3Repuhlic of tbe .

tabilippine
COMMISSION ON AUDIT
Qrominonllle11ltb l&benue, <laueJon Qritp, ,t01Jilippine

CIRCULAR NO :)1;V> - OO(p

DATE: JAN J 1 2020

TO All Heads of Departments, Agencies, Bureaus, Commissions, Boards and

Offices of the National Government; State Universities and Colleges; Local
Government Units; Heads of Government-Owned or Controlled
Corporations; Commission on Audit Directors, Supervising Auditors and
Audit Team Leaders of the National and Local Government Sectors; and
All Others Concerned

SUBJECT: Guidelines and Procedures in the Conduct of Physical Count of Property,

Plant and Equipment (PPE), Recognition of PPE Items Found at Station,
and Disposition for Non-existing/Missing PPE Items, for the One-Time
Cleansing of PPE Account Balances of Government Agencies

1.0 RATIONALE

Property, Plant and Equipment (PPE) generally constitute a significant

portion of the total assets of the government, usually comprising more than fifty
percent thereof.

The existence of enormous amounts of discrepancies in PPE account

balances of government agencies has become a perennial issue and caused the non-
establishment of the accuracy of the PPE balances presented in the financial
statements. Such condition, if not properly addressed would always cause an
exception in the fairness o( presentation of the financial position of government
agencies and will deprive the government of reliable and useful information in
decision-making and accountability for these assets.

Thus, there is a need to provide guidelines and procedures to assist

government agencies in coming up with reliable PPE balances that are verifiable
as to existence, condition and accountability.

2.0 COVERAGE

This Circular shall cover National Government Agencies, Local Government

Units, and Government-Owned or Controlled Corporations.

3.0 PURPOSE

This Circular prescribes the guidelines and procedures on inventory taking,

recognition of those found at station and disposition for non-existing/missing PPE
items for_-time cleansing of PPE accounts of government agencies to

II- '
 establish PPE balances that are verifiable as to existence, condition and
accountability.

4.0 ACCOUNTING STANDARDS ON PPE

4.1 PPE are tangible items that are:

a. purchased, constructed, developed or otherwise acquired;

b. held for use in the production or supply of goods or services or to
produce program outputs;
c. for rental to others (other than investment property);
d. for administrative purposes;
e. expected to be used during more than one reporting period; and
f. not intended for resale in the ordinary course of operations.

4.2 The cost of an item of PPE shall be recognized as asset if, and only if:

a. it is probable that the future economic benefits or service potential

associated with the item will flow to the entity;
b. the cost or fair value of the item can be measured reliably;
c. beneficial ownership and control clearly rest with the government;
d. the asset is used to achieve government objectives; and
e. it meets the capitalization threshold of Pl5,000.

4.3 The carrying amount of an item of PPE shall be derecognized on disposal or

when no future economic benefits or service potential is expected from its
use or disposal.

5.0 GENERAL GUIDELINES

5.1 Each government agency shall conduct physical count of all its PPE, whether
acquired through p4rchase or donation, including those constructed by
administration and found at station.

5.2 The Head of the Agency shall create an Inventory Committee composed
of adequate number of members to be able to complete the physical
inventory in three months or less. The Inventory Committee shall have at
least one member each from the Accounting and Property Divisions/Units
of the agency.

5.3 The members of the Inventory Committee shall be temporarily relieved of

all their regular duties to devote their full time in the conduct of the physical
inventory taking until the same is completed.

5.4 The entire inventory taking shall be witnessed by the Commission on Audit

.«
(COA)
membersAuditor.
may beThe Auditfor
assigned Team
the Leader
purpose.and/or any of his/her audit team
C
5.5 The H ad of the Agency may also require a representative from the agency's
Audit Service/Unit to witnessthe inventory taking.

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5.6 Each government agency shall adopt a uniform property identification
system for PPE wherein a unique Property Number shall be assigned for each
PPE item, using the following numbering system:

I 0000 - 00 - 00 - 0000 - 00 I
Year Purchased◄---------------- '!
PPE sub-major account group .,. .,

General Ledger account◄---------

Serial number (one series per PPE category/type/Location)+

Location/Office◄ '

T hceo d e s for the PPE sub-major account group and General Ledger
account correspond to those provided in the Revised Chart of Accounts
prescribed under the Accounting Manuals of the respective Sectors (National,
Local and Corporate).

Additional digits may be used for serial number and location/office, as

necessary.

5.7 For easy identification, the Property Number shall be prominently shown in
the property sticker, in addition to the following vital information on the PPE
item:

a. Description of the property

b. Model Number
c. Serial Number
d. Acquisition Date/Cost
e. Person Accountable
f. Space for the validation/signature of the fnventory Committee

5.8 The Inventory Committee shall be responsible for the actual count to
ascertain the existence, completeness and condition of all PPEs owned by
the government agency.

5.9 fn coordination with the Property Division/Unit, the Inventory Committee

shall plan/strategize on how to conduct and complete the physical
inventory within the prescribed period. It shall prepare a Physical
Inventory Plan (PIP) containing, at the least, the specific
assignments/duties of the Committee members, the cut-off date and a
schedule specifying the dates and locations of the inventory taking
activities from start up to the targeted completion of the physical
inventory.

5.10 The PIP shall be approved by the Head of the Agency.

5.11 The Inventory Committee shall submit the approved PTP to the COA

h
Audit Team at least ten (10) calendar days before the scheduled start of
inventory
. ·«•ctivities.
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 5.12 Property records shall be updated based on the results of the physical
inventory and reconciled with accounting records to come up with the
reconciled balances of PPE accounts to be considered as the correct
balance of the agency's PPEs.

6.0 PROCEDURAL GUIDELINES

6.I Preliminary activities prior to the conduct of inventory taking

6.1.1 The Property Unit shall obtain the latest Report on Physical Count
of PPE (RPCPPE)/Physical Inventory Report.

ln the absence of the latest RPCPPE/Physical Inventory Report or if

the same is determine to be undependable/unreliable, a standard form
(Annex A) on the list of existing PPE shall be filled up by each office
and submitted to the Property Unit for verification prior to the
conduct of the actual inventory by the Inventory Committee.

6.1.2 The Accounting Unit shall update its record of

acquisition/disposal/transfer of PPEs in the PPE Ledger Cards
(PPELCs) and ensure that the total balance of PPELCs tally with the
balances of controlling PPE accounts in the General Ledger.

6.1.3 The Property and Accounting Units shall compare the latest Report
on the RPCPPE/Inventory Repo1t with the PPELCs.

6.1.4 The Property Unit shall prepare a list of PPE items which are
recorded in the PPELCs but not included in the RPCPPE/Physical
Inventory Report as well as PPE items which are included in the
RPCPPE but not recorded in the PPELCs.
.
6.1.5 Both lists and the latest RPCPPE/Physical Inventory Report shall be
submitted to the Inventory Committee. These documents shall be
considered as inventory working papers and shall be used by the
Inventory Committee as basis in preparing the PIP.

6.2 Inventory taking

"6.2.l The Head of the Inventory Committee shall ensure that the
inventory taking activities are executed in accordance with the
approved PIP. In case there are planned activities/procedures that
cannot be efficiently performed, he/she shall keep record of the
alternative activities/procedures undertaken and the reasons for the
deviation from the PIP..

6.2.2 TheInventory Committee shall use the inventory working papers

provided by the Property Unit as basis for inventory taking
activities, taking into consideration the capitalization threshold of
Pl 5,000.

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 6.2.3 The physical count shall be recorded/documented daily in a standard
Inventory Count Form (ICF), using the format in Annex A of this
Circular, which shall be used as the basis in the preparation of the
RPCPPE after the physical count.

6.2.4 Separate ICF shall be used for each PPE sub-major account group
such as Land, Land Improvements, Infrastructure Assets, Buildings
and Other Structures, Machinery and Equipment, Transportation
Equipment, Furniture, Fixtures and Books, etc. For ease of
reconciliation, the Inventory Count Form for each PPE
category/type shall be subdivided by PPE General Ledger account,
e.g., Machinery and Equipment may be subdivided into Machinery,
Office Equipment, Information and Communications Technology
Equipment, etc. The description of accounts provided in the Chart
of Accounts prescribed under the Accounting Manuals of the
respective Sectors, shall be used as basis in determining the proper
classification of a PPE item.

6.2.5 All PPE items counted shall be tagged with new property stickers
containing the information provided under Paragraph 5.7 of this
Circular.

6.2.6 The Inventory Committee shall state clearly in the ICF the condition
of the PPEs, such as: in good condition, needing repair,
unserviceable, obsolete, no longer needed, not used since purchase,
etc.

6.2.7 PPEs found at station or items not included in the inventory working
papers, but there is reasonable basis to consider the same as owned
by the agency, shall likewise be included in the physical count and
tagged with property stickers. These items shall be described as
"found at sta.tion" which shall be indicated under the "Remarks"
column of the ICF.

6.2.8 PPEs included in the inventory working papers but are not found
during the physical count shall be considered as non-existing/missing
I. PPEs per physical count. These items shall be described as "non-
existing" or "missing" which shall be indicated under the "Remarks"
column of the ICF.

6.2.9 Other relevant information on each PPE item shall also be stated
under the "Remarks" column of the lCF.

6.2.10 Upon completion of the physical count, the Inventory Committee

shall prepare the RPCPPE, using the prescribed format under the
Accounting Manuals of the respective Sectors.

6.2.11 The unit value of articles/items counted shall be taken from

PPELCs/Subsidia y L dgers (SLs) or, if not available, from
Property Cards or other proper records.

. - A \
\
 6.2.12 In case no such information could be found in both accounting and
property records such as for PPE items found at station, the unit
cost/value shall be established, as follows:

a. Cost/value may be assigned by the Inventory Committee based

on the market/fair value of the item. The cost/value of a similar
item in the RPCPPE may also be used by the Inventory
Committee.

The market/fair value is the estimated amount for which an

asset could be exchanged on the date of valuation, between
knowledgeable, willing parties in an arm's length transaction;
and

b. If there are items for which market/fair value could not be easily
determined by the Inventory Committee, their fair value shall be
determined by appraisal.

An appraisal of the value of an asset is normally undertaken by a

member of the valuation profession who holds a recognized and
relevant professional qualification. For many assets, the fair
value will be readily ascertainable by reference to quoted prices
in an active and liquid market. For example, current market
prices can be obtained for land, non-specialized buildings, motor
vehicles, and many types of plant and equipment.

If no evidence is available to determine the market value in an

active and liquid market of an item of property, the fair value of
the item may be established by reference to other items with
similar characteristics, in similar circumstances and location. In
the case of specialized buildings and other man-made
structures, fair value, may be estimated using depreciated
replacement cost, or the restoration cost or service unit
approaches. In many cases, the depreciated replacement cost of
an asset can be established by reference to the buying price of a
similar asset with similar remaining service potential in an
active and liquid market. In some cases, an asset's reproduction
cost will be the best indicator of its replacement cost.

6.2.13 The RPCPPE shall be prepared in four (4) copies to be distributed

as follows:

Original - COAAuditor
Copy2 - Accounting Division/Unit
Copy 3 - Property Division/Unit
Copy4 - Inventory Committee

'(I}Reconciliationof inventory count per RPCPPE with property and

' :ccounting records
 The Property and Accounting Units shall undertake collaborative
procedures to ensure that all PPEs included in the RPCPPE are duly recorded
in their respective records and that the Property Cards (PCs) maintained by
the Property Unit and the PPELCs maintained by the Accounting Unit are
reconciled. The reconciliation shall be completed within ten (10) days from
rendition of the RPCPPE by the Inventory Committee. The following
procedures shall be observed:

6.3.1 The Property Unit shall:

a. Ensure that the PCs are updated by posting all unrecorded

acquisition/receipt, issue/transfer and disposal of PPE, if any;

b. Prepare a List of PPEs Found at Station for those items described

as "found at station" in the RPCPPE, using the format in Annex
B of this Circular, and submit to the Accounting Unit for
recording in the books of accounts;

c. Prepare PCs for items of PPEs found at station;

d. Prepare a List of Non-Existing/Missing PPEs for items described

as "non-existing" or "missing" in the RPCPPE as well as for
those with PCs and Property Acknowledgement Receipts (PARs)
on file but not included in the RPCPPE, following the format in
Annex C of this Circular;

e. Follow the procedures for the disposition of non-existing/missing

PPEs provided under Paragraph 7 of this Circular;

f. Work together with the Accounting Unit to reconcile the PCs

with the PELCs maintained by the Accounting Unit;

g. Renew all PARs; and

h. Prepare Inventory and Inspection Report of Unserviceable

Property (IIRUP) using the format prescribed under the
Accounting Manuals of the respective Sectors for all PPEs found
unserviceable, obsolete and/or no longer needed.

6.3.2 The Accounting Unit shall:

a. Take up the necessary accounting entries to recognize PPEs

found at station and prepare/maintain corresponding PPELCs
based on the List of PPEs Found at Station;

Take up the necessary accounting entries to recognize loss of PPE

and to set up the corresponding receivables from the concerned
accountable officer/personnel, pursuant to Paragraphs 7.8 and 7.9
of this Circular;

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 c. Work together with the Property Unit in reconciling the
PPELCs/SLs with the PCs maintained by the Property Unit;

d. Update the PPELCs as necessary in the course of reconciliation;

e. Take up the necessary accounting entries to write-off/drop from

the books of accounts the remaining balances as of December 31,
of amounts lumped under the "Unreconciled SL",
"Reconciling SL" for PPEs, and the like, which were created to
facilitate the conversion of accounts from the Old Government
Accounting System to the New Government Accounting
System (NGAS) and/or from the manual accounting system
to the Electronic New Government Accounting System
(eNGAS); and

f. Ensure that the total balance of PPELCs/SLs tally with the

balances of controlling PPE accounts in the General Ledger.

After completing the above reconciliation procedures, the total of the

reconciled balances for each PPE account shall be established as the
correct balance of PPE of the government agency as of December 31,
.

7.0 DISPOSITION PROCEDURES FOR NON-EXISTING/MISSING PPEs

7.1 For the non-existing/missing PPEs, the Property Unit shall:

a. Verify if the PPE items were already disposed with supporting

IIRUP or transferred/donated to other government agencies
with supporting Property Transfer Report (PTR); and

b. Submit to the Accounting Unit the original copies of the URUP

and PTRs.for disposed and transferred PPE items, for recording
in the books of accounts.

7.2 The Accounting Unit shall take up the necessary accounting entries to
derecognize disposed or transferred PPEs based on original copies of the
IIRUP and PTR.

7.3 The Head of the Property Unit shall be responsible in determining the
person/s accountable for non-existing/missing PPEs not otherwise
disposed or transferred. The accountability shall be verified from the
Property Unit's file/copy of the PARs, PCs and other available property
records.

7.4 If there is a pending Request for Relief for any of the non-existing/missing
PPEs, such fact shall be indicated under the "Remarks" column of the list.

7.5 The Property Unit shall inform the Head of the Agency of the non-
existing/missing PPEs without pending Request for Relief and shall
prepare
·lJ\ k,tters addressed to each concerned accountable officer/personnel
\tlemanding the production of the PPE he/she is accountable for. The
1
8

L
 accountable officer/personnel shall be given five (5) calendar days to
respond to the demand letter.

7.6 The demand letters shall be signed by the Head of the Agency or
designated representative and immediately issued by the Property Unit to
the concerned accountable officers/personnel.

7.7 If the accountable officer/personnel was able to produce the PPE item
demanded from him/her, the Property Unit shall indicate under the
"Remarks" column of the List of Non-Existing PPEs that the item was
"produced/presented upon demand" and, subsequently, inform the
Inventory Committee of such changes in order to amend the RPCPPE.

7.8 If the accountable officer/personnel was not able to produce the PPE item,
such fact shall be indicated under the "Remarks" column of the List
ofNon- Existing PPEs.

7.9 After gathering all the necessary information by performing the preceding
procedures, the Property Unit shall submit to the Accounting Unit the List of
Non-Existing/Missing PPEs, with complete information on which PPEs
could not be produced upon demand and those which have pending Requests
for Relief, as well as the corresponding accountable officers/personnel.

7.10 The Accounting Unit shall take up the necessary accounting entries to
recognize in the books of accounts the loss of PPE and to set up the
corresponding receivables from concerned accountable officers/personnel
for the non-existing/missing PPEs that could not be produced upon demand.
It shall likewise check if appropriate accounting entries were already taken
up recognizing the loss of PPE and setting up of accountability for those with
pending Requests for Relief; otherwise, it shall effect the necessary
accounting entries.
.
The amount to be set up as receivables over the loss of depreciable assets
shall be based on depreciated replacement cost, which is replacement cost
(current market price) less accumulated depreciation calculated on the basis
of replacement cost.

7.11 Ifthere arenon-existing/missing PPEs for which accountability could not be

established despite exhaustion of all diligent efforts, the following
procedures shall be followed:

a. The Head of the Agency shall cause the conduct of an investigation to

determine the last known location/office where the missing PPE items
were issued/installed, person accountable, circumstances of the loss, and
the persons responsible for the loss, among others;

b If accountability/responsibility over the missing PPE was pinpointed

after investigation, demand shall be made from the accountable
personnel to produce the item or pay the depreciated replacement cost
thereof;

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 c. The Accounting Unit shall be furnished the certified copy of the
investigation report and demand letter to be used as basis to recognize
loss of PPE and to set up the corresponding receivables from the
concerned accountable officer/personnel; and

d. If accountability/responsibility over the missing PPE could not be

pinpointed after investigation, authority for derecognition thereof from
the books of accounts may be requested from the COA, in accordance
with Paragraph 8 of this Circular. Pending the grant of authority by the
COA, the said PPEs shall remain in the books of accounts.

8.0 PROCEDURES IN THE DERECOGNITION OF NON-EXISTING/MISSING

PPEs WITHOUT AVAILABLE RECORD OF ACCOUNTABILITY

8.1 Non-existing/missing PPEs without available record of accountability shall

be derecognized from the books of accounts only upon the grant of specific
authority by the COA.

8.2 The Head of the Agency shall file the request for authority to derecognize
non-existing/missing PPEs to the COA Audit Team Leader (ATL) and/or
Supervising Auditor (SA), if the following conditions are met:

a. The PPE has already exceeded its estimated useful life, hence, its
carrying value is equivalent to its residual value.

The estimated useful life of PPEs shall refer to the estimation made by
the government agency on its PPEs, if any, as disclosed in its Notes to
Financial Statements for the immediately preceding year, otherwise, to
use the Estimated Useful Life of PPE by classification provided under
COA Circular No. 2003-007 dated December 11, 2003; and
.
b. Accountability/responsibility over the missing PPE could not be
pinpointed after the conduct of investigation for the purpose.

8.3 The request shall be supported with the following documents:

a. List of Non-Existing/Missing PPEs and their carrying values certified by

the Heads of the Property Unit and the Accounting Unit and approved by
the Head of the Agency;

b. Certification by the Head of the Accounting Unit that the non-

existing/missing PPEs had already exceeded their estimated useful
lives; and

c. Certified copy of the report of investigation conducted pursuant to

• )Paragraph 7.9 of this Circular.

8.J \ipon receipt of the request, the ATL and the SA shall assign a reference
number, verify and validate the submitted documents and decide on the
 requests for authority to derecognize non-existing PPEs for amounts not
exceeding Pl 00,000.00 per PPE item within fifteen (15) working days from
receipt thereof.

8.5 In case the basis for denial of the request by the ATL and the SA is failure
to comply with the conditions and requirements under Paragraphs 8.1 and
8.2, the Head of the Agency may refile the request for derecognition before
the ATL and the SA provided that the basis for denial has been
satisfactorily complied. The ATL and the SA shall decide on the request
within fifteen
(15) working days from receipt thereof.

8.6 The Head of the Agency may appeal from the decision of the ATL and the
SA to the COA Cluster Director (CD)/Regional Director (RD) who has
jurisdiction over the government agency under audit within fifteen (15)
working days from receipt of the decision. The CD/RD shall decide on the
appeal within fifteen (15) working days from receipt thereof. The decision
of the CD/RD on the appealed request is final and non-appealable.

8.7 For amounts exceeding Pl 00,000.00 per PPE item, the ATL and the SA
shall forward the request and the entire records to the CD/RD, together
with their comments and recommendations, within fifteen (15) working
days from receipt thereof.

8.8 The CD/RD shall review the entire records of the requests and shall decide
on amounts involving more than Pl 00,000.00 but not exceeding
Pl,000,000.00 per PPE item within fifteen (15) working days from receipt
thereof.

8.9 In case the basis for denial of the request for derecognition by the CD/RD is
failure to comply with the conditions and requirements under Paragraphs 8.1
and 8.2, the Head of the Agency may refile the request for derecognition
before the CD/RD p(ovided that the basis for denial has been satisfactorily
complied. The CD/RD shall decide on the request within fifteen (15)
working days from receipt thereof.

8.10 The Head of the Agency may appeal from the decision of the CD/RD to
the Assistant Commissioner (AC) of the Sector within fifteen (15) working
days from receipt of the decision. The AC shall decide on the appeal
within fifteen
(15) working days from receipt thereof. The decision of the AC on the
appealed request is final and non-appealable.

8.11 For amounts exceeding Pl ,000,000.00 per PPE item, the CD/RD shall
forward the request and the entire records together with his/her
recommendation to the AC of the Sector within fifteen (15) working days
from receipt thereof.

The AC of the Sector shall review the entire records of the requests and shall
decide on amounts exceeding Pl,000,000.00 per PPE item within fifteen (15)
working days from receipt thereof.

1I
 8.13 In case the basis for denial of the request for derecognition by the AC of
the Sector is failure to comply with the conditions and requirements under
Paragraphs 8.1 and 8.2, the Head of the Agency may refile the request for
derecognition before the AC provided that the basis for denial has been
satisfactorily complied. The AC shall decide on the request within fifteen
(15) working days from receipt thereof.

8.14 The Head of the Agency may appeal from the decision of the AC of the
Sector to the Commission Proper (CP) within fifteen (15) working days
from receipt of the decision. Filing fee is required at the rate prescribed
under the 2009 Revised Rules of Procedures of the COA. The decision of
the CP is final and non-appealable.

8.15 The Accountant shall:

a. Prepare a Journal Entry Voucher within fifteen (15) working days upon
receipt of the decision granting the authority to derecognize PPEs, for
approval of the Head of the Agency, effect the necessary accounting
entries in the books of accounts, and enter the acquisition cost of the
derecognized PPEs and their carrying values in the Registry of
Derecognized PPEs (RDPPE), using the format in Annex D of this
Circular;

b. Submit the JEV to the COA ATL, supported with the certified copies
of the approved request for derecognition including the
records/documents pertaining thereto;

c. Keep as permanent file, the RDPPE as well as the copy of the

approved request for derecognition including the records/documents
pertaining thereto; and

d. Provide appropri te disclosure on the derecognized PPEs in the Notes

to the Financial Statements.

9.0 ACCOUNTING ENTRIES AND DISCLOSURE IN THE NOTES TO THE

FINANCIAL STATEMENTS

9.1 The illustrative accounting entries for the recognition of PPEs found at
station, recognition of loss of PPEs, writing-off/dropping from the books
of accounts the remaining balances amounts lumped under the
unreconciled SLs of PPEs, and derecognition of non-existing/missing
PPEs are shown in Annex E.

9.2 Disclosures on PPE in the Notes to the Financial Statements shall include
information on:

The total amount of non-existing/missing PPEs included in the PPE

balance, supported with breakdown as to sub-major PPE account
group, together with the following additional information, as
applicable:

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 1. A request for authority for derecognition has been filed and still
pending with the COA stating the date of filing thereof, or, still
to be filed; and/or

11. The amount and breakdown of derecognized PPEs which were

transferred to the RDPPE based on the authority of
derecognition granted by COA; and

b. PPEs found at station which are still needing appraisal, supported

with breakdown as to sub-major PPE account group.

10.0 SUNSET PROVISIONS

After the cut-off date set by the Inventory Committee in the PfP, the
Accounting and Property Units of government agencies shall ensure that the
proper accounting and reporting procedures for all
acquisition/receipt/issue/transfer/disposal of PPEs pursuant to the Accounting
Manuals of respective Sectors, and other relevant laws, rules and regulations are
strictly followed. This Circular is issued for one-time cleansing of PPE account
balances; thus, in no case shall the herein procedures be used to further
derecognize non-existing/missing PPEs and/or cleanse subsequent discrepancies or
unreconciled balances in PPE accounts.

11.0 EFFECTIVITY

This Circular shall take effect immediately.

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 Annex A

Agency Name
Inventory Count
Form

PPE Account Group: Sheet No. of

Old
New Property No.
Property Quantity per Quantity per Location/
Article/Item Oesaiption assigned (To be Unit of Mea.ure Unit Value Condition Remarks
No. Property card Physical Count Whereabouts
filled up during
assigned
validation)

Note: For PPE items without Property No., provide in the "Remarks" column other Information such asSerial No,/Model No,/ brief description that can be useful during the reconciliationprocess

Prepared by: Reviewed by:

Printed Name and Signature

Printed Name and Signature
Concerned Inventory Committee Member
Chairman, InventoryCommittee

Date:
 Annex B

Agency Name
List of PPEs Found at Station

PPE Account Group:

New
Property Person
Article/Item Description Unit Cost/Value Total Cost/Value Remarks
No. Accountable
assigned

Prepared by: Reviewed by:

Printed Name and Signature

Property Personnel

Date:
 Annex C

Agency Name
List of Non-Existing/Missing PPEs

PPE Account Group:

Old
Person
Article/Item Description Property Unit Cost/Value Total Cost/Value Remarks
Accountable
No.

Prepared by: Reviewed by:

Printed Name and Signature

Printed Name and Signature
Property Personnel
Head; u,;,
Date:
 Annex D

Agency Name
Registry of Derecognized PP Es (RDPPE)

Reference
PPE Account Authority
Date No. Description of PPE Cost Accumulated Depreciation Accumulated Impairment Losses Carrying Value File Index
(indkate date of grant)
 Annex E

Illustrative Accounting Entries:

1. Recognition of PPEs found at station:

Account Title Credit
Technical and Scientific Equipment XXX
Accumulated Surplus/Deficit XXX
To recognize technical equipment found at station.

2. Recognition of loss of PPE and setting up accountability of accountable officer

Account Title Debit Credit
Loss of Assets xxx
Accumulated Depreciation - Office Equipment XXX
Accumulated lmpairment Losses - Office Equipment XXX
Office Equipment XXX
To recognize loss of office equipment.

Due from Officers and Employees XXX

Other Deferred Credits XXX
To set up accountability of accountable officer
for lost office equipment.

3. Writing-Off/Dropping of remaining balances of unreconciled SL for PPEs

Account Title Debit Credit
Accumulated Surplus/Deficit xxx
Office Equipment
XXX
To write-off remaining balanc'e of unreconciled
SL for Office Equipment

4. Derecognition of non-existing/missing PPEs with authority from COA

Loss of Assets XXX
Accumulated Depreciation - Office Equipment XXX
Accumulated Impairment Losses - Office Equipment XXX
Accumulated Depreciation - Medical Equipment XXX
Accumulated Impairment Losses - Medical Equipment XXX
Office Equipment XXX
Medical Equipment XXX
To derecognize office equipment and medical
equipment with authority from COA.