SOP Library
SOP NO:
TS-ES07
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Industry Services (BR)
Area:
Grains Marketing (GM)
Title:
SOP on Cooperative Development Incentive Fund (CDIF)
Date Approved/Issued:
12/26/1996
Date Effective:
01/01/1997
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. STATEMENT OF POLICIES
1. All Cooperative Incentives Fees (CIFs) both regular and upgraded shall be integrated immediately and shall henceforth be termed as
Cooperative Development Incentive Fund (CDIF).
2. The CDIF shall accrue to the farmer organization and shall be taken from the General Operating Expense (GOE).
3. Only
FOs
who have legal juridical personalities, and are registered with appropriate government registering agencies (e.g. Cooperative Development Authority (CDA), Securities and Exchange Commission (SEC) or DOLE -Bureau of Rural Workers (BRW), Livelihood Corporation (LIVERCOR) shall be granted
CDIF
s.
4.
CDIF
shall be applied to FO deliveries which are in accordance with the approved NFA standard grains specification for palay and corn . Only palay / corn deliveries with not more than 18% moisture content level shall be accepted under the program.
5. The
CDIF
rate shall be approved by the NFA Council upon the recommendation of the Administrator.
6. Only
FOs
who are non FLGC III/MLGC beneficiaries can withdraw their
CDIF
s .
7. Monitoring and supervision of
CDIF
Program implementation shall be under Extension Department (EXD). EXD shall monitor the utilization and
CDIF
fund balances of the field offices.
8. Implementation of the
CDIF
program in the field offices shall fall under the functions of the Extension and Business Development and Promotions Section (EBDPS) or the Marketing EBDPS in the province.
9. The utilization coverage of the CDIF for
FOs
shall be for the acquisition /installation/repair and maintenance/registration of PHF and as subsidy for training expenses of the FO s . Other ancilliary services such as installation and transportation cost of the facility so acquired shall be included in the utilization of the
CDIF
.
a. Specific programs of utilization of the accumulated
CDIF
are as follows:
Program A
-
FOs
may utilize the accumulated
CDIF
for the acquisition / installation / repair and maintenance / registration of their preferred PHF/s.
Program B
- The accumulated
CDIF
may be used as payment of FO for the rental or amortization of any facility availed of under any NFA PHF Assistance program.
Program C
- If the FO is eligible to avail of any PHF loan from any lending institution (Land Bank of the Philippines, Development Bank of the Philippines, Philippine National Bank, etc.), the
CDIF
shall be used as the FO's equity for PHF acquisition or for the amortization of their loans from lending institution /s.
Program D
- The accumulated
CDIF
may be used by FO ‘s as deposit for empty sacks (MTS) to be borrowed from NFA.
Program E
- The Accumulated
CDIF
may likewise be used by FO for their training expenses to be conducted in coordination with the concerned field office.
PHFs covered under Programs A. B, and C above shall be as follows:
Driers
Threshers
Shellers
Moisture Meters
Weighing Scales
Rice Mills
Corn Mills
Warehouses
Tarpaulins
Empty Sacks
Equipment for the control of storage pests
Other PHF that may be deemed necessary
Likewise , the
CDIF
may be utilized by the FO s for the following :
1. Payments for the acquisition of production facilities like portable tractors and farm implements including the rehabilitation and replacement of production facilities and parts;
2. Production inputs like fertilizers and chemicals; and
3. Investments or equity infusion in Area Marketing and Bank Cooperatives.
B. GRANTING OF
CDIF
TO FO’S
1. The
CDIF
shall be earned everytime FO s sell their produce to NFA under its regular procurement program. It shall be computed per kilogram net weight (PO.50 / kg ENW
of palay/corn ). Total
CDIF
shall be reflected in the PR.
2. The
CDIF
shall be treated as a trust liability in the NFA books.
3. Upon granting of the
CDIF
, the NFA an FO shall enter into a
Memorandum of Agreement (MOA)
regarding the utilization of the
CDIF
4. An Advice re :
Accumulated CDIF
granted shall be sent to FO s monthly . The EBDPS/MOS of the concerned NFA P.O shall prepare the advice in consultation with the Accounting Section and shall disseminate the said statement to the
FOs
cc: R.O.
C. REMITTANCE OF
CDIF
TO PROVINCIAL OFFICES
1. To facilitate the granting / withdrawal of the
CDIF
, 20% of the total balance of the amount granted to FO s for both the regular and upgraded CIF shall be remitted by DTBFM to the NFA field offices concerned based on the recommendation of EXD.
2. Initially, all Provincial Offices shall be required to submit to EXD not later than the 15th of January 1997 ; a
Statement of CDIF Granted
. This shall serve as basis of EXD in the remittance of the 20% of the
CDIF
granted.
3. Subsequent request for additional
CDIF
remittance shall also be the responsibility of EXD.
D. WITHDRAWAL FROM THE
CDIF
1. Initial withdrawal from the
CDIF
shall require submission of an assembly resolution supported by an application for
CDIF
withdrawal
. Subsequent request for withdrawal shall require the submission of a board resolution signed by all board members , application for withdrawal and a Statement of Expenses Supported by certificate s / receipts or any proof certifying that the amount previously withdrawn was properly utilized in accordance with the purpose for withdrawal.
a) The Provincial Investigator shall verify the authenticity of the FO ‘s Board/ Assembly Resolution before the withdrawal from
CDIF
is effected.
2. Withdrawal shall be made through the usual disbursement voucher system to be prepared by the EBDPS/MOS .
a) For the Acquisition / installation of facilities and purchased of inputs , the dealer from whom the facility / inputs shall be purchased of inputs , the check shall be made payable to the dealer from whom the facility / inputs shall be purchased .
b) For equity purposes, the check shall be made payable to the Bank or Area Marketing Cooperative .
c) For the repair, maintenance, transportation cost and registration of facilities, the check shall be made payable to the Farmer Organization.
3. Different
FOs
may agree to consolidate their
CDIF
amounts to proportionately share the acquisition cost of the common PHF, to come up with sufficient funds to cover the price of a desired PHF.
4. All request for withdrawals from
CDIF
shall be approved by the Regional Manager. A
letter Request
shall be prepared by the concerned provincial office for this purpose. The Regional Manager shall inform the EXD thru wire of all instances of approved requests and PHFs purchased.
a) The FO shall present canvass made on the PHF purchased, and the EBDPS/MOS shall check the authenticity of canvass.
b) The Regional Manager shall approve the written application for
CDIF
withdrawal to allow the purchased / installation / repair and training expenses
c) The EBDPS/ MOS shall confirm the purchased / turn -over of PHF . The Provincial Manager shall validate and see to it that PHF . purchased was the one stated in the canvass.
5. If the amount of
CDIF
being requested is P50,000 and above , instead of a board resolution. the Provincial Manager should require an assembly resolution.
E. TREATMENT FOR INACTIVE
CDIF
1. The
CDIF
shall be considered inactive when they show no transaction for a period of two (2) years . After this period , said
CDIF
are considered forfeited in favor of NFA. This shall be stated in the MOA between
FOs
and NFA.
2. The EBDPS/MOS shall check with the Accounting Section at least monthly in order to determine if any
CDIF
is nearing forfeiture..
3. Three (3) months prior to forfeiture, a
Notice For Inactive CDIF
shall be sent to all
FOs
with inactive
CDIF
4. A
Notice of CDIF Forfeiture
shall be sent to all FO s if they did not respond or act on the notice stated in D.3 and two It shall be prepared in four (4) copies for distribution as follows:
Copy 1 - FO
Copy 2 - EXD
Copy 3 - RO
Copy 4 - PO - File
F. MONITORING SYSTEM
1. The
CDIF Performance Report
shall be prepared monthly by the EBDPS/MOS. It shall serve as reference for monitoring
CDIF
balances and use. It shall also reflect the amount of mature
CDIF
granted and forfeited. It shall be submitted to EXD cc: RO and PO Accounting Section not later than the 15th of the succeeding month. the Accounting Section shall reconcile their record based on the report and prepare a journal entry to take up the amount of forfeited CDF.
2. The EBDPS/MOS shall monitor the CDIF balances by maintaining an index card per FO. Their
CDIF
balances should tally with that of the Accounting Section.
3. A
CDIF Utilization Report
shall be submitted by Regional Office monthly to AO cc : OAA/DMO/DTBFM/EXD. This contains the status of the CDIF program, Its balances , amount and number of FO s granted / withdrawn and the type of facilities acquired.
4. EXD in coordination with DMO , DAS and MSD shall conduct a semestral evaluation on the utilization and problems encountered under the
CDIF
and prepare
Evaluation Report on CDIF Funded PHF
G. ACCOUNTING TREATMENT
1. Financial transactions relative to this special procurement package shall be closely monitored by the Accounting Unit . Likewise, financial records and reports shall be maintained to account for the programs .
2. Accounting entries procurement shall be as follows:
a) To record procurement of stock /replacement 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-CPF XXX XXX
CR : Cash - Other Banks
Current -CPF XXX
b) To record /set up the Cooperative Development Incentives Fund (CDIF)
DR : Invty. IFS- Appropriate Account XXX
CR : Invty . Cost - CDIF XXX
c) To record payment of CDIF to FO s based on the disbursement voucher processed.
DR : Trust Liabilities -Misc. Farmer’s CDIF XXX
CR : Vouchers Payable XXX
DR : Vouchers Payable XXX
CR : Cash - Other Banks - Current Account - GOE XXX
d) To record payment of CDIF to
FOs
based on the disbursement voucher processed
DR : Trust Liabilities - Misc.Farmer's CDIF XXX
CR : Vouchers Payable XXX
DR : Vouchers Payable XXX
CR : Cash - Other Banks-Current Account-GOE XXX
e) To record forfeited CDIF
DR : Trust Liabilities -Misc. Farmer’s CDIF XXX
CR : Misc. Income XXX
III. RESPONSIBILITIES
IV. FLOW CHART
Top Page
EXHIBITS
Memorandum of Agreement-CDIF
STATEMENT OF CDIF GRANTED
Withdrawal of CDIF
Notice of Inactive CDIF
Notice of CDIF Forfeiture
Evaluation Report on CDIF Funded PHF
CDIF Performance Report
CDF UTILIZATION REPORT
Accumulated CDIF