CUSTODIANSHIP

PROPERTY CUSTODIANSHIP

• refers to the guardianship of

government property by the
person accountable.

• includes receipt of supplies,

materials and equipment,
safekeeping, issuance, and
repair and maintenance.
PROPERTY CUSTODIANSHIP

• also includes accountability,

responsibility and liability of
accountable or responsible
officers arising from loss,
misuse, damage or
deterioration of government
property due to fault or
negligence in the safekeeping
thereof.
ACCOUNTABILITY

• a person’s obligation to carry out

responsibilities and be answerable
for decisions and activities.

• holding people answerable or

accountable to someone for doing
specific things, according to specific
plans and timetables to accomplish
tangible performance results.
ACCOUNTABLE OFFICER

• any officer or employee of the

government who by reason of
his office or duties is required or
permitted to have custody of
public funds or property.
RESPONSIBILITY

• The acceptance of the assigned

authority; the obligation prudently to
exercise assigned or imputed
authority, attaching to the assigned
or imputed role of an individual or
group participating in organizational
activities or decisions.

• State of being answerable for the

discharge of a duty.
LIABILITY

• obligation that arises as a

consequence of an illegal or
improper act or the non-
performance of what one is
mandated to do.

• obligation which a person is

bound to discharge or meet
either in law or in equity.
LIABILITIES OF
ACCOUNTABLE OFFICER

• for all losses, damage or

deterioration occasioned by
negligence in the keeping or use
of the property, whether or not it
be at the time in his actual
custody.
MEASURE OF LIABILITY OF
ACCOUNTABLE OFFICER

• money value in case of improper or

unauthorized use or misapplication
of the government property by
himself or by any person for whose
acts he may be responsible.
DUE CARE

• the amount of care and

attention which an official or
employee would reasonably give
to his private property,
considering all the attending
circumstances.
Cruz Case:

On board the LRT, her handbag was slashed and its
contents stolen by an unidentified person. Among the
items taken from her were her wallet and the
government-issued cellular phone worth P4,254.00,
which is the subject of the instant case.
Placing it in a bag away from covetous eyes and
holding on to that bag, as done by petitioner, is
ordinarily sufficient care of a cellular phone while
travelling on board the LRT.
 In fighting for her rights, she must have
spent more than the value of the lost
cellular phone.
 SC said May her Tribe, multiply!
NEGLIGENCE

• failure to exercise the degree of

care demanded by the
circumstances.

• failure to take the necessary

precaution of zeal in the
performance of one’s duties.
Gutierrez Case:

Petitioner does not deny that the money

for which she was accountable as a
cashier was lost through robbery. She
also did not deny that she kept the
greater portion of the amount lost, not
in the vault, but in boxes, for practical
reasons.
This Court has made the consistent
pronouncement that the return of the
funds malversed is not a defense and
will not be an exempting
circumstance nor a ground for
extinguishing the criminal liability of
the accused. At best it can be a
mitigating circumstance
Bintudan Case:

Posting of the number combination

on the vault's door manifested her
negligence.
Indeed, the robbers did not
anymore have to employ force to
open the vault and ransack the
contents.
 Brainteaser

Is the accountable officer

relieved of liability for misuse of
the funds if he is only directed by
the Head of Office?
No accountable officer shall be relieved
form liability by reason of his having
acted upon the direction of the a
superior officer in paying out, applying ,
or disposing of the funds or property
with which he is chargeable, unless prior
to that act, he notified the superior
officer in writing of the illegality of the
payment, application or disposition.
Brainteaser

What is the liability of the officer

directing any illegal payment or
disposition of the funds or property?
How about the accountable officer who
fails to serve the required notice?
The officer directing any illegal payment
or disposition of the funds or property
shall be primarily liable for the loss, while
the accountable officer who fails to serve
the required notice shall be secondarily
liable. (Sec. 106, PD 1445)
BONDING OF ACCOUNTABLE OFFICERS
TREASURY CIRCULAR NO. 02-2009

Bond – an undertaking that is sufficiently

secured. A bondable officer is one whose
duties permit or require the custody of
funds or property for which he is
accountable.
 BONDING OF ACCOUNTABLE OFFICERS
TREASURY CIRCULAR NO. 02-2009

A public officer whose fidelity is insured in the

Fidelity Fund shall, from the moment he assumes the
duties of office, be considered bonded to the government
for the faithful performance of all duties imposed upon
him by law, and for the faithful accounting for all funds
and public property coming into his possession, custody
or control.
 BOND REQUIREMENT
appointment or designation as accountable officer

written character references by at least 3

officials of the agency, one of whom is the
Administrative or Legal Officer, other than the
official who appointed/designated him

Statement of Assets, Liabilities and Net Worth as of

the end of the preceding year

properly accomplished forms

 GUIDELINES RELATED TO BOND
1. Coverage
 Cash accountability – minimum of P5,000
 Property accountability –
Equipment:30% of total value
Supplies and Materials: 50% of total value;
Accountable Forms: 10% of total value
2. Additional bond for increased accountability
3. Bondable risks
4. Officials having direct/general supervision over the
AO shall safeguard the interest of the gov’t
5. Proper steps shall be taken to recover loss from
the accountabilities of the AO
 GUIDELINES RELATED TO BOND
6. Promptly notify the BTr of such loss
7. No bonded official shall be given clearance from
money and property accountability without proof
of bond cancellation
8. AO with money and property accountability shall
be provided with only one bond
9. Maximum cash accountability is P100M
10. Premium is 1.5% of the bond and for one full
year
11. Premium of cancelled bond is not refundable
 GUIDELINES RELATED BOND
12. Expired bond if not renewed is automatically
cancelled
13. Bond is personal and therefore not transferable
14. Bond premium constitutes the Fidelity Fund (FF)
15. FF shall answer for defalcations, shortages and
unrelieved accountability after all possible
means of recovery of the amount from the AO
has been exhausted or his/her insolvency
declared by a competent court
16. FF is available for the payment of fees and costs
incident to civil proceedings to recover the sum
lost
17. Only approved claims shall be paid from the FF
 GUIDELINES RELATED TO BOND
18. The bond shall NOT be used in the following:

 To replace fines imposed on a bonded

official/employee as a result of criminal conviction for
violation of the Revised Penal Code

 To answer for liability of a bonded official/employee

convicted of estafa through falsification of public
documents in the capacity as a private individual

 To refund the accountability of a bonded

official/employee found liable for shortage in his
accountability but was not removed or relieved of the
duties
 Transfer of Property Accountability – must be
covered by an Invoice Receipt of Property (IRP)
 from one agency to
another without cost or at
appraised value when
property is no longer
longer needed
 from one accountable
officer to another or
from an outgoing officer
to his successor; and
the former officer shall
secure clearance for
property accountability
DISPOSITION OF PROPERTY HELD BY
DECEASED, INCAPACITATED,
ABSCONDING, OR SUSPENDED AO
AH designates custodian to take charge
of the funds or properties until a
successor is appointed

AH forms a committee

 to take inventory of the cash or properties
 to determine responsibility for any shortage
 submits copy of the report to COA but
findings are not conclusive until approved by
COA
DISPOSITION OF PROPERTY HELD BY
DECEASED, INCAPACITATED,
ABSCONDING, OR SUSPENDED AO

 Secretary of Finance designates

custodian/ committee for
funds/properties of the city or
province
 Provincial Treasurer designates
custodian/ committee for
funds/properties of municipality or
barangay
 GSIS INSURANCE OF PROPERTY
Covered
Departments, Commissions, Boards, Bureaus, National
and Local Governments
Exempted
 Municipal governments below 1st class
 GOCCs and their subsidiaries/affiliates
 Acquired Assets Corp
Procedure
 Submit inventory verified by COA Auditor not
later than October 31 of the ensuing year
LOSS OF GOVERNMENT PROPERTY

Circumstances:
 Occurred while the property is in
transit;

 Caused by fire, theft or other

casualty, or force majeure
RELIEF FROM ACCOUNTABILITY
Auditor
Immediately notify the
auditor within 30 days of the
occurrence of the loss;
submit an application for
relief, supported by required
documents.

Accountable
Persons
 SUPPORTING DOCUMENTS
 Affidavit executed by Efforts put forth to recover
the AO with the ff data: lost property
Property lost and
valuation Provision/s made to
safeguard the property
Actual date when the
absence was first noted
Date when the loss was
reported to the auditor
Manner of disappearance
and the police authorities
 SUPPORTING DOCUMENTS
 Joint affidavit of 2
disinterested persons
cognizant of the facts and  Comments/
circumstances about the recommendations of
the auditor as a result
loss of his investigation of
 Final police report the causes of the loss
showing the steps taken
by the police authorities to  Certificate from the
recover the property lost police/fire chief,
governor, mayor or
 Comments/ other competent
recommendations of the authority as to the
agency head destruction
 SUPPORTING
DOCUMENTS
 Inspection report on  Copy of the PAR
the extent of damage
on the insured  Certificate by veterinarian
property
as to cause of death with
description of the animal
 Evidence of the
immediate
issuance of the
notice of loss of
accountable forms
POWER TO GRANT RELIEF IS VESTED
UPON COA
SEC. 73, PD 1445

Immediately notify the auditor Auditor

within 30 days of the
occurrence of the loss;
submit an application for relief,
supported by required
documents.
Failure to comply with the
requirement no relief from
liability shall be allowed Accountable Persons
 Storage, Warehousing and
Inventory Taking

Storage – refers to the scientific and

economical receipt, warehousing and issue of
materials for their best safekeeping and rapid
availability. To be economical, savings in space,
labor and equipment have to be effected;
damages, accidents and wasteful use should be
minimized. Best safekeeping means protecting the
materials against theft, fire and deterioration
but easily accessible when needed.
 Procedures in Warehousing
 Receipts of Materials and Equipment
and other property (DR and/or SI and
IAR
Arrangement of Materials in
accordance with the storage plan
Recording of receipts and deliveries
(IAR to the Bin cards)
 Procedures in Warehousing
Reconciliation of entries of bin cards with stock
cards/property cards and with physical count of
stocks on hand (all must be properly updated)

Care of materials
“Due care” is the amount of care and attention
which an official or employee would reasonably
give to his private property, considering all the
attending circumstances.
 Inventory-Taking
an indispensable procedure for checking the
integrity of property custodianship. The physical
stock – taking of equipment and supplies serves as
basis for preparing accounting reports. At the end
of each quarter, the Accounting and the
Supply/Property Unit should reconcile their records.
Physical inventory of equipment must be
conducted at least once a year, while supplies and
materials in stock should be inventoried at least
every six months as of June 30 and Dec 31 of each
year.
 Procedures in Inventory-Taking
Planning the inventory-taking – duly approved
written guidelines including the dates

Creation of inventory committee – composed of two

or more employees including the supply/property
officer

Actual physical inventory-taking – the name of

inventory item, code number, location, the item count
or weight or measurement is written on the Inventory
Sheet then record/post in the Inventory Summary
Sheets.
 Procedures in Inventory-Taking
Points to be considered during actual count:

Withdrawal from and addition to inventory

while the count is on-going.

All discrepancies between physical and book

inventories must be investigated and cleared
immediately.

Proper cut-off must be determined

 Procedures in Inventory-Taking
Witnessing the Inventory-Taking

The representative of the COA Auditor shall

witness the physical inventory-taking
conducted by the inventory committee. He
should observe the actual process in order to
assure himself of the fairness of the
presentation of the financial statements.
 Procedures in Inventory-Taking
Reconciliation of Property and
Accounting Records

 The inventory committee shall

reconcile the results of the count with the
property and accounting records
 RECORDS/REPORTS TO BE
MAINTAINED/PREPARED

1. Bin Card

 for each kind/class of item by the

warehouseman/storekeeper
 reconciled with the stock/property card
maintained by the supply officer/stock
clerk
 RECORDS/REPORTS TO BE
MAINTAINED/PREPARED
2. Stock Card

 for each class of article

 by the supply officer/stock clerk
 reconciled with the Supplies Ledger
Card maintained by the Accounting
Office
 Appendix

STOCK CARD
_______________________________________________
Barangay
Item: Description: Stock No.:
Re-order Point:
Receipt Issuance Balance No. of Days to
Date Reference Qty. Qty. Office Qty. Consume

For Property Office Use

 RECORDS/REPORTS TO BE
MAINTAINED/PREPARED
3. Property/Equipment Card

 for each class of equipment/property

 by the supply/property officer
 reconciled with the Property/Equipment
Ledger Card maintained by the
Accounting Office
 Appendix

PROPERTY CARD
_______________________________________________
Agency

Property, Plant and Equipment: Property Number:

Description:

Receipt Transfers/Disposal/Issuance Balance

Date Reference Qty. Qty. AccountableOfficer Office Qty.

For Property Unit Use

 RECORDS/REPORTS TO BE
MAINTAINED/PREPARED

4. Livestock card

 for each large cattle and small animals

 by the livestock custodian
 reconciled with the Livestock Ledger
Card maintained by the Accounting
Office
 RECORDS/REPORTS TO BE
MAINTAINED/PREPARED

5. Report of Supplies and Materials

Issued (RSMI)

 for all supplies and materials

issued
 by the supply/property officer
 Appendix

REPORT OF SUPPLIES AND MATERIALS ISSUED

Agency
Date: RSMI No. :

To be filled up in the Supply and Property Unit To be filled up in the Accounting Unit

RIS No. Responsibility Stock No. Item Unit Qty. Issued Unit Cost Amount
Center Code

Recapitulation: Recapitulation:

Stock No. Quantity Unit Cost Total Cost Account Code

Certified: Certified: Posted by/date:

Correctness of the above information Correctness of costing and charges

Supply Officer Accounting Unit Accounting Clerk

 RECORDS/REPORTS TO BE
MAINTAINED/PREPARED
6. Report on the Physical Count of
Inventories (RPCI)

 for all supplies and materials/inventories

 by the Inventory Committee
 approved by the Head of the Agency
 submitted to the Auditor not later than
July 31 and January 31 of each year
 RECORDS/REPORTS TO BE
MAINTAINED/PREPARED

7. Report on the Physical Count of Property,

Plant and Equipment (RPCPPE)

 for all property, plant and equipment by

type
 by the Inventory Committee
 approved by the Agency Head
 submitted to the Auditor not later than
January 31 of each year
 REPORT ON THE PHYSICAL COUNT OF PROPERTY PLANT AND EQUIPMENT
(Type of Property, Plant and Equipment)
As of ________________________________
For which ____________________________, ___________________, ____________________________________________ is accountable, having assumed such accountability on _____________.
(Name of Accountable Officer) (Official Designation) (Agency/Office) (Date of Assumption)

BALANCE PER ON HAND SHORTAGE/

ARTICLE DESCRIPTION PROPERTY UNIT OF CARD PER COUNT OVERAGE REMAKS
NUMBER MEASURE (Quantity) (Quantity) Quantity

PREPARED AND CERTIFIED CORRECT BY: APPROVED BY:

Name and signature of Head Inventory Committee Name and signature of Head of Agency

Date Date
 Reports to be prepared for PPE

 Inventory and Inspection Report on

Unserviceable Property (IIRUP)
 used to report PPE that becomes
worthless or unserviceable
 as a basis for disposal
 used as basis for dropping the
accounts affected by means of journal
entry voucher.
 INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY
As of _________________________________
________________________________ ______________________________ ________________________ ___________________________
(Agency) (Name of Accountable Officer) (Designation) (Station)
IN VEN TO RY IN S P EC TIO N REPO RT
DISPOSITION AppraisalOfficial
Acticles Quantity Unit Cost Total Cost Property No. Date No. of years Accumulated Receipt Amount
Acquired in service Depreciation Number
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)

I HEREBY request inspection, and disposition I CERTIFY that I have

pursuant to Section 79 of PD 1445, of the property inspected each and every article I CERTIFY that I have
enumerated above. enumerated in this report and that witnessed the disposition of
the disposition made thereof was, the articles enumerated on
in my judgement, the best for the
Requested by: Request for Inspection Approved by:

________________________________ _____________________________
(Signature of Accountable Officer) (Name and Signature) ________________________________________
______________________________________
(Name and Signature of Inspector) (Name and Signature of Witness)
________________________________ _____________________________
(Designation of Accountable Officer) (Designation)
NEED FOR EFFECTIVE REPAIR
AND MAINTENANCE PROGRAM

 for the purpose of attaining and/or

extending the established standard
economical and useful life of an
equipment/property and serves as
a sound basis for scheduling its
replacement.
 MAINTENANCE

the routine and periodic

upkeeping function of
preserving the productive ability
or capacity of the property,
plant and equipment.
 MAINTENANCE
the routine and periodic
upkeeping function of
preserving the productive
ability or capacity of the
property, plant and equipment.
Any Questions?