SOP No: GM-PR 17

SOP Library

SOP NO: GM-PR 17 (List of Exhibits/Attachments)

Mission: Technical Support Services

Area: Grains Marketing (GM)

Title: Empty Sacks (MTS) Procurement, Dispersal, and Utilization

Date Approved/Issued: 06/19/1995

Date Effective: 07/16/1995

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

MIS Accountabilities, Responsibilities and Documentation

1. The NFA MTS shall be stored in designated NFA warehouses/buying stations and shall be the accountability of the receiving warehouse Supervisors (Senior Grains Operations Officer)

2. Receipts of MTS by the WS II (Sr. GOO) from any transaction shall be documented thru the accountable form Empty Sacks Receipt (ESR).

3. The Classification of the MTS as to type (i.e. plastic or jute), capacity (in kg) and condition (i.e. brand new, serviceable, mendable or unserviceable) shall be determined by the Reg'l./Prov'l. Engr., WS II, and Sr. Calibrator/Calibrator.

4. No issuances for any purpose shall be made by the WS II (Sr. GOO) without authorization from the Provincial Manager/OIC. Said authorization shall come in the form of the approved Sack Issuance Authority (SIA). Approval of the SIA shall emanate from the Provincial Manager (PM).

5. Issuance of MTS by the WS II (Sr. GOO) for any transaction shall be documented thru the Empty Sacks Issue (ESI) which shall be prepared based on the SIA.

6. Receipts and issuances of sacks filled with grains shall be documented thru the Warehouse Stock Receipt (WSR) and Warehouse Stock Issue (WSI), respectively. The variety code of the stocks and the code of the sack used shall be indicated in the WSR/WSI. (Refer to Annex A for details on the MTS coding system). In case the sacks used as containers of a particular batch of stocks received/issued are of varied types/capacities/conditions, the quantity per type/capacity/condition shall be indicated in the WSR/WSI.

7. The WS II (Sr. GOO) shall be responsible in following up to the Provincial Manager (PM) regarding confirmation on the receipts of his MTS issuances including the corresponding ESR number.

8. It shallbe the responsibility of the Accounting Section to monitored check on the documentation of MTS transactions.

9. Details on the use, copy distribution and transaction involving MTS accountable forms and reports are contained in the existing Revised Warehouse Stock and MTS Documentation and Reporting System.

III. RESPONSIBILITIES

Procurement of Brand New MTS

B.1

Preparation of Request to Purchase Brand New MTS

1. The annual MTS requirement of the agency shall be determined/established by the Directorate for Marketing Operations - Operations Coordination Division (DMO-OCD) based on the following considerations :

a. latest MTS inventory of the agency per type/capacity and condition

b. estimated procurement and milling transactions for the year, as indicated in the annul Marketing Plan prepared by the Directorate for Marketing Operations Planning Division

2. The Technology Resource and Development Department (TRDD) shall be responsible in coming up with the specifications of NFA MTS and its codes. This shall also include MTS of imported stocks.

2.1 Authority to approve specifications, codes, test procedures and guidelines for evaluation and inspection of MTS shall be as follows :

Recomming Official - Director, TRDD

Approving Official - Asst. Administrator for Stabilization

3. The quantity and schedule of deliveries of the MTS needed by the agency for each transaction/activity shall be summarized by DMO-OCD in its recommendation re purchase of brand new MTS. The TRDD-Metrology Division shall provide the specifications for MTS purchases.

4. The specifications of authority for the approval to purchase brand new MTS shall be as follows :

Recommending Approval (R) - Director, DMO

- Director, TRDD

- AA for Stabilization

Approval (A) - Administrator

*Only if MTS specifications are new or revised

5. Purchase of brand new MTS shall be done thru public bidding to be undertaken by the NFA Committee on Bids and Awards - II. The Committee shall invite bids, evaluate proposals and recommend and/or make awards to the appropriate winning bidders. They are also empowered to call on any official or employee to provide technical support, whenever necessary.

6. A Pro-forma Contract for the Supply of MTS (Annex B) shall be executed between the winning bidder and NFA. The contract shall specify among others, the following: the quantity and specifications of the MTS to be supplied to NFA, the unit price of the MTS, terms of payment, schedule and place of delivery, provision regarding testing/rejection of MTS deliveries and penalties to be imposed on the supplier in case MTS deliveries do not conform with the NFA MTS standard specs and in the event of late deliveries, approving authority on contract for MTS purchases:

a. If contract is P2.0 M

and below - NFA Administrator

b. If contract is above

P2.0 M - DA Secretary

Copy distribution shall be as follows :

1 - DLA 6 - COA

2 - DMO 7 - R.O.

3 - AO 8. - CBA

4 - Supplier 9 & 10 - Notary

5 - DTFM 11 - TRDD

A copy of the contract shall be furnished to the concerned R.O.s prior to MTS

delivery.

B.2

Delivery of MTS by Sack Manufacturer to NFA

1. Concerned R.O.s shall be informed by the sack manufacturer of the date of delivery at least three (3) working days prior to actual delivery. No delivery of sacks shall be undertaken without an approved contract.

2. The purchased MTS shall be delivered by the manufacturer to the NFA designated delivery points or in the province in bales: five hundred (500) pieces per bale for plastic except PSW and two hundred fifty (250) pieces per bale for jute and PSW and in batches or truckloads.

3. All MTS for delivery to NFA shall be pre-weighed at the manufacturer's plant on a per bale basis. Each bale shall be pre-numbered and the corresponding weight per bale shall be properly indicated on the bale wrapping (i.e. height of the number/markings should be about 10 centimeters and black pentel shall be used).

4. Every delivery shall be covered by one (1) invoice and one (1) or more delivery receipts. The sack manufacturer shall prepare one DR per sack type per truckload. For easy reference, deliveries shall be marked in batches, using the following batch code structure:

XXXX

XXX

: : : : :___last 2 digits of contract year

: : : :

; : : :______________ first three (3) letters of contract

month

: : :

: : :________________________

first 4 letters of contractor's name

: :_____________________________ sequential no. of batch

: on roman numerals

:___________________________________ Batch

Illustrative Example:

First batch of delivery corresponding to the first DR and Invoice from Contractor LOPEZ.

Date of Contract is December 10, 1993.

Batch Code : B1-LOPE-DEC93

The batch code shall be used in referring to the particular delivery in all communications between central office and concerned field office.

Inspection, Testing and Evaluation of MTS Purchased and Delivered to NFA

C.1

Tests Conducted by NFA

Physical testing as to weight count and measurement of the MTS delivered to NFA shall be conducted by an inspection Team. The team shall be composed of the following:

1. NCR-MMO deliveries

Manager TSO - Team Leader

Rep. from Marketing Operations Group - Member

Rep. from the Director's Office - Member

COA Representative - Observer

2. Deliveries in Depots Outside Metro Manila

Regional/Provincial Engineer - Team Leader

Sr. Calibrator/Calibrator - Member

Regional SQAO/Prov'l. SQAO - Member

COA Representative - Observer

A Special Order to be signed by the Regional Director shall be issued for this purpose.

The above-inspection team shall determine conformance of the MTS delivering to NFA Space set for the particular purchase. Standard MTS specs are presented in Annex C. In the absence of any member an alternate member should be designated. In no case shall testing be conducted in the absence of any member/alternate member.

Physical test shall be conducted in the presence of the MTS supplier or his authorized representative. A technical inspector from the Internal Audit Services (IAS) shall also be present in the conduct of physical testing of the MTS for NCR-MMO of physical testing of the MTS for NCR-MMO deliveries.

However, for deliveries in depots outside Metro Manila an IAS deputized NFA field office personnel particularly the Provincial Investigator shall be present in the conduct of physical testing of the MTS. TRDD shall monitor delivery, inspection and acceptance of MTS.

C.1.1

Test Weighing

1. Upon delivery of the MTS to the NFA designated receiving warehouse, fifty percent (50%) of the number of bales delivered shall be subjected to test weighing to determine the average weight per bale/per piece.

2. Selection of bales to be subjected to test weighing shall be done at random. All sample bales shall be labelled/coded with corresponding invoice number, code, name of manufacturer/supplier, date of delivery, and bale number.

3. If any single sample bale falls below the standard weight specifications, one hundred percent (100%) weighing shall automatically be adopted.

4. All bales falling below the standard weight specification shall be segregated and rejected outright.

C.1.2

Test Counting

1. Ten percent (10%) of the test weighed bales delivered shall be test counted to determine the average number of pieces per bale. As in test-weighing, selection of bales to be test-counted shall be done at random.

2. The inspection team shall ensure that samples being test counted are firm and uniform through. MTS found with soft thin fiber or other unusual features shall be segregated. Acceptance of segregated MTS shall be subject to a separate ITDI test. In the event of failure, the sacks shall either be accepted subject to penalty or outrightly rejected by the Regional Director upon recommendation of the inspection team depending on the need of the Agency.

3. Sacks with factory defects (i.e. thread runs, busted or torn sacks) shall be rejected and deducted from the number of pieces per bale.

4. Checking of prints shall be undertaken while the MTS deliveries are subjected to test counts. The number of unprinted/misprinted/blotted sacks in the test-counted bales shall be considered as the average deficiency for the whole delivery for purposes of computing any penalty/price reduction.

5. If the number of sacks in the test-counted bales is less than the standard number of sacks per bale, additional MTS shall be required from the supplier/s to cover up the variance. However, this shall not in any way affect the amount of penalty to be imposed.

C.1.3

Tests as to Size/Measurement

1. From the test-counted bales, two (2) pieces shall be taken at random from every bale to serve as samples for determining the average size per piece. Samples shall be labelled/marked corresponding to the code of the bale from which it was taken.

2. To tests the size/measurement, MTS samples shall be measured in length at mid portion from the bottom sewings. The width shall be measured from the mid-portion of the sewings.

3. If, after inspection, the average size of the MTS samples is found to be below the tolerable size specification, the sacks delivered shall either be accepted by NFA but with corresponding penalty on the supplier or be rejected outright, depending upon the agreement/contract with supplier. Rejections due to deficiency in size shall be based on the conditions and limitations specified in Annex D.

C.1.4

Test for Seaming Measurements

The

same

samples taken for size measurement shall serve as samples for determining the average seaming measurements.

2. If test for seaming measurements are found below the tolerable seaming specifications, the sacks delivered shall either be accepted by NFA but with corresponding penalty on the suppliers, or outrightly rejected depending upon the agreement/contract with the supplier.

3. Seams shall be measured from the bottom. A 25 mm fold for turned edges is required. The stitch must be sewn 10 mm from the bottom.

4. The thread to be used must be rayon wire cord or polypropylene tape suitably designed for the purpose.

5. All stitches shall be uniform loose stitches or knots. The minimum number of stitches per decimeter shall be 12.

C.1.5

Preparation of Reports on MTS test for Size, Weight, Count and Seaming and Documentation of Acceptable MTS Deliveries

1. Results on test weighing, test counts and test measurements shall be recorded by the member of the Inspection Team in the Report on MTS test for Size, Weight, Count and Seaming (Exhibit 1). Said report shall likewise include the following information: MTS type/capacity, supplier's name, delivery date, truck number, number of bales, date of testing, Invoice Number and DR Number.

Copy distribution of said report shall be as follows:

Copy 1 - Inspection Team (TSO rep/Reg'l Engr.)

2 -

Log Cen OIC/P.O.

3 - WS II

2. A Certificate of Sampling (Exhibit 1A) shall be prepared by the head of the Inspection Team to be signed by the team members, supplier's representative, and noted by the Chief, TSD/Provincial Manager.

3. Only MTS deliveries which conform to the MTS standard specs in terms of size, weight count and seaming shall be covered by the ESR, with "Purchase" as nature of transaction, but said MTS deliveries shall still be subject to further testing by ITDI.

4. The rejected MTS shall remain in the NFA warehouse for safekeeping until their replacements have been received by NFA, but no ESR shall be issued for the rejected MTS. The supplier's Invoice and Delivery Receipt signed/stamped "RECEIVED" by NFA and the ESR for the acceptance MTS shall serve as reference in determining the exact quantity and specs of the rejected MTS being held in the NFA warehouse.

4.1 Indelible markings and/or paint shall be made by the Inspection Team on the MTS edges to prevent their "redelivery" to NFA.

C.2

Tests Conducted by ITDI

1. Tests for bursting strength, tensile strength, and mesh count of the MTS deliveries shall be conducted by the Industrial Technology and Development Institute (ITDI) for deliveries in Metro Manila and by the ITDI local/branch office for deliveries in the provinces. The ITDI tests shall be conducted only for MTS deliveries which conform to the standard specs as to site, weight count and seaming.

2. The number of pieces to be subjected to ITDI tests shall be a minimum of three (3) sacks for every truckload or one (1) sack for every 20,000 pieces.

whichever is higher. Selection of samples shall be done at random.

2.1 The samples for testing shall be properly labelled as shown in Exhibit 2, and submitted to ITDI by the Inspection Team

2.2 A second set of properly labelled samples shall be set aside for COA for purposes of post audit.

3. The ITDI testing fee shall be borne by the supplier, but shall be advanced by NFA, to be deducted later from the corresponding claims of the supplier.

4. The ITDI test results (Exhibit 3) on the original samples submitted shall be considered as official and shall be the bases for the final acceptance/rejection of the MTS deliveries. Only one (1) request from the supplier for retesting shall be entertained by NFA. However, NFA reserves the right to subject the delivery samples for retesting for its own internal purposes.

C.3

Evaluation of Test Results

1. In case of deliveries in Metro Manila, the ESR, Invoice, and Delivery Receipt Report shall be forwarded by the Logistic Center to the TSO. NFA-NCR. The ITDI test results shall be secured by the Inspection Team copy furnished COA representative. TSO/TRDD shall be furnished a xerox copy of the test results.

2. The results of the tests as to size, weight, count and seaming and the ITDI test results as to bursting strength, tensile strength and mesh count shall be evaluated by the TSO/Regional Engineer against the existing MTS standard specs. Its findings and recommendations shall be indicated in the Summary Report (Exhibit 4) which shall be certified by the Chief, TSO, NFA-NCR/Provincial Manager.

2.1 In case the test results show deviation/s from the standard specs but within the tolerable limit, final acceptance of the MTS delivery shall be recommended, but the corresponding penalty to be applied on the payment to supplier shall be computed by TSO/Regl Engr. using the method specified in the Annex D. A notice of Penalty Charges (Exhibit 5a) shall be issued to the supplier signed by the RD. The detailed computation of the penalties shall be attached.

2.2 If the deviation/s exceed/s the tolerable limit, the MTS delivery shall be recommended for rejection. A Notice of Rejection (Exhibit 5b) shall be issued to the supplier signed by the RD cc TRDD, DMO and concerned Committee on Bids and Awards.

3. A Certificate of Acceptance (Exhibit 6) shall be issued bythe P.O./TSO in the case of NFA-NCR after all specifications have been evaluated per Summary Report.

4. Rejected MTS delivery/ies shall be replaced by the supplier within thirty (30) calendar days from the receipt of the Notice of Rejection from NFA. However, no rejected MTS shall be pulled out from the NFA warehouse until acceptable replacement have been received by NFA.

4.1 Issuance of the rejected sacks previously covered by an ESR

shall be covered by a SIA and an ESI.

5. The receiving NFA office shall update TRDD cc DMO through wire of the status of MTS acceptance from suppliers. The wire shall contain volume for delivery, volume accepted, volume still for testing and evaluation. Wire update shall be sent every Friday during the testing and acceptance period.

C.4

Payment Procedures

1. Payment for MTS deliveries shall be made at the place of delivery. However, the supplier may request payment at Central Office.

1.1 For MTS deliveries in the province to be paid at Central Office, the results of the ITDI local office's tests, duly authenticated and countersigned by the Regional Engineer and noted by the Provincial Manager, the Report on MTS Test for Size, Weight, Count and Seaming, the Invoice, Delivery Receipt, ESR, Certificate of Sampling, Summary Report and Certificate of Acceptance shall be submitted by the concerned provincial office to TRDD.

1.2 If payment will be done in the Provincial Office, TSO/Regional/Provincial Engineer shall prepare corresponding voucher with the following documents as attachments: Summary Report, ITDI Test Results, Copy of the Contract with Supplier, Invoice, DR, ESR, and other supporting documents.

2. Processing of voucher and issuance of check to supplier shall follow the normal procedures on same. In case payment is thru Letter of Credit (LC), payment to supplier shall be arranged by the Directorate for Treasury and Fund Management (DTFM).

3. Details on the payment of MTS to suppliers shall be specified in the contract.

Local MTS Purchase

1. Only provinces with acute empty sack shortage shall be authorized to locally purchase MTS. Local purchase shall be approved by the Administrator as recommended by DMO.

2. A wire authority to purchase shall be secured by the requesting province/region from the DMO based on the projected sack requirement. The approval of the DMO Director shall include the quantity to be purchased and the prescriptive period within which the authority for local purchase may be exercised.

3. Quality specifications of MTS shall not be lower than the minimum requirements set by the TRDD for commercial grade MTS. MTS meeting the NFA standards shall be given first priority for local purchase.

4. Purchasers shall be done on a monthly basis not exceeding the monthly MTS requirement of the region. The authorized ceiling of the RD shall not exceed the authorized amount for the one month MTS requirement of the region.

5. The sacks shall be purchased at prices as per prevailing price bulletin/canvass as noted by COA. Local price may include transport, handling, and other incidental expenses. Payment shall be based on the PR/WSR/ESR issued.

6. The following alternative stop-gap measures shall be implemented:

6.1 Farmer's Sack Scheme (Palay/Corn MTS)

Only serviceable plastic sacks with 50-60 kg capacity shall be purchased by the Agency. The sacks must be containers of the stock being sold. When the sacks are emptied, it shall be used only for in-warehouse rebagging. Receipt of farmer's sack shall be documented through the ESR.

Funds for the purchase of farmer's sacks shall come from the Cereal Procurement Fund. The cost of the farmer's sacks shall be reflected in the Purchase Receipt.

6.2 Miller's Sack Scheme (Rice MTS)

Miller contractors shall provide the corresponding MTS needed for the milled recoveries based on the guaranteed milling recovery of the contracted quantity of palay to be milled. This shall follow the pertinent provisions of the existing SOP on Contracted Milling.

6.3 MTS Buy-back Scheme (Rice MTS)

The buy-back scheme shall apply to serviceable plastic MTS with NFA markings at 50 kg capacity previously utilized as container for local distribution, dispersal, or acquired from importation. The PM shall designate only one (1) warehouse and WS II who shall be responsible for accepting MTS from retailers. Receipts of MTS from retailers shall be documented through the ESR.

6.4 Local Purchase of Brand New Commercial MTS (Palay/Rice MTS)

Prior to MTS acceptance, a regional/provincial inspection Team shall be created to inspect/accept MTS. Inspection may be done at the Millsite and/or NFA warehouse. The team shall be composed of the following:

Chairman : Regional/Provincial Engineer

Members : Provincial Accountant

GOO I/GOO II (Calibrator)

RSQAQ

Milling Supervisor

: COA Representative

7. The code and standard weight of MTS to be used as basis in computing the net

kilograms of the stocks shall be as issued by the TRDD or as printed on the face of brand new sacks.

8. The P.O. shall exercise utmost discretion in implementing the priority scheme for any given situation. Consideration should be given to operational effectiveness, manpower availability, and cost efficiency.

9. The R.O. shall monitor closely and regularly the implementation of the stop-gap measures to ensure that the same are implemented within the bounds of control limits herein defined and in line with precepts of public accountability. It shall be guided strictly by accounting and auditing rules and regulations on canvass and payment procedures.

MTS Dispersa

1. Inter-warehouse, inter-provincial and inter-regional dispersal of MTS shall be effected only upon granting of authority which shall emanate from the following:

1.1 Inter-Warehouse

R - Provincial Operations, Officer (Sr. GOO)

A - PM

1.2 Inter-Provincial (within the region)

R - Regional Operations Officer (Supvg. GOO)

A - RD

1.3 Inter-Regional

R - DMO-OCD

A - DMO Director

2. Requests for MTS shall be wired by the needing province/region to the approving authority. The wire/radio message shall include the following information: quantity and type/capacity and condition of MTS needed, purpose, and approximate data needed.

3. In the evaluation of requests for dispersal/transfer of MTS (inter-provincia or inter-regional), the following factors shall be taken into consideration:

a) Existing MTS inventories of requesting province against requirement and volume of transactions.

b) Warehouse/province where the needed MTS are available

c) Transfer costs (e.g. transport costs, handling, etc.)

4. Authority for and actual issuance of MTS by source warehouse/province/ region to requesting warehouse/province/region shall be covered by a SIA and ESI, respectively, with "Dispersal" as nature of transaction.

4.1 for inter-provincial/inter-regional dispersal of MTS, the reference wire number (i.e. wire of approval from RD/DMO Director shall be indicated in the corresponding SIA).

5. Receipts of MTS from dispersal shall be acknowledged by the requesting province/region through wire sent to source province/region, cc. DMO-OCD. The wire shall state the quantity, type/capacity and condition of the sacks received, date of receipt and ESR No. issued by the receiving WS II.

5.1 Receipt of MTS by the WS II of the designated receiving warehouse shall be documented thru the ESR with "Dispersal" as nature of transaction.

6. The MTS shall be piled according to type/capacity and condition.

7. No dispersal of brand new MTS shall be undertaken until after the issuance of the Certificate of Acceptance.

8. No transfers of unserviceable/mendable MTS shall be allowed outside the province.

MTS Issuances to/Receipts from Procurement

1. Documentation of issuance/use of MTS for procurement purposes shall be as follows :

1.1 Issuance of MTS by the WS II to in-field or mobile procurement teams shall be covered by a SIA and ESI.

1.1.1 The quantity of MTS to be covered by the SIA shall be determined by the POO, in coordination with the concerned Procurement Team Leader based on the projected volume of stocks to be procured for a particular week.

1.2 Issuance/Use of MTS for in-warehouse procurement shall be covered by an ESI only. A SIA shall no longer be issued for in-warehouse procurement since the sacks shall remain in the warehouse.

1.3 The ESI shall be prepared weekly by the WS II (for in-warehouse procurement) to document the quantity of sacks used as containers of the stocks procured during the week. The quantity of MTS reflected in the ESI shall be equal to the total number of bags reflected in the corresponding WSRs covering the stocks procured during the week.

2. In case of in-field/mobile procurement, liquidation of MTS accountabilities by Procurement Team Leaders (Refer to Exhibit 7 for format) shall be done immediately upon completion of procurement operations.

2.1 All unused MTS shall be returned to issuing warehouse and an ESR shall be issued to the Team Leader as evidence of the return.

2.2 The ESIs, WSRs, PRs and ESRs shall be used as bases in the liquidation of MTS accountabilities.

2.3 The APM/POO shall see to it that team leaders submit their stocks and MTS liquidation within one month after procurement operations. This shall serve as supporting papers during his liquidation by COA.

2.4 In the event of non-liquidation within three (3) months despite repeated demands, the APM/POO shall report same in writing to the PM and COA Auditor who shall immediately liquidate the team leader.

MTS Issuances to/Receipts from Milling

1. Issuance of stocks for milling including the sacks used as containers of same shall be documented thru the WSI. The MTS to be used as containers of the milled stocks shall be covered by an ESI. The sacks containing the stocks to be milled shall not be the same sacks to be used for the milled stocks.

1.1 The sacks to be used as containers for the milled stocks shall be issued to the miller-contractor/Mechanical Plant Operator (MPO) upon issuance of the stocks for milling.

2. The Miller Contractor (in case of third party milling) and the MPO (in case of milling in NFA facilities) shall be held accountable for all NFA sacks and stocks issued to them subject to existing SOPs.

3. Stock delivery by millers and liqudation of miller's accountability shall follow the provisions for same in the existing SOP on Contracted Milling.

4. The return of empty sacks by the millers/MPO shall be documented thru the ESR while the milled stocks and sacks containing same shall be documented thru the WSR.

4.1 If there is a shortage in the sacks returned by the miller-contractor/MPO, the book value of the unreturned sacks plus interest shall be paid by him based on existing milling SOP. The book value of the sacks shall be in accordance with the Schedule of Book Values at the time of payment for all types of MTS issued by management.

4.2 If there is a change in the type/condition of the sacks being returned, the same shall be outrightly rejected and the book value of the sacks at the time of payment shall be paid by the miller-contractor/MPO.

MTS Issuances to/Receipts from Drying

1. The issuance of stocks for drying and sacks used as containers of same shall be documented thru the WSI.

2. As a general rule the sacks used as containers of the wet stocks shall be the same sacks to be used for the dried stocks. Hence, no additional empty sacks shall be issued to the MPO. It shall be the responsibility of the MPO to see to it that the sacks are dry prior to rebagging the dried stocks.

3. The dried stocks and excess MTS (if any) shall be returned by the MPO to issuing WS II who shall see to it that the stock issues have corresponding receipts. He shall secure the drying report of the MPO. The excess MTS shall be covered by an ESR while the dried stocks and sacks containing same shall be covered by a WSR.

4. In case there is a shortage and/or change in type/condition in the sacks returned by the MPO, the provisions in G.4.1 and G.4.2 respectively, shall be followed.

In-Warehouse MTS/Stock Transactions

I.1

MTS Issuances to/Receipts from Reclassification

This shall follow the provisions under Item II.A of SOP No. GM-DS01 on the Implementing Guidelines on the Disposition of Empty Sacks effective June 1, 1991.

I.2

MTS Issuances to/Receipt from Rebagging

Issuance/use of MTS for in-warehouse stock rebagging shall be covered by an ESI only. It shall indicate the AI number for rebagging.

2. The AI for rebagging shall carry with it the authority to use MTS. Only serviceable sacks shall be used for rebagging purposes.

3. The ESI shall be immediately prepared after rebagging transactions. The quantity of MTS reflected in the ESI shall be equal to the total number of bags reflected in the corresponding WTS covering the stocks rebagged.

4. MTS for use in rebagging in warehouses other than the issuing warehouse shall be covered by a SIA and ESI.

5. All MTS receipts from rebagging shall be immediately documented thru ESR.

I.3

MIS Issuances to/Receipt from Mending

1. Issuances to mending shall be covered by a SIA and ESI.

2. Mended MTS shall be received and classified as serviceable in the ESR.

3. Payment to the mending/labor contractor shall be based on his copy of the ESR.

I.4

Use of MTS for Pallet Matting

1. Only mendable and unserviceable MTS shall be used for pallet matting.

2. The quantity and specs of MTS used for pallet matting shall be recorded by the WS II in the MTS logbook. A SIA and ESI shall be issued for the MTS issuances in the same warehouse. If the MTS shall be used for pallet matting in other warehouse, said transaction shall be covered by a SIA and ESI with transfer as the nature of transaction.

MTS Issuances to/Receipts from Lending

1. MTS lending with deposit to farmers' associations/cooperatives, government agencies and lending institutions shall be covered by a SIA and an ESI. The remarks portion of the SIA and ESI shall be marked as follows : "MTS Lending with Deposit"

2. The sacks borrowed shall be returned, whether filled or empty, to issuing warehouse.

3. Return of sacks filled with stocks shall be documented thru the WSR while the empty/unused sacks shall be documented thru the ESR. The remarks portion of the WSR/ESR shall be marked as follows : "MTS lending with deposit" and the reference ESI number shall be indicated to facilitate monitoring of sacks borrowed and returned.

4. For details on the lending terms of MTS with deposit, refer to SOP No. GM-G002 on MTS Lending with Deposit to Farmers Associations/Cooperatives, Government Agencies and Lending Institutions effective September 1, 1984

MTS Issuances to Composting

1. Only unserviceable MTS shall be used to contain compost for sale.

2. Issuances to composting shall be covered by a SIA and ESI.

Reporting and Monitoring System

1. An MTS Logbook (Exhibit 8) shall be maintained by the WS II accountable for the MTS transaction to facilitate the monitoring of receipts and issuances of MTS and speed up the preparation of MTS reports. The entries shall be made on a per MTS type/capacity basis.

2. A MTS Bin Card (Exhibit 9) shall be maintained by the WS II per pile of MTS. The bin card shall contain the following information: type/capacity/and condition of MTS, pile number, date of receipt/issue, quantity of MTS received/issued (i.e. quantity of MTS added/subtracted from the pile) and cumulative balance totals. One Bin Card shall be conspicuously attached to the sack pile and another copy shall be kept as control file in the office warehouse.

3. The Weekly MTS Inventory Reports shall follow the existing Revised Warehouse Stock and MTS Documentation and Reporting System.

4. An MTS Reconciliation Report (SACKKREP) on or before the fourth working day of the succeeding month. The report shall contain the P.O's inventory of MTS per type/capacity/condition and use (e.g. for procurement, palay milling, drying, etc.), as of the last day of the reporting period. The report shall be submitted thru courier of fax (where available).

5. A Monthly Consolidated MTS Reconciliation Report (Exhibit 11) shall be submitted by the R.O. to DMO-OCD on or before the seventh (7th) day of the month following the period covered. The monthly report which shall be prepared by the ROO, and certified correct by the RD shall be used to monitor the MTS Balance of the agency. The report shall be submitted thru courier or fax (where available).

6. A bi-annual (ending March and September) provincial inventory count of stocks and MTS (PORO-OPER-06-B88) shall be submitted by the P.O. to the R.O. The report shall include the actual inventory on hand and per book and condition of stocks/MTS per warehouse.

7. A consolidated Inventory Count of Stocks and MTS (ROMO-OPER-07-B88) shall be submitted by the R.O. to DMO. They shall contain the Actual Inventory on Hand and per book and the condition of stocks/MTS per province per region.

Accounting Treatment

For MTS accounting system, please refer to SOP on Accounting for MTS.

IV. FLOW CHART
Top Page

EXHIBITS

No Exhibit/s Available for this SOP