GENERAL MEMORANDUM CIRCULAR NO. 01-06
October 31, 2006
GENERAL MEMORANDUM CIRCULAR NO. 01-06
SUBJECT : Revised Guidelines on the Issuance of Employees' Acknowledgment Receipt
In line with National Government Accounting System (NGAS) and in compliance to the Government Accounting and Auditing Manual (GAAM), and in order to clean-up employees' record of property accountabilities, the following guidelines on the issuance of acknowledgement receipt of accountabilities are hereby adopted and/or reiterated:
1. All purchases of office properties and equipment shall be covered by Purchase Receipts (PR) and thereafter issued an Acknowledgement Receipt of Accountability (ARE).
2. The ARE shall reflect the specific description, unit cost, and property number of the item. Life expectancy or expected useful value (period) shall be preferably indicated.
3. For this purpose, the GSD or its Issuing Officer shall coordinate with the Accounting/Auditing Office to determine the properties useful life.
4. Employees shall be accountable for one item of each kind of property. The Supply Officer shall be responsible in monitoring compliance therein. aSADIC
5. The allowable total cost of properties that will be issued to the end user shall be dependent on their salary grades, to wit:
6. This system of accountability shall be strictly implemented to provide limit for each personnel and lessen the burden of the end-user in case such properties are lost.
7. All employees who were issued properties that became valueless, unserviceable or had exceeded its life expectancy are directed to surrender those items to the General Services Division to be able to be cleared of accountability for such items.
8. AREs on properties used by employees under Contract of Service or hired for Consultancy Services should be received and signed by the Division Chief/Chief of Staff or Head of Office where they are assigned.
9. Renewal of AREs every three years should be done by the General Services Division. This shall be implemented starting this 3rd semester of 2006 and after three years thereafter.
10. The renewal and/or updating of accountability shall be done in order to check the existence of these properties.
11. The GSD shall prepare a report on AREs renewed/cancelled and an inventory of properties and equipments (AREs as against physical presence of particular properties). The report shall cover all Offices and Units of the Central Office and shall be submitted on the 2nd week of December of each scheduled year of renewal to the Director for Administrative Service, copy furnished the Office of the FMA Undersecretary.
12. Heads of Offices are encouraged to cooperate with this activity by enjoining staff to check their respective accountabilities and to properly coordinate with the GSD.
13. The GSD should assign a team to update and/or accomplish the clean-up of employees' accountabilities.
Accountability and Responsibility
14. In case of loss of properties — 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 therefore or having custody thereof shall immediately notify the Commission or the auditor concerned and, within thirty days or such longer period as the Commission or Auditor may, 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 (GAAM Section 498, Vol. 1).
15. 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 employee within his/her Division/Office with the cancellation of the MR of the transferring employee and the subsequent issuance of a new ARE.
16. 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. TAScID
17. 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 ARE.
18. In case of employees' 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. The same policy will apply to those employees resigning from the Department.
19. The General Services Division shall ensure the transfer and cancellation of ARE to those employees who transfer, resigns and/or retires and shall issue appropriate clearance of their property accountabilities after ascertaining and/or checking these properties. Likewise, the GSD shall ensure the re-issuance of ARE to those employees who shall assume responsibility and accountability for such properties.
20. The GSD should ensure that the employee where the accountability will be transferred is fully oriented of his/her existing accountabilities prior to assuming full responsibility over properties left by their co-employees.
21. The GSD should maintain an accurate recording of employees' property accountabilities and responsibilities. Any inconsistencies or fault which may accrue due to mishandling of property and accountability records shall be dealt with accordingly and may be a ground for disciplinary action.
This directive shall be fully implemented by the GSD with the appropriate guidance from the Administrative Service Director. A monitoring team from the Management Division shall be created to oversee completion of this activity.
This order takes effect immediately.
October 31, 2006, Elliptical Road, Diliman, Quezon City.
(SGD.) NASSER C. PANGANDAMAN