SOP Library
SOP NO:
HR-PB11
(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 Calamity Loan Assistance Program
Date Approved/Issued:
02/15/1988
Date Effective:
02/15/1988
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. PURPOSE
1. The NFA Calamity Loan Assistance shall refer to the assistance in the form of cash extended by NFA to regular and casual employees including NFA-COA personnel who have rendered at least six (6) months of continuous service with NFA and are victims of natural calamities such as flood, typhoon, earthquake, volcanic eruption, fire and the like.
2. The loan is intended to support the financial needs of employees whose properties have been damaged as well as help them and their immediate families other emergency cases incidentally brought about by these natural disasters.
B. AMOUNT OF CALAMITY LOAN
1. The amount of calamity loan that may be granted to/availed of by any qualified or by any qualified employee shall be:
Amount
a) Officials/Executives P5,000.00
b) Rank and File 3,000.00
2. For NFA-COA personnel, however, the amount of loan that could be availed of shall be proportionate to the balance of their cash gift and housing allowance but not exceeding the P5,000.00 and P3,000.00 ceilings (refer to II.K for computation).
C. ENTITLEMENT TO CALAMITY LOAN
The following are covered by the program:
1. Employees who are residents in the calamity stricken.
2. Non-residents but with members of his immediate family in the stricken area.
3. Employees who are non-resident but with property in the affected area. The property shall be in his name or his imemdiate family.
Immediate family shall include:
a) For married employees - spouse: children not over 21 years old, unemployed and unmarried: mother, father wholly dependent on the employee for support.
b) For single employees - mother: father: single brother/sister not more than 21 years old,
unemployed and wholly dependent on the employee for support.
D. PROGRAM COVERAGE
1. Areas declared under a state of calamity per Presidential Proclamation.
2. For isolated cases like fire or any other natural disasters wherein the employees are
directly affected.
E. PERIOD OF AVAILMENT
1. All applications for calamity loan shall be filed within forty five (45) days from the issuance
of Presidential Proclamation on the calamity areas concerned.
F. APPLICATION
1, The Calamity Loan Application Form (Exhibit 1) shall be properly accomplished in three (3)
copies by the employee-borrower.
Copy distribution:
Copy 1 - Voucher
2 - Personnel Benefits Division - HRMD (C.O.)/Administrative and General
Services Section (F.O.)
3 - DAB (C.O.)/Finance Section (F.O.)
2. The date and the Presidential Proclamation No. shall be indicated in the application form.
G. APPROVAL
1. All
calamity loan application
s at C.O. shall be noted by the Head of Office and recommended by the Chief, Compensation and Benefits Division/HRMD. Approving authority shall be the Director, HRMD.
2. For Field Office, applications shall be approved by the Provincial Manager (for P.O.) or the Regional Director (for R.O.) upon recommendation by the Administrative Officer/Assistant.
H. DOCUMENTARY REQUIREMENTS
The
calamity loan application
shall be supported by the following documents:
1. Resident in the calamity stricken area
a) Certification of residency and property damage (specifying what was damaged and extent of damage) duly signed by the barangay captan.
b) Xerox copy of property tax declaration/torrens title for areas covered by agricultural/livestock damage.
2. Non-resident but with property in the calamity area
a) Certificate of property damage specifying what was damaged and the extent of damage brought by the calamity duly signed by the barangay captain.
b) Xerox copy of property tax declaration/torrens title for areas covered by agricultural/livestock damage.
3. Non-resident but with immediate family residing in the calamity area.
a) Certificate of residency and property damage (specifying what was damaged and extent of damage) duly signed by the barangay capatain.
b) Xerox copy of property tax declaration/torrens title for areas covered by agricultural/livestock damage.
c) Affidavit of support duly notarized.
However, if this is not possible, the resigning employee shall be required to pay in full the amount of the remaining loan balance, or payments for this shall be deducted from the payroll of the guarantor.
5. A
list of deductions
shall be prepared by DAB-CPD and submitted to MSD-EDP before the first working day of the current month to effect deduciton from the borrower's salary/wages every month.
I. GUARANTOR
1. A guarantor for the loan shall be required, who must be a regular employee preferably belonging to the same office/branch.
2. Loan payments due shall be deducted immediately from the Guarantor's payroll in the event the
employee-borrower is unable to pay for any reasons.
J. VERIFICATION
1. The granting of calamity loan shall be subject to thorough investigation and verification if management deems it necessary.
For this purpose, the Regional/Provincial Investigator shall be requested by HRMD to conduct an assessment/ocular inspection of the damages reported, the result of which shall be noted by the concerned Provincial Manager of the place inspected.
2. Any misrepresentation made on the application for calamity loan shall make the loan (if already granted) due and demandable, without prejudice to administrative charges that may be filed against the applicant.
K. MONTHLY AMORTIZATION/PAYMENT
1. No interests shall be charged against calamity loans.
2. The loan shall be paid within two (2) years in twenty four equal monthly installments.
3. Payments shall be make thru compulsory payroll deduction for NFA employee-borrower starting on the succeeding month the loan was availed.
3.1 For NFA-COA personnel, payments shall be deducted from the P500/mo. cash equivalent of the Kadiwa gift certificate and the housing allowance of P1,250/month for Regional Auditors and P500/month for Provincial Auditors.
3.2 In case the balance of the cash gift and housing allowance of NFA-COA personnel is not sufficient to pay for the monthly amortization, the following computation shall apply:
Loanable amount = balance of cash gift + housing allowance x 24
3.3 NFA-COA personnel having no more balance in their cash gift and housing allowance can no longer avail of the program except if they issue post dated checks to cover all the monthly amortizations.
4. In case of the borrower's separation from the service, the remaining loan balance shall be paid thru deduction from the benefits due the borrower.
I. ACCOUNTING TREATMENT
1. Payment of calamity loan to employee-borrower
DR: Receivables Miscellaneous xxx
Special Loan Assistance (SLA)
CR: Vouchers Payable xxx
DR: Vouchers Payable xxx
CR: Cash with PNB xxx
2. Payment of calamity loan by employee-borrower thru:
2.1 Payroll deduction/receivables deducted from benefits due the borrower
DR: Personnel Services xxx
CR: Trust Liabilities xxx
CR: Receivables - Misc.SLA xxx
CR: VP/Cash with PNB xxx
2.2 Cashier
DR: Cashier with Collecting
Officer xxx
CR: Receivables-Misc.-SLA xxx
2.3 Deduction from cash gift and housing allowance (NFA-COA personnel)
DR: Misc.-Personnel Services-
Cash Gift xxx
DR: Other Services-
Housing Allowance xxx
CR: Receivables-Misc.-SLA xxx
III. RESPONSIBILITIES
1. EMPLOYEE-BORROWER
a) Accomplishes calamity loan assistance form in three (3) copies together with the corresponding voucher.
b) Secure required supporting documents and attaches same to the application.
c) Secures signature/approval of a regular employee to act as a guarantor.
d) Forwards loan application to HRMD/Adm. Officer for processing.
2. HRMD-PBD/Provincial/Regional Administrative Officer
a) Evaluates and processes loan applications
b) Recommends approval and forwards loan application to the HRMD Director/Regional
Director/Provincial Manager for approval.
c) Maintains updated files of employees with approved calamity loan.
d) Maintains copies of Presidential Proclamation.
3. HRMD Director/Regional Director/Provincial Manager
a) Approves calamity loan applications.
b) Authorizes the conduct of investigation/verification with regards to calamity loan
application, if necessary.
4. DAB-CPD/Finance Section (F.O.)
a) Processess voucher corresponding to the calamity loan application.
b) Effects deductions from the payroll of borrowers.
IV. FLOW CHART
Top Page
EXHIBITS
Calamity Loan Application
List of Deductions