Republic of the Philippines

Department of the Interior and Local Government

NATIONAL POLICE COMMISSION
NATIONAL HEADQUARTERS PHILIPPINE NATIONAL POLICE
OFFICE OF THE CHIEF, PNP
Camp Crame, Quezon City

MEMORANDUM CIRCULAR
NUMBER _______________

Implementing Guidelines on the Conduct of Virtual Inspection and Accounting

of PNP Properties, Plant and Equipment (PPE)

1. REFERENCES:
a. COA Circular No. 2022-004 dated May 31, 2022 re: Guidelines on the
Implementation of Section 23 of the General Provisions of Republic Act
No. 11639 also known as the General Appropriations Act (GAA) for Fiscal
Year 2022 relative to the increase in the capitalization threshold from
P15,000.00 to P50,000.00;
b. COA Circular No. 2021-006 dated September 6, 2021 re Guidelines on
the Use of Electronic Documents, Electronic Signatures, and Digital
Signatures in Government Transactions;
c. COA Circular No. 2020-006 dated January 31, 2020 re: Guidelines and
Procedures in the Conduct of Physical Count of Property, Plant and
Equipment (PPE), Recognition of PPE Items Found at Station, and
Disposition for Non-existing/Missing PPE Items for the One-Time
Cleansing of PPE Account balances of Government Agencies;
d. COA Circular No. 2020-001 dated January 8, 2020 re: Prescribing Volume
III-Revised Chart of Accounts (Updated 2019) to replace Volume III-The
Revised Chart of Accounts (Updated 2015) of the Government Accounting
Manual for national Government Agencies; and
e. NHQ-PNP Standard Operating Procedure No. 2010-01 dated January
2010 re: Annual Logistics Inspection and Physical Accounting of PNP
Properties;

2. RATIONALE:

This Memorandum Circular sets forth the policies, procedures and

responsibilities in the conduct of virtual inspection and accounting of PNP properties,
plant and equipment (PPE) as an alternative, or complementary method to the
standard physical inspection and accounting.

3. SITUATION:

The annual physical inspection and accounting has been an imperative tool in
monitoring the status of the PNP’s PPE and ascertaining the integrity of its report used

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as basis in programming for the additional acquisition activities of the agency.
However, the onset of COVID-19 pandemic put on hold face to face activities and
changed the landscape of service and business operations.
The PNP, being one of the essential service providers of the Government,
needs to ensure continuity of its operations amidst threat to health and safety of the
virus. This includes internal processes that ensure preservation and protection of
valuable PNP properties.
Thus, on May 14, 2020, the PNP has taken steps to take advantage in
utilizing available digital technology and address present challenges in the conduct of
inspection and accounting of PNP properties. The issuance of DL Memo Directive
addressed to all PNP offices for the conduct of virtual inspection of mobility, firepower,
and other equipment was intrepidly initiated to ensure proper accounting of PNP
properties, crucial to the command decision-making and police operations.
Virtual method is cost-efficient, timesaving and more convenient process
compared to the physical inspection method. However, the issues of unstable internet
connectivity in some regions and lack of computer equipment among others, make
this method limited and, to a few, unusable.

Nevertheless, virtual inspection and accounting provides great potential and

benefits. Thorough assessment and evaluation of the variables, internal and external
to the process, was conducted to identify issues and concerns, and corresponding
formulation of interventions to address it. Hence, the crafting of the policy is needed
to ensure the successful implementation of the virtual inspection and accounting of
PNP’s PPE.

4. PURPOSE:

This aims to provide the guidelines, procedures, and responsibilities in the

efficient conduct of virtual inventory of PNP properties of the PNP

5. DEFINITION OF TERMS:

a. Capitalization Threshold – refers to the monetary value at which an entity

elects to capitalize tangible assets that are used in operations and that
have initial useful lives extending beyond a single reporting time;

b. Equipment — all non-expendable supplies other than land, structure and

fixed facilities, having a useful life greater than one (1) year and a unit
value of more than one thousand five hundred pesos (Php1,500.00);

c. Expendable Supplies — those which are consumable or perishable in

nature which lose the identity when placed in or attached to a major item
or consumed by personnel;

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d. Hybrid Inspection – the use of the combined physical and virtual inspection
of the PNP properties which is complimentary (combining in such a way
as to enhance or make better);

e. Inspection - means the examination and accounting of properties by the

agency and must be conducted in the most economical and expeditious
manner consistent with the best interest of the government;

f. Inspection and accounting Team (IAT) – the group tasked to conduct the
activities identified in the pre, during and post stages of the inspection and
accounting activity;

g. Inventory — is an itemized list of supplies or properties on hand containing

the designation or description of each specific article with its valuation;

h. Logistics Data Information and Management System (LDIMS) – is a

customized web-based application purposely designed to establish a
unified and reliable inventory of all PNP equipment.

i. Non-Expendable Supplies — those which are durable in nature and when

used do not suffer any material or substantial change or alteration in size
and form;

j. Property Accountability - primary obligation imposed by laws and

regulations on the Supply Accountable Officer to keep formal records of
supplies;

k. Property, Plant, and Equipment (PPE) – are tangible items that are:
purchased, constructed, developed or otherwise acquired; held for use in
the production or supply goods or services or to produce program outputs;
for rental to others (other than investment property); for administrative
purposes; expected to be used more than one reporting period; and not
intended for resale in the ordinary course of inspection;

l. Physical Inventory - A procedure of conducting physical accounting of real

estate, facilities, and stock taking of supplies and equipment to check the
integrity of property custodianship;

m. Semi-expendable Property – tangible item which meet the definition and

recognition criteria of Property, Plant and Equipment (PPE), but below the
capitalization threshold of P50,000.00.

n. Supplies — expendable and non-expendable commodities, except real

estate, necessary to equip, maintain and operate the PNP;

o. Tangible Assets/Items – are identifiable non-monetary assets with

physical substance; and

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 p. Virtual Inspection – is a process that allows an expert to inspect a piece
of equipment or a site remotely through any device with internet
connection and can capture a photo.

6. GUIDELINES:

a. General Guidelines:
1) The conduct of virtual inspection and accounting of property aims to
reconcile the records submitted to DL by the different PNP units, for
inclusion in the PNP Logistics Data Information Management System
(LDIMS);

2) Virtual Inspection shall be used as an alternative method or in

combination (hybrid) with the physical method of inspection and
accounting of PPEs based on the discretion of the Inspecting and
Accounting Teams to ensure safety, economy and expeditious
conduct of the activities;

3) Inspection and accounting shall include all PPEs contained in the

property book of account, properties found at station, properties
covered by deed of donation, captured, confiscated, surrendered,
deposited, abandoned and forfeited (CCSDAF), under custody for
safekeeping or deposited as evidence in court proceedings;

4) Heads of Offices may conduct virtual inspection accounting anytime

should the situation warrants and depending on the availability of
stable internet connectivity to the area where the Office or Unit subject
of inspection and accounting is located. It shall render the necessary
report required based on existing COA Circulars and PNP MCs on the
conduct of inspection and accounting;

5) Heads of Offices shall ensure the availability of the basic requirements

used in the conduct of virtual inspection such as: computer equipment
or tablet with webcam capability, virtual meeting application
(preferably Zoom), and internet connectivity;

6) Composition of the Inspection Team during the physical inspection

and inventory shall also be adopted in the virtual method;

7) Head of Offices shall ensure the orientation of the Inspection and

Accounting Teams on the procedures in conducting virtual inspection
and accounting;

8) All PNP Units from the NHQ, PROs NSUs and PROs are directed to
conduct annual inventory of all their Unit’s properties, reports of which
shall be submitted to DL. (GAAM)

9) Heads of Offices shall be jointly liable with persons primarily

responsible to any loses of PNP property under the Doctrine of
Command Responsibility;

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 10) Personnel entrusted with the custody of PNP property shall be
deemed primarily accountable to said property; and

11) PROs shall formulate their respective implementing policies on the

inventory procedures on the properties peculiar to their units in
accordance with existing policies.

b. Specific Guidelines

1) RSUs, PPOs and other lower PNP units shall create their own
Inspection and Accounting Teams;

2) Inspection and Accounting Teams shall conduct virtual inspection and

accounting only to units with stable internet connection;

c. Responsibilities:

1) DL

a. Designated OPR for the implementation of the MC;

b. Plan the conduct of inspection and accounting activity to include

its schedule, corresponding budget and Inventory Team
composition (NHQ);

c. Directs all PNP Units to prepare and implement the conduct of

inspection and accounting of PPEs on the specified schedule;

d. Provides the NHQ Inspection and Accounting Team the

necessary requirements to efficiently and effectively conduct the
activity; and

e. Perform other tasks as directed.

2) Regional Directors, PROs

a. Responsible for the over-all supervision of inspection and

accounting of PNP PPEs in their respective AORs;

b. Provides respective Regional Inspection and Accounting Team

the necessary requirements to efficiently and effectively conduct
the activity; and

c. Perform other tasks as directed.

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3) Directors, NSUs

a. Responsible for the over-all supervision of inspection and

accounting of PNP PPEs in their respective units;

b. Provides respective NSU Inspection and Accounting Team the

necessary requirements to efficiently and effectively conduct the
activity; and

c. Perform other tasks as directed.

4) NHQ Accounting Team

a. NHQ Inspection and Accounting Team for PNP PPEs shall be

composed of the following:

DDL - Supervisor
Director, HSS - Team Leader
DC Representative - Asst Team Leader
LSS Representative - Member
SAO, PNP-Wide/C, SAMD, LSS - Member
COA Representative - Observer

b. Plan and ensure efficient inspection and accounting activities

aligned with the NHQ Directives;

c. Conduct inventory of all Units/Offices with stable internet

connectivity as basis for planning thru internet speed test
application;

d. Ensure availability of basic technical requirements for the conduct

of the virtual inspection and accounting, such as: stable internet
connectivity, virtual conference platform, and computer with
webcam;

e. Countercheck inspection and accounting reports of NSU for

discrepancies;

f. Submits After Inspection and Accounting Report and Rectified

Physical Count of PPE (RPCPPE) to DL, DC (Accounting
Division), LSS and COA; and

g. Submits After Inspection and Accounting Report and RPCPPE to

DL, LSS, DC (Accounting Division), and COA; and

h. Perform other tasks as directed.

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5) Regional Inspection and Accounting Team

a. The Regional Inspection and Accounting Team shall be

composed of the following:

Chief of Staff - Supervisor

Admin/Logistics Officer - Team Leader
BFO - Asst Team Leader
SAO - Member
RSPNCO - Member
DC Accounting - Member
COA Representative - Observer

b. Plan and ensure efficient inspection and accounting activities

aligned with the NHQ Directives;

c. Conduct inventory of all Units/Offices with stable internet

connectivity as basis for planning thru internet speed test
application;

d. Ensure availability of basic technical requirements for the conduct

of the virtual inspection and accounting, such as: stable internet
connectivity, virtual conference platform, and computer with
webcam;

e. Countercheck inspection and accounting reports of lower units for

discrepancies;

f. Submits After Inspection and Accounting Report and Rectified

Physical Count of PPE (RPCPPE) to DL, LSS, Regional
Comptrollership Division, Regional Accountant and Regional
COA; and

g. Submits After Inspection and Accounting Report and RPCPPE to

DL, LSS, DC (Accounting Division), and COA; and

h. Perform other tasks as directed.

6) NSU Inspection and Accounting Team

a. NSU Inspection and Accounting Team shall be composed of the

following:

Chief of Staff - Supervisor

Admin/Logistics Officer - Team Leader
BFO - Asst Team Leader
SAO - Member
RSPNCO - Member

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 DC Accounting - Member
COA Representative - Observer

b. Plan and ensure efficient inspection and accounting activities

aligned with the NHQ Directives;

c. Conduct inventory of Units/Offices with stable internet

connectivity as basis for planning thru internet speed test
application;

d. Ensure availability of basic technical requirements for the conduct

of the virtual inspection and accounting, such as: stable internet
connectivity, virtual conference platform, and computer with
webcam;

e. Submits After Inspection and Accounting Report and RPCPPE to

DL, LSS, DC (Accounting Division), and COA; and

f. Perform other tasks as may be directed.

7) Inspection and Accounting Teams

a. Conduct of virtual inspection and accounting of PPEs based on

planned schedule;

b. Properly inspect and account all PPEs whether acquired through

purchase or donation, including those constructed by
administration and found at station;

c. List observations and provide recommendation/s;

d. Conduct tagging of equipment and document virtual inspections

proceedings;

e. Accomplish COA required inventory forms and prepare After

Inspection and Accounting Activity Report and RPCPPE; and

f. Perform other tasks as may be directed.

7. PROCEDURES:

a. Procedures:

1) Pre-Inspection and Accounting Activities

a. Plan the itinerary of activities and identify the individual tasking,

documentary and logistical requirements and units for virtual
inspection and accounting;

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 b. Prepare documentary requirements such as latest inventory report,
required inventory forms, and virtual platforms and equipment to be
used in the activity;

c. Conduct pre-inspection and accounting virtual meeting with

concerned lower units for coordination, discuss itinerary and
requirements to ensure availability during the activity; and

d. Conduct virtual inspection and accounting test run 1- or 2-days

before the actual schedule of activity; and

e. Conduct Inspection and Accounting Team final meeting and

briefing prior the actual activity.

2) Inspection and Accounting Proper Activity

a. Set-up virtual inspection and accounting platform one (1) hour prior
actual schedule of activity;

b. Conduct virtual Courtesy Call to Head of Office prior the activity;

c. Conduct virtual entrance briefing;

d. Conduct inspection proper based on planned schedule and

requirements;

3) Post Inspection and Accounting Activity

a. Prepare Initial Report on Findings and Recommendations;

b. Conduct Exit Briefing and present result of inspection and

accounting activities (findings and recommendations);

c. Prepare After Inspection Report addressed to The Director for

Logistics to be submitted five (5) days after the conduct of
inspection;

d. Conduct post inspection and accounting meeting to check and

finalize Team's report; and

e. Submit consolidated Inspection and Accounting Report and

RPCPPE (PROs to DL, LSS, Regional Comptrollership Division,
Regional Accountant and Regional COA while NSUs to DL, LSS,
Accounting Division, DC), and COA)

8. REPEALING CLAUSE

All other directives or issuances contrary to this Memorandum Circular are

hereby amended or rescinded.

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 9. EFFECTIVITY

This MC shall take effect after fifteen (15) days from filing of a copy thereof at
the UP Law Center in consonance with Section 3, Chapter 2, Book VII of Executive
Order 292, otherwise known as "the Revised Administrative Code of 1987", as
amended.

RODOLFO AZURIN JR
Police Director General
Chief, PNP

Distribution:
All RDs, PROs 1-13, COR, ARMM, NCRPO
All Dirs, NSUs

Copy furnished:
Command Group
D-Staff

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