* Republic of the Philippines a DEPARTMENT OF LABOR AND EMPLOYMENT Pein bt Intramuros, Manila ° anism MEMORANDUM To ALL DOLE REGIONAL DIRECTORS This Department SUBJECT : Submission of Report on the Actual Physical Count of Property, Plant and Equipment (RPCPPE) for CY 2019 Please submit the duly signed and accomplished Report on the Physical Count of Property, Plant and Equipment (RPCPPE) using the attached prescribed format (Appendix 73) on or before 31 January 2020 using excel spreadsheet file in soft and hard copy. Kindly send it through electronic mail at procure100@amail,com and courier to the Property Division, Administrative Service, Department of Labor and Employment, corner Muralla and General Luna Streets, Intramuros, Manila, respectively. This is in pursuant to Section 38, Chapter 10 of the Government Accounting Manual Volume | which provides that. “The entity shall have a periodic physical count of Property, Plant and Equipment, which shall be done annually and presented on the Report on the Physical Count of Property, Plant and Equipment (RPCPPE) ...”. The RPCPPE shall include all the properties physically present in your offices and those issued to all employees, with cut-off date as of 31 December 2019. For compliance. REI EBARLI Undersecretary 08 January 2020 attach: a/s cc.: Usec. Ana C. Dione Regional Operations and ‘Special Concerms Clustereu Appendix 73 REPORT ON THE PHYSICAL COUNT OF PROPERTY, PLANT AND EQUIPMENT (Cpe of Property, Plant and Equipment) Asa Fund Qlusters For which (Name of Accountable Officer), (Oficial Designation), (Entity Nome is secountabl, having stsmed such accountability on_(Dete of Assumption, roy coy proveery | uror | war SHORTAGEOVERAGE coed Sarma NUMBER |sEASURE] VALUE be ier TREMAKS mnorstrvcan | ravsict cou |~Samiy [vie cestiied Core by: ‘Approved by Verified by: ‘Signature over Printed Name of ‘Signature over Printed Name of Head of ‘Signature over Printed Name of COA| Inventory Committe Chair and ‘Apeney/Enty or Authorized Representative Representative MembersREPORT ON THE PHYSICAL COUNT OF PROPERTY, PLANT AND EQUIPMENT (RPCPPE) INSTRUCTIONS ‘A. The RPCPPE is the form used to report on the physical count of PPE by type such as land, land improvements, infrastructure, building and other structures, machinery and equipment, transportation equipment, furniture, fixtures and books, etc. which are owned by the agency. It shall be prepared yearly by fund cluster. B. This form shall be accomplished as follows 1. ‘Type of Property, Plant and Equipment — PPE account name such as Heavy Equipment, ‘Technical and Scientific Equipment, Motor Vehicle, Office Equipment, Furniture and Fixtures, etc As at — date of the report Fund Cluster ~ fund cluster name/code in accordance with UACS Name of Accountable Officer ~ name of the accountable officer Official Designation ~ official designation of the accountable officer Entity Name ~ agency or office where the accountable officer is assigned Date of Assumption ~ first day of assumption of the duties and responsibilities as accountable officer Article ~ type of item or article e.,, personal computer, printer, fling cabinet, ete.) Description — brief description of the articlefitem (e.g, Acer monitor for personal computer, Epson for printer, ete.) 10. Property Number ~ assigned property number by the Supply and/or Property Division/Unit IL. Unit of Measure ~ unit of measurement of the property, plant and equipment (@.g., pieve, set, etc.) 12. Unit Value - cost per quantity unit 13. Quantity-Per Property Card — quantity of items or articles appearing in the PC 14, Quantity-Per Physical Count — quantity of items or articles per physical count 15, Shortage/Overage excess of the quantity and total value of items or articles per PPELC over that ofthe physical count or vice versa 16. Remarks — whereabouts, conditions and other relevant information relative to PPE C. The report shall be certified correct by the Inventory Committee Chair and Members, approved by the Head of Agency/Entity or his/her Authorized Representative, and verified by the COA Representative D. This shall be prepared in four (4) copies distributed as follows: Original ~ COA Auditor, through the Accounting Division/Unit Copy2 — ~ Accounting Division/Unit Copy3 — ~ Supply and/or Property Division/Unit Copy4 — ~ Inventory Officer/Committee E, It shall be submitted to the Auditor concemed and Accounting Division/Unit not later than January 31 of each year. 180Chapter 10 PROPERTY, PLANT AND EQUIPMENT Sec. 1. Scope. This Chapter covers accounting for Property, Plant and Equipment (PPE) which includes land; land improvements; buildings and other structures; machinery and equipment; transportation equipment; furniture, fixtures and books; leaschold improvements; and other PPE including specialist military equipment, infrastructure assets, and heritage assets. It also, covers accounting treatment, recognition, measurement, derecognition to ensure that all PPEs are properly valued and recorded, and the disclosure requirements in reporting PPE. Sec. 2, Definition of Terms. When used in this Manual, the following terms shall mean: a Carrying Amount — is the amount at which an asset is recognized after deducting any accumulated depreciation and accumulated impairment losses. b. Cost —is the amount of cash or cash equivalents paid and the fair value (FV) of the other consideration given to acquire an asset at the time of its acquisition or construction, €. Depreciation — is the systematic allocation of the depreciable amount of an asset over its useful life 4d. Depreciable Amount — is the cost of an asset, or other amount substituted for cost, less its residual value, ©. Entity-specifie Value —is the present value (PV) of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability. £. Exchange Transactions — are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange, g Fair Value — is the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. 1h. Impairment Loss of a Cash-generating Asset — is the amount by which the carrying ~ amount of an asset exceeds its recoverable amount, i, Impairment Loss of a Non Cash-generating Asset ~ is the amount by which the ‘carrying amount of an asset exceeds its recoverable service amount. j. Non-exchange Transactions ~ are transaction where an entity either receives value from another entity without directly giving approximately equal value in exchange, ot gives value to another entity without direetly receiving approximately equal value in exchange. k. Property, Plant and Equipment ~ are tangible assets that are: 1. purchased, constructed, developed or otherwise acquired; 164Account Title Account Code Debit Credit Guaranty/Security Deposits Payable 20401040 B 100,000 Cash-Modified Disbursement System (MDS), Regular 10104040 100,000 To recognize refund of retention fee Note 2: Retention fee is refunded if al the requirements stipulated in the contract was met. Loss of Assets 50504090 500,000 Construction in Progress-Land Improvements 10610010 B 500,000 To recognize damaged reforestation project Note 3: Damaged 50% of the project as approved by the Regional Director (RD) stated in the Assessment and Validation Report (AVR) and verified by the COA Auditor Land Improvements, Reforestation Projects 10602020 500,000 Construction in Progress-Land Improvement 10610010 +P 500,000 To recognize the turn-over and acceptance of the reforestation project, Note 4: Undamaged 50% of the project as approved by the RD as stated in the AVR and verified by the COA Auditor Note 5: For the documentary requirements refer to 13.3 of COA Circular No, 2012-001, ‘See. 38, Physical Count of PPE. The entity shall have a periodic physical count of PPE, which shall be done annually and presented on the Report on the Physical Count of Property, Plant and Equipment (RPCPPE) (Appendix 71) as at December 31 of each year. This shall be submitted to the Auditor concemed not later than January 31 of the following year. Equipment found at station and losses discovered during the physical count shall be reported to the Accounting Division/Unit for proper accounting/recording Sec. 39. Derecognition. The cost of the PPE together with the related accumulated depreciation and accumulated impairment loss shall be removed from the accounts (2014 ed. Financial Accounting, Volume 1, Valix). The carrying amount of an item of PPE shall be derecognized on disposal or when no future economic benefits or service potential is expected from its use or disposal. The following are the policies on the disposal of PPE: a. The gain or loss arising from derecognition of an item of PPE shall be included in surplus or deficit when the item is derecognized. If, under the recognition principle, an entity recognizes in the carrying amount of PPE the cost of a replacement for its part, then the carrying amount of the replaced part shall be derecognized. If it is not practicable to determine the carrying amount of the replaced part, the entity may use the cost of the replacement as an indication of what the cost of the replaced part was at the time it was acquired or constructed. ‘The gain or loss arising from the disposal of an item of PPE shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item; 4. A JEY shall be prepared by the Accounting Division/Unit to derecognize the asset from the books of accounts only after its disposal; 199