DISPOSAL MANAGEMENT

What is Disposal process?

Disposal process refers to the successive stages in the disposal cycle. These stages include:-

The asset may no longer be required by the entity due to changes in operationalrequirements.
Surplus to needs: the asset maybe in excess of needs of the entity
It may be part of asset replacement programme: the asset has reached the point at which it is not keep economical but is most economical to dispose of it (from age, usage, mileage, etc.)thus minimizing maintenance costs.
The asset is unserviceable or beyond reasonable repair
The asset may be technologically obsolete and operationally inefficient, or incompatible with other assets.
Continued possession or use of such an asset contravenes occupational health and safety standards, or the asset contains hazardous materials.
It waste and the costs of capital tied up, storage, and handling cannot be justified to keep an asset

Assets for disposal should normally be sold at a fair market value in a manner that maximises
revenue and minimises expenses
Assets with little or no market value may be transferred gratuitously or maybe scrapped in an
environmentally acceptable manner
To the extent feasible, the general public should have the opportunity to purchase the assets
being disposed
Non discrimination
Promote transparency, accountability and fairness
economy and efficiency in disposal
Keep confidentiality until successful bidder is notified of award
Follow the existing code of ethical conduct in business
Allow for competition in asset disposal
Award the highest offering (priced) bidder
Public accessibility