1.

Where do we credit the proceeds from the sale for an asset that was originally purchased to a
GF code but has been transferred to a TF code and at the end of the project the assets is
considered surplus and the intention is to dispose of this asset by way of sale.
- The proceeds of sale has to be credited to the original GF code (and activity code).

2. If an asset with '0' net book value is lost, do the custodian has to pay the value? If yes, how is it
calculated?
- As per policy (MS 503.7.) financial loss is calculated based on the net book value. However, the
policy owner (the Director, Finance) has the authority to determine the recoverable amount to
the organization in cases so warranted (such as gross negligence or separated staff failing to
return organizational property), subsequent to a potential OIG inspection as per policy (MS
202.10.6.2).

3. Can FAO donate assets to the Government if the Government is the final beneficiary
- No, as per prevailing policy (MS 503.8.5.) assets can be donated to charitable, educational or
non-profit-making organization (NGO) linked to FAO activities.
- In this case the method to be selected is transfer to final beneficiary.

4. If we have internally transferred an asset from GF code to OT Project code, at the end of the
project can we transfer it to the Government as final beneficiary?
- Yes, at the end of the project assets can be (and should be) disposed of by way of “Transfer to
Government as final beneficiary” as this is a valid type of asset disposal.

5. What is surplus asset?

- A surplus asset is a non-expendable equipment for which there is no foreseeable practical use;
or which is to be replaced; or deemed obsolete; or impaired with excessive costs to repair.

6. When we receive equipment for use by the government for example, can we transfer the
equipment immediately without waiting until the end of the project.
- Yes, it is proper to dispose of such assets by way of transferring the assets to the final
beneficiary.

7. How do we get the donor to approve the transfer?

- The focal point of the donor must be contacted to obtain the approval in writing (email approval
is enough).

8. Can assets be transferred from projects to beneficiaries even if the project document has not
indicated so?
- In case the project document does not contain any provision regarding the treatment of assets
at project closure, then the Donor framework agreement needs to be checked for information. If
there is no reference regarding the treatment of assets at project closure then the focal point of
the donor must be contacted to obtain the approval in writing (email approval is enough).
9. Do we have to do an internal asset transfer if an asset needs to be used by someone else for a
short period of time?
- In this case a Property Loan Form should be completed. The new user of the asset should sign
the Property Loan Form to accept custody of the asset.
-
10. Can we transfer the asset that was purchased for a TCP project to a GF code?
- Yes. In case of TCP projects FAO is the 100% donor.

11. Can we sell expendable surplus items to staff?

- Yes. With regards to expendable items the FAO Representative has the authority to decide the
type of the disposal.

12. Can assets be sold to FAO staff?

- Yes. There is a disposal type “Sale to UN staff”.
Surplus property can be sold to UN Staff provided the following conditions are met:
The office employs at least 20 staff.
The sale is visibly posted such that all employees are informed of the sale.
The sale must not be advertised, and the property must not be handed over, until approval is
obtained from CSF. The approval is arranged as part of the ex-ante validation of all submitted
documents by the FA-Services team.
Project assets cannot be sold unless specified in the project funding document.

13. Some assets are still usable but are already fully depreciated. Shall we dispose them? Could we
continue using them?
- Despite the fact that an asset is fully depreciated (has a ‘0’ net book value) in case it is in a good
condition, the office can continue using it. If considered surplus to the organization, it can be
disposed of. It depends on the decision of the FAO Representative.

14. As security equipment cannot be donated/handed over, how do we dispose security equipment
such as radio based station, handheld radios etc?
- If they are in a good condition, they may be redeployed, ie. they can be transferred to a different
project or they may be sent back to HQ. In case they are in a bad condition, they should be
demolished/destructed in the presence of the field security unit representative / security focal
point. Proof of destruction (minutes, photos) are needed.

15. What happens if the asset is stolen from your home place? Is the staff member supposed to pay
for the assets stolen?
- In case of theft of an asset the incident needs to be reported to the police to obtain a police
report. Then within 3 days the staff member needs to report the incident to his/her supervisor
and FAO representative by completing the ADM83 form (Report on Loss or Theft) providing the
circumstances of the theft. As soon as the ADM83 form is signed by the FAO Representative, the
documents together with a Disposal Request need to be submitted to FA-Services. The
 authorized approver has the authority to decide on eventual financial liability. The staff member
is not held liable in the unfortunate case of a home burglary, or in other theft cases when the
incident was beyond the control of the staff member.

16. In which case can individual sale be selected as a type of disposal?

- Disposal type “Sale of individual assets” can be used if the assets are surplus to the organization
and the intention is to request a quote / bid individually for the surplus items (as opposed to
assets being sold in a bulk in which case one quote / bid is requested for several assets
together).

17. Is there travel insurance only for laptops?

- Laptops if included in the TA prior to official travel are insured during the official travel.
- If so requested by the traveller other assets may be insured by including them in the TA prior to
official travel.
- If any further assistance is needed please contact: Travel-Services@fao.org
Link to Travel handbook:
http://intranet.fao.org/faohandbook/area/travel/insurance_coverage/

18. Can FAO organize an auction instead of joining the UNHCR organized auction, especially vehicles
sales?

- Yes, the method of disposal is determined by the FAO Representative or Head of Office at each
Decentralized Office. As such FAO office may organize an own auction, however it is worth
considering all administration burden and related costs (advertisement, auctioneer’s fee etc.)
when making this decision.

19. What are some of the assets that can be auctioned to FAO staff?

- Any surplus property (with the exception of security assets) can be sold to UN Staff. Surplus
property is a non-expendable equipment for which there is no foreseeable practical use; or
which is to be replaced; or deemed obsolete; or impaired with excessive costs to repair. A few
examples: IT or telecommunication equipment, printers, furniture, office equipment etc.

20. It is possible to have a property loan form signed by the receiver before the asset is paid and it
appears in the Asset Registry?

- Yes, it can be but in this case the asset does not have an asset number. As such the serial
number should be inserted on the form. Once the asset is paid and it appears in the Asset
Registry and an asset number is assigned, then it may be inserted on the form for ease of
reference and tracking.
21. The insurance only covers the laptop if there is a TA involved. What happens when there is a
field visit in the same city without a TA?

- According to the rules described in the Travel section of the Handbook, laptops are only insured
if they are registered in the TA.