Disposal
Disposal
Disposal
Government
Property
HELLO!
I am
Engineer
Maria Cecilia G.
Alonzo
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Key Points
1. Part of Disposal in Property Supply and
Management System
2. Legal Basis
3. Definition of Terms
4. Disposal Activities and Procedures
5. Guidelines/Procedures in the Sale of
Property
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“
Nothing can be taught to a man;
but it’s possible to help him to
find the answer within himself.”
(Galileo Galilei)
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1. Phase of Disposal in
Property and Supply
Management System
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PROPERTY and SUPPLY
MANAGEMENT SYSTEM
ACQUISITION
DELIVERY, INSPECTION and
ACCEPTANCE, and PAYMENT
CUSTODIANSHIP
ISSUANCE and UTILIZATION
DISPOSAL 6
Similarities and
Differences
between
Acquisition
and Disposal
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ACQUISITION DISPOSAL
Procurement Sale
M Transfer Transfer
O Donation Donation
Confiscation, Barter
D Attachment/ Seizure
E /Foreclosure
S Production/ Condemnation
Manufacture
Construction 8
ACQUISITION DISPOSAL
Procurement Sale
Public Bidding Public Bidding
Negotiated Negotiated/ Private
Procurement Sale
Limited Source Bidding
Direct Contracting
Repeat Order
Shopping 9
BASIC CONCEPT
ACQUISITIO
N DISPOSAL
the START of
the life cycle the END of the
of a life cycle of a
government government
property property 10
2. Legal Basis
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Manual on Disposal of
Government Property (National Budget
Circular No. 425 dated 28 January 1992
Determination of DISPOSABLE
PROPERTY
DISPOSAL OBJECTIVES
Modes of Disposal
Guidelines/ Procedures in the Sale of
Property
Manual on Disposal of
Government Property (National Budget
Circular No. 425 dated 28 January 1992
Functions of the Disposal Committee
Secretariat Services
Executive Order No. 309 dated 8
March 1996
RECONSTITUTING THE DISPOSAL
COMMITTEE CREATED UNDER
Executive Order NO. 285
COA Memorandum 98-569-A
dated August 5, 1998
Revised Guidelines on Appraisal of
Property Other Than Real Estate,
Antique Property and Works of Art
Management Responsibilities when the
highest bid price falls below the floor
price
COA Memorandum 98-569-A
dated August 5, 1998
Manual on Appraisal of Government
Properties:
- Documentations
- Appraisal Process
- Determination of the Appraised Value
COA Memorandum No.
88-024 dated 8 August 1998
Guidelines on the Review of
Appraised Value of Disposed
Property Other Than Real Estate,
Antique Property and Works of Art
COA RESPONSIBILITIES
COA Circular No. 95-006
dated 18 May 1995
Total lifting of pre-audit on all financial
transactions of the National Government
agencies, GOCCs and LGUs
Management Responsibilities:
1. Conduct of inspection
2. Submission of Report to the Auditor
3. Notification on the schedule of destruction /
condemnation of unserviceable property
COA Memorandum 2005-027
dated February 28, 2005
Amendments to COA Memorandum No.
91-704 dated February 27, 1991 on the
Documentary Requirements for the
Evaluation of the Technical Aspect of all
Government Contracts and Inspection of
Government Projects
3. Definition of
Terms
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Abandoned Property
◈ Any personal property in the possession
of any government agency without a
known owner
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Beyond Economical Repair
◈When the cost of repair and maintenance
becomes prohibitive and disadvantageous
to the government considering such factors
as:
◈ Maintenance
◈ Downtime
◈ Replacement cost of spare parts
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Beyond Economical Repair
◈ Frequency of breakdown
◈ Alternative modes such as rental of
equipment or outright replacement
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Obsolete Property
◈That which has lost its efficacy either due
to technological advancement, change of
procedures, reorganization of office, or
completion of project
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Unserviceable Property
The property has become unserviceable
for any cause or is no longer needed.
Reference: Sec. 79 of PD 1445
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Creation of the
Disposal Committee
•Disposal Committee
•Functions
•Secretariat and Technical Staff
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Disposal Committee
Chairman – Senior Official with a rank not
lower than Assistant Secretary
for a department and Assistant
Director for a bureau/ agency or
department manager for a
GOCC.
Reference: Executive Order No. 309 dated March 8, 1996; re: RECONSTITUTING THE DISPOSAL
COMMITTEE CREATED UNDER E.O. NO. 285
Disposal Committee
Members
• Head of Administrative Unit;
• Head of Property Unit
Reference: Executive Order No. 309 dated March 8, 1996; re: RECONSTITUTING THE DISPOSAL
COMMITTEE CREATED UNDER E.O. NO. 285
Functions of Disposal
Committee
• Inspect or authorize the department’s/
agency’s field offices to inspect the
unserviceable equipment and property
to verify justification for disposal.
Reference: COA Circular No. 83-206 dated May 23, 1983, re: EO 888 dated March 18, 1983
Functions Disposal
Committee
Set the final appraised value of all
disposable property considering:
- Obsolescence
- Market demand,
Reference: COA Circular No. 83-206 dated May 23, 1983, re: EO 888 dated March 18, 1983
Functions Disposal
Committee
Set the final appraised value of all
disposable property considering:
- Physical condition, and
- Result of previous biddings for
similar property
Reference: COA Circular No. 83-206 dated May 23, 1983, re: EO 888 dated March 18, 1983
Functions Disposal
Committee
Recommend to the Minister or Head of
Ministry/Agency for approval, the manner
of disposal taking into consideration the
pertinent provisions of the Revised
Administrative Code and the National
Auditing Code;
Reference: COA Circular No. 83-206 dated May 23, 1983, re: EO 888 dated March 18, 1983
Functions Disposal
Committee
Conduct public biddings for the sale
of disposable property on an “AS IS”
‘WHERE IS” basis and to recommend
corresponding award;
Reference: COA Circular No. 83-206 dated May 23, 1983, re: EO 888 dated March 18, 1983
Functions of Secretariat
and Technical Staff
Manned from existing personnel of the
Ministry/Agency
To handle the Committee’s technical and
administrative matters
Safekeeping and systematic filing of Committee
documents and records
Reference: COA Circular No. 83-206 dated May 23, 1983, re: EO 888 dated March 18, 1983
Documentation
Inventory and Inspection Report of
Unserviceable Property Annex A
INVENTORY INSPECTION
Name and Signature Name/Signature-Head of the Accounting Unit Name and Signature of Inspector
Position and Designation Position and Designation Position and Desigantion Name and Signature of Witness
APPROVED BY:
page 1/2
Inventory and Inspection Report of
Unserviceable Property
◈ The IIRUP is a report prepared by the
Supply and/or Property Unit as basis to
record dropping from the books the
unserviceable properties carried in the
PPE accounts.
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Inventory and Inspection Report of
Unserviceable Property
This report shall be accomplished as follows:
◈As at ______________ – the period covered by the report
◈Entity Name – the name of the agency/entity
◈Fund Cluster – the fund cluster name/code in accordance
with the UACS
◈ Name of the Accountable/Designation/Station – the name,
designation and station of the Accountable Officer
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Inventory and Inspection Report of
Unserviceable Property
Inventory
◈Date Acquired – acquisition date of the PPE
◈Particulars/Articles – description of the unserviceable
PPE
◈Property No. – the assigned number to the
unserviceable PPE
◈Quantity – quantity of unserviceable PPE
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Inventory and Inspection Report of
Unserviceable Property
Inventory
◈Unit Cost – cost per unit of unserviceable PPE
◈ Total Cost – total amount of unserviceable PPE
(Quantity x Unit Cost)
◈ Accumulated Depreciation – accumulated
depreciation of unserviceable PPE
◈ Accumulated Impairment Losses – accumulated
impairment losses of unserviceable PPE 44
Inventory and Inspection Report of
Unserviceable Property
Inventory
◈Carrying Amount – cost less accumulated
depreciation and accumulated impairment losses
◈Remarks – additional information on the unserviceable
PPE such as condition, status, etc.
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Inventory and Inspection Report of
Unserviceable Property
◈Inspection and Disposal
◈ Disposal – the amount per mode of disposal such
as sale, transfer, destruction, etc.
◈ Appraised Value – appraisal assigned by the
agency/entity
◈ Record of Sales – the official receipt number and
corresponding amount for the sales proceeds
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Inventory and Inspection Report of
Unserviceable Property
◈Inspection and Disposal
◈ Disposal – the amount per mode of disposal such
as sale, transfer, destruction, etc.
◈ Appraised Value – appraisal assigned by the
agency/entity
◈ Record of Sales – the official receipt number and
corresponding amount for the sales proceeds
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Guidelines/ Procedures in the
Sale of Property
Pre-bidding Requirements
1. Invitation to Bid
- Name of the Owning Agency
- Sufficient description of the items
- Date, time and place of pre-bidding
conference, if necessary
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MODES OF
DISPOSAL
Modes of Disposal
Destruction or Condemnation of Property
Transfer to Other Government Agencies
Barter
Donation
Sale of Unserviceable Property
Sale thru Public Bidding
Sale thru Negotiated Sale
Condemnation/Destruction
• has no commercial value
• No willing receiver
• hazardous property
• Appraised value is less than the
administrative cost of sale
• Subject to prior inspection by the Auditor
concerned
Transfer to Other Government Agencies
Reference: COA Circular 89-296 dated January 27, 1989 and DBM Manual on
Disposal
Dropping from the Books of
Accounts
◈Accomplish the pertinent portions of
the Inventory and Inspection Report
Unserviceable Property, Waste
Materials Report, whichever is
applicable
Reference: Manual on Disposal of Government Property, DBM
Dropping from the Books of
Accounts
◈Reports shall be the basis for
dropping the property from the books
of accounts and taking up the
proceeds from the sale of the
property.
Reference: Manual on Disposal of Government Property, DBM
Impairment
Impairment is a loss in the future economic benefits or service potential of
an asset, over and above the systematic recognition through depreciation.
Carryin RSA
Impairme (NCGA)
g
or
nt Loss Amoun RA
t (CA) (CGA)
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary Requirements:
EQUIPMENT, MACHINERIES, OFFICE
EQUIPMENT and FURNITURE
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary Requirements:
EQUIPMENT, MACHINERIES, OFFICE
EQUIPMENT and FURNITURE
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary Requirements:
EQUIPMENT, MACHINERIES, OFFICE
EQUIPMENT and FURNITURE
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary Requirements:
EQUIPMENT, MACHINERIES, OFFICE
EQUIPMENT and FURNITURE
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: Aircraft
◈Copy of the in-house or private
company appraisal report
◈Cost and date of acquisition
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: Aircraft
◈Latest copy of Certificate of
Airworthiness from the Air
Transportation Office
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: Aircraft
◈Certificate of Registration
◈Latest service bulletin
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: Aircraft
◈Total hours since last overhaul of
engine
◈Airtime flying hours
◈Time between overhaul
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: Aircraft
◈Certificate of total flying time
◈Colored photographs showing
three sides
◈List of instruments/equipment
accessories installed
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: MARINE
VESSEL
◈Complete technical description of the vessel
to include the following:
a. type of vessel, year built
b. dimensions (length over-all, length
between perpendiculars, breadth, depth)
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: MARINE
VESSEL
c. deadweight/light displacement weight,
net tonnage, and gross tonnage/general
description
d. vessel classification
e. description of propulsion machinery
/engine and Break Horse Power (BHP)
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: MARINE
VESSEL
◈Copy of the in-house or private
property appraisal report
◈Date and cost of acquisition
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: MARINE
VESSEL
◈Copy of Certificate of Philippine
Registry
◈Copy of Certificate of Ownership
issued by the Philippine Coast Guard
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: MARINE
VESSEL
◈Date of last dry-docking and
itemized extent and cost of repairs
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Documentary
Requirements: MARINE
VESSEL
◈Colored photographs showing three
sides
◈List of major equipment and major
accessories on board
Reference: Annex “M” of COA Memorandum No. 2005-027 dated February 28, 2005
Management Responsibilities
◈Conduct inspection of
unserviceable and disposable
government property and other
assets
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