Professional Documents
Culture Documents
SUBJECT :
I.
PURPOSE:
Physical inventory-taking being an indispensable procedure for checking the integrity
of property custodianship has to be regularly enforced. In line with this and to
operationalize the provisions of Section 102 of the Government Auditing Code of the
Philippines (P.D. 1445), this circular is issued.
II.
SCOPE
This circular prescribes the rules and regulations for the inventory of fixed assets of
all government-owned and/or controlled corporations and subsidiaries, including selfgoverning boards, commissions, agencies and state colleges and universities.
III.
negligence in the keeping or use of the property whether or not it be at the time in his
actual custody.
Every officer of any government agency whose duties permit or require the
possession or custody of government funds or property shall be accountable therefor and
for the safekeeping thereof shall be properly bonded in accordance with law.
Failure on the part of the officials concerned to submit the inventory reports
mentioned herein shall automatically cause the suspension of payment of their salaries
until they shall have complied with the requirements pursuant to Sec. 122 of PD 1445.
IV.
PERIOD OF INVENTORY:
Physical inventory of fixed assets shall be made at least once a year as of December
31 in accordance with the guidelines enumerated herein.
Inventory reports of regional/branch offices, shall be submitted to the head of the
agency not later than January 20 for consolidation and the consolidated inventory shall be
submitted to the Auditor not later than January 31 of each year, unless extended by the
Chairman upon prior request of the head of agency concerned.
V.
Memorandum Receipt
Inventory Reports
All inventory reports shall be prepared on the prescribed form (Gen. Form No. 41-A)
and certified correct by the committee in charge thereof, noted by the Auditor and
approved by the head of the agency. The reports shall be properly reconciled with
accounting and inventory records.
VI.