PROVIDING A PROGRAM FOR THE MANAGEMENT OF UNNECESSARY PROPERTY OF THE JUDICIARY

1.1	“Unnecessary property” that is property that is not essential to the needs or operations of the particular office that has possession of it. The term shall include items that;
	1.1.1	are obsolete due to changed procedures, functions or usage patterns;
	1.1.2	no longer comply with occupational health and safety standards;
	1.1.3	are no longer needed;
	1.1.4	have exceeded their economic life;
	1.1.5	have become’unserviceable for any cause;
	1.1.6	require repair or maintenance in excess of fifty percent (50%) of its current market value; and
	1.1.7	require special handling, such as gifts and decorations from foreign governments and individuals, and items of cultural value.
1.2	“Responsible officer” refers to the official tasked with undertaking the disposal of Judiciary property under their authority. For the Supreme Court, the term refers to the SC Disposal Committee or as the case may be, the SC Chief Judicial Staff Officer of the Property Division, Office of Administrative Services. For all other courts, the term refers to the Chairperson of the pertinent Disposal Committee. For all courts below the Supreme Court, all actions required under this Administrative Order from the responsible officer shall be understood to have been performed in coordination and consultation with the members of the pertinent Disposal Committee.

2.1	These guidelines shall cover all Judiciary property consisting of equipment, furniture, fixtures, supplies and materials, transport equipment and similar items.
2.2	The disposal of unnecessary Judiciary property must be transparent. The responsible officer may, therefore, be asked to justify decisions taken and should exercise sound judgment in making disposal decisions.
2.3	The responsible officer shall at all times be aware of the status of property possessed by the court/s in which he/she is assigned. To this end, he/she will endeavor to maintain complete and accurate records of Judiciary property under his/her control.
2.4	Items can be available for disposal once, they become unnecessary property.
2.5	Immediate disposal of property or equipment may be made by the Property Officer, or responsible officer of the: (a) Supreme Court Disposal Committee; (b) Regional Disposal Committee (RDC); or (c) Metropolitan Trial Court Disposal. Committee (MeTCDC) in instances’ where the property or equipment to be disposed are remnants of fire, earthquake or similar calamities, and their accountabilities could no longer be ascertained. In such a situation, the Property Officer or responsible officer, may dispose the said property or equipment, subject to prior authorization of the Chairman of the respective Committees.
2.6	Property disposal in areas outside of Metro Manila should occur in those areas where it is practicable and economically viable.
2.7	The Judiciary will not offer any warrant on the condition of items it disposes, especially when such disposal is conducted by sale or auction.
2.8	Pertinent principles of depreciation accounting shall be applied where necessary.
2.9	Disposable equipment shall be sold not lower than its book value or salvage value as determined using the following formula:
	Appraised Value (AV) = Book Value (BV) where:
	BV = Acquisition Cost (AC) x Depreciation Factor (D)
	D =	remaining life
		Estimated life
	For items exceeding their useful life, the appraised value (AV) shall be equal to their salvage value (SV) or ten percent (10%) of their acquisition cost (AC)
2.10.	The following table states the estimated economic lives of the properties described therein:

PROPERTY		YEARS OF ECONOMIC LIFE
I. MOTOR VEHICLES		7
II. OFFICE EQUIPMENT, FURNITURE AND FIXTURES
	Office Equipment	5
	Furniture and Fixtures	10
	IT Equipment – Hardware	5
	Library Books	5
III. MACHINERIES & EQUIPMENT
	Machineries	10
	Communication Equipment	10
	Medical, Dental and Laboratory Equipment	10
	Sports Equipment	10
	Technical and Scientific Equipment	10
	Other Machineries and Equipment	10

2.11	When proceeds are derived from the disposal of unnecessary property, such proceeds shall constitute part of the Judiciary Development Fund pursuant to the Court’s Resolution dated 19 September 1999 in A.M. No. 99-8-01-SC.

Chairman	-The Clerk of Court or his duly authorized representative
Vice-Chairman	The Court Administrator or his duly authorized representative
Members	1. Chief Accountant, SC, or his duly authorized representative :
	2. SC Chief Judicial Staff Officer, Property, Division, SC
	3. SC Chief Judicial Staff Officer, Property Division, OCA
Secretary-Recorder	To be designated by the Chairman

1.1	Unnecessary properties may be traded-in for upgraded items.
1.2	To ensure reasonable options for trade-in, the Disposal Committee shall obtain trade-in offers from at least three (3) bidders. Such offers shall be obtained by a request sent by telephone, fax or mail to a company that sells property similar to the one being disposed. (Form 2)
1.3	The requested companies shall be allowed a period of seven (7) days from their receipt of the request to submit their offer for trade-in. After the lapse, of the period, the responsible officer shall commence evaluation of the trade-in offers received.
1.4.	In choosing which bidder to trade-in the item being disposed, the responsible, officer shall take into consideration the price which represents a fair value for the item being traded-in.

2.1.	The disposal Committee shall, once per quarter, report to the Supreme Court Property Division unnecessary properties and the additional properties required by the court/s under his/her jurisdiction.
2.2.	The Supreme Court Property Division shall then cause to be transferred to the appropriate court those usable excess properties from other court/s or office/s, taking into consideration the Guiding Principles stated above.

3.1.	Sale to personnel shall not be seen as a staff entitlement but merely a disposal option selected by the Disposal Committee to maximize returns on asset disposal.
3.2.	Sale to personnel shall/ for Supreme Court property, be conducted by the Committee on Bids; and for property of the lower courts, by the applicable Disposal Committee.
3.3.	In order to determine the best price for the unnecessary property, and ensure fairness in the sale process, the Disposal Committee shall ensure the widest possible participation of personnel by posting a notice of sale in three (3) prominent areas in the Hall of Justice or the building in which the court disposing of the property is located. The notice shall state the specifications of the unnecessary property, the minimum allowable price for the property, the date, time and place for the opening of bids for the property, the location where the property is stored, the dates when the property may be inspected, and the dates when bids may be submitted; provided that the bids shall be submitted to the responsible officer during office hours within the dates’ stated in the notice; provided further that during the time designated for the opening of bids, no further bids shall be received.
3.4.	The responsible officer, or in the case of the Committee on Bids, the Committee Secretary, shall number the submitted bids according to the order in which these were received by him/her.
3.5.	The opening of bids shall be conducted in the presence of the personnel who submitted a bid for the property to be disposed.
3.6.	The property shall be awarded to the highest bidder complying with the minimum allowable price.

4.1.	Public auction or bidding shall, for Supreme Court property, be conducted by the Committee on Bids; and for property of the lower courts, by the applicable Disposal Committee.
4.2.	The appropriate committee shall comply with prevailing publication requirements prior to actual bidding or auction. For this reason, the committee shall ensure that the returns to be gained from the auction shall exceed the costs of publication. In case, the cost of publication exceeds the expected returns, posting in conspicuous place for a period often (10) days must be made.
4.3.	The appropriate committee shall likewise comply with prevailing requirements for the opening and awarding of bids in public auctions or bidding.

5.1	After two (2) unsuccessful public biddings, the Disposal Committee may dispose of the excess property by sale through negotiation. For this purpose, the Committee on Bids shall first certify to two (2) unsuccessful public biddings, and, in view of which, shall authorize at least three (3) members of the Committee (SC) and the responsible officer (lower courts) to conduct sale through negotiation.
5.2	Sale through negotiation shall be subject to such competition as is feasible.

6.1.	Transfer to another government agency shall be resorted to when trade-in or transfer to other offices of unnecessary property are inappropriate or impractical, and when the attempted sale of said property has produced no result; provided that such transfer shall be without cost.
6.2	Any transfer without cost shall be submitted to the Chief Justice or his duly authorized representative for approval.
6.3	The transfer shall be authorized by the heads of either agencies or their, duly authorized representatives.

7.1.	Destruction or condemnation may be resorted to under any of the following circumstances:
	7.1.1.	The property has no commercial value. No commercial value means that the property has been determined to have neither utility nor monetary value either as an item or as scrap.
	7.1.2.	The property is beyond economic repair.
	7.1.3	The property has no willing receiver.
	7.1.4	The cost of care, handling and preparation of the.property for sale would be greater than its appraisal value.
	7.1.5	A law or regulation requires destruction or condemnation of the property.
	7.1.6	Written instructions by a duly authorized official (health, safety or security officer) for direct destruction or condemnation.
7.2.	Destruction or condemnation may only be done through burning (except if it would affect the ozone layer) pounding or throwing beyond recovery and the like.
7.3.	The Resident Auditor/Local Field Auditor must be present during the destruction of the property.
7.4.	A Waste Material Report (WMR) (Form 3), shall be prepared by the responsible officer to document the destruction or condemnation of the property. For the lower courts, the responsible officer shall forward these documents to the Supreme Court Property Division in triplicate.

1.1.	Certain properties may constitute items of genuine heritage and cultural value, which must therefore be preserved for future generations. These items include gifts and donations from foreign governments and individuals received for the court where the recipient is assigned, or for the Judiciary as an institution, or otherwise given to the recipient not in the Matter’s personal capacity or in appreciation of the recipient. The recipient may, however, donate an item received in his/her personal capacity to the court where he/she is assigned or to the Judiciary as an institution, in which case it shall be acted upon in accordance with these guidelines.
1.2	Before disposing of such items, the Disposal Committee shall first determine whether the items may be considered of cultural value, which organizations are suitable custodians of the items, and whether to sell, lend or donate the items on a long term basis. In making such determination, the Disposal Committee shall also consider the capability of his/her court to preserve the item.
1.3.	When disposing of items of cultural value it is not always appropriate to seek the best available net return. When offering items to museums, special interest groups or the community, it is important to consider the organization’s capacity to purchase, maintain and care for the items. In some circumstances, it may be more desirable to accept an offer which is less than the market value to ensure that the items are preserved by the.appropriate organization or institution.

2.1	Technology property shall be understood to include such equipment as computers, printers, modems, fax machines, automatic voltage regulators, and similar equipment including the software contained therein.
2.2	Prior to disposing of technology property, the Disposal Committee shall ensure that:
	2.2.1.	All storage media, such as hard disks, are properly erased so that data is unrecoverable. If data cannot be erased due to a non-functioning device, then the storage medium should be physically damaged to prevent recovery of data. In case of the latter, notice shall be given to the buyer that the storage medium is so damaged.
	2.2.2	All configuration data from computers, print servers, communications equipment, etc. shall be erased so that no network information can be retrieved.
	2.2.3	All data on a computer are checked, archived and destroyed as necessary.
	2.2.4	Software licenses for the computer af’e noted and transferred to the appropriate personnel.
2.3.	In disposing of technology-property, it must be considered that an improved return on disposal can be achieved where the equipment is seen to be in working order prior to it being taken out of service.
2.4.	In disposing of software, it is important to determine whether it is owned or licensed by the Judiciary. If the status is unclear, advice from the Property Division must be sought. Software licenses may be resold depending on the terms of the license. Sales must include the original disks and documentation.

3.1	The Property Officer shall maintain a record of all expenses related to the maintenance of Judiciary vehicles under his/her jurisdiction, (Form 4)
3.2	Regardless of the estimated economic life of vehicles as stated in a subsequent section when, based on the aforementioned record, it becomes apparent that the cost for maintaining a certain vehicle – consisting of costs of repairs and consumables other than fuel and motor oil – exceeds its potential resale value, the same may be considered unnecessary by the Property Officer and thus recommend for disposal.

4.1.

Special consideration must be given to the nature of intellectual property and their disposal. Intellectual property includes patents, trademarks, copyright, licenses or any other items considered appropriate by the Property Division. The Office of the Chief Attorney of the Supreme Court has overall responsibility for decisions on requests to assign or dispose of intellectual property in which the Judiciary or the National Government owns copyright.