SOP No: GS-PD08

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SOP NO: GS-PD08 (List of Exhibits/Attachments)

Mission: Finance and Administration

Area: General Services (GS)

Activity: Purchasing/Inspection and Fixed Asset Disposition (GS-PD)

Title:

Field Office Purchasing System

Date Approved/Issued: 09/22/1987

Date Effective: 09/15/1987

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

Supplies/Materials Requisitioning

1. A Requisition and Issue Voucher (RIV) (Exhibit 1) shall be prepared by the requisitioning officer/ employee for requests of supplies, materials and equipments.

2. RIV's shall be initially

screened/ evaluated

by the Administrative Officer and approved by the Head of Office.

3. RIV's shall be classified into three and separate sequence of control numbers shall be maintained for each classification:

RIV A - shall refer to RIV's prepared for request for supplies, materials and equipment which are available at the storage under the custody of the Supply Officer/ Property Custodian.

RIV B - shall refer to RIV's prepared for request for supplies, materials and other equipment for purchase and for direct issuance to user/requisitioner. The transaction is not entered in the Supplies Ledger Card of the Supply Officer.

RIV C - shall refer to RIV's prepared by the Supply Officer/ Property Custodian for purchases/replenishment of supplies, materials and equipment for stock and issue.

4. RIV's prepared by the field office Supply Officer/Property Custodian for supplies and materials requests at Central office shall be classified as RIV-C in the field office.

5. RIV numbers shall be controlled by the Supply Officer. Separate files shall be maintained for each RIV classification to facilitate accounting and auditing of supply officer's accountability.

6. Copy distribution of RIV shall be as follows:

6.1 For Issue (RIV- A)

Copy 1 - Supply Officer

Copy 2 - Accounting (RO/PO)

Copy 3 - Requisitioner

6.2 For Purchase (RIV- B or C)

Copy 1 - Voucher

2 - Accounting (RO/PO)

3 - Supply Officer

4 - Requisitioner

6.3 For supplies and materials requests at Central office (RIV- C)

Copy 1 & 2 - PSDS - Property Storage and Disposition Section

(The second copy of served RIV C shall be forwarded to

DAB together with the monthly Statement of S & M Issuances

for attachment to the Debit Advice)

Copy 3 - PMMS - Property Monitoring and Maintenance Section

Copy 4 - Accounting (RO/PO)

5 - Supply Officer (F.O.)

7. All requisitions (RIV -B or C) by the F.O. Supply Officer shall be supported by a stock position sheet (Exhibit 2 )

Purchase of Supplies and Materials

1. All office supplies/materials/equipment requirement of the branch office shall be purchased locally except for the following in which centralized purchasing shall apply :

1.1 Provincial Office

P5,000 & below Asst. Provl. Manager

above P5,000 up to P10,000 Provincial Manager

above P10,000 up to P30,000 Asst. Regl. Director

above P30,000 up to P50,000 Regional Director

above P50,000 C.O. (Wire Authority)

1.2 Regional Office

P30,000 & below Asst. Regl. Director

above P30,000 up to P50,000 Regional Director

above P50,000 C.O. (Wire Authority)

Canvass of Prices

1. Price quotations shall be solicited from at least three (3) suppliers using the Request for Quotation Form (Exhibit 6). The forms shall indicate the name and address of the prospective suppliers and listing down the items being canvassed.

Copy 1 - Supplier Copy 2 - Supply Officer

2. Price quotations submitted by prospective suppliers shall be tabulated by the Supply Officer in a prescribed form called Abstract of Canvass of Prices (Exhibit 7).

The Abstract of Canvass shall summarize the offers made and shall be used as basis for selecting the winning supplier.

Copy 1 - Voucher 2 - Acctg. 3 - Supply Officer

Emergency Purchase

1. Emergency purchase shall be made only whenever the supplies, materials and equipment are exceptionally urgent or absolutely indispensable to prevent immediate danger to, or loss ofl ife and/or property and whenever the supplies are to be used in connection with the project or activity which cannot be delayed without causing detriment to the public service.

2. Emergency purchase shall be supported by a certificate by the head of office that the price paid or contracted for is reasonable and that it was the lowest obtainable at the time of purchase or order (Exhibit 8).

Petty Purchases

1. Purchases worth P200 and below shall be considered as petty purchases Purchasing documents under this scheme shall be simply stampedmarked "petty purchases" and shall not require the tedious process of canvassing of prices. However, deliveries/purchases shall be inspected by the Property Inspector and shall be reflected on the receipt.

a) accountable forms

b) office equipment

c) vehicle and communication units

d) post harvest facilities

Centralized purchasing shall follow existing SOP on C.O. Purchasing System (SOP No. GS-PD 04).

2. All purchases shall be made at the most reasonable cost to the agency taking into consideration the quality, design, price, delivery and aftersales service warranty.

3. All supply requirements of the government shall be procured directly from reputable manufacturers or other duly registered licensed distributors to the exclusion of the middlemen.

4. Splitting of requisitions, purchase, vouchers and others pursuant to COA Circular No. 76-41 dated July 30, 1976, shall be prohibited.

Purchase Order/ Letter Order / Job Order

1. The Purchase Order/ Letter Order/ Job Order shall serve as a contract between the NFA and the supplier upon signing by both parties. It shall bind the supplier to deliver to NFA the items/services listed thereon in full compliance to description and specification at the specified place, datae and time according to terms and conditions agreed upon.

2. The Purchase Order (Exhibit 3) shall cover all purchases above P2,000 entered into by the field office. Approval of PO shall follow established levels of authority.

3. The Letter Order (Exhibit 4) shall be prepared in case the purchase amount is P2,000 and below.

4. The Job Order (Exhibit 5) shall cover services to be rendered or purchases of materials and equipment specially fabricated for NFA by outside manufacturers/ suppliers.

5. Copy distribution shall be as follows:

PO JO

1- Voucher 1 (white)- Voucher 1 (white) - Voucher

2- Supply Off. 2 (pink)- Acctg. 2 (pink) - Acctg.

3- Acctg. 3 (yellow)- Adm. Off. 3 (green) - Adm. Off.

4- Adm. Off. 4 (green) - Supply Off. 4 (blue)- Supply Off.

5 (blue) - Supply Off. 5 (orange)- Supply

6 (orange)- Supply Off. Officer

Levels of Authority

1. Approval of letter/purchase/job orders for field offices shall follow the herein specification of authority.

Receiving and Inspection

1. Receipt of stocks from storage shall be properly acknowledged by the requisitioner at the appropriate portion of the RIV.

2. All deliveries from suppliers shall be subjected to immediate inspection by the Designated Properly Inspector. The Inspection Report shall determine the conformity of delivered items with the specification requirement of the requisitioner.

The designated Property Inspector shall be the Administrative Officer/Assistant for office supplies, materials and equipment while the Regional/Plant Engineer or MPO for technical material and equipments.

In no case shall the designated Property Inspector inspect the delivered items requisitioned by him.

3. The Acceptance Report shall acknowledge the receipt of purchased items conforming with the specifications as required. The Report shall be signed by the Supply Officer/requisitioner.

Receipt of purchases classified as fixed assets shall likewise be documented thru the Fixed Assets Receiving Report (FARR) Exhibit 14.

a) Pre-repair inspection (Exhibit 9) - prior to issuance/purchase and repair of parts and equipment respectively.

b) Post repair inspection (Exhibit 9) - after completion of the work.

c) Report of Waste Materials (Exhibit 10).

4. The Report of Waste Material evidences the surrender of worn-out or obsolete parts for replacement/disposal based on the inspection report. Waste materials with resale value shall be stored temporarily and later offered for bid and those without value shall be destroyed immediately. Separate files for the above shall be maintained, each assigned with corresponding control number series (Refer to SOP No. GS-PD06).

Copy 1 - Finance Section

2 - Supply Officer

3 - Property Inspector

4 - GSD

5. A Certificate of Undertaking (Exhibit 11) accomplished by the requisitioner and certified by the head of office may be required in lieu of the Post-Repair Inspection and Waste Material Report. This shall be effected on order not to hamper payment to supplier due to NFA's delay in the installation/use of the spare parts. The Post-Repair Inspection and Waste Material Report shall be submitted within two days after repair/installation and must be attached to the voucher prior to post-audit by COA.

Budget

1. Field Offices shall be provided with quarterly fund allotment for supplies and materials to be utilized for the period.

2. Unused fund allotment for the preceding quarter can be carried over the next quarter within the fiscal years.

Voucher Processing

1. The Original Copy of the dealer's/supplier's Invoice showing the quantity, description of the articles, unit and total value, signed by the dealer or his representative and indicating the acceptance of delivery by authorized NFA representative shall be the basis in the preparation of voucher.

2. The following documents shall be attached to the voucher.

a. Charge Invoice/Statement of Repair

b. PO/LO/JO (Inspection and Acceptance Reports Incorporated)

c. Price Quotation

d. Abstract of Canvass

e. RIV

f. Certificate of work accomplishment

g. Stock Position Sheet (Attachment to RIV B or C)

h. Fixed Asset Receiving Report/Memorandum Receipt

i. Certificate of emergency purchase (as needed)

j. Certificate of sole distributorship (as needed)

k. Bill of materials and cost estimate (attachment to Job Order)

Additional Documents for spare parts

a. Pre-repair Inspection Report

b. Post-repair Inspection Report

c. Certificate of undertaking (as needed)

d. Report of Waste Materials

e. Photo stencils (for the brand new and replaced tires)

Inventory

1. Physical inventory count of supplies/materials and equipments shall be conducted at the end of the year to establish value of inventory as of December 31.

2. The Supply Officer/Property Custodian shall reconcile the inventory count with balances as per supplies ledger cards and the discrepancy, if any, shall be disclosed in the inventory report.

The Supply Officer/Property Custodian shall be held liable for whatever discrepancies per books and count after the reconciliation.

3. The Accounting Section shall verify in the suipplies ledger cards and shall certify to the correctness of balances and discrepancies between physical count and balance as per supplies ledger cards.

4. The Inventory Report shall be distributed as follows:

Copy 1 - Finance Section

2 - COA

3 - Supply Officer/Property Custodian

5. The Inventory Report shall be submitted not later than the 15th working day of the succeeding year.

Monitoring and Control

1. The Supplies Ledger Card (Exhibit 12) shall be used in the monitoring of prices and stock quantity. It shall be maintained per item by the Supply Officer.

2. All quantity of stocks/items received per PO/LO/Acceptance Reports and corresponding RIV-C shall be a debit to the supply officer's accountability and credits to his accountability shall be the quantity issued per RIV-A. All these transactions shall be reflected in the supplies ledger card.

3. The total quantity as appearing on the supplies ledger card shall always agree with the quantity on hand.

4. The Supply Officer shall perform the function of a custodian and inventory control officer. Functions shall also cover programing of purchases and control of issuances.

Reporting

1. A monthly report of supplies and materials issued shall be prepared by the Supply officer for submission to the Finance Section (Exhibit 13).

The report shall include quantity, unit, and corresponding amount and to whom the supplies are issued. The report shall be presented in such a way that the issuances are summarized per unit/recipient to facilitate recording of supplies and materials expense per responsibility center and to facilitate preparation of Debit Advice (DA) for supplies and materials issued to other field offices.

2. The Supply Officer shall prepare a monthly summary of served RIV-C for supplies and materials received from Central Office to update recording in the Advice Register Journal.

Provincial Office where Regional Seat is Located

1. Separate supplies/materials budget shall be allocated for the Regional and Provincial Offices.

2. The Provincial Supply Officer shall likewise perform the function of a Regional Supply Officer and shall be responsible in the purchasing, custodianship, inventory control, and issuance of stocks of the Regional Office.

3. There shall be separate physical maintenance of stocks for the Regional and Provincial Office. The Provincial Supply officer shall likewise maintain separate recording, monitoring, inventory count and reporting for each.

Accounting Treatment

1. Accounting treatment for supplies and materials shall follow existing SOP on Supplies and Materials Management abnd Control System (SOP GS-PD05).

III. RESPONSIBILITES

Requisitioning and Purchase

1. Requisitioner/User

1.1 Accomplishes RIV indicating therein items requisitioned and secures signature of head of Office.

For emergency purchases, prepares certificate of emergency purchase and secures signature of head of office.

2. Administrative Officer

2.1 Screens and evaluates RIV abnd recommends its approval to the head of office.

3. Supply Officer

3.1 Issues out requisitioned items available in the storage.

3.2 Prepares request for quotation form and list down specification of requisitioned items for purchase.

3.3 Secures price quotation from at least three (3) suppliers.

3.4 Prepares abstract of canvass and determines winning supplier.

3.5 Prepares PO/LO/JO and secures signature of all approving authorities.

4. PM/RD

4.1 Approves purchase and issuance of supplies and affixes signature on all purchasing documents.

4.2 Certifies as to the reasonableness of an emergency purchase.

5. Provincial?Regional Accountant

5.1 Certifies as to the fund availability of each purchase to be made.

Receiving and Inspection

1. Administrative Officer/Regional Engineer/Plant Engineer

1.1 Inspects delivered items/materials and determines conformance to required specifications.

1.2 Accomplishes Inspection Report portion of LO/PO/JO.

1.3 Conducts pre/post repair inspection of equipment which require purchase of spare parts and/or repair.

2. Requisitioner/ User

2.1 Acknowledges receipt of requisitioned items in the acceptance report portion of LO/PO/JO.

3. PM/ RD

3.1 Affixes signature on the pre/post repair inspection report.

Payment of delivered items

1. Supply Officer

1.1 Prepares voucher and attaches all supporting documents necessary in the payment of claims.

2. Finance Section

2.1 Processes voucher and issues payment to supplier.

Date Approved: September 22, 1987

III. RESPONSIBILITIES

IV. FLOW CHART
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