SOP Library
SOP NO:
HR-PB44
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
Human Resource (HR)
Activity:
Personnel Benefits and Services (HR-PB)
Title:
Revised SOP on NFA Special Vehicle Loan Fund (SVLF) Program
Date Approved/Issued:
12/05/2003
Date Effective:
12/05/2003
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A.
ELIGIBILITY
1.
NFA officials who are holders of positions from grade levels 24 and above shall be entitled to avail of the vehicle loan.
Holders of executive positions as of July 1, 1989 but whose positions were downgraded in the implementation of the Salary Standardization Law (i.e. Special Assistants and Staff Assistants) shall also be eligible to avail of the program. Their present positions shall be considered as equivalent to Salary Grade 24 for purposes of this program.
2.
Except for the NFA Adminisrator, the official must have been an
NFA employee for at least five (5) years on a permanent basis and have performed an executive function for at least one (1) year
before he/she can avail of the vehicle loan.
3.
The applicant must have no pending administrative charges filed against him/her by the NFA management through out the pendency of his application to the program.
4.
The eligible applicant must have a monthly net take home pay of not less than P6,000 after deducting the monthly amortization on the vehicle loan applied for and all other loans. Rice allowance shall not be considered in computing the net take home pay.
5.
An officer who is due to retire from the NFA in less than five years may be allowed to avail of the SVLF but the amortization period of the loan shall be adjusted to the number of years remaining in his/her service with the agency.
6.
Applicants with record of delinquency in the past SVLF program covered by the SOP HR-PB29, issued on April 27, 1997, regardless of amount or duration shall be blacklisted from the program. This policy shall apply even if subject loan has been fully settled. For this purpose, Benefits Unit - HRMD shall notify the concerned region/province of any delinquen
cy.
B.
LIMITATION
1.
Only one vehicle per official, per availment, shall be allowed for acquisition under SVLF financing. However, renewal of vehicle loan may be allowed subject to the provisions on item
II.S
of this SOP.
2.
For an NFA couple who are both executives, only one officer can avail of the SVLF at a time, while the other spouse may avail only after five years when the other spouse has fully paid his/ her loan.
3.
The vehicle to be purchased out of the loan shall be of the employee’s choice provided:
a.
That the vehicle is not more than five (5) years old, if second hand, and in good running condition as appraised by NFA Motorpool or by a reputable motor shop for vehicles to be bought in the provinces.
b.
That the vehicle to be purchased is a four wheel vehicle limited to cars, vans, sports/Asian utility vehicles such as FX, pick-up, locally assembled for private/family use vehicles, etc., (Passenger Jeepney, bicycle and tricycle shall not be allowed); and,
c.
That the vehicle shall not be used for hire or as a public utility.
.
C.
LOANABLE AMOUNT
1.
The maximum loanable amount under the program is
PhP 400,000
.
2.
The amount of loan to be granted shall be the
value of the vehicle
or the
applicant’s maximum loanable amount
,
whichever is lower
. The computed maximum loanable amount of an applicant shall be indicated by the HRMD in the application form of the borrower.
2.1
The applicant’s maximum loanable amount shall be computed as follows:
Maximum Loanable Amount = (Net Pay before SVLF
-
P
6,000) X 60
but not more than
P
400,000
where, Net Pay Before SVLF = Average monthly net pay reflected in the applicant’s latest six (6) payslips including the month of processing of his/her application. (See
Annex A
for Sample Computation)
2.2
The value of the vehicle shall be the cash price of the vehicle if brand new; or
eighty percent (80%) of the appraised value
of the vehicle as determined by the NFA Motorpool/ reputable motor shop (for vehicles to be purchased in the provinces) if the vehicle is second hand.
D.
FUNDING
1.
The program shall be funded by the Special Vehicle Loan Fund (SVLF), the special fund set aside for the purpose.
2.
DTBFM - Cash Division shall monitor available funds for the month and shall inform HRMD, in writing, every 5th day of the month of the fund balance for allocation.
3.
Fund Allocation
3.1
The available fund balance of the SVLF for a given month shall be allocated as follows:
75%
for Primary Applicants (Officials who are availing of the vehicle loan program for the first time to acquire a vehicle.); and,
25%
for Secondary Applicants (Officials who have previously availed of the program.)
3.2
The unused portion of the allocated fund for each category shall be added to the following month’s allocation of the intended category.
E. PRIORITIZATION
An official intending to avail of the program shall file a Letter of Intent (Exhibit1) with the Human Resources Management Department (HRMD). This letter shall be used as basis by the HRMD in prioritizing applications for SVLF according to the available fund balance for allocation.
All applicants who submitted a Letter of Intent shall be categorized as follows:
a.
Primary Applicants - Officials who are availing of the vehicle loan program for the first time for acquisition of a vehicle or for re-financing existing car loans. Applications under this category shall be prioritized according to the following rank succession :
Prioriy 1-
Administrator
Prioriy 2-
Deputy Administrator
Prioriy 3-
Assistant Administrator
Prioriy 4-
Department Manager/ Regional Manager
Prioriy 5-
Acting Department Manager/ Acting Regional Manager
Prioriy 6-
Asst. Department Manager/ Assistant Regional Manager
Prioriy 7-
Acting Asst. Department Manager/ Acting Asst. Regional Manager
Prioriy 8-
Division Chiefs/ Provincial Managers/ Executive Assistant V/ holders of executive positions as of July 1, 1989 but whose positions were downgraded during the implementation of the Salary Standardization Law (SSL).
Applicants within the Primary Category and belonging to the same priority number shall be further prioritized as follows:
a.1
according to length of service in NFA; or,
a.2
all things equal, on a “first come, first served” basis.
b.
Secondary Applicants - Officials who have previously availed of the program. Applicants falling under this group shall be prioritized on a “first-come-first-served” basis, regardless of rank, by receipt date of HRMD of their Letter of Intent. Secondary applicants can file a Letter of Intent only after he/she has fully paid his/her previous loan.
F.
PROCESSING OF APPLICATIONS
1.
An application shall be considered for processing if its Letter of Intent is among the first five (5) in the priority waiting list of the HRMD.
2.
Upon notice from HRMD that his/her application is among the five (5) applications in the priority waiting list, the applicant who intends to pursue his/her vehicle loan shall accomplish an Application Form (
Exhibit 2
) and submit it to the HRMD.
3.
Applicants in HRMD’s priority waiting list shall be granted a
maximum of forty five (45) calendar days
only to acquire the vehicle of his/her choice. An applicant who does not acquire a vehicle within forty five (45) calendar days shall lose his/her slot. He/She may reapply but his/her application shall be considered a new application and shall be queued at the bottom of the category’s list of applicants.
4.
The 45-day prescribed period for pursuing an SVLF loan and acquiring a vehicle shall be strictly observed. Swapping of slots of applicants shall not be allowed under any circumstances.
5.
The applicant shall obtain fiduciary clearance from the Department for Accounting Services (DAS)/ F.O. Accounting Unit. It shall be the applicant’s responsibility to seek clearance from outside parties( eg. NFAEA, PCI Bank, MPCI, etc.) for the DAS to grant him/her the clearance from financial accountabilities.
6.
An application in the HRMD’s priority waiting list shall be evaluated by the HRMD, together with the following supporting documents to be submitted by the applicant:
a.
Copies of the applicant’s latest pay slips for the past six (6) months certified correct by the DAS/ Accounting Unit.;
b.
Valid Certificate of no pending administrative case from the Department for Legal Affairs (DLA) ;
c.
Cash Price Quotation for brand new vehicles; and,
d.
Proof of Indebtedness / Statement of Account (Car Financing Loan) for those intending to transfer existing mortgage.
Applicants intending to purchase second hand or used vehicles shall submit the following additional requirements:
e.
Motor pool Appraisal & Inspection Report & Optional Accessories (Exhibit 3) subscribed under oath by a GSD designated inspector for CO applicants;
f.
In the Field Offices, second hand vehicles to be purchased in the provinces shall be appraised by a reputable motor shop. The vehicle appraiser shall also certify under oath his/her appraisal report. The Inspection Report, with picture of the vehicle attached, shall be certified correct by the Regional Engineer and shall be submitted to CO-GSD for review and re-appraisal by a General Services Department (GSD) Motor Pool designated personnel and endorsed to the HRMD;
g.
LTO certified photocopy of the Certificate of Registration; and,
h.
Philippine National Police Clearance.
7.
The Benefits Unit - HRMD shall accept, screen and process all applications for the vehicle loan. It shall only accept applications with complete and properly accomplished supporting documents.
8.
Applicants with complete requirements shall be required by the HRMD to execute and/or prepare the following documents:
a.
Contract of Loan (
Exhibit 4
);
b.
Deed of Undertaking
(Exhibit 5
);
c.
Irrevocable Special Power of Attorney
(Exhibit 6)
; and,
d.
Disbursement voucher for loan applied for signed in the certified portion by the HRMD Department Manager.
9.
Safekeeping of documents pertinent to the loan or the vehicle ( e.g. LTO Certificate of Registration, Chattel Mortgage, Contract, etc.) shall be the responsibility of the HRMD.
G.
APPROVAL OF SVLF LOAN
All vehicle loan applications shall be approved by the Administrator upon the recommendation of the Deputy Administrator for Finance and Administration. The Assistant Administrator for Administration shall affix his/her initials under the name of the Deputy Administrator for Finance and Administration. In the absence of the Deputy Administrator for Finance and Administration for more than three (3) working days, the Deputy Administrator for Operations shall recommend the approval of the loan.
H.
RELEASE OF LOAN
1.
The voucher prepared by the applicant shall be processed by CIAD-DAS in accordance with the usual accounting/auditing procedures. The check representing the loan shall be payable to the seller or creditor in the case of re-financing, for the account of the applicant. If the applicant advanced payment as evidenced by a Deed of Sale, the check shall be payable to the applicant.
2.
The following documents, to be obtained by the borrower, shall be submitted to HRMD-Benefits Unit immediately, but not later than forty five (45) calendar days for second hand vehicles or one hundred twenty (120) calendar days for brand new vehicles after the release of the loan:
a.
Chattel Mortgage Contract (
Exhibit 7
) duly registered with the Registry of Deeds
b.
LTO Certificate of Registration (orig.), in the name of the official; & certified photocopy of Official Receipt
c.
Comprehensive Insurance Policy (orig.)
d.
Sales Invoice for brand new vehicles or Deed of Sale for second hand vehicles
e.
Mortgage Redemption Insurance Policy (Orig.) / Payment
3.
Upon receipt of the above documents, the HRMD shall furnish copies of the documents to the Enforcement, Investigation and Prosecution Department (EIPD) who shall validate the documents to determine their genuineness and due execution. The EIPD shall conduct its validation in accordance to item II.T of this SOP.
4.
Failure to submit any of the above documents shall subject the loan to 2% interest per month of the unpaid principal amount until the time the requirements are submitted. The computation of the amount of penalties shall be prorated by the number of days of delay.
5.
HRMD shall promptly notify the DAS / Regional Accountant / Provincial Accountant, as the case may be, about the non-submission of any document within the prescribed period provided in item II.H.2. HRMD shall assess the penalty and notify the applicant (
Exhibit 8
),cc. DAS/Regional or Provincial Accountant, that the amount shall be deducted from his salaries in accordance with existing rules on salary deductions of amounts due the Agency.
6.
Upon receipt of HRMD’s notification of the borrower’s non-submision, DAS / Regional Accountant / Provincial Accountant shall effect deduction from the borrower’s salaries and correspondingly said collection shall be treated as Miscellaneous Income of the agency. Failure on the part of the HRMD personnel to notify the borrower of his/her penalty or DAS processor / Regional / Provincial Accountant to deduct the said amount shall subject him/her to proper administrative sanctions.
7.
If the borrower fails to submit the documents after the expiration of the 45-day or 120-day period, whichever is applicable, HRMD shall submit a report to the Office of the Deputy Administrator for Finance and Administration recommending the conduct of an investigation on such failure of the borrower to submit the required documents. If a borrower is found to have used the SVLF for any purpose other than that for which it is intended, the borrower shall be required to restitute the full amount of the loan including interests and penalties, without prejudice to the filing of appropriate administrative and/or criminal case against the borrower.
I.
IRREVOCABLE SPECIAL POWER OF ATTORNEY (SPA)
1.
The borrower shall be made to execute an Irrevocable Special Power of Attorney (Exhibit 6) in favor of the NFA. The SPA shall authorize the NFA Administrator or his duly authorized representative to repossess the SVLF subject vehicle of defaulting borrower after due notice.
2.
A separate guidelines on the repossession and disposition of SVLF vehicle shall
govern this activity.
J.
CHATTEL MORTGAGE
1.
All applicants shall execute a Chattel Mortgage Contract (Exhibit 7) over the vehicle in favor of NFA and all expenses relative thereto shall be at the expense of the applicant. Registration of the mortgage shall be undertaken by the applicant, under supervision of HRMD.
2.
The LTO Certificate of Registration shall be marked “encumbered” which means that said vehicle being registered is under mortgage with the NFA.
3. Upon full payment of the loan, the official may request from DAS a certificate of full payment. The original copy of the LTO Certificate of Registration shall be released to the official by the HRMD only upon the presentation of the certificate of full payment. The official shall be responsible in facilitating the cancellation the Chattel Mortgage on the vehicle.
K.
REGISTRATION
1.
The official shall register the vehicle with the Land Transportation Office (LTO) annually in his/her name. All fees shall be paid by him/ her.
2.
The original copy of the vehicle’s LTO registration shall be in the custody of the HRMD. A certification signed by the HRMD Department Manager (
Exhibit 9
) may be issued to the borrower upon request to certify that the original copy of the LTO Certificate of Registration is in the custody of NFA.
3.
In no case shall HRMD be allowed to issue the original Registration Certificate to anybody, unless the borrower submits proof of full payment issued by DAS.
L.
MORTGAGE REDEMPTION INSURANCE
Through the HRMD, the applicant shall also secure a Mortgage Redemption Insurance (MRI) in favor of NFA on a yearly basis against the cost of vehicle financed by NFA. The HRMD shall accredit an insurance company or companies which shall cover the MRI of SVLF vehicle loan amortization for Central and field office officials. The MRI annual premium shall be paid through the HRMD.
M.
COMPREHENSIVE INSURANCE COVERAGE
1.
For the duration of the loan agreement, the applicant shall secure a comprehensive motor car insurance to be endorsed in favor of the NFA up to the extent of loan availed, from a reputable insurance company. The insurance policy shall be submitted within 45 days ( for second hand vehicles) or 120 days (for brand new vehicles with an initial coverage), from the date of release of the loan. Premiums shall be shouldered by the applicant and paid directly to the insurance company.
2.
A month prior to the expiration of each vehicle insurance coverage, HRMD- BENEFITS Unit shall notify the borrower, in writing, about the need to renew the insurance.
3.
The original copy of the policy or Proof of Renewal of insurance shall be submitted to HRMD- BENEFITS Unit within five (5) days from expiration,
otherwise the official’s monthly Representation and Transportation Allowance (RATA) shall be withheld until he/she complies with this requirement
.
The HRMD shall notify the DAS/ Regional or Provincial Accountant to withhold the RATA of the official who fails to comply with this requirement. Likewise, the HRMD shall notify the DAS/ Regional or Provincial Accountant once the official complies and restore the official’s collection of his/her RATA.
4.
HRMD-BENEFITS Unit shall safekeep the insurance policy and monitor the expiration date of all motor vehicle insurance based on effectivity date of the policy and on the premium bill
.
The monthly Expiry Index Card (
Exhibit 10
) shall still be maintained by the Benefits Unit to facilitate monitoring.
N.
TERMS AND CONDITIONS
1.
The vehicle loan shall be free of interest.
2.
The loan shall be payable in five (5) years or in sixty (60) equal monthly installments. However, loan payment amortization of an officer who is due to retire from the NFA in less than five years shall be adjusted to the number of years remaining in his/her service with the agency.
3.
In no case shall the amortization period of five years be extended.
4.
All expenses relative to the application of the loan and acquisition of the vehicle shall be shouldered by the applicant (e.g. notarial fee, registration fee, etc.).
O.
MODE OF PAYMENT/REMITTANCE TO CO
1.
Henceforth, SVLF loans of officials of the Central Office and NFA field offices
shall be paid through salary deduction
. Loan payments shall be made through compulsory payroll deductions from the borrower’s salary and allowances for the month. The first instalment payment shall automatically be deducted on the month following the release of the loan.
2.
Borrowers already paying through post dated checks may shift to pay through salary deduction. In this case, the remaining post dated checks that he/she issued shall be cancelled and returned to him/her by the NFA.
3.
Corollary to the above, contracts of officials shifting from post dated checks payment to salary deduction scheme shall be amended to reflect the new payment scheme.
4.
Failure on the part of the DAS processor /Regional / Provincial Accountant to deduct the said amount or the responsible DTBFM Collecting Officer to deposit payment of post dated check on the date indicated in the check, shall subject him/her to proper administrative sanctions.
5.
The Field Office shall remit payments collected for SVLF to the Central Office through the bank account of the SVLF.
The FO shall also inform the DAS, cc. DTBFM, through wire, of the said remittance and its particulars.
P.
DEFAULT IN PAYMENT
1.
If the official defaulted in paying at least one monthly amortization because he/she is on Leave Without Pay/ serving an Order of Preventive Suspension or any similar case/s, payment for the amortization shall be collected from his / her other monetary claims from the agency such as salary differential, bonuses, etc. If this still does not suffice, the DAS ( or DTBFM if official is still covered by check payment scheme)/ Regional Accountant/ Provincial Accountant shall send the official a 1st Demand Notice (
Exhibit 11
), cc.: HRMD and DLA, within two working days after processing of the payroll or discovery of default.
The 1st Demand Notice, which shall be sent through the fastest means available
(eg. personal delivery or registered mail), shall inform the defaulting borrower that he/she is given fifteen (15) working days grace period to settle the monthly amortization.
Likewise, for officials with Loan Contracts under check payment scheme, if check issued for the amortization due has no sufficient fund, DTBFM shall immediately notify the official (Exhibit 11) of the default in payment.
2.
If, after fifteen (15) working days, said official still does not settle his/her unpaid amortization
, the DAS/Regional or Provincial Accountant ( or DTBFM) C.O. shall send the official a
2nd Demand Notice
,
Exhibit 12
, [cc: Benefits Unit-HRMD (C.O.) and DLA ].
The 2nd Demand Notice shall demand immediate payment of the unpaid amortization within another fifteen (15) working days from its receipt by the borrower.
Such notice shall state that failure of the borrower to settle his/her total unpaid monthly amortization within the said period shall render his/her outstanding loan balance, including interests and penalties, due and demandable.
3.
If the borrower still fails to pay within the said period, DAS/RO/PO Accountant/DTBFM shall then inform DLA of such failure by the borrower within five (5) working days from the expiration of the 2nd 15-day grace period.
4.
DLA shall send a Final Demand Notice (
Exhibit 14
) to the defaulting borrower, cc. DAS/RO/PO Accountant/DTBFM.
The Final Demand Notice shall demand payment of the total outstanding balance of his/her SVLF loan within fifteen (15) working days of his/her receipt, plus 2% interest per month and 2% penalty per month from date of default of the outstanding amortization.
Q.
REPOSSESSION OF SVLF VEHICLE
1.
If at the end of the 15-day period prescribed in the Final Demand Notice, the borrower still has not paid his/her obligations or fails to satisfy the terms of the final demand notice,
the NFA, through the DLA shall institute repossession procedures of the subject vehicle. This is without prejudice to the filing of appropriate administrative or criminal case against the defaulting borrower.
2.
HRMD shall turnover the account and records of the defaulting borrower to the DLA (
Exhibit 15
), upon a written request from DLA, prior to initiation of repossession proceedings and filing of appropriate case against the defaulting borrower.
3.
Repossession of vehicles of defaulting SVLF borrowers shall follow the Guidelines on Repossession and Disposition of SVLF Vehicles.
R.
SEPARATION OF OFFICIAL FROM NFA
1.
In case of retirement, resignation, transfer, or any other manner of separation of the official from NFA service prior to full payment of the loan, the balance of the loan shall become immediately due and demandable.
2.
Full settlement may be made in the following manner:
a.
Cash payment prior to issuance of Clearance.
b.
To be deducted from claims, gratuity pay or terminal pay, due the official as per Deed of Undertaking provided that there are no constraints in the official’s claim for gratuity/terminal pay which are of his making or fault.
c.
In case the official will be constrained to collect his claims from NFA for any reason (i.e. those with accountability shortage; those with pending administrative case) full payment in cash shall be compelled. Otherwise, the vehicle shall be repossessed or foreclosed without prejudice to the filing of administrative case against the official for violation of the terms and conditions of this SOP and/or criminal case for Estafa.
S.
RENEWAL OF LOAN
1.
An officer is eligible to re-avail of the SVLF only after five years from last entitlement, regardless of whether he/she has paid his/her previous loan earlier than the specified period
.
Moreover, the official must not have been delinquent in payment of his/her SVLF loan amortization or he/she shall be ineligible for renewal as provided in item II.A.6.
2.
The approval of loan renewal shall be subject to availability of funds and order of priority in granting of vehicle loan.
T.
VALIDATION OF DOCUMENTS
1.
HRMD shall furnish the EIPD/RO or PO Investigator copies of all supporting documents
submitted by the SVLF borrowers upon receipt of said documents.
2.
The EIPD /RO or PO Investigator shall keep a record for each borrower and countercheck all the documents submitted to determine their genuineness and due execution. Moreover, borrowers who have not submitted documents after the prescribed period set under item II.H.2 shall be subject to investigation by the EIPD /RO or PO Investigator upon notice by the HRMD.
3.
EIPD /RO or PO Investigator shall conduct an inspection of the SVLF subject vehicle and the circumstances relative to its ownership or any matter, to protect the interest of the NFA.
4.
The EIPD shall render a written report to HRMD if the SVLF account is found to be not in order or if documents are spurious, for action of the HRMD and DLA. For Field Office borrowers, the RO or PO Investigator shall submit its report to the EIPD for the latter’s endorsement to the HRMD and DLA.
5.
The DLA shall immediately institute repossession proceedings for vehicles with spurious documents without prejudice to the filing of appropriate legal action against the borrower.
U.
SANCTIONS
1.
Failure of the DAS/DTBFM/Regional Accountant/Provincial accountant to notify the official of his/her default in payment and the DLA/HRMD shall subject the DAS/DTBFM responsible personnel or the RO/PO Accountant to proper administrative sanctions.
2.
The NFA management, through DLA, shall file an administrative case and/or criminal case against the borrower for violation of the terms and conditions of the SVLF Contract and this SOP.
III. RESPONSIBILITIES
A.
APPLICANT
1.
Submits Letter of Intent to HRMD-Personnel Benefits Unit.
2.
Submits duly accomplished application form, upon notice of HRMD that he/she is in the priority waiting list, and voucher together with other requirements and forwards same to HRMD-PBU for processing.
3.
Executes the SVLF Loan Contract, Chattel Mortgage, Irrevocable Special Power of Attorney and the Deed of Undertaking.
4.
For acquisition of second hand vehicles, requests NFA Motorpool to inspect and appraise the car. For field executives who will buy second hand cars in the provinces, requests a reputable motor shop to appraise the car.
5.
Secures a Mortgage Redemption Insurance from HRMD and ensure its renewal until the loan’s full payment.
6.
Submits additional requirements (ie. Certificate of Registration, Comprehensive Insurance Policy, etc.) to HRMD within forty five (45) days/ one hundred twenty (120) days after release of the loan.
7.
Pays his/her monthly amortization regularly.
8.
Submits renewal of LTO registration and vehicle insurance policy to HRMD.
9.
Upon full payment of loan, secures from DAS a certificate of full payment.
.
B.
HUMAN RESOURCE MANAGEMENT DEPARTMENT (HRMD)
1.
Issues application form for vehicle loan to applicants.
2.
Accepts and screens all vehicle loan applications with complete documents/ requirements.
3.
Prioritizes applicants to the program and comes up with a priority waiting list.
4.
Evaluates loan applied for vis-a-vis the value of the vehicle to be purchased and the applicant’s maximum loanable amount to be computed using the formula as provided for in item II.C.
5.
Processes applications and recommends approval to the Asst. Administrator for Administration and Deputy Administrator for Finance and Administration.
6.
Notifies the applicant of the approval of his vehicle loan application and ensures that necessary requirements are submitted promptly.
7.
Accredits insurance company/s to undertake Mortgage Redemption Insurance for SVLF vehicles and borrowers.
8.
Notifies DAS/ Regional Accountant/ Provincial Accountant of non-submission of necessary requirements and the corresponding computed penalties .
9.
Assesses the penalty and notifies the applicant (Exhibit 8),cc. DAS/Regional or Provincial Accountant, of the amount to be deducted from his salaries in accordance for non-submission of necessary documentary requirements.
10.
Submits a report to the Office of the Deputy Administrator for Finance and Administration recommending the conduct of an investigation if the borrower fails to submit the documents in item H.2 after the expiration of the 45-day or 120-day period, whichever is applicable.
11.
Furnishes the EIPD/RO or PO Investigator copies of all supporting documents
submitted by the SVLF borrowers upon receipt of said documents.
12.
Safe keeps original copies of LTO Certificate of Registration, and copies of Insurance Policy Contracts (Comprehensive Motor Vehicle Insurance and Mortgage Redemption Insurance) until the loan has been fully paid.
13.
If requested, issues certification that the original copy of the LTO Registration Certificate is in the custody of NFA.
14.
Monitors the expiration of vehicle insurance policies and reminds the official to renew the insurance policy and facilitates their renewal.
15.
In case of default of the official in the payment of monthly amortization (beyond the grace periods), endorses the borrower’s account/records to DLA for appropriate action, upon request of DLA.
16.
Monitors the strict implementation of the program.
17.
Maintains an SVLF Ledger to monitor available funds for the month.
18.
Certifies to the completeness and authenticity of the submitted documents.
C.
GENERAL SERVICES DEPARTMENT (GSD)
1.
Conducts inspection and submits report to HRMD regarding appraisal and physical condition of second hand vehicles to be purchased under the program.
2.
Reviews Inspection Report accomplished by a reputable motor shop at the field office and conduct re-appraisal of vehicle to be acquired by field office officials, if necessary.
D.
REGIONAL ENGINEER / PROVINCIAL ENGINEER
Certifies to the correctness of the Inspection Report prepared by a reputable motor shop in their area.
E.
REGIONAL/PROVINCIAL INVESTIGATOR
Serves the Demand Notices for Payment and Final Damand Notice to defaulting borrowers based in the field offices.
F.
REGIONAL/ PROVINCIAL ACCOUNTANT
1.
Deducts from the borrower’s salaries penalty for late submission of documents, ie. LTO Registration.
2.
Effects monthly deduction of SVLF amortization.
3.
In case of default in payment, sends the 1st, 2nd and final demand notices to CO officials , cc: HRMD/ DLA.
4.
Notifies DLA, cc: HRMD, DAS, of failure to pay by defaulting borrower after expiration of the 2nd demand notice.
5.
Remits to Central Office payments for SVLF and its particulars.
G.
DEPARTMENT FOR LEGAL AFFAIRS (DLA)
1.
Issues certificate of no pending administrative case filed against the applicant.
2.
Sends the final demand notice to a defaulting borrower.
3.
Institutes repossession proceedings in case of default in payment by an official if he/she fails to pay the outstanding balance with interests and penalties after the lapse of the period stated in the demand notice.
4.
Files appropriate administrative and or criminal case against defaulting borrowers and /or NFA personnel and official for failure to implement the provisions of the SOP.
5.
Advises on legal matters regarding implementation of the program.
H.
DEPARTMENT FOR ACCOUNTING SERVICES (DAS)
1.
Certifies to the correctness of the earnings of the applicant.
2.
Issues fiduciary clearance to applicants.
3.
Processes the disbursement voucher corresponding to the loan in accordance with the usual rules and procedures of processing.
4.
Deducts from the borrower’s salaries penalty for late submission of documents, i.e. LTO Registration.
5.
Effects monthly deduction for SVLF amortization.
6.
In case of default in payment, sends the 1st and 2nd demand notices to CO officials , cc: HRMD/ DLA.
7.
Notifies DLA, cc: HRMD, of failure to pay by defaulting borrower after expiration of the 2nd demand notice.
8.
Monitors fund utilization.
9.
Certifies to the record of outstanding loans and amount of arrears of the applicant, if any.
10.
Maintains an updated ledger/record for each official.
11.
Sees to it that all payments are promptly recorded in the books.
I.
DEPARTMENT FOR TREASURY, BUDGET AND FUND MANAGEMENT (DTBFM)
1.
Releases checks for the vehicle loans and notifies DAS-CIAD and HRMD - Benefits Unit.
2.
In case of default in check payment, sends the 1st and 2nd demand notices to CO officials , cc: HRMD/ DLA.
3.
Notifies DLA, cc: HRMD, of failure to pay by defaulting borrower after expiration of the 2nd demand notice.
4.
Monitors remittance of payments from the Field Offices and total balance of the fund.
J.
ENFORCEMENT, INVESTIGATION AND PROSECUTION DEPARTMENT
Validates supporting documents of SVLF subject vehicle and renders report
to HRMD and DLA for documents found spurious.
K.
REGIONAL / PROVINCIAL INVESTIGATOR
Validates supporting documents of SVLF subject vehicle and renders report
to HRMD and DLA for documents found spurious.
L.
ASST. ADMINISTRATOR FOR ADMINISTRATION
Affixes initials on the recommending approval portion of the application form.
M.
DEPUTY ADMINISTRATOR FOR FINANCE AND ADMINISTRATION
Recommends approval of the vehicle loan.
N.
ADMINISTRATOR
Approves/disapproves application for vehicle loan.
The foregoing supersedes SOP No HR-PB29 made effective on April 7, 1997 and its amendments/addenda.
All rulings and /or issuance inconsistent herewith are hereby superseded
.
III. RESPONSIBILITIES
IV. FLOW CHART
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EXHIBITS
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