Revised Guidelines and Procedures in the Disposal of PNP PPE and Disposition of the Income Derived Therefrom

February 21, 2017

PNP MEMORANDUM CIRCULAR NO. 2017-017

REVISED GUIDELINES AND PROCEDURES IN THE DISPOSAL OF PHILIPPINE NATIONAL POLICE PROPERTY, PLANT AND EQUIPMENT (PPE) AND THE DISPOSITION OF THE INCOME DERIVED THEREFROM

1. REFERENCES:

a. NHQ Disposal Committee Resolution No. 2010-01 dated July 5, 2010 entitled: "Supplement to PNP Memorandum Circular Number 2009-009 entitled Revised Guidelines and Procedures in the Disposal of the Philippine National Police Property and Equipment (PE) and the Disposition of the Income Derived Therefrom"; HTcADC

b. Memorandum Circular No. 2009-009 dated June 09, 2009 entitled: "Revised Guidelines and Procedures in the Disposal of the Philippine National Police Property and Equipment (PE) and the Disposition of the Income Derived Therefrom";

c. COA Circular No. 89-296 entitled: "Audit Guidelines on the Divestment or Disposal of Property and Other Assets of National Government Agencies and Instrumentalities, Local Government Units and Government-Owned or Controlled Corporations and their Subsidiaries" dated January 27, 1989;

d. COA-PTTAF Manual on Disposal of Government Property;

e. COA Circular No. 2009-002 dated May 18, 2009 entitled: "Reinstituting Selective Pre-Audit on Government Transactions" effective on July 1, 2009;

f. Presidential Decree No. 1911 entitled: "Authorizing the Disposal of Unclaimed, Recovered, and Impounded Carnapped Motor Vehicles Amending for the Purpose R.A. No. 6539 otherwise known as the Anti-Carnappping Act of 1972" dated March 23, 1984;

g. Title 7, Chapter 3 of Government Accounting and Auditing Manual, Volume 1, which pertains to "Disposal/Divestment of Property";

h. General Orders No. DPL 08-15 dated October 7, 2008 "Restructuring of Unit";

i. PNPLSS General Orders No. 41 dated November 7, 2008 "Creation of Additional Functional Division";

j. Executive Order No. 309 "Reconstituting the Disposal Committee created under E.O. No. 285" dated March 8, 1996;

k. National Budget Circular No. 425 "Manual on Disposal of Government Property" dated January 28, 1992; and

l. Government Accounting Manual (GAM) for National Government Agencies (NGAs).

2. PURPOSE:

This Memorandum Circular (MC) prescribes the policies and procedures in the reporting, turn-in, and disposal of PNP property, plant and equipment (PPE) whether Republic or Non-Republic, immovable or movable for being unserviceable, obsolete, abandoned or considered excess and the disposition of the proceeds thereof to avoid further deterioration of PPE, clear storage space, and generate greater benefit to the PNP through the possible income that may be derived therefrom.

3. DEFINITION OF TERMS:

a. Abandoned Properties — movable PPE in the possession of the PNP without known owners or claimants; aScITE

b. Beyond Economical Repair (BER) — when the repair cost is more than 30% of its fair market value, the property is no longer economically repairable. This is pursuant to Commission on Audit Circular No. 85-55A dated September 8, 1985 and National Budget Circular No. 425 dated January 28, 1992;

c. Cannibalization — the process of removing serviceable parts or accessories from a functioning piece of equipment making it unusable for its intended purpose or function;

d. Disposal — covers the condemnation, transfer to other agencies, barter, exchange or property, donation to institutions/associations, sale by public bidding or negotiation of unserviceable PNP PPE which have been inventoried, inspected, and appraised as disposable by the Disposal Committee;

e. Disposal Warehouse/Yard — a place within any PNP unit where the disposable articles/properties are stored. The following are the authorized Disposal Warehouse/Yard of the PNP: Logistics Support Service (LSS) Disposal Warehouse/Yard, Police Regional Office (PRO) Disposal Yard, Highway Patrol Group (HPG) Disposal Yard, Maritime Group (MG) Disposal Yard and Special Action Force (SAF) Disposal Yard;

f. Excess Properties — serviceable PPE in the possession of any unit of the PNP which are in excess of the quantity required or authorized for retention, and cannot be utilized as substitute properties to satisfy the operational requirements of the unit;

g. Forfeited Properties — PPE acquired by summary process or by order of the court pursuant to applicable laws, rules and regulations;

h. Non-Republic Properties — PPE or supplies purchased from funds other than appropriated or reimbursable funds. These include Military Acquired Property (MAP) and other grant and/or aid material, properties found in station (those acquired from donation, confiscation/seizure/forfeiture or procurement),captured enemy material, reclaimed properties (those reclaimed or recovered from condemned or unserviceable properties) and salvaged properties;

i. Obsolete Properties — PPE which have lost its efficacy either due to technical advancement, change of procedures, reorganization of the office or completion of project;

j. Property, Plant and Equipment (PPE) — are assets of the PNP that are acquired in the course of operations are considered long-term in nature, and possess physical substance. (i.e.,building, motor vehicle, firearms, ammunition, office equipment, etc.);

k. Reclamation — restoration of materials found in the waste stream to the beneficial use which may be for purposes other than the original use;

l. Republic Properties — PPE or supplies purchased from appropriated funds or reimbursable funds of the PNP; HEITAD

m. Salvaged Properties — PPE that are unserviceable and declared beyond economical repair by reason of severe or total damage, destruction and lost components/parts due to uncontrolled cannibalization;

n. Serviceable Properties — PPE in serviceable condition which are in the possession of a unit of the PNP. Serviceable properties include those properties authorized in the Table of Equipment and Allowance (TEA) that are put to use by the agency and other PPE that are still in good condition but are no longer put to use due to excess or obsolescence; and

o. Unserviceable Properties — refer to unserviceable and/or no longer needed PPE that cannot be used or placed in service due to fair wear and tear or obsolescence.

4. CLASSIFICATION OF DISPOSABLE PPE:

a. Excess properties remaining after redistribution;

b. Obsolete properties;

c. Salvaged properties;

d. Forfeited properties;

e. Abandoned properties;

f. Unserviceable properties; and

g. Beyond Economical Repair.

5. POLICIES:

a. Disposal of PPE with salvage value shall be undertaken only at the level of the National Headquarters (NHQ),Police Regional Offices (PROs),Highway Patrol Group (HPG),Maritime Group (MG),and Special Action Force (SAF) through their respective Disposal Committees. Any disposable property with salvage value of lower units or offices of NHQ, PROs, HPG, MG, and SAF shall be turned in at the appropriate disposal warehouse/yard as defined in para 3e. All Disposal Committees shall ensure that only controlled reclamation/cannibalization will be undertaken on the disposable PPE;

b. Upon approval of the Director of the concerned National Administrative Support Unit (NASU) or National Operational Support Units (NOSUs),all disposable PPE of NASU/NOSUs, which are found in PROs shall be turned in to the said PRO for proper disposal proceedings;

c. Pursuant to existing Auditing and Accounting Procedures, the periodic submission of Report of BER properties shall be on a quarterly basis. However, turn-in of disposable PPE shall be quarterly or sooner;

d. All salvaged properties recovered by the PNP in any clearing or recovery operations of sunken vessels and abandoned equipment, etc.,shall be considered abandoned properties, subject to private claims. When no person filed a claim for the recovery of the same after the lapse of the six months from the date of the last publication, said motor vehicles may be sold by the PNP public auction; ATICcS

e. Items or supplies in stock which have no recorded demands for at least two years at the Logistics Support Service (LSS) Warehouse or for at least one year at other PNP Supply Units shall be declared and reported as excess or obsolete properties. All declared excess or obsolete properties shall be turned in to their respective disposal warehouse/yard and redistributed to other units that may need the items before disposal action may be undertaken. Physical inspection and redistribution of excess or obsolete properties shall be effected at the authorized disposal warehouse/yard;

f. Copies of the LSS/PNP Supply Units excess property list shall be furnished to all concerned units of the PNP with the following forms: 1) Property Acknowledgement Receipt (PAR) 2) Inventory Custodian Slip (ICS) 3) Requisition and Issue Slip (RIS) to be accomplished depending on the value and classification of the goods to be transferred. Within a period of one year from date of distribution of the excess PPE, disposal proceedings shall be initiated on the undistributed excess items;

g. All forfeited and abandoned properties in the possession of any PNP unit or office shall be turned in to the respective disposal warehouse/yard. Reclamation/cannibalization of said properties is not allowed unless with prior recommendation from the SAO concerned and approval of the Regional Director (PRO) and The Director for Logistics (NHQ);

h. All disposal proceedings shall be in a manner deemed advantageous to the PNP and in accordance with the provisions of Chapter 3, Sec 501 — m 510, Volume 1 of the Government Accounting and Auditing Manual (GAAM), Government Accounting Manual (GAM) for National Government Agencies (NGAS) and PD 1911;

i. Award of disposal shall be made only for amounts not less than the final appraised values indicated by the Disposal Committee for the disposable properties. All recommendation for disposal shall be subject to the final approval of the Disposal Committee;

j. The proceeds derived from the disposal of PPE through sale shall be directly remitted to the Collecting Officer of the Finance Service (FS),who shall issue the corresponding Official Receipt for the property;

k. Disposal of Military Acquired Property (MAP),the ownership of which has not yet been fully vested to the PNP, shall be conducted in a manner prescribed in the Memorandum of Agreement (MOA) between the Armed Forces of the Philippines (AFP) and Philippine National Police (PNP);

l. Disposal of PNP buildings shall be determined by the Directorate for Logistics (DL) upon recommendation/assessment of the Engineering Service (ES) and in conformity with existing regulations/manual. This is usually undertaken through dismantling/destruction to make way for planned new facilities; and TIADCc

m. The NHQ/PRO Disposal Committees may create a Sub-Disposal Committee/Secretariat/TWG in their respective jurisdictions that will conduct the initial evaluation and address all preparatory concerns for the disposal of particular property, i.e.,one each for vehicles, firearms, office equipment, land and/or buildings, and other disposable properties. The creation of Sub-Committee/Secretariat/TWG will ensure that the NHQ/PRO Disposal Committees shall not be overburdened, thereby promoting efficiency and development of specialization.

6. COMPOSITION OF THE PNP DISPOSAL COMMITTEE AND SECRETARIAT

a. NATIONAL HEADQUARTERS (NHQ) DISPOSAL COMMITTEE

1.	Director for Logistics	—	Chairman
2.	Director for Comptrollership	—	Vice Chairman
3.	Director, Logistics Support Service	—	Member
4.	Director, Legal Service	—	Member
5.	Chief Accountant, PNP	—	Member
6.	Chief, Management Division, DC	—	Member
7.	Chief, SAMD, LSS	—	Member
8.	COA Representative	—	Witness

b. POLICE REGIONAL OFFICE (PRO) DISPOSAL COMMITTEE

1.	Deputy Regional Director for Administration	—	Chairman
2.	Chief, Regional Logistics Division	—	Vice Chairman
3.	Chief, Regional Comptrollership Division	—	Member
4.	Chief, Regional Legal Service	—	Member
5.	Chief, Regional Engineering Office	—	Member
6.	Chief, Regional Accounting Office	—	Member
7.	Regional Supply Accountable Officer	—	Member
8.	Regional COA Representative	—	Witness

c. HIGHWAY PATROL GROUP, MARITIME GROUP AND SPECIAL ACTION FORCE DISPOSAL

1.	Deputy Director	—	Chairman
2.	Logistics Officer	—	Vice Chairman
3.	Budget and Finance Officer	—	Member
4.	Legal Officer	—	Member
5.	Supply Accountable Officer	—	Member

d. NHQ DISPOSAL COMMITTEE SECRETARIAT

1.	Chief, SMD, DL	—	Resource Person
2.	Chief, PDMD, LSS	—	Head Secretariat
3.	Asst. Chief, PDMD, LSS	—	Asst. Head Secretariat
4.	Chief, RUS, ES	—	Member
5.	Asst. Chief, SSDD, LSS	—	Member
6.	Chief, Logistics Officer, CES	—	Member
7.	Servicing Legal Officer to LSS	—	Member
8.	Asst. Chief, SAMD, LSS	—	Member
9.	Chief, FAS, SMD, DL	—	Member
10.	Chief, MAMS, SMD, DL	—	Member
11.	Chief, GSS, SMD, DL	—	Member
12.	Chief, IMS, LPPD, DL	—	Member
13.	Chief, Storage Branch, FEO	—	Member
14.	Chief, Carnapped Vehicles Impounding Area, HPG	—	Member
15.	Chief, ICIS, DC	—	Member

Representatives of offices exercising regulatory functions over the PPE for disposal shall be made members of the Disposal Committee Secretariat on a need basis.

e. PROPOSAL COMMITTEE SECRETARIAT

1.	Assistant Chief, Regional Logistics Division	—	Head
2.	Assistant Chief, Regional Comptrollership Div	—	Asst. Head
3.	Chief, Regional Direct Support Unit	—	Member
4.	Regional Legal Service Representative	—	Member
5.	Regional Supply Accountable Officer Rep	—	Member

f. HPG, MG AND SAF DISPOSAL COMMITTEE SECRETARIAT

1.	Chief, Direct Support Section	—	Head
2.	Assistant Chief, Procurement Division	—	Asst. Head
3.	Assistant Chief, Supply Accountable Officer	—	Member

7. PROCEDURES:

a. PNP Unit/end-user shall submit the following documentary requirements to the Disposal Committee Secretariat:

1) Endorsement Memorandum;

2) Property Turn-in Slip (PTIS); AIDSTE

3) Inventory and Inspection Report of Unserviceable Property (IIRUP);

4) Waste Material Report (WMR);

5) Pictures; and

6) Technical Inspection Report (TIR) for vehicles for approval of D, LSS for NHQ, PD/RD for PRO's.

b. The PNP NHQ, PRO, HPG, MG, and SAF Disposal Committee shall create a Disposal Committee Secretariat that will manage, monitor, and compile all the data/details of PNP properties for disposal;

c. The PNP NHQ, PRO, HPG, MG, and SAF Disposal Committee shall identify disposable items in their respective jurisdiction; conduct technical inspection, classification, and appraisal of every item or property earmarked for disposal and, thereafter, dispose the disposable properties according to the methods prescribed in this MC;

d. Pursuant to Commission on Audit Circular No. 89-296 dated January 27, 1989 and Circular No. 2009-002 dated May 18, 2009, the NHQ, PRO, HPG, MG and SAF Disposal Committee must first submit the required documents for disposal to the COA and C, PNP for approval prior to the conduct of bidding for disposal;

e. The Supply/Property Office of NASUs/NOSUs/PROs/HPG, MG, and SAF shall accomplish the pertinent portion of the Inventory and Inspection Report of Unserviceable Property (IIRUP),Waste Material Report (WMR),Property Transfer Receipt (PTR),and Property Turn-in Slip (PTIS),whichever is applicable;

f. Submit to the Accounting Division the original copy of the IIRUP, copy 2 to the Supply and/or Property Custodian and copy 3 to the COA, TSO for inspection of PPE that requires evaluation to serve as basis for the dropping of the disposed items from the books of accounts for timely recording of the disposable property; and

g. The NHQ/PRO/HPG, MG, and SAF Disposal Committee shall submit a report to the C, PNP within five days from the completion of the disposal proceeding with all the relevant documents for the dropping of said properties from the Accounting Books of Accounts.

8. METHODS OF DISPOSAL:

The following are the authorized methods/modes of disposal:

a. Sale through public bidding shall be the primary method of disposal of PNP properties. Should this mode be unsuccessful, the Disposal Committee may dispose the properties in a manner most advantageous to the PNP.

b. Sale through negotiation — This mode of disposal may be resorted to only when there is failure of two public auctions due to the following instances:

1) The amount of bid received is below the approved floor price; and AaCTcI

2) The bidder has been disqualified for an award of contract.

c. The NHQ and PRO, HPG, MG, and SAF Disposal Committees may barter/trade-in disposable PNP properties with properties of other government agencies, provided it is for the best interest of the PNP.

d. Transfer without cost of excess/surplus PNP properties to other government agencies may be made upon the request of the office needing the properties and with prior approval by the C, PNP. Since the transfer will involve inter-government agency transfer, the accomplishment of Property Transfer Report (PTR) shall be mandatory.

e. Donation of excess/surplus PNP properties to other government agencies shall only be done upon approval of the C, PNP. The following requirements shall be incorporated in the request of the needing agency:

1) Brief statement of the agency activities;

2) General information of the intended use of the property; and

3) Statement that the property shall not be resold or used other than the intended purpose indicated.

f. Upon recommendation of the NHQ/PRO/HPG, MG and SAF Disposal Committee, after inspection of the COA and approval of the C, PNP, destruction of the Disposable PPE may be allowed provided that the manner of disposal shall not be detrimental or dangerous to public health or safety or shall not cause infringement on the rights of other persons or upon government agreements. Provided further that the following conditions are satisfied:

1) The property has no commercial value (valueless);

2) The estimated cost for the handling and destruction including the cost to sell the scrap materials would exceed the estimated proceeds from its sale; and

3) Other methods of disposal are not economically feasible.

g. Destruction shall also be resorted to if it is unsalable and it may pose hazard to the public if not destroyed.

h. For the disposal of PNP firearms, disposal shall be determined by the Directorate for Logistics (DL) upon recommendation/assessment of the Firearms Disposal Technical Committee and in conformity with existing laws and regulations.

i. The disposal of items with cultural value, technology properties and those covered with intellectual property rights shall be subject to other requirements as may be required by applicable laws. EcTCAD

9. UTILIZATION OF PROCEEDS OF DISPOSAL:

a. The disposition of proceeds for the disposal of PNP disposable properties shall be managed at the PNP NHQ/PROs/HPG, MG and SAF. All proceeds shall be directly remitted to the respective Finance Service (FS) Office of the contracting PNP office to be deposited to the PNP Trust Receipt account.

b. All proceeds from properties sold shall be deposited with the Authorized Government Depository Bank (AGDB) for the account of the agency.

c. In cases where payment for the sale of disposable property is made in the form of supplies or in kind, same shall be witnessed by the Disposal Committee for the proper recording in the property books of the PNP.

d. The basis for determining the quantity of supplies to be delivered as payment or barter for properties sold through bidding or negotiation shall be the bid or negotiated price equated to the fair market value of the supplies bartered.

10. ACCOUNTING AND AUDITING OF FUNDS AND PROPERTIES:

a. Accounting — The accounting of properties and funds relative to the disposal of disposable properties shall be done in accordance with this MC while that for the disposal of Military Acquired Property (MAP) shall be done in accordance with the Memorandum of Agreement (MOA) between the AFP and the PNP.

b. Auditing — The auditing of accounts and transactions relative to the disposal of disposable properties shall be in accordance with applicable laws and regulations. The Internal Auditor, PNP or representatives shall conduct audit of accounts and transactions relative to the disposal of all properties.

c. Dropping of property accountabilities shall be in accordance with the provisions of the Government Accounting Manual (GAM) for National Government Agencies (NGAS).

d. Nothing in this MC shall preclude the intervention of independent auditors of the Commission on Audit in the disposal of properties, in the dropping of property accountability, and the auditing of disbursement or the proceeds acquired thereof.

11. RESPONSIBILITIES:

a. The Director for Logistics (TDL)

1) Designated as Chairman of the NHQ Disposal Committee; and

2) Primarily responsible in the implementation of this MC.

b. The Director for Comptrollership (TDC)

1) Designated as Vice Chairman of the NHQ Disposal Committee;

2) Cause the dropping from the PNP Book of Accounts all properties disposed by the Disposal Committees; and HSAcaE

3) Provide funds for the implementation of this MC.

c. NHQ Disposal Committee

1) Cause the conduct of inventory and inspection of PNP supplies and properties for disposal stored in authorized PNP disposal warehouse/yards and, real estates/buildings in PNP premises;

2) Subject to COA appraisal and review, set the final appraised value for all disposable properties taking into consideration obsolescence, market demand, physical condition, and result of previous biddings for similar properties;

3) Ensure that the disposal/award of disposable properties are made consistent with existing laws, rules and regulations. Disposal shall be on "as is, where is" basis; and

4) Submit list of all disposed properties to the C, PNP (Attn: Accounting, DC) and ensure that said properties are properly dropped from the accountability of concerned Supply Accountable Officer.

d. NHQ Disposal Committee Secretariat

1) Responsible for compilation, documentation, and recording of all transactions involving supplies, material, and equipment belonging to the PNP as regards to disposal;

2) Maintain an updated stock record card, equipment ledger cards, and an official registry book of all supplies, materiel, and equipment for disposal;

3) Coordinate with other supply activity units pertaining to disposal of materiel and equipment;

4) Prepare pertinent papers for the disposal of unserviceable equipment and material and assist the Disposal Committee in the conduct of disposal activity;

5) Conduct periodic inventory and inspection of PNP supplies and properties for disposal stored in units and authorized PNP disposal warehouse/yard and, real estate/buildings in PNP premises for further action of the Disposal Committee;

6) Prepare the logistical reports to be submitted by the Disposal Committee to the C, PNP pertaining to the supplies and equipment for disposal;

7) Implement the directive regarding the disposal of supplies and equipment upon orders of the Disposal Committee; and

8) Perform other duties and functions as maybe directed by the Chairman, Disposal Committee and higher authorities. HESIcT

e. Regional Director, Police Regional Office

1) Organize and operationalize the PRO Disposal Committee;

2) Issue implementing guidelines for the proper implementation of this MC at the PRO;

3) Ensure completeness of disposal requirements for endorsement to C, PNP for approval as the Head of the Disposing Entity (HODE) prior to the conduct of public bidding; and

4) Submit After Activity Report to the C, PNP relative to the public bidding of all disposed properties.

f. Police Regional Office Disposal Committee

1) Responsible for the conduct of inventory and inspection of PNP supplies and properties for disposal stored in authorized PNP disposal warehouse/yards and, real estate/buildings in PNP premises;

2) Set the final appraised value for all disposable properties taking into consideration obsolescence, market demand, physical condition, and result of previous biddings for similar properties subject to COA appraisal and review;

3) Ensure that the disposal/award of disposable properties are made consistent with existing PNP rules and regulations. Disposal shall be on "as is, where is" basis;

4) Secure list of excess supplies and other disposable properties of the PRO and submit the same to RD;

5) Submit quarterly report of excess and disposable items to the DL;

6) Guarantee maximum protection of items at the disposal yard from further deterioration and pilferage;

7) Ensure that proceeds from disposal proceeding are remitted to the Regional Finance Service Office (RFSO);and

8) Ensure that properties disposed are properly dropped from the accountability of the Supply Accountable Officer (SAO) and PNP Book of Accounts.

g. PRO Disposal Committee Secretariat

1) Manage, monitor and compile all the data/details of PNP properties in the Region which are subject for disposal;

2) Prepare documentation and assist the Disposal Committee in the disposal activities; caITAC

3) Responsible in the maintenance and management of records with regard to disposal;

4) Submit report to the PRO Disposal Committee as regards the conduct of disposal; and

5) Perform other duties and functions as maybe directed by the Chairman, PRO disposal Committee.

h. Highway Patrol Group/Maritime Group/Special Action Force Disposal Committee

1) Responsible for the conduct of inventory and inspection of PNP supplies and properties for disposal stored in authorized HPG/MG/SAF disposal warehouse/yards and, real estate/buildings in HPG/MG/SAF premises;

2) Set the final appraised value for all disposable properties taking into consideration obsolescence, market demand, physical condition, and result of previous biddings for similar properties subject to COA appraisal and review;

3) Ensure that the disposal/award of disposable properties are made consistent with existing PNP rules and regulations. Disposal shall be on "as is, where is" basis;

4) Secure list of excess supplies and other disposable properties of their respective offices and submit the same to their Directors;

5) Submit quarterly report of excess and disposable items to the DL;

6) Guarantee maximum protection of items at the disposal yard from further deterioration and pilferage;

7) Ensure that proceeds from disposal proceeding are remitted to the Finance Service Office (FSO);and

8) Ensure that properties disposed are properly dropped from the accountability of the Supply Accountable Officer (SAO) and PNP Book of Accounts.

i. HPG/MG/SAF Disposal Committee Secretariat

1) Manage, monitor, and compile all the data/details of HPG/MG/SAF properties in their respective offices which are subject for disposal;

2) Prepare documentation and assist the Disposal Committee in the disposal activities;

3) Responsible in the maintenance and management of records with regard to disposal;

4) Submit report to the DL, Accounting and C, PNP as regards to the conduct of disposal; and ICHDca

5) Perform other duties and functions as maybe directed by the Chairman, Disposal Committee.

j. Supply Accountable Officer

1) Conduct quarterly periodic inventory and inspection of unserviceable/disposable properties and to submit thereon the Inventory and Inspection Report (IIR) to the PNP Disposal Committee (Attn: Disposal Secretariat);

2) Submit an updated Inventory List of all Properties Found-in-Station to include their sources, whereabouts and condition/remarks quarterly as changes occur (thru a report of changes);

3) Conduct technical inspection and classification of disposable properties at respective unit;

4) Submit to the Regional Director, (Attn: C, RLRDD),quarterly report on excess and disposable properties in the prescribed format; and

5) Recommends to the Regional Director, through C, RLRDD, properties which are needed to be disposed.

k. COA Representative

Per COA Circular No. 95-006 dated May 8, 1995, COA Representative shall serve as witness/observer to the disposal of unserviceable properties and review in-house appraisal in aid of post-audit of the transactions, including disbursements of the proceeds.

12. REQUIRED REPORT/FORMS:

a. Quarterly Report on Excess and Disposable Properties — This report shall be rendered by the Regional Directors having responsibility over authorized PNP Disposal warehouse/Yards. The report shall be categorized by technical service classification, consolidated, and finally submitted to the C, PNP (Attn: DL) not later than the 15th day of the month immediately after the quarter.

b. Inventory and Inspection Report of Unserviceable Properties (IIRUP) — A report on the semi-expendable materials and equipment and non-expendable supplies which shall be accompanied by the following:

1) Individual Survey Report duly certified by the supply officer and head of unit/agency;

2) Individual photographs of properties taken from two different views; TCAScE

3) List of missing spare parts duly certified by the supply office/head of unit/agency;

4) Stencils of chassis and engine numbers of motor vehicles; and

5) Stencils of serial numbers, make, type and caliber as regard to firearms (FAs).

c. Waste Material Report (WMR) — A report for expendable materials, supplies and consumables including spare parts, empty containers and remnants from destroyed or damaged fixed assets. This must be accompanied by current onsite photograph taken from two different views.

d. Property Transfer Report (PTR) — this form shall be used when there are properties to be transferred from one accountable officer/agency/fund cluster to another accountable officer/agency/fund cluster.

e. Property Turn-In Slip (PTIS) — this form shall be used for the turn-in of property from end user/accountable officer to receiving unit/accountable officer.

f. Inventory Custodian Slip (ICS) — a form that shall be signed and dated by the designated Property Officer on the "Received from" portion and the recipient or user of the inventory shall acknowledge receipt by signing on the "Received by" portion.

g. Requisition and Issue Slip (RIS) — a form used to request supplies and materials that are carried on stock.

13. FLOW CHARTS FOR PROPERTY, PLANT AND EQUIPMENT (PPE) FOR DISPOSAL (see Annexes)

1. Procedures for the disposal of Mobility — ANNEX "A"

2. Procedures for the disposal of Firearms — ANNEX "B"

3. Procedures for the disposal of Office Equipment — ANNEX "C"

4. Procedures for the Condemnation/Destruction of Building — ANNEX "D"

5. Procedures for the disposal of Other Disposable Properties — ANNEX "E"

14. PENALTY CLAUSE:

Any violation of this MC shall be investigated and, if warranted by evidence, appropriate criminal, civil, and administrative charges shall be filed against those who may be responsible thereof. cTDaEH

15. REPEALING CLAUSE:

Provisions of existing PNP issuances which are inconsistent with this MC, in whole or in part, are deemed repealed, set aside, amended or modified accordingly.

16. EFFECTIVITY:

This MC takes effect after 15 days from the filing of a copy hereof at the University of the Philippine Law Center in consonance with Sections 3 and 4, Chapter 2, Book VII, EO No. 292, otherwise known as the "Revised Administrative Code of 1987", as amended.

(SGD.) RONALD M. DELA ROSA

Police Director General

ANNEX A

ANNEX B

ANNEX C

ANNEX D

Other Disposable Properties

ANNEX E

Condemnation/Destruction of Buildings/Structure