Slides 4 - Custodianship

CUSTODIANSHIP
PROPERTY CUSTODIANSHIP
• refers to the guardianship of

government property by the
person accountable.
• includes receipt of supplies,

materials and equipment,
safekeeping, issuance, and
repair and maintenance.
PROPERTY CUSTODIANSHIP
• also includes 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
thereof.
ACCOUNTABILITY
• a person’s obligation to carry out

responsibilities and be answerable
for decisions and activities.
• holding people answerable or

accountable to someone for doing
specific things, according to specific
plans and timetables to accomplish
tangible performance results.
ACCOUNTABLE OFFICER
• any officer or employee of the

government who by reason of
his office or duties is required or
permitted to have custody of
public funds or property.
RESPONSIBILITY
• The acceptance of the assigned

authority; the obligation prudently to
exercise assigned or imputed
authority, attaching to the assigned
or imputed role of an individual or
group participating in organizational
activities or decisions.
• State of being answerable for the

discharge of a duty.
LIABILITY
• obligation that arises as a

consequence of an illegal or
improper act or the non-
performance of what one is
mandated to do.
• obligation which a person is

bound to discharge or meet
either in law or in equity.
LIABILITIES OF
ACCOUNTABLE OFFICER
• for all losses, damage or

deterioration occasioned by
negligence in the keeping or use
of the property, whether or not it
be at the time in his actual
custody.
MEASURE OF LIABILITY OF
ACCOUNTABLE OFFICER
• money value in case of improper or

unauthorized use or misapplication
of the government property by
himself or by any person for whose
acts he may be responsible.
DUE CARE
• the amount of care and

attention which an official or
employee would reasonably give
to his private property,
considering all the attending
circumstances.
NEGLIGENCE
• failure to exercise the degree of

care demanded by the
circumstances.
• failure to take the necessary

precaution of zeal in the
performance of one’s duties.
Brainteaser
Is the accountable officer

relieved of liability for misuse of
the funds if he is only directed by
the Head of Office?
No accountable officer shall be
relieved form liability by reason of
his having acted upon the direction
of the a superior officer in paying
out, applying , or disposing of the
funds or property with which he is
chargeable, unless prior to that act,
he notified the superior officer in
writing of the illegality of the
payment, application or disposition.
Brainteaser
What is the liability of the officer

directing any illegal payment or
disposition of the funds or
property? How about the
accountable officer who fails to
serve the required notice?
The officer directing any illegal
payment or disposition of the
funds or property shall be
primarily liable for the loss, while
the accountable officer who fails
to serve the required notice shall
be secondarily liable. (Sec. 106,
PD 1445)
Loss of Government Property
Circumstances:
 Occurred while the property is in transit,
or
 Caused by fire, theft or other casualty,
or force majeure
Relief from Accountability
Immediately notify the

auditor within 30 days of the
occurrence of the loss; Auditor
submit an application for
relief, supported by required
documents.
Accountable
Persons
Supporting Documents
 Affidavit executed by  Efforts put forth to recover
the AO with the ff data:lost property
 Property lost and
valuation
 Provision/s made to
safeguard the property
 Actual date when the
absence was first noted
 Date when the loss was
 Manner of reported to the auditor
disappearance
and the police authorities
 Joint affidavit of 2
disinterested persons  Comments/recommendati
cognizant of the facts ons of the auditor as a
and circumstances result of his investigation
about the loss of the causes of the loss
 Final police report  Certificate from the
showing the steps taken police/fire chief, governor,
by the police authorities mayor or other competent
to recover the property authority as to the
lost destruction
 Comments/recommenda
tions of the agency head
 Inspection report
 Copy of the PAR/ICS
on the extent of
damage on the  Certificate by
insured property veterinarian as to
 Evidence of the cause of death with
immediate issuance of description of the
the notice of loss of animal
accountable forms
Power to grant relief is vested upon
COA
Sec. 73, PD 1445
Immediately notify the
auditor within 30 days of the
occurrence of the loss; Auditor
submit an application for
relief, supported by required
documents.
Failure to comply with the
requirement no relief from
liability shall be allowed Accountable
Persons
Inventory-Taking
an indispensable procedure for checking the
integrity of property custodianship. The physical
stock – taking of equipment and supplies serves
as basis for preparing accounting reports. At the
end of each quarter, the Accounting and the
Supply/Property Unit should reconcile their
records.
Physical inventory of equipment must be

conducted at least once a year, while supplies and
materials in stock should be inventoried at least
every six months as of June 30 and Dec 31 of
each year.
Procedures in Inventory-Taking
Planning the inventory-taking – duly approved
written guidelines including the dates
Creation of inventory committee – composed of
two or more employees including the
supply/property officer
Actual physical inventory-taking – the name of
inventory item, code number, location, the item
count or weight or measurement is written on the
Inventory Sheet then record/post in the Inventory
Summary Sheets.
Points to be considered during actual count:
Withdrawal from and addition to inventory while
the count is on-going.
All discrepancies between physical and book
inventories must be investigated and cleared
immediately.
Proper cut-off must be determined
Witnessing the Inventory-Taking
The representative of the COA Auditor shall

witness the physical inventory-taking
conducted by the inventory committee. He
should observe the actual process in order
to assure himself of the fairness of the
presentation of the financial statements.
Reconciliation of Property and Accounting
Records
 The inventory committee shall reconcile
the results of the count with the property
and accounting records
NEED FOR EFFECTIVE REPAIR
AND MAINTENANCE PROGRAM
 for the purpose of attaining

and/or extending the established
standard economical and useful
life of an equipment/property
and serves as a sound basis for
scheduling its replacement.
Maintenance
the routine and periodic

upkeeping function of
preserving the productive
ability or capacity of the
property, plant and
equipment.
Any Questions?

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CUSTODIANSHIP

• refers to the guardianship of

• includes receipt of supplies,

• also includes accountability,

• a person’s obligation to carry out

• holding people answerable or

• any officer or employee of the

• The acceptance of the assigned

• State of being answerable for the

• obligation that arises as a

• obligation which a person is

• for all losses, damage or

• money value in case of improper or

• the amount of care and

• failure to exercise the degree of

• failure to take the necessary

Is the accountable officer

What is the liability of the officer

Immediately notify the

Physical inventory of equipment must be

The representative of the COA Auditor shall

 for the purpose of attaining

the routine and periodic

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