SOP Library
SOP NO:
15004
(List of Exhibits/Attachments)
Mission
:
Other SOPs
Area:
Human Resource (HR)
Title:
NFA Kadiwa Procurement System
Date Approved/Issued:
01/08/1982
Date Effective:
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
1.
Request for Commodities
1.1
NFA requests from NFA
a. All provincial offices shall maintain and submit to the Directorate for Economic Research and Statistics (ECO) and the Directorate for Non-Grains Operations (DNG) a Kadiwa market plan, indicating the monthly requirement of the province for each commodity item. Said plan shall be the basis for DNG's procurement program and KPF remittances. For any deviation in the submitted targets, the concerned provincial office shall promptly advise thru wires or other fast means of communication ECO cc. DNG. DNG shall in turn revise its procurement schedule accordingly.
b. When DNG refers the request of one province to another province, the latter shall in no way effect any substitution in the quality and volume specification of the commodity request without prior approval of the requesting province thru DNG.
1.2
FTI requests from NFA
All commodity requests by FTI shall forwarded to DNG one month in advance thru the Commodity Order Form (COF). The COF shal specify the commodity item, specification, volume, acceptance price/range of prices and terms of said price, i.e., ex-farm or ex-FTI, for purposes of programming by DNG. The COF shall be submitted monthly or as often as the need arises. DNG shall be responsible for advising the most appropriate NFA provincial office to negotiate and procure for the FTI requirements. All negotiations made by the provincial office falling outside the original specifications require confirmation by DNG
1.3
NFA request from FTI
a. Based on the monthly commodity requirements for manufactured goods submitted by NFA provincial offices, DNG shall evaluate whether the Area Depots and/or purchases from local suppliers can serve said requests. If not, DNG shall forward its request to FTI. NFA requests from FTI shall be made thru the Commodity Order Form.
2.
Shipment of Commodities
2.1
NFA to NFA
a. A Warehouse Commodity Issue (WCI) and a Bill of Lading (BL) shall be prepared for all commodity shipments utilizing both overland and sea transport vehicles.
b. The issuing province shall notify thru wires the receiving province of the shipment of commodities at the time the WCIs are issued.
c. In case of shipments utilizing sea transport vehicles, the issuing province and DNG shall coordinate with the concerned local NFA Port Operations Group who shall handle all shipments per NFA Port Operations SOP.
2.2
NFA to FT
I
a. Upon advice by DNG, source province will negotiate with prospective supplier/s regarding quantity, cost/purchase price and terms, i.e. whether it be ex-farm of the supplier to undertake delivery to FTI. All commodity deliveries to FTI whether it be pick-up by FTI or delivered by NFA or supplier shall be accompanied by an NFA BL and a charge Sales Invoice (CSI), and the WCI in case of NFA deliveries. In case of direct delivery by supplier, WCI shall be prepared by the issuing province upon receipt of the acknowledged CSI. The BL and the CSI shall indicate the total quantity, commodity specification, selling price and total sales value. The A counting & Budget Directorate thru DNG/MMO FTI unit shall be furnished with all the BLs and CSIS duly acknowledged by FTI daily for billing purposes.
b. The issuing province shall inform in advance MMO cc. DNG thru wires of all shipments intended for FTI whether delivered by NFA, the supplier or picked-up by FTI. MMO shall in turn inform the Appropriate office of FTI of the arrival of commodities in cases where the commodities are not picked-up by FTI.
c. In case of shipments utilizing sea transport vehicles, the issuing province and DNG shall coordinate with the concerned local NFA Port Operations Group and MMO Port Operations Group. Procedures for loading and unloading the commodities shall follow the existing SOP on Port Operations.
d. Whenever NFA delivers procured commodities to FTI NFA-owned trucks must be given priority to haul the stocks over NFA contracted trucks.
2.3
FTI to NFA
a. All commodities purchased from FTI intended for shipment to requesting province shall be received and properly documented (Technical In) by MMO-FTI unit ex. FTI.
b. MMO cc. DNG shall notify in advance thru wires, the requesting province of the commodities to be shipped their end. The commodities shall be accompanied by MMO-BL, courier's copy of Kadiwa Commodity Issue (KCI) of FTI and/or Delivery Receipt (FTI). The KCI and DR shall be attached to MMO/BL and shall be presented to receiving province upon arrival. Copy of the KCI and OR shall be retained by receiving province. Original copy of duly acknowledged BL shall be given to corrier to support his claim for trucking of freight. Another copy of MMO-BL together with original copy of WCR of MMO-FTI shall be forwarded to DAB-IBC Division to MMO-FTI unit thru DNG for payment ot FTI purposes.
b. DNG shall notify in advance the requesting province thru wires of the commodities to be shipped their end.
d. In case of commodities shipped by sea transport, DNG shall coordinate with MMO-POG who will handle the shipment of requested commodities per Port Operations SOP.
3.
Acceptance of Commodities
3.1 For NFA procurement intended for NFA, the acceptance of shipments of goods shall be at the point of destination. Therefore, commodities delivered shall be graded and accepted at the point of destination by the consignee identified in the BL.
3.2 For NFA procurement for FTI, the acceptance of Commodities shall be at the point specified in the CDF, i.e. ex-farm or ex-FTI. FTI shall then grade and accept commodities at identified points. For ex-FTI acceptance, all truckers/shippers upon arrival at FTI shall coordinate with MMO-FTI unit, who in turn will immediately assign its personnel to go with the truck to the FTI warehouse. Upon completion of weighing and unloading, FTI custodian/warehouse completes preparation of Kadiwa Commodity Receipt (KCR) or Stockyard Receipt (SR), acknowledges BL and gives suppliers copy of KCR and/or SR to trucker together with orginal BL for presentation to issuing province. For deliveries undertaken by supplier, original BL, suppliers copy of KCR/SR shall be given to supplier, to support his claim for payment of commodities delivered to FTI. For NFA deliveries undertaken by sea, original BL, suppliers copy of KCR/SR shall be given to shipper for presentation to originating province. BL copy 2 shall be given to trucker, for his claim for trucking in cases where the trucks used were not NFA-MMO owned. BL copy 3, FTI's CPCR, KCR/SR and other documents shall be forwarded by MMO-FTI unit to DAB-IBC Division daily for billing purposes.
3.3 For NFA procurement from FTI, acceptance of commodities shall be ex-FTI. MMO-FTI unit shall inspect and determine whether the commodities fall within the specifications indicated in the CDF. DNG shall be informed whether the requirements in the CDF are completely served. Upon arrival of shipment, province destination shall inspect the commodities delivered by opening each sealed boxes. If the contents of the boxes are in good quality or condition, reseals the boxes, receives the commodities and signs in the accompanying BL. If a box contains spoiled or bad order commodities, segregates these commodities and immediately inform FTI cc. DNG and DAB. The receiving province is given 15 days within which to notify FTI of the spoiled/bad order goods, otherwise, the receiving province shall shoulder the losses. For spoiled/bad order goods reported to FTI within the 15-day period, FTI will negotiate with the supplier for replacement. Under no instances should the province return goods without prior approval by DNG.
3.4 The receiving party shall have the right to classify and weigh goods delivered and shall play only the quantity and quality of goods actually received per specification. Losses and shrinkages shall therefore be shouldered by the issuing party.
3.5 in the event of shortages in delivery, the discrepancy between the quantity issued and the quantity actually received shall likewise be for the account of the issuing party. However, shortages pinpointed to either trucker or employee shall be collected from them.
3.6 The receiving party shall immediately transmit a wire, which acknowledges the quantity and the quality actually received, to the issuing party. For FTI deliveries to PKC's, the acknowledgement wire shall be addressed to MMO cc. DNG and ABD. For NFA deliveries to FTI, MMO-FTI Unit shall prepare the wire addressed to the issuing province cc. DNG.
3.7 The receiving party shall always accomplish the acknowledgement operation of the BL upon receipt of commodities, indicating the quantity and quality actually received. All receipts by NFA shall be evidenced by a Warehouse Commodity Receipt (WCR). All receipts by FTI shall be evidenced by a Commodity Purchase and Consignment Receipt (CPCR) and Stockyard Receipt (SR) for livestock and a CPCR and Stockyard Receipt (SR) for livestock and a CPCR and Kadiwa Commodity Receipt (KCR) for non-livestock. The SR and KCR shall be stamped with the phrase : "Certified by __________________________ (MMO-FTI Unit)" and signed by the witnessing representative of MMO-FTI to validate the entries for billing purposes.
4.
Procurement of Commodities
4.1 Except for procurement intended for consumption of local KC's all other procurement require prior confirmaiton by DNG. Those intended for PKC's day to-day distribution shall be decided upon by the Provincial Manager subject to the cofirmation of the Regional Director.
4.2 Before any procurement is undertaken, a canvass of the terms and conditions of the local suppliers shall be conducted by the Procurement Team Leader. An Abstract of Canvass shall be submitted to the Provincial Manager to serve as basis, together with DNG's advised price/price range, to select the local suppliers.
4.3 Commodities procured by NFA thru the ex-farm and ex-warehouse procurement schemes not exceeding P1,000.00 shall be paid in cash. Those exceeding P1,000.00 shall be paid thru check payment allowing for a cash payment of P350.00. While procurement exceeding P10,000 shall be paid thru the voucher system. All payments made shall be evidenced by a Commodity Purchase Receipt (CPR).
4.4 For FTI-ex-farm pick up, a BL and CSI shall also be prepared by NFA Procurement Team. Upon completion of loading to FTI trucks/vans, the procurement Team Leader shall accomplish the BL and CSI properly stamped with the words "FTI pick-up" indicating quantity, commodity specification, selling price and total sales value. The FTI representative shall duly acknowledge receipt of goods stated in the BL. Copy 2 of BL and original copy of CSI shall be given to the FTI representative, who upon arrival shall present CSI and BL copy to custodian. FTI custodian receives goods and prepares KCR/SR. NFA BL copy and CSI shall be FTI's basis in preparing the CPCR. Original BL retained by issuing province and duly acknowledged by FTI shall be the basis in preparing the CPR and payment to supplier/farmer. Issuing province shall then wire MMO-FTI cc DNG of the pick-up. MMO-FTI unit upon receipt of wire shall get from FTI, BL copy, CSI, KCR/SR and CPCR for submission to DAB-IBC Division for billing purposes.
4.5 For NFA procurement for NFA, the buying price shall be determined by the procurement team of the concerned field office. DNG shall be informed of the prevailing buying price to serve as basis for KPF remittances. For NFA procurement for FTI, the buying price shall be based on FTI's advised acceptance price/price range. DNG shall advise FTI of the actual buying price based on the field office's advise on the prevailing price, transport cost, shrinkage allowance, normal losses and other related factors.
4.6 Negotiations for the procurement of manufactured goods shall be undertaken by head offices. If the head office happens to be in Metro Manila, negotiations shall stipulate whenever possible that deliveries of commodities shall be made by the supplier's field offices in order to minimize transport expenses.
5.
Billing Procedures
5.1 Billing transactions between NFA and FTI shall be undertaken between head offices.
5.2 NFA shall bill FTI weekly based on the following supporting documents FTI Commodity Purchase and Consignment Receipt, FTI Kadiwa Commodity, Stockyard Receipt, NFA CSI and BL.
5.3 NFA shall settle its accounts with FTI upon receipt of the latter's bill on the basis of the FTI Kadiwa Commodity Issue (KCI) and NFA WCR.
6.
List of NFA Documents/Reports
The following NFA documents and reports shall be prepared by the procuring province to monitor local procurement transactions.
6.1
Warehouse Commodity Issue (WCI)
- a pre-numbered accountable form which serves as an evidence of all issuances of commodities from storage by the Custodian. It contains the commodity specification and volume (Exhibit 1).
6.2 Warehouse Commodity Receipt (WCR) - a pre-numbered accountable form which serves as an evidence of receipt of commodities for storage by the Custodian to form part of his accountability (Exhibit 2).
6.3
Commodity Authority to Issue
(CAI) - a pre-numbered accountable form which serves as the written order from the Provincial Manager/OIC to the Custodian for all issuances and in-warehouse movement of commodities. (exhibit 3)
6.4
Commodity Purchase Receipt (CPR)
- a pre-numbered accountable form which serve as an evidence of procurement. It reflects the volume, quality, specification and cost of the procured commodities. This form shall also indicate whether the procured commodities are direct procurement by NFA for either NFA or FTI, direct delivery by supplier or picked-up by FTI (Exhibit 4).
6.5
Purchase Order (PO)
- a pre-numbered accountable form which serves as an authority to procure and an agreement between NFA and the farmer/supplier regarding the terms and conditions of the local procurement transactions. (Exhibit 5).
6.6
Charge Sales Invoice (CSI
) -a pre-numbered accountable form which indicates the commodity items, specifications and volume issued to charge sales. It shall also reflect the computed selling prices. (Exhibit 6).
6.7
Commodity Order Form (COF)
- a pre-numbered form which evidence that request for commodities, its volume and specifications. It also indicates the reference number of the corresponding issuing document as well as a portion to indicate if the order has been served or not. (Exhibit 7)
6.8 Commodity Unloading Receipt (CUR) - a pre-numbered form which records the volume and specifications of commodities unloaded form a shipping vessel. With the WCR, it shall serve as evidence of actual receipts of shipments at the port. (Exhibit 8)
6.9
Kadiwa Procurement Report (KAPREP)
The provincial office/area depot shall prepare and transmit thru wires a daily Kadiwa Procurement Report (KAPREP), except for days when no procurement is undertaken. Cut off time for KAPREP is 5:00 p.m. of the day the purchase was made and transmittal to Central Office shall not be later than 12:00 noon the next day. KAPREP shall include the date of purchase, commodity purchased, CPR No., scheme of procurement, volume, basic and incidental costs. The daily wire shall be addressed to DNG attn: Procurement Division and to the Economic Research and Statistics Directorate (ECO) (Exhibit 9). For reconciliation purposes, a monthly report with a similar format shall be prepared and submitted not later than the first week of the succeeding month thru the fastest means other than wires. The monthly KAPREP shall be addressed to DNG. Attn: Procurement Division Treasury Directorate (TRD) Attn: Special Funds Division and ECO (Exhibit 10).
6.10
Abstract of Commodity/Purchases (ACP)
The provincial office/Area Depot shall submit thru the fastest means other than wires a weekly Abstract of Commodity Purchase to TRD Attn: Special Funds Division. The report shall reflect the date of purchase, commodity purchased, CPR No. , basic cost, incidental cost and total disbursement. The CP shall be duly certified, noted and audited. (Exhibits 11)
III. RESPONSIBILITIES
A.
NFA Procurement for NFA
A.1
Procurement for Consumption of Local KC
A.1 Ex-Form Procurement
RESPONSIBILITY ACTION
Procuring Province/ 1. Based on the market plan confirmed by Provincial Manager/OIC DNG, prepares procurement program for local KC
Procurement Team Leader 2. Undertakes canvass of terms and conditions of
local suppliers.
Provincial Manager/OIC 3. Selects supplier with the confirmation of the Regional Director. Wires DNG of the most desirable terms and conditions to serve as guide for KPF remittances, whenever KPF is not sufficient/available.
4. For commodities to be procured not included in the market plan, wires DNG per authority.
DNG 5. Evaluates request to procure. Wires province of its evaluation informing the province of either of the following courses of action.
5.1 Approval of request
5.2 Denial of request
5.3 Advice that requested commodities will be
shipped by DNG to their end
5.4 For new manufactured commodities, request for sample
Provincial Manager/OIC 6. Pinpoints procurement areas based on the canvass undertaken and organizes team composed of:
6.1 Team Leader
6.2 Special Disbursing Officer (SDO)
6.3 Quality Control Inspector
6.4 Driver (for mobile procurement)
6.5 Laborer
Procurement Team 7. Proceeds to identified areas. Inspects, accepts weighs and counts commodities
8. Prepares WCR.
WCR Copy 1 - Corrier/SDO
2 - Accounting
3 - Auditing
4 - Handler
5 - Supplier
6 - Custodian
SDO 9. Computes amount due to the farmer/supplier and
prepares CPR based on WCR.
CPR Copy 1 - Accounting
2 - Farmer/Supplier
3 - Auditing
4 - SDO
9.1 If the amount does not exceed P1,000.00, pays the farmer/supplier in cash at the field.
9.2 If the amount exceeds P1,000.00, prepares a check following the procedures in cereal procurement. A maximum of P350.00 in cash can be disbursed. However, the said amount needs to be indicated in the "CASH" portion of the CPR, to be deducted from the amount due to the farmer/supplier.
9.3 If the amount exceeds P10,000, forwards CPR Copy 1 and WCR copy 2 to the Operations Section for Voucher preparation.
Team Leader 10. Directs loading and transporting of commodities either direct to the local KC or to the Provincial Storage for later withdrawal of local KC.
10.1 If transported to local KC
10.1.1 Prepares WCI "Technical-In". The Commodity shall be issued to "transfer" to the local KC, Entries in the WCR and WCI shall be identical.
WCI Copy 1 - Corrier
2 - Accounting
3 - Auditing
4 - Handler
5 - Customer
6 - Custodian
10.1.2 Receives, weighs and counts commodities. Prepares WCR.
10.2
If
transported to Provincial Storage
10.2.1 Prepares WCI "Technical-In" The commodity shall be issued to "transfer" to the Provincial Storage.
10.2.2 Inspects, receives, weighs and counts commodities. Prepares WCR.
11. Prepares voucher for purchases exceeding P10,000.00 based on CPR Copy 1 and corresponding WCR Copy 2 forwarded by the SDO. Forwards voucher to Accounting Section.
12. Presents claims at the Accounting Section with
CPR Copy 2 and WCR Copy 5.
13. Processes claims per Accounting SOP.
14. Prepares daily procurement report and transmits some thru wires to DNG attn: Procurement Division and ECO. Prepares Weekly ACP. Forwards accomplished ACP to TRD Attn: Special Funds Division thru the fastest means other than wires. At the end of the month, prepares monthly reconciliation report and forwards to TRD. ECO and DNG thru the fastest means either than wires.
Provincial Manager/OIC/SDO 15 Upon request of local KC, prepares and forwards CAI to Custodian.
Custodian 16. Prepares WCI and issues commodities.
PKC-OIC 17. Receives, weighs and counts commodities. Prepares WCR.
A.1.b Ex-Warehouse Procurement
Farmer/Supplier 1. Transports commodities to the warehouse.
Quality Control Inspector 2. Inspects commodities.
Custodian 3. If found satisfactory, receives, weighs and counts commodities. Prepares WCR.
4. Computes amount due to the farmer/supplier and prepares CPR based on WCR.
4.1 If the amount does not exceed P1,000.00, pays the farmer/supplier in cash.
4.2 If the amount exceeds P1,000.00 prepares a check following the procedures in cereal
procurement. A maximum of P350.00 in cash can be disbursed. However, the said
amount needs to be indicated in the "CASH" portion of the CPR, to be deducted from the amount due to the farmer/supplier.
4.3 If the amount exceeds P10,000.00 forwards CPR Copy 1 to the Operations Section for voucher preparation.
Operations Section 5. Prepares voucher for purchases exceeding P10,000.00 based on CPR Copy 1 and corresponding WCR Copy 2 forwards by the Custodian. Forwards voucher to Accounting Section.
Farmer/Supplier 6. Presents claims at the Accounting Section with CPR Copy 2 and WCR Copy 5.
Accounting Section 7. Processes claims per Accounting SOP.
SDO 8. Prepares daily procurement report and transmits same thru wires to DNG Attn: Procurement Division and ECO. Prepares weekly ACP. Forwards accomplished ACP to TRD Attn: Special Funs Division thru the fastest means other than wires. At the end of the month, prepares monthly reconciliation report and forwards to TRD, CO and DNG thru the fastest means other than wires.
Provincial Manager/OIC/SOO 9. Upon request of local KC, prepares and forwards CAI to Custodian.
Custodian 10. Prepares WCI and issues commodities.
PKC 11. Receives, weighs and counts commodities. Prepares WCR.
A.1.c
Direct Delivery by Supplier to Local KC/Storage
Provincial Manager/OIC 1. Appoints procurements team leader to canvass the terms and conditions offered by the local supplier for the required commodities.
Procurement Team Leader 2. Undertakes the canvass for required commodities. Prepares an Abstract of Canvass and forwards same to Provincial Manager/OIC.
Provincial Manager/OIC 3. Selects supplier and recommends same to the Regional Director.
Regional Director 4. Confirms the choice of supplier, if all the terms are found to be in order.
Procurement Team Leader 5. Upon selection of the supplier, prepares Purchase Order )PO) based on the confirmed terms and conditions. Signs "BY" portion of the PO.
PO Copy 1 - Farmer/Supplier
2 - DNG
3 - Accounting
4 - Auditing
5 - File
6. Forwards PO to Accounting Section to confirm if the procurement is within the budget or if funds are available.
6.1 If not within the budget of funds are not available
6.1.1 Does not sign PO and forwards same to the Provincial Manager with a notation of unfavorable evaluation
Provincial Manager/OIC Advises DNG thru wire of the inadequacy of funds.
DNG 6.2 If within the budget or funds are available.
Provincial Accountant 6.2.1 Signs "FUNDS AVAILABLE" portion of the PO and forwards some to the Provincial Manager/OIC for approval.
Provincial Manager/OIC 6.2.2 If in order, signs "APPROVED BY" portion of the PO.
6.2.3 Schedule delivery of supplier to ensure the presence of the SDO and Quality Control Inspector at the Storage/KC identified to be the delivery point.
Procurement Team Leader 7. Coordinates with the supplier regarding the confirmed terms and conditions and delivery schedule. (Upon finalization of schedule, informs Provincial Manager to ensure presence of Quality Control Inspector and SDO at appointed time).
8. Transports commodities to identified local KC.
9. Inspects the commodities.
10. If found satisfactory, receives, weighs and counts commodities. Prepares WCR.
Follow procedures A.1.b No. 4 to 8.
A.2
Procurement for Dispersal to Other Province
A.2.a Initiated by the Province
Provincial Manager/OIC 1. Based on the dispersal plan, instructs the procurement team leader to undertake a canvass of local suppliers.
Procurement Team Leader 2. Conducts a canvass of the terms and conditions ` of local suppliers. Prepares an Abstract of Canvass. Forwards same to Provincial Manager.
Provincial Manager/OIC 3. With the terms and conditions to DNG per confirmation/approval.
4. Upon DNG's confirmation/approval, organizes procurement team.
A.1. Ex-farm Procurement
Follow procedures A.1.a No. 7 to 9 and A.1.a No. 10.2.1
Team Leader 5. Directs loading and transporting of commodities to the Provincial Storage.
Custodian 6. Inspects, receives, weighs and counts commodities. Prepares WCR.
Provincial Manager/OIC/SDO 7. Prepares CAI addressed to the Custodian for issuance of stocks to another province. Forwards CAI to Custodian.
Custodian 8. Prepares WCI and issues commodities.
N.B. The commodities shall be received and issued "Technical-IN" from the farm to the receiving province.
1.4 If shipment is via land transport
9. Prepares BL addressed to the trucker and consigned to the province confirmed by DNG. The BL shall have the total purchase price plus the procurement expenses as the inventory value of the commodity (lies) to be shipped. The unit cost shall be reflected.
10. Advises destination province cc. DNG of the shipment of commodities, indicating their specifications, BL, ETD/ETA, unit cost, supplier's name, other incidental costs to be incurred and other pertinent data.
10.1 Prepares ROA advice and transmits same to receiving province.
Trucker 11. Transports commodities to destination province.
Receiving Province/Custodian 12. Inspects, receives, weighs and counts commodities. Prepares WCR.
Receiving Province/Operations Section 13. Acknowledges receipt of commodities in the appropriate portion of the BL, reflecting the quantity and quality stated in the WCR.
14. Wires the issuing province cc ABD/DNG of the receipt of commodities, quantity and quality received, WCR and other pertinent data.
15. Provides corrier with WCR Copy 1 and 5 and BL for delivery to issuing province and voucher preparations.
Issuing Province/ 16. Assists corrier in the preparation of voucher Operations Section based on BL and WCR of receiving province.
Corrier 17. Presents claims at the Accounting Section with voucher and corresponding BL and WCR.
Issuing Province/ 18. Processing claims per Accounting SOP.
Accounting Section
i.b If shipment is via Sea Transport
Issuing Province/ 9. Prepares BL addressed to the trucker and consigned to the local NFA Port Operations Group.
Issuing Province Port 10. Inspects, receives, weighs and counts commodities. Acknowledges receipt in the appropriate portion of the BL.
11. Prepares BL addressed to the shipper and consigned to the province confirmed by DNG. The quantity and quality reflected shall be identical with those stated in the acknowledged portion of the B1 addressed to the trucker.
Issuing Province/ 12. Advises destination province cc DNG of the Operations Section in cc DNG of the arrival of commodities, coordination with Acctg. specification, volume, BL No., ETD/ETA, corriers
identification cost and other pertinent data.
Shipper 13. Transports commodities to destination province
with NFA escort.
Receiving Province/ 14. Supervises unloading per Port Operations
Port Operations Group SOP. Prepares Commodity Unloading Receipt
(CUR)
CUR Copy 1 - Custodian
2 - Port Operations Officer
3 - Accounting
5 - Auditing
Follow procedures A.2.a
No. 12 to 18 and A.1.a
No. 11 to 13.
ii.
Ex-Warehouse Procurement
Follow procedures A.1.a No. 1 to 5. A.1.b No. 1 to 8 and A.2.a No. 15 to A.2.a (i.a. No. 9 to 18) or A.2.a (i.b No. 9 to 14).
iii.
Direct Delivery by Supplier
Follow procedures A.1a No. 1 to 5; A.1.c No. 1 to 7 and A.1.a No. 14.
Issuing Province/ 1. Advises destination province of the arrival of commodity, BL No. corrier's identification, supplier's name and other pertinent data. Prepare NFA BL to accompany delivery by supplier.
Supplier 2. Transports commodities to destination province.
Receiving Province/ 3. Inspects, receives, weighs and counts Custodian commodities. Prepares WCR. Accomplishes NFA BL's acknowledgement portion.
Receiving Province/Optns. Section 4. Wires the issuing province cc. DNG of the receipts of commodities, quantity and quality received, WCR and other pertinent data.
5. Provides supplier, with WCR copy 1 and 5 for delivery to inssuing province and voucher preparation.
Issuing Province/Operations Section 6. Assists supplier in the preparation of voucher based on PO and WCR of receiving province.
A.2.b Initiated by DNG
i. Negotiated by DNG at Metro Manila
DNG 1. Based on market plan negotiates with supplier for delivery to Area Depot.
2. Prepares PO addressed to the supplier. Coordinates with supplier and MMO on the delivery schedule.
MMO 3. Advises destination proving (where Area Depot is located) of the arrival of commodities, corrier's identification, BL No., supplier's name, ETD/ETA and other pertinent data.
3.1 Prepares BL indicating quantity, commodity, unit cost and total cost.
Supplier 4. Transports commodities to destination province.
Receiving Province/Depot Custodian 5. Inspects, receives, weighs and counts commodities. Prepares WCR.
6. Acknowledges receipt of commodities in the appropriate portion of the BL, reflecting the quantity and quality stated in the WCR.
7. Wires DNG cc. ABD of the receipt of commodities, quantity, and quality received, WCR No. and other pertinent data.
8. Provides supplier with WCR Copy 1 and 5 for voucher preparation.
DNG 9. Assists supplier in the preparation of voucher based on BL and WCR of receiving province.
Supplier 10. Presents claims of ABD Accounting Section with voucher and corresponding BL and WCR.
ABD-Accounting 11. Processes claims per Accounting SOP.
ii. Negotiated by Provincial Office with Supplier
DNG 1. Instructs provincial office to determine terms and conditions of local suppliers.
Provincial Office 2. Undertakes the evaluation of the terms and conditions of local suppliers by conducting a canvass.
3. Wires DNG the Abstract of Canvass.
DNG 4. Evaluates the transmitted terms and conditions. If favorable, advises provincial office to procure specific commodities and volume. If not favorable, advises provincial office not be procure.
Provincial Office 5. Coordinates with local suppliers for direct delivery to area Depot. Prepares PO.
Follow procedures A.1.c No. 6 to 7
Supplier 6. Transports commodities to Area Depot.
Depot Custodian 7. Inspects, receives, weighs and counts commodities. prepares WCR.
8. Acknowledges receipt of commodities in BL, if available, reflecting the quantity and quality stated in the WCR.
SDO 9. Prepares CPR based on the PO and commodities received and forwards CPR Copy 1 and corresponding WCR Copy 2 to the Operations Section.
SDO 10. Prepares daily procurement report and transmits same thru wires to DNG Attn: Procurement Division. Prepares Weekly ACP. Forwards accomplished ACP to TRD Attn: Special Funds Division thru the fastest means other than wires. At the end of the month, includes procurement in the monthly reconciliation report and forwards to TRD and DNG.
Operations Section 11. Prepares voucher based on PO, CPR, WCR and BL, (if available). Forwards voucher to Accounting Section.
Accounting Section 12. Processes claims per Accounting SOP.
B.
NFA Procurement for FTI
B.1
Ex-farm Procurement
FTI-KSC 1. Advises DNG thru MMO-FTI Unit of its commodity requirements by submitting a Commodity Order Form (CDF). The CDF, duly certified by the OIC of FTI-KSC, shall be prepared and forwarded monthly or as often as the need crises. The CDF shall specify the commodity item specification, volume, price range at which NFA can buy for FTI and terms of pricing, i.e. whether ex-farm, ex-FTI or picked up by FTI.
DNG 2. Instructs the most appropriate provincial/Unit office to conduct a canvass of the terms and conditions of the local suppliers for identified commodities.
Field Office 3. Undertakes a canvas of the terms and conditions of local suppliers for the required commodities. Prepares and Abstract of Canvass.
4. If the basis of acceptance is ex-FTI, operations, in coordination with the accounting section, projects other costs and allowances for losses that will be incurred in the shipment of commodities to fTI. Wires DNG of the most favorable term based on the advised price range and the canvass, specifying the projected cost.
DNG5. 5. Based on field office report evaluates viability of FTI's prescribed terms and conditions.
5.1 FTI's terms are not viable:
5.1.1 Request FTI to adjust its proposed terms and conditions.
5.1.2 Submits a formal communication
advisory DNG of the revisions and the reference number of the DOF.
5.2. FTI's terms are viable.
5.2.1 Proceeds with procurement.
6. Instructs field office to procure from identified supplier.
Provincial Manager/ 7. Pinpoints procurement areas and organizes team.OIC
Procurement Team 8. Proceeds to identified farmer/supplier. Inspects,
accepts, weighs and counts commodities.
Team Leader 9. Prepares WCR.
SDO 10. Computes amount due to the farmer/supplier and prepares CPR based on WCR.
10.1 If the amount does not exceed P1,000.00 pays the farmer/supplier in cash
10.2 If the amount exceeds P1,000.00 prepares a check following the procedures in cereal procurement. A maximum of P350.00 in cash can be disbursed. However, the said amount needs to be indicated in the "CASH" portion of the CPR, to be deducted from the amount due to the farmer/supplier.
10.3 If the amount exceeds P10,000.00, forwards CPR copy 1 and WCR copy 2 to the Operations Section for voucher preparation.
Team Leader 11. Directs loading and transporting of commodities to FTI. Prepares WCI "Technical-In".
Operations Section 12. Prepares voucher for purchases exceeding P10,000.00 based on CPR copy 1 and corresponding WCR copy 2. Forwards voucher to Accounting Section.
Farmer/Supplier 13. Presents claims at the Accounting Section with CPR copy 2 and WCR copy 5.
Accounting Section 14. Process claims per Accounting SOP.
SDO 15. Prepares daily KAPREP wire and transmits to DNG Attn: Procurement Division and ECO. At the end of the week, prepares and forwards ACP to TRD Attn: Special Funds Division thru the fastest means other than wires. At the end of the month, prepares and forwards monthly reconciliation reports to DNG, ECO and TRD.
B.2
Ex-Warehouse Procurement
Farmer-Supplier 1. Transports commodities to the warehouse
Quality Control Inspector 2. Inspects commodities
Inspector
Custodian/Team Leader 3. If found satisfactory, receives, weighs and counts
commodities. Prepares WCR.
Follow procedures 8.1 No. 10 and B.1 No. 12 to 15.
a.
Terms of Delivery to FT
I
c.1
If Commodities are picked-up by FTI
Provincial Manager/OIC/SDO 1. Coordinates with DNG regarding the schedule
OIC/SDO of FTI pick-up
DNG 2. Coordinates with FTI regarding the schedule of pick-up. Advises province accordingly.
Procurement Team Leader 3. Upon advice of pick-up schedule, coordinates with the farmers/supplier's regarding the necessary preparation.
FTI Team 4. Pick-up commodities in the presence of NFA-Procurement Team Leader and SDO.
4.1 Inspects, receives ex-farm weighs and
counts commodities.
Follow procedures B.1 No. 10 and
B.1 No. 12 to 15.
PTL 5. Prepares NFA BL and charge Sales Invoice (CSI) indicating quantity, commodity items, selling price and total sales value. NFA BL and the CSI shall be stamped with the words "FTI pick-up".
FTI Team 6. Acknowledges receipt of commodities on the "Acknowledgement" portion of BL. Gets BL copy 2 and CSI original and duplicate.
SDO 7. Based on original BL copy prepares CPR and proceeds with payment procedures.
FTI Team 8. Returns to FTI with the commodities and the NFA BL and CSI.
FTI-KSC/SLU 9. Upon receipt of commodities, prepares Kadiwa Commodity Receipt (KCR) for non-livestock or Stockyard Receipt (SR) for livestock based on NFA-BL and CSI. Forwards KCR/SR together with NFA-BL and CSI to Logistic Support Group.
Note: Difference in weight when received from NFA field office to FTI-KSC shall be scheduled by FTI.
Logistic Support Group 10. Based on KCR/SR, NFA-BL and CSI, prepares CPCR. The amount to be indicated in the CPCR should be that indicated in the NFA-CSI regardless of quantity. Forwards CPCR, KCR/SR, original and copies of NFA-BL to CSI to MMO-FTI unit.
MMO-FTI 11. Receives documents forwarded by LSG. Forwards documents received to DAB-IBC division for billing purposes.
a.2
If Commodities are delivered to FTI by NFA
Provincial Manager/OIC 1. Prepares CAI.
SDO
Custodian 2. Issues commodities and prepares WCI.
Accounting Section 3. Prepares CSI and reflects NFA's unit selling price to FTI.
Operations Section/ 4. Prepares BL addressed to the trucker/howler. The BL shall be consigned to FTI if the shipment is via land transport and to the local Port Operations Group if the shipment is via sea transport. The inventory value of the commodities in the BL shall be the amount reflected in the CSI which shall be attached to the BL.
i. If the shipment is via Land Transport
Issuing Province/ 5. Advises MMO-FTI unit cc: DNG of the arrival of Operations Section commodities, specifications, volume, BL No. ETD/ETA, corrier's identification, incidental costs and other pertinent data thru wires.
MMO-FTI unit 6. Advises FTI thru MMO-FTI unit of the arrival of DNG commodities and other pertinent data.
Trucker/Hauler 7. Transports commodities to FTI.
FTI-KSC/SLU 8. Inspects, receives weighs and counts commodities in the presence of MMO-FTI unit
representatives.
9. Acknowledges receipt of commodities in the appropriate portion of the BL. Forwards BL copy 4 and 5 to DNG and ABD copy 6 and 7 to the issuing province thru the trucker/hauler. Also acknowledges receipt in CSI.
10. Prepares KCR and CPCR for non-livestock and SR and CPCR for livestock. Have KCR/SR stamped and signed by MMO-FTI Unit representatives.
Duplicate KCR/SR shall be given to trucker/hauler together with copy 6 and 7 of NFA BL for transmittal to the issuing province for adjustment of its previous entry. The original KCR/SR, CPCR together with the copy of NFA BL and CSI shall be forwarded in MMO-FTI unit.
MMO-FTI Unit 11. Receives above document and submits to DAB-IBC Division for billing purposes.
Corrier 12. Presents claims with voucher, WCI, BL and KCR/SR at the Accounting Section.
Issuing Province/ 13.
Processes claims per accounting SOP.
Accounting Section
14. Based on copy of KCR/SR and copy of WCI, notes for difference. If there are discrepancies between what was received by FTI against issued by province, makes adjustment on sales and cost of sales.
ii. If the shipment is via Sea Transport
Provincial Manager/OIC/ 5. Coordinates with locl Port Operations group regarding the shipment of commodities.
Trucker/Hauler 6. Transports commodities to port.
Issuing Province 7. Inspects, receives, weighs and counts Port Operations Group commodities. Port Operations Group Acknowledges receipt in the appropriate portion of the WCI.
8. Prepares NFA BL addressed to the shipper and consigns to fTI thru MMO. The quantity and quality reflected shall be identical with those stated in the acknowledged portion of the WCI addressed to the trucker. Attaches CSI to BL.
Follow procedures 8.2.c.2, i. No. 6 to 6
Shipper 9. Transports commodities to North Harbor with NFA escort.
10. Supervises unloading per Port Operations SOP. Prepares CUR. Acknowledges receipt of commodities in the appropriate portion of the BL. Prepares a BL addressed to the trucker/hauler and consigned to FTI, with the quantity acknowledged received in the BL addressed to the shipper as the quantity issued.
Follow procedures 8.2.a.2., 1 No. 7 to 10; 8.2. a.1 No. 9 to 10; B.2, a.2, 1
No. 11 to 13.
8.3
Direct Delivery by Suppliers
Procurement Team Leader 1. Prepares RO addressed to the supplier based on confirmed terms and conditions. Signs "BY" portion of the PO.
2. Forwards PO to Accounting Section to confirm if the procurement is within the budget or if funds are available.
Accountant 3. Evaluates if procurement is within the budget or if funds are available.
3.1 If procurement is not within the budget or if funds are not available.
a. Does not sign PO and forwards same to the Provincial Manager/OIC with a notation of unfavorable evaluation.
b. Advises DNG cc. ABD of the inadequacy of funds thru wires.
3.2 If procurement is within the budget or if funds are available.
a. Signs "FUNDS AVAILABLE" portion of the PO and forwards some to the PM/OIC for approval.
Provincial Manager/OIC b. If in order signs "APPROVED BY" portion of the PO.
Procurement Team Leader 4. Negotiates with identified supplier.
a.1 If the Supplier Delivers via Land Transport
Supplier 5. Supervises loading of commodities according to the terms and conditions of the PO. Coordinates with the provincial office regarding the preparation of commercial BL.
Accounting Section 6. Prepares CSI. The selling price to be reflected in the CSI shall be the sum of the price indicated in the PO plus impurted expenses-allowances and the computed mark-up for FTI. For billing purposes, the selling price shall be stated in one whole amount (no breakdown as to imputed allowances and mark-ups) per commodity items. The volume in the CSI on the other hand, shall be identical with the volume reflected in the PO.
7. Places CSI copy 1 and 4 in a sealed envelope addressed to FTI, c/o NFA MMO-FTI Unit. Forwards enveloped to supplier in order to be handcarried by corrier to FTI.
Operations Section 8. Advises MMO-FTI cc: DNG of the arrival of commodities, specifications, volume, BL No., supplier's name, ETD/ETA, corrier's identification and other pertinent data.
Trucker Hired by Supplier 9. Transports commodities to FTI with the CSI sealed in an envelope.
Follow procedures 8.2., a.2, i No. 8 to 10.
FTI-LSG 11. If the volume and specifications of commodities received at FTI vary from those reflected in the CSI, reflects variance in "REMARKS" portion of the CSI, based on KCR/SR forwarded by FTI custodian. Prepares CPCR. CPCR shall be prepared based on KCR/SR for the quantity and the NFA CSI for the selling price. Forwards CPCR, KCR/SR to MMO-FTI unit.
MMO-FTI Unit 12. Receives above document and forwards daily to DAB-IBC Division for billing purposes.
Issuing Province/ 13. Upon receipt of KCR/SR. prepares WCR Operations Section and one WCI "Technical-In" on the bases of the actual receipt reflected in the KCR/SR. Prepares CPR based on PO.
14. Assists suppliers in the preparation of voucher based on the PO, BL No. and KCR/SR.
Supplier 15. Presents claims with the voucher, PO, BL and KCR/SR.
Accounting Section 16. Processes claims per Accounting SOP.
ABD-IBC Division 17. Bills FTI weekly based on KCR/SR, CPCR, acknowledged BL and CSI.
a.2 If the Supplier delivers via Sea Transport
Supplier 5. Coordinates with the local Port Operation Group/Provincial Office regarding the preparation of commercial BL.
6. Supervises loading of commodities according to the terms and conditions of the PO.
Follow procedures 8.3., a.1 No. 6 to 10.
Corrier Hired by Supplier 7. Transports commodites to FTI via North Harbour.
Follow procedures 8.2., a.2, i No. 8
to 10; B.3, a.1 No. 11; B.3 a.1
No. 7; 8.2., a.1 No. 9 to 10 and
B.3 a.1 No. 12 to 16.
Provincial Manager/OIC 1. Prepares market plan and forwards same to DNG and ECO Wires DNG cc. ECO for any additional requests, indicating the brand, specification and volume.
DNG 2. Based on market plan, and additional requests, prepares Commodity Order Form (COF) addressed to FTI-KSC.
COF copy 1 - FTI-KSC
2 - DNG File
3 - MMO-FTI unit (to be
returned to DNG after
serving request)
3. Forwards COF Copy 1, 3 and 4 to FTI-KSC thru MMO-FTI unit.
FTI-KSC 4. Based on COF Copy 1, prepares KCI and SI addressed to receiving province thru MMO.
5. Serves NFA requirements in the presence of MMO-FTI unit representative.
MMO-FTI Unit 6. Inspects is the commodities by conducting random checking of sealed boxes to determine if they conform with COF specifications.
7. Accomplishes additional data requirements of COF and forwards copy 4 to DNG.
8. Prepares WCR and WCI "Technical-IN". In the WCR "Remarks" portion, indicates the reference number of the corresponding COF. The WCI shall be addressed to the requesting province.
9. Prepares BL showing amount per FTI-SI plus incidental expenses addressed to the trucker and consigned to the requesting province if the shipment is overland or to MMO-POG if the shipment is by sea transport. Attaches corrier's copy of KCI to BL to be sent to the receiving province.
c.1 If the Shipment is via Land Transport
MMO-FTI Unit 10. Advises Prov. cc. DNG of the shipment of commodities indicating the BL No. , corrier's identification, ETD/ETA and other pertinent data.
Trucker/NFA Hauler 11. Transports commodities to requesting province.
Receiving Province/Custodian 12. Inspects by opening each sealed boxes, counts/weighs commodities. If there are no bag order or spoiled or lacking in quantity boxes, proceeds with the acceptance. If there are bad order/spoiled or lacking in quantity boxes, the same should be wired to FTI cc: DNG upon receipt or within 15 days from receipt. Bad order and spoiled commodities received should be segregated.
13. Prepares WCR. Acknowledges receipt of commodities in the appropriate portion of the BL, reflecting the quantity and quality stated in the WCR.
14. Advises MMO-FTI Unit cc. DNG of the receipt thru wires indicating the BL NO., item, quantity and quality received and WCR No.
15. Forwards BL and wCR copies to MMO-FTI unit thru any fast means.
MMO-FTI Unit 16. Assists hauler/corrier in the preparation of voucher based on the KCI, BL and WCR.
Hauler/Corrier 17. Presents claims at MMO Accounting Section with the voucher, KCI, BL and WCR.
MMO-Accounting Section 18. Processes claims per Accounting SOP.
c.2 If the Shipment is via Sea Transport
MMO-FTI Unit 19. Coordinates with MMO-POG regarding the shipment of commodities.
Trucker/NFA Hauler 20. Transports commodities to North Harbor.
MMO-POG 21. Inspects, receives weighs and counts commodities. Acknowledges receipt in appropriate portion of the BL. Forwards acknowledged BL to MMO-FTI Unit for voucher preparation.
IV. FLOW CHART
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