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TABLE OF CONTENTS

APPRAISAL GUIDELINES..........................................................................................
1.0 OBJECTIVES....................................................................................................
2.0 SCOPE and LIMITATIONS.................................................................................
3.0 DEFINITION OF TERMS...................................................................................
4.0 GENERAL GUIDELINES....................................................................................
4.1 Documentation.....................................................................................................................3
4.2 Conduct of Inspection..........................................................................................................4
4.3 Determination of Condition Rating of Property...................................................................6
4.4 Conduct of Appraisal............................................................................................................8
4. Determination of t!e Appraised "alue.................................................................................#
5.0 REVISED FORMULAE ON APPRAISAL OF GOVERNMENT PROPERTIES
EXCEPT REAL ESTATE ANTI!UE PROPERT" AND #OR$S OF ART...................
I%%&'()a(*+, E-a./%,'............................................................................................
TABLES.................................................................................................................................................1$
TABLE 1. COMPONENT RATING TABLES %%%%%%%%%18
TABLE 2. TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY, PLANT
AND EQUIPMENT 23
TABLE 3. TABLE OF PESO/DOLLAR EXCHANGE RATES...............................2
ANNEXES..............................................................................................................................................26
A&&'( A.................................................................................................................................2$
A&&'( ).................................................................................................................................2#
A&&'( C.................................................................................................................................3*
A&&'( C1...............................................................................................................................32
A&&'( C2...............................................................................................................................3
A&&'( D.................................................................................................................................38
A&&'( '..................................................................................................................................3#
A&&'( +..................................................................................................................................41
APPRAISAL GUIDELINES
1.0 OBJECTIVES
1.1 To achieve uniformity and consistency in the conduct of appraisal of
government property for disposal;
1.2 To promote facility in the computation of appraised values;
1.3 To attain more realistic valuations of property under disposal based
on the actual state or condition of properties being disposed of; and
1.4 To provide a reliable basis of ensuring that government recovers a fair
return from the disposal of its properties.
2.0 SCOPE and LIMITATIONS
These guidelines describe the general procedures in the appraisal of
government properties for disposal of National Government Agencies and
Instrumentalities, Local Government Units and Government-Owned and/or
Controlled Corporations and their subsidiaries, except works of art, antique
property and real estate. Antique property and works of art shall be appraised by
the National Museum, and real estate shall be appraised under a separate set of
guidelines.
3.0 DEFINITION OF TERMS
Acquisition Cost (AC) the price at which the property was acquired which
also includes related expenses incurred during the
acquisition/construction of the property such as taxes, license fees,
permit fees, clearance fees, etc.
Appraised Value (AV) an opinion of an appraiser which is based upon an
interpretation of facts and beliefs into an estimate of value, as of a stated date.
Condition Factor (CF) the adjustment factor used to consider the actual
condition of the property under appraisal thru an evaluation of the
state or condition of the major components of such property relative
to an ideally functioning model. The condition factor is usually
estimated based on the component and condition rating of the
property.
Currency Fluctuation Factor (CFF) refers to the adjustment factor used
to take into account the devaluation or revaluation of the peso from
the year of acquisition to the year of appraisal.
Current Market Value (CMV) is the price estimated which a property will
bring if exposed for sale in the open market, allowing a reasonable
time to fnd a buyer who buys with knowledge of the actual condition
and utility of the property.
Deterioration refecting the loss in value brought about by wear and tear,
disintegration, use in service and the action of the elements.
Economic Obsolescence refecting the loss in value brought about by
external economic forces, such as legislative enactments restricting or
impairing the use of subject equipment
Efective Remaining Useful Life (ERUL) refers to the number of years
from the date of appraisal to the anticipated date that a property may
be utilized proftably.
Estimated Useful Life (EUL) refers to the estimated period of time (years)
for which a property is anticipated to be useful assuming normal
utilization. See Table 2 for Table of Estimated Useful Life.
Functional Obsolescence refecting loss in value due to functional
inadequacy or over adequacy due to size, style or age brought about
by changes in art or poor planning.
Junk/Scrap Value the price of scrap/junk metal or lumber prevailing in
the local market.
Locally Manufactured Properties refers to the properties which are one
hundred percent (100%) sourced locally and no part of which is
imported from other countries.
Price Index Factor (PIF) refers to the adjustment factor which refects the
changes that occur in the prices of commodities, raw materials,
manufactured goods and the like from the year of manufacture to the
year of appraisal. (Source: National Statistics Ofce]
Replacement Cost New (RCN) the cost of construction at current prices of
a property having a utility equivalent to the property being appraised
2
but built with modern materials and according to current standards,
design and layout. The use of the replacement cost concept
presumably eliminates all functional obsolescence, and the only
depreciation to be measured is physical deterioration and economic
obsolescence.
Salvage Value the amount that could be realized from the sale of a
component/part of an asset to be removed for use, wholly or in part,
elsewhere.
Sound Value a measure of value widely used by valuers and appraisers, is
derived from replacement cost new (RCN), adjusted to the observed
condition of the property for appraisal.
4.0 GENERAL GUIDELINES
4.1 Documentation
4.1.1 Before the appraiser commences the inspection of property to be
appraised, he has to check whether the corresponding form for
disposal has been properly accomplished. The forms used for
disposal are:
a) Inventory and Inspection Report of Unserviceable Property
(Annex A)
This form is used for the disposal of vehicles, ofce equipment,
furniture, and other properties, plant and equipment which can no
longer be repaired or reconditioned and whose maintenance cost of
repair outweighs or is more than the benefts and services that will be
derived from its continued use. When accomplished, this form
should contain the list of valuable parts of the article or equipment
which possesses intrinsic value or which may be useful in making
repairs to other articles or equipment. This form should also contain
the list of missing parts, if any, which should be accompanied by a
certifcation of the property ofcer or custodian as to whether the
missing parts were removed for future stock or have been utilized
already for repair purposes.
b) Waste Materials Report (Annex B )
This form shall be used to report all waste materials previously
taken up in the books as assets so that they may be properly
disposed of and dropped from the accounts.
This form is used in the disposal of waste materials which result
from the consumption or utilization of expendable materials, and
covers damaged equipment parts, empty containers, and remnants
salvaged from destroyed or damaged property, plant and equipment.

4.1.2 The appraiser shall likewise accomplish the Checklist for
Unserviceable Equipment. This Checklist for Unserviceable
Equipment shall indicate the individual component/part of the
3
equipment with their condition, whether serviceable, unserviceable,
missing, etc. The agency could device their own form most
appropriate to the equipment for appraisal. (See Annex C and D for
the Checklist for Unserviceable Equipment)
4.1.3 If the property to be appraised is no longer available for
inspection, as in the case of lost or burned equipment for which
accountability is being assessed, the appraiser shall forego the ocular
inspection, and proceed to the next succeeding appraisal step.
4.2 Conduct of Inspection
In the conduct of the inspection of the property to be appraised, the
appraiser shall perform the following, where applicable:
4.2.1 Identify the property in accordance with its descriptions in the
inventory list or directive.
4.2.2 Verify stated ratings, capacity, model, year of manufacture, serial
number, chassis number, motor number and other technical
specifcations, and accessories, if any.
4.2.3 Determine the correct date when property has been acquired or its
present age/number of years property has been actually used or
operated.
4.2.4 Check the condition of the property; determine whether operational,
under repair, or irreparable.
4.2.5 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.
4.2.6 Determine if property is economically repairable and the most
probable cost of its repairs, and current cost of spare parts.
4.2.7 Determine the extent of use, mileage, rate of depreciation, and
any excessive wear and tear.
4.2.8 Determine quality or degree of maintenance, repair, restoration
or upgrading made, check logbook, if available.
4.2.9 See if property is obsolete or is still being manufactured and if spare
parts are still procurable in the market. If property is found obsolete,
appraise the property as junk.
4.2.10 Determine whether property still has market demand; or the existence
of probable buyers in the locality.
4.2.11 See if property is sheltered or exposed to elements and theft.
4.2.12 Inspect the location of the properties and the available facilities for its
transportation.
4.2.13 If property is to be disposed of as junk, determine parts which could be
salvaged or proftably used such as engine, dynamo, wheels, tires,
axles, body/chassis, etc. of motor vehicles.
These salvaged parts could either be transferred to or used by other
equipment or shall serve as its spare or standby parts.
4
In cases where there are no equipment which could make use of these
salvaged parts, determine if there are available buyers of these parts
and if disposing them separately from the equipment would bring the
best returns to the agency.
The objective of the inspection is to supplement theoretical
computations of value with frst hand observation of the condition of
the property. The depreciation mentioned here refers to observed
depreciation to distinguish the results of personal inspection from
those of theoretical estimates.
4.3 Determination of Condition Rating of Property
4.3.1 The condition rating of the property is obtained based on the
following:
Very Good (VG)
(80-100%)

This term describes a property in excellent


condition capable of being used to its fully
specifed utilization for its designed
purpose without being modifed and not
requiring any repairs or abnormal
maintenance at the time of inspection or
within the foreseeable future
Good Condition (G)
(55-75%)

This term describes a property which has


been modifed or repaired and is being used
at or near its fully specifed utilization, but
the efects 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 specifed
utilization in the foreseeable future.
Fair Condition (F)
(35-50%)

This term describes a property which is


being used at some point below its fully
specifed utilization because of the efects
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
specifcations.


Poor Condition (P)
(15-30%)

This term is used to describe a property


which can only be used at some point well
below its fully specifed utilization and it is
not possible to realize full capability in its
current condition without extensive repairs
and/or replacement of major elements in
the very near future.
Scrap Condition (S)
(0-10%)

This term 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
modifcations to which they may be
subjected (beyond economical repair). This
condition is for properties which have used
up 100 percent of their useful life or which
are 100 percent technologically ,
functionally, economically or statutorily
obsolete
The above Guidelines in Observing Condition of Property were adopted from
the American Appraisal Company, Michigan, and U.S.A.
4.3.2 The gap in percentage allocation is aimed at delineating the factors
between condition categories. The 4% diference in each case clearly
sets the limits of percentage range.
4.3.3 The percentage range within each category allows the appraiser some
discretion in assigning a percentage based on his observation.
4.3.3 The condition rating is the weighted average of the individual
component rating.
- For furniture and non-mechanized implements which have no
major components but are treated as a whole unit, condition
factor shall be equal to the condition rating of the unit itself.
Example:
Condition Rating - Very Good
Condition Factor - 0.8 to 1.0
- With respect to vehicles, mechanized equipment, etc. which are
made up of several components, the condition factor is the sum
of condition rating x % weight for all components. See Table 1 for
the component rating of vehicles, heavy equipment, window type
air-conditioning unit, manual typewriter and dental equipment.
6
These component ratings were derived from the price of each
component in relation to the total price of the property expressed
in percentages.
- In the case of property which is no longer available for
inspection, as in the case of lost or burned equipment for which
accountability is being assessed, the condition factor shall be
assumed to be 1.0.
4.4 Conduct of Appraisal
The Appraisal Process in general consists of:
4.4.1 conducting an ocular inspection of the property to be appraised to
assess its physical condition and to determine condition rating.
4.4.2 seeking reference price information such as:
- acquisition cost, or
- current market price of similar property, or
- replacement cost for a similar new property;
- prices from second hand rebuilders and reconditioners of
machinery, cars or equipment;
- currency exchange rates for acquisition year and current year.
4.4.3 computing the appraised value by following the revised formulae
on appraisal of government properties except real estate, antique
property and works of art contained in Section 5.0 hereof, which
will take into account the:
- propertys 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,
obsolescence, 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 the property as well as favorable changes in the
exchange value of the Philippine peso.
4.5 Determination of the Appraised alue
4.5.1 Unserviceable property which can no longer be repaired or
reconditioned and waste materials shall be appraised at scrap or junk
value.
4.5.2 For unserviceable property which can still be repaired or reconditioned,
and property no longer needed which are still functional, shall be
appraised based on the following:
$
4.5.2.1 It shall be appraised on the Current Market Value
(CMV), if such is available.
4.5.2.2 If CMV is not available, it shall be appraised at its
Replacement Cost New (RCN).
4.5.2.3 If CMV and RCN are both not available, the property
shall be appraised at its Acquisition Cost (AC). If the
property at the time of acquisition is brand new,
adjust against observed condition at the time of
appraisal. If the property was acquired second hand,
condition at date of acquisition must be defned before
any adjustment is made.
4.5.3 The determination of Salvage Value of component/part of an asset
found to be serviceable shall be based on the hierarchy under 4.5.2
above.
4.5.4 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.
5.0 REVISED FORMULAE ON APPRAISAL OF GOVERNMENT PROPERTIES
EXCEPT REAL ESTATE, ANTIQUE PROPERTY AND WORKS OF ART
5.1 When property is still operational/functional or can be repaired:
5.1.1 When Current Market Value of a comparable property is
available
CF 1
AV = CMV x
CF 2
where:
AV Appraised Value
CMV Current Market Value
CF1 Condition Factor of the Property being
appraised
CF2 Condition Factor of the Advertised/ Canvassed
Property
When CMV, RCN and AC are all available, CMV shall be
adopted in the computation of the Appraised Value. The CMV
shall be taken from advertised prices of used equipment of the
same make and model or similar models from newspapers,
8
publications of associations, etc. of general circulation. There
should at least be two (2) advertised prices for similar properties,
the lowest of which shall be considered as CMV in the
computation of the AV.
5.1.2 When Replacement Cost-New is available - this formula shall
only apply if CMV is not available.
a. When the Estimated Useful Life (EUL) of the property is
available
ERUL
AV = RCN x
EUL
where:
RCN Replacement Cost - New
ERUL Efective Remaining Useful Life
EUL Estimated useful Life (Table 2)
b. When the Estimated Useful Life (EUL) of the property is not
available
AV = RCN x CF
where:
RCN Replacement Cost - New
CF Condition Factor of the Property
being appraised
5.1.3 When Acquisition Cost (AC) is available, the cost indicated in
the Property Acknowledgement Receipt (PAR) shall be
recognized as AC if the Purchase Order/Invoice are no longer
available. However, if the PAR indicates, among others, that
the property acquired is second hand (not brand new), the
appraiser shall consider the additional expenses incurred, if
any, for the reconditioning/rehabilitation of said property.
a. For Imported Properties
AV = (AC x CFF) x CF
where:
AC Acquisition Cost
CFF Currency Fluctuation Factor
P/dollar exchange rate on year of
appraisal
CFF =
P/dollar exchange rate on year of
acquisition
CF Condition Factor of the Property
#
b. For locally Manufactured Properties - this formula shall
apply to properties which are one hundred percent 100%
sourced locally and no part of which is imported. (Ex.
Furniture, steel cabinets, etc.)
AV = (AC x PIF) CF
where:
PIF Price Index Factor
Price Index on year of Appraisal
PIF =
Price Index on year of Acquisition
(Source of Price Indices : National Statistics Ofce, NSO)
5.2 For waste materials and property which are unserviceable and can no
longer be repaired/reconditioned - the end user shall determine the
unserviceability of the property and shall be supported with the
History Card/record and Checklist of Unserviceable Vehicles/Heavy
Equipment.
AV = Junk Value
where Junk Value is based on prevailing price of scrap
metal or lumber, whichever is appropriate.
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.
Computers and their peripherals shall be appraised based on
their junk value due to obsolescence brought about by the rapid
change and development in the industry.
Illustrative Examples
A.When Current Market Value (CMV) of a comparable property is available
Given: Based on the data contained under the Inventory and
Inspection Report of Unserviceable Property (Annex A
1
)
Property Description:
Mitsubishi L-200 D/Cab Pick-up, Diesel Fed Model 1995, Silver Gray,
Loaded, w/Stepboard & Bedliner
Plate No. UFC 963, Engine No. 4D56A-D5940
Chassis No. K14TJUNSL-010751
Acquisition Date: AD = December 16, 1995
Acquisition Cost: AC = P495,000.00
Date of Appraisal: June 26, 2000
Solution:
CF
1
AV = CMV x
CF
2
CMV = P209,000.00
1*
Advertised Prices (similar brand and year model from Used
Car Dealers):
a) P209,000.00
b)P260,000.00
c)P285,000.00
CF
1
=

Condition Factor of subject property

CF
2
= Condition Factor of comparable property
CF
1
(see attached check list of subject property, Annex C
1
)
Component % Weight CF
Engine 23 0.80 = 0.1840
Transmission 7 0.90 = 0.0630
Diferential 5 0.90 = 0.0450
Body/Chassis 35 0.75 = 0.2625
Others 30 0.75 = 0.2250
Total: 0.7795
CF
2
(see attached check list of comparable property, Annex C
2
)
Component % Weight CF
Engine 23 0.60 = 0.1380
Transmission 7 0.85 = 0.0595
Diferential 5 0.85 = 0.0425
Body/Chassis 35 0.70 = 0.2450
Others 30 0.40 = 0.1200
Total: 0.6050
Thus:
0.7795
AV = (P209,000.00) = P269,282.00
0.6050
B. When Replacement Cost New (RCN) is available
1)When the Estimated Useful Life (EUL) of the property is
available
Given: Same vehicle/property used in the above CMV method
Solution: To determine RCN of the vehicle under appraisal:
The cost of brand new engines for the vehicle available in the
market is P100,000.00/unit. Therefore:
Component
%
weight
Engine 23 =
0.23(P100,000.00)
= P 100,000.00
0.23
Transmission 7 =
0.07(P100,000.00)
= 30,435.00
0.23
Diferential 5 =
0.05(P100,000.00)
= 21,739.00
0.23
Body/Chassis 35 =
0.35(P100,000.00)
= 152,174.00
0.23
11
Others 30 =
0.30(P100,000.00)
= 130,435.00
0.23
434,783.00
say: 435,000.00
Add Cost of Assembly,OCM: 65,000.00
RCN = P 500,000.00
Note: If there are available price data in the market for the other components,
use the market data of said components rather than the ratio and
proportion applied above.
Component % weight ERUL EUL
Engine 23 6 7 = 0.1971
Transmission 7 6 7 = 0.0600
Diferential 5 6 7 = 0.0430
Body/Chassis 35 5 7 = 0.2500
Others 30 5 7 = 0.2140
0.7641
AV = (P500,000.00) 0.7641
AV = P382,050.00
2)When the Estimated Useful Life (EUL) of the property is not available
Given: Same vehicle/property used in the above CMV Method
Solution:
AV = RCN x CF
where:
RCN = P500,000.00 (from B.1 above)
CF = 0.7795 (from CMV Method above)
AV = P500,000.00 x 0.7795
AV = P389,750.00
C.When Acquisition Cost (AC) is available
For imported properties: Acquisition Cost Method
AV = AC x CFF x CF
where:
CFF= Currency Fluctuation Factor
= P/$ exchange rate on year of appraisal
P/$ exchange rate on year of acquisition
40
= = 1.56
25.7144
CF = 0.7795
12
AV = (P495,000.00) (1.56) (0.7795)
AV = P601,930.00
D.Other Cases:
1)When the property/subject vehicle is lost for which
accountability is being assessed
CF
1
AV = CMV x
CF
2
1
AV = P209,000.00 x
0.6050
where : CF
1
= 1 (condition factor when subject property is lost
under sec. 4.1.3)
AV = P345,455.00
2)When the component, such as engine unit, of the above vehicle
under appraisal is missing/salvaged:
0.7795 0.1840
AV = (P209,000.00)
0.6050
0.5955
AV = (P209,000.00)
0.6050
AV = P205,719.00
where:
0.1840 = over-all CF of the engine unit of the subject
vehicle
3)When the engine unit is beyond economic repair and is
considered junk/scrap:
CF
1
0.1840

AV = CMV x + junk value of the
CF
2
engine unit

where:
junk value Estimated weight scrap/junk value
engine unitof Engine of metal as canvassed

13
,
= 500 kilos (P5.00)

junk value
engine unit
where:
P5.00 = prevailing market value of metal
0.5955
AV = (P209,000.00) + P2,500.00
0.6050
= P205,719.00 + P2,500.00
AV = P208,219.00
14
, P 2-**.**
TABLES
TABLE 1.COMPONENT RATING TABLES
(Source: NIA; Bureau of Equipment; USIPHIL; Monark; Maxima)
Type %
A. VEHICLES
Engine 23
Body and Chassis 35
Transmission 7
Diferential 5
Others 30
B. PASSENGER BUS
Body and Chassis 41
Engine 25
Transmission 7
Diferential 5
Others 22
C. HEAVY EQUIPMENT
Grader
Body and Chassis 35
Engine 25
Transmission 20
Others 20
Bulldozer
Body and Chassis 35
Engine 25
Diferential 11
Transmission 8
Others 21
Dump Truck 6 Wheeler 10 Wheeler
Body and Chassis 35 25
Engine 25 19
Diferential 11 14
Transmission 8 9
Others 21 33
16
Type %
Concrete Mixer
Engine 45
Mixing Drum 35
Body/Chassis/spring/tires/etc. 20
Crane Crawler
Engine 25
Upper Machinery 30
Track group 25
Body/chassis 10
Others, boom bucket, acc. 10
Crane Truck Mounted
Engine (2) 35
Upper Machinery 25
Track group 20
Body/chassis 10
Others, boom bucket, acc. 10
Loader with Backhoe
Engine 25
Transmission 20
Body Chassis 30
Bucket, backhoe, tires & hydraulic 25
Loader Wheel Crawler
Engine 25 30
Transmission 20 25
Body Chassis 35 15
Bucket, tires, hydraulic 20 30
Excavators/Backhoe
Engine 25
Hydraulic System 25
(cyl., valves, hose, pipings)
Track group 25
Body, frame, arms & boom 25
others, bucket, etc.
Farm Tractor
Engine 30
1$
Transmission 25
Body Chassis 20
Others, tires & attachment 25
18
Type %
Truck Tractor
Engine 30
Transmission 10
Diferential (tandem) 10
Body Chassis 25
Others, tires, spring, elect., etc. 25
Trailer for Jeep
Body, chassis 80
Wheel, tires, axle 20
Trailer for Truck Tractor 25 tons Capacity
Body Chassis 60
Wheel, tires, axle 40
Road Roller 1 Drum 2 Drum Pneumatic Roller
Engine 50 40 40
Transmission 20 20 25
Drum 15 25 20 (Tire)
Body Chassis 15 15 15
Roller Vibratory
Engine 40
Transmission 20
Drum 25 (including hydraulic system)
Body Chassis 15
Tractor Crawler
Engine 30
Transmission Steering (Front Drive)25
Track group 30
Body Chassis/dozer 15
Forklift
Engine 35
Transmission 10
Body/Chassis 25
Hydraulic, Tires & 30
Others
D. AIRCONDITIONING UNIT (WINDOW)
1#
Compressor 41
Condenser 14
Evaporator 12
Fan Motor 20
Filter/Drier 3
Others 10
Type %
E. TYPEWRITER (MANUAL)
Carriage Assembly 48
Type Basket Mechanism 35
Keyboards 11
Others 6
F. DENTAL EQUIPMENT
Dental Unit & Chair 62
Air Scaler 14
Air Motor 14
Compressor HP 5
High Speed 3
Dental Stool 2
G. MOTORCYCLE
Engine 23
Clutch, transmission, 35
sprocket & chain
Body/Chassis, shock 30
absorber & tank
Others, wheel tires, 12
electrical
H. OTHERS
Concrete Vibrator
Engine 85
Vibrator 15
Pump
Engine 65
Pump 35
Generating Set
Engine 60
2*
Generator 40
Welding Machine
Engine 60
Generator 40
21
Type %
Air Compressor
Engine 50
Compressor 30
Body & Others 20
Chainsaw
Engine 80
Saw, etc. 20
Computers, tools and devices, furniture and fxtures are
appraised based on their scrap value, thus, component rating is not
applicable.
22
TABLE 2.TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY,
PLANT AND EQUIPMENT per COA Circular No. 2003-
007 dated December 11,2003
TABLE OF ESTIMATED USEFUL LIFE
OF PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment
Estimated
Useful
Life (in
years)
Land Improvements
! Land Improvements 10
! Runways/taxiways 20
! Railways 40
! Electrifcation, Power and Energy Structures 10
Buildings - those that are predominantly
! Wood 10
! Mixed 20
! Concrete 30
Leasehold Improvements (Note I)
! Land 10
! Building
! Wood 10
! Mixed 20
! Concrete 30
Ofce, Equipment, Furniture and Fixtures
! Ofce Equipment 5
! Furniture and Fixtures 10
! IT Equipment-Hardware 5
! Library Books 5
Machineries and Equipment
! Machineries 10
! Agricultural, Fishery and Forestry 10
! Airport Equipment 10
! Communication Equipment 10
! Construction and Heavy Equipment 10
!
Firefghting Equipment and
Accessories 7
! Hospital Equipment 10
! Medical, Dental and Laboratory Equipment 10
!
Military and Police 10
23
Equipment
! Sports Equipment 10
! Technical and Scientifc Equipment 10
! Other Machineries and Equipment 10
Transportation Equipment
! Motor Vehicles 7
! Trains 10
!
Aircraft and Aircraft Ground
Equipment 10
! Watercrafts 10
! Other Transportation Equipment 10
Other Property, Plant and
Equipment 5
Note
I - The estimated useful life shall depend on the length of the lease.
It shall be the period of the lease or the estimated useful life of
the assets, as given, whichever is shorter.
24
TABLE 3. TABLE OF PESO/DOLLAR EXCHANGE RATES
YEAR PESO/DOLLAR
1962 3.8081
1963 3.8997
1964 3.8998
1965 3.9009
1966 3.8954
1967 3.9152
1968 3.9158
1969 3.9191
1970 3.0246
1971 3.4317
1972 3.6748
1973 3.7562
1974 3.7878
1975 3.2478
1976 3.4402
1977 3.4432
1978 3.3781
1979 3.3776
1980 3.5113
1981 3.8995
1982 3.5399
1983 14.0010
1984 18.0000
1985 19.0000
1986 20.4360
1987 20.6000
1988 21.0947
1989 22.3351
1990 28.0000
27.89, 27.4786
1991 25.3451
1992 27.0940
1993 26.9514
1994 25.7144
1995 26.2157
1996 34.2410
1997 34.8081
1998 40.8931
1999 39.0890
2000 44.1938
2001 50.9927
2002 51.6040
2003
2
ANNEXES
ANNEX A
2$
A. .!is report s!all /e accomplis!ed as follo0s1
).
1. As of 2 period co3ered /y t!e report
2. L!!" H#$ #%$ &o'o of t!e agency
3. F(%$ 2 fund name4code
4. IN)ENTORY*
a. D#! A+,(-"$ 2 date of ac5uisition
/. P#"!-+(&#"s 2 a /rief description of t!e Property- Plant and '5uipment
6PP'7 C. .!e assets s!all remain in t!e /oo8s until t!ese are sold4disposed.
c. P"o."!/ No. 2 assigned property num/er /y t!e Property Custodian D.
d. Q(#%!-!/ 2 5uantity of PP'
e. U%-! Cos! 2 unit cost of t!e PP'
f. To!#& Cos! 2 5uantity multiplied /y t!e unit cost of t!e PP'
g. A++(0(&#!$ D."+-#!-o% 2 total amount of depreciation c!arged to t!e '.
PP'
!. N! Boo1 )#&( 2 t!e difference /et0een t!e total cost of t!e PP' less
t!e accumulated depreciation
i. R0#"1s 2 /rief information on t!e condition of t!e property +.
9. C"!-f-$ Co""+! 2//D#! 2 name and signature of t!e Property :fficer4
Custodian 0!o prepared t!e report4date of t!e report
8. )"-f-$ 2//D#! 2 name and signature of t!e ;ead of t!e Accounting <nit
0!o 3erified t!e propriety of t!e <nit Cost- .otal Cost- Accumulated
depreciation and &et )oo8 "alue4date 0!en 3erified
. INSPECTION*
a. A.."#-s$ )#&( 2 appraised 3alue of t!e PP'
/. D-s.os-!-o% 2 different modes of disposing t!e PP' suc! as sale- donation
destruction- etc.
c. R0#"1s 2 additional information on t!e condition of t!e property
inspected
d. I%s.+!$ 2//D#! 2 name and signature of t!e inspector and t!e date of
inspection
e. 3-!%ss$ 2//D#! 2 name and signature of t!e 0itness4date 0!en
0itnessed
page 242
2nd copy 2 Property :fficer=s4Custodian=s file
.!e >I&"'&.:R?> portion s!all /e accomplis!ed /y t!e Property
<nit. @!ile t!e >I&AP'C.I:&> portion s!all /e accomplis!ed /y a
.ec!nical Inspector 0!ere tec!nical 8no0ledge is needed for t!e
determination of t!e true condition or appraised 3alue of t!e property
and to /e 0itnessed /y mem/er of a committee created for t!at
purpose.
@!en t!e property is sold- t!is report- toget!er 0it! t!e sales report
and ot!er supporting documents s!all ser3e as /asis in preparing t!e
B'" to drop t!e assets from t!e /oo8s.
All Property Ac8no0ledgement Receipt 6PAR7 co3ering t!e PP'
s!all /e cancelled so t!at t!e end user s!all /e relie3ed from !is4!er
accounta/ility o3er t!e property.
IN)ENTORY AND INSPECTION REPORT OF UNSER)ICEABLE PROPERTY
I&A.R<C.I:&A
:riginal 2 Accounting <nit
.!e report s!all /e prepared in t0o 627 copies /y t!e Property
:fficer4Custodian and ser3es as a /asis for preparing a B'" to ad9ust
t!e accounts affected. .!is s!all /e distri/uted as follo0s1
4IIRUP5
28
ANNEX B
3ASTE MATERIALS REPORT
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Agency
Place of Atorage1 Date1
I.'DA +:R DIAP:AAE
I.'DA
+:R
DIAP:AAE
F.?. <&I. D'ACRIP.I:&
R'C:RD :+ AAE'A
:.R. &o. Amount
1
2
3
4

6
$
8
#
1*
.:.AE
Certified Correct1 Disposal Appro3ed1
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Property :fficer
C'R.I+ICA.' :+ I&AP'C.I:&
I !ere/y certify t!at t!e property enumerated a/o3e 0as disposed of as follo0s1

Item
Destroye
d
Item Aold at pri3ate sale
Item Aold at pu/lic auction
Item .ransferred 0it!out cost to CCCCCCCCC

Property Inspector1 6&ame and Aignature7 @itness to disposition1


2#
ANNEX C
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type____________________Prop.No.__________
Unit Serial No._________________________Engine Serial No. __________
Acquisition Cost_____________________________Date__________________
Date Reported as Unserviceable ____________________________________
LEGEND:
S = Serviceable X = Unserviceable
M = Missing NA = Not Applicable
ENGINE: SUSPENSIONS:
Operating Condition

FrontSpringAssembly

Injection Pump Assembly

RearSpringAssembly
Injection/Nozzle Assy.

Fuel Pump Assembly

WHEELS:
Cylinder Head Assembly

Water Pump Assembly

Tires Front
Radiator Assembly

Tires Rear
Air Cleaner Assembly

Spare Tire
Carburetor Assembly

Governor Assembly

PROPELLER SHAFT ASSY.:
Turbo Charger

Oil Cooler Assembly

Front
No. of Cylinders

Rear
ELECTRICAL DIFFERENTIAL ASSY.:
Generator/Alterator Front
Assembly

Rear
Starter Assembly

Voltage Regulator Assy.

FINAL DRIVE
Solenoid Assembly

Ignition Coil Assy.

Sprocket Assembly
Magneto

Drive Chain
Distributor Assembly
2/cap , rotor

UNDERCARRIAGES:
Wiper Assembly

Headlight Assembly

Track Link Assembly
Stop & Tail Light Assy. Idler Assembly
Directional Light Assy. Track Adjuster Assy.
(front & rear) Track Roller Assy.
Battery Carrier Roller Assy.
3*
CLUTCH ASSEMBLY TORQUE CONVERTER
CUSHIONS: BODY/CAB/FENDERS
Front Seat

CHASSIS/FRAME
Rear Seat

WINDSHIELD
Operators Seat

FUEL TANK ASSEMBLY
GAUGES: HYDRAULIC SYSTEM:
Hour/Service Meter

Hydraulic Pump Assembly
Speedometer

Hydraulic Motor Assembly
Tachometer

Hydraulic Hoses
Temperature Gauges Control Valve Assembly
(water)

Hydraulic Cylinders
Oil Pressure Gauges

Converter oil Temperature TRANSMISSION ASSEMBLY

Gauges TRANSFERCASE ASSEMBLY

BRAKE SYSTEM: WINDSHIELD

Master Cylinder Assembly

FUEL TANK ASSEMBLY
STEERING SYSTEM:
Power Steering System

Steering Clutch Assembly with Disc Plate & Brake Lining

ACCESSORIES:
Dozer/Blade Assembly

Riper Assembly

Cutting Edges

End Bits

Dragline Bucket

Clamshell Bucket
Backhoe Bucket

Ditching Bucket
Fairlead assembly Tagline Assembly

(for crane)

(for crane)

Compressor

Cables

Boom Assembly

Boom Pulley

Lifting Block

Others

REMARKS:
Inspected by:


(NAME)


(DESIGNATION)
31
ANNEX C1
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type Mitsubishi L-200 Prop.No. Plate No. UFC - 963
Unit Serial No. K14TJUNSL-010751 Engine Serial No. 4D56-D5940
Acquisition Cost P 495,000.00 Date December 16, 1995
Date Reported as Unserviceable _____________________________________
LEGEND:
S = Serviceable X = Unserviceable
M = Missing NA = Not Applicable
ENGINE: SUSPENSIONS:
Operating Condition
S
FrontSpringAssembly
S
Injection Pump
Assembly
S
RearSpringAssembly S
Injection/Nozzle Assy.
S
Fuel Pump Assembly
S
WHEELS:
Cylinder Head Assembly
S
Water Pump Assembly
S
Tires Front S
Radiator Assembly
S
Tires Rear S
Air Cleaner Assembly
S
Spare Tire S
Carburetor Assembly
NA
Governor Assembly
NA
PROPELLER SHAFT ASSY.:
Turbo Charger
NA
Oil Cooler Assembly
NA
Front NA
No. of Cylinders
4
Rear S
ELECTRICAL DIFFERENTIAL ASSY.:
Generator/Alterator Front NA
Assembly
S
Rear S
Starter Assembly
S
Voltage Regulator Assy.
S
FINAL DRIVE
Solenoid Assembly
NA
Ignition Coil Assy.
NA
Sprocket Assembly NA
Magneto
NA
Drive Chain NA
Distributor Assembly
2/cap , rotor
NA
UNDERCARRIAGES:
Wiper Assembly
S
32
Headlight Assembly
S
Track Link Assembly NA
Stop & Tail Light Assy. S Idler Assembly NA
Directional Light Assy. Track Adjuster Assy. NA
(front & rear) S Track Roller Assy. NA
Battery S Carrier Roller Assy. NA
CLUTCH ASSEMBLY S TORQUE CONVERTER NA
CUSHIONS: BODY/CAB/FENDERS S
Front Seat
S

Rear Seat
S
WINDSHIELD (Front) S
Operators Seat
S
FUEL TANK ASSEMBLY NA
GAUGES: HYDRAULIC SYSTEM:
Hour/Service Meter
NA
Hydraulic Pump Assembly NA
Speedometer
S
Hydraulic Motor Assembly NA
Tachometer
NA
Hydraulic Hoses NA
Temperature Gauges Control Valve Assembly NA
(water)
S
Hydraulic Cylinders NA
Oil Pressure Gauges
S
Converter oil Temperature TRANSMISSION ASSEMBLY S

Gauges
NA
TRANSFERCASE ASSEMBLY
NA

BRAKE SYSTEM: WINDSHIELD (rear)
S
Master Cylinder
Assembly
S
FUEL TANK ASSEMBLY S
STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
S
ACCESSORIES:
Dozer/Blade Assembly
NA
Riper Assembly
NA
Cutting Edges
NA
End Bits
NA
Dragline Bucket
NA
Clamshell Bucket NA
Backhoe Bucket
NA
Ditching Bucket NA
Fairlead assembly Tagline Assembly

(for crane)
NA
(for crane)
NA
Compressor
NA
Cables
NA
Boom Assembly
NA
Boom Pulley
NA
Lifting Block
NA
Others
NA
33
REMARKS:
Fuel Injection Assy - for minor overhaul
Left Rear Side & Rear Bumer - !ith dents and scratches
Body of unit needs aint !ash-over

"dometer Readin# $ %&'((( )ms
Inspected by:
*+AN ,-LA .R+/
(NAME)
Sr0 1AS
(DESIGNATION)
34
ANNEX C2
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type L-200 1995 Model Prop.No. Plate No. UDR - 680
Unit Serial No. K14TYPSDE-839716 Engine Serial No.4D56-D6785
Acquisition Cost P 495,000.00 Date October 19, 1995
Date Reported as Unserviceable __Comparable Property_____
LEGEND:
S = Serviceable X = Unserviceable
M = Missing NA = Not Applicable
ENGINE: SUSPENSIONS:
Operating Condition
S
FrontSpringAssembly
S
Injection Pump
Assembly
S
RearSpringAssembly S
Injection/Nozzle Assy.
S
Fuel Pump Assembly
S
WHEELS:
Cylinder Head Assembly
S
Water Pump Assembly
S
Tires Front S
Radiator Assembly
S
Tires Rear S
Air Cleaner Assembly
S
Spare Tire S
Carburetor Assembly
NA
Governor Assembly
NA
PROPELLER SHAFT ASSY.:
Turbo Charger
NA
Oil Cooler Assembly
NA
Front NA
No. of Cylinders
4
Rear S
ELECTRICAL DIFFERENTIAL ASSY.:
Generator/Alterator Front NA
Assembly
S
Rear S
Starter Assembly
S
Voltage Regulator Assy.
S
FINAL DRIVE
Solenoid Assembly
NA
Ignition Coil Assy.
NA
Sprocket Assembly NA
Magneto
NA
Drive Chain NA
Distributor Assembly
2/cap , rotor
NA
UNDERCARRIAGES:
Wiper Assembly
S
3
Headlight Assembly
S
Track Link Assembly NA
Stop & Tail Light Assy. S Idler Assembly NA
Directional Light Assy. Track Adjuster Assy. NA
(front & rear) S Track Roller Assy. NA
Battery S Carrier Roller Assy. NA
CLUTCH ASSEMBLY S TORQUE CONVERTER NA
CUSHIONS: BODY/CAB/FENDERS S
Front Seat
S

Rear Seat
S
WINDSHIELD (Front) S
Operators Seat
S
FUEL TANK ASSEMBLY NA
GAUGES: HYDRAULIC SYSTEM:
Hour/Service Meter
NA
Hydraulic Pump Assembly NA
Speedometer
S
Hydraulic Motor Assembly NA
Tachometer
NA
Hydraulic Hoses NA
Temperature Gauges Control Valve Assembly NA
(water)
S
Hydraulic Cylinders NA
Oil Pressure Gauges
S
Converter oil Temperature
TRANSMISSION ASSEMBLY
S

Gauges
NA
TRANSFERCASE ASSEMBLY
S

BRAKE SYSTEM: WINDSHIELD (rear)
S
Master Cylinder
Assembly
S
FUEL TANK ASSEMBLY S
STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
S
ACCESSORIES:
Dozer/Blade Assembly
NA
Riper Assembly
NA
Cutting Edges
NA
End Bits
NA
Dragline Bucket
NA
Clamshell Bucket NA
Backhoe Bucket
NA
Ditching Bucket NA
Fairlead assembly Tagline Assembly

(for crane)
NA
(for crane)
NA
Compressor
NA
Cables
NA
Boom Assembly
NA
Boom Pulley
NA
Lifting Block
NA
Others
NA
36
REMARKS:
-n#ine needs to-overhaulin#
Si#nal li#hts and 2eadli#ht Assy0 - not ori#inal31ai!an
Needs underchassis reair - 4ra)e system & Susension Assy0

"dometer Readin# $ &5'6(( )ms0
Inspected by:
*+AN ,-LA .R+/
(NAME)
Sr0 1AS
(DESIGNATION)
3$
ANNEX D
CHECKLIST OF PROPERTIES FOR DISPOSAL
AIRCON/REFRIGERATOR/FREEZER
Equipment Description/Type____________________________________
Unit Serial No.________________________Prop.No._________________
Acquisition Cost_______________________Date____________________
Date Reported as Unserviceable ________________________________
LEGEND:
S = Serviceable X = Unserviceable
M = Missing NA = Not Applicable
ELECTRICAL: MECHANICAL:
Motor Compressor

Compressor

Running Capacitor

Thermostat

Starting Capacitor

Condenser

Selector Switch

Evaporator

Magnetic Contactor

Filter Drier

Relay

Capillary Tube

Overload Protector

H/L Pressure Switch

Condensed Fan Motor

Expansion Valve

Fan Motor

Strainer

Time Relay Switch

Surge Tank

Wiring

Heat Exchanger

Solenoid

Sight Glass

OTHERS:
Body

Casing

Front Cover

Air Filter Element

Inspected by:
______________________________
(NAME)
______________________________
(DESIGNATION)
38
ANNEX E
Republic of the Philippines
78/ .ororation
,IS9"SAL ."::I11--
:anila
APPRAISAL REPORT
,ate;<<<<<<<<<<<<<
Su4ject; Araisal of various roerties intended for disosal as listed
under attached <<<<<<< a#e3s Inventory and Insection Reort
of +nservicea4le 9roerty =I & I Reort> dated
<<<<<<<<<<<<<<0
Findin#s3"4servations;
?0 1he su4ject roerties !ere all )et inside a #uarded 4ode#a
and systematically arran#ed in accordance !ith the listin#s
indicated under I & I Reort0
@0
A0
Note; Bith individual .hec)list and ictures hereto attached0
Caluation 9rocedures3.onsideration;
?0 1he condition of the a4ove-su4ject roerties has 4een
assessed thru ocular insection0
@0 1he vehicle !as araised on the 4asis of the availa4le .urrent
:ar)et Calue =.:C> ta)en from advertised rice of used vehicle
of the same ma)e and model from DAB.E ma#aFine' :ay @'
@((( issue0
A0
40
60 ,etermination of the araised value is 4ased on the ."A
Revised Guidelines on Araisal of 9roerty other than Real
-state' AntiHue 9roerty and Bor)s of Art0
3#
%0 1he total araised value of the a4ove su4ject roerties arrived
at is 9<<<<<<<<<<<<<' 4ro)en do!n as follo!s;
Item ,escrition Araised Calue
a0 <<<<<<<<<<<<<<
40 <<<<<<<<<<<<<<
c0 <<<<<<<<<<<<<<
1otal Araised Calue 9 <<<<<<<<<<<<
9reared 4y;
*+AN ,-LA .R+/
:em4er
,isosal .ommittee
4*
ANNEX F
ADJUSTMENT OF APPRAISED VALUE WHEN AUCTION BIDS
ARE LOW
In Sec. VII of COA Memorandum No. 88-569, the
hereunder activities were performed by the Auditor. However,
with the lifting of pre-audit, these functions became the
responsibility of the Agency.
If after exposure of the property to public auction, as
required under Sec. 79 of P.D. 1445, the highest bid falls below
the government foor price the agency shall:
1.Determine whether the diference is excessive. The
amount of deviation of the highest bid from
the foor /reference value is considered excessive
when it is greater than 10% of the
foor/reference value plus the cost of calling
another public auction.
2.If the diference is found not excessive, the agency
shall continue with the sale of the unserviceable
properties. If the diference is found to be
excessive, the agency shall call for another public
auction with the foor/reference value reduced by
10%.
If the second auction still fails, i.e., the highest bid is still
excessively lower than the reduced foor/reference value, then
the sale may be negotiated with the highest oferor.
41