COMMISSION ON AUDIT MEMORANDUM NO.

98-569-A August 5, 1998

TO

SUBJECT:

COA Assistant Commissioners, COA Directors, Heads of Auditing Units,

Officers-in-Charge, COA Technical Audit Specialist and All Others concerned.
Revised Guidelines on Appraisal of Property other than Real Estate, Antique
Property and Works of Art.

In order to improve and facilitate the process of disposal of unserviceable as well as

serviceable but no longer needed property, and in some special instances where serviceable
property is disposed of upon application of the user, the herein Revised Guidelines on
Appraisal of Property other than Real Estate, Antique Property and Works of Art are adopted.
This revision is necessitated by the need to simplify the principles and procedures of
property appraisal to achieve more realistic and more reflective appraisal values of properties
under disposition vis-a-vis the current market. The revision, also envisions to expedite the
process of property disposal, to benefit from the time value of facilitated property disposal by
avoiding costly decline in value due to the exposure of the property to unreasonable risks,
deterioration and other opportunity losses. Finally, the revision puts premium on the
determination of the actual condition of the property under disposition which further ensures
that the government gets a fair return of value on the disposed property.
The specific provisions of COA Memorandum 88-569 dated August 12, 1988 under
Sec. VI which are inconsistent with provisions of the herein Guidelines are accordingly revised
and/or amended. Also, the Table of Estimated Economic Lives under Sec. IX (1) is supplanted
by the Table of Estimated Useful Lives with a slightly expanded list to enlarge the scope and
application of the table in property disposition. Similarly, the Table of Peso/Dollar Exchange
Rates under Sec. IX (2) is updated to the year 1997 to make the reference table more up-todate. Finally, a Component Rating Table is incorporated to enhance the rating of the over-all
condition of properties (such as equipment and vehicles) which are composed of different parts
or components that may vary in state or conditions of functioning or disrepair and which may
have different relative values in relation to the total value of the subject property such as an
equipment or vehicle.
All other provisions of COA Memorandum No. 88-569, supra, and the pertinent
provisions of other COA issuances notably, COA Circular 95-006 dated May 18, 1995 and COA
Memorandum No. 95-008 dated July 3, 1995 shall remain in force.
(SGD.) CELSO D. GAGAN, Chairman