1. During the stocktaking for the 2012-2013 financial year, certain shortcomings were found with regard to the disposal of assets.

2. In terms of section 38(1)(a) of the Public Finance Management Act (PFMA), 1999 (Act 1 of 1999), the Accounting Officer is responsible for financial and risk management, as well as the effective and efficient use of all assets. Furthermore, Part 10. 1.1 of the Western Cape Provincial Treasury Instruction, issued in terms of section 18(2)(a)of the PMFA on 28 March 2012, requires the Accounting Officer or accounting authority to ensure that the supply chain management system of the institution provides for an effective and efficient disposal management system which must minimise the holding of surplus and under-utilized assets.

3. In view of the above, the following procedures must be strictly adhered to in the process of disposing of moveable assets (office furniture and equipment, including computer equipment):
3.1 A Log 1 requisition form must be completed and signed by the responsibility manager of the cost centre. The completed form must be submitted to Mr A Betz, Room 620, 6th Floor, Grand Central Towers Building, Cape Town, 8001. The following information on the item(s)to be disposed of must appear on the Log 1-form:

  • A complete description
  • The condition
  • The precise location (building, floor and room number)
  • The barcode number
  • The serial number, where applicable
3.2 If there is not enough space for listing all the items on the Log 1-form, a separate list of items earmarked for disposal may be attached. However, the information listed in paragraph 3.1 above must be provided for each item. Responsibility managers must ensure that, in the case of replacement IT equipment, the attached Refresh/Disposal Annexure, on which the details of both the old and the new equipment are recorded, must be completed and attached to the Log 1-form.
3.3 A completed BAS allocation form (PGWC 002) must accompany the Log 1-form. Expenditure which might be incurred in the disposal process will be allocated to the relevant responsibility manager.
3.4 Responsibility managers will then be informed of the decision of the WCED Disposal Committee at Head Office and provided with the relevant documentation as proof that the item(s) have been written off. The VA 27-form, signed by the delegated official and members of the Disposal Committee, must be completed by the relevant officials after the assets have been dealt with in the manner approved by the WCED Disposal Committee. All this documentation must be filed appropriately for audit purposes.
3.5 Asset controllers must ensure that the barcodes on these assets are removed. These barcodes must be sent to Head Office for record purposes. Furthermore, the RSA mark must also be cancelled with an X. The disposal approval number and "DISPOSED OF" must be written with a permanent-marker pen on non IT-related assets. Stickers reflecting the same information must be placed on the IT equipment.
3.6 The sale of all IT equipment will be arranged by Head Office. Other assets approved for dumping must be dumped at a registered dumping site and certification in this regard must be provided to Head Office. At least 2 officials must be present at the dumping of the assets.

4. It is sometimes found that items earmarked for disposal and those items approved for disposal are still being used. It must be emphasised that all furniture and equipment earmarked for disposal and those items approved for disposal must be kept in a safe and secure place until the disposal process is finalised. Furthermore, it has also been found that IT equipment is being cannibalised. This is contrary to the prescripts for the disposal of IT equipment.

5. Enquiries regarding the content of this minute may be directed to the following persons:

  Mr A Betz, tel. 021 467 2804
Mr D Scholtz, tel. 021 467 2799

6. Responsibility Managers are kindly requested to inform all personnel of the content of this minute.


SIGNED: L J ELY
DEPUTY DIRECTOR-GENERAL: FINANCE
DATE: 2013:07:29

Public Finance Management Act  (size: 487 KB)
Refresh/Disposal Form  (size: 16 KB)