SOP Library
SOP NO:
TS-ES08
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Industry Services (BR)
Area:
Grains Marketing (GM)
Title:
SOP on Emergency Assistance Package (EAP) for Farmer's Organizations
Date Approved/Issued:
11/25/1997
Date Effective:
11/11/1997
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. Statement of Policies
1. Granting of Emergency Assistance Package (EAP)
a)
Farmers' Organizations (FOs)
shall earn an EAP of P0.50 for every kilogram of palay/ corn they sell to the NFA. The EAP shall be on top of the P 0.50/kg
Cooperative Development Incentive Fund (CDIF)
given to FOs making the total incentive P 1.00/kg of palay/corn sold by FOs to NFA. Both EAP and CDIF granted shall be reflected on the Purchase Receipt (PR).
b) Only NFA accredited FOs are qualified to avail of the EAP program. Non-accredited FOs who are interested to avail of the program may apply for accreditation with the nearest NFA Provincial Office after complying with the following requirements in accordance with Section III.C of SOP No. GM-PR16 on Grains Procurement Policies and Procedures issued on June 5, 1995:
Certificate of Registration with any of the following:
i Securities and Exchange Commission (SEC)
ii Cooperative Development Authority (CDA)
iii Livelihood Corporation (LIVECOR)
iv Department of Trade and Industry (DTI)
v Department of Labor and Employment (DOLE)
Constitution and By-laws including list of officers.
Masterlist of farmer-members stating name and address of farmers, area cultivated, yield/ha., status of tenure, farm type and signature of farmer jointly certified by DA Technician and FO Chairman.
Attendance to assembly meeting/orientation for:
i Adoption of resolution of intent to participate to IPP and authorizing Farmers Organization's Coordinator (FOC).
ii Briefing on NFA Policies and Operation
2 copies 1 x 1 ID picture of FOC
Notarized application for Master Passbook
Surrender of individual farmer's passbooks previously issued.
c) The EAP shall be applied to FO deliveries which are in accordance with the approved NFA standard grains specification for palay and corn. Only palay/corn stocks with not more than 18% moisture content shall be accepted under the program.
d) Utilization coverage of the EAP shall be for the payment of the farmer's obligations with government institutions such as:
post-harvest facilities and services rented/availed from NFA
production/production related loans from Land Bank of the Phils. And other government lending institutions
premiums on crop insurance with the Philippine Crop Insurance Corporation (PCIC)
premiums of members with the Social Security System (SSS)
However, payment of the FO's obligations with the NFA shall be given priority over obligations with other government institutions.
2. Withdrawal/Release of EAP
a) Requests for withdrawal of EAP shall require submission of the following:
Application letter
addressed to the NFA Provincial Manager and signed by the President of the FO.
Board resolution signed by all board members of the FO.
Statement of Account from the creditor to which the payment is to be made
b) The Provincial Investigator shall verify the authenticity of the FO's Board Resolution and the Statement of Account before the application for withdrawal is endorsed to the Regional Manager for approval.
c) All requests for withdrawal of EAP shall be approved by the Regional Manager concerned. A
Letter Request
shall be prepared by the concerned Provincial Manager for this purpose and supported by duly certified photocopy of the application letter of the FOs with complete attachments and a certification from the Provincial Accountant of the FO's accumulated EAP balance as of the date the request is being made.
d) Withdrawal of the EAP shall be made through the disbursement voucher system. The check shall be prepared in favor of the institutions to which payment for the obligations of the FO is to be made, e.g.:
For post-harvest facilities rental/services and loans, the check shall be made payable to NFA.
For production/production-related loans, the check shall be made payable to the government lending/financing institution from which the loan was obtained.
For crop insurance and SSS premiums, the check shall be made payable to PCIC and SSS, respectively.
e) The Regional Manager shall immediately inform the concerned Provincial Manager thru wire of approved requests for withdrawal cc: EXD and DBTFM.
3. Remittance of EAP Funds to Provincial Offices
a) Remittance of EAP funds shall be on a per request basis. The Provincial Manager shall prepare a memorandum to DBTFM cc: EXD requesting for the remittance of EAP funds to the Provincial Office corresponding to the amount of EAP that were approved for withdrawal.
b) All requests for EAP remittances shall be supported by a Certification from the Provincial Accountant on the FOs' Accumulated EAP Balance as of the date the request is being made.
c) DBTFM shall, in all instances, furnish EXD and the concerned ROs with a copy of the wire sent to Provincial Offices re: amount of EAP funds remitted.
4. Monitoring System
a) Monitoring of the EAP Program implementation shall be the responsibility of the Market Development Unit (MDU) or, the Marketing Operations Section (MOS), in the absence of an MDU in the provincial office, while the R.O Market Development Section shall monitor the program implementation in the regional level.
b) An
EAP Performance Report
shall be prepared monthly by the MDU/MOS. It shall be submitted to the Extension Department (EXD) cc: RO Market Development Section and PO Accounting Section not later than the 15th of the succeeding month.
c) The MDU/MOS shall monitor the EAP fund balance by maintaining an index card per FO. A monthly advice re:
Accumulated EAP
granted shall be prepared based on the index card and in consultation with the Accounting Section. This shall be sent to FOs every seventh (7th) of the month cc: R.O. Accounting Section
d) The Extension Department shall be responsible for the overall monitoring and supervision of the implementation of the EAP program. EXD shall consolidate the EAP Performance Reports submitted by the provincial offices and prepare a monthly
Emergency Assistance Package Report
and
Consolidated Performance and Evaluation Report
to be submitted to the NFA Administrator on the third (3rd) week of the succeeding month.
5. Accounting Treatment
a) Financial transactions relative to this special procurement package shall be closely monitored by the Provincial Office's Accounting Unit. Likewise, financial records and reports shall be maintained to account for the program.
b) The EAP, like the CDIF, shall be treated as a trust liability in the NFA books. Accounting treatment shall be as follows:
to record procurement of stock/replenishment of Disbursing Officer (DO)/Special Disbursing Officer (SDO)
DR: Inventory IFS-Appropriate Inventory Account xxx
DR/CR: Vouchers Payable xxx xxx
DR/CR: Cash with DO/SDO - CF xxx xxx
CR: Cash - Other Banks Current - CPF xxx
To record/set up the Emergency Assistance Package (EAP)
DR: Inventory Cost - EAP xxx
CR: Trust Liabilities - Miscellaneous EAP xxx
To record charging of EAP to Inventory Account
DR: Inventory Items for Sale - AppropriateAccount xxx
CR: Inventory Cost - EAP xxx
To record payment of EAP to FOs based on the disbursement voucher processed
DR: Trust Liabilities - Miscellaneous Farmer's EAP xxx
CR: Vouchers Payable xxx
DR: Vouchers Payable xxx
CR: Cash - Other Banks - Cash Account - GOE xxx
6. Period of Implementation
The program shall take effect on November 11, 1997 and shall be effective until next year or as the situation warrants.
III. RESPONSIBILITIES
A. Granting of EAP
1. Farmers Organizations
a) Applies for accreditation with the NFA if not yet accredited.
b) Sells/delivers to NFA palay/corn that meets standards grains specification of the NFA.
c) Monitors amount of EAP earned based on the monthly advice being sent by the NFA Provincial Office.
2. NFA Procurement Team
a) Checks if FO deliveries conform with NFA standard grains specification.
b) Buys produce and grant EAP of P 0.50/kg of palay/corn bought from the FO.
c) Indicates in the Purchase Receipt (PR) total EAP granted to the FO.
B. Withdrawal/Release of EAP
1. Farmers' Organizations
a) Prepares application letter indicating the amount, the purpose and the name of the government institution to which the EAP shall be paid. Attaches board resolution duly signed by all board members of the FO and statement of account from the creditor to which the EAP being withdrawn is to be paid.
b) Sees to it that the EAP withdrawn is strictly being used for the purpose for which it is being withdrawn.
2. NFA Provincial Investigator
Verifies authenticity of the signatures in the board resolution and the Statement of Account supporting the FO's application.
3. NFA Provincial Accountant
Certifies the FO's Accumulated EAP Balance as of the date the request for withdrawal is being made.
4. NFA Provincial Manager
Prepares Letter Request endorsing application letter of FO to the Regional Manager for approval.
5. NFA Regional Manager
a) Approves/Disapproves FO's application for EAP withdrawal.
b) Informs the Extension Department monthly thru wire of approved requests for withdrawal.
6. P.O. Accounting Section
Prepares checks based on the approved request for withdrawal.
C. Remittance of EAP Funds to NFA Provincial Offices
1. Department for Budget, Treasury and Fund Management (DBTFM)
a) Remits EAP funds to Provincial Office upon request of the Provincial Manager based on the amount of EAP approved for withdrawal.
b) Furnish EXD with copies of wires sent to Provincial Offices for EAP remittances
2. NFA Provincial Manager
Prepares memorandum to DBTFM requesting for remittance of EAP Funds to the Provincial Office.
D. Monitoring System
1. P.O. Market Development Section or in its absence, the P.O. Marketing Operations Section
a) Monitors and supervises implementation of the EAP program in their respective provinces.
b) Maintains an index card per FO to monitor EAP fund balance.
c) Prepares a monthly advice of accumulated EAP to be sent to FOs.
d) Prepares monthly EAP Performance Report for submission to Extension Department cc: P.O Accounting Section and R.O. Market Development Section
e) Coordinates closely with the Accounting Section regarding EAP financial transactions
2. R.O. Market Development Section
Monitors EAP program implemenntation in the provinces within the region.
3. Extension Department
a) Responsible for the overall monitoring and supervision of the EAP program implementation.
b) Consolidates monthly EAP Performance Reports of NFA provincial offices.
c) Prepares a monthly Consolidated Performance and Evaluation Report for the information of the NFA Administrator/Deputy Administrators.
4. R.O. Accounting Section
Monitors EAP financial transactions of Provincial Offices within the region.
IV. FLOW CHART
Top Page
EXHIBITS
Application Letter for Withdrawal of Emergency Assistance Package
Letter Requests for Withdrawal of Emergency Assistance Package
Emergency Assistance Package Performance Report
Monthly Advice Re: Accumulated Emergency Assistance Package
Emergency Assistance Package Report
EAP Consolidated Performance and Evaluation Report