Guidelines and Procedures in the Disposal of Unserviceable Equipment and Other Disposable Property Pursuant to Executive Order No. 888 as Implemented by Revenue Memorandum Order No. 2-83 Dated April 14, 1983, and Executive Order No. 285 dated July 25, 1987

June 21, 1988 REVENUE MEMORANDUM ORDER NO. 33-88 SUBJECT : Guidelines and Procedures in the Disposal of Unserviceable Equipment and Other Disposable Property Pursuant to Executive Order No. 888 as Implemented by Revenue Memorandum Order No. 2-83 Dated April 14, 1983, and Executive Order No. 285 dated July 25, 1987 TO : All Internal Revenue Officials and Others Concerned I. Purpose To dispose of all unserviceable equipment and other disposable property in a manner beneficial to the government and to expedite disposal in order to check further deterioration of government equipment exposed to the elements. II. Disposal Committee For the above purpose, Disposal Committees in the National Office as well as in the Regional Offices are hereby created as follows: a. National Office Disposal Committee: Chief, Property Division - Chairman Representative, Systems and Procedures Bureau, Department of the Budget and Management - Member Representative, Commission on Audit - Member b. Regional Office Disposal Committee Chief, Administrative Branch - Chairman Representative, Regional Office, Systems and Procedures Bureau, Department of the Budget and Management - Member Representative, COA BIR Regional Auditor - Member III. Duties, Functions and Authorities The following shall be the duties and functions of the Disposal Committees: 1. Inspect, verify disposable equipment. 2. Set the final appraised value of all disposable property considering obsolescence, market demand, physical condition, and other relevant factors. 3. Recommend to the Commissioner of Internal Revenue for approval the appraised value of the disposable property. 4. Determine and 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. casia 5. Conduct public bidding for the sale of disposable property and recommend the corresponding award. 6. Prepare appropriate disposal reports to the Commissioner of Internal Revenue. 7. The Committee may assign personnel from the office concerned to handle administrative matters, particularly inventory and recording of disposable equipment. IV. Procedures and Guidelines The Disposal Committee shall be guided by the following procedures and guidelines: 1. The Chief, Property Division or the Chief, Administrative Branch as the case may be, shall determine and segregate all surrendered unserviceable equipment and/or Waste Materials that may be reported out for possible disposal action. 2. The Chief, Property Division or the Chief, Administrative Branch as the case may be, shall prepare and accomplish the Inventory and Inspection Report (Gen. Form 17A) for equipment and/or Report of Waste Materials (Gen. Form No. 64A) for Waste Materials like spare parts, bulbs, old tires and other small items not considered as equipment. 3. The Inventory & Inspection Report as well as the Report of Waste Materials shall be filled up accurately in all particulars, namely; name & description, quantity, unit and total acquisition value, date of acquisition and manner by which the property was rendered unserviceable. Both disposal reports shall be accomplished in seven (7) copies to be signed by the Revenue Supply Officer and endorsed by the Administrative Officer or Chief, Property Division. 4. In the National Level, the Chief, Property Division shall sign the Inventory & Inspection Report to be approved by the Deputy Commissioner; in the regional level; the Chief, Administrative Branch shall sign the Inventory & Inspection Report to be approved by the Regional Director. With respect to the Report of Waste Materials, in the National Level, the Chief, Property Division shall sign the report to be endorsed by the Asst. Commissioner (Administrative Service) while in the regional level, the Chief, Administrative Branch shall sign the report to be endorsed by the Regional Director. casia 5. The accomplished forms shall then be submitted to the Disposal Committee. 6. The Committee shall take pictures (two positions for each lot) and shall inspect the disposable properties. 7. The Committee shall determine modes of disposal. Any one of the following modes of disposal, whichever is most appropriate shall be considered. a) Sale thru public bidding. Sale shall be widely publicized and the Committee appraisal value shall be the minimum selling price. Selling price shall be realistic considering market demand, physical condition, obsolescence and other relevant factors. b) Negotiated Sale - Sale thru negotiation to private parties may only be resorted to when the bids received are lower than the appraised value determined by the Disposal Committee with the assistance of the COA Technical Committee, or when there are no bidders and a rebidding is impractical but in no case shall the sale by negotiation be lower than the appraised value of the item to be sold. c) Barter with other government agencies and government-owned or controlled corporation. d) Transfer to government agencies without cost, such as government schools, bureaus, agencies, etc. Upon request with the BIR disposable items may be transferred without costs with the approval of the respective department heads. e) Outright Condemnation - If the items are without economic resale value, the Disposal Committee may recommend to the Commissioner of Internal Revenue, burning, pounding or throwing beyond recovery. Valueless items should not be thrown in the sea as they will only obstruct and cause pollution. 8. The bidding may be published in a newspaper of wide circulation or Notice for Bidding to be posted in conspicuous places two or three weeks before the bidding to give time for the bidders to inspect the disposable equipment and others. a) Bid offers must be accompanied with bond deposits either in cash, manager's check, cashier's check evaluated and approved by the Committee. b) Abstract of Bid shall be prepared and signed by the Committee to be submitted with the report. 9. After approval of transfer without cost, the actual transfer of properties shall be effected using General Form No. 30(A) (Invoice/Receipt for Property). 10. After the disposal, the Committee shall submit a report to the Commissioner of Internal Revenue indicating the mode of disposal, amount realized, if sale, or schools benefited if thru donation. 11. Finally, after the properties have been disposed of in any manner herein provided, the National Disposal Committee or the Regional Disposal Committee as the case may be, shall transmit the whole docket to the Chief, Property Division who in turn shall transmit the same to the Chief, Disbursement Accounting Division so that the book value of the properties disposed of could be dropped from the books of accounts of this Bureau by means of journal entries Copies of the Journal Voucher (JV) shall be forwarded to the Chief, Property Division, the person being relieved, the agency to whom the properties are transferred to and such other persons or units to be determined by the Chief, Disbursement Accounting Division. After receipt of the copy of the Journal Voucher (JV) by the Chief, Property Division, it shall now drop the items disposed of in the corresponding Equipment Ledger Cards (Gen. Form 46A). The Property Custodian should report unserviceable property on time to avoid deterioration, loss of parts, dismantling of motor vehicles and depreciation of value. The disposal of unserviceable equipment, waste materials and others shall be a continuing project of the Committees. casia All memoranda/circulars inconsistent herewith are hereby amended/modified accordingly. This memorandum shall take effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner