February 14, 2002

CIRCULAR
NUMBER 002-02

SUBJECT: PROCEDURES TO BE FOLLOWED IN REQUESTING FOR RELIEF

FROM PROPERTY ACCOUNTABILITY

1. REFERENCES:

a. DL Circular Nr 17 dated August 27, 1993, subject: Relief of Property

Accountability; (Tab “A”)

b. Sections 73 and 105 of PD 1445, known as the Government Auditing

Code; (Tab “B”).

c. COA Memo Nr 92-751, subject: Documentation of Petitions/Requests for

Relief of Property Accountability; (Tab “C”)

d. COA Memo Nr 93-820 dated August 20, 1993, Delegation of Authority to

COA Officials to decide on Requests for Relief from Property and /or Money
Accountability; (Tab “D”).

e. DL Letter Directive dated November 22, 1995, subject: Persecution of

PNP Personnel; (Tab “E”)

f. Article 217 of the Revised Penal Code: Malversation of Government

Property; (Tab ”F”).

g. Cost Valuation of PNP issued and Loaned Firearms (Tab “G”).

2. RATIONALE:

Property accountability is the obligation imposed by law, order or regulation on

an official or other person for keeping accurate properly record. The Chief of Office at
all levels shall be primarily responsible for PNP properties acknowledged within his
jurisdiction. While the person entrusted with, having custody of or in actual possession
of the PNP property by reason of his duties shall be accountable therefore and for the
safekeeping thereof. Moreover, such imposed primary and secondary responsibility on
the chief of office and his officer accountable, respectively, shall not prejudice their
liability to the government.

3. PURPOSE:

a. To instill the responsibility and accountability awareness to all personnel

entrusted with and/or had custody of PNP assets;
 b. To establish the actual logistical resources available in the normal
performance of PNP official functions;

c. To consolidate existing rules and regulations in order to arrive at a more

systematic implementation of this circular;

d. To monitor/update the actual status of PNP properties that have been

issued to subordinate units and members of the PNP organization;

e. To determine the extent of culpability of every unit/personnel who

deliberately or unintentionally misappropriate PNP property while under his/her custody.

f. To institute appropriate sanctions and penalties to prevent and control the

recurrence of losses and damages on PNP properties.

4. DEFINITION OF TERMS:

a. Chief of Office/Unit –refers to the Head of the Office/Unit designated by

the C, PNP or his duly authorized representative. For purposes of the circular, chief of
office further refers to the Regional Director (RD) for regional and allied office Provincial
Director (PD) for provincial and allied offices, Director, NSU for National Support Unit
and City Director (CD) for Chief of Office of City.

b. Property – Items purchase out of government funds, donated by

government and non-government institutions and all items acquired in any form
intended t augment routine PNP operations.

c. Supply Accountable/Responsible Personnel – Any PNP Uniformed and

Civilian Personnel” to include RSPCO/RSPNCO, being conscientious, able and willing
to discharge essential functions of a supply Accountable Officer and equipped with
proper training designed for property custodianship.

d. Bond – an insurance contract by which a bonding agency guarantees

payment of a specified sum of the payee in the event of a property loss caused by the
act of specified employee or by some contingency over which the supply accountable
personnel has no control.
e. Board of Survey – a group of PNP personnel organized and designated by
the Chief of Office to determine the extent of culpability of an individual who incurred
PNP property losses.

f. Subsidiary Liability – exist when the accountable officer is under the

control of his Chief of Office.

g. Joint Liability – exist when the accountable officer has the right to enlist
that the Chief of Office be joined as codefendant with him.

5. POLICIES:

a. Chief of Offices/Units are subsidiarily liable with the person/s primarily

accountable to any loss of government property under the doctrine of command
responsibility. Therefore, said Chief of Office/Unit having jurisdiction over the subject
property shall vigorously pursue the retrieval of the same. Should there be apparent
futility in the efforts to recover, filing of appropriate charges shall be initiated against the
erring PNP personnel for violation of Articles 217 of the Revised Penal Code and other
existing jurisprudence;
 b. Designated supply accountable/responsible personnel as contemplated by
law shall be bonded accordingly;(Section 101, PD 1445).

c. PNP Personnel Accountable for government property shall be liable for

the money value in case of loss, improper use or misapplication thereof, by himself or
by any person for whose acts he may be responsible. He shall likewise be liable 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; (Section 105, PD 1445).

d. When a loss of PNP property occurs while 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 COA Resident Auditor concerned,
and within thirty (30) days or such longer period as the Resident Auditor may in the
particular case allow, shall present his Request for Relief, with the available supporting
evidence and/or basic requirements as required hereof. Whenever warranted by 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 accounts; (Sec 73, PD 1445)

e. Supply Accountable/Responsible Personnel shall be designated according

to level of responsibility/accountability/such as PNP Wide, Central
Office/Regional/RMG/NSUs, Provincial/PMG and Police Stations:

f. Supply Accountable Officer/Responsible Supply Officer may be relieved

from property responsibility and accountability by means of the Inventory and inspection
Reports (Gen. Form #17 (A)) for equipment, and by means of Report of Waste Materials
(Gen Form #64 (A)) for supplies and materials under his custody and no longer needed
by the Unit or Office due to obsolescence or damaged due to fair, wear and tear and
declared to be unserviceable and beyond economical repair.

g. Appropriate adjustments on the book of accounts shall only be reflected

upon approval of the request for relief from property accountability or subsequent cash
settlements have been materialized.

h. Whenever a PNP personnel who incurred PNP property loss and intends
to settle such accountability in cash, the cost shall be based on the latest/updated cost
valuation or prevailing market price.

6. PROCEDURES:

a. Filing the Notice of Loss and Letter Request for Relief from Property
Accountability. The Supply Accountable Officer/Responsible Supply Officer (RSPCO)
having knowledge that a firearm was lost under his accountability and being jointly and
solidarity liable, or the person having actual custody of the subject list firearm and being
directly accountable, must file immediately the Notice of Loss to the COA Resident
Auditor concerned, and within 30 days file a Request for Relief from Property
Accountability together with the supporting evidences and/or basic requirements a
discussed in (e) hereof;

a.1. In case of delay in filing the aforesaid notice and request ,

satisfactory explanation or the reasons)for such delay should be submitted, after which
the reasons/explanations given should be verified or confirmed by the Auditor
concerned.

a.2. Likewise, if the incident has been reported to the N.B.I. and other
police units, a final Investigation Report (IR) shall also be submitted.
 a.3. When a PNP personnel, having custody of the firearm issued by
the Supply Accountable Officer (SAC) and/or Responsible Supply Officer
(RSPCO/RSPNCO) thru Memorandum Receipt (MR), absconds, dies or become
incapacitated in the performance of his/her duties, the SAO and/or RSPNCO/RSPNCO
should exert efforts to recover the firearm, and in case of loss, file immediately the
required notice and request for relief from property accountability with all evidence
supporting therein.

In the event that the SAO and/or RSPCO/RSPNCO absconded,

died or incapacitated, the Chief of Unit or Office concerned shall outright designate a
temporary custodian in the form of a Committee to take physical inventory of all
properties under his/her responsibility and accountability, duly witnessed by the
Resident Auditor concerned or his duly authorized representative. Likewise, a Board of
Survey shall immediately be convened to conduct investigation and evaluation on the
extent of loss or damaged of the property and the liability of the persons accountable
and covering therefore.

b. Authority to Create the Board of Survey – Upon receipt of the Notice of

Loss and Request for Relief from Property Accountability together with all the
supporting evidence/basic requirements, the Chief of Unit or Office shall immediately
create/convene the Board of Survey which shall be composed of the following officers at
the different levels of Police Offices/Units, to wit:

b.1. It is advisable that a PNP Survey Board shall be created to conduct

investigative, review and evaluate the Unit Survey Board Reports of NSUs, PROs and
PPOs if the amount of property/ies lost is/are more than P100,000.00 and above. The
Chief, PNP is the recommending official and the OCPNP shall indorse the results of
investigation and evaluation conducted by the PNP Survey Board with his
comments/recommendation to the following COA Officials for concurrence:

a. Assistant Commissioner for above P100,000.00 to

P200,000.00 worth of lost properties.

b. To the Honorable Chairman for above P200,000.00 to

P500,000.00 worth of lost properties and

c. To the Commission Proper for the above P500,000.00 worth

of lost properties, thru the Resident Auditor concerned.

b.2. The PNP Board of Survey shall be composed of the following:

a. Director for Logistics – Chairman;

b. Director for Comptrollership – Member

c. Director for Legal Service – Member

d. Supply Management Division (SMD, ODL) – Secretariat

e. Chief, Accounting Division, ODC - Secretariat

f. SAO-PNP Wide - Secretariat

b.3. Likewise, a Unit Survey Board shall be created in the levels of

National Support Units (NSUs), if the property/ies lost is/are within their respective
jurisdiction regardless of the amount and the same is/are recorded in the PNP-NHQ
Books of Accounts/Property Book.
 b.4. If the amount of lost property is above P50,000 to P100,000, the
Director for Logistics is the recommending official and he shall Indorse the results if
investigation and evaluation of the NSU Survey Board with his
comments/recommendation to the Director, National Government Audit Office 1,
Commission of Audit thru the Resident Auditor concerned. However, if the amount of
lost property is P 50,000 and below, the recommending official is the Director, NSUs
and he shall indorse directly the results with his comments/recommendation to the
Resident Auditor concerned for concurrence.

b.5. The Director, NSU shall also convene the Unit Survey Board to
conduct investigation and evaluation and he shall elevate the results thereof with his
comments/recommendation for review, provided the following:

a. If the lost property is above P50,000 to P100,00 to the

Director for Logistics;

b. If the lost property is more than P100,000 and above to the

Chief, PNP thru the Director for Logistics and Chairman,
PNP Survey Board.

c. The NSU Survey Board shall be composed of the following:

1. Logistics Officer – Chairman

2. Budget/Comptrollership Officer – Member

3. Legal Officer – Member

4. Unit SAO – Member

b.6. If the property lost is recorded in the Police Regional Office (PRO)
Books of Accounts/Property Book and the amount is above P50,000 to P100,000, the
Police Regional Director is the recommending official and he shall indorse the results of
investigation and evaluation conduct by the PRO Survey Board with his
comments/recommendation to the Regional Director, Commission on Audit, thru the
PRO Resident Auditor concerned. The PRO Survey Board shall be composed of the
following:

a. C, regional Logistics Division – Chairman

b. C, Regional Legal Service – Member

c. C, Regional Comptrollership Division – Member

d. Accountant – Member

e. Regional SAO – Member

b.7. Likewise, if the property lost is within the jurisdiction of PRO and it
is worth P50,000 and below, the Police Regional Director is also the recommending
official and he shall indorse the results of investigation and evaluation conducted by the
PRO Survey Board with his comments/recommendation to the PRO Resident Auditor
concerned. However, if the property lost is worth more than P100,000 and above, the
Police Regional Director shall elevate the results thereof with his
comments/recommendation to the Chief, PNP thru the Director for Logistics and
Chairman, PNP Survey Board for review.
 b.8. For lost properties worth P60,000 and below, which were issued by
PRO SAO to the respective Provinces, Cities or Municipalities Police Offices, the
Director, Police Provincial Office (PPO); shall convene the Police Provincial Office
(PPO) Survey Board to conduct investigation and evaluation and he shall indorse the
results with his comments/recommendation to the PRO Resident Auditor concerned.

b.9. The Director, PPO/CPO shall also convene the PPO/CPO Survey
Board to conduct investigation and evaluation and he shall elevate the results thereof
with his comments/recommendation of review, provided the following: if the lost property
is worth above P50,000 to P 100,000, to the Police Regional Director thru the
Chairman, PRO Survey Board; if the lost property is worth more than P100,000 and
above, to the Chief, PNP thru the Police Regional Director (Attn: Director for Logistics
and Chairman, PNP Survey Board). The PPO Survey Board shall be composed of the
following: PPO Budget/Finance Officer, PPO Legal Officer and PPO Responsible
Supply Officer as members.

b.10. The COA Resident Auditor or his authorized representative may or

may not act as observer during the conduct of investigation and evaluation of the
Survey Boards.

c. Authority. The delegation of authority shall be decentralized to

correspond to the above discussion, as follows:

Amount of Lost Property Recommending Approving COA Official

Official
P50,000.00 and below RD/Director, NSU/PD PNP Resident Auditor
P59,000.01 to 100,000.00 DL/RD Dir, NGAO1, RD
P100,000.01 to C, PNP Assistant Commissioner,
P200,000.00 COA
P200,000.01 to C, PNP Chairman, COA
P500,000.00
P500,000.01 and above C, PNP Commission Proper

d. 30-day Reglementary Period. Immediately upon receipt of the Notice

of Loss, the Chief. Director of Office or Unit shall automatically convene the Unit Survey
Board to conduct investigation and evaluation on the facts and circumstances about the
loss. In 20 days time, the Survey Board must accomplish the following: (1) require
within 10-days the concerned Accountable Officer to file his Request for Relief from
Property Accountability with all supporting evidences and/or basic requirements: (2)
finish the investigation and evaluation within 10 days and submit the results together wit
the PNP Survey Report Form No. 21 to the Chief/Director of Office/Unit for his
comments/recommendation. In 10-days time, the Chief/director of Office or Unit shall
forward/indorse all the documents with his comments/recommendation to the proper
COA official s thru the Resident Auditor concerned for concurrence/approval.

e. Supporting Evidence/Basic Requirements on the Request for Relief

from Property Accountability. To facilitate investigation and evaluation of the
application for relief from property accountability, the Survey Boards must require the
following supporting evidences and/or basic requirements from the person requesting
for relief:

e.1. Duplicate or authenticated copy of the Notice of Loss:

e.2. Original copies of the Request for Relief from Property

Accountability, which is separate from the notice, the Notice of Loss.
 e.3. Affidavit executed by the Accountable Office, stating the following
facts:

e.3.1. Property lost and its valuation;

e.3.2. Actual date in which the loss was first noted;
e.3.3. Manner of disappearance;
e.3.4. Efforts made to recover the same;
e.3.5. Provisions made to safeguard the property; and
e.3.6. Date when the loss was reported to the police authorities.

e.4. Joint of two (2) disinterested persons cognizant of the facts and
circumstances about the loss. If only one (1) is available or none at all, such fact should
be set forth in the affidavit of the person requesting for relief giving the reasons therefor.

e.5. Authenticated copy of Memorandum Receipt(s) of lost property.

f. Other Supporting Evidence if Losses or damages of properties were

caused by the following:

f.1. Casualty, theft, Robbery/Hold-up, Attacks/Raid by Enemy and force

Extremist Groups:

f.1.1. Incident/progress and/or Final Police Report on the theft or

robbery case;

f.1.2. List or inventory of lost or damaged/destroyed properties as

well as those properties as well as those properties retrieved
after such incident stating therein the acquisition cost/book
value of each item, duly verified by the Auditor concerned.

f.2. Fire Civil Disturbance, natural Calamities and other forms of Force
Majeure:

f.2.1. Progress and/or final report of the local Police/Fire

Department or Station on the incident;

f.2.2. List of inventory of burned or destroyed properties as well as

those properties retrieved after the fire, civil disturbance and
natural calamities stating therein the acquisition cost/book
value of each item, duly verified by the Auditor concerned;

f.2.3. Authenticated picture(s) showing the damaged site/office or

government property;

f.2.4. Fire insurance policy, if any, covering subject property. If the

property is insured, information as to whether or not the
Agency concerned has already been paid the proceeds of
the said insurance policy should be secured and, if so,
evidence to this effect should be submitted. If the property
has not been insured, reasons to this effect should likewise
be submitted;

f.2.5. In the case of natural calamity, certification from official of

the local PAGASA or other similar government agency on
the actual occurrence of the calamity specifying therein the
approximate or exact time the incident happened and the
areas or places affected thereby.
 f.2.6. Evidence of the immediate issuance of the notice of loss of
accountable forms as required under COA Circular No. 84-
233 dated August 24, 1984.

f.3. Death of work animals:

f.3.1. Certificate of Death by authorized veterinarian duly verified

by the Auditor concerned; and

f.3.2. Autopsy report by a certified independent veterinarian.

7. RESPONSIBILITIES

a. Directorate for Logistics

Shall be responsible in the overall supervision in the implementation of

this Circular.

b. Directorate for Comptrollership

1. Shall be responsible in the costing/valuation of properties which

were subject of the request; and

2. Shall be responsible in adjusting the PNP properly accounting

record.

c. Regional/Provincial Directors (PROs/PPOs)and Director, NSUs

1. Shall be responsible in disseminating the procedures and policies

of this circular to all concerned within his/her area of responsibility;

2. Shall have direct supervision in the implementation of this circular;

3. Shall be responsible in the acts on the Board of Survey.

d. Board of Survey

1. Shall conduct investigation and evaluation on the facts and

circumstances about the loss or damage of the property;

2. Shall determine if the person requesting for relief shall be liable or

not and submit its findings and recommendations to Chief/Director of Office/Unit.

e. Supply Accountable Officer (SAOs)

1. Respective SAOs shall be jointly liable and responsible for all

issued firearms under his/her accountability;

2. Monitor all property issuances under his/her accountability by

regularly conducting physical inventory-taking and renewal of Memorandum Receipts to
safeguard property losses and/or damages;

3. Submit annual Physical Inventory Report of Property

Accountabilities to ODL every end of year.
 f. Chief Accountant – PNP, NHQ

1. Records the Claims for Unrelieved Losses of Fixed Assets under

the contingent Assets based on updated cost/valuation of lost firearm/s in the PNP
Books of Accounts.

2. Makes necessary adjustment in the PNP Books of Accounts for

approved application of Relief from Property.

8. SANCTIONS/S:

Appropriate charges shall be immediately initiated/filed against PNP personnel

found to have violated any part or all of the provisions of this Circular in relation to
Article 217 of the Revised Penal Code.

9. REPEALING CLAUSE:

PNP Circular Nr. 17 dated August 23, 1993, Subject: Relief from Property
Accountability has been amended in its entirely. All other publications and issuances
similar thereto and inconsistent with this new Circular are hereby repealed or modified
accordingly.

10. EFFECTIVITY:

This circular shall take effect fifteen (15) days from the filing of a copy thereof at
the University of the Philippines Law Center in consonance with Sections 3 and 4
Chapter 2, Book VII and Executive Order No. 292, otherwise known as “The revised
Administrative Code of 1987.”

BY COMMAND OF POLICE DIRECTOR GENERAL LEANDRO R MENDOZA:

(SGD)
CECILIO R PENILLA
Police Director