PROVIDING A PROGRAM
FOR THE MANAGEMENT OF UNNECESSARY PROPERTY OF THE JUDICIARY.
WHEREAS, the Davide Watch envisions a
that is, among others, effective and efficient, and toward that end,
that the Judiciary shall engage in long-range planning, especially as
allocation of human and other resources, to effectively respond to
while preserving the core values of the Judiciary; and
WHEREAS, the Constitutional Fiscal Autonomy Group
has established guidelines for the disposal of unserviceable government
properties to avoid their further deterioration, as well as to generate
benefits in terms of higher appraisal value, lower storage costs, and
management of office space;
WHEREAS, the centralized disposal of
Judiciary properties in the lower courts has proven to be inefficient
of economic management as transporting back to the Supreme Court of
properties for disposal has often resulted in wastage, loss or
the properties, and in additional costs for handling and transportation;
WHEREAS, there is thus a need for guidelines for
disposal of unnecessary Judiciary properties, taking into consideration
facilities and resources available to the different levels of courts
regard to such disposal;
WHEREFORE, a program is hereby provided for the
of unnecessary properties of the Judiciary.
1. Definition of
property" is property that is not essential to the needs or operations
the particular office that has possession of it. The term shall include
due to changed procedures, functions or usage patterns;
comply with occupational health and safety standards;
are no longer
their economic life;
unserviceable for any cause;
repair or maintenance in excess of fifty percent (50%) of its current
special handling, such as gifts and decorations from foreign
individuals, and items of cultural value.
officer" refers to the official tasked with undertaking the disposal of
Judiciary property under their authority. For the Supreme Court, the
refers to the SC Disposal Committee or as the case may be, the SC Chief
Judicial Staff Officer of the Property Division, Office of
Services. For all other courts, the term refers to the Chairperson of
pertinent Disposal Committee. For all courts below the Supreme Court,
actions required under this Administrative Order from the responsible
shall be understood to have been performed in coordination and
the members of the pertinent Disposal Committee.
2. Guiding Principles
guidelines shall cover all Judiciary property consisting of equipment,
furniture, fixtures, supplies and materials, transport equipment and
of unnecessary Judiciary property must be transparent. The
may, therefore, be asked to justify decisions taken and should exercise
judgment in making disposal decisions.
responsible officer shall at all times be aware of the status of
possessed by the court/s in which he/she is assigned. To this end,
endeavor to maintain complete and accurate records of Judiciary
Items can be
available for disposal once they become unnecessary property.
disposal of property or equipment may be made by the Property Officer,
responsible officer of the: (a) Supreme Court Disposal Committee; (b)
Disposal Committee (RDC); or (c) Metropolitan Trial Court Disposal
(MeTCDC) in instances where the property or equipment to be disposed
remnants of fire, earthquake or similar calamities, and their
could no longer be ascertained. In such a situation, the Property
responsible officer, may dispose the said property or equipment,
prior authorization of the Chairman of the, respective Committees.
disposal in areas outside of Metro Manila should occur in those areas
is practicable and economically viable.
will not offer any warrant on the condition of items it disposes,
when such disposal is conducted by sale or auction.
principles of depreciation accounting shall be applied where necessary.
equipment shall be sold not lower than its book value or salvage value
determined using the following formula:
Appraised Value (AV) = Book Value (BV) where:
BV = Acquisition Cost (AC) x Depreciation Factor (D)
D = remaining
For items exceeding their
useful life, the
appraised value (AV) shall be equal to their salvage value (SV) or ten
(10%) of their acquisition cost (AC).
following table states the estimated economic lives of the properties
I. MOTOR VEHICLES
III. MACHINERIES & EQUIPMENT
are derived from the disposal of unnecessary property, such proceeds
constitute part of the Judiciary Development Fund pursuant to the
Resolution dated 19 September 1999 in A.M. No. 99-8-01-SC.
The following Disposal Committees are hereby
Court Disposal Committee.
A Disposal Committee is hereby established in the
for all offices under it, hereafter known as Supreme Court Disposal
(SCDC) composed of the following:
-The Clerk of Court or his
duly authorized representative
-The Court Administrator or his
duly authorized representative
1. Chief Accountant, SC, or
his duly authorized representative
Staff Officer, Property Division, SC
Staff Officer, Property Division, OCA
To be designated by the Chairman
2. Regional Disposal Committee (RDC).
One RDC shall be created in each of the fourteen
Regions. It shall take charge of the disposal of unnecessary properties
Regional Trial Court, the Municipal Trial Court in Cities, the
Courts, the Municipal Circuit Trial Courts, and the Shari'a District
Circuit Courts in any particular Judicial Region. Each RDC shall be
the Regional Trial Court (RTC) Executive Judge as Chairman and two (2)
judges, a first level court judge, and the RTC Clerk of Court (OCC) as
The Chairman shall nominate for appointment by the Chief Justice the
RTC judges and the judge representing the first level courts as
appoint the three-member Secretariat from among personnel under his/her
territorial jurisdiction. The Office of the Court Administrator shall
that the fourteen (14) RDCs are organized within three months from the
effectivity of this Order.
3. Metropolitan Trial Court Disposal
A MeTCDC shall be created for the Metropolitan
Trial Court in the
National Capital Judicial Region which shall take charge of the
unnecessary Judiciary property under its control and administration.
shall be composed of the Executive Judge as Chairperson and another
Metropolitan Trial Court Judge and the Clerk of Court (OCC) as members.
Chairperson shall nominate for appointment by the Chief Justice the
member-judge and shall appoint the three-member Secretariat from among
personnel under his/her territorial jurisdiction. The Office of the
Administrator shall ensure that the MeTCDC is organized within three
from the effectivity of this Order.
1. Within one (1) month from the issuance of
this order, the
responsible officer shall carry out a physical inspection of the court
he/she is assigned to: (1) inventory all supplies and equipment within
court; (2) request copies of the list of properties issued in the
his/her jurisdiction; and, (3) if possible request the corresponding
the Memorandum Receipts therefor for purposes of reconciliation.
shall maintain a secure, computerized record of said inventory where
or a manual record where a computer is not available. Thereafter, said
shall regularly update the record of properties within the court in
he/she is assigned. (Form 1)
2. The inventory shall contain the following
number, funding number and other specifications necessary for
correct identification of the properties inventoried.
description of the nature and condition of the properties, including a
determination of whether any of the properties is still operational,
repair, repairable, or beyond repair, and a description of the extent
mileage, rate of depreciation and any excessive wear and tear of the
applicable, a list of the missing parts and the extent of damage which
any of the properties classifiable as unnecessary.
The value of the
3. Upon completion of the inventory, the
shall, upon consultation with the user/s of the subject properties,
which properties may be considered unnecessary and, therefore, suitable
disposal. Thereafter, the responsible officer shall, at least once each
determine which items may be classified as unnecessary property.
4. The responsible officer shall request an
inspection by the
Resident Auditor or local field auditor, as the case may be, of the
classified as unnecessary.
5. After the inspection and based on the
the responsible officer shall decide whether to recommend the disposal
of the unnecessary properties; However, before disposal is recommended,
responsible officer shall determine whether the item to be disposed may
replaced or repaired under warranty. The responsible officer shall
that option which is most advantageous to the Judiciary.
6. The responsible officer in the lower
court shall first obtain
authority to dispose of the unnecessary property from the Property
the Office of the Court Administrator prior to disposal. A proper
the properties to be disposed, including their assessed value, shall be
and the proposed mode of disposal of the same shall be indicated
Based on the requests for authority received from responsible officers
lower courts, the Property Division shall generate further guidelines
the responsible officers to reach decisions on disposal.
7. The responsible officer shall determine
whether it is
beneficial to the Judiciary to perform minor repairs on items prior to
disposal based on whether such repair will make the items more saleable
provided that the increase in return is greater than the cost of repair.
8. The responsible officer shall ensure that
properties are, prior to disposal, kept in a secure location and not
disengaged from service so as not to impair the value or condition
to minimize the risk of theft, damage, loss or deterioration.
9. The responsible officer shall ensure that
items for disposal
do not contain material that is not intended for disposal, as failure
to do so
could result in material being misused or used for fraudulent purposes,
confidential information being leaked. Materials that should be
include stationery (especially stationery containing the letterhead of
court), computer software, records, files, and other papers.
responsible officer shall ensure that the notice or invitation for the
of the property shall contain a good comprehensive description of the
to be disposed to ensure its quick disposition. Inadequate or
descriptions result in follow- ups to obtain the necessary information,
to delays in the disposal process and lost opportunities for quick
Modes of Disposal
Unnecessary property may be disposed by trade-in,
other offices of the Judiciary, sale to personnel, public auction or
sale through negotiation after two (2) unsuccessful public biddings or
of public auction, transfer without costs to other government agencies,
destruction or condemnation. The Disposal Committee shall undertake
of disposal which is most advantageous to the Judiciary.
properties may be traded-in for upgraded items.
reasonable options for trade-in, the Disposal Committee shall obtain
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
to the one being disposed. (Form 2)
requested companies shall be allowed a period of seven (7) days from
receipt of the request to submit their offer for trade-in. After the
the period, the responsible officer shall commence evaluation of the
which bidder to trade-in the item being disposed, the responsible
take into consideration the price which represents a fair value for the
2. Transfer to Other
Committee shall, once per quarter, report to the Supreme Court Property
Division unnecessary properties and the additional properties required
court/s under his/her jurisdiction.
Court Property Division shall then cause to be transferred to the
court those usable excess properties from other court/s or office/s,
consideration the Guiding Principles stated above.
3. Sale to Personnel
personnel shall not be seen as a staff entitlement but merely a
selected by the Disposal Committee to maximize returns on asset
Sale to personnel
shall, for Supreme Court property, be conducted by the Committee on
for property of the lower courts, by the applicable Disposal Committee.
In order to
determine the best price for the unnecessary property, and ensure
the sale process, the Disposal Committee shall ensure the widest
participation of personnel by posting a notice of sale in three (3)
areas in the Hall of Justice or the building in which the court
the property is located. The notice shall state the specifications of
unnecessary property, the minimum allowable price for the property, the
time and place for the opening of bids for the property, the location
property is stored, the dates when the property may be inspected, and
when bids may be submitted; provided that the bids shall be submitted
responsible officer during office hours within the dates stated in the
provided further that during the time designated for the opening of
further bids shall be received.
responsible officer, or in the case of the Committee on Bids, the
Secretary, shall number the submitted bids according to the order in
these were received by him/her.
of bids shall be conducted in the presence of the personnel who
submitted a bid
for the property to be disposed.
shall be awarded to the highest bidder complying with the minimum
4. Public Auction or
auction or bidding shall, for Supreme Court property, be conducted by
Committee on Bids; and for property of the lower courts, by the
appropriate committee shall comply with prevailing publication
prior to actual bidding or auction. For this reason, the
ensure that the returns to be gained from the auction shall exceed the
publication. In case the cost of publication exceeds the expected
posting in conspicuous place for a period of ten (10) days must be made.
appropriate committee shall likewise comply with prevailing
the opening and awarding of bids in public auctions or bidding.
5. Sale through
(2) unsuccessful public biddings, the Disposal Committee may dispose of
excess property by sale through negotiation. For this purpose, the
Bids shall first certify to two (2) unsuccessful public biddings, and,
of which, shall authorize at least three (3) members of the Committee
the responsible officer (lower courts) to conduct sale through
negotiation shall be subject to such competition as is feasible.
6. Transfer without
another government agency shall be resorted to when trade-in or
other offices of unnecessary property are inappropriate or impractical,
when the attempted sale of said property has produced no result;
such transfer shall be without cost.
without cost shall be submitted to the Chief Justice or his duly
representative for approval.
shall be authorized by the heads of either agencies or their duly
7. Destruction or
or condemnation may be resorted to under any of the following
property has no commercial value. No commercial value means that
has been determined to have neither utility nor monetary value either
as an item
or as scrap.
property is beyond economic repair.
property has no willing receiver.
of care, handling and preparation of the property for sale would be
than its appraisal value.
A law or
regulation requires destruction or condemnation of the property.
instructions by a duly authorized official (health, safety or security
for direct destruction or condemnation.
or condemnation may only be done through burning (except if it would
ozone layer) pounding or throwing beyond recovery and the like.
Auditor/Local Field Auditor must be present during the destruction of
Material Report (WMR) (Form 3), shall be prepared by the responsible
document the destruction or condemnation of the property. For the
courts, the responsible officer shall forward these documents to the
Court Property Division in triplicate.
Procedures for Certain Properties
1. Items of Cultural
properties may constitute items of genuine heritage and cultural value,
must therefore be preserved for future generations. These items include
and donations from foreign governments and individuals received for the
where the recipient is assigned, or for the Judiciary as an
otherwise given to the recipient not in the latter's personal capacity
appreciation of the recipient. The recipient may, however, donate an
received in his/her personal capacity to the court where he/she is
to the Judiciary as an institution, in which case it shall be acted
accordance with these guidelines.
disposing of such items, the Disposal Committee shall first determine
the items may be considered of cultural value, which organizations are
custodians of the items, and whether to sell, lend or donate the items
long term basis. In making such determination, the Disposal Committee
also consider the capability of his/her court to preserve the item.
disposing of items of cultural value it is not always appropriate to
best available net return. When offering items to museums,
groups or the community, it is important to consider the organization's
capacity to purchase, maintain and care for the items. In some
it maybe more desirable to accept an offer which is less than the
to ensure that the items are preserved by the appropriate organization
property shall be understood to include such equipment as computers,
modems, fax machines, automatic voltage regulators, and similar
including the software contained therein.
disposing of technology property, the Disposal Committee shall ensure
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
case of the latter, notice shall be given to the buyer that the storage
is so damaged.
configuration data from computers, print servers, communications
etc. shall be erased so that no network information can be retrieved.
on a computer are checked, archived and destroyed as necessary.
licenses for the computer are noted and transferred to the appropriate
of technology-property, it must be considered that an improved return
disposal can be achieved where the equipment is seen to be in working
prior to it being taken out of service.
of software, it is important to determine whether it is owned or
the Judiciary. If the status is unclear, advice from the Property
be sought. Software licenses may be resold depending on the terms of
license. Sales must include the original disks and documentation.
Officer shall maintain a record of all expenses related to the
Judiciary vehicles under his/her jurisdiction. (Form 4)
of the estimated economic life of vehicles as stated in a subsequent
when, based on the aforementioned record, it becomes apparent that the
maintaining a certain vehicle - consisting of costs of repairs and
other than fuel and motor oil - exceeds its potential resale value, the
may be considered unnecessary by the Property Officer and thus
consideration must be given to the nature of intellectual property and
disposal. Intellectual property includes patents, trademarks,
licenses or any other items considered appropriate by the Property
The Office of the Chief Attorney of the Supreme Court has overall
responsibility for decisions on requests to assign or dispose of
property in which the Judiciary or the National Government owns
Applicable to All Modes of Disposal
1. After disposal, the Disposal Committee or
officer must, within a period of ten (10) days, furnish the Financial
Management and Budget Office, SC, or Financial Management Office, OCA,
lower courts and the Resident Auditor or local field auditor a WMR or
Receipt of the property disposed, as the case may be, to support the
of the property from the Books of Account.
2. After disposal, the Disposal Committee or
officer shall accomplish the Disposal Report (Form 5), and submit the
the Head of the Property Division, who shall then consolidate all such
submitted from the lower courts with disposals conducted by the Supreme
into a Disposal Report. The Head of the Property Division shall submit
consolidated report to the Chief of Administrative Services and the
Administrator for their appropriate action and planning.
3. To ensure that disposals are undertaken
in an efficient,
consistent and equitable manner, the Supreme Court Property Division
once per semester, evaluate the process and outcome of each disposal.
Evaluations should include all information and relevant facts about the
disposal and should document all decisions made so as to create an
for future reference. The audit and review of asset disposal processes
included in the Supreme Court's internal audit program.
4. The Supreme Court Property Division shall
use the evaluations
referred to above to formulate cost-benefit models to assist in the
of the most appropriate disposal method, and to identify risks and
arrangements to effectively and address such risks.
1. The Office of Administrative Services, in
the Philippine Judicial Academy (PHILJA) and the Office of the Court
Administrator, shall ensure that the necessary personnel shall receive
training or orientation to effectively implement the provisions of this
The training and orientation of said personnel shall be completed
(8) months from the effectivity of this Order.
2. The Management Information Systems Office
(MISO) shall design
a computer program that will accommodate the requirements of this
the end in view of facilitating and/or automating the disposal process.
required computer program shall be completed within six (6) months from
of this Order. Upon completion of the program, the MISO, in
the PHILJA, shall ensure that the necessary personnel shall receive the
required training regarding the operation of the program.
3. In the interest of transparency and
accountability, the Public
Information Office shall ensure that this Order is publicized to the
various publics in whatever form and format it deems appropriate,
upon the effectivity of this Order.
4. This Order shall be published in the
Supreme Court website
immediately upon its effectivity.
This Revised Administrative Circular shall take
Issued this 3rd day of March 2004.