August 22, 1994
GENERAL MEMORANDUM CIRCULAR NO. 04-94
SUBJECT : Implementation of DAR's New
Policy Guidelines on Memorandum
Receipt and Property Custodianship
System
In the interest of the effective and efficient administrative service, and in order to improve the Department's Memorandum Receipt and Property Custodianship Systems, the following policy guidelines are hereby prescribed for the implementation of the system: TIHCcA
I. On the Contents of the Memorandum Receipt (MR):
A. The cost, property number and life expectancy (to be determined by Accounting Division ) of the property should be reflected on the MR so that if such property becomes unserviceable, no longer needed or is rendered valueless, the end user can apply for the cancellation of his/her MR after he/she had surrendered the item to clear himself/herself of such accountability (ies). The aforementioned information can be derived from the Equipment Ledger Card. The GSD should use the Revised January 1992 Equipment Ledger Card (see attached sample) and should fill this up properly to provide sufficient information i. e. estimated useful life, transfer and return transaction, etc.
B. The Supply Officer should check the MR to ensure that only one (1) item of each kind is issued to the end user.
C. The following salary grade range vis-a-vis the allowable total cost of the properties that will be issued to the end user should be followed:
Grades 1 — 6 = P50,000.00
Grades 7 — 10 = 60,000.00
Grades 11 — 13 = 65,000.00
Grades 14 — 16 = 75,000.00
Grades 17 — 19 = 90,000.00
Grades 20 — 22 = 110,000.00
Grades 24 and above NO LIMIT
This will limit the accountability of end users to the allowable total cost as large amounts will became a burden to the end user in case such properties are lost.
II. On the manner of MR Issuance:
A. For equipment
1. MRs on properties assigned to contractual or temporary employees of DAR and personnel of other agencies (COA, FAST Janitorial Services, etc.) whose services are only temporary and whose separation from the service does not require clearance) should be received and signed by the Chief or Head of Office where they are assigned in their behalf.
2. Renewal of MRs every three year should be followed by GSD in compliance with Government Accounting and Auditing Manual (GAAM) Section 444, Volume II. This procedure will assist GSD in updating their records and check the existence of the properties which belong to an end user.
3. In the case of MRs of properties which were already returned or transferred to another, GAAM Section 495 of Volume I provides that "upon receipt of the returned equipment, the property clerk shall surrender to the concerned office or employee the corresponding original of the MR. In turn, the employee should file his/her copy of the MR furnished by GSD taking note of the properties which were returned/transferred; MR should bear notation by the GSD that such properties had been cancelled from the MR. This is for reconciliation purposes in the future in case the employee's record would not tally with that of GSD's.
4. The property officer shall file the MRs alphabetically according to the surname of the end users for easy retrieval and ready reference.
B. For vehicles:
1. Before releasing a vehicle to the new end user, the Motorpool Section should request said user to submit a duly accomplished MR. Upon submission of the new MR, the Property Section should subsequently cancel the MR of the previous user. Those vehicles for general dispatch should be issued to the Head of the General Services Division.
This is in cases where officials actually using the vehicles were not issued the corresponding MRs and likewise with vehicles for general dispatch.
III. On Accountability and Responsibility
A. Of the end user:
1. In case of loss of properties, GAAM Section 498 of Volume I provides that when a loss of government property occurs while they are in transit or the loss is caused by fire, theft, or other casualty or force majeure, the officer accountable therefor or having custody thereof shall immediately notify the Commission or the Auditor concerned and, within thirty days or such longer period as the Commission of Auditor say, in particular case allow, shall present his application for relief, with the evidence, credit for the loss shall be allowed. An officer who fails to comply with this requirement, shall not be relieved of liability or allowed credit for any loss in the settlement of his/her accounts. (Use the Property/Equipment Loss and Damage Report Form)
2. In case of transfer of any official or employee from one office to another within DAR, responsibility over such properties which he/she does not bring along with him/her should be turned over to the Division Chief or Head of Office of the former office.
3. In case of leave of absence for a month or more, the employee concerned should submit a duly approved clearance on property accountability.
B. Of the Chief of the Division or Head of Office:
1. Tables and chairs used by contractuals or temporary employees should be joint accountability of the Chief or Head of Office to whom these employees are assigned and the contractual/temporary employee.
2. a. In case of properties left by a transferring/detailed employee, the Division Chief or Head of Office of the former office shall reassign such properties to another within his/her Division Office with the cancellation of the MR of the transferring employee and the subsequent issuance of a new MR.
b. In case of properties brought along by the transferring employee from a former office, the Division Chief or Head of Office of the former office shall give his/her written consent for the pull out of such properties.
c. In case of properties no longer needed by the former office, the property has to be surrendered to General Services Division for appropriate cancellation of the Memorandum Receipt (MR).
3. In case of employee's leave of absence for a month or more, the Division Chief or Head of Office concerned shall not recommend for the approval of the leave of absence unless a duly approved clearance on property accountability had been presented. Likewise, he/she should send a written notice to the Chief of the Administrative Service to instruct those employees to settle their accountabilities before going on leave.
The same policy will apply to those employees resigning from the Department.
C. Of the General Services Division:
1. Same as in the case in III. B. 2, the GSD should cancel the MR of the transferring employee and should subsequently issue a new MR to the new end user within the Division of Office.
2. The GSD should see to it that employees who go on leave for a month or those who resign from the Department are properly cleared of their property accountabilities. Properties under their custody should be checked before duly approved clearance is issued.
3. The GSD should see to it that every employee should be oriented of his property accountability before such employee takes full responsibility of properties left by his/her co-employees. This is in the case where some employees assumed responsibility/accountability over properties left by their co-employees who cleared themselves of property accountabilities due to retirement, transfer, detail, leave or resignation.
4. Properties not covered by MRs shall be considered as under the direct responsibility of the Property Officer.
5. The GSD should provide a safe warehouse where properties with identification tags for disposal, those that were either returned or for repair, can be kept.
IV. On Recording:
A. The individual MR folder should be filed neatly and properly by an assigned GSD staff in a restricted room wherein only the authorized personnel can have access to.
B. When the equipment is transferred from one person to another, the transfer shall be recorded on the corresponding equipment ledger cards; the old MR is cancelled and returned to the former user of the equipment. A new MR shall be accomplished and submitted by the person to whom the property was reissued.
C. The GSD should assign three (3) staff members at the Stockroom Section: one who will take charge of receiving the equipment/supplies, one to record on the corresponding equipment/supplies ledger cards and the other in the release of such equipment/supply. The GSD staff member assigned to the releasing function must not release the property without the issuance of an MR with complete specifications/descriptions.
The General Services Division, under the supervision of the Administrative Services, is hereby tasked to fully implement the aforementioned policy guidelines; the monitoring of such shall be the responsibility of the Management Division.
This Order takes effect upon date of approval.
22 August 1994.
Elliptical Road, Diliman, Quezon City.
(SGD.) ERNESTO D. GARILAO
Secretary
REPUBLIC OF THE PHILIPPINES
Department of Agrarian Reform
Diliman, Quezon City
PROPERTY/EQUIPMENT LOSS AND DAMAGE REPORT
NATURE OF REPORT : ( ) LOSS ( ) DAMAGE
PROPERTY/EQUIPMENT : __________________________
PROPERTY NUMBER : __________________________
GSIS INSURANCE POLICY NO. : ____ PERIOD COVERED: _____
DATE OF POLICY : ________ AMOUNT: _________
DESCRIPTION : __________________________
__________________________
__________________________
REPORTED BY: NOTED BY:
________________________ ________________________
Signature Signature
________________________ ________________________
Name of End-User Head of Office
Note: Under Description, for vehicle, give detailed information as to Model, Engine No. and Chassis No.
INSPECTED BY: DATE INSPECTED:
________________________ ________________________
GSD Representative
FINDINGS/RECOMMENDATIONS:
__________________________
__________________________
__________________________