Guidelines and Procedures in the Disposal of PCTC Property and Equipment and Disposition of Income Derived Therefrom

2012

PCTC MEMORANDUM CIRCULAR NO. 01-12

GUIDELINES AND PROCEDURES IN THE DISPOSAL OF PHILIPPINE CENTER ON TRANSNATIONAL CRIME (PCTC) PROPERTY AND EQUIPMENT AND THE DISPOSITION OF THE INCOME DERIVED THEREFROM

1.References:

a. COA Circular Nr. 89-296 titled, "Audit Guidelines on the Divestment or Disposal of Property and Other Assets of National Government Agencies and Instrumentalities, Local Government Units and Government-Owned and Controlled Corporations and their Subsidiaries' dated January 27, 1989;

b. COA-PTTF Manual on Disposal of Government Property;

c. COA Circular Nr. 95-006 titled, "Total Lifting of Pre-Audit on all Financial Transactions of the National Government Agencies, Government-Owned and/or Controlled Corporations and Local Government Units" dated May 18, 1995;

d. Title 7, Chapter 3 of Government Accounting and Auditing Manual, Volume I, which pertains to "Disposal/Divestment of Property;"

e. Executive Order No. 309 "Reconstituting the Disposal Committee created under E.O. No. 285" dated March 8, 1996; and,

f. National Budget Circular Nr. 425 "Manual on Disposal of Government Property" dated January 28, 1992. DTEScI

2. Purpose:

This Circular prescribes the policies and procedures in the reporting, turn-in and disposal of PCTC property and equipment (PE) whether Republic or Non-Republic, immovable or movable for being unserviceable, obsolete, abandoned or considered excess and the disposition of the proceeds thereof to avoid further deterioration of PE, clear storage space, and generate greater benefit to PCTC through the possible income that may be derived therefrom.

3. Definition of Terms:

a. Property and Equipment (PE) — are assets of PCTC that are acquired in the course of operations, are considered long-term in nature, and possess physical substance (e.g., buildings/structures, motor vehicles, office equipment and appliances, etc.).

b. Abandoned Properties — refers to undocumented and movable PE in the possession of PCTC without known owners or claimants.

c. Cannibalization — the process of removing serviceable parts or accessories from a functioning piece of unserviceable equipment — making it unusable for its intended purpose or function as a whole. Cannibalization requires pre-approval by the organization's Supply Accountable Officer (SAO).

d. Disposal — covers the condemnation, transfer to other agencies, donation to institutions/associations, sale by public bidding or negotiation of unserviceable PCTC PE which have been inventoried, inspected and appraised as disposable by the Disposal Committee.

e. Disposal Yard — a place within the vicinity of PCTC where disposable articles/properties are stocked.

f. Excess Properties — serviceable PE in the possession of PCTC which are in excess of the quantity required or authorized for retention, and cannot be utilized as substitute properties to satisfy the operational requirements.

g. Forfeited Properties — PE acquired by summary process or by order of the court pursuant to applicable laws, rules and regulations.

h. Non-Republic Properties — PE or supplies purchased from funds other than appropriated or reimbursable funds. These includes Military Acquired Properties (MAP) and other grant and/or aid materiel, properties found in station (those acquired form donation, confiscation/forfeiture/or procurement), captured enemy materiel, reclaimed properties (those reclaimed or recovered from condemned or unserviceable properties) and salvaged properties. ACaTIc

i. Reclamation — restoration of materials found in the waste stream to a beneficial use which may be for purposes other than the original uses.

j. Republic Properties — PE or supplies purchased from appropriated funds or reimbursable funds of PCTC.

k. Obsolete Properties — PE which have lost its efficacy either due to technical advancement, change of procedures, reorganization of the office or completion of project.

l. Salvaged Properties — PE that are unserviceable and declared beyond economical repair by reason by reason of severe or total damage, destruction and lost components/parts due to uncontrolled cannibalization.

m. Serviceable Properties — PE in serviceable condition which are in the possession of PCTC. Serviceable properties includes those properties authorized in the Table of Organization and Equipment (TOE) that are put to use by the agency and other PPE that are still in good conditions but are no longer put to use due to excess or obsolence.

n. Unserviceable Properties — refers to unserviceable and/or no longer needed PE that cannot be used or placed in service due to fair wear and tear or obsolence.

4. Classification of Disposable PE:

a. Excess properties remaining after distribution

b. Obsolete properties

c. Salvaged properties

d. Forfeited properties AICTcE

e. Abandoned properties

f. Unserviceable properties

5. Policies:

a. Disposal action of PE with salvage value shall be undertaken only at the level of PCTC Disposal Committee. All disposable properties with salvage value in any lower unit or office shall be turned-in at the appropriate disposal yard as defined in paragraph 3 (e). The Disposal Committee shall ensure that controlled reclamation/cannibalization is conducted on the disposable PE.

b. Copies of PCTC's excess/obsolete property list shall be furnished to all concerned Directorates and Field Offices. Only after a period of one (1) year from date of distribution of the excess/obsolete items list shall disposable proceedings be initiated.

c. All forfeited and abandoned properties in the possession of any directorates or offices shall be turned-in to the disposal activity/yard. Reclamation/cannibalization from said properties is not allowed unless the prior approval in writing of the Supply Accountable Officer (SAO) concerned has been obtained.

d. All disposal actions shall be in a manner deemed advantageous to PCTC and in accordance with the provision of Chapter 3, Sec. 501 — m 510, Volume 1 of the Government Accounting and Auditing Manual (GAAM) and PD 1911.

e. Disposal awards shall be recommended only for amounts not less than the final appraised values indicated by the Disposal Committee for the disposable properties. All recommendations for disposal shall be subject to the final approval of the Disposal Committee.

f. The cash proceeds of disposal through sale shall be directly remitted to the Collecting Officer of the Finance Office, Office of the President who shall issue the corresponding Official Receipt of the Property. cITAaD

g. Disposal of Philippine National Police (PNP) Acquired Property (PAP), the ownership of which has not yet been fully vested to PCTC, shall be conducted in a manner prescribed by a Memorandum of Agreement between the PNP and PCTC.

h. Disposal of PCTC buildings shall be upon determination and recommendation by the Engineering Department of the Office of the President and in conformity with existing regulations/manual. This is usually undertaken through dismantling/destruction to make way for planned new facilities. Prior coordination with the PNP shall be made before any dismantling/destruction is made.

6. Composition of the PCTC Disposal Committee:

1. Head executive Assistant — Chairman

2. Director for Support Services — Vice Chairman

3. Director for Operations — Member

4. Director for Research — Member

5. Director for Plans and Policies — Member

6. Supply Accountable Officer — Member

7. COA-OP Representative — Witness

7. Procedures:

a. The PCTC Disposal Committee shall create a Disposal Secretariat that will manage, monitor and compile all the data/details of PNP properties for disposal.

b. The PCTC Disposal Committee shall identify disposable items; conduct technical inspection, classification and appraisal of every item or property earmarked for disposal and, thereafter, dispose the disposable properties according to the methods prescribed in this Circular.

c. After disposing of the properties, the PCTC Disposal Committee shall submit a report within five (5) days to the Executive Director, PCTC copy furnished the Supply Department, Office of the President, all relevant documents for the dropping of said properties from the OP/PCTC Book of Accounts. TAaHIE

8. Methods of Disposal:

The following are the authorized methods/modes of disposal:

a. Sale through public bidding shall be the primary method of disposal of PCTC properties. Should this mode be unsuccessful, the Disposal Committee may dispose the properties in a manner most advantageous to PCTC.

b. Sale through negotiation — This mode of disposal may be resorted to only upon justifiable reason and when required by the exigencies of the service. However, the following factors must exist before resorting to this method:

1. Failure of public auction due to the following instances:

i) The amount of bid received is below the approved floor price.

ii) The bidder is disqualified for an award of contract.

2. Records of the proceedings of the negotiation must be maintained.

c. The PCTC Disposal Committee may barter disposable properties with properties of other government agencies, provided it is for the best interest of PCTC.

d. Transfer of excess/surplus PCTC properties to other government agencies may be made upon the request of the office needing the properties and shall be approved by the Executive Director, PCTC. Since the transfer will involve inter-government agency transfer, property accountability shall be maintained throughout the process (accomplishment of invoice receipt for property is imperative). TcEaAS

e. Donation of excess/surplus PCTC properties to other government agencies, charitable and non-profit institutions and foreign friendly countries shall only be done upon approval of the Executive Director. The following requirement shall be incorporated in the request:

1. Brief statement of the agencies activities;

2. General information on the intended use of the property;

3. Statement that the property shall not be resold or used other than the intended purpose indicated.

f. Upon approval of the PCTC Disposal Committee and after inspection of the COA, destruction or abandonment may be allowed provided the manner of disposal will not be detrimental or dangerous to public health or safety or will not cause infringement on the rights of other persons or upon government agreements. Provided further that the following conditions are satisfied: a) the property has no commercial value (Valueless); b) the estimated cost for its handling and care including cost to sell would exceed the estimated proceeds from its sale and; c) other methods of disposal are not economically feasible.

g. Destruction shall also be resorted to if it is unusable and it may pose hazard to the public if not destroyed.

9. Utilization of Proceeds of Disposal:

a. The disposition of proceeds of the disposal of Republic and Non-Republic properties shall be managed at the PCTC. All cash proceeds shall be directly remitted to the Budget Officer by the contracting parties.

b. All cash proceeds from properties sold shall be deposited with the Authorized Government Depository Bank (AGDB) for the account of the agency or the Bureau of the Treasury (BTr).

c. In the case where payment for the sale of disposable property is made in the form of supplies or in kind, same shall be witnessed by the Disposal Committee for the proper recording in the books of PCTC. CacTSI

d. The basis for determining the quality of supplies to be delivered as payment or barter for properties sold through bidding or negotiation shall be the bid or negotiated price equated to the fair market value of the supplies bartered.

10. Accounting and Auditing of Funds and Properties:

a. Accounting — The accounting of properties and funds relative to the disposal of properties, both Republic and Non-Republic shall be done in accordance with this Circular while disposal of PNP Acquired Properties (PAP) shall be done in accordance with the agreements executed by the PCTC and PNP.

b. Auditing — The auditing of accounts and transactions relative to the disposal of Non-PAP shall be in accordance with the applicable laws and regulations. The Internal Auditor of the Office of the President or representatives shall conduct audit of accounts and transactions relative to the disposal of all properties.

c. Dropping of property accountabilities shall be in accordance with the provisions of the Government Accounting and Auditing Manual (GAAM) and the New Government Accounting System (NGAS).

d. Nothing in this Circular shall preclude the intervention of independent auditors of the Commission on Audit (COA) in the disposal of property accountability and the auditing of disbursement or the proceeds acquired thereof.

11. Responsibilities:

a. The Head Executive Assistant

i) Sit as Chairman of the PCTC Disposal Committee;

ii) Primarily responsible in the implementation of this Circular; and

iii) Confirm if the property recommended for disposal by the Disposal Committee shall be disposed. EICSTa

b. The Director for Support Services

i) Sit as Vice Chairman of the of PCTC Disposal Committee;

ii) Drop all properties disposed by the Disposal Committee from the PCTC Book of Accounts; and

iii) Provide funds for the Secretariat.

c. PCTC Disposal Committee Secretariat

i) Responsible for documentation and recording of all transactions involving supplies, materiel and equipment belonging to PCTC with regards to the disposal.

ii) Maintain an updated stock record card, equipment ledger cards and an official registry book of all supplies, materiel and equipment for disposal.

iii) Coordinate with other supply activity units pertaining to disposal of materiel and equipment.

iv) Prepare pertinent papers for the disposal of unserviceable equipment and materiel and assist the Disposal Committee in the conduct of disposal activities.

v) Conduct periodic inventory and inspection of PCTC supplies and properties for disposal stored in authorized PCTC disposal yard and real estate/buildings within PCTC premises.

vi) Prepare and submit all the required logistical reports to the Office of the President pertaining to the supplies and equipment for disposal.

vii) Implement the directive regarding the disposal of supplies and equipment, and DHIcET

viii) Perform other duties and functions as may be directed by the Chairman, Disposal Committee and higher authorities.

d. Supply Accountable Officer

i) Conduct periodic inventory and inspection of unserviceable/disposable properties quarterly and to submit thereon the Inventory and Inspection Report (IIR) to the PCTC Disposal Committee (Attn: Disposal Secretariat).

ii) Submit an updated Inventory List of all Properties Found-in-Station to include their sources, whereabouts and condition/remarks quarterly as changes occur (thru a report of changes).

iii) Conduct technical inspection and classification of disposable properties at respective directorates/offices.

iv) Submit to the Executive Director, quarterly report on excess and disposable properties in prescribed format.

v) Recommend to the Executive Director properties which are deemed to be disposed.

e. COA Representative

i) Per COA Circular No. 95-006 dated May 8, 1995, COA Representative shall serve as witness/observer to the disposal of unserviceable properties and review in-house appraisal in aid of post audit of the transactions, including disbursements of the proceeds.

12. Required Report/Forms:

a. Quarterly Report on Excess and Disposable Properties — This report shall be rendered by the Supply Accountable Officer having responsibility over authorized PCTC Disposal Yard. The report shall be categorized by technical service classification, consolidated and finally submitted to the Executive Director not later than the 15th day after the end of the quarter. EHSTDA

b. Inventory and Inspection Report (IIR) — A report on semi-expendable materials and equipment and non-expendable supplies which shall be accompanied by the following:

i) Individual Survey Report duly certified by the supply officer and head of agency/unit.

ii) Individual photographs of properties taken from two (2) different views.

iii) List of missing spare parts duly certified by the supply officer/head of directorates/offices.

iv) Stencil of chassis and engine numbers of motor vehicles.

v) Stencil of serial number, make, type and caliber as regard to firearms (FAs).

c. Report of Waste Material (RWM) — A report for expendable materials, supplies and consumables including spare parts, empty containers and remnants form destroyed or damaged fixed assets. This must be accompanied by current onsite photograph taken from two (2) different views.

d. Invoice Receipt for Property (IRP) — A report for transfer of non-expendable properties from one supply accountable officer to another supply accountable officer.

e. Property Turn-in Slip (PTS) — A report for turning-in to the supply installation of the next higher level all excess and unserviceable non-expendable supplies.

13. Penalty Clause:

Any violation of this Circular shall be investigated and, if warranted by evidence, appropriate criminal, civil and administrative charges shall be filed against those who may be responsible thereof.

14. Repealing Clause:

Provision of existing PCTC issuances which are inconsistent with this Circular, in whole or in part, are deemed repealed, set aside, amended or modified accordingly. aICcHA

15. Effectivity:

This Circular takes effect after fifteen (15) days from the filing of a copy hereof at the University of the Philippines Law Center in consonance with Sections 3 and 4, Chapter 2, Book VII, EO No. 292, otherwise known as "The Revised Administrative Code of 1987", as amended.

 

(SGD.) PDIR FELIZARDO M. SERAPIO, JR. (RET)Executive Director, PCTC