PROPERTY AND SUPPLY

MANAGEMENT
SYSTEM

Supply
Management
describes the methods and process of modern

corporate or institutional buying. This may be for

the purchasing of supplies for internal use,
purchasing raw materials for the consumption
during the manufacturing process, or for the
purchasing of goods for inventory to be resold as
products in the distribution and retail process.
The Supply Management function of any
organization is responsible for various aspects of
acquiring goods and services for the organization.

The Phases of Property and Supply

Management System.
1. Planning
2. Acquisition
3. Procurement
4. Custodianship
5. Issuance and Utilization
6. Disposal

1. PLANNING
Annual Procurement Plan *(APP)
refers
to
the
itemized
list
of
supplies/materials/equipment showing the
kind, estimated quantity, estimated cost
and description.
a. It is prepared and submitted to the DBM
as part of its Work and Financial Plan on
or before the end of November.

b.
No government Procurement shall be
undertaken unless it is in accordance with the
approved Annual Procurement Plan of the
Procuring Entity.
c. Supplementary Procurement Plan and
Program is submitted to the DBM in case
of
additional supplies/materials/equipment
necessary to be procured.

***GRAND TOTAL:

1,196,896.31

TOTAL W/ 10% ADDITIONAL PROVISION FOR INFLATION

...
APPROVED BUDGET:

..

1,316,585.94

*Other categories that are not

indicated herein
**Prices are FOB
Manila/Applicable for items
under A.
***Grand total for items under A
and B

We hereby warrant that the total amount reflected in this Annual Supplies/ Equipment Procurement Plan to
procure the listed common-use supplies, materials and equipment has been included in or is within our approved
budget for the year.

Prepared by:

Certified Funds
Available /
Certified Appropriate

Approve
d:

2.
ACQUISITION
Modes of Acquisition
a. Purchase/Procurement
b. Transfer Under PD 1445 Sec. 76, any government
property that is no longer needed by an agency or
unserviceable may be transferred without cost or at an
appraised valuation to other government agencies
upon
authority of the respective heads of agencies in the
national government or of the governing bodies of
government owned-or controlled corporations,
other self governing boards or commissions of the
government.

c. Donation some fixed assets are acquired through

contributions or donations from the private sector, other
government agencies, both local and foreign, and nongovernment organizations.
Conditions:
A deed of donation from the donor to the donee should be one
of the attachment of the donated asset, stipulating among others
the intent for the use of the said donation.

The donee government agency should attach an acceptance of

donation with the Deed of Donation.

d. Confiscation, attachment or seizure and

foreclosure
all supplies/equipment confiscated by any bureau or
office for violation of laws or regulations and the title
to which has already been acquired by virtue of the
decision of the courts or other competent authorities,
are government properties.

3. PROCUREMENT
Modes of procurement:
a. Public Bidding
b. Negotiated Purchase
c. Limited Source/Selective Bidding
d. Personal Canvass/Shopping
e. Emergency Purchase
f. Repeat Order
g. Direct Contracting/Direct Purchase from duly
license manufacturing
h. Procurement from the Procurement Service
(DBM)
i. Purchase direct from foreign supplier

4. CUSTODIANSHIP
Property custodianship refers to the guardianship of the
government property by the person accountable. This
includes the:

Receipt of supplies;
Materials and equipment;
Safekeeping;
Issuance;
Repair; and
Maintenance.

It also includes the 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

Accountability, Responsibility and

Liability for Government Property
Accountability Every officer of the
government, whose duties permits or requires the
possession or custody of funds and property, is
accountable and responsible for the safekeeping.
He is liable for all losses resulting to the unlawful,
improper deposit, use or application and
attributable to negligence in the keeping of the
same.

Accountable Officer is any officer or

employee of the government who by reason of
his office or duties is required or is permitted to
have custody of public funds or property.
The accountable officer shall maintain and keep
records of his property accountability and shall
render accounts as prescribed by the
Commission on Audit.
Liability refers to the obligation that arises as
a consequence of an illegal or improper act or
the non-performance of what one is mandated to
do.

Bonding of Accountable Officers

Bond is 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.

Insurance of Government Property. The agency

head has the responsibility to insure government
properties under the Property Insurance Fund
administered by the GSIS

Procedure in Insuring the Government

Property:
The Agency Head through the Property Officer
prepares a Property Inventory of the office every
end of the fiscal year, using the form prescribed
by the GSIS.
The Inventory is submitted to the Resident
Auditor of the concerned Agency for
verification.
The Agency Head submits the verified
inventory to the GSIS not later that October 31
of the ensuing year.

Loss of government property:

It is the power of the COA to credit losses of
property or act on application for relief of
accountability

Loss of property may be credited when the loss:

Occurs while the property is in transit, or
Is caused by fire, theft or other casualty, or
force majeure

 Procedure/Requirements for relief from

Accountability
on
the
loss
of
government property:
Immediately notify the Auditor of the
occurrence of the loss within thirty (30)
days;
Submit a request for relief, supported by the
following documents:

 Affidavit executed by the Accountable Officer

stating the following facts:

Property lost and its valuation;

Actual date in which the absence was
first noted;
Manner of Disappearance;
Efforts exerted to recover the same;
Provisions made to safeguard the
property; and
Date when the loss was reported to the
Auditor and the police authorities

Inventory-Taking is an indispensable procedure

for checking the integrity of property
custodianship. The physical stock-taking of
equipment and supplies serves as a basis for
preparing Accounting Reports. At the end of each
quarter the Accounting and the Property Supply
Office should reconcile their records.
Physical Inventory-Taking is conducted
Annually or semi-annually.

5. ISSUANCE AND UTILIZATION

Issuance is the act of transferring the custodianship of a
property from one person to another.
Utilization is the process of promoting greater services
and economy in the use of supplies, materials and
equipment of the government through:
a) Efficient and honest procurement;
b) Systematic and coordinated transfer of control and
recording
c) Proper care, maintenance and repair; and
d) Appropriate and timely disposal.

Activities involved when utilizing

government property:
1. Preparation of issuance documents;
2. Issuance and acknowledgement of
items;
3. Accounting for the issuance and
acknowledgement of the items;
4. Preparation of monthly report; and
5. The reconciliation of monthly report

6. DISPOSAL
Disposal in property and supply management refers
traditionally to the sale or destruction of assets and
property, which are unserviceable and/or no longer
needed in its operation. It is the end of the life
cycle of a government property

Modes of
Disposal:
1. Sale
Public Bidding
b. Negotiated
2. Transfer
3. Barter
a.

4. Donation
5. Condemnation/Destruction

DISPOSAL
1. Sale
a) Sale thru Public Bidding
b) Sale thru Negotiation is undertaken
when:
There was failure of public auction
The Negotiation may be conducted singly provided
that government gets the best price.
A record of proceedings must be maintained.
The negotiated price shall not be lower than the
highest offer submitted at the failed public auction.

2. Transfer
To another government agency/entity.
Without cost or at an appraised value.

3. Barter
Transfer
of
property
to
another
government agency in exchange for
another piece of property.
Value of the property being transferred
may or may not be equivalent to that
being received.

4. Donation
May be made to charitable,
scientific, educational or
cultural institution.

5. Destruction or condemnation is
resorted
to only under any of the following instances:
a. when the unserviceable property:

has no commercial value;

Unsalable;
Hazardous; or
Beyond economic repair.

b. When there is no willing

receiver; or
c. When the appraised value is less than the
administrative cost of sale.

Valueless property shall be

condemned by:
a. Burning
b. Pounding
c. Breaking
d. Shredding
e. Throwing beyond recovery

Thank you!