Republic of the Philippines

City of Manila
Department of Social Welfare
(Kagawaran ng Kagalingan Panlipunan)

PROPERTY & SUPPLY

SECTION
OPERATION MANUAL
 FOREWORD

The Manila Department of Social Welfare (MDSW) Property and

Supply Section duly recognize the paramount necessity of
managing the resources of the entire department, particularly
office and food supplies and physical properties, with utmost
efficiency and transparency consistent with existing laws and
prescribed government rules and policies.
Proper safeguarding, maintenance, utilization, disposal and
proper accounting of its valuable assets are essential for the
Department’s internal management. It would be easier to
implement risk assessment, property management and
accountability throughout the organization through implementing
adaptive methods and measures in line with the principles of
good governance.
This operation manual has been designed to instruct the Supply
Officers/Property Custodians of the procurement procedures and
asset management. It also outlines the custodians’ vital
responsibility to enhance performance throughout the supply and
property management process so as to ascertain the delivery of
services and an apt decisive respond to the demands and
challenges of the Department in line with its vision of
“Empowered and improved communities where individuals and
families experience a better quality of life.”

2
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 ACKNOWLEDGEMENT

This manual was developed through the persevering efforts,

support and contributions of the valuable members of the
Property & Supply Section, the Advisers and Consultants, and
selected Supply Officers/Property Custodians from the field offices
and institutions.
In this regard, the said Section would like to express its sincere
and deepest appreciation and gratitude to those mentioned above
whose continued assistance, constant guidance and professional
suggestions made this manual possible.
Further, sincere gratitude is extended to the Head of the
Department & our Consultant for the inspiration and support in
making this material a reality.

3
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 BASIC PRINCIPLES

Under the 1987 Philippine Constitution, Section 1 Article 11 thereof

provides that the Public Office is a Public Trust. Public officials and
employees must at all times be accountable to the people, serve them with
utmost honesty, responsibility, integrity, loyalty, and efficiently act with
patriotism and lead modest lives.
Also, Section 2 of Presidential Decree No. 1445 otherwise known as
The State Auditing Code of the Philippines states that “all resources of the
government shall be managed, expended or utilized in accordance with
law, rules and regulations & safeguarded against loss or wastage through
illegal or improper disposition with the view of ensuring economy,
efficiency, and effectiveness in the operation of the government”. The
responsibility to take care of such policy rests directly with the chief or the
head of the government agency concerned.
Accordingly, every officer of the government whose duties require or
permit the possession or custody of funds and property should adhere to
the declared policy of the state. They shall promote the ideas of good
governance in all its branches, department, agencies, subdivisions and
instrumentalities including Government-Owned and Controlled Corporation
(GOCC) and Local Government Units (LGUs). Likewise, they shall exercise
proper transparency, accountability, responsibility and liability in
undertaking their duties and functions. Subsequently, the exercise of such
duties and functions shall mean to provide good governance in the
implementation of programs and projects.
The Head of the Agency is primarily responsible for all government
funds and properties pertaining to the agency. Likewise, the person
entrusted with the possession or custody of the funds or property shall be
responsible to the head of Office without prejudice to the liability of either
party of the government.

4
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 ORGANIZATIONAL STRUCTURE OF
THE PROPERTY AND SUPPLY SECTION

The Property and Supply Section operates under the Administrative

Services Division. It assists the entire Department in managing and in
providing quality resources particularly food and office supplies, materials
and equipment of its units and institutions.

Existing Set Up:

DEPARTMENT
HEAD

ADMINISTRATIVE SERVICES
DIVISION

PROPERTY & SUPPLY

SECTION

PROPERTY OFFICER/CUSTODIAN PROPERTY OFFICER/CUSTODIAN

DISTRICT OFFICES CENTERS and INSTITUTIONS

5
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
THE THREE (3) MAJOR FUNCTIONS OF THE PROPERTY AND
SUPPLY SECTION

The function of the property and supply officer of the Section shall be
performed by a regular officer or employee designated as property
officer/custodian.

1. Implement Effective Internal Control

a. Prepares and maintain Inventory Custodian Slip (ICS) for all
inventory items, report of Supplies and Materials Issued (SMI), Stock
Cards for supplies and materials and Property Card for all Property,
Plant and Equipment (PPE).
b. Prepares Acknowledgement Receipt of Equipment (ARE) for all PPE.
c. Conducts physical inventory of all PPE of the department and
consolidates the same for the preparation of Annual Inventory
Report.
d. Disposes waste materials and all unserviceable equipment in
accordance with applicable laws, rules and regulations.
e. Issues clearance from property accountability of all officials and
employees of the Central Office, Units and Institutions.
f. Maintains and updates master database of inventories of all PPE and
inventory items in the Central Office.
g. Monitors and maintains stock cards of office supplies and properties.
h. Conducts pre/post-delivery inspection of office supplies and
properties and equipment to the field together with the inspectorate
team. Monitors and maintains stock cards of the same.

2. Procures Supplies in a Cost Efficient and Effective Manner.

a. Prepares Project Procurement Management Plan (PPMP) for all
offices/units/institutions of the Department and consolidates
common-use items into an Annual Procurement Program (APP).
b. Prepares Agency Procurement Request (APR) for all items to be
procured at the DBM-PS including procurement of common-use items
that are available at DBM.
c. Prepares Purchase Request (PR) based on approved PPMP and Work
and Financial Plan and Request for Allotment for common-use items
not available at DBM for submission to the City’s Bids and Award
Committee (BAC).
d. Accepts deliveries of supplies, materials and equipment, based on
Purchase Order (PO), and request for the conduct of the inspection
with the City General Services Offices (CGSO).
e. Issues and distributes available supplies, materials and equipment to
requesting sections, units, and institutions of the Department.

6
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
3. Provides technical assistance pertaining to property and supply
management.
a. Participates and provides technical support knowledge and
information on supply/property management matters to seminar or
workshop.
b. Recommends policy that pertains to delivery, inspection and
acceptance of supplies, materials and equipment to the field through
Department Orders and other issuances.

7
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
FUNCTIONS OF THE UNIT/INSTITUTION
PROPERTY OFFICER/CUSTODIAN

The function of the property and supply officer at the Unit/Institution shall
be performed by a regular officer or employee designated as property
officer/custodian.
Functions of the Unit/Institution Property Officer/Custodian
1. Prepares PPMP for the Unit/Institution.
2. Accepts, distributes and monitors all deliveries of supplies, materials and
equipment to the offices under the Unit/Institution and prepares
necessary reports required by the Property & Supply Section.
3. Prepares request for inspection of deliveries of supplies, materials and
equipment as well as the Inspection and Acceptance Report (IAR).
4. Prepares and maintains Property and Stock Cards for all properties and
supplies of the Unit/Institution.
5. Prepares report on the Physical Count of Inventories (RPCI) and the
Property, Plant and Equipment (PPE).
6. Prepares and endorse the clearance of property accountability for all
officials and employees of the Unit/Institution with the Property &
Supply Section.

8
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 INTERNAL CONTROL ON REQUISITION/ISSUANCE OF
OFFICE AND FOOD SUPPLIES, MATERIALS AND EQUIPMENT

RESPONSIBLE SECTION/ INSTITUTION ACTIVITY

PROPERTY & SUPPLY OF INSTITUTION Inform CGSO Inspector about the delivery

PROP. & SUPPLY/BODEGA/CGSO INSPECTOR Witness and account the items delivered

As to food items, give copies of DR/s to concerned

Institution for information of the delivery.
BODEGA
As to office items, materials and equipment, stores
and prepares inventory report.

Prepare food order using RIV form with appropriate

attachments:

 Food Supplies- attach Food Menu, Weekly

CONCERNED INSTITUTION Consumption Report, List of Recipients, Photocopy
of DR/s, Food Order Requisition.
 Office Supplies and other items- attach Weekly
Consumption Report.
Then submits it to Property and Supply Section.

Assess and evaluate the submitted RIV and

PROPERTY & SUPPLY SECTION attachments. Then forward the same with
recommendations to the office of the OIC.

Approve or disapprove the RIV with comment or

OIC
other instructions

If approved, inform the concerned institution to pick

up the RIV.

PROPERTY & SUPPLY SECTION If not Approved, re-evaluate and coordinate with the
concerned institution on the necessary changes.
Cancel the old disapproved RIV and issue a revised
RIV and submit the same for approval to the OIC.

Pick-up the RIV from Property & Supply Section and

CONCERNED INSTITUTION
give the original copy to the BODEGA.

BODEGA Release the approved requested items.

9
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 10
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 THE ROLE OF THE PROPERTY & SUPPLY SECTION
ON PROCUREMENT PLANNING AND BUDGET PREPARATION

Procurement planning ensures that the overall goal of a particular

project will be achieved effectively and efficiently. Through plans, a Local
Government Unit (LGU) is able to effectively manage and track
procurement all the way to contract performance. As such, it allows the
local department and offices (or end-users) to determine how to allocate
limited cash and other appropriate resources under a given timeline as well
as to identify choke-points, weaknesses, and delays in the entire activity
that can be addressed or eliminated. Also, a sound procurement planning
enables the LGU to be cost efficient in its procurement, as it ensures a
strong link between procurement needs and goals.
Proper planning ensures that only goods, infrastructure projects, and
consulting services which have been included in the approved Annual
Procurement Program (APP) shall be procured, thereby precluding
occasions for unnecessary government purchases and circumventions of
the prescribed procurement procedures such as advance deliveries or
unwarranted resort to alternative methods of procurement, among others.
The APP is the document that consolidates the various PPMPs submitted by
the various end-user units within the LGU. It reflects the entirety of the
procurement activities that will be undertaken by the LGU within the
calendar year.
Procurement planning should be done within budgetary context,
reflecting the LGU’s priorities and objectives for the budget period.
Accordingly, at the start of every budget period, the procuring entity shall
prepare its proposed budget for the succeeding calendar year, taking into
consideration the budget framework for that year in order to reflect its
priorities and objectives for the budget period.
The end-users of the procuring entity, through their respective
Property and Supply Section, shall prepare their own Project Procurement
Management Plan (PPMP) for their different programs, activities, and
projects. A PPMP serves as a guide document in the procurement and
contract implementation process, as well as a vital reference in
procurement monitoring. It deals primarily with:
a. planning for the procurement of project requirements;
b. bidding or procurement strategy;
c. source selection;
d. time schedule for each procurement activity;

11
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 e. delivery schedules;
f. contract administration;
g. contract termination;
h. procurement milestones; and
i. other important procurement details or information.

The PPMP shall then be submitted to the LGU’s Budget Office. The
LGU’s Budget Office shall evaluate each end-user’s submitted PPMP and, if
warranted, include it in the LGU’s budget proposal for approval by the
Head of the Procuring Entity (HOPE) which is the Mayor.
After the budget proposal has been approved by the HOPE and/or
other oversight bodies, the LGU’s Budget Office shall furnish a copy of the
procuring entity’s budget proposal as well as the corresponding PPMPs to
the BAC Secretariat for its review and consolidation into the proposed APP.
The proposed APP shall be consistent with the LGU’s budget proposal.
As soon as the appropriation ordinance becomes final, the end-user
units shall revise and adjust the PPMP to reflect the budgetary allocation
for their respective programs, activities, and projects. The revised PPMPs
shall be submitted to the BAC, through its Secretariat, for the finalization of
the modes of procurement under the proposed APP. Updating of the
individual PPMPs and the consolidated APP shall be undertaken every six
(6) months or as often as may be required by the HOPE.
The updating of the PPMPs shall be the responsibility of the
respective end-user units of the LGUs, while the consolidation of these
PPMPs into an APP shall be lodged with the BAC Secretariat, subject to
approval of the HOPE. The ABC as reflected in the APP or PPMP shall be at
all times consistent with the appropriations for the project authorized in the
appropriation ordinance.

[Source: Local Government Units Procurement Manual (2014) - Government Procurement Policy Board (GPPB)]

12
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 13
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 THE ROLE OF THE PROPERTY & SUPPLY SECTION
ON THE PROCUREMENT PROCESS

Governing Principles

The Manila Department of Social Welfare adopts the following principles as

stated in Sec. 3 of RA 9184, otherwise known as the Government Procurement Reform
Act which states that “all procurement of the government, its departments, bureaus,
offices and agencies including local government units, shall in all cases be governed by
the following principles:
a. Transparency in the procurement process and in the implementation of
procurement contracts;
b. Competitiveness by extending equal opportunity to enable contracting parties who
are eligible and qualified to participate in public bidding;
c. Streamlined procurement process that will uniformly apply to all government
procurements. The procurement process shall be simple and made adaptable to
advances in modern technology in order to ensure an effective and efficient
method;
d. System of accountability where both the public officials directly or indirectly
involved in the procurement process as well as in the implementation of
procurement contracts and the private parties that deal with the government are,
warranted by circumstances, investigated and held liable for their actions relative
thereto; and
e. Public monitoring of the procurement process and the implementation of awarded
contracts with the end in view of guaranteeing that these contracts are awarded
pursuant to the provisions of this Act and its implementing rules and regulations,
and that all these contracts are performed strictly according to specifications.

R.A. 9184 applies to the procurement of infrastructure projects, goods, consulting

services, regardless of sources of funds, whether local or foreign, by all and
instrumentalities of government, subject to the provisions of the Commonwealth Act
No. 138 otherwise known as the “Flag Law”. Any treaty on international or executive
agreement affecting the subject matter of the Act to which the Philippine Government is
a signatory shall be observed.

Project Procurement Management Plan (PPMP)

And Annual Procurement Plan (APP)

In all cases, procurement should be within the approved budget of the procuring
entity. It should be meticulously and judiciously planned through the APP prepared,
consistent with the government fiscal discipline measures. It should cover only those
considered crucial to the efficient discharge of government functions formulated and
revised in accordance with the guidelines of the IRR of RA 9184. The City Government
of Manila is mandated to consolidate the APP from the PPMP submitted by the different
Departments, Bureaus, Offices, as Project Management Offices (PMOs) or End Users:

A. Preparation of the PPMP

The Project Management Offices (PMOs) or end-user units of the procuring

entities are responsible in preparing and updating their respective PPMPs based on their
annual work and financial plan.

14
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 These units may avail of the services of technical experts to review
their individual PPMPs which shall indicate the:
1. Type of items to be procured, whether goods, services or infrastructure projects;
2. Extent/size of contracts scope/packages;
3. Procurement method to be adopted;
4. Time schedule for each procurement activity; and
5. Estimated budget for the general components of the contract.

B. Preparation of the APP

All government procurement shall be undertaken in accordance with the

approved APP. The procuring entity shall judiciously prepare, maintain and update its
APP for all its procurement that shall include individual project and PPMP.

The BAC Secretariat of the City of Manila is responsible in consolidating the

different PPMPs for both the common-use and non-common-use items of the procuring
entity’s APP.

15
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 PROCUREMENT PROCESS

16
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 DELIVERY, INSPECTION AND ACCEPTANCE

I. Delivery

The delivery of supplies, materials and equipment must be made by the

supplier/manufacturer/contractor in accordance with the specifications, terms and
conditions provided in the Contract/Purchase Order (PO).

Deliveries of supplies must be made by the Supplier/Manufacturer/Contractor within the

stipulated period and at the place/s indicated in the purchase order or contract. In all
cases, delivery shall be made within office hours and during working days. Failure to
deliver within the prescribed period, the supplier/manufacturer/contractor shall be liable
for penalty, usually in the form of liquidated damages specified in the
Contract/Purchase Order. Liquidated damages in the amount of one-tenth (1/10) of one
percent (1%) of the total amount of undelivered items in the contract shall be deducted
for each day of delay.

The supplier/contractor/manufacturer may, in meritorious and justifiable cause, request

for extension of time to deliver. The request shall be made before the expiration of the
contract period. Extension of time may be granted in case of force majeure, fortuitous
event, or if the reason beyond the control of the contractor, or the delay is attributable
to the purchaser or the like.

All supplies shall be adequately contained, packed, crated, cased, bundled, wrapped or
sealed to prevent damage, spoilage and loss. They must be properly labelled and
marked in accordance with the minimum labelling requirements of RA 7394 otherwise
known as Consumer Act of the Philippines. Responsibility in case of damage, spoilage or
loss shall be governed by the existing laws on the matter unless the purchase order or
contract provides otherwise. Deliveries shall be made within seven (7) calendar days
upon receipt of the order unless otherwise provided in the Purchase Order or contract.
All items delivered shall be received by the Supply Officer/Designated Property
Custodian as the case may be. Receiving and signing on the Delivery Receipt (DR) and
temporary recording of the deliveries shall be subjected to inspection by the
Inspectorate Team.

II. Inspection

Inspection is the process of examining and testing the procured supplies,

materials, equipment and services including raw materials and components to
determine their conformity with the contract requirements including all applicable
drawings, specifications and purchase description.

The inspection of items shall be done by the Inspectorate Team, whose

members shall be determined and designated by the HOPE. Inspection shall be done in
accordance with the standards and specifications and be conducted in the presence of
the suppliers and the Department through the Property and Supply Section.

The Inspectorate Team and the representative of the Property and Supply
Section shall prepare and sign the Inspection and Acceptance Report (IAR).

17
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
A. Techniques for Inspection

Inspection by Item. Individual item is checked in conformity with the

requirement stated in the specifications. This method of inspection is applicable, but not
limited to deliveries of equipment and fixed assets.
Inspection by Sampling. Sampling is a process of obtaining information about
a group of data having similar purpose or function, usually ten percent (10%) of the
total or lot delivery.

B. General Procedures in Conducting Inspection

1. Upon receipt of the request for inspection, check the following documents as to their
completeness and authenticity.
a. PO and Contract
· Date
· PO Number
· Name and Address of the supplier
· Supplier’s Acknowledgement or Receipt (date of receipt)
· Specifications
· Quantity
· Unit/Total price
· Availability of funds
· Approval of the HOPE or his duly authorized
representative)
b. Supplier’s Invoice Delivery Receipt
· Pre-numbered and not just typed stamped or handwritten
· Date checked against the delivery date stated in the PO or contract
· RECEIVED” portion Receipt and date of item delivered, acknowledged by
the Property and Supply Section.
c. Other required papers necessary for a substantive inspection such as
catalogue/brochures /government standard specifications, etc.

2. Conduct inspection and testing procedures when applicable.

3. Prepare inspection report immediately and give to the Inspectorate Team and Supply
officer/designated property custodian for signature.

C. Inspection Procedures

1. Examine the item as to the physical condition:

a. Food Items- Check for perished raw goods, information and expiration
date in case of canned or packaged goods.
b. Office supplies, Materials and Equipment- Check if brand new, second
hand, rebuild or reconditioned. See to it that no defective or worn out
parts.

2. Make a physical count and inspect the goods piece-by-piece or unit by- unit.
Random sampling is not applicable unless made in the presence of the supplier or
his representative.

3. In case of equipment, demonstration of actual operation of the equipment (test run)

and/or the actual performance thereof is required.

18
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
4. For equipment get the warranty card and note down the warranty card number in
the original invoice. Check if the serial number indicated thereon is the same as that
of the delivery.

5. In case of delivery at the site (Institution), the Inspection Committee shall inspect
the goods at the Department’s bodega in the presence of the supplier and check
whether the description and quantity of goods received are in accordance with the
contract specifications prior to its delivery to the institution. The Property Officer or
Custodian shall receive all deliveries and shall sign the delivery receipt.

6. If no deviation is found in the goods in terms of quality and specifications, the

Designated Property Custodian and the inspectors shall sign the Inspection and
Acceptance Report (IAR) together with the Delivery Report (DR) to be submitted to
the Property Supply Officer. However, if there are deviations, the inspection
committee shall reject the delivery of goods and submit reports for the rejected
delivery of goods.

III. Preparation of Disbursement Voucher

The preparation of disbursement voucher shall be the responsibility of the

Department as end-user and/or Supply Officer/Designated Property Custodian after the
inspection and acceptance of the supplies, materials and equipment delivered or the
services rendered.

CUSTODIANSHIP

A government official is mandated to exercise diligence in the custodianship of

any government property.

Basic Concepts

Property Custodianship refers to the guardianship of government property by the

accountable person. This includes the receipt, safekeeping, issuance, repair and
maintenance of supplies, materials and equipment. The designated property
custodian/officer is responsible, accountable and liable for any loss, misuse, damage or
deterioration of government property due to fault or negligence in safekeeping which
may be physical or constructive.

I. Storage/Warehousing

Storage/Warehousing refers to the scientific and economical warehousing of

materials for their best safekeeping and availability. Best safekeeping means protecting
the materials against theft, fire and deterioration but easily accessible when needed.
The method or systems include factors and procedures in the manner of undertaking
due care and maintenance of good condition of the property.

19
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
Factors to be considered in Storage and Warehousing
1. Site Location and Size of Storage/Stockroom to Use
Generally, selection of site location, type and size of storage or stockroom to
be use, play a major role for an effective storage and Warehousing management. It
is an important factor for the following purposes:
 To be able to figure out the amount of materials that can be stored;
 For determination of access for efficient and proper transport of supplies and
materials;
 For provision of large size of doorways and entrances;
 For installation of proper lightings and ventilation.

2. Space Layout Planning for Materials to Be Stored

For easy facilitation, space layout for materials to be stored should be
properly planned. Specifically, the layout should contain the placement of supplies by
category, type, similarity, popularity, sizes, shapes, characteristics and to include
perishability. It is important that materials be stored and placed in its proper places
to avoid accidents and wastage.

3. Types of Stacking Suitable for Each Type of Property

In like manner as in space layout planning, types of stacking for each type of
materials should be given careful planning. It may be classified into 1) Bulk Storage
2) Medium Lot Storage and 3) Small Lot Storage. Where possible, all stocks should
start at the wall and then worked forward to the aisle.

Procedures in Storage/Warehousing
1. Receipt of Materials and Equipment and Other Property -
Supplies, materials and equipment delivered by the supplier must be
accompanied by Delivery Receipts (DRs) and/or Sales Invoice (SI), which were pre-
inspected by the supply officer/designated property custodian before the items are
received.

2. Arrangement of Materials -
The storekeeper arranges the materials inside the warehouse/stockroom in
accordance with the prepared storage plan.

3. Recording of Receipts/Deliveries
The storekeeper properly posts and updates the information (receipts,
issuances and balance on hand) taken from the IAR. Reconciliation of entries of bin
cards with stock/property cards and with physical count of stock on hand.

4. Reconciliation of Entries of bin cards with Stock/property

Cards and with Physical count of stocks on hand. All should be current and
properly updated.

20
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
II. Issuance and Utilization

Issuance and utilization of supplies, materials and equipment are among the
activities of property custodianship. The custodianship of supplies and equipment is
transferred from the Supply Officer/Designated Property Custodian and
storekeeper/Warehouseman to the end-user who is responsible and accountable for the
utilization and/or safekeeping. However, the utilization of supplies and property requires
an efficient and honest procurement, an adequate stock control, complete recording,
and proper care of the property. Likewise, a systematic and coordinated transfer of
dormant, surplus, and excess items from one government agency to another, as well as
maintenance and repair of property can also promote greater service and economy to
the government. In like manner, an appropriate and timely transfer/movement of
property can promote greater economy in the utilization of resources of the
government. To assure such service and economy, a responsible official/employee
should be selected to perform the custodianship of property. (See Internal Control in
Requisition/Issuance of Office and Food Supplies, Materials and Equipment on Page 9)

DISPOSAL

Disposal is the end of the life cycle of a government property.

Basic Concepts

Despite the proliferation of various laws, rules and regulations governing disposal of
property, a considerable quantity of unserviceable, no longer needed, obsolete,
forfeited/seized supplies, materials and equipment and valueless records have grown
into unmanageable and uneconomical proportions in various government agencies. To
save cost of maintaining such property, there is a need for their disposal.

Pursuant to Sec. 1 of EO No. 888 and COA Cir. No. 89-296, the full and sole
authority and responsibility for the disposal of properties and other assets owned by the
Government shall be lodged in the heads of offices.

Guidelines in the Disposal

A. Inspection

Inspection is conducted to observe the physical condition of the property to be

disposed. An ocular inspection is usually done to have a first-hand observation of the
conditions of the property. Its objective is to supplement theoretical computations of
value with first hand observation of the condition of the property.

1. Non-Perishable Items (Office Property or Equipment)

In the conduct of inspection of non-perishable property to be disposed, the

following shall be performed:
a. Identify the property in accordance with its descriptions in the inventory list or
directive.
b. Check the condition of the property and determine whether operational, under
repair or irreparable.
c. Determine if the property is economically repairable and the most probable cost
of its repairs and current costs of spare parts.

21
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
 d. Check for the damage/worn-out or missing parts. Careful determination of its
present physical condition shall serve as basis for its depreciation and correct
evaluation/valuation.
e. Verify stated ratings, capacity, model, year of manufacture, serial number,
chassis number, motor number, and other technical specifications, and
accessories, if any.
f. Determine the correct date when the property has been acquired or its present
age/number of years the property has been actually used or operated.
g. See if property is obsolete or still being manufactured and if spare parts are still
procurable in the market. If property is found obsolete, appraise the property as
junk.
h. Determine the quality or degree of maintenance, repair, restoration or upgrading
made, check logbook, if available.
i. Determine the extent of use, mileage, rate of depreciation, and any excessive
wear and tear.
j. Determine whether property has still market demand; or the existence of
probable buyers in the locality.
k. Inspect the location of the properties and the available facilities for their
transportation.
l. See if the property is sheltered or exposed to elements and theft.
m. Determine the parts which could be salvaged or profitably used such as engine,
dynamo, wheels, tires, axles, body/chassis, etc. of motor vehicles. These
salvaged parts could either be transferred to or used by other equipment or shall
serve as its spare or standby parts.

2. Perishable Goods (Food Items)

In the conduct of inspection of perishable food items to be disposed, the

following shall be performed:

a. Non-Processed Food (Raw and/or Cooked)

1) Check the condition for any sign of spoilage.
2) If the said food is found to be spoiled, immediately report the matter to the
Head of the unit/institution for its immediate disposal.
3) If the quantity of food items is in bulk and there is uncertainty if it is fit for
human consumption, immediately coordinate with the Manila Health
Department (MHD) to conduct inspection. If found to be unfit for human
consumption, immediately report the matter to the Head of the
unit/institution and the Property & Supply Section for its proper disposal.

b. Processed Food (Canned or Packaged)

1) Check the exterior condition for any sign of spoilage or contamination due to
rust or defect in the packaging, and determine the information or date of its
expiration.
2) If the quantity of food items is in bulk and there is uncertainty if it is fit for
human consumption, immediately coordinate with the Manila Health Department
(MHD) to conduct inspection. If found to be unfit for human consumption,
immediately report the matter to the Head of the unit/institution and the
Property & Supply Section for its proper disposal.

22
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16
General Procedures for Disposal

1. The Accountable Person shall report and return the unserviceable supplies/property
to the Property Officer/Custodian of the said unit/institution.
The Property Officer/Custodian of the said unit/institution shall then endorse and
return the unserviceable supplies/property to the Property & Supply Section.
2. The Property & Supply Section shall file an application for disposal together with
the appropriate documents to the City General Services Office (CGSO).
3. The CGSO shall inspect the items and determine their value and give a written
recommendation to the Head of Office.
4. The Property & Supply Section shall forward the documents to the Disposal
Committee.
5. The Disposal Committee shall recommend to the Head of Office and to the BAC on
Disposal the mode of disposal as appropriate and deemed most advantageous to
the government.

23
MDSW Property & Supply Section
Rm. 108-109, G/F Manila City Hall, Ermita, Manila. Tel. /Fax No. 527-49-16