Sale or disposal of property (Financial Regulations and Rules)
- Rule 105.23
Property, plant and equipment, inventories and intangible assets of the United Nations that are declared surplus, unserviceable or obsolete following a recommendation by a review body shall be disposed of, transferred or sold after competitive bidding, unless the review body:
(a) Estimates that the sales value is less than an amount to be specified by the Secretary-General;
(b) Considers that the exchange of property in partial or full payment for replacement equipment or supplies is in the best interest of the Organization;
(c) Deems it appropriate to transfer surplus property from one project or operation for use in another and
(d) Determines that the destruction of the surplus or unserviceable material will be more economical or is required by law or by the nature of the property;
(e) Determines that the interests of the United Nations will be served through the disposal of the property by gift or by sale at a nominal price to an intergovernmental organization, a Government or governmental agency or some other non-profit organization.
- Rule 105.24
Except as provided for in rule 105.23, sales of property, plant and equipment, inventories and intangible assets shall be on commercial terms.
The following authorities are delegated to heads of entities under the standard delegation of authority reflected in Annex III of ST/SGB/2019/2:
Authority for disposal of surplus and unserviceable property
Disposal of surplus, unserviceable, obsolete, and impaired property or other discrepancy in accordance with the disposal methods defined in the Financial Rule 105.23 and 105.24. The determination for authorizing disposal action shall be made on the basis of the depreciated value of individual property items.
- a. Depreciated value of individual property items - $ 3,000.00 or less.
- The head of entity or the person(s) to whom authority has been sub-delegated may take final decision on the disposal of surplus, unserviceable, obsolete and impaired property or other discrepancy when the depreciated value of the individual property item to be written of is US$3,000.00 or less.
- b. Depreciated value of individual property items between US$3,000.01 and US$25,000.00.
- The person(s) to whom authority has been sub-delegated must submit cases to the Local Property Survey Board (LPSB) for disposal of any property item that has a depreciated value between US$3,000.01 and US$25,000.00;
To make final decisions on the disposal of these items, upon the written advice of the LPSB, when the depreciated value of the individual property item is between US$3,000 and US$25,000.
- c. Depreciated value of individual property item - US$25,000.01 or more.
- The person(s) to whom authority has been sub-delegated must submit cases to the Headquarters Property Survey Board (HPSB) for disposal of any property item that has a depreciated value exceeding US$25,000.00.
Authority to sub-delegate
Heads of entity are authorized to sub-delegate this property management authority to either:
- Chief/Director of Mission Support, Director of Administration or equivalent;
- Property management officers who have been technically cleared.
- 2006.22 Property Management Manual
- 2018.08 Guide for Senior Leadership on Field Entity Closure
- 2018.26 Development of Mission/Field Entity Support Division Closure Plan
These rules were amended effective 1 January 2019 with the issuance of ST/SGB/2013/4/Amend.1 amending the Financial Rules to facilitate the new delegation of authority framework and the new management architecture at Headquarters.
- The depreciated value is established at the point in time when the write-off case is to be submitted for the review process. For the “capitalized property”, the depreciated value is the net book value as established at the time of write-off in accordance with the UN IPSAS Policy framework.
- 2018.08 and associated guidelines replace the earlier DPKO/DFS Liquidation Manual (2012.18)