DISPOSAL

BY: Eleonor P. Cruz

Supply Officer III
 LEARNING OBJECTIVES

At the end of the session, the

participants should be able to:
* Identify situations when property may
be disposed off;
• Name the modes of disposal; and
• Tell the procedures in disposal.
 Disposal Objectives

• to avoid continuing carrying/

inventory costs
• to prevent further deterioration thereby
obtaining the fair return in case of sale
• to relieve accountable officers of
unnecessary accountability
• to make available space for the agency
 DISPOSAL / DISPOSITION

• - the end of the life cycle of a government

property

Destruction or Sale of Unserviceable

Property Sec. 79 of PD 1445
• has become unserviceable for any cause
• is no longer needed
 DISPOSAL / DISPOSITION

• Property/Assets Subject to Disposal

• 1. Unserviceable property
• 2. Confiscated/seized property
• 3. Property under distraint/
levy/garnishment
• 4. Unclaimed motor vehicles
• 5. Real property
• 6. Valueless records/documents
 Determination of Disposable
Property
• Can no longer be repaired or reconditioned
• Maintenance/repair costs more than
outweighs the benefits and services
• Has become obsolete or outmoded
• Has been rendered unnecessary due to
change in the Agency’s functions/mandate
• In excess of requirements
• Has become dangerous or hazardous to use
 Determination of Disposable
Property
• Guidelines on the Divestment or Disposal of
Assets (COA Circular 86-264)
1. Constitute the Disposal Committee - require the
submission the list of assets to be disposed of:
program for disposal, IIR/RWM, appraisal
documents, disposal procedures to be adopted -
inspect assets -establish the floor price 2.
2.Furnish the COA Auditor at least five days before
the scheduled bidding with a copy of program for
disposal, IIRUP/WMR, appraisal documents &
disposal procedures
 Creation of Disposal Committees and
Secretariat (EO 309) For National and
Corporate Agencies
• • Head of Administrative Unit;
• • Head of Property Unit
disposal procedures to be adopted - inspect
assets -establish the floor price 2. 2.Furnish the
COA Auditor at least five days before the
scheduled bidding with a copy of program for
disposal, IIRUP/WMR, appraisal documents &
disposal procedures
Creation of Disposal Committees in the
SCHOOL and DISTRICT

• • at least 3 members

1 chairman and 2 members

• Submission of Documents Pertaining to Disposal
of Unserviceable Property

• • Inventory and Inspection of Unserviceable

Property
• • Waste Material Report
• • Property Transfer Report
• Inspection of the Property to be Disposed
• • Aimed at obtaining a first hand observation of the
physical and operational condition of the property and
the marketability
• • Inspection may be done separately by each member of
the Disposal Committee or as a group 4. Appraisal 5.
Setting of Minimum Value 6. Sale of Property
• • Destruction or sale of unserviceable property
• • If found to be valuable it may be sold at pubic auction
to the highest bidder
• • Advertise for not less than three consecutive days in
any newspaper of general circulation
• Submission of Documents Pertaining to Disposal
of Unserviceable Property

• • Inventory and Inspection of Unserviceable

Property
• • Waste Material Report
• • Property Transfer Report