16.06 Disposal of recognized assets and attractive items

Useful life

PPE items are categorized in the ERP according to a major category and minor category.
These categories are used to determine the useful life of items for the purpose of retirement or disposal, as described in template PT.16.0 2 Definition of Useful Life of Recognized Assets and Attractive Items

Items in working condition and still within their useful life may not be authorized for disposal.

Recognized assets and attractive items can be authorized for disposal when they:
  • are obsolete
  • are damaged beyond repair
  • no longer meet technical specifications based on justification
  • meet favourable exchange (trade-in) conditions for the organization (An example might be a promotional offer (i.e. special price for a new model for trading in an older version)
  • are replaced by warranty
  • are lost
  • are stolen
  • have reached the end of their useful life and are no longer usable.

Authority to dispose

The AFP is responsible for ensuring that appropriate procedures for disposal are followed, and that final disposal is registered in the ERP. 

The authority to proceed with disposal of PPE items will be given by HQ Property Disposal Committee (HQPDC) after submitting its recommendation for approval by the Director PFA.

All PPE items authorized for disposal must remain in the ERP register until the disposal has been executed as approved.

All organizational data (including stored data in the case of electronic equipment) and identification of UNAIDS ownership (labels and tags) must be removed before handover.

Method of disposal

The disposal method for PPE items will be authorized by the HQPDC.

The method of disposal should be that which is the most advantageous to UNAIDS, as described below.

Timeliness of PDC-approved disposal actions

Disposal action must proceed as soon as approval is received from the PDC. Results of disposal action (donation, sale, etc) must be fully documented and shared with Geneva Finance (finance@unaids.org) so that timely action is taken to update ERP Asset Register. (i.e. removal of the assets from the asset register in ERP).

The table below table indicates the standard timeframe (cut-off dates) within which the Requesting Unit should submit the results of disposal actions to the Geneva Finance for ERP update action.

Management responsibility: In line with the Executive Director’s Decision 2017/02, Managers responsible for assets in Country Offices, Regional Support Teams, Liaison Offices and Headquarters are required to certify that the list of assets contained in the ERP Asset Register is accurate and reflects the true status of assets under their custody.

Sale or exchange (trade-in)

External sale to a 3rd party at fair value can be cash on sale (at or before delivery), and it can be arranged by competitive bidding. 

Authorization must be sought from the HQPDC for sale of equipment, including the recommended method for sale (i.e. fixed fair pricing, trade-in, direct or sealed bidding before starting any sale procedure).

Should the HQPDC authorize sale of assets, it may consider it necessary to invite sealed bids from the staff and/or the public. In such cases, certain procedures should be followed.
  • Advertisements using the appropriate form should be placed on the office’s public website and, where cost effective, in at least two newspapers (if several local newspapers are available). These advertisements will offer the items for sale and request sealed bids to be submitted by a prescribed date. 
  • Bidders should be given the opportunity to view/examine the items for sale, and assets should be assembled at a depot for viewing/examination at fixed times.
  • The bids will be opened in the presence of at least two designated staff members and the bidders (if they wish). 
  • The presence of bidders is not a prerequisite for the validity of the award. The names of the bidders and the bid amounts will be listed, and the award will be made to the highest bidder. 
  • If two or more bids are of equal value—and if the winning bid cannot be drawn by lot for a lack of written agreement or revision by the bidders—the bids may be rejected and the sale re-advertised. All equal bidders should be given the opportunity for revision before the process is rejected. Should a member of the public and a staff member make an identical bid, preference is given to the staff member’s bid.  
The recommendation for selection must be submitted to HQPDC for endorsement. The HQPDC may accept a bid other than the highest, or it may reject any or all bids if it considers this to be in the interests of UNAIDS. 

In order to get clearance from the HQPDC to conclude the sale process, the responsible officer must attach a note for the record with the description of the process followed, the offers received and the justification for selection.

The AFP is responsible for ensuring the sale proceeds are deposited to valid WHO or UNDP bank accounts, and that they are properly identified so that the corresponding budget receives credit.

The AFP must coordinate with FRC to finalize the arrangements of removing the items from the Asset Register.

The gains/losses on disposal of assets will be handled by FRC.


The write-offs will occur in the following circumstances. 
  • Assets are obsolete and/or damaged. 
  • Assets are lost or stolen. The loss or theft of any asset must be immediately reported by the user to the office that issued the item. If the loss or theft occurred outside an office, it also must be reported to the local police. 
In all cases of damage, loss and theft, approval must be sought from the HQPDC within one month of the incident taking place.

Approval for write-offs are subject to the presentation of a police report (if applicable), and PT.16.06 UNAIDS Security Incident Report. HQPDC’s approval will establish staff liability on the loss of UNAIDS property.


Assets can only be donated in their existing condition. The AFP ensures that the recipient of donated assets sends an acknowledgement of receipt by using the template. 

The following process must be followed for donations: 
  1. obtain a letter of request from the receiving organizations 
  2. obtain approval from the Director PFA based on recommendations from HQPDC 
  3. sanitize laptops, computers or any pieces of IT-related equipment to be donated 
  4. deliver assets or have them collected by the receiving organizations 
  5. retire the donated assets.  
Donations are normally to an NGO or a civil society organization (CSO) with strong links to the HIV response.

Recycling or destruction

When none of the other methods of disposal are practical, recycling or destruction of the asset will take place. This will be conducted as per prevailing laws for such activities, and the most ecologically friendly procedures that have little or no financial impact will be adopted. 

No representation or guarantee of any kind may be given in connection with disposal. Any document of sale—or document of transfer of title for donations—must indicate that the property must be accepted in its actual condition on the place where it is located (“as is where is”). 

An acknowledgement of receipt must be obtained and filed. 

The HQPDC must consider the risks of liability for UNAIDS when approving requests for sale or donation, using its discretion to assess whether the benefits of sale or donation outweigh any liability risks.