SOP Library
SOP NO:
GM-GO18
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Title:
Implementing Guidelines on the Procurement and Distribution of Fertilizer under the GMA Rice Program
Date Approved/Issued:
07/30/2003
Date Effective:
05/01/2003
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
GENERAL POLICIES
1.
DA shall transfer to NFA Four Hundred Thirty Two Million Pesos (P432,000,000.00) for this program which will be utilized for the procurement of fertilizer, operating, administrative and other related expenditures that shall be incurred in the implementation of the program.
2.
DA through FPA, PhilRice, and ATI shall train concerned NFA personnel on the proper handling and storage of fertilizer before the implementation of the program.
3.
NFA shall procure fertilizer only from DA-FPA licensed fertilizer suppliers.
4.
Qualified farmer-beneficiaries (FBs) of this program shall be given support of 2 bags of fertilizer per hectare up to a maximum of 2 hectares per farmer, on a 50:50 scheme (50% equity from farmers and 50% subsidy from the government). The authorized 50% subsidy however should not exceed P500 per hectare. The subsidy therefore is either 50% of the value of the 2 bags of fertilizer or
P
500.00 per hectare whichever is lower. Any amount in excess of
P
500 / hectare shall be paid in cash by the FB to NFA before issuance of fertilizer.
Example A - where the cost of fertilizer is
P
500 or less / bag
P
475.00 cost of fertilizer / bag
X 2 no. of bags to be purchased / ha.
------------
P
950.00 cost of 2 bags of fertilizer
X .50 50:50 scheme
-----------
P
475.00
amount to be paid by the FB / ha.
Example B - where the cost of fertilizer is more than
P
500 / bag
P
550.00 cost of fertilizer / bag
X 2 no. of bags to be purchased / ha.
------------
P
1,100.00 cost of 2 bags of fertilizer
- 500.00 maximum amount of subsidy / 2 bags of fertilizer
-----------
P
600.00 amount to be paid by the FB / ha.
5.
NFA shall distribute fertilizers only to farmers who meet the following qualifications:
a. They should be included in the updated masterlist of farmers that will be provided by DA-RFU/LGU
or
they should have a certification saying that they are palay farmers of fully irrigated land in their localities signed by the Municipal Agricultural Officer (MAO) / Agricultural Technician (AT).
b. They should not have availed of the DA-NFA-PHILRICE certified and hybrid seeds subsidy program the next two cropping seasons (Wet Season May-October 2003 and Dry Season November 2003-April 2004).
c. They should have no outstanding loans under the Plant-Now-Pay-Later (PNPL) certified seeds distribution scheme.
d. They should have bought certified seeds (inbred and hybrid) at full cost this 2003-2004 Wet and Dry Cropping Seasons and should be able to present an Official Receipt (OR) as proof of their purchase. During the Dry Season (November 2003 - April 2004) these farmers must also present a soil analysis certified by BSWM/DA-RFU/LGU in addition to the OR. There shall be no need to present a certificate of soil analysis during May - October 2003 Wet Cropping Season.
6.
Farmers who have availed of other location specific intervention (e.g. Zinc, in lieu of the CS 50:50 scheme) are also entitled to avail of the fertilizer support, subject also to the above qualifications, but up to one hectare per farmer only.
7.
Availment of fertilizer support shall be on a first-come-first-serve basis.
8.
Only urea fertilizer shall be distributed during the wet cropping season (May-Oct. 2003).
9.
Farmers who have availed of the fertilizer support during the wet cropping season (May-October 2003) shall not be entitled to avail during the dry cropping season (November 2003-April 2004)
10.
NFA’s selling price of fertilizer to FBs shall be based on NFA Fertilizer / buying price per bag (exclusive of transport / handling / storage and other incidental expenses).
III. SPECIFIC POLICIES
A. Pre-Implementation
1.
DA, through FPA, PHILRICE and ATI, shall brief concerned NFA personnel on the proper handling, storage and specification of fertilizer.
2.
NFA Provincial Offices, together with the DA and LGUs shall conduct advocacy campaign and other information dissemination strategies for a successfull implementation of the program. NFA Provincial Offices shall coordinate closely with DA and LGUs for this purpose.
3.
The DA-RFU shall provide concerned NFA Regional/Provincial Offices with the updated masterlist of farmers who can avail of the fertilizer support including the targeted volume of fertilizer to be procured and distributed per farmer per province three weeks prior to land preparation. Farmers listed therein shall be subject to the qualifications enumerated in item 5 of the General Policies. The list should already exclude farmers who have availed of the DA-NFA-PHILRICE certified and hybrid seeds subsidy program this coming 2003-2004 wet and dry cropping seasons and farmers who have outstanding loan under the PNPL scheme.
B. Procurement
1.
Procurement of the fertilizer shall be limited to the targeted quantity and fertilizer grade stated in the official masterlist of FBs.
2.
Procurement shall be done in accordance with existing government
Procurement policies.
3.
NFA shall procure only from DA-FPA licensed fertilizer suppliers. DA thru FPA shall provide NFA with a duly authorized list of licensed fertilizer suppliers.
4.
The fertilizer shall be picked up by the NFA from the supplier’s depot.
5.
Prior to receipt, the fertilizers should be inspected first by authorized FPA and NFA personnel and should be in its proper weight and containers as prescribed in the technical specifications.
6.
The accountable Warehouse Supervisor (WS) shall document receipt of fertilizer from suppliers through the Warehouse Stock Receipt (WSR). A separate pad of WSR shall be used to document receipt of fertilizer regardless of type.
7.
Payment to fertilizer suppliers shall be in accordance with the usual NFA disbursement voucher system.
C. Handling and Storage
1.
The fertilizers should be stored in a separate warehouse and should not co-mingle with rice and/or other NFA stocks. If necessary, the NFA P.O. should lease a warehouse for this purpose.
2.
A Warehouse Supervisor shall be assigned for the safekeeping of the fertilizer in the warehouse.
3.
Existing NFA warehousing procedures and documentation shall be followed in the receipt and issuance of fertilizer.
4.
Counting of fertilizer shall be on a bag-to-bag basis with no weighing
involved.
5.
First-in-First-out policy in inventory management for fertilizer shall be strictly
implemented.
D. Distribution and Withdrawal of Fertilizers
1.
NFA shall distribute fertilizers only to qualified FBs enumerated in items 5-6 of the General Policies.
2.
FBs of this program shall be given support of two bags of fertilizer per hectare up to a maximum of two hectares per FB on a 50:50 scheme as defined under item 4 of the General Policies. The FB portion of the cost shall be paid in cash.
3.
FBs/FOs who want to avail of the fertilizer support shall fill out a form of Intention to Participate in the Fertilizer Program
(
Exhibit 1
). Copy distribution shall be: 1-Operations Section; 2 - Accounting; 3 - Whse. Supervisor; 4 - Cashier; 5 - FB/FO.
4.
The Operations Officer shall check if the name of the farmer/s is/are included in the masterlist provided by DA-RFU/LGU
or
if he can present a certification signed by the Municipal Agricultural Officer (MAO) / Agricultural Technician (AT) stating that they are palay farmers of fully irrigated land in their localities. The Operations Officer should also check if the farmer/s meet the rest of the qualifications.
5.
FBs who bought and planted certified seeds (inbred and hybrid) at full cost this Wet and Dry Cropping Seasons (May-October 2003, November 2003-April 2004) should be able to present the Official Receipt issued by the seed grower / dealer / distributor. In the Dry Season (November 2003-April 2004) they should also be able to present a soil analysis certified by BSWM/DA-RFU/LGU, in addition to the OR.
6.
The Operations Officer should also check if the FBs have availed of other location specific intervention (e.g. Zinc, in lieu of the CS 50:50 scheme), in which case they can claim fertilizer support for 1 hectare only.
7.
The Operations Officer shall give the FB/FO representative his/their copy of the Intention to Participate in the Fertilizer Program (copy 5), attaches copy 4 to the Authority to Accept Payment (AAP) and instructs the FB/FO representative to give copy 4 and AAP to the Cashier/Collecting Officer and pay the FB portion of the fertilizer support in cash. The Cashier/Collecting Officer shall issue an OR to the FB/FO which will be presented to the Operations Officer for preparation of AI.
8.
The AI may be prepared per individual farmer, or it can be issued in batches, i.e., in the name of several farmers who paid at the same time. In the latter case, the following shall be done:
a. If possible, the names of the farmers and their OR numbers should be indicated in the appropriate portion of the AI.
b. A corresponding List of Farmers Authorized to Withdraw Fertilizer per AI No. ___ (
Exhibit 2
) shall be attached to the AI. THIS FORM SHALL BE MIMEOGRAPHED AND MADE READY ANYTIME.
c. The AI number shall be indicated by the Operations Unit in the face of the OR of the farmer. The farmer shall be requested to present his OR to the WS II for cross reference against the AI and the list.
d. The AI together with the List of farmers authorized to withdraw shall be sent to the WSII of the designated warehouse.
9.
Withdrawal of fertilizer
a. If the farmer who will withdraw is among a batch of farmers authorized in one AI:
i. Said farmer shall be asked to present his OR and the WSII shall refer to the AI no. written on it.
ii. The WS II shall refer to the List of Farmers Authorized to Withdraw per AI No. ___ and validate if the farmer is included in the list.
iii. If the farmer is in the list, he shall be issued the fertilizer he is entitled to. The farmer shall be asked to acknowledge receipt of the fertilizer by signing in the “Received by” portion of the list.
iv. A WSI shall be prepared for the fertilizer issued to the farmers. There could be several WSIs for one (1) AI (i.e, the farmers did not withdraw at the same time) . The AI number should always be indicated in the appropriate portion of the WSI.
v. The Warehouse Asst. or the WSII shall accomplish the rest of the columns of the List of Farmers Authorized to Withdraw per AI No.___
b. If the AI includes only one farmer, the usual procedure where the farmer shall present the AI to the WS of the designated warehouse and the WS shall prepare a WSI for the issuance of the fertilizer, shall be followed.
c. A separate pad of WSI shall be used to document receipt of fertilizer regardless of type.
10.
The Municipal Agricultural Officer (MAO) or Agricultural Extension Worker (AEW) or Agricultural Technician (AT) may facilitate the collection of the FB portion of the fertilizer from FBs/FOs, remit the payment to NFA and withdraw the fertilizer. The FB/FO shall be considered paid only when the payment/s have been remitted to NFA. The NFA Provincial Cashier shall issue Official Receipts per FB/FO. When remitting payment the MAO / AEW shall submit a statement of remittance to the NFA Provincial Cashier (
Exhibit 3)
.
E. Reporting/Monitoring Systems
1.
The Provincial Office - Accounting Section shall prepare the following reports monthly to be submitted on or before the 7th day of the following month to the Regional Office:
a. Statement of Remittance of Funds, Disposition of Funds, and Fund Balance for Fertilizer
(Exhibit 4
)
b. Statement of Fertilizer Operating Expenses (
Exhibit 5
)
The Regional Office shall prepare a consolidation (
Exhibit 6
and
Exhibit 7)
of the above reports to be submitted to DAS-C.O. on or before the 14th day of the month.
2.
The Provincial Office - Operations Section shall prepare the following reports monthly to be submitted on or before the 7th day of the following month to the Regional Office:
a. Fertilizer Inventory Report (
Exhibit 8)
b. Fertilizer Accomplishment Report (
Exhibit 9
)
i. Procurement (target vs. Actual)
ii. Distribution (target vs. actual)
The Regional Office shall likewise prepare a consolidation
(Exhibit 10
and
Exhibit 11
) of the above reports to be submitted to DMO-C.O. on or before the 14th day of the month.
3.
Thereafter, DMO-OCD shall prepare a national consolidation of all the reports mentioned above to be submitted to DA-FOS copy furnished the AO and ODAO.
4.
The Warehouse Supervisor shall prepare separate daily and weekly stock inventory reports for fertilizer (Summary of Daily Warehouse Receipts, Issues and Balances, Statement of Daily Warehouse Receipts, Statement of Daily Warehouse Issues, Weekly Statement of In-Warehouse Transactions) following the copy distribution and the cut off dates of the stock reports for grains.
5.
The Provincial Office shall prepare a Fertilizer Report (
Exhibit 12
) on a weekly basis with cut-off date every 7th, 15th, 22nd and 31st of the month. It shall be submitted two (2) days after cut off date to DMO-OCD thru Lotus Notes Mail. Provincial Offices with no Lotus Notes may send the report thru fax.
F. Fund Management
1.
Collection of NFA provincial offices shall be remitted to the central office in accordance with the SOP on Cash Collections and Deposits (FS-CS07 approved/issued July 30, 1996 and made effective August 1, 1996) and should not be utilized for any purpose.
2.
NFA central office shall reallocate and remit the Fertilizer Procurement Fund to NFA regional offices who in turn shall remit the corresponding Fertilizer Procurement Fund to their provincial offices based on the target volume of fertilizer to be procured per area provided by DA-RFU/LGU.
3.
Actual Operating/Administrative and other related expenditures that shall be incurred during the implementation of the program shall be deducted from the fertilizer procurement fund.
4.
A separate bank account - Fertilizer Procurement - as well as a separate collection account - Fertilizer Collection - for fertilizer shall be opened by the NFA regional / provincial offices.
5.
NFA shall remit to DA unspent portion of the fund after the program duration.
6.
The book of accounts that will be maintained for this program shall be open for inspection by DA officials, its resident auditor and duly authorized representative/s.
7.
Remittance/transfer of funds as well as payment of expenses related to this program shall be treated/charged as/to Trust Liability-DA-GMA, hence it will not pass through the interbranch account.
G. Accounting Entries
Accounting entries to record transactions under this program are presented under
Annex A
.
III. RESPONSIBILITIES
IV. FLOW CHART
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