DISPOSAL OF SCHOOL PROPERTY .pptx

DISPOSAL OF PROPERTY

1. DISPOSAL Prepared by: MILAVE II SCHNEIDER-COLICO Administrative Officer/Supply Office Jose Panganiban National High School

2. At the end of this topic, you will be able to: Identify the assets that may be disposed off; Enumerate the modes of their disposal; Discuss the requirements in inspecting and appraising them; and Enumerate the general procedures that may be followed and the documents required in disposing these assets. Learning Objectives

3. Disposal is the end of the life cycle of a government property and this is to discuss the reasons and the modes for disposing them. Likewise, included in the discussion are topics on the type of assets that may be subject to disposal, how they are inspected and appraised and the process and the documents required in their disposal. OVERVIEW

4. Despite the proliferation of various laws, rules and regulations governing disposal of property, a considerable quantity of unserviceable, no longer needed, obsolete, forfeited/seized, supplies, materials and equipment and valueless records which have grown into unmanageable and uneconomical proportions now exist in the various government agencies. To save on cost of maintaining such property there is a need for their disposal. Basic Concepts

5. Pursuant to EO No. 888, Sec. 1 and COA Cir. No. 89-296 the full and sole authority and responsibility for the divestment or disposal of properties and other assets owned by the National, Corporate and Local Government Units including its subsidiaries shall be lodged in the Heads of the Department , bureaus and offices or governing bodies or managing heads of the concerned entities.

6. Condemnation/Destruction of Property Transfer of Property Barter Donation of Property Sale of Unserviceable Property MODES OF DISPOSAL

7. through pounding, burning, breaking, shredding, throwing or any other method by which the property is disposed beyond economic recovery. Destruction shall be made in the presence of Disposal Committee. 1. CONDEMNATION/DESTRUCTION of Property

8. Upon the initiative of the owning agency or upon submission of request to the owning agency, property recommended for disposal may be transferred to another government agency. Transfer may be done either with or without cost. Cost herein refers to payment based on the appraised value of the property. 2. TRANSFER OF PROPERTY

9. An agency transfers property to another government agency in exchange for another piece of property. The value of the property transferred may or may not be equivalent to that being received. 3. BARTER 4. DONATION OF PROPERTY May be to charitable , scientific, educational, or cultural institutions.

10. * Sale thru Public Bidding i s resorted to as a consequence of failed bidding. * Sale thru Negotiated Sale 5. SALE OF UNSERVICEABLE PROPERTY As a general rule, is the mode of disposal. This is done thru sealed public bidding or when circumstances warrant, by viva voce.

11. PROPERTY/ ASSETS SUBJECT to DISPOSAL

12. Unserviceable Property Confiscate/Seized Property Property under Distraint /Levy/Garnishment Unclaimed Motor Vehicles Real Property Valueless Records/Documents The following are subject to disposal:

13. Pursuant to Sec. 79 of PD 1445 “When government property has become unserviceable for any cause or is no longer needed, it shall, upon application of the officer accountable therefore, be inspected by the head of the agency or his duly authorized representative and if found to be valueless or unserviceable, it may be destroyed. If found valuable, it may be sold at public auction to the highest bidder under the supervision of the proper committee on award or similar body. 1. UNSERVICEABLE PROPERTY …subject for disposal…

14. Determining Factors in the Disposal of Unserviceable Property Property which can no longer be repaired or reconditioned; Property whose maintenance costs/cost of repair more than outweighs the benefits and services that will be derived from its continued use; Property that has become obsolete or outmoded because of changes in technology Serviceable property that has been rendered unnecessary due to changes in the agency’s function or mandate; Unused supplies, materials and spare parts that were procured in excess of requirement; and Unused supplies and materials that has become dangerous to use of long storage or use to which is determined to be hazardous.

15. Submission of Documents Pertinent to Disposal of Unserviceable Property Accountable officials in possession of unserviceable property shall submit to the Disposal Committee through their respective heads of offices, the following accomplished forms, as appropriate:

16. Individual Survey report, duly certified by the Supply Officer and Head of Agency List of missing spare parts, duly certified by Supply Officer and Head of Agency Stencils of chassis and engine numbers of motor vehicles, and Current photographs in two positions. ** Inventory and Inspection Report of Unserviceable Property or IIRUP for semi-expendable materials and equipment and non-expendable supplies, accompanied by any of the following, whichever is appropriate:

17. INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY As of December 31, 2016 INVENTORY INSPECTION REPORT RECORD OF SALES Articles Qty. Unit Cost Total Cost Property No. Date Acquired No. of Years In Service Accumulated Depreciation DISPOSITION Appraisal O.R. No. Amount (1) (2) (3) (4) (5) (6) (7) (8) (9) Condem -nation (10) Transfer (11) Barter (12) Donation (13) Sale (14) (15) (16) I HEREBY request inspection, and disposition pursuant to Section 79 of PD 1445, of the property enumerated above. Requested by: ______________________________ (Signature of Accountable Officer) ______________________________ (Designation of Accountable Officer) Request for Inspection Approved by: _____________________________ (Name and Signature) _____________________________ (Designation) I CERTIFY that I have inspected each and every article enumerated in this report and that the disposition made thereof was, in my judgment, the best for the public interest. __________________________ (Name &Signature of Inspector) I CERTIFY that I have witnessed the disposition of the articles enumerated on this report this ____ day of ___________, _____. __________________ (Name & Signature of Witness) 3in1 Printer 1 4,995 4,995 223-001-030310-001 March 3, 2010 7 499.50      210 #007 210 MILAVE II SCHNEIDER-COLICO Supply Officer SEVERO L. SALGADO, JR. Ed.D . Principal III ANGELINA Y. DE LEON State Auditor III - COA MARY ANN C. MANALO AO IV/Supply Office 7th February 2017

18. ** Waste Material Report for expendable materials, supplies and consumables including spare parts, empty containers, and remnants from destroyed or damaged fixed assets. WASTE MATERIAL REPORT As of December 31, 2016 Place of Storage: Date: ITEMS FOR DISPOSAL Item Qty. Unit Description Record of Sales O.R. No. Amount Certified Correct: ___________________ Property Officer Disposal Approved: ___________________________ Agency Head/BAC for Disposal CERTIFICATE OF INSPECTION I hereby certify that this property was disposed of as follows” Item _________ Destroyed Item _________ Sold to private sale Item _________ Sold to public auction Item _________ Transferred without cost to _________ Property Inspector: _________________________ (Name & Signature) Witness to Disposition: _________________________ Storage Room # 1 February 7, 2017 1 2 3 20 16 10 kilo sheet pcs Round bar Flat Sheet Good Lumber #008 P 160.00 1 2 and 3 Makeshift #1 CELSO S. DASCO ROGELIO A. DEL ROSARIO MILAVE II S. COLICO SEVERO L. SALGADO, JR.

19. Properties which come into the ownership and possession of the government as a result of its implementation, enforcement of laws and regulations and to avoid accumulation and loss of their economic value as well as to generate revenue for the government, the following confiscated/seized property are authorized to be disposed in accordance with existing laws rules and regulation. 2. CONFISCATED/SEIZED PROPERTY Timber and other Forest Products Property in Customs Custody Narcotics and Dangerous Drugs …subject for disposal…

20. Refers to the personal and/or real property of a tax payer forfeited to the government for failure to pay taxes. 3. PROPERTY under DISTRAINT/ LEVY/ GARNISHMENT …subject for disposal…

21. The government’s campaign against car napping resulted to recoveries of stolen motor vehicles by the different law enforcement agencies of the government. Due to absence of claimant and the real owners can no longer be determined those recovered vehicles remained unclaimed. 4. UNCLAIMED MOTOR VEHICLE …subject for disposal…

22. The issuance of Executive Order No. 285 dated July 1987 transferred the functions of the Building Services and real Property management Office, as follows: DPWH DENR Administrative Code of 1987 Republic Act No. 477 dated Sept. 12, 1982 Batas Pambasa Blg . 223 dated Sept. 12, 1982 DBM-DENR-DPWH Joint Circular No. 1 dated Sept. 30, 1989 5 . Real Property …subject for disposal…

23. All lands, which have been or may hereafter be transferred to the Republic of the Philippines under the provision of EO No. 29 dated October 25, 1946 and EO No. 99 dated October 22, 1947, may be disposed of by sale. Sale of these lands may either be thru public auction or without public bidding. Sale of Former Alien-Owned Properties

24. EO No. 29 D td October 25,1946

25. EO No. 99 D td October 22, 1947

26. Upon a written application by the occupant to purchase the land he occupies, the Real Property Management Division, Lands Management Bureau of DENR processes said application after appraisal of the land. Qualified applicants are notified in writing personally or by registered mail of the award and the corresponding cost of the lot. No absolute sale shall be executed if there is and pending administrative or court case involving the lot applied for. After full payment of the lot, the Deed of Absolute Sale shall be executed by and between the Secretary and the Vendee. After full approval of the Deed of Absolute Sale, the DENR shall cause thru the issuance of the title in the entity name of the vendee thru proper government entity, the expense thereof to be defrayed by the vendee. Procedures for Sale without Public Bidding

27. Lands that may be sold thru Public Auction by sealed bids Unoccupied lands of the public or private domain Unoccupied reclaimed lands of the public or private domain Occupied lands of the public domain by one who has no valid permit (squatters) Occupied lands of the public domain which are not sought to be purchased by their occupants. Occupied lands of the public domain for less than 10 years at the time of filing of his application to purchase the land and improvements thereon Occupied reclaimed lands of the public or private domain by one with a valid permit Occupied lands of the private domain Procedure for Sale thru Public Auction

28. Qualified Applicants: Filipino Citizen not otherwise disqualified by law Legal Age or Head of the Family Judicial entities who have acquired vested rights over the land pursuant to Opinion No. 133 s of 1984 and 98 s. of 1985 of then Ministry of Justice and Judicial Pronouncement. Price of the land must not be less than the appraised value of the land and improvements thereon as determined by the Appraisal Committee.

29. Where an applicant made improvement on the land or building by virtue of permit or lease granted to him by the competent authority: Land/Building is awarded to the highest bidder. If 2 or more equal bids are higher than the rest, and one of such equal bids is that of the applicant, his bid shall be accepted. If his bid is not one of such equal and higher bids, he shall have the option to equal the highest bid. Procedure of Sale thru Sealed Canvass

30. When successful bidder fails to comply with requirements: If other than the applicant, and does not reimburse the latter of the value of improvements as determined by Appraisal Committee. Refuses or neglects to execute the neccessary contract within 60 days from receipt of notice of award: Award automatically cancelled and considered without force; Any deposit made by such bidder shall be deemed forfeited in favor of the government

31. When no bid is received: Another bidding is called After third bidding, and still no bid is received other than that of the applicant: Right to purchase the land and improvements on a price not less than assessed value of the land and improvements shall be awarded to the applicant upon payment within 60 days after receipt of request therefore or at least 10% of value of land and improvement or upon full payment thereof; Otherwise, the bid shall be rejected.

32. No bid shall be considered unless accompanied by a deposit either in cash, certified check or postal money order payable to DENR in an amount equivalent to 10% of the appraised value. After deducting amount deposited at the bidding, balance may be paid in lump sum or in not more than 9 annual installment with an interest rate of 6% per annum for any amount due and payable Where a re-survey of re-location of the land applied for is necessary, all expenses therefore including the preparation of plans and other papers shall de defrayed by the purchaser. Execution, transmission and approval of the conditional and absolute deeds of sale of property and issuance of titles shall be governed in so far as applicable by the procedure & requisites in the award.

33. Any person, not otherwise disqualified by law, may apply for purchase of these real property owned by the national government which are open for disposition: Provided , that preference be given to educational, charitable, civic and other similar organizations. Sale of Residential, Commercial or Urban Lands, including Buildings and other improvements owned by the National Government

34. They include all record materials that have reached their prescribed retention periods and usefulness to the agency or the government as a whole. It excludes library and museum materials, documents submitted for copyright, models, copies of documents preserved for reference, and stocks of publications and processed documents. 6. VALUELESS RECORDS/DOCUMENTS …subject for disposal…

35. Provides for the decentralization of records disposal and mandated the Records Management and Archives Office (RMAO) of Department of Education, to prescribe uniform standard or guidelines to be followed by government offices. For every records disposal undertaken by an agency, a report thereon shall be prepared and submitted to RMAO, describing briefly the records disposed of and the manner of their disposition. The disposal shall be guided by EO No. 301 dated 26 July 1987

36. “ Records” mean any paper, book, photograph, motion picture film, microfilm, sound recording, drawing, map or other document of any physical form or character whatever, or any copy thereof, that has been made by any entity or received by it in connection with the transaction of public business, and has been retained by that entity or its successor as evidence of the objectives, organization, functions, policies, decision, procedure, operations or other activities of the government, or because of the information contained therein.

37. Inventory of Records Observance of General/Agency’s Record Disposition Schedule Agency’s Records Disposition Schedule (Appendix 9-12) , any revision or changes in the schedule shall likewise be submitted for approval by the Director, RMAO, as the need arises Request for Authorization Appraisal and Examination of Disposable Records Specific Activities and Procedures in the Disposal of Records

38. Authority to Dispose Safekeeping of valueless records until its disposal is authorized RMAO, together with the representative of Department of Education, may re-examine records for disposal as the need arises Authority to conduct Public Bidding Certificate of Disposal of Records Proceed from sale of disposable valueless records shall be remitted to the National Treasury / Corporate/Local Fund . File Breaks are generally set during the slack periods of filing and servicing, usually at the end of the fiscal or calendar year.

39. 1. Agency: 3. Schedule: 45. Page ____ of _____ pages 2. Address: 4. Date prepared: 6. Item No. 7. Record Series Title and Description 8. Retention period: 9. Disposition Authority/Remarks Active Storage Total 10. Prepared by Name: _____________________________ Position : ___________________________ 12. Recommending Approval: _________________________________________________ Chairman, Records Management Improvement Committee 11. Assisted by: ___________________________ Records Management Analyst 13. Approved by: __________________________________ Agency Head IMPORTANT: “Pursuant to Rule 4.1, Article III, DECS Department Order No. 13-A s. 1998, “No agency shall destroy or sell any records without having first secured authority from the Director, Records Management and Archives Office.” RECORDS DISPOSITION SCHEDULE RMAO Form No. 2 Revised 1990 Appendix 9-12

40. RMAO Form No. 4 Revised 1998 Appendix 9-12 1. Agency: 2. Address: 3. Location of records: 4. Total Volume in Cubic Meters: 5. Findings and Recommendations: 6. Evaluated by: 7. Position: 8. Date: 9. Noted by: 10. Position: 11. Date: RECORDS MANAGEMENT ANALYSIS REPORT

41. 1. Agency: 2. Address: 3. Location of Records 4. Item No. 5. Records Series Title and Description 6. Period Covered 7. Total Volume in Cubic Meters: 8. Total Weight in Kilos: 9. CERTIFICATION To Whom It May Concern: We certify that the above mentioned records have been disposed of by way of sale burning sale after shredding at ______________ , on _________________ 10. R.M.A.O. 11. COA 12. Agency Official Receipt No. Date of Payment: Amount Paid Buyer’s Signature CERTIFICATE OF DISPOSAL OF RECORDS

42. CREATION OF DISPOSAL COMMITTEE and SECRETARIAT

43. CHAIRMAN – a senior official with a rank not lower than the level of an Assistant Secretary for the Department and Assistant Director for a bureau/agency or Department Head of Government Owned and Controlled Corporations (GOCC). MEMBER – Head of the Administrative Unit MEMBER – Head of the Property Unit EO No. 309, reconstituted the membership of the Committee on Disposal as provided for under EO No. 888. A Secretariat and Technical Staff to be manned by existing personnel of the Agency concerned shall be formed to handle all the Committee’s technical and administrative matters as well as the safekeeping and systematic filing of Committee documents and records.

44. EO No. 309

45. GUIDELINES in DISPOSAL

46. Once supplies/property become unserviceable from any cause or are no longer needed, the officer immediately accountable therefore shall return the same to the Property Officer/equivalent position concerned. The property Officer/equivalent position shall file an application for disposal with appropriate documents to the COA Auditor. GENERAL PROCEDURE …Guidelines in Disposal

47. 3. The COA Auditor shall inspect the items and determine whether the items are with or without value and forwards his/her recommendation to the Head of the Agency. 4. The Head of the Agency shall forward the documents to the Disposal Committee. …Guidelines in Disposal

48. 5. The Disposal Committee shall recommend to the Head of the Agency the mode of disposal as appropriate and deemed most advantageous to the government . 6. If found to be valuable the unserviceable property may ne sold at public auction to the highest bidder under the supervision of proper Committee on Award or similar body. …Guidelines in Disposal

49. 7. The awardee shall pay, claim and withdraw the property upon the determination of awardee, the bid bond shall be considered as partial payment and the difference between such payment and the offered bid price shall be paid in the form of cash, cashier’s/manager’s check of a reputable bank within the area where the bidding was held. Full payment shall be made within 5 working days from the date of the notice of award. …Guidelines in Disposal

50. 8. Upon disposal of property, the pertinent portions of the Inventory & Inspection Report, Report of Waste Materials of Invoice Receipt for Property, whichever is applicable, shall be accomplished. These reports shall be the basis for dropping the property from the books of accounts and taking up the proceeds from the sale of property. …Guidelines in Disposal

51. INSPECTION and APPRAISAL of PROPERTY for DISPOSAL

52. APPRAISAL - art of estimating the fair exchange worth of a property as of a specified date, supported by relevant and factual data. Appraisal may or may not be accurate depending on: Basic competence and integrity of appraiser Soundness and skill with which he/she uses the data Availability of pertinent data

53. Conduct an ocular inspection of the property to be appraised to assess its physical condition. Seek reference price information such as acquisition cost or current market price of similar property or replacement cost for a similar new property. Compute the appraised value following the revised formula on appraisal of government properties except real estate, antique property and works of arts, which takes into account the property’s actual physical condition, the relevant reference price information, expected useful life of the property and the changes in the value of the property caused by depreciation, and those caused by changes in the value of the exchange currency, the peso, and also appreciation in the value of the property occasioned by the reconditioning, major repair or upgrade of property as well as favorable changes in the exchange value of the Philippine peso . General Procedure on Appraisal …Inspection and Appraisal of Property for Disposal

54. INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY or IIRUP WASTE MATERIAL REPORT Preliminary Documentation …Inspection and Appraisal of Property for Disposal

55. is conducted to observe the physical condition of the property to be disposed. An ocular inspection is usually done to have a first-hand observation of the condition of the property. INSPECTION

56. Identify the property in accordance with its description in the inventory list or directive. Check the condition of the property; determine whether operational, under repair, or irrepairable . Determine if property is economically repairable and the most probable cost of its repairs, and current costs of spare parts. Check for the damaged/worn-out or missing parts. Careful determination of its present physical condition shall serve as basis for its depreciation and correct evaluation/valuation. INSPECTION PROCESS

57. 5. Verify stated ratings, capacity, model, year of manufacture, serial number, chassis number, motor number and other technical specifications, and accessories, if any. 6. Determine the correct date when property has been acquired or its present age/number of years property has been actually used or operated. 7. See if property is obsolete or is still being manufactured and if spare parts are still procurable in the market. If property of found obsolete, appraise the property as junk. 8. Determine quality or degree of maintenance, repair, restoration or upgrading made, check logbook, if available. 9. Determine extent of use, mileage, rate of depreciation, and any excessive wear and tear.

58. 10. Determine whether property has still market demand; or the existence of probable buyers in the locality. 11. Inspect the location of the properties and the available facilities for its transportation. 12. See if the property is sheltered or exposed to elements and theft. 13. If property is to be disposed of as junk, determine parts which could be salvaged or profitable used such as engine, dynamo, wheels, tires, axles, body/chassis, etc. of motor vehicles.

59. DEPRECIATION OF PROPERTY/ EQUIPMENT

60. The cost of property, plant and equipment are allocated to the periods benefited through the provision of accumulated depreciation. Depreciation is the systematic and gradual allocation of the depreciable amount of assets over its useful life. Depreciation shall be computed using the Straight Line Method. Depreciation shall start on the second month from purchase. A residual value equivalent to ten percent (10%) of the cost shall be set. Annual depreciation is computed as follows:

61. ANNUAL DEPRECIATION = __________________ Asset Cost = Purchase or Acquired Value of the Asset Estimated Salvage Value = 10% of the Asset Cost Estimated Useful Life = Estimated number of years the asset shall be used as determined by COA. Asset Cost LESS Estimated Residual/Salvage Value Estimated Useful Life 5,000.00 – 500.00 5 900.00

62. Basic Price Information Current Market Value (CMV) Acquisition Cost (AC) R eplacement Cost – New (RCN ) Contributory/Other Price Information Prices from second hand rebuilders and re-conditioners of machinery, cars or equipment Currency exchange rates for acquisition year and current year. Reference Price Information in Appraisal

63. Unserviceable property which can no longer be repaired or reconditioned shall be appraised at scrap or junk value. Unserviceable property which can still be repaired or reconditioned, and property no longer needed which are still functional shall be appraised at current market value, if such is available, if not, it shall be appraised based on its Acquisition Cost (AC). If CNV and AC are both not available, the property shall be appraised at the Sound Value (SV). General Guidelines and Principle in the Determination of the Appraised Value

64. Antique property, Works of Arts, and Real Estate is not covered under these guidelines. Antique property and work of art shall be appraised by the National Museum, and real estate shall be appraised under a separate set of guidelines. For imported vehicles/mechanized equipment, each component that has no available local replacement shall be treated as junk, exclusive of the other components, which are available in the domestic market. …General Guidelines and Principle in the Determination of the Appraised Value

65. Very Good (VG) (80% to 100%) Good Condition (G) (55% to 75%) Fair Condition (F) (35% to 50%) Poor Condition (P) (15% to 30%) Scrap Condition (S) (05 to 10%) GUIDELINES IN OBSERVING CONDITION OF PROPERTY

66. Very Good (VG) ( 80% to 100%) GUIDELINES IN OBSERVING CONDITION OF PROPERTY This terms describes property in excellent condition capable of being used to its fully specified purpose without being modified and not requiring any repairs or abnormal maintenance at the time of inspection or within the foreseeable future.

67. This terms describes a property which has been modified or repaired and is being used at or near its fully specified utilization but the effects of age and/or utilization indicate that some minor repairs have to be made or that the item may have to be used to some slightly lesser degree than its fully specified utilization in the foreseeable future . Good (G ) (55% to 75%) GUIDELINES IN OBSERVING CONDITION OF PROPERTY

68. This terms describes a property which is being used at some point below its fully specified utilization because of the effects of age and/or utilization and which require general repairs and some replacement of minor elements/components in the foreseeable future to raise its level of utilization to or near their original specification . Fair Condition ( F) ( 35% to 50%) GUIDELINES IN OBSERVING CONDITION OF PROPERTY

69. This terms describes a property which can only be used at some point well below its fully specified utilization and it is not possible to realize full capability in its current condition without extensive repairs and/or the replacement of major elements in the very near future . POOR CONDITION ( P ) (15% to 30%) GUIDELINES IN OBSERVING CONDITION OF PROPERTY

70. Scrap Condition ( S) (0 % to 10%) GUIDELINES IN OBSERVING CONDITION OF PROPERTY This terms is used to describe a property which is no longer serviceable and which cannot be utilized to any practical degree regardless of the extent of the repairs or modifications to which they may be subjected (beyond economical repair). This condition, which have used up 100 percent of useful life or, which are 100 percent technologically or functionally obsolescent.

71. FORMULA ON APPRAISAL OF GOVERNMENT PROPERTY EXCEPT REAL PROPERTY Estate, Antique and Work of Arts

72. Appraised Value ( AV ) an estimate or opinion of value of an adequately described property as of a specific date transmitted in writing and supported by presentation and analysis of relevant and factual data. Definition of Terms Used in the Formula

73. Currency Flactuation Factor ( CFF ) refers to the adjustment factor used to take into account the devaluation or revaluation of peso from the year of acquisition to the year of appraisal Definition of Terms Used in the Formula

74. Current Market Value ( CMV ) it is the price estimated which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a buyer who buy with knowledge of the actual condition and utility of the property. Definition of Terms Used in the Formula

75. Effective Remaining Useful Life ( ERL ) refers to the period of time (years) from the date of appraisal to the date when the property becomes non-operational. Definition of Terms Used in the Formula

76. Estimated Useful Life ( EUL ) refers to the estimated period of time (years) for which a property is anticipated to be useful assuming normal utilization. Definition of Terms Used in the Formula

77. Junk Value the price of scrap/junk metal or lumber prevailing in the local market Locally Manufacture Properties refers to properties, which are one hundred percent (100%) sourced locally and no part of which is imported from other countries. Definition of Terms Used in the Formula

78. Price Index Factor ( PIF ) refers to the adjustment factor, which reflects the changes that occur in the prices of commodities, raw materials , manufactured goods and the like from years of acquisition to the year of appraisal . Definition of Terms Used in the Formula

79. When Current Market Value is AVAILABLE AV = When Property is STILL OPERATIONAL/ FUNCTIONAL or can be REPAIRED CMV x CF2 CF1

80. When Acquisition Cost is AVAILABLE AV = (AC x CFF ) x CF for IMPORTED property CFF = P / Dollar Exchange rate on year of Appraisal P / Dollar Exchange rate on year of Acquisition

81. AV = for LOCALLY MANUFACTURE properties (AC x PIF ) x CF PIF = Price Index Factor on year of Appraisal Price Index Factor on year of Acquisition

82. When Replacement Cost (NEW) is AVAILABLE AV = this formula shall apply if CMW and AC are not available RCN x EUL ERL AV = Junk Value for waste material and property which is unserviceable and can no longer be repaired/reconditioned Canvass for the current market price per unit weight and multiply by the actual weight of the waste materials/property to get the appraised value.

83. CONDEMNATION and DEMOLITION of SCHOOL BUILDINGS

84. A. CONDEMNATION

85. Step 1 The school head shall request for an ocular inspection and assessment of the school building perceived to be hazardous from the building official (whoever is available) Chief of the Municipal/City Engineer’s Office or Head of District Engineer’s Office

86. Major Findings: As per assessment, structure were subject for condemnation.

87. Step 2 School building perceived to be hazardous should be immediately condemned. Such cordon should be placed at a minimum distance of four (4) meters from the building line LARGE Precautionary Sign should be posted or nailed to boards as warning to students.

88. Step 3 Pending the result of ocular inspection from the Building Official, the school head shall secure the following documents, as pre-requisites to the approval of request for condemnation: Photographs of the building to be demolished, properly labeled, showing the front, rear, sides and damaged sections.

89. …Step 3 Certification by the school head that, if the building is demolished, classes will not be disrupted due to lack of classrooms.

90. …Step 3 Indication of probable funding for replacement Parents Teachers Association (PTA) or Alumni Association’s Clearance in case of school buildings with historical value like the Gabaldon School Building.

91. Step 4 When and if the subject building is declared by the building official to be unfit for occupancy The school head shall submit the request for condemnation to the School’s Division Superintendent (SDS)

92. Step 5 a.) for school building or structures without historical value The SDS shall approved request for condemnation based on the Inspection Report of the Building Official and upon completion of enumerated requirements mentioned earlier.

93. B . DEMOLITION

94. Step 6 The school head shall apply for a demolition permit from the Municipal/City Building Official.

95. Step 7 a.) for school building or structures without historical value The SDS shall approved request for demolition based on the demolition permit.

96. ..Step 7 a.) in case of Gabaldon School Buildings, Structures marked as cultural property, and structures dating at least fifty (50)years old The SDS, through the Regional Director, shall forward the request for demolition, together with the supporting documents to Department of Education-Physical facilities and Schools Engineering Division ( DepEd -PFSED), national Commission for Culture and the Arts (NCCA) or its affiliated cultural agency. After issuance by the NCCA, the DepEd -PFSED shall recommend approval of demolition to the SDS who shall approved the request for demolition.

97. Step 8 The Division Bids and Awards Committee (BAC) or the school BAC (in case the National High School with fiscal autonomy), shall conduct bidding for the demolition Step 9 In case the demolition is to be done by the administration , the school head shall list all the salvaged materials and shall submit a Waste Material Report to the respective Division Office (DO); and

98. Step 10 The school head shall inform the Commission on Audit (COA/Resident Auditor and shall request for relief of accountability in writing.

99. THANK YOU!!

100. We learned that to economize in maintaining property that are no longer needed the agency head should make sure that they are disposed off through five (5) modes: SALE, TRANSFER, DESTRUCTION, DONATION and BARTER. But before their disposal they must be inspected and appraised to determine the best modes to follow. A formula is used by the inspector/appraiser to determine the best price when the property is sold. A disposal committee may be constituted to administer and manage the disposal process. SUMMARY