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Alternative Methods of Procurement are as follows:

A Stolen, Lost, Damaged or Recovered Property Report must be completed under the following circumstances regardless of whether the
property was located at the work site or off-site (e.g. employee has authorization to use the property at the employee's residence):
Property is stolen;
Property is lost;
Property is damaged;
Stolen property is recovered; or
Lost property is found.
The report should be submitted to PPMD for proper disposition. If the item is lost, stolen or damaged, the Law Enforcement Department's
Investigation Division will be requested to conduct an investigation.
The result of the investigation will determine if the lost item will be applied for relief of accountability to the Commission on Audit or to charge
the amount of the item to the employee. Relief of Accountability is defined as follows from the New Government Accounting System
(NGAS):
Section 49. Accounting for Loss of Cash and Property. In case of loss of property due to other causes like theft, force majeure, fire, etc.,
a report thereon shall be prepared by the Accountable Officer concerned for purposes of requesting relief from accountability. No accounting
entry shall be made but the loss shall be disclosed in the notes to financial statements pending result of request for relief from
accountability.
Sec. 50. Grant of Relief from Accountability. When a request for relief from accountability for shortages or loss of funds is granted, a
copy of the decision shall be forwarded to the Chief Accountant who shall draw a Journal Entry Voucher (JEV) to record the transaction.. In
case the request for relief from accountability for loss of property caused by fire, theft, force majeure or other causes is granted, a copy of
the decision shall likewise be forwarded to the Chief Accountant for the preparation of the JEV. The loss shall be debited to the Loss of
Assets account and credited to the appropriate asset account. If request for relief from accountability is denied, the loss shall be taken up as
a receivable from the Accountable Officer or employee liable for the loss and shall be credited to the appropriate asset account.

Relief from Property Accountability

When a loss of government funds or property occurs while they are in transit or the loss is caused by fire, theft, or other casualty
or force majeure, the officer accountable therefor or having custody thereof shall immediately notify the Commission or the
auditor concerned and, within thirty days or such longer period as the Commission or auditor may in the particular case allow,
shall present his application for relief, with available supporting evidence. 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[1], PD 1445)
The property adverted to may be supplies, materials, equipment, buildings and other tangibles having money value over which the
government has title thereto. Documents destroyed by termites are not by themselves the property contemplated in Section 73 thereof.
They may, however, be done in accordance with the rules and regulations prescribed by the Record Management and Archives Office.
In cases of loss of accountable forms in the custody of collecting and property officers, including unissued treasury warrants or checks, it
shall immediately be reported by the accountable officers concerned to their respective chiefs of offices or heads of government entities
who, in turn, will at once issue a circular or notice of such loss for the information and guidance of all collecting and disbursing officers,
provincial, city and municipal treasurers, bureau, provincial and city auditors and other concerned in preventing against the
possible fraudulent use of such accountable forms. (COA Cir. 84-233 dated Aug. 21, 1984)
Request for relief from accountability for losses of government property shall be made in the form of a letter, through the chief of office,
addressed to the Auditor. The letter shall contain a statement of the circumstances relating to the loss, the book value, property number and
any additional information necessary for an intelligent decision in the claim for relief. The request shall be accompanied by sufficient
evidence to prove the validity of the claim. This includes the affidavit of the officer signing the request, containing a statement of the facts
and circumstances surrounding the loss, in addition to a list and description of the articles lost. The affidavits of the at least two disinterested
persons cognizant of the facts and circumstances surrounding the case shall also be submitted. If only one or no other person is cognizant
of the facts and circumstances about the loss, such conditions shall be stated fully in the affidavit of the person seeking relief, giving
reasons therefore. Immediate report to the law enforcing agency for investigation must be made.
When the request for relief is not filed within the statutory period of thirty (30) days, an explanation thereof is required. This means that in
addition to the evidence to support the claim for loss, there should be also be submitted an explanation for the delay in filing the request
beyond the required thirty-day period.
The filing of the notice of the loss immediately upon the occurrence of the loss or within the reglementary period of thirty days therefrom is
clearly a condition precedent to the grant of relief, otherwise it will be denied. The requirement is mandatory, hence, if the application for
relief is filed beyond the 30-day period, the same cannot be entertained unless the delay is satisfactorily explained. The rationale for this
strict requirement is to enable the Commission to conduct its own investigation of the reported loss while the clues are still fresh to satisfy
itself that the alleged loss or other casualty had really occurred.

Aside from the notice/request, there must be sufficient evidence of loss, and that it was not on account of the negligence or fault of the
accountable officer. Although the 30-day notice rule is to be strictly followed, the Commission has granted relief even if notice was made
beyond the period where it was shown that the robbery was actually established by positive findings of the police and the NBI. (COA Dec.
167, May 12, 1978)
Under this section, the loss that justifies relief from accountability: (1) must occur while the funds or property are in transit, or (2) is caused
by fire, theft or other casualty or force majeure. Other casualty or force majeure is broad enough to cover both force majeure and
fortuitous events. There is no essential difference between fortuitous event and force majeure. They both refer to causes independent of the
will of the obligor.
The burden of proof in cases of request for relief must rest upon the officer sustaining the loss, and the court will not grant relief unless it is
shown by him that such loss occurred without fault or negligence on his part. Thus, where a disbursing officer is robbed in a public place, a
bank, and the robbery is characterized by the suddenness, boldness, and adroitness of a practiced hand, and is accomplished by some
artifice against which reasonable prudence could not guard and which human sagacity could not foresee, it is just and equitable that the
officer and his sureties be not held accountable for the loss. (Reynolds, et al. v. US, 15 Ct. Cls. 314)
Negligence is want of care required by the circumstances. It is a relative or comparative, not an absolute term, and its application depends
upon the situation of the parties, and the degree of care and vigilance which the circumstances reasonably impose. Negligence is conduct,
not a state of mind or the use of sound judgment. Hence, the existence of negligence, in a given case, is not determined by reference to the
personal judgment but by behavior of the actor in the situation. (Manila Railroad Co. v. CIR, 106 Phil. 1169)
Negligence has been defined as the omission to do something which a reasonable man, guided upon those considerations which ordinarily
regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable man would not do. (Sangco, Torts
and Damages)

NATIONAL BUDGET CIRCUALR NO. 342

COMMISSION ON AUDIT CIRCULAR NO. 81-160
April 21, 1981
4.1.3

The agency whose property is damaged by fire or other insured risks shall take the initiative for immediately filing the claim in
coordination with the BSRPMO and for collecting the proceeds from the GIF of the GSIS.

4.1.4 The officer accountable for the damaged, lost property shall, within thirty (30) days from the date of loss or damage, request relief
from accountability. Such request shall be submitted to the Commission on Audit (COA) supported by sufficient evidence to prove the
validity of the loss such as affidavits containing statement of facts and circumstances surrounding the loss
PD 1445: CHAPTER 5 ACCOUNTABILITY AND RESPONSIBILITY FOR GOVERNMENT FUNDS AND PROPERTY
Section 101. Accountable officers; bond requirements. (1) Every officer of any government agency whose duties permit or require the
possession or custody of government funds or property shall be accountable therefor and for the safekeeping thereof in conformity with law.
(2) Every accountable officer shall be properly bonded in accordance with law.
Section 102. Primary and secondary responsibility. (1) The head of any agency of the government is immediately and primarily responsible
for all government funds and property pertaining to his agency. (2) Persons entrusted with the possession or custody of the funds or
property under the agency head shall be immediately responsible to him without prejudice to the liability of either party to the government.
Section 103. General liability for unlawful expenditures. Expenditures of government funds or uses of government property in violation of
law or regulations shall be a personal liability of the official or employee found to be directly responsible therefor. 27
Section 104. Records and reports required by primarily responsible officers. The head of any agency or instrumentality of the national
government or any government-owned or controlled corporation and any other self-governing board or commission of the government shall
exercise the diligence of a good father of a family in supervising accountable officers under his control to prevent the incurrence of loss of
government funds or property, otherwise he shall be jointly and solidarily liable with the person primarily accountable therefor. The treasurer
of the local government unit shall likewise exercise the same degree of supervision over accountable officers under his supervision,
otherwise he shall be jointly and solidarily liable with them for the loss of government funds or property under their control.
Section 105. Measure of liability of accountable officers. (1) Every officer accountable for government property shall be liable for its money
value in case of improper or unauthorized use or misapplication thereof, by himself or any person for whose acts he may be responsible.
We shall likewise be liable for all losses, damages, 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. (2) Every officer accountable for government funds shall be liable for all losses resulting from
the unlawful deposit, use, or application thereof and for all losses attributable to negligence in the keeping of the funds.
Section 106. Liability for acts done by direction of superior officer. No accountable officer shall be relieved from liability by reason of his
having acted under the direction of a superior officer in paying out, applying, or disposing of the funds or property with which he is

chargeable, unless prior to that act, he notified the superior officer in writing of the illegality of the payment, application, or disposition. The
officer directing any illegal payment or disposition of the funds or property shall be primarily liable for the loss, while the accountable officer
who fails to serve the required notice shall be secondarily liable.

CHAPTER VI
COLLECTION OF REAL PROPERTY TAX
Section 56. Date of accrual of tax. The real property tax for any year shall attach and become due and payable on the first day of January
and from the same date said tax and all penalties subsequently accruing thereto shall constitute a lien upon the property subject to such
tax. Said lien shall be superior to all other liens, mortgages, or encumbrances of any kind whatsoever, shall be enforceable against the
property whether in the possession of the delinquent or any subsequent owner or possessor, and shall be removable only by the payment
of the delinquent taxes and penalties.
The real property tax on properties actually, directly, and exclusively used for educational purposes as provided under Presidential Decree
No. 261 shall begin to accrue on January 1, 1975.
Section 57. Collection of tax to be the responsibility of treasurers. The collection of the real property tax and all penalties accruing thereto,
and the enforcement of the remedies provided for in this Code or any applicable laws, shall be the responsibility of the treasurer of the
province, city or municipality where the property is situated.
Section 58. Assessor to furnish treasurer with assessment roll. The provincial or city assessor shall prepare and submit to the treasurer of
the province, city or municipality, on or before the thirty-first day of December of each year, an assessment roll containing a list of all
persons to whom real properties have been newly assessed or reassessed and the values of such taxable properties.
Section 59. Notice of time for collection of tax. The provincial or city treasurer shall, on or before the thirty-first of January each year, cause
notice of the periods during which real property tax may be paid without penalty in their respective jurisdiction to be posted at the main
entrance of the provincial building or city hall and of all municipal buildings and in a public conspicuous place in each barrio, and published
in a newspaper and announced by crier at least three times.
The form and detail of the notice shall be prescribed by the Secretary of Finance: Provided, however, That in lieu of or in addition to such
notice, the Secretary of Finance may require notification in any province, municipality, or city to be accomplished through the mailing of
individual tax bills which shall estate the exact amount of the annual tax due, the amount of quarterly installment, its due date, the
delinquency, and the applicable penalty.
Section 60. Payment of real property taxes in installments. Real property taxes may, in the discretion of the taxpayer, be paid without
penalty in four equal installments; the first installment to be due and payable on or before March thirty-first; the second installment, on or
before June thirty; the third installment, on or before September thirty; and the last installment, on or before December thirty-first, except the
special levies authorized under Sections forty-seven and fifty-five of this Code which shall be governed by the local ordinance or
Department Order issued by the Secretary of Finance, as the case may be.
Any person who is in any provincial, city or municipal treasurer's office on the last day of any period established for the payment of the real
property tax without penalty, ready and prepared to pay but is unable to do so because of the great number of taxpayers, shall be given a
suitable card entitling him to pay the tax without penalty on the next business day.
Section 61. Tax discount. If the basic and additional real property tax levied for the Special Education Fund or any quarterly installment
thereof is paid in full within the prescribed period of payment, the taxpayer shall be granted a discount on the tax due as follows: twenty per
cent on the tax due and payable during the year 1974; fifteen per cent on the tax due and payable during the year 1975; ten per cent on the
tax due and payable during the year 1976; and five per cent on the tax due and payable during the year 1977; Provided, further, That only
lands without any delinquency shall be granted the same; and Provided, finally, That the discounted tax shall not be lower than the tax
corresponding to the next preceding tax year.
Beginning with the calendar year 1978 and thereafter, the President of the Philippines may, at his discretion or upon recommendation of the
Secretary of Finance, authorize the grant of discounts on taxes due on real property at such rates and for such periods as he may fix, if he
deems that the public interest so requires.
Section 62. Payment under protest. (a) When a taxpayer desires for any reason to pay his tax under protest, he shall indicate the amount
or portion thereof he is contesting and such thereon the words "paid under protest". Verbal protests shall be confirmed in writing, with a
statement of the ground, therefor, within thirty days. The tax may be paid under protest, and in such case it shall be the duty of the
Provincial, City or Municipal Treasurers to annotate the ground or grounds therefor on the receipt.
(b) In case of payments made under protest, the amount or portion of the tax contested shall be held in trust by the treasurer and
the difference shall be treated as revenue.
(c) In the event that the protest is finally decided in favor of the government, the amount or portion of the tax held in trust by the
treasurer shall accrue to the revenue account, but if the protest shall be decided finally in favor of the protestant, the amount or

portion of the tax protested against may either be refunded to the protestant or applied as tax credit to any other existing or future
tax liability of the said protestant.
Section 63. Repayment of excessive collections. When it appears that an assessment of real property was erroneous and unjust when
made and the same is reduced because of such error or injustice, and not by reason of damage incurred or deterioration suffered by such
property subsequent to the date of original assessment, the taxpayer shall be entitled to the proper refund for taxes and penalties paid by
him for not more than three years.
Timely notice shall be given by the Provincial or City Treasurer to every taxpayer whose assessment is so reduced and he shall be
furnished a certificate showing the amount of refund to which he is entitled for payment already made.
Section 64. Restriction upon power of court to impeach tax. No court shall entertain any suit assailing the validity of tax assessed under this
Code until the taxpayer shall have paid, under protest, the tax assessed against him nor shall any court declare any tax invalid by reason of
irregularities or informalities in the proceedings of the officers charged with the assessment or collection of taxes, or of failure to perform
their duties within this time herein specified for their performance unless such irregularities, informalities or failure shall have impaired the
substantial rights of the taxpayer; nor shall any court declare any portion of the tax assessed under the provisions of Code invalid except
upon condition that the taxpayer shall pay the just amount of the tax, as determined by the court in the pending proceeding.
Section 65. Notice of delinquency in the payment of the real property tax. Upon the real property tax or any installment thereof becoming
delinquent, the provincial or city treasurer shall immediately cause notice of the fact to be posted at the main entrance of the provincial
building and of all municipal buildings or municipal or city hall and in a public and conspicuous place in each barrio of the municipality of the
province or city as the case may be. The notice of delinquency shall also be published once a week for three consecutive weeks, in a
newspaper of general circulation in the province or city, if any there be, and announced by a crier at the market place for at least three
market days.
Such notice shall specify the date upon which tax became delinquent, and shall state that personal property may be seized to effect
payment. It shall also state that, at any time, before the seizure of personal property, payment may be made with penalty in accordance with
the next following section, and further, that unless the tax and penalties be paid before the expiration of the year for which the tax is due, or
the tax shall heave been judicially set aside, the entire delinquent real property will be sold at public auction, and that thereafter the full title
to the property will be and remain with the purchaser, subject only to the right of delinquent taxpayer or any other person in his behalf to
redeem the sold property within one year from the date of sale.
Section 66. Penalty for delinquency. Failure to pay the real property tax before the expiration of the period for the payment without penalty
of the quarterly installments thereof shall subject the taxpayer to the payment of a penalty of two per centum on the amount of the
delinquent tax for each month of delinquency or fraction thereof, until the delinquent tax shall be fully paid: Provided, That in no case shall
the total penalty exceed twenty-four per centum of the delinquent tax. The rate of penalty for tax delinquency fixed herein shall be uniformly
applied in all provinces and cities.
Section 67. Remedies cumulative, simultaneous and unconditional. Collection of the real property tax may be enforced through any or all of
the remedies provided under this Code, and the use or non-use of one remedy shall not be a bar against the institution of the others.
Formal demand for the payment of the delinquent taxes and penalties due need not be made before any of such remedies may be resorted
to; notice of delinquency as required in Section sixty-five hereof shall be sufficient for the purpose.
Section 68. Distraint of personal property for delinquency. After delinquency in the payment of such tax may be enforced by distraining the
personal property including the crops growing on land of the delinquent taxpayer. In such case, the provincial or city treasurer or his deputy
shall issue a duly authenticated certificate, based upon the records of his office, showing the fact of the delinquency and the amount of tax
and penalty due, and this shall be sufficient warrant for the seizure of any non-exempt personal property belonging to the delinquent
taxpayer in question. Such process may be executed by the provincial or city treasurer, his deputy, or any officer authorized to execute legal
process.