SOP Library
SOP NO:
FS-GP15
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
Financial Services (FS)
Activity:
General Accounting Plan (FS-GP)
Title:
Revised SOP on the Collection of Payment of Stocks/MTS Shortages of
Accountable Officers
Date Approved/Issued:
10/22/1997
Date Effective:
10/23/1997
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. GENERAL POLICIES
1.
COA Liquidation Report
s covering accountabilities with shortages as examined by the COA Auditors will only be considered final after the grant of TOLA, as confirmed by the NFA-COA Regional Auditor.
2. Shortages of 1000 Net kilograms (Nkg) or less shall automatically be considered offset by
tolerable allowance
provided such shortage is not more than 1% of the quantity handled and period of accountability is not less than one (1) year on a per variety basis.
3. The Internal Audit Services (IAS) shall forward to the COA-NFA Regional Auditor the
TOLA Computation Report
for verification and confirmation which shall be the basis for the issuance of the Demand Letter by COA to the Accountable Officer.
4. Said demand letter shall be issued by COA to the Accountable Officer within two (2)
days
after their confirmation of the
TOLA Computation Report
.
5. The concerned Provincial Manager shall immediately recommend to the Internal Audit Services the filing of appropriate charges pursuant to Section B.3, item No. 1 of this SOP should the accountable officer fail to pay his/her
stock shortage
s within ten (10)
days
from receipt of the Demand Letter.
B. SPECIFIC POLICIES
B.1 Overview on Flow of Documents for the Determination of the Final
Stock Shortage
of an Accountable Officer
1. The NFA Provincial Manager shall, within two (2)
days
from receipt of his copy of the COA letter requesting the Accountable Officer to submit written explanation on how is
stock shortage
s were incurred, direct the Accountable Officer to comply through a
Memorandum
(Form CSS-1-Exhibit 1) cc: IAS/RM
2. The
Accountable Officer
shall, within the period prescribed by COA, submit a
written explanation
(Form CSS-2-refer to Exhibit 2) to the COA-NFA Provincial Auditor, cc: the RM/IAS/AO, how the shortages were incurred. He/she shall attach all the documents necessary to support his explanation. Failure to submit Form
CSS-2
within the prescribed period shall be deemed a waiver of the opportunity to explain. Thereafter,
Tolerable Allowance
shall be applied to his
stock shortage
s.
3. The COA Auditor shall evaluate and comment on the submitted explanation and forward the papers (COA Liquidation with the explanation of the
Accountable Officer
and his comment thereon for TA computation) to the COA-NFA Regional Auditor for processing, evaluation and appropriate action. The COA-NFA Regional Auditor shall forward the papers to IAS for their appropriate action and
TOLA
computation.
4. IAS shall, within ten (10)
days
from receipt of the
COA Liquidation Report
from the NFA-COA Regional Auditor, evaluate the
accountable officer
's explanation, compute the
TOLA
, determine the shortages after
TOLA
in terms of quantity and the corresponding equivalent amount in pesos of the shortages. Valuation shall be computed based on the replacement cost at the time of the last stock transaction., IAS shall forward the
TOLA
Computation Report
(Form
CSS-3
refer to Exhibit 3) to the COA-NFA Central Office) for verification and confirmation.
5. Upon receipt of the accomplished Form
CSS-3
, the COA-NFA Regional Auditor shall check
TOLA
computation, determine final shortage after TA, issue a demand letter for the payment of shortages to the
Accountable Officer
cc: NFA Regional Manager who shall immediately send a copy of the verified
TOLA
Computation Report
and COA Demand Letter to the concerned Provincial Manager.
7. The NFA Provincial Manager shall, within two (2)
days
from receipt of his copy of the verified
TOLA
Computation Report
and Demand Letter, issue a corresponding NFA
Demand Letter
(Form CSS-4-refer to Exhibit 4) to the concerned
Accountable Officer
cc: the NFA Regional Manager, Administrator's Office, Internal Audit Services Department, SPO and Provincial Office Accounting Unit. The Provincial Manager shall ensure that the
Demand Letter
is received and acknowledged by the
Accountable Officer
.
8. The Provincial Accountant shall make the necessary accounting entries in connection with the shortage/overage of the concerned
accountable officer
.
B.2 COLLECTION OF PAYMENT
1. The
Accountable Officer
shall pay his stock/
MTS
shortages in full within ten (10)
days
from receipt of
Demand Letter
. Payment of
stock shortage
s may be in cash and/or in kind. Payment of
MTS
shortages shall be in cash computed based on replacement cost at the time of the last
MTS
transaction.
1.1 Payment in-kind shall be in the form of stocks (palay, rice, corn, or combination) which must conform to NFA Procurement Standard per SOP No. GM-PR16 effective July 3, 1995.
1.2 The quantity of PIK to be delivered shall be determined by dividing the peso value of shortage (which is based on replacement cost) by the NFA support and/or selling price of the stock at the time of delivery/payment at the designated NFA Warehouse.
2. The NFA Provincial Manager shall monitor the payment of the
Accountable Officer
's
stock shortage
s and shall submit a Monthly
Provincial Summary Report of Collection of Payment of
Stock Shortage
s
(Form CSS-5 - Exhibit 5) to the SPO on or before the tenth (10th) day of the following month.
3. The SPO shall then submit a National
Consolidated Monthly Report of Collection of Payment of
Stock Shortage
s
(Form CSS 6-Exhibit 6) to the Administrator cc: the Deputy Administrator for Finance and Administration not later than the 25th day of the same month.
B.3 FILING OF CHARGES
1. The Provincial Manager shall, within three (3)
days
, inform through the fastest means the Internal Audit Services cc: SPO and AO regarding the failure of the
Accountable Officer
to settle his shortages using
Form CSS-7
(refer to Exhibit 7) if no payment is made within ten (10)
days
.
2. The Internal Audit Services shall acknowledge through the fastest means receipt of
Form CSS 7
within two (2)
days
and shall prepare the
Formal Charge
(Form CSS-8 refer to Exhibit 8) cc: Civil Service Commission, within the same period. IAS shall submit the
Formal Charge
to the Administrator through the Special Assistant for approval.
4. The Administrator's Office, upon receipt of the Formal Charge, shall act on it and forward the signed/approved
Formal Charge
to DLA for docketing and prosecution.
5. The Administrator shall designate hearing officers who shall hear and evaluate all cases relative to
stock shortage
s.
6. The hearing officer shall decide on cases within thirty (30)
days
from the date these are submitted for resolution/decision.
(Refer to
Annex A
for Data Flow Diagram)
B.4 SPECIAL PROVISIONS
1. Payment within the specified period shall be without prejudice to the filing of
appropriate administrative/criminal/civil charges against the concerned
Accountable Officer
.
2. Payment by installment schemes shall no longer be allowed effective on the issuance date of this SOP. However,
Accountable Officer
s with existing approved payment schemes of their shortages prior to the date of effectivity of this SOP shall be allowed to continue payment following their approved payment scheme.
3. Accounting treatment/entries for this SOP shall be issued by the Department of Accounting Services (DAS) in a separate memorandum.
4. Violation of the provisions of this SOP shall subject the violator to penalties provided under applicable Civil Service Rules and Regulations.
III. RESPONSIBILITIES
IV. FLOW CHART
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EXHIBITS
DFD-Collection of Stock Shortages of
Accountable Officers
Form CSS-1
CSS-2
CSS-3
CSS-4
CSS-7
CCS-8
CCS-5
CCS-6