Semi-expendable properties erroneously recorded to Other Supplies and Materials
Expenses - ₱223,127.04
10. Purchases of semi-expendable properties totaling at least ₱223,127.04 were
recorded under the Other Supplies and Materials Inventory account instead of the
appropriate semi-expendable inventory account, contrary to COA Circular 2024-
006, thus, eliminating the required accounting for the receipt and utilization
established through the use of Inventory Custodian Slips and the Report on Semi-
Expendable Property Issued, along with other reports and registries, which could
result in the misstatements of semi-expendable inventories and corresponding
expense accounts at the end of the year.
10.1 COA Circular No. 2022-004 dated May 31, 2022, provides guidelines for
implementing the increase in the capitalization threshold from ₱15,000.00 to
₱50,000.00. Specifically, Section 4 thereof requires that tangible items meeting
the definition and recognition criteria of Property, Plant, and Equipment (PPE)
but costing below ₱50,000.00 be accounted for in the books of accounts of the
agencies as semi-expendable property.
10.2 To strengthen controls over the semi-expendable property, the forms, registry, and
reports are enumerated in Section 4.7 of the aforementioned Circular:
Form/ Registry/ Description Responsible Person
Report
Semi-Expendable To record the acquisition, Supply and/or Property
Property Card (SPC) issue/transfer/disposal and Division/Unit
the description/information
Semi-Expendable To record the acquisition, Accounting Division/Unit
Property Ledger description, custody,
Card (SPLC) impairment,
issue/transfer/disposal,
repair history, and other
information
Inventory Custodian To issue tangible items Property and/or Supply
Slip (ICS) amount to less than Division/Unit
₱50,000.00 to end-user to
establish accountability
Registry of Semi- To record the issue, return, Property and/or Supply
Expendable Property reissue, disposal, and other Division/Unit
Issued (RegSPI) information; maintained by
fund
Inventory Transfer Used every time there is a Accountable Officer/
Report (ITR) transfer of inventory Employee
Receipt of Returned For returned sei-expendable Accountable Officer
Semi-Expendable property whether
Property (RRSP) serviceable or unserviceable
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