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TABLE OF CONTENTS

APPRAISAL GUIDELINES..........................................................................................
1.0 OBJECTIVES....................................................................................................
2.0 SCOPE and LIMITATIONS.................................................................................
3.0 DEFINITION OF TERMS...................................................................................
4.0 GENERAL GUIDELINES....................................................................................
4.1
Documentation.....................................................................................................................3
4.2
Conduct of Inspection..........................................................................................................4
4.3
Determination of Condition Rating of Property...................................................................6
4.4
Conduct of Appraisal............................................................................................................8
4.5
Determination of the Appraised Value.................................................................................9
5.0 REVISED FORMULAE ON APPRAISAL OF GOVERNMENT PROPERTIES
EXCEPT REAL ESTATE, ANTIQUE PROPERTY AND WORKS OF ART...................
Illustrative Examples............................................................................................
TABLES.................................................................................................................................................17
TABLE 1.
COMPONENT RATING TABLES
18
TABLE 2.
TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY, PLANT
AND EQUIPMENT
23
TABLE 3.
TABLE OF PESO/DOLLAR EXCHANGE RATES...............................25
ANNEXES..............................................................................................................................................26
ANNEX A.................................................................................................................................27
ANNEX B.................................................................................................................................29
ANNEX C.................................................................................................................................30
ANNEX C1...............................................................................................................................32
ANNEX C2...............................................................................................................................35
ANNEX D.................................................................................................................................38
ANNEX E..................................................................................................................................39
ANNEX F..................................................................................................................................41
APPRAISAL GUIDELINES
1.0

OBJECTIVES
1.1

1.2

2.0

To achieve uniformity and consistency in the conduct of


appraisal of government property for disposal;
To promote facility in the computation of appraised values;

1.3

To attain more realistic valuations of property under disposal


based on the actual state or condition of properties being disposed of;
and

1.4

To provide a reliable basis of ensuring that government


recovers a fair return from the disposal of its properties.

SCOPE and LIMITATIONS

These guidelines describe the general procedures in the appraisal of


government properties for disposal of National Government Agencies and
Instrumentalities, Local Government Units and Government-Owned and/or
Controlled Corporations and their subsidiaries, except works of art, antique
property and real estate. Antique property and works of art shall be appraised by
the National Museum, and real estate shall be appraised under a separate set of
guidelines.

3.0

DEFINITION OF TERMS

Acquisition Cost (AC) the price at which the property was acquired which
also
includes
related
expenses
incurred
during
the
acquisition/construction of the property such as taxes, license fees,
permit fees, clearance fees, etc.
Appraised Value (AV) an opinion of an appraiser which is based upon an
interpretation of facts and beliefs into an estimate of value, as of a stated date.
Condition Factor (CF) the adjustment factor used to consider the actual
condition of the property under appraisal thru an evaluation of the
state or condition of the major components of such property relative
to an ideally functioning model. The condition factor is usually
estimated based on the component and condition rating of the
property.
Currency Fluctuation Factor (CFF) refers to the adjustment factor used
to take into account the devaluation or revaluation of the peso from
the year of acquisition to the year of appraisal.
Current Market Value (CMV) is the price estimated which a property will
bring if exposed for sale in the open market, allowing a reasonable
time to find a buyer who buys with knowledge of the actual condition
and utility of the property.
Deterioration reflecting the loss in value brought about by wear and tear,
disintegration, use in service and the action of the elements.
Economic Obsolescence reflecting the loss in value brought about by
external economic forces, such as legislative enactments restricting or
impairing the use of subject equipment
Effective Remaining Useful Life (ERUL) refers to the number of years
from the date of appraisal to the anticipated date that a property may
be utilized profitably.
Estimated Useful Life (EUL) refers to the estimated period of time (years)
for which a property is anticipated to be useful assuming normal
utilization. See Table 2 for Table of Estimated Useful Life.
Functional Obsolescence reflecting loss in value due to functional
inadequacy or over adequacy due to size, style or age brought about
by changes in art or poor planning.
Junk/Scrap Value the price of scrap/junk metal or lumber prevailing in
the local market.
Locally Manufactured Properties refers to the properties which are one
hundred percent (100%) sourced locally and no part of which is
imported from other countries.
Price Index Factor (PIF) refers to the adjustment factor which reflects the
changes that occur in the prices of commodities, raw materials,
manufactured goods and the like from the year of manufacture to the
year of appraisal. (Source: National Statistics Office]
Replacement Cost New (RCN) the cost of construction at current prices of
a property having a utility equivalent to the property being appraised
but built with modern materials and according to current standards,
design and layout. The use of the replacement cost concept
presumably eliminates all functional obsolescence, and the only

depreciation to be measured is physical deterioration and economic


obsolescence.
Salvage Value the amount that could be realized from the sale of a
component/part of an asset to be removed for use, wholly or in part,
elsewhere.
Sound Value a measure of value widely used by valuers and appraisers, is
derived from replacement cost new (RCN), adjusted to the observed
condition of the property for appraisal.
4.0

GENERAL GUIDELINES
4.1

Documentation

4.1.1

Before the appraiser commences the inspection of property to be


appraised, he has to check whether the corresponding form for
disposal has been properly accomplished.
The forms used for
disposal are:
a) Inventory and Inspection Report of Unserviceable Property
(Annex A)
This form is used for the disposal of vehicles, office equipment,
furniture, and other properties, plant and equipment which can no
longer be repaired or reconditioned and whose maintenance cost of
repair outweighs or is more than the benefits and services that will be
derived from its continued use. When accomplished, this form
should contain the list of valuable parts of the article or equipment
which possesses intrinsic value or which may be useful in making
repairs to other articles or equipment. This form should also contain
the list of missing parts, if any, which should be accompanied by a
certification of the property officer or custodian as to whether the
missing parts were removed for future stock or have been utilized
already for repair purposes.
b) Waste Materials Report (Annex B )
This form shall be used to report all waste materials previously
taken up in the books as assets so that they may be properly
disposed of and dropped from the accounts.
This form is used in the disposal of waste materials which result
from the consumption or utilization of expendable materials, and
covers damaged equipment parts, empty containers, and remnants
salvaged from destroyed or damaged property, plant and equipment.

4.1.2

The appraiser shall likewise accomplish the Checklist for


Unserviceable Equipment. This Checklist for Unserviceable
Equipment shall indicate the individual component/part of the
equipment with their condition, whether serviceable, unserviceable,
missing, etc.
The agency could device their own form most
appropriate to the equipment for appraisal. (See Annex C and D for
the Checklist for Unserviceable Equipment)

4.1.3

If the property to be appraised is no longer available for


inspection, as in the case of lost or burned equipment for which
accountability is being assessed, the appraiser shall forego the ocular
inspection, and proceed to the next succeeding appraisal step.

4.2

Conduct of Inspection
In the conduct of the inspection of the property to be appraised, the
appraiser shall perform the following, where applicable:

4.2.1

Identify the property in accordance with its descriptions in the


inventory list or directive.

4.2.2

Verify stated ratings, capacity, model, year of manufacture, serial


number, chassis number, motor number and other technical
specifications, and accessories, if any.
4.2.3
Determine the correct date when property has been acquired or its
present age/number of years property has been actually used or
operated.
4.2.4
Check the condition of the property; determine whether operational,
under repair, or irreparable.
4.2.5 Check for the damaged, worn-out or missing parts. Careful
determination of its present physical condition shall serve as
basis for its depreciation and correct evaluation/valuation.
4.2.6
Determine if property is economically repairable and the most
probable cost of its repairs, and current cost of spare parts.
4.2.7
Determine the extent of use, mileage, rate of depreciation, and
any excessive wear and tear.
4.2.8
Determine quality or degree of maintenance, repair, restoration
or upgrading made, check logbook, if available.
4.2.9
See if property is obsolete or is still being manufactured and if spare
parts are still procurable in the market. If property is found obsolete,
appraise the property as junk.
4.2.10 Determine whether property still has market demand; or the existence
of probable buyers in the locality.
4.2.11 See if property is sheltered or exposed to elements and theft.
4.2.12 Inspect the location of the properties and the available facilities for its
transportation.
4.2.13 If property is to be disposed of as junk, determine parts which could be
salvaged or profitably used such as engine, dynamo, wheels, tires,
axles, body/chassis, etc. of motor vehicles.
These salvaged parts could either be transferred to or used by other
equipment or shall serve as its spare or standby parts.
In cases where there are no equipment which could make use of these
salvaged parts, determine if there are available buyers of these parts
and if disposing them separately from the equipment would bring the
best returns to the agency.

The objective of the inspection is to supplement theoretical


computations of value with first hand observation of the condition of
the property. The depreciation mentioned here refers to observed
depreciation to distinguish the results of personal inspection from
those of theoretical estimates.
4.3

Determination of Condition Rating of Property

4.3.1 The condition rating of the property is obtained based on the


following:
Very
Good
(VG) This term describes a property in excellent
condition capable of being used to its fully
(80-100%)
specified utilization for its designed
purpose without being modified and not
requiring
any
repairs
or
abnormal
maintenance at the time of inspection or
within the foreseeable future

Good
Condition
(55-75%)

(G)

This term describes a property which has


been modified or repaired and is being used
at or near its fully specified utilization, but
the effects of age and/or utilization indicate
that some minor repairs have to be made or
that the item may have to be used to some
slightly lesser degree than its fully specified
utilization in the
foreseeable future.

Fair
Condition
(35-50%)

(F)

This term describes a property which is


being used at some point below its fully
specified utilization because of the effects
of age and/or utilization and which require
general repairs and some replacement of
minor
elements/components
in
the
foreseeable future to raise its level of
utilization to or near their original
specifications.

Poor
Condition
(15-30%)

(P)

This term is used to describe a property


which can only be used at some point well
below its fully specified utilization and it is
not possible to realize full capability in its
current condition without extensive repairs
and/or replacement of major elements in
the very near future.

Scrap Condition
(0-10%)

(S)

This term is used to describe a property


which is no longer serviceable and which
cannot be utilized to any practical degree
regardless of the extent of the repairs or
modifications to which they may be
subjected (beyond economical repair). This
condition is for properties which have used
up 100 percent of their useful life or which
are
100
percent
technologically
,
functionally, economically or statutorily
obsolete

The above Guidelines in Observing Condition of Property were adopted from


the American Appraisal Company, Michigan, and U.S.A.
4.3.2 The gap in percentage allocation is aimed at delineating the factors
between condition categories. The 4% difference in each case clearly
sets the limits of percentage range.
4.3.3

The percentage range within each category allows the appraiser some
discretion in assigning a percentage based on his observation.

4.3.3

The condition rating is the weighted average of the individual


component rating.
-

For furniture and non-mechanized implements which have no


major components but are treated as a whole unit, condition
factor shall be equal to the condition rating of the unit itself.

Example:
Condition Rating
Condition Factor
-

Very Good
0.8 to 1.0

With respect to vehicles, mechanized equipment, etc. which are


made up of several components, the condition factor is the sum
of condition rating x % weight for all components. See Table 1 for
the component rating of vehicles, heavy equipment, window type
air-conditioning unit, manual typewriter and dental equipment.
These component ratings were derived from the price of each

component in relation to the total price of the property expressed


in percentages.
-

4.4

In the case of property which is no longer available for


inspection, as in the case of lost or burned equipment for which
accountability is being assessed, the condition factor shall be
assumed to be 1.0.

Conduct of Appraisal
The Appraisal Process in general consists of:

4.4.1

conducting an ocular inspection of the property to be appraised to


assess its physical condition and to determine condition rating.

4.4.2

seeking reference price information such as:


- acquisition cost, or
- current market price of similar property, or
- replacement cost for a similar new property;
prices from second hand rebuilders and reconditioners of machinery,
cars or equipment;
currency exchange rates for acquisition year and current year.

4.4.3

computing the appraised value by following the revised formulae


on appraisal of government properties except real estate, antique
property and works of art contained in Section 5.0 hereof, which
will take into account the:
- propertys actual physical condition,
- the relevant reference price information,
- expected useful life of the property, and
the changes in the value of the property
caused by depreciation,
obsolescence, and those caused by changes in the value of the
exchange currency, the peso, and also appreciation in the value of
the property occasioned by the reconditioning, major repair or
upgrade
of the property as well as favorable changes in the
exchange value of the Philippine peso.

4.5

Determination of the Appraised Value

4.5.1

Unserviceable property which can no longer be repaired or


reconditioned and waste materials shall be appraised at scrap or junk
value.

4.5.2 For unserviceable property which can still be repaired or reconditioned,


and property no longer needed which are still functional, shall be
appraised based on the following:
4.5.2.1

It shall be appraised on the Current Market Value


(CMV), if such is available.

5.0

4.5.2.2

If CMV is not available, it shall be appraised at its


Replacement Cost New (RCN).

4.5.2.3

If CMV and RCN are both not available, the property


shall be appraised at its Acquisition Cost (AC). If the
property at the time of acquisition is brand new,
adjust against observed condition at the time of
appraisal. If the property was acquired second hand,
condition at date of acquisition must be defined before
any adjustment is made.

4.5.3

The determination of Salvage Value of component/part of an asset


found to be serviceable shall be based on the hierarchy under 4.5.2
above.

4.5.4

For imported vehicles/mechanized equipment, each component that


has no available local replacement shall be treated as junk exclusive
of the other components which are available in the domestic market.

REVISED FORMULAE ON APPRAISAL OF GOVERNMENT PROPERTIES

EXCEPT REAL ESTATE, ANTIQUE PROPERTY AND WORKS OF ART

5.1

When property is still operational/functional or can be repaired:


5.1.1

When Current Market Value of a comparable property is


available

CF 1
AV = CMV x

CF 2

where:
AV
CMV
CF1

Appraised Value

Current Market Value

Condition Factor of the Property being


appraised
CF2
Condition Factor of the Advertised/ Canvassed
Property
When CMV, RCN and AC are all available, CMV shall be
adopted in the computation of the Appraised Value. The CMV
shall be taken from advertised prices of used equipment of the
same make and model or similar models from newspapers,
publications of associations, etc. of general circulation. There
should at least be two (2) advertised prices for similar properties,

the lowest of which shall be considered as CMV in the


computation of the AV.
5.1.2

When Replacement Cost-New is available - this formula shall


only apply if CMV is not available.
a. When the Estimated Useful Life (EUL) of the property is
available

AV = RCN x

ERUL

EUL

where:

RCN Replacement Cost - New


ERUL Effective Remaining Useful Life
EUL
Estimated useful Life (Table 2)

where:

b. When the Estimated Useful Life (EUL) of the property is not


available
AV = RCN x CF

RCN
CF
5.1.3

Replacement Cost - New


Condition Factor of the Property
being appraised
When Acquisition Cost (AC) is available, the cost indicated in
the Property Acknowledgement Receipt (PAR) shall be
recognized as AC if the Purchase Order/Invoice are no longer
available. However, if the PAR indicates, among others, that
the property acquired is second hand (not brand new), the
appraiser shall consider the additional expenses incurred, if
any, for the reconditioning/rehabilitation of said property.
a. For Imported Properties
AV = (AC x CFF) x CF

where:
AC

Acquisition Cost

CFF

Currency Fluctuation Factor


P/dollar exchange rate on year of
appraisal

CFF

CF

Condition Factor of the Property

P/dollar exchange rate on year of


acquisition

b. For locally Manufactured Properties - this formula shall


apply to properties which are one hundred percent 100%

sourced locally and no part of which is imported.


Furniture, steel cabinets, etc.)
AV

where:

(Ex.

(AC x PIF) CF

PIF

Price Index Factor

PIF

Price Index on year of Appraisal


Price Index on year of Acquisition

(Source of Price Indices


5.2

: National Statistics Office, NSO)

For waste materials and property which are unserviceable and can no
longer be repaired/reconditioned - the end user shall determine the
unserviceability of the property and shall be supported with the
History Card/record and Checklist of Unserviceable Vehicles/Heavy
Equipment.
AV = Junk Value

where Junk Value is based on prevailing price of


metal or lumber, whichever is appropriate.

scrap

Canvass for the current market price per unit weight and
multiply by the actual weight of the waste
materials/property to get
the appraised value.
Computers and their peripherals shall be appraised based on
their junk value due to obsolescence brought
about
by
the
rapid
change and development in the industry.
Illustrative Examples
A. When Current Market Value (CMV) of a comparable property is available
Given: Based on the data contained under the Inventory and
Inspection Report of Unserviceable Property (Annex A1)
Property Description:
Mitsubishi L-200 D/Cab Pick-up, Diesel Fed Model 1995, Silver Gray,
Loaded, w/Stepboard & Bedliner
Plate No. UFC 963, Engine No. 4D56A-D5940
Chassis No. K14TJUNSL-010751
Acquisition Date: AD = December 16, 1995
Acquisition Cost: AC = P495,000.00
Date of Appraisal: June 26, 2000
Solution:
CF1
AV = CMV x
CF2
CMV = P209,000.00
Advertised Prices (similar brand and year model from Used
Car Dealers):

10

a) P209,000.00
b) P260,000.00
c) P285,000.00
CF1 = Condition Factor of subject property
CF2 = Condition Factor of comparable property
CF1 (see attached check list of subject property, Annex C1)
Component

% Weight

CF

23

0.80

0.1840

Transmission

0.90

0.0630

Differential

0.90

0.0450

Body/Chassis

35

0.75

0.2625

Others

30

0.75

0.2250

Engine

Total:

0.7795

CF2 (see attached check list of comparable property, Annex C2)


Component

% Weight

CF

23

0.60

0.1380

Transmission

0.85

0.0595

Differential

0.85

0.0425

Body/Chassis

35

0.70

0.2450

Others

30

0.40

0.1200

Engine

Total:

0.6050

Thus:
0.7795
AV = (P209,000.00)

1)

= P269,282.00
0.6050
B. When Replacement Cost New (RCN) is available
When the Estimated Useful Life (EUL) of the property is
available
Given:
Same vehicle/property used in the above CMV method
Solution:
To determine RCN of the vehicle under appraisal:
The cost of brand new engines for the vehicle available in the
market is P100,000.00/unit. Therefore:
%
Component
weight
Engine

23

0.23(P100,000.00)
0.23

Transmission

0.07(P100,000.00)
0.23

30,435.00

Differential

0.05(P100,000.00)
0.23

21,739.00

Body/Chassis

35

0.35(P100,000.00)
0.23

152,174.00

Others

30

130,435.00

0.30(P100,000.00)
0.23

100,000.00

11

say:

434,783.00
435,000.00

Add Cost of Assembly,OCM:


65,000.00
RCN =
P 500,000.00
Note: If there are available price data in the market for the other components,
use the market data of said components rather than the ratio and
proportion applied above.
Component

% weight

ERUL

EUL

Engine

23

0.1971

Transmission

0.0600

Differential

0.0430

Body/Chassis

35

0.2500

Others

30

0.2140
0.7641

AV = (P500,000.00) 0.7641
AV = P382,050.00
2)
When the Estimated Useful Life (EUL) of the property is not available
Given: Same vehicle/property used in the above CMV Method
Solution:
AV

RCN x

CF

where:
RCN = P500,000.00 (from B.1 above)
CF

0.7795 (from CMV Method above)

AV

P500,000.00 x 0.7795

AV
=
P389,750.00
C. When Acquisition Cost (AC) is available
For imported properties: Acquisition Cost Method
AV =

AC x CFF x CF

where:
CFF =

Currency Fluctuation Factor


=
P/$ exchange rate on year of appraisal
P/$ exchange rate on year of acquisition
40
=

= 1.56
25.7144

CF
AV

=
=

0.7795
(P495,000.00) (1.56) (0.7795)

12

AV

P601,930.00

D. Other Cases:
1) When the property/subject vehicle is lost for which
accountability is being assessed
CF1
AV = CMV x
CF2
1
AV

= P209,000.00 x
0.6050

where : CF1 = 1 (condition factor when subject property is lost


under sec. 4.1.3)
AV = P345,455.00
2) When the component, such as engine unit, of the above vehicle
under appraisal is missing/salvaged:
0.7795 0.1840
AV = (P209,000.00)
0.6050
0.5955
AV = (P209,000.00)
0.6050
AV = P205,719.00
where:
0.1840 = over-all CF of the engine unit of the subject
vehicle
3) When the engine unit is beyond economic repair and is
considered junk/scrap:
CF1 0.1840
AV = CMV x
CF2

+ junk value of the


engine unit

where:
junk value
= Estimated weight scrap/junk value
engine unit of Engine
of metal as canvassed

500 kilos (P5.00)

13

junk value
engine unit

P 2,500.00

where:
P5.00

= prevailing market value of metal

0.5955
AV = (P209,000.00)

+ P2,500.00
0.6050

=
AV =

P205,719.00 + P2,500.00
P208,219.00

TABLES

14

TABLE

1. COMPONENT RATING TABLES

(Source: NIA; Bureau of Equipment; USIPHIL; Monark; Maxima)


Type

A.

VEHICLES
Engine
Body and Chassis
Transmission
Differential
Others

23
35
7
5
30

B.

PASSENGER BUS
Body and Chassis
Engine
Transmission
Differential
Others

41
25
7
5
22

C.

HEAVY EQUIPMENT
Grader
Body and Chassis
Engine
Transmission
Others

35
25
20
20

Bulldozer
Body and Chassis
Engine
Differential
Transmission
Others

35
25
11
8
21

Dump Truck
Body and Chassis
Engine
Differential
Transmission
Others

6 Wheeler
35
25
11
8
21

10 Wheeler
25
19
14
9
33

Type

Crane Crawler

Concrete Mixer
Engine
Mixing Drum
Body/Chassis/spring/tires/etc.

45
35
20

Engine
Upper Machinery
Track group
Body/chassis
Others, boom bucket, acc.

25
30
25
10
10

Crane Truck Mounted


Engine (2)
Upper Machinery
Track group
Body/chassis
Others, boom bucket, acc.

35
25
20
10
10

Loader with Backhoe


Engine
Transmission
Body Chassis
Bucket, backhoe, tires & hydraulic

25
20
30
25

Loader
Engine
Transmission
Body Chassis
Bucket, tires, hydraulic
Excavators/Backhoe
Engine
Hydraulic System
(cyl., valves, hose, pipings)
Track group
Body, frame, arms & boom
others, bucket, etc.
Farm Tractor
Engine

Wheel
25
20
35
20

25
25
25
25

30

Crawler
30
25
15
30

Transmission
Body Chassis
Others, tires & attachment

25
20
25

Type

Truck Tractor
Engine
Transmission
Differential (tandem)
Body Chassis
Others, tires, spring, elect., etc.

30
10
10
25
25

Trailer for Jeep


Body, chassis
Wheel, tires, axle

80
20

Trailer for Truck Tractor 25 tons Capacity


Body Chassis
60
Wheel, tires, axle
40
Road Roller
Engine
Transmission
Drum
Body Chassis

1 Drum
50
20
15
15

Roller Vibratory
Engine
Transmission
Drum
Body Chassis

2 Drum

40
20
25
15

40
20
25 (including hydraulic system)
15

Tractor Crawler
Engine
30
Transmission Steering (Front Drive) 25
Track group
30
Body Chassis/dozer
15
Forklift
Engine
Transmission
Body/Chassis
Hydraulic, Tires &
Others
D.

Pneumatic Roller
40
25
20 (Tire)
15

35
10
25
30

AIRCONDITIONING UNIT (WINDOW)

E.

Compressor
Condenser
Evaporator
Fan Motor
Filter/Drier
Others
Type

41
14
12
20
3
10
%

TYPEWRITER (MANUAL)
Carriage Assembly
Type Basket Mechanism
Keyboards
Others

48
35
11
6

F.
DENTAL EQUIPMENT
Dental Unit & Chair
62
Air Scaler
14
Air Motor
14
Compressor HP
5
High Speed
3
Dental Stool
2
G.

MOTORCYCLE
Engine
23
Clutch, transmission,
35
sprocket & chain
Body/Chassis, shock
30
absorber & tank
Others, wheel tires,
12
electrical
H.

OTHERS
Concrete Vibrator
Engine
Vibrator
Pump

Engine
Pump

Generating Set
Engine

85
15

65
35
60

Generator
Welding Machine
Engine
Generator

40

60
40

Type

Air Compressor
Engine
Compressor
Body & Others

50
30
20

Chainsaw
Engine
Saw, etc.

80
20

Computers, tools and devices, furniture and fixtures are


appraised based on their scrap value, thus, component rating is not
applicable.

TABLE 2. TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY,


PLANT AND EQUIPMENT per COA Circular No. 2003007 dated December 11,2003
TABLE OF ESTIMATED USEFUL LIFE
OF PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment


Land

Improvements
Land Improvements
Runways/taxiways
Railways
Electrification, Power and Energy
Structures
Buildings - those that are predominantly
Wood
Mixed
Concrete
Leasehold Improvements (Note I)
Land
Building
Wood
Mixed
Concrete
Office, Equipment, Furniture and Fixtures
Office Equipment
Furniture and Fixtures
IT Equipment-Hardware
Library Books
Machineries and Equipment
Machineries
Agricultural, Fishery and Forestry
Airport Equipment
Communication Equipment
Construction and Heavy Equipment
Firefighting Equipment and
Accessories
Hospital Equipment
Medical, Dental and Laboratory Equipment

Estimated
Useful
Life (in
years)
10
20
40
10
10
20
30
10
10
20
30
5
10
5
5
10
10
10
10
10
7
10
10

Military and Police


Equipment
Sports Equipment
Technical and Scientific Equipment
Other Machineries and Equipment
Transportation Equipment
Motor Vehicles
Trains
Aircraft and Aircraft Ground
Equipment
Watercrafts
Other Transportation Equipment
Other Property, Plant and
Equipment
Note
I-

10
10
10
10
7
10
10
10
10
5

The estimated useful life shall depend on the length of the lease.
It shall be the period of the lease or the estimated useful life of
the assets, as given, whichever is shorter.

TABLE 3.

TABLE OF PESO/DOLLAR EXCHANGE RATES

YEAR

PESO/DOLLAR

1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990

3.8081
3.8997
3.8998
3.9009
3.8954
3.9152
3.9158
3.9191
3.0246
3.4317
3.6748
3.7562
3.7878
3.2478
3.4402
3.4432
3.3781
3.3776
3.5113
3.8995
3.5399
14.0010
18.0000
19.0000
20.4360
20.6000
21.0947
22.3351
28.0000

1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002

27.4786

25.3451
27.0940
26.9514
25.7144
26.2157
34.2410
34.8081
40.8931
39.0890
44.1938
50.9927
51.6040

27.89,

2003

ANNEXES

ANNEX A

INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY


(IIRUP)

INSTRUCTIONS
A. This report shall be accomplished as follows:
1. As of - period covered by the report
2. Letter Head and logo of the agency
3. Fund - fund name/code

B.

The "INVENTORY" portion shall be accomplished by the Property


Unit. While the "INSPECTION" portion shall be accomplished by a
Technical Inspector where technical knowledge is needed for the

ANNEX C
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type____________________Prop.No.__________
Unit Serial No._________________________Engine Serial No. __________
Acquisition Cost_____________________________Date__________________
Date Reported as Unserviceable ____________________________________
LEGEND:
S = Serviceable
M = Missing
ENGINE:
Operating Condition
Injection Pump Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto
Distributor Assembly
2/cap , rotor
Wiper Assembly
Headlight Assembly
Stop & Tail Light Assy.
Directional Light Assy.
(front & rear)
Battery
CLUTCH ASSEMBLY

X = Unserviceable
NA = Not Applicable
SUSPENSIONS:
FrontSpringAssembly
RearSpringAssembly
WHEELS:
Tires Front
Tires Rear
Spare Tire
PROPELLER SHAFT ASSY.:
Front
Rear
DIFFERENTIAL ASSY.:
Front
Rear
FINAL DRIVE
Sprocket Assembly
Drive Chain
UNDERCARRIAGES:
Track Link Assembly
Idler Assembly
Track Adjuster Assy.
Track Roller Assy.
Carrier Roller Assy.
TORQUE CONVERTER

CUSHIONS:
BODY/CAB/FENDERS
Front Seat
CHASSIS/FRAME
Rear Seat
WINDSHIELD
Operators Seat
FUEL TANK ASSEMBLY
GAUGES:
HYDRAULIC SYSTEM:
Hour/Service Meter
Hydraulic Pump Assembly
Speedometer
Hydraulic Motor Assembly
Tachometer
Hydraulic Hoses
Temperature Gauges
Control Valve Assembly
(water)
Hydraulic Cylinders
Oil Pressure Gauges
Converter oil Temperature
TRANSMISSION ASSEMBLY
Gauges
TRANSFERCASE ASSEMBLY
BRAKE SYSTEM:
WINDSHIELD
Master Cylinder Assembly
FUEL TANK ASSEMBLY
STEERING SYSTEM:
Power Steering System
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Riper Assembly
Cutting Edges
End Bits
Dragline Bucket
Clamshell Bucket
Backhoe Bucket
Ditching Bucket
Fairlead assembly
Tagline Assembly
(for crane)
(for crane)
Compressor
Cables
Boom Assembly
Boom Pulley
Lifting Block
Others
REMARKS:
Inspected by:
(NAME)

(DESIGNATION)

ANNEX C1
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type Mitsubishi L-200 Prop.No. Plate No. UFC - 963
Unit Serial No.
K14TJUNSL-010751
Engine Serial No. 4D56-D5940
Acquisition Cost
P 495,000.00
Date
December 16, 1995
Date Reported as Unserviceable _____________________________________
LEGEND:
S=
M=

Serviceable
Missin
g

ENGINE:
Operating Condition
Injection Pump
Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto
Distributor Assembly
2/cap , rotor
Wiper Assembly

X =

Unserviceable

NA =

Not Applicable

SUSPENSIONS:
S

FrontSpringAssembly

RearSpringAssembly

S
S

WHEELS:

S
S
S
S

Tires Front
Tires Rear
Spare Tire

S
S
S

NA
NA

PROPELLER SHAFT ASSY.:

NA
4

Front
Rear

NA
S

DIFFERENTIAL ASSY.:
Front
Rear

NA
S

NA

S
S

FINAL DRIVE

NA
NA

Sprocket Assembly
Drive Chain

NA

UNDERCARRIAGES:

NA

NA
NA

Headlight Assembly
Stop & Tail Light Assy.
Directional Light Assy.
(front & rear)
Battery
CLUTCH ASSEMBLY
CUSHIONS:
Front Seat
Rear Seat
Operators Seat
GAUGES:
Hour/Service Meter
Speedometer
Tachometer
Temperature Gauges
(water)
Oil Pressure Gauges
Converter oil Temperature
Gauges

BRAKE SYSTEM:
Master Cylinder
Assembly

S
S
S
S

Track Link Assembly


Idler Assembly
Track Adjuster Assy.
Track Roller Assy.
Carrier Roller Assy.
TORQUE CONVERTER
BODY/CAB/FENDERS

NA
NA
NA
NA
NA
NA
S

WINDSHIELD (Front)
FUEL TANK ASSEMBLY
HYDRAULIC SYSTEM:
Hydraulic Pump Assembly
Hydraulic Motor Assembly
Hydraulic Hoses
Control Valve Assembly
Hydraulic Cylinders

S
NA

S
S
S
NA
S
NA
S
S

TRANSMISSION ASSEMBLY S
NA

TRANSFERCASE ASSEMBLY
NA
WINDSHIELD (rear)

FUEL TANK ASSEMBLY

STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Cutting Edges
Dragline Bucket
Backhoe Bucket
Fairlead assembly
(for crane)
Compressor
Boom Assembly
Lifting Block

NA
NA
NA
NA
NA

NA
NA
NA
NA
NA
NA
NA
NA

Riper Assembly
End Bits
Clamshell Bucket
Ditching Bucket
Tagline Assembly
(for crane)
Cables
Boom Pulley
Others

NA
NA

NA
NA
NA
NA
NA
NA

REMARKS:
Fuel Injection Assy - for minor overhaul
Left Rear Side & Rear Bumper - with dents and scratches
Body of unit needs paint wash-over
Odometer Reading = 69,000 kms

Inspected by:
JUAN DELA CRUZ

(NAME)
Sr. TAS

(DESIGNATION)

ANNEX C2
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type L-200 1995 Model Prop.No. Plate No. UDR - 680
Unit Serial No. K14TYPSDE-839716 Engine Serial No.4D56-D6785
Acquisition Cost
P 495,000.00
Date
October 19, 1995
Date Reported as Unserviceable __Comparable Property_____
LEGEND:
S=
M=

Serviceable
Missing

X =
NA =

ENGINE:
Operating Condition
Injection Pump
Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto
Distributor Assembly
2/cap , rotor
Wiper Assembly
Headlight Assembly

Unserviceable
Not Applicable

SUSPENSIONS:
S

FrontSpringAssembly

RearSpringAssembly

S
S

WHEELS:

S
S
S
S

Tires Front
Tires Rear
Spare Tire

S
S
S

NA
NA

PROPELLER SHAFT ASSY.:

NA
4

Front
Rear

NA
S

DIFFERENTIAL ASSY.:
Front
Rear

NA
S

NA

S
S

FINAL DRIVE

NA
NA

Sprocket Assembly
Drive Chain

NA

UNDERCARRIAGES:

NA

NA
NA

S
S

Track Link Assembly

NA

Stop & Tail Light Assy.


Directional Light Assy.
(front & rear)
Battery
CLUTCH ASSEMBLY
CUSHIONS:
Front Seat
Rear Seat
Operators Seat
GAUGES:
Hour/Service Meter
Speedometer
Tachometer
Temperature Gauges
(water)
Oil Pressure Gauges
Converter oil Temperature
Gauges

BRAKE SYSTEM:
Master Cylinder
Assembly

S
S
S
S

Idler Assembly
Track Adjuster Assy.
Track Roller Assy.
Carrier Roller Assy.
TORQUE CONVERTER
BODY/CAB/FENDERS

NA
NA
NA
NA
NA
S

WINDSHIELD (Front)
FUEL TANK ASSEMBLY
HYDRAULIC SYSTEM:
Hydraulic Pump Assembly
Hydraulic Motor Assembly
Hydraulic Hoses
Control Valve Assembly
Hydraulic Cylinders

S
NA

S
S
S
NA
S
NA
S
S

TRANSMISSION ASSEMBLY
S
NA

TRANSFERCASE ASSEMBLY
S
WINDSHIELD (rear)

FUEL TANK ASSEMBLY

STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Cutting Edges
Dragline Bucket
Backhoe Bucket
Fairlead assembly
(for crane)
Compressor
Boom Assembly
Lifting Block

NA
NA
NA
NA
NA

NA
NA
NA
NA
NA
NA
NA
NA

Riper Assembly
End Bits
Clamshell Bucket
Ditching Bucket
Tagline Assembly
(for crane)
Cables
Boom Pulley
Others

NA
NA

NA
NA
NA
NA
NA
NA

REMARKS:
Engine needs top-overhauling
Signal lights and Headlight Assy. - not original/Taiwan
Needs underchassis repair - brake system & Suspension Assy.
Odometer Reading = 97,500 kms.

Inspected by:
JUAN DELA CRUZ

(NAME)
Sr. TAS

(DESIGNATION)

ANNEX D
CHECKLIST OF PROPERTIES FOR DISPOSAL
AIRCON/REFRIGERATOR/FREEZER
Equipment Description/Type____________________________________
Unit Serial No.________________________Prop.No._________________
Acquisition Cost_______________________Date____________________
Date Reported as Unserviceable ________________________________
LEGEND:
S =
M=

Serviceable
Missing

ELECTRICAL:
Motor Compressor
Running Capacitor
Starting Capacitor
Selector Switch
Magnetic Contactor
Relay
Overload Protector
Condensed Fan Motor
Fan Motor
Time Relay Switch
Wiring
Solenoid

X =
NA =

Unserviceable
Not Applicable

MECHANICAL:
Compressor
Thermostat
Condenser
Evaporator
Filter Drier
Capillary Tube
H/L Pressure Switch
Expansion Valve
Strainer
Surge Tank
Heat Exchanger
Sight Glass

OTHERS:
Body
Casing
Front Cover
Air Filter Element
Inspected by:
______________________________
(NAME)
______________________________
(DESIGNATION)

ANNEX E
Republic of the Philippines
XYZ Corporation
DISPOSAL COMMITTEE
Manila
APPRAISAL REPORT
Date:_____________
Subject:

Appraisal of various properties intended for disposal as listed


under attached _______ page/s Inventory and Inspection Report
of Unserviceable Property (I & I Report) dated
______________.

Findings/Observations:
1.

The subject properties were all kept inside a guarded bodega


and systematically arranged in accordance with the listings
indicated under I & I Report.

2.
3.
Note: With individual Checklist and pictures hereto attached.
Valuation Procedures/Consideration:
1.

The condition of the above-subject properties has been


assessed thru ocular inspection.

2.

The vehicle was appraised on the basis of the available Current


Market Value (CMV) taken from advertised price of used vehicle
of the same make and model from ABC magazine, May 2,
2000 issue.

3.
4.
5.

Determination of the appraised value is based on the COA


Revised Guidelines on Appraisal of Property other than Real
Estate, Antique Property and Works of Art.

6.

The total appraised value of the above subject properties arrived


at is P_____________, broken down as follows:
Item Description
a.
b.
c.

Appraised Value
______________
______________
______________

Total Appraised Value

P ____________

Prepared by:
JUAN DELA CRUZ
Member
Disposal Committee

ANNEX F

ADJUSTMENT OF APPRAISED VALUE WHEN AUCTION BIDS


ARE LOW

In Sec. VII of COA Memorandum No. 88-569, the


hereunder activities were performed by the Auditor. However,
with the lifting of pre-audit, these functions became the
responsibility of the Agency.
If after exposure of the property to public auction, as
required under Sec. 79 of P.D. 1445, the highest bid falls below
the government floor price the agency shall:
1. Determine whether the difference is excessive. The
amount of deviation of the highest bid from
the floor /reference value is considered excessive
when it
is
greater
than
10%
of
the
floor/reference value plus the cost of calling
another public auction.
2. If the difference is found not excessive, the agency
shall continue with the sale of the unserviceable
properties.
If the difference is found to be
excessive, the agency shall call for another public
auction with the floor/reference value reduced by
10%.
If the second auction still fails, i.e., the highest bid is still
excessively lower than the reduced floor/reference value, then
the sale may be negotiated with the highest offeror.