8. PURCHASE, OWNERSHIP, AND ACCOUNTABILITY OF PROJECT EQUIPMENT AND OTHER PROPERTIES
Supplies, materials and other properties authorized to be purchased using GIA funds shall be used exclusively for the program/project. Equipment designed and fabricated using MOOE funds of the project shall be reported as equipment. Equipment procured under GIA-assisted projects are subject to the following guidelines:
8.1. Purchase of Supplies, Equipment and other Properties--procurement of goods using GIA funds shall be subject to the usual public bidding consistent with existing government accounting and auditing laws, rules, and regulations. Subject to prior approval of the head of the procuring entity or his duly authorized representative and under certain conditions, alternative methods of procurement as provided under Section 48.2 and 52 of the Revised IRR of RA 9184 and Item No. 2 of the Annex H attached thereto may be adopted in the purchase of amounting to P500,000.00 or below. In case a private entity is providing counterpart funds for the purchase of equipment under the program/project, the method of procurement of goods/equipment exceeding P500,000.00 shall be subject to the terms and conditions agreed by the Funding Agency and private entity as provided in the MOA.
Only equipment included and identified in the approved line-item budget shall be purchased using grant funds. Items purchased under equipment outlay as indicated in the approved LIB shall be classified as fixed assets and shall be covered by Acknowledgement Receipt for Equipment (ARE).
8.2. Accountability for Equipment--the Program/Project Leader shall be primarily responsible for all properties related to the project until the same are transferred/loaned to another entity upon project termination. The Program/Project Leader shall sign the corresponding ARE attested by the Property Officer of his/her institution and submit it together with copies of all purchase documents, to Funding Agency within 15 days from the date of delivery. The Funding Agency shall then provide the Agency Property Officer a list of equipment procured under the project together with copies of the corresponding AREs.
Upon transfer/loan of equipment, the Funding Agency shall issue clearance to the Program/Project Leader. The recipient/end-user shall be responsible directly to Program/Project Leader.
If a Program/Project Leader transfers to another government office, retires, resigns, or is dismissed/separated from the service, he/she shall be required to secure clearance from the Property and Supply Section of his/her institution as well as inform the Funding Agency. Clearance shall not be issued unless all properties related to the project are fully accounted for.
8.3. Ownership of Equipment--The Funding Agency shall own all equipment purchased through grant funds until such are transferred to other projects or implementing institution. Upon request, the ownership of equipment may be transferred subject to the approval from Funding Agency. The Funding Agency reserves the right to transfer ownership of such government equipment through Invoice Receipt/s for Property (IRPs) or execution of Deed/s of Donation subject to existing government accounting and auditing laws, rules and regulations. (See Form- IRP) (Refer to section 8.13 regarding request for transfer of equipment after project completion).
8.4. Record Keeping--the Property Officer at the Funding Agency shall establish a complete and centralized file of records of all equipment procured through DOST-assisted programs/projects in collaboration with the technical, accounting and budget divisions, auditing office, and project leaders.
For GIA-funded projects in the DOST-Central Office, equipment purchased shall be recorded immediately in the books of accounts of the Office. If the Implementing Agency is from DOST agency/regional office or other government agency or LGU, equipment purchased shall be recorded in their books of accounts upon issuance of an IRP or execution of Deed of Donation. If the Implementing Agency is from NGO or private entity, equipment purchased shall be recorded in the books of accounts of either the DOST-Central Office, the Monitoring Agency or the nearest DOST regional office subject to the agreement of concerned parties upon transfer of equipment ownership and agreement among parties concerned.
8.5. Directory of Equipment--the Property Officer at the Funding Agency shall also, prepare a directory or master list of all equipment which shall include essential and relevant data such as the following:
a. Agency Name
b. Location of Equipment
c. Project Title
d. Current custodian or end-user accountable for the equipment
e. Programmed Equipment
f. Equipment purchased with individual description/specification
g. Date of Acquisition
h. Property Number
i. Amount per LIB
j. ARE serial no.
k. Acquisition/actual cost
l. Current physical condition whether usable, defective or beyond economic repair and disposition made pursuant to existing government rules and regulations
8.6. Physical inventory of equipment--an actual inventory of equipment purchased through GIA projects shall be conducted and reports shall be generated using the DOST Inventory Report Format and Form 4b-Field Evaluation Report. All equipment shall be labeled with the standard DOST sticker during the conduct of physical inventory.
8.7. Updating of equipment records--the Property Officer at the Funding Agency shall update the directory and records of equipment every year and check them against the results of physical inventory. A copy of the updated directory shall be provided to the project leaders, technical, and financial divisions/units concerned.
8.8. Care and location of equipment--the program/project leader shall ensure that the project equipment are housed in a suitable location and that proper care and maintenance are observed.
8.9. Sharing in the use of equipment--equipment purchased through GIA programs/projects may be shared with other ongoing programs/projects subject to mutually acceptable and convenient arrangements between concerned parties. The laboratory or technical personnel operating such equipment may also be shared when warranted. However, no equipment shall be physically transferred without the written consent or approval of the program/project leader and without knowledge of the Funding Agency.
8.10. Repair or replacement of defective equipment--the Program/Project Leader shall be responsible for the immediate repair of defective equipment using available funds as provided in the approved LIB. If such funds are not sufficient or available, the project’s savings may be used subject to approval of the Funding Agency.
8.11. Plans for the use of equipment--the Funding Agency shall determine which equipment purchased through GIA funds remain unused. Such information shall be used in the evaluation of new projects, especially those requiring the same equipment.
8.12. Preservation of unused equipment--subject to provisions 8.13 to 8.15 of this guidelines, the Funding Agency and concerned institution shall make arrangements for the proper custody of unused equipment until these are transferred or re-assigned to another project.
8.13. Transfer of ownership of equipment without cost--The Funding Agency may allow the transfer of ownership of an equipment under a completed/terminated project without cost in favor of other government agency (LGUs included) which have expressed interest to assume responsibility of such equipment, subject to the following conditions:
a. The equipment shall be used in research and development projects, extension and education purposes or activities;
b. An IRP or execution of Deeds of Donation shall be issued after submission of an inventory of equipment purchased and AREs. The IRP (three (3) original copies) shall be signed by the Head of receiving agency before submission to the Funding Agency for approval. The respective Property Offices of the Funding Agency and receiving institution shall be provided with copies of the approved IRP;
c. Once transfer is effected, the receiving agency shall bear all expenses that may be incurred for repair, maintenance and/or improvement of the equipment;
d. The receiving institution shall enter in its books of accounts the itemized total book value of the equipment transferred in accordance with NGAS;
e. The receiving institution shall comply with the Property Insurance Law requiring all government entities to insure their properties with the Property Insurance Fund at its own expenses; and
f. In the exigency of the service, the Funding Agency may borrow the transferred equipment, without charge, to be used in other GIA programs/projects subject to concurrence of the Project Leader and Head of receiving institution.
Equipment purchased through GIA projects being implemented by an NGO or private entity shall remain as property of the Funding Agency unless it is covered by the provisions on refund mechanism as stated in section 6.3.5 of this Guidelines.
8.14. Loan of equipment upon written request, an equipment procured through a previous GIA project may be loaned free of charge to other project proponents subject to the following conditions:
a. The equipment shall be used for purposes of (a) carrying out its research, either solely by itself or in collaboration with other institutions, (b) instruction in science and technology; and/or (c) dissemination of knowledge in science and technology. In no case shall any fee be charged for such use nor shall the equipment be sub-leased without prior written approval of the Funding Agency;
b. The loan of an equipment shall be on an “as is, where is” basis, and all expenses for its repair, maintenance and/or improvement shall be borne by the end-user;
c. The end-user shall be liable for any damage or loss of the loaned equipment except for those brought about by normal wear and tear or force majeure; and
d. The loan shall be for a definite period only but maybe renewed upon approval of the Funding Agency. At the end of the loan period, the equipment shall be returned to the Funding Agency in good condition.
8.15 Unserviceable equipment--Subject to Sections 8.13 and 8.14 of this guidelines, the Funding Agency may allow the Implementing Agency, upon request, to render as condemned the unserviceable equipment if the freight cost of transferring such equipment to the Funding Agency is deemed uneconomical. The Funding Agency shall ensure that proper inventory is conducted and that an appropriate report is generated (using the Inventory and Inspection Report of Unserviceable Property) prior to approval of such request.