||Many enquiries are received in connection with the removal of redundant, unserviceable and obsolete furniture and equipment.
||Your attention is drawn to National Treasury Regulation 10.1.2, read in conjunction with Section 38(1)(d) of the Public Finance Management Act, 1999 (Act 1/1999), which reads as follows: "Accounting Officers must ensure that processes and procedures are in place for the effective, efficient, economical and transparent use of the institution's assets".
||Responsibility managers at Head Office and district offices are requested to adhere to the following procedure in this regard:
||Head Office Responsibility Managers
||A Log 1 (Requisition) form must be completed and signed by the responsibility manager and sent to Mr P Venter on the 6th floor of the Grand Central Towers building. The following information must appear on the Log 1-form:
- A complete description of the item(s)
- The condition of the item(s)
- The precise location of the item(s) (floor, building and room number)
- The barcode number of the item
- The serial number of the item, where applicable
||Where there is too little space on the Log 1-form, a separate list of the item(s) to be disposed of may be attached. However, the information indicated in par. 3.1.1 must be supplied for each item. Responsibility managers must ensure that, in cases concerning the replacement of IT equipment, the details of the new and the old item(s) are reflected on the ICT Installation Checklist (copy attached). It is important that this form be completed carefully and in full. These checklists must be attached to the Log 1 form.
||A completed BAS allocation form (PGWC 002) must accompany the Log 1-form. This form will be used to allocate any expense which might be incurred in the disposal process. Each responsibility manager must cover such expense from his or her budget.
||Responsibility managers will be supplied with documentation as proof that item(s) have been written off and such documentation must be kept, together with a copy of the inventory for the relevant directorate, in a safe place for audit purposes.
||Responsibility Managers for District Offices
||Before the procedures as set out in paragraph 3.1.1 are followed, the list of the redundant, unserviceable and obsolete furniture and equipment must be submitted to a disposal committee, consisting of at least three persons, one of whom must act as chairperson. The chairperson must occupy the rank of, at least, Senior Officer. The head of office must notify the members of the committee in writing of their appointment. The function of the committee is to physically examine the item(s) to be disposed of so as to ascertain whether there is justification for writing it/them off. The committee concerned makes a recommendation to the delegated official (Deputy Director: Procurement Management). If necessary, technical reports must be obtained for equipment.
||In the case of redundant, unserviceable and obsolete IT equipment, the procedure as set out in par. 3.1.2 must be followed.
||A VA 27 form, on which the recommendation of the committee is noted, must be completed and attach to the Log 1 form, as explained in par. 3.1.1. It must then be sent, together with the minutes of the meeting of the committee and a completed BAS allocation form (PGWC 002), to the Head Office, for the attention of Mr P Venter. The request will then be submitted to the delegated official for a decision. The BAS allocation form is required for the same reason as that given in paragraph 3.1.3.
||After the request has been considered by the delegated official, the relevant office will be informed of the outcome of the application. Where items are written off, the disposal number will also be supplied. The authorisation letter for the disposal must be kept, together with the inventory of the relevant office, in a safe place for audit purposes.
||After the completion of the afore-mentioned process, both the inventories and the asset register will be updated by Head Office and revised inventories will be submitted to responsibility managers for checking and signing off.
||It must be emphasised that all furniture and equipment are in the custody and care of the relevant responsibility manager until the disposal process is finalised. Such furniture and equipment must, therefore, be kept in a safe place until it has been disposed of. No furniture or equipment may be moved or removed before the writing-off and disposal processes have been completed. (Refer to the movement forms prescribed in Circular 28/2005 of 23 May 2005.)
||Please bring the contents of this circular to the attention of all concerned.
SIGNED: L.J. ELY