Guidelines to Implement Memorandum dated August 10, 2000

December 6, 2000 REVENUE MEMORANDUM CIRCULAR NO. 24-00 SUBJECT : Guidelines to Implement Memorandum dated August 10, 2000 on the TURNOVER OF UNSERVICEABLE MATERIALS, SUPPLIES AND EQUIPMENT, AND VALUELESS RECORDS BY HEADS OF DEPARTMENTS, BUREAUS AND OFFICES, GOVERNMENT OWNED CORPORATIONS AND OTHER AGENCIES TO THE PRESIDENTIAL ACTION CENTER. TO : All Internal Revenue Officials, Employees and Others Concerned For the information and guidance of all revenue officials and employees, quoted hereunder is Memorandum dated August 10, 2000 by the Presidential Action Center (PACE) Head, Mr. Jonathan F. Baligod: "TURNOVER OF UNSERVICEABLE MATERIALS, SUPPLIES AND EQUIPMENT, AND VALUELESS RECORDS BY HEADS OF DEPARTMENTS, BUREAUS AND OFFICES, GOVERNMENT OWNED CORPORATIONS AND OTHER AGENCIES TO THE PRESIDENTIAL ACTION CENTER. I. THE PROJECT The project is a direct response of the Office of the President to the various requests of the public, especially the marginalized sector, for employment and livelihood opportunities. It is pro-active initiative undertaken by the Office of the President, through the Presidential Action Center (PACE), to reach out to the masa in keeping with the President's commitment to give preferential attention to the poor. Time and again, the President has stressed the "no dole out" policy of the administration, providing opportunities for sustainable development and self-reliance being the ideal approach. Technical Training and Livelihood Centers will be established nationwide with the assistance of government agencies like the Department of Trade and Industry, Department of Labor and Employment, Technology and Livelihood Resource Center, Technical Education Skills Development Administration, etc. and non-government organizations. The primary beneficiaries of this special project will be the out-of-school youth and unemployed adults in keeping with the state policy on the mobilization of the youth's abilities, talents and skills. The centers shall offer training on the following skills depending on the felt needs of the area, to wit: a. Handicraft Making b. Food and Food Preparation c. Agriculture Based Industry d. Metal Industry HSDCTA e. Indigenous Material Based f. Business Operations/Management g. Electronics h. Information Technology i. Marine Based Technology j. Engineering k. Construction l. Services m. Telecommunications n. Manufacturing o. Woodworks II. DEFINITION AND SCOPE The disposal of unserviceable government property shall be governed by pertinent laws and implementing guidelines promulgated by the Department of Budget and Management and the Commission on Audit, to include, but not limited to the following: 1. Presidential Decree No. 1445, The Government Auditing Code, particularly Sec. 76 thereof stating that : "Any government property that is no longer serviceable or needed by the agency to which it belongs may be transferred without cost, or an at appraised value, to other agencies of the government upon authority of the respective heads of agencies in the national government, or of the governing bodies of government owned or controlled corporations, other self-governing boards, or commissions of the government, or of the local legislative bodies for local government units concerned." 2. National Budget Circular No. 425 dated January 28, 1992 Manual on Disposal of Government Property. 3. COA Circular 89-296 dated January 2, 1989 Audit Guidelines on the Disposal/Divestment of Unserviceable Property and other Assets of all Government Entities i Instrumentality. 4. COA Memo No. 88-569 dated August 12, 1988 Guidelines for Appraisal of Unserviceable Property. 5. EO No. 301 dated July 26, 1989 Guidelines on the decentralized disposal of valueless records in government agencies. The term unserviceable property and valueless records shall refer to supplies, materials and equipment which can no longer be repaired or reconditioned, or property no longer needed by government agencies and, all items listed under the General Records Disposition Schedule of the Records Management and Archives Office (RMAO), respectively. Government Offices covered by this project shall include the following, to wit: a) Office of the President b) Office of the Vice-President c) All line agencies and their attached office/bureaus d) Other Executive Offices e) State Universities and Colleges f) Government Owned Corporations III. GENERAL PROCEDURE IN THE DISPOSITION OF UNSERVICEABLE PROPERTY AND VALUELESS RECORDS 1) CONDUCT OF OCULAR INSPECTION A team composed of one representative each from PACE, COA and the owning agency shall, in coordination with the Disposal Committee in each Department, Bureau, Office or Agency, if any, conduct an ocular inspection of all unserviceable property and valueless records of the office concerned to determine items that will be transferred to PACE. aHcACT 2) APPRAISAL In coordination with the Disposal Committee or similar body of the owning agency, the COA representative shall assist in the appraisal process following principles and procedures for appraisal of unserviceable government property as prescribed by COA Memorandum No. 88-569 dated August 12, 1988. 3) SUBMISSION OF PRESCRIBED DOCUMENTS Upon determination by the team and Disposal Committee of the properties to be transferred to PACE and determination of their appraised value as aforementioned, the accountable officer of the owning agency shall accomplish the appropriate instrument to effect the transfer of the properties to the PACE, viz, Inventory and Inspection Report (General Form No. 17-A) Invoice Receipt of Property (General Form No. 30-A). The property shall then be dropped from the books of accounts of the owning agency in accordance with existing accounting and auditing rules and regulations upon their turn-over and acceptance by PACE. 4) UTILIZATION' OF TRANSFERRED PROPERTIES The unserviceable properties transferred to the PACE will be used for operational and training purposes. Items no longer needed will be disposed through public bidding in accordance with established mechanics and procedures on public bidding and proceeds thereof net of fees and other reimbursable expenses shall be remitted to the National Treasury for disposition in accordance with law. Disposal of properties turned over to PACE shall be undertaken in accordance with existing law and regulations particularly guidelines on setting the minimum value of fixing of floor price and public bidding (ef. EO 888 dated March 18, 1983, COA Circular 89-296, NBC No. 425). For this purpose, a Bids and Awards Committee (BAC) shall be created to oversee the disposal of properties. All public biddings shall be witnessed by the COA representative . Separability Clause . If for any reason or reasons, any part or provision of these guidelines shall be inconsistent with the existing law or regulation, other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect. Effectivity Clause . These guidelines shall take effect immediately. (Sgd.) JONATHAN F. BALIGOD Head, PACE Approved: (Sgd.) RONALDO B. ZAMORA Executive Secretary" All revenue officials and employees are enjoined to give this Circular as wide a publicity as possible. IaEScC (SGD.) ESTELITA C. AGUIRRE Deputy Commissioner