SOP Amendment / Addendum

Date : 03/24/1998

SOP Amedment / Addendum No. : TS-ES07.A
Title : Amendment to the SOP on Cooperative Development Incentive Fund (CDIF)
Digest :

For the information, guidance and compliance of all concerned, published hereunder is the amendment to SOP No. TS-ES07 entitled SOP on Cooperative Development Incentive Fund which took effect January 1, 1997.

Item No. VI.A.9 of the Implementing Guidelines shall hereby read as follows:

9. XXX
XXX
XXX

Likewise, the CDIF may be utilized by the FOs for the following:

1. XXX
2. XXX
3. XXX
4. As cash bond of FOs willing to enter into milling/remilling
contract with NFA;
5. Purchase of work animals such as carabaos, cows and horses;
6. For the FO's Management and Administrative Expenses,
however, this shall only be up to a max. of 10% of their
accumulated CDIF;
7. As payment of production loans to accredited lending institution
(LBP, PNB and others) and;
8. For the acquisition of communication facilities, like radios,
cellular phones, beepers, etc.
9. For rice purchase from NFA and;
10. As working capital, the availment of which shall be subject to the
following conditions:

10.1 FOs/Cooperatives whose accumulated (upgraded) CDIF/
CIF balance is P20,000 and below may use/withdraw the
total amount for working capital, provided they submit the
needed Assembly Resolution;

10.2 FOs/Cooperatives whose accumulated (upgraded) CDIF/
CIF balance is more than P20,000 may use/withdraw a
maximum of P20,000.00 plus 50% of the amount in excess
of P20,000.00 for working capital, provided they submit the
needed Assembly Resolution.

Re-availment of the CDIF/CIF for working capital shall require the submission
of the F.O.'s Statement of Assets and Liabilities of the current period and a
Financial/Operational Report on the utilization of the previous withdrawal.

Page 6, Item No. C, on the Remittance of CDIF to Provincial Office shall be
amended to read as follows:

1. All Provincial Offices shall be required to submit to EXD a CDIF
Performance Report not later than 15th of every month.
This shall be used as basis by the EXD in evaluating/computing
the CDIF to be remitted to the concerned Provincial Office.

2. Likewise, all succeeding requests for replenishment of the CDIF
shall be evaluated and endorsed by EXD to DTBFM.

Page 8, Item No. D, on the Withdrawal from the CDIF shall hereby read as
follows:

1. XXX
2. XXX
3. XXX
4. XXX
5. XXX
6. If the F.Os intend to deviate from the original purposes of their CDIF, a
Request for Deviation shall be submitted to the NFA Provincial Office
and shall be forwarded to the NFA Regional Office for further
evaluation/approval.

In cases where, after withdrawal of the CDIF, the project was found to be
non-existent, the NFA provincial office shall automatically cancel the F.Os
accreditation and shall ban the concerned F.O. from any further transaction
with the NFA.

Page 9, Item No. F, on the Monitoring System shall be amended to read as
follows:

F. Monitoring System

1. A CDIF Performance Report shall be prepared monthly by
EBDPS/MOS. It shall serve as reference for monitoring CDIF
balances and use. It shall be submitted to EXD cc: R.O. and P.O.
Accounting Section not later than the 15th of the succeeding month.

2. The EBDPS/MOS shall monitor the CDIF balances by maintaining
an index card per F.O. Their CDIF balances should tally with that
of the Accounting Section.

3. A CDIF Utilization Report shall be submitted by the
Regional Office monthly to AO cc: OAAO/DMO/DTBFM/EXD.
This contains the amount of CDIF released, its balance, name and
address of F.Os, PHF acquired, approved amount and date

Corollary to this, an inspection shall be conducted by EBDPS/MOS on
the CDIF funded projects to ascertain that the intended purpose of the
CDIF was attained. An Inspection Report shall be prepared
and submitted to the EXD cc: R.O.

4. EXD in coordination with DMO, DAS and MSD shall conduct an
annual evaluation on the utilizatio and problems encountered under
the CDIF and prepare an evaluation report on CDIF funded PHF
(Exhibit 8 of original SOP).

Further, the attached Exhibit on the Withdrawal of Cooperative
Development Incentive Fund (CDIF) shall now replace Exhibit 3 of
said SOP.