Appraising the Appraisers: Where Competence Meets Compliance

Quality assessments and their intended applications are influenced by the roles and responsibilities of appraisers, particularly on how they implement the appraisal and valuation process to provide a well-supported opinion of value, considering all relevant factors. This study aims to evaluate the competence level in the terminologies used in preparation of appraisal and valuation reports as well as adherence of local government employees to the appraisal system used for the disposal of equipment and assets as mandated by law that could lead to an improved appraisal system. Nonetheless, improvements on knowledge acquisition and adherence to appraisal process must be addressed to ensure that the objectives and guidelines concerning the disposal of government assets are fulfilled in an acceptable manner. The findings indicate that “estimated useful life” is the most frequently used term, while “impairment loss” is the least commonly referenced in the preparation of appraisal and valuation reports. The employees followed the standards outlined in the procedures manual when conducting inspections. However, proper sequence when carrying out appraisals were not consistently observe but with acceptable reasons. This affected their judgement, leading to improper justifications for declaring properties unserviceable and disposing of them. Without knowledge and competence, the improper justifications can lead to failure to prepare an updated list of assets and inaccurate or poorly documented reporting requirements. To address these issues, the following actions are recommended to include reviewing the current guidelines and laws to prevent future audit findings related to improper disposal justifications, offer training to employees on relevant topics, promote accountability and responsibility, establish an appraisal committee, implement regular inventory, emphasize honest and accurate computations.