit
c) Freight in
d) Storage, handling & any cost
related to the purchase
 Policies on Costing of PPE

Costs of PPE include the following:

5. Machinery, equipment, furniture &
fixtures (continuation)
e) Installation cost, including site
preparation & assembly
f) Testing, trial run and other
expenses necessary for the
machinery and other equipment to
function
g) Taxes and customs duties
 RECORDING

SUPPLIES & MATERIALS,

PROPERTY PLANT & EQUIPMENT

(PPE),

PUBLIC INFRASTRUCTURES
and REFORESTATION PROJECTS
 POLICIES ON RECORDING SUPPLIES & MATERIALS, PPE,
PUBLIC INFRASTRUCTURES and REFORESTATION PROJECTS

a. The recording of procurement and

issuance of Supplies and Materials,
PPE, Public Infrastructures and
Reforestation Projects is necessary for
the proper documentation of assets of
the barangay and in monitoring their
utilization/location; and
b. The disposal and loss must also be
recorded to effect the reduction in the
books.
 Policies on Recording Supplies and
Materials

a. The BT shall maintain a Supplies

Logbook to record the receipts and
issuances; and

b. The BRK shall maintain a Creditor’s

Card for the amounts due the
suppliers.
A separate sheet/page shall be maintained for each item to monitor the stock
balance.
 Policies on Recording PPE

a. Property, Plant and Equipment

Register (PPEReg) shall be used to
record the PPE owned by the barangay,
including their location;

b. Creditor’s Card (CC) shall be used to

record the amount due the suppliers/
contractors for items delivered to the
barangay on account and the payments
made;
 Policies on Recording PPE

c. Recording in the PPEReg shall be

based on the Inspection and
Acceptance Report (IAR) and the
Property Acknowledgment Receipt
(PAR).

In case more than one sheet is utilized, the totals of the first sheet shall be
forwarded to the succeeding sheet. The succeeding sheet shall start with the totals
brought forward.
 Policies on Recording Public
Infrastructures and Reforestation Projects

a. Completed and accepted public

infrastructures and reforestation
projects shall be recorded in the
Registry of Public Infrastructures
(RPI) and Registry of Reforestation
Projects (RRP), respectively;

b. The repairs and maintenance

costs shall also be recorded in the
registry.
 Policies on Recording the Disposal of
Supplies and Materials and PPE

a. Supplies and Materials and PPE for

disposal shall be reported in the Waste
Material Report (WMR) and Inventory
and Inspection Report of
Unserviceable Property (IIRUP);
b. The disposal of PPE shall be recorded
in the PPEReg maintained by the BRK
as a reduction from the asset of the
barangay based on the IIRUP
submitted by the BT.
 Policies on Recording Loss of Supplies and
Materials and PPE

a. Loss of supplies and materials shall

be recorded in the Supplies Logbook
as a reduction from the stocks; and

b. Loss of PPE shall be recorded in the

PPEReg maintained by the BRK as a
reduction from the assets of the
barangay based on the Notice of Loss
submitted by the AO to the PB thru the
BT.
 Policies on Reporting PPE

a. A physical count of all PPE shall be

conducted at least once a year by an
inventory committee headed by the PB
as chairman or his authorized
representative and BT as member;
b. Upon completion of the physical
inventory, a Report on the Physical
Count of Property, Plant and Equipment
(RPCPPE) shall be prepared by the
inventory team;
 Policies on Reporting PPE

c. The RPCPPE shall be submitted to the

BRK and the City/Municipal Accountant
for reconciliation with the recorded PPE;

d. Unserviceable items returned by

end user shall be summarized in the
Inventory and Inspection Report of
Unserviceable Property (IIRUP);
 Policies on Reporting PPE

e. The disposal team created by the

PB shall recommend the mode of
disposition; and

f. The PB shall approve the disposal.

 SUPPLIES & MATERIALS,
PROPERTY, PLANT & EQUIPMENT,
PUBLIC INFRASTRUCTURES and
REFORESTATION PROJECTS