Disposal of Unserviceable Equipment and Property

April 14, 1983 REVENUE ADMINISTRATIVE ORDER NO. 02-83 SUBJECT : Disposal of Unserviceable Equipment and Property . Executive Order No. 888 issued by the President of the Philippines on March 18, 1983, authorizes Ministers and Heads of Ministries/Agencies to dispose of their respective unserviceable equipment and disposable property, creates National and Regional Disposal Committees, and prescribes a uniform and expeditious procedure for said disposal. acd In pursuance of said Executive Order, there is, therefore created, a Disposal Committee composed of the following: 1. The Chief of the Property Division Chairman 2. A representative of the Bureau of Supply Coordination Member 3. A representative of the BIR Auditor Member The Disposal Committee shall establish a standard operating procedure to govern its action and shall perform the following functions: 1. Inspect or authorize the regional offices to inspect the unserviceable equipment and property to verify justification for disposal; 2. Set the final appraised value of all disposable property considering obsolescence, market demand, physical condition and result of previous biddings for similar property; cdt 3. Recommend to the Commissioner of Internal Revenue for approval, the manner of disposal taking into consideration the pertinent provisions of the Revised Administrative Code and the National Auditing Code; 4. Conduct public biddings for the sale of disposable property on an "AS IS", "WHERE IS" basis and to recommend corresponding award; 5. The representative of the Commission on Audit and the Bureau of Supply Coordination together with the COA Technical Staff specifically assigned to the Disposal Committee, shall be clothed with full authority to make final decisions in behalf of their respective offices in the various committee deliberations; 6. Recommendations of the Disposal Committee are subject to the final approval of the Commissioner of Internal Revenue. To facilitate disposal of unserviceable equipment and property in the regional offices, a Regional Disposal Committee is hereby created in each region. The Regional Disposal Committee shall be composed of the following: 1. The Chief of the Administrative Branch Chairman 2. A representative of the Bureau of Supply Coordination Member 3. A representative of the COA Regional Office Member This Regional Disposal Committee is hereby clothed with the same authority and charged with the same functions as the Disposal Committee provided that all its recommendations shall be subject to final approval of the Commissioner of Internal Revenue. Accountable officials in possession of unserviceable equipment shall submit to the Disposal Committee thru their respective heads of appropriate office, Inventory and Inspection Report (General Form No. 17-A), supported by individual equipment survey reports and current photographs (two views each). In the case of waste materials and worn-out and obsolete spare parts, the Waste Material Report, General Form No. 64-A shall be used. The heads concerned, after processing such reports, shall refer same to the Disposal Committee or the Regional Disposal Committee, as the case may be, with their recommendations. Any one of the following modes of disposal, whichever is most appropriate, shall be considered: 1. Sale thru public bidding. Sale shall be widely publicized and the Committee appraised value which shall be the minimum selling price should be at realistic levels considering market demand, physical condition, obsolescence and all other relevant factors; 2. Should the sale thru public biddings be unsuccessful, the Committee may dispose these property in any manner deemed most advantageous to the government, including thru barter or negotiated sale at not less than the Committee appraised value; 3. Barter with other government agencies and government owned or controlled corporation. Dropping from the book of accounts of disposed property shall be subject to existing accounting and auditing regulations. cdt RUBEN B. ANCHETA Acting Commissioner