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CM 404.2 - RECORDING THE SALE/DISPOSITION OF ACQUIRED ASSETS AND UPDATING THE INVENTORY

The inventory of acquired assets shall be updated for the sale or disposition of the acquired properties.

The disposition of acquired assets whether through sale, public auction or negotiated/ private sale as well as transfers to DAR or other government agencies shall be recorded in the NG Books of Accounts in accordance with the prescribed accounting entries under RMO No. 83-2010.

The concerned  Regional  Finance  Divisions  shall  be responsible  in the recording  of all sale/disposition of acquired/forfeited assets within their physical jurisdiction. For personal intangible assets forfeited and sold by the LTS, however, the recording thereof in the NG Books of Accounts shall be done by the Revenue Accounting Division (RAD). The Collection Enforcement Division shall monitor such sales and dispositions and make corresponding adjustments in the inventory and cancel the acquired assets in the CISFA. 

The RDO shall:

  1. Update the inventory of all dockets /documents pertaining to acquired assets upon sale or disposition of acquired assets;
  1. Prepare and submit to the Regional Collection Division on or before the fifteenth (15th) day of the following month, the following reports:
    • Monthly Report on Acquired/Forfeited Assets Sold/Disposed (Annex 400-1.32) under its custody, either thru public auction or negotiated sale, together with the certified photocopies of pertinent documents relative to the sale/disposition; and
    • Monthly Report of Unsold/Undisposed Acquired/Forfeited Assets (Annex 400-1.33).
  1. Transmit to the Regional Administrative Division, thru the Regional Collection Division, a copy of the Monthly Report on Acquired/Forfeited Assets Sold/ Disposed, together with the original copies of the pertinent documents for

The Regional Collection Division shall:

  1. Receive from the RDOs the following reports:
    • Monthly Report on Acquired/Forfeited Assets Sold/Disposed together with the certified photocopies of all the pertinent documents relative to the said sale/disposition; and
    • Monthly Report of Unsold Acquired /Forfeited Assets.
  1. Monitor, evaluate, consolidate the reports received from the RDOs and submit to the ACIR, CS, thru the CED, the following reports on or before the 20th  day of the following month:
    • Consolidated Monthly Report on Acquired/Forfeited Assets Sold/ Disposed (Annex 400-1.34) together with the certified photocopies of all the pertinent documents relative to the said sale/disposition;
    • Consolidated Monthly Report of Unsold/Undisposed Acquired/Forfeited Assets (Annex 400-1.35); and
  1. Submit to the Regional Finance Division a copy of the Consolidated Monthly Report of Acquired/Forfeited Assets Sold/Disposed not later than the 15th day of the following

The Regional Administrative Division shall:

  1. Receive from RDO the Monthly Report of Acquired  Assets Sold/Disposed during the month together with the original copies of the pertinent supporting documents; and
  1. Maintain and safe-keep all the original records and pertinent documents on acquired/forfeited assets sold/

The Regional Finance Division shall:

  1. Receive from the Regional Collection Division the Monthly Consolidated Report on Acquired/Forfeited Assets Sold/Disposed, together with the certified copies of the following supporting documents, for recording and monitoring purposes;
    • Copy of Deed of Sale/Transfer evidencing the sale/disposition of acquired/forfeited properties;
    • Copy of proof of payment of  capital  gams  tax and documentary  stamp tax, if applicable;
    • Copy of Official Receipt evidencing acceptance of payments from the sale/disposition of acquired/forfeited assets; and
    • Copy of the deposit slip with AGDB evidencing remittance of the proceeds from sale or disposal of the acquired/forfeited assets to the BTr.
  1. Validate the accuracy and completeness of the information/data on the Monthly Consolidated Report on Acquired/Forfeited Assets Sold/Disposed;
  1. Prepare the "Journal Entry Voucher" (JEV) to record the proceeds from the sale/ disposal of acquired/forfeited assets in the NG books of accounts using the entries prescribed by the Commission on Audit (COA);
  1. Record in the NO NG Books the forfeited assets sold/disposed based on the Monthly Consolidated Report on Assets Acquired/Forfeited and the Monthly Consolidated Report on Forfeited Assets Sold/Disposed submitted by the RDOs, in accordance with the accounting policies prescribed by COA GAFMIS;
  1. Update the Subsidiary Ledgers (SLs) being maintained in the NG Books for each and every acquired/forfeited asset account that was sold/disposed; and
  1. Prepare and submit to RAD the Monthly Trial Balance (MTB) and supporting schedules for all transactions recorded in the NG Books on or before the 7th  day of the following

The Regional Director shall:

  1. Consolidate the reports on the public auction conducted by BAC -AA and submit the same to ACIR-CS, Attention: The Chief, CED within ten (10) working days from the date of auction sale; and
  1. Monitor the compliance of all the concerned Regional Offices in the timely and accurate submission to the ACIR-CS/CED of all the prescribed management reports on the sale of all acquired/forfeited

The RAD shall:

  1. Receive from the Regional Finance Divisions the Monthly Trial Balance (MTB) and supporting schedules for all sale of acquired assets recorded in the NG Books;
  1. Receive from CED a Consolidated Report on Acquired/Forfeited Assets Sold/ Disposed;
  1. Consolidate the MTBs of the Regional Offices with the National Office Trial Balance (NOTB) for submission to the COA and the Department of Budget and Management (DBM), together with the supporting schedules/statements on or before the 10th day of the following month;
  1. Reconcile the information reflected on the report received from CED with the information reflected MTB submitted by the Regional Finance Division;
  1. Coordinate with the CED and the concerned Regional Finance Divisions any discrepancies noted on the reports received for necessary corrections, adjustments and/or amendments thereon;
  1. Receive from the ACIR-LTS the report on the sale/disposition of acquired/ forfeited personal intangible assets, together with all the pertinent supporting documents; and
  1. Prepare the corresponding JEVs to record the proceeds from the sale/disposition of acquired/forfeited assets by the LTS and the closure of the Acquired Asset account in the NG Books of Accounts.

The Collection Enforcement Division shall:

  1. Receive from the Regional Collection Divisions/LTS, the following reports:
    • Consolidated Report on Acquired/Forfeited Assets Sold/Disposed together with the certified photocopies of all the pertinent documents relative to the sale/disposition; and
    • Consolidated Report of Unsold Acquired /Forfeited Assets ;
  1. Evaluate the documents submitted relative to the sale/disposition of acquired/ forfeited assets and cancel the same in the CISFA (Refer to CM 401 Inventory and Recording of Acquired/Forfeited Assets); and
  1. Prepare a Consolidated Report on Acquired/Forfeited Assets Sold/Disposed and submit the same to the RAD on or before the 25th day of the following month.

The ACIR-Collection Service/Deputy Commissioner-Operations Group shall:

  1. Review, evaluate, and forward to the Commissioner, for final review and approval, the recommendations on the appropriate courses of action to be undertaken by the concerned implementing offices responsible for the acquisition, maintenance, sale/disposition, and recording of forfeited assets.