SOP No: NG-GO06

SOP Library

SOP NO: NG-GO06 (List of Exhibits/Attachments)

Mission: Technical Support Services

Area: Grains Marketing (GM)
Area: Grains Marketing (GM)

Activity: General Operation (GM-GO)

Title: SOP on the Enhanced Retail Access for the Poor (ERAP
) Sari-Sari Store

Date Approved/Issued: 11/18/1998

Date Effective: 12/01/1998

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

A. General Policies

1. The NFA shall accredit/open an ERAP Sari-Sari Store (ESSS) in depressed/remote barangays nationwide.

2. The NFA shall establish linkages with other government and non-government institutions to facilitate the effective implementation of the ESSS Program.

3. The NFA shall ensure that the following basic commodities are supplied and made available to the masses at very affordable prices :

a. rice e. coffee

b. sugar f. sardines

c. cooking oil g. noodles

d. milk

4. All store outlets and Farmers’ Organizations who shall participate in the program shall be required a minimum amount of P 15, 000.00 cash deposit which shall pay for the initial delivery of ERAP commodities by the NFA.

B. Site Identification and Selection of Outlets

1. ESSS shall be set-up in locations all over the country to be prioritized according to the following site features:

a. Remote or far-flung barangays where there is no existing store ; or if there is, the prices of EC's are higher than the ESSS selling price;

b. Recommended depressed barangays generally composed of low income families;

c. Thickly populated barangays in urban poor areas, such as squatters relocation sites.

2. Accreditation of outlets for each site selected shall be prioritized as follows :

a. Existing sari-sari store in the area ;

b. Rice retailers ;

c. Farmers’ Organization / Cooperatives;

d. Local Government Units/ Barangay Units;

e. Civic Organizations and Non-Government Units;

f. Parish Churches and Religious Units;

g. Other interested outlets; and

h. NFA.

Organization and Administration

1. An ESSS committee shall be set up in the NFA Provincial Office, to be headed by the Assistant Provincial Manager. The committee shall be responsible for the smooth implementation of the program. The committee shall be composed of the following members who shall be on-call whenever necessary :

Assistant Provincial Manager - Chairman

SGOO (18) - Marketing Operations

SGOO (18) - Market Development

Quality Assurance Officer

Provincial Economist

Senior Enforcement and Investigation Officer

2. The ESSS Committee shall be responsible for the following activities :

a. Conduct of information /advocacy campaign of the program ;

b. Coordination with LGU's, DSWD and other institutions ;

c. Site identification and selection;

d. Outlet identification and prioritization;

e. Accreditation of store operators;

f. Conduct of surveys for store operators and consumers on preferred brands/packaging, pricing, etc. ;

g. Identification of brand names and products specification ;

h. Identification of suppliers ;

i. Conduct of canvass of prices and price-setting ;

j. Negotiation with suppliers or their area offices for procurement and delivery;

k. Authorizing withdrawals from suppliers and deliveries to outlets; and

l. Recommend to the PM the suspension or blacklisting of store outlets violating the Deed of Undertaking.

3. An ERAP Project Unit (EPU) shall also be set up in the Provincial Office which shall be directly supervised by the APM, and composed of the following:

Unit Head

Depot Accountable Officer (DAO)

Delivery and Collection Officer (DCO)

The above personnel shall be assigned to the project office on a permanent basis. Support personnel such as drivers and truck helpers shall also be assigned to the program by the Provincial Manager according to the volume of its operations.

The EPU shall be responsible for the following activities:

a. Fabrication of billboard/streamer and price boards;

b. Actual procurement of ECs from suppliers and its re-order;

c. Scheduling of withdrawals of ECs from suppliers and deliveries to outlets;

d. Preparation of voucher for payment to supplier;

e. Taking orders for commodities from outlets;

f. Deliveries of products to store outlets;

g. Monitoring of the availability of commodities in the store outlets; and

h. Monitoring the status of the program’s implementation and reporting of adherence of all parties to its policies and deed of undertaking.

4. The responsibility for the smooth implementation of the ESSS Program at the Provincial Office shall be vested upon the Assistant Provincial manager , while at the Regional Level, the Asst. Regional Manager (ARM) shall be the overall coordinator of the committees within the region.

5. The Regional Manager (RM) is authorized to hire contractual personnel necessary to facilitate effective program implementation.

6. A depot warehouse shall be established in the province to be handled by a Depot Accountable Officer who shall be accountable for the commodities stored in the depot. The Regional Manager (RM), however may designate only one depot to serve more that one province if the program's operation in the region allows.

7. NFA depots for ERAP Commodities shall be strategically located and accessible to both supply source and ESSS outlets for efficient delivery and dispersal operations.

8. The Depot Accountable Officer (DAO) and Delivery and Collecting Officer (DCO) shall be covered by fidelity bonds.

9. A Quality Control Officer shall be designated to conduct inspection on commodities delivered by suppliers or withdrawn by the NFA prior to its receipt. He shall also be responsible for the appropriate conduct of quality inspection of commodities prior to its issuance to ERAP store outlets.

D. Accreditation of Outlets

1. The NFA ESSS Committee shall coordinate with the local government units/ barangay units/farmers organization/ cooperatives/civic and non-government organizations/parish churches and religious groups for the identification of remote/depressed barangays in the area wherein store outlets shall be accredited. If the above mentioned sectors are interested to participate in the program, they can be accredited as outlets.

2. Upon identification/selection of site, the attached

survey questionnaire

(Exhibit 1) shall be disseminated to the prospective store outlets for the determination of the following information :

a. Willingness of the prospective store outlets to participate in the program ;

b. Commodity/brand name and specification preferences ; and

c. Prevailing prices in the area.

3. The committee shall also provide information/linkages between the prospective outlets and financial institutions or other government agencies like LGU, DSWD, DTI, QUEDANCOR, LIVECOR, who are willing to put up the required deposit for the outlet to be able to participate in the program.

4. Application for accreditation must be supported with the following requirements:

For existing store-outlets

a.1 Payment of a minimum amount of P 15,000.00 as cash deposit;

a.2 Photos of the store with permanent structure;

a.3 Accessibility of the store supported by a location map;

.4 Letter of intent of the store owner to be accredited in the program and to abide with the program's rules and regulations;

a.5 Accomplished

application form

(Exhibit 2); and

a.6 Signed

Deed of Undertaking

(Exhibit 3).

For New Outlets

b.1 Payment of a minimum amount of P 15,000.00 as cash deposit;

b.2 Location of Proposed Store, Structural Plan and Specifications;

b.3 Accessibility of the proposed store ;

b.4 Letter expressing its intent to join the program and willingness to abide by the program's rules and regulations;

b.5 Accomplished application form (Exhibit2); and

b.6 Signed Deed of Undertaking (Exhibit 3).

5. Farmers’ Organizations interested to participate in the program may utilize their accumulated Cooperative Development Incentive fee (CDIF) or a portion of it as their cash deposit. The requirements for withdrawal of the CDIF for this purpose shall follow the existing SOP on Cooperative Incentive Program (GM-PR15) dated July 1, 1995. The PO shall issue a Credit Memo to effect the use of the CDIF as cash deposit.

6. A

Certificate of Accreditation

(Exhibit 4) shall be issued to store operators with approved applications.

7. Upon accreditation, the EPU shall provide and issue the

billboard/streamer

and price board, following the design and size specified in

Exhibit 5

, to the operator of the store outlet. and schedule the delivery of the corresponding basic commodities on the following day. Delivery of goods to the store outlet, shall always be prioritized by the provincial office in terms of logistical support.

8. The EPU shall ensure that an ESSS outlet return to the NFA the billboard /priceboard should the outlet cease to participate in the program for whatever reason.

E. Commodity Procurement

1. The Office of the Assistant Administrator for operations shall assist the Field Offices in negotiating with the Head Offices of prospective suppliers to be able to avail of discounts and negotiate for preferential arrangements, such as special markings on packaging, pre-packing, etc.

2. Actual procurement, i. e. preparation of Purchase Orders and scheduling of withdrawal or delivery, and payment of commodities to suppliers shall be handled by the EPU.

3. Procurement of ECs shall be guided by the survey results obtained from the area as to preferred brands, sizes, packaging, etc. The supplier, brand, packaging and release price of commodities shall be approved by the Assistant Provincial Manager based on the evaluation of the ESSS committee.

4. Commodities other than the ECs may be distributed by the EPU, upon approval by the Regional Manager, if the additional commodity satisfy the following criteria:

a. Market Survey results indicate that there is a clamor for the commodity in the area;

b. The commodity if carried by ESSS will result in a significant reduction in its prevailing price in the area;

c. The commodity is a food item and not perishable; and

d. The ESSS committee can easily carry out its procurement and delivery to outlets.

5. The EPU shall arrange for withdrawal of ECs from the nearest supplier’s depot or its delivery to NFA depot. The Purchase Order shall be prepared by the EPU using the NFA Purchase Order form for the approval of the Provincial Manager.

6. A

Warehouse Commodity Receipt (WCR)

, Exhibit 6 shall be prepared by the DAO ,to acknowledge receipt of ECs from suppliers. Acquisition cost shall always be indicated in the WCR in the opposite side of each commodity item. Copy distribution shall be :

Copy 1 - Supplier

- DAO

- Accounting

- Auditing (COA)

7. The EPU shall also implement an efficient withdrawal and dispersal/delivery schedules for its area and ensure that the First-In-First- Out (FIF0) inventory system is being followed in its depot. The PO ESSS committee shall adopt an efficient system of reorder from suppliers and replenishments for ESSS in all its depots.

F. Delivery to Outlets and Payment

1. The initial delivery of commodities to the ESSS

outlets shall be equivalent to the amount of cash deposit of the store owner. The composition of the initial delivery shall be the decision of the store owner. The store owner shall be required to fill-up an

Order Form

(Exhibit 7), to indicate the commodities he wants to be delivered. The Order Form Shall be accomplished in two copies, the duplicate of which shall be retained by the store owner for his reference.

2. The

Commodity Authority to Issue (CAI)

, Exhibit 8, shall be prepared by the EPU Unit Head and signed by the PM, authorizing the Depot Accountable Officer (DAO) to issue stocks to the DCO for delivery to ESSS. The release price to the store outlets shall always be indicated in the CAI opposite each of the listed commodity item. Copy distribution shall be as follows:

Copy 1 - Depot Accountable Officer (DAO)

- Auditing (COA)

- Accounting

- DCO

3. The

Warehouse Commodity Issue (WCI)

, Exhibit 9, shall be prepared by the DAO whenever stocks are issued to the DCO for delivery to outlets. The release price to the store outlets shall be indicated in the WCI opposite each of the commodity item. Copy distribution shall be as follows:

Copy 1 - DCO

- DAO

- Accounting

- Auditing (COA)

4. The Warehouse Commodity Receipt (WCR) shall be prepared by the DAO to acknowledge receipt of unsold commodities returned by the DCO. Acquisition cost shall always be indicated in the WCR in the opposite side of each commodity item. Copy distribution shall be:

Copy 1 - DCO

- DAO

- Accounting

- Auditing (COA)

5. The

Commodity Sales Invoice (CSI)

, Exhibit 10, shall be issued by the Delivery/Collecting Officer to the store outlets. Copy distribution shall be:

Copy 1 - Store Outlet

- DCO

- Accounting

- Auditing - COA

6. The Commodity Sales Invoice (

CSI

) for the initial delivery shall be given to the outlets on the day of delivery.

7. The store outlet shall pay for the second and the succeeding deliveries on a cash-upon-delivery basis. The

Commodity Sales Invoice (CSI)

shall be prepared by the DCO to acknowledge receipt of payment.

F. Sales and Price Policies

1. ESSS shall sell commodities only to end consumers for their own consumption and not for re-sale purposes. The EPU shall mark all ECs with “ERAP Commodity” prior to their distribution to ESSS.

2. ESSS shall sell only on retail basis and not on wholesale.

3. Accredited store outlet may sell other commodities/products side by side or together with the ESSS basic commodities.

4. ESSS shall undertake the repacking of commodities into smaller units.

5. Selling prices shall always be lower than the prevailing prices in the area. Selling price bulletins shall be issued by the Provincial Office to the store outlets either during payment or issuance/delivery of commodities.

6. ESSS shall post prices of commodities in a price board which should be conspicuously displayed outside the store outlet.

7. Store outlets selling on wholesale scheme and/or higher than the set selling price shall be blacklisted from the project and its accreditation shall be revoked.

8. To determine the appropriate selling price level for each commodity, the following formula shall be adopted :

CP = TC + Margin = or < BPSP

Where :

CP = Suggested Retail Price or Ceiling Price

= Price of Goods Sold to the Public

TC = Transfer Cost (TC) = Price of Goods Sold by NFA to ESSS

= Source Purchase Price (SPP) + All Incidental Cost (IC) + Margin

IC = Incidental Cost (IC) = Trucking (Gas and Oil only for NFA owned trucks) + Handling

BPSP = Barangay Prevailing Selling Price

Therefore, Suggested Retail Price or Ceiling Price must be lower compared to Barangay Prevailing Selling Price. Further, the retail/ceiling price of all EC should be posted using priceboards for customers' information/reference. Also, the PO shall issue an Selling Price Bulletin (SPB) using the

format

shown in (Exhibit 12).

Liquidation of Stocks Accountability/Remittance of Sales Proceeds

1. The Delivery/Collecting Officer (DCO) shall liquidate his accountabilities with the Depot Accountable Officer (DAO) and the NFA Provincial Cashier not later than 4:00 PM of the same day. He shall return undelivered ECs to the depot for which he shall be issued a WCR. He shall also remit to the Provincial Cashier the day's sales proceeds, supported by copies of

CSI

, for which he shall be issued an O.R.

2. The DCO shall prepare a

Liquidation Report

(Exhibit11) stating the commodities withdrawn, acquisition cost, release price, sales made, unsold commodities and sales proceeds to be remitted. The

Liquidation Report

shall be supported by the Accounting and Auditing copies of the WCI, WCR and

CSI

. The

Liquidation Report

shall be submitted to the Provincial Cashier together with the sales proceeds remittance. Copy distribution of the

Liquidation Report

shall be as follows :

Copy 1 - Cashier/Accounting

- DCO's File

- ESSS committee

ERAP-SSS shall still be part of NFA regular operations, hence, collections from sale of Rice shall be deposited to account LCC or IRC for remittance to Central Office.

5. For the transactions of basic commodities, the Provincial Office shall open a separate bank account, a COMBO account named as

RSF (Retail Store Fund),

to be advanced from GOE or upon receipt of remittance from Central Office or upon receipt of cash deposit from operators. Said fund account shall be treated as revolving fund therefore, collections from sale and procurement of basic commodities shall be deposited to and withdrawn from RSF fund account.

6. Farmer’s Organizations who opted to convert their accumulated CDIF to cash deposit shall be issued a Credit Memo. The Provincial Office shall request from C.O.-DTBFM for remittance of the CDIF fund, and effect reclassification entry, from Miscellaneous Trust Liability - CDIF to Miscellaneous Liabilities Miscellaneous - Deferred Credits to Income - Advance Payments - ESSS Operators. The JV shall be supported by regular documents required in the withdrawal of CDIF.

7. The total value of the initial delivery / issuance of basic commodities to ESSS Operators shall not exceed the total cash deposited. The said initial delivery / issuance shall be chargeable to the account Miscellaneous Liabilities - Deferred Credits to Income - Advance Payments - ESSS Operators. However, subsequent deliveries shall be on a cash on delivery (COD) basis.

8. Additional cash deposits from ESSS Operators shall be deposited under the RSF account, and to credit same to account Deferred Credits to Income - Advance Payments - ESSS Operators. An individual Subsidiary Ledger (SL) per ESSS Operator shall be maintained at the Provincial Office only.

9. All commodities shall be treated as Items For Sale Inventory-ESSS-Basic Commodities. For easy monitoring, the Provincial Office shall maintain a Worksheet/ Subsidiary Ledger showing breakdown per commodity, i.e. - Sugar, Cooking Oil, Milk, Coffee, etc. This schedule is for the Provincial Office use only and need not be included in the monthly Trial Balance. However, since the Central Office may require a detailed status report of the ESSS operation, it is therefore important that the said worksheet be updated on a regular basis or every time a transaction is made.

10. Expenses to be capitalized are: Handling, Freight/Trucking and Gas and Oil ( if using NFA vehicles). This undertaking shall be treated as a Special Project under

Activity Code 430.

Accounting Entries:

To record fund remittance from Central Office:

DR: 8-70-350 Cash In Bank - RSF xxx

CR: 8-97-802 HOA xxx

If the Provincial Office already opened the RSF fund account, only the above entry shall be used. However, if the RSF fund account will be opened only upon receipt of remittance from C.O., the Provincial Office shall reclassify the GOE to RSF.

DR: 8-70-350 Cash In Bank - RSF xxx

DR: 8-70-300 Cash In Bank - GOE (xxx)

To record receipt of Cash Deposit from ESSS Operators

DR: 8-70-350 Cash with Collecting Officer-RSF xxx

CR: 8-86-100.07 Miscellaneous Liabilities-Deferred

-Credits to Income - Advance Payments

ESSS Operators xxx

To record reclassification of CDIF account to Cash Deposit ESSS Operators:

CR: 8-84-900.05 Trust Liability-Miscellaneous-CDIF (xxx)

CR: 8-86-100.07 Miscellaneous Liabilities-Deferred

-Credits to Income - Advance Payments -

ESSS Operators xxx

To record Purchase of Commodities:

DR: 8-72-360.80 Inventory-Items for Sale -

ESSS Basic Commodities xxx

DR/CR: 8-81-400.04 Vouchers Payable xxx xxx

CR: 8-70-350 Cash In Bank-RSF xxx

To record Sales:

i. For the initial delivery/issuance of basic commodities to ESSS Operators

DR: 8-86-100.07 Miscellaneous Liabilities-Deferred

-Credits to Income -Advance Payments -

ESSS Operators xxx

CR: 1-57-700.80 Sales xxx

DR: 3-22-700.80 Cost of Sales xxx

CR: 8-72-360.80 Invetory-Items for Sale-

ESSS Commodities xxx #

ii.

For the subsequent deliveries/issuances to ESSS Operators:

DR: 8-70-400 Cash with Collecting Officer-RSF xxx

CR: 1-57-700.80 Sales xxx

DR: 3-22-700.80 Cost of Sales xxx

CR: 8-72-360.80 Invetory-Items for Sale-

ESSS Commodities xxx

To record additional cash deposit from Operators:

DR: 8-70-400 Cash with Collecting Officers - RSF xxx

CR: 8-86-100.07 Miscellaneous Liabilities-Deferred

-Credits to Income -Advance Payments -

ESSS Operators xxx

Reporting System

The provincial office shall submit the following reports, through Lotus Notes, to the Regional Office every Monday and Thursday while the Regional Office shall in turn submit a consolidated report to Central Office-AO, ODAO, OAAO and DMO every Tuesday and Friday :

COMMODITY / INVENTORY REPORT

DATE : _____________

TO : DMO / RO

CODE ______ ESSS COMMODITY INVTY REPORT AS OF ____________ :

PROVINCE COMMODITY SPECS NUMBER OF ACQUISITION TOTAL AVERAGE AVERAGE

CASES

PCS.

COST PER AMOUNT RELEASE SELLING

CASE

PRICE PRICE

b. SALES STATUS REPORT

DATE : ______________

TO : DMO / RO

CODE _____ ESSS COMMODITY SALES STATUS REPORT AS OF ______ :

NO. OF ESSS ESSS SALES SALES SALES

PROVINCE

ACCREDITED

COMMODITY

THIS WEEK

THIS MONTH

TODATE

Rice Pxxx Pxxx Pxxx

Groceries Pxx Pxxx Pxxx

TOTAL

III. RESPONSIBILITIES

IV. FLOW CHART
Top Page

EXHIBITS

Commodity Authority to Issue

Warehouse Commodity Issue

Warehouse Commodity Receipt

Exhibit 2 - Application for Accreditation on e-TRADE Sari-Sari Store

Exhibit 7 - e-TRADE Sari-Sari Store Program Commodity Order Form

Exhibit 1 - e-TRADE Sari-Sari Store Survey Questionnaire for Barangay

Exhibit 3 - Deed of Undertaking-ESSS

Exh. 11-ESSS Liquidation Report

Exh. 12 - Sample of ESSS Selling Price Bulletin

Exhibit 5 - ESSS Streamer/Biilboard

Exhibit 4 - Certificate of Accreditation

Exhibit 10 - ESSS Commodity Sales Invoice

Commodity Authority to Issue
Warehouse Commodity Issue
Warehouse Commodity Receipt
Exhibit 2 - Application for Accreditation on e-TRADE Sari-Sari Store
Exhibit 7 - e-TRADE Sari-Sari Store Program Commodity Order Form
Exhibit 1 - e-TRADE Sari-Sari Store Survey Questionnaire for Barangay
Exhibit 3 - Deed of Undertaking-ESSS
Exh. 11-ESSS Liquidation Report
Exh. 12 - Sample of ESSS Selling Price Bulletin
Exhibit 5 - ESSS Streamer/Biilboard
Exhibit 4 - Certificate of Accreditation
Exhibit 10 - ESSS Commodity Sales Invoice