SOP NO: GS-PD14 (List of Exhibits/Attachments)

Mission: Finance and Administration

Area: General Services (GS)

Activity: Purchasing/Inspection and Fixed Asset Disposition (GS-PD)

Title: Revised SOP on the Disposal of Unserviceable Fixed Assets and Materials (Junk
Properties)

Date Approved/Issued: 05/29/1997

Date Effective: 06/01/1997

Digest:

3. Supply Officer (Field Office) -

3.1 Receives properties returned to storage.

3.2 Requests inspection of properties returned and on the basis of the

Property Inspector's recommendation, segregates serviceable items from
those unserviceable ones. Items which are still repairable or usable shall
be repaired/reissued following the procedures on repair/property
issuance. On the other hand, items which are found junk with no resale
value shall be offered for bid or disposed under the other modes of
disposal other than public bidding.

3.3 Forwards to Accounting unit the RRP for the determination of book
value of the junk properties.

3.4 Maintains a separate file of RRP for serviceable/unserviceable

returned properties and assigns separate control number for each.

3.5 Initiates disposal of accumulated unserviceable properties.

Accomplishes the I & I Report indicating therein the required information
on the basis of previously prepared RRP.

3.6 Deletes junk assets from the list of properties insured.

3.7 Prepares Quarterly Report on the Disposal of Unserviceable Fixed

Assets and Materials (Exhibit D) and submits to GSD-C.O.

3.8 Monitors properties and updates inventory records based on

Acknowledgment of Returned Properties, the Inventory and Inspection
Report, and Fixed Assets Issuance Report.

3.9 Receives report on idle properties and relocates the same for
maximum utilization.
4. Property Inspector
4.1 Inspects and certifies condition of the property returned. Indicates on
the RRP recommended action and signs on the inspection report portion
of the ARP.

4.2 Examines properties listed in the Inventory and Inspection Report and
attests to the manner of disposal of the properties.
5. Provincial Manager
5.1 Signs on the Noted By portion of the RRP.

5.2 Approves I & I Report if acquisition cost is P500,000 and below.

5.3 Recommends approval of the I & I Report to the Regional Manager if

acquisition cost is above P500,000.00 to below P1.0 M. Initials the I & I
Report.
 5.4 Upon receipt of the approved I & I Report, activates Provincial
Disposal Committee to undertake the necessary disposal procedures.

5.5 Prepares the necessary papers in connection with the disposal

specified in the confirmation/memorandum order received from the
Regional Manager.

5.6 Heads the Provincial Disposal Committee and informs them of any
approval/confirmation of disposal.

5.7 In the case of disposal thru donation, arranges for the

withdrawal/delivery of the items to the agency institution upon receipt of
approval and confirmation. Prepares Memo to effect withdrawal.

5.8 Coordinates sale thru public bidding/negotiates and prepares the

necessary papers to complete the sale.

5.9 Informs the highest bidder thru a memo of the approval and
acceptance of the bid and arranges full payment.
6. Regional Manager
6.1 Approves the Inventory and Inspection Report if the aggregate acquisition
cost is P 1M and
above.

6.2 Informs the Committee of the approval of the I & I Report/Mode of disposal.

6.3 Returns all copies of approved I & I Report to the Provincial Manager.
Likewise, returns disapproved I & I Report stating reason for disapproval.

6.4 Evaluates committee recommendation regarding the mode of disposal. If

approved, prepares a formal memorandum order to the Disposal Committee thru
the Asst. Regional Manager (R.O.) or the Provincial Manager (P.O.) authorizing
the disposal thru the recommended mode. If disapproved, directs the committee
the mode of disposal to be followed.

6.5 Approves the award of sales and informs the Asst. Regional Manager (R.O.)
or the Provincial Manager/OIC (P.O.) of the approval (refer to Specifications of
Authority in II.4).

6.6 Approves trade-in of old fixed assets for new ones if found to be
advantageous.

6.7 Reviews donation requests. Forwards recommendation for approval to the

Office of the Administrator.

6.8 Approves/disapproves recommendation to destroy unserviceable properties.

7. Accounting Unit/DAS-General Accounting Division
7.1 Determines the book value. Prepares entry to record/reclassify the properties
based on RRP.

7.2 Write-off assets in the books based on the duly approved I & I Report/FAIR.
8. Commission on Audit (COA)
8.1 Witness bid proceedings and signs tabulation.

8.2 Witness the disposal of properties.

8.3 Review the new appraisal value set by the Disposal Committee, in case sale
thru public bidding fails.
9. Disposal Committee (C.O. & F.O.) -
9.1 Inspects the unserviceable properties, equipment and materials for a more
accurate determination of appraised value taking into consideration
obsolescence, depreciation, prevailing resale value, physical actual condition and
result of previous bidding for similar properties. Computation of appraised value
is not limited to DBM or COA guidelines but also on the actual condition and/or
prevailing re-sale value.

9.2 Accepts bids most advantageous to the agency.

 9.3 Advertises items to be bidded in accordance with the policy on bidding.

9.4 Conducts public bidding on an "as is" "where is" basis.

9.5 Receives sealed bids and opens on the specified date and time and in the
presence of the Auditor and participating bidders. Submitted bids must meet
requirement is set.

9.6 Tabulates bids obtained.

9.7 Recommends approval of the award of sale to the highest bidder, together
with the necessary attachments, informs winning bidder on the award of sale.

9.8 Accomplishes the report of sale portion of the 1 & I Report.

9.9 Distributes copies of the I & I Report after final disposal/withdrawal of

properties.

9.10 In the event sale thru public bidding fails, convenes again to review
appreciation. Sets a new appraisal value and seeks suggestion of COA.

9.11 Requires buyers to submit price quotation whenever sale thru public bidding
fails and sale thru negotiated sale is resorted to.

9.12 In case of trade-in, compares trade-value to appraised value at which the

unserviceable/old asset may be disposed of. If acceptable, coordinates trade-in
and prepares necessary documents. Indicates in the "Remarks" portion of the I &
I Report the mode of disposal which is trade-in.

9.13 Arranges for the withdrawal of the items by the trade-in dealer.

9.14 Surveys possible government agencies/government controlled corporations

who may wish to barter assets with the agency. Submits recommendation
regarding the barter agreement.

9.15 If and when the mode of disposal decided upon is donation, surveys
possible agencies/institutions who may be possible users/recipients of the
properties.

9.16 Selects among the possible agencies/institutions considered as recipient.

The committee may allocate the items among the considered recipients.

9.17 Submits recommendation together with a brief backgrounder of the

beneficiaries to the Regional Manager/GSD Dept. Manager.

9.18 Indicates on the I & I Report the donation and distributes copies accordingly.

9.20 Undertakes actual burning of unserviceable assets in the presence of the

designated Property Inspector, and Accounting representative. Indicates on the I
& I Report the mode of destruction and distributes copies accordingly.
All rulings and/or issuances inconsistent herewith are hereby superseded.