SOP Library
SOP NO:
GM-DN30.A
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Activity:
Distribution (GM-DN)
Title:
Amendment to the SOP on Rice Sales Program for Local Government Units (LGUs)
Date Approved/Issued:
07/31/2018
Date Effective:
07/31/2018
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
For the information, guidance and compliance of all concerned, published hereunder is an Amendment to the SOP on Rice Sales Program for Local Government Units (LGUs) (SOP No.GM-DN30), approved and made effective July 03, 2018.
I. TERMS OF REFERENCE
x x x
II. IMPLEMENTING GUIDELINES
A. GENERAL PROVISIONS
x x x
4. The price of rice shall be in accordance with the NFA Selling Price Bulletin (SPB) at the time the Authority to Issue (AI) is approved by the Provincial Manager.
a. deleted
b. deleted
5. x x x
x x x
III.
SPECIFIC POLICIES
x x x
x x x
All rulings, policies and/or issuances inconsistent with the herein provisions are hereby superseded.
The SOP shall take immediately upon approval.
LT. COL. JASON L. Y. AQUINO, (RET.) P.A.
Administrator
Date Approved by :
July 31, 2018
ANNEX A
RICE SALES MEMORANDUM OF AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Agreement made and entered into this ___ day of _____, 20__ at Quezon City, Philippines, by and between:
The
NATIONAL FOOD AUTHORITY (NFA),
a government agency exercising corporate powers in the performance of its governmental functions with principal office place of business at ___________________________, represented herein by its Provincial Manager, ______________________, herein referred to as NFA.
and
The
PROVINCIAL CITY/MUNICIPAL GOVERNMENT
of
________________________, a local government unit with principal office place of business at the Provincial/City/Municipal Hall located at _____________________________ represented herein by its Government/City/Municipal Mayor, ______________________ hereinafter referred to as LOCAL GOVERNMENT UNIT (LGU).
W I T N E S S E T H:
WHEREAS
, NFA is the government agency charged with, among others, ensuring the nation’s adequate supply and distribution of grains :
WHEREAS
, under the Local Government Code (LGC), Local Government Units (LGUs) are vested with authority to discharge the functions and responsibilities of national agencies and offices devolved to them;
WHEREAS,
Local Government Units (provinces, cities and municipalities) have been tasked with providing basic social service at all times particularly in times of calamities;
WHEREAS,
the Local Government Units (LGUs) are authorized to set aside five percent (5%) of the Internal Revenue Allotment (IRA) or any amount from the estimated revenue for unforeseen expenditures arising from the occurrence of calamities, provided that such appropriation shall be used only in the area affected by calamities;
WHEREAS,
the Local Government Units (LGUs) are required to set aside an amount equivalent to twenty percent (20%) of the estimated revenue from regular sources as an annual lump sum appropriation for Local Disaster Risk Reduction and Management Fund (LDRRMF) and Special Development Fund (SDF) respectively;
ANNEX A
RICE SALES MEMORANDUM OF AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Agreement made and entered into this ___ day of _____, 20__ at Quezon City, Philippines, by and between:
The
NATIONAL FOOD AUTHORITY (NFA),
a government agency exercising corporate powers in the performance of its governmental functions with principal office place of business at ___________________________, represented herein by its Provincial Manager, ______________________, herein referred to as NFA.
and
The
PROVINCIAL CITY/MUNICIPAL GOVERNMENT
of
________________________, a local government unit with principal office place of business at the Provincial/City/Municipal Hall located at _____________________________ represented herein by its Government/City/Municipal Mayor, ______________________ hereinafter referred to as LOCAL GOVERNMENT UNIT (LGU).
W I T N E S S E T H:
WHEREAS
, NFA is the government agency charged with, among others, ensuring the nation’s adequate supply and distribution of grains :
WHEREAS
, under the Local Government Code (LGC), Local Government Units (LGUs) are vested with authority to discharge the functions and responsibilities of national agencies and offices devolved to them;
WHEREAS,
Local Government Units (provinces, cities and municipalities) have been tasked with providing basic social service at all times particularly in times of calamities;
WHEREAS,
the Local Government Units (LGUs) are authorized to set aside five percent (5%) of the Internal Revenue Allotment (IRA) or any amount from the estimated for unforeseen expenditures arising from the occurrence of calamities, provided that such appropriation shall be used only in the area affected by calamities;
WHEREAS,
the Local Government Units (LGUs) are required to set aside an amount equivalent to twenty percent (20%) of the estimated revenue from regular sources as an annual lump sum appropriation for Local Disaster Risk Reduction and Management Fund (LDRRMF) and Special Development Fund (SDF) respectively;
WHEREAS,
in order to provide immediate assistance to their constituents, the LGU has requested NFA to allow them to purchase rice
for relief distribution operations in times calamities/disasters, as support to affected families under the LGUs rehabilitation project/program (to restore, rehabilitate, reconstruct the damages caused by the disaster affected families and infrastructure) and/or for buffer stockpiling/prepositioning;
WHEREAS,
the local legislative body of the LGU has authorized its Provincial Governor/City/Municipal Mayor to enter into this Agreement as provided for in Resolution No. ________dated________________ which remain in full force and effect; and
WHEREAS,
the
NFA
, cognizant of the needs of the people in times of emergency/calamity and as part of the Disaster Preparedness of the government acceded to the request of the LGU to purchase rice on cash and credit
basis;
NOW THEREFORE
, for and in consideration of the foregoing, the parties hereto
hereby agree as follows
:
I. DURATION:
This Agreement shall be effective, valid and binding, commencing on ________________ and ending on _______________________(end of term of office of the Provincial Governor/Municipal/City Mayor).
Either party, however, may terminate this Agreement without need of judicial action and without prejudice to any right to damages in the event that there is a breach of contract committed by either of the parties, by giving the other party at fault/committed the breach of contract a fifteen (15) calendar days prior written notice thereof, setting the reason or ground relied upon, particularly specifying the breach complained of. Upon such termination, the LGU shall settle its accountabilities with the NFA and any overdue and unpaid account shall be subject to a penalty as provided herein”.
II. GENERAL PROVISIONS:
The LGU shall be allowed to purchase rice from NFA on cash basis for the following purposes:
1.a For relief distribution operations in times of calamities/disasters;
1.b For LGUs rehabilitation project/program (to restore/rehabilitate, reconstruct the damages caused by the disaster to affected families and infrastructure),
1.c For buffer stockpiling/stock positioning for disaster preparedness and other various programs and projects of the LGUs.
2. The LGU may also avail of rice loan/credit, but only for relief distribution operations in times of calamities/disasters, subject to declaration of a State of Calamity by the President or the Provincial Governor or City Mayor.
3. The maximum volume/quantity of rice that an LGU may avail are as follows:
In bags of 50 kg
LGU
Cash *
Credit
Provincial Government
5,000
500
City Government
2,000
200
Municipal Government
1,000
100
*within the Specification of Authority of the NFA Regional Manager/Provincial Manager .
4. NFA reserves the right to allocate the quantity of rice to be granted to the LGUs depending upon the availability of stocks.
5. NFA shall not be under obligation to issue rice if the LGU has an existing unpaid account. However, in the event that another disaster/calamity occurs while the LGU has unpaid balance, subject to the same conditions as specified in item II.2 and 3 of this MOA and additional requirements, additional credit may be allowed provided, the maximum volume/quantity of rice indicated above is not yet exhausted and provided further, that the subsequent disaster/calamity occurs within the 15-calendar day period within which the LGU is obliged to pay from the date of LGUs acknowledgement of the billing date.
6. The price of rice shall be in accordance with the NFA Selling Price Bulletin (SPB) at the time the Authority to Issue (AI) is approved by the NFA Provincial Manager.
7. The Warehouse Stock Issue (WSI) shall be duly received and acknowledged by the LGU’s authorized representatives.
8. The weight/quantity/quality of stocks as received and acknowledged by the LGU’s authorized representative in the official document shall be final and binding.
9. Rice purchases under this Agreement shall not be used for any purpose other than as intended in the letter request/resolution.
10. NFA reserves the right to inspect the warehouse and/or rice distribution/relief operations to determine compliance with this Agreement.
III. OBLIGATIONS OF THE NFA
1. The Marketing Operation Section (MOS) in the field offices, shall evaluate the request and verify/check the documents presented based on the purposes specified under item II.1 and 2 of the General Provisions of this MOA.
2. The NFA designated/concerned Warehouse Supervisor shall issue rice only to authorized representative of the LGU and upon presentation by the LGU of the following :
For cash sales – Official Receipt (OR) and Authority to Issue (AI)
b. For credit sales – AI
3. Shall issue billing statement to LGU for rice purchase on credit within
five (5)
calendar days reckoned from the date of last withdrawal as indicated in the Warehouse Stock Issue (WSI).
4. For credit sales, shall ensure that payment are made within
fifteen (15)
calendar days reckoned from the date of LGU’s acknowledgement of the NFA Billing Statement.
5. The Warehouse Supervisor shall monitor the date/s of withdrawal thru the Warehouse Stock Issue (WSI) and shall withhold issuances pending the payment of storage fees, if any.
6. A Collection Committee shall be created to ensure/monitor that payment are regularly complied based on Agreement.
IV. OBLIGATIONS OF THE LOCAL GOVERNMENT UNIT
1. Shall upon signing of the MOA submit to the concerned NFA Provincial Office (NFA PO) a listing of their representatives who are authorized to transact with the NFA, together with their pictures and specimen signatures. No other persons, except those included in the list, shall be allowed to withdraw the rice stocks and sign pertinent NFA documents in behalf of the LGUs. The list, however, may be amended through a written notice from the Governor/Mayor to be submitted to the NFA PO prior to withdrawal.
2. Shall purchase rice on credit for relief distribution operations, upon declaration of the affected area as under a state of calamity and submission of the following documents:
a. A formal written request from the Provincial Governor/City/Municipal Mayor specifying that rice is for relief distribution operations under a state of calamity, and indicating therein the quantity of rice to be purchased;
b. An approved Ordinance or Resolution of the Sangguniang Panlalawigan/Panglunsod/Pangbayan authorizing the LGU through its Provincial Governor/City/Municipal Mayor to purchase rice on credit from the NFA under the Rice Sales Program and specifying the
fund source (i.e Local Disaster Risk Reduction and Management Fund, Special Development Fund, Emergency Fund or other fund appropriated for such obligation).
The resolution among others, shall contain the following;
b.1. That the rice is for relief distribution operations in the area under a state of calamity as declared;
b.2 The date of payment which shall be within
fifteen (15) calendar
days
from the date of LGU’s acknowledgement of the NFA billing statement; and
b.3 The quantity of rice to be purchased
c. Purchase Order (PO) indicating the quantity of rice to be purchased signed by the Provincial Governor/City/Municipal Mayor and
with Certification of Funds Availability by the Provincial/City/Municipal Treasurer/Accountant as to the available Special Development Fund / Local Disaster Risk Reduction and Management Fund /Emergency Fund or any other fund appropriated for the rice sales program
.
3. The LGU undertakes to withdraw all stocks within seven (7) working days from the date indicated in the Official Receipt (OR) for cash sales/date of issuance of Authority to Issue (AI) for loan/credit sales, signed by the concerned Provincial Manager.
For cash sales:
Withdrawal of stocks by LGU shall commence not later than the first working day after issuance of OR. Stock purchases of 500 bags and below shall be withdrawn in one (1) day. For purchases above 500 bags, withdrawal shall be at least 500 bags per day per LGU and shall be done in successive working days until all stock purchases have been withdrawn.
Unwithdrawn rice after the prescribed withdrawal period shall be charged a storage fee based on the volume, number of days stockpiled and the latest approved prevailing rate in the area.
For credit sales:
The entire quantity indicated in the AI or a portion thereof that remains unwithdrawn at designated NFA warehouse after the prescribed
seven (7)
working days
withdrawal period shall be deemed cancelled.
4. Shall pay for the rice stocks issued on credit within
fifteen (15) calendar days
from the date of LGU’s acknowledgement of the NFA billing statement. Unpaid bills after the
fifteen (15) calendar days
required payment period shall be charged a one percent (1%) interest per month and two percent (2%) penalty per month based on amount due and shall mean temporary suspension of rice purchase on credit until account is fully paid.
5. For Cash Sales, the following payment scheme shall be applied:
a. The LGU shall pay to the NFA Cashier of the concerned province in the form of Government Check (through voucher system). A Temporary Receipt shall be issued by the NFA Cashier in exchange of the Government Check. Official Receipt (OR) shall be issued upon clearing of the Government Check or
b. The LGU may opt to deposit payment to NFA Account thru the Auto Debit Arrangement (ADA) if available in the NFA Provincial Office. After confirming that the payment has been deposited in the NFA Account, the NFA Cashier of the concerned province shall issue an Official Receipt (OR). The LGU shall present the OR to the Marketing Operations Section (MOS) for preparation of AI.
V. OTHER CONDITIONS:
1. In compliance with the Budget Reform Program, all rice purchases availed on credit should be fully paid/liquidated within the calendar year. Credit shall be temporarily suspended pending payment of outstanding obligation.
2. Should NFA be constrained to resort to court action to enforce or safeguard its rights and interest under this Agreement, the LGU shall be liable to NFA for attorney’s fees in an amount equivalent to twenty percent (20%) of total claims, exclusive of interest, damages, and expenses of litigation.
3. The terms and conditions of this Agreement may be changed, modified or additional stipulation may be added upon mutual agreement in writing by the parties. Any supplemental agreement shall form an integral part of this Agreement and shall describe and specifically refer to the particular provision of this Agreement which is being changed, modified or superseded.
4. It is clearly understood that failure of the NFA to demand compliance with any of the terms and condition of this Agreement or any act of liberality shall not be construed or considered as a waiver on the part of the NFA enforcement of this Agreement, nor shall it relieve the LGU of its obligations provided hereunder.
VI. VENUE:
The parties agree that in case of litigation the venue of action for any cause or causes of action that may arise from this Agreement shall be excluded laid the proper courts of ________________________________________ only.
IN WITNESS WHEREOF,
the parties have hereunto affixed their signatures on the date and at the place above-written.
BY:
NATIONAL FOOD AUTHORITY PROVINCIAL/CITY/MUNICIPAL
CITY MAYOR
GOVERNMENT OF_________
BY: BY:
_____________________________ __________________________
PROVINCIAL MANAGER PROVINCIAL GOVERNOR/CITY
OR MUNICIPAL MAYOR
FUNDS AVAILABILITY:
____________________________
LGU TREASURER/ACCOUNTANT
SIGNED IN THE PRESENCE OF:
____________________________ _______________________________
ACKNOWLEDGEMENT
Republic of the Philippines)
_____________________) S.S.
BEFORE ME, Notary Public for and in _____________________________, this ______ day of __________________, 20 __ personally appeared :
Name CTC No. Date/place/Issued
___________________ __________ _________________
___________________ __________ _________________
known to me to be the same persons who executed the foregoing instrument which is a Memorandum of Agreement and they acknowledged to me that the same is their own, free and voluntary act and deed as well as that of the institution they represent.
The foregoing instrument consist of eight (8) pages including this page on which this Acknowledgement is written, and each and every page of which has been signed by the aforesaid parties, heir witnesses, and sealed with notarial seal.
IN WITNESS THEREOF, I have hereto set my hand and seal on the date and place above written.
NOTARY PUBLIC
Doc. No. ______
Page No. ______
Book No. ______
Series of ______
III. RESPONSIBILITIES
IV. FLOW CHART
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