SOP Library

SOP NO: MSD Ref. No. 97-05-22

Mission: Stabilization

Area: Grains Marketing (GM)

Activity: Distribution (GM-DN)

Title: Guidelines on the Sale of Rice Thru the Countrywide Development Fund (CDF)

Date Approved/Issued: 06/05/97

Date Effective: 06/15/97

Digest:

To set policies and procedures on the Sale of Rice thru the Countrywide Development
Fund (CDF) of Congressmen and Senators

The guidelines cover the mechanics of implementation of the said distribution scheme.

Memorandum '93 No. 67 dated 09 February 1993.

A. Special Allotment Release Order (SARO)/Notice of Cash Allocation (NCA).

1. For funding purposes, members of the Congress and Senate who would like to avail
of the
distribution scheme shall signify their intention by submitting to the Department of
Budget a and Management (DBM) their proposal to purchase rice from the National
Food Authority, copy furnished the Department of Agriculture, implementing
Agency (Beneficiary) and the National Food Authority.

2.Rice issuances to beneficiaries shall only be undertaken upon receipt of Notice of

Funded Project indicating the Special Allotment Release Order No. (SARO)
and upon release of
the Notice of Cash Allocation (NCA) to be issued by DBM to the Department of
Agriculture
copy furnished the Beneficiary and the National Food Authority.

3. NFA thru the Department for Treasury, Budget and Fund Management (DBTFM)
shall make
representations with the DBM for the release of the NCA for rice purchases of
Senators
and Congressmen.

4. NFA/DTBFM shall likewise make representation with the Bureau of Treasury (BTr)
for the
release of Cash/Peso equivalent of the NCA.

5. It shall be the responsibility of DMO to submit to the Special Project Office (SPO)
the
following documents as required by DA for billing purposes.

Original copies of Warehouse Stock Issue (WSI).

Purchase Order (P.O.) duly signed by concerned NFA Provincial Manager.

Requisition and Issue Voucher (RIV) duly signed and accomplished by the
congressman/Senator.

Certification of Rice Stocks Issuance issued by NFA COA Auditor.

Certification for Receipt of Rice Stocks by the Congressman/Senator

or his/her duly authorized representatives.

List of recipient/beneficiaries of rice indicating their full name and complete

 address, the number of bags and kilos received by individual receipt,
certified by the Barangay Chairman and attested by the Congressman/
Senator.

6. It shall be the responsibility of SPO to collect from the Department Agriculture (DA)
the corresponding Cash/Peso equivalent of the NCA/Rice Issuances.

B. Authorization for Release of Rice

Upon the receipt of the Notice of Funded Project indicating the Special Allotment
Release
Order No. (SARO) and upon release of Notice of Cash Allocation (NCA), the
Department for Marketing Operations shall prepare an authorization to the concerned
NFA Field Office
copy furnished SPO, to issue rice based on the Notice of Cash Allocation. The
authorization
which shall be approved by the Administrator shall contain the following information:

[] Name of Recipient/Authorized Representative of Senator/Congressman

[] Address/Delivery Point

[] Variety of Rice

[] Quantity in bags and kilos

[] Mode of Withdrawal (ex-NFA warehouse or delivered)

[] If delivered, amount of delivery fee

In some cases, upon approval of the Administrator, the NFA may allow the issuance of rice
while the SARO/NCA is being worked out at DBM. Said Rice Issuance shall be covered
by
a payment guaranty in the form of a 45-day post-dated check to be issued by the
Congress-
man/Senator concerned in favor of NFA. The check guaranty may induce the prompt
release
of CDF payment for the rice purchase and shall operate under the following conditions:

[] The 45-day post-dated check equivalent to the amount of the rice purchase
shall be forwarded to the NFA-C.O. Cashier's Office for safekeeping.

[] In the event of non-release of SARO by DBM within the prescribed 45-day

period, NFA shall undertake to deposit in its account said check guaranty
to serve as full payment for the rice issued to the Congressman/Senator,
 and as such, the arrangement to pay thru CDF is cancelled.

[] Under a situation wherein the NFA has already received the NCA
corresponding to the fund allotment for said rice purchase, NFA thru
DTBFM upon receipt of notification from DMO shall return the check
guaranty to the Congressman/Senator concerned.

C. Pricing

Rice shall be sold at Consumers' Price based on the existing Selling Price Bulletin (SPB).

D. Quantity

The quantity for issuance shall not exceed the number of bags equivalent to the amount
indicated in the Notice of Cash Allocation including delivery fee, if any. The delivery
fee
shall be based on existing NFA Delivery/Hauling Rates.

E. Withdrawal

1. Withdrawal of rice stocks shall be ex-NFA warehouse or delivered, if delivery

fee is included in the NCA.

2. Issuances shall be made only to the recipient or his representative/s upon

presentation of a Special Power of Attorney (SPA) or endorsement/authorization
from the Senator/Contressman indicating therein the specimen signature of the
person so authorized.

3. The WS II shall require at least two (2) sets of Identification Cards of the authorized
person for verification prior to issuance.

4. The WS II shall also authenticate the signature of the representative from the
speciment signature indicated in the SPA/Endorsement/Authorization.

F. Documentation

Documentation of all issuances under the said scheme shall follow the usual
Warehouse Stock Documentation System.

G. Reporting System

1. NFA Field Offices concerned shall periodically inform DMO/DAS thru wire within
24 hours after every issuance/release made, using the format prescribed below:

Name of Congressman/Senator: __________________________________

 Authorized Rep.:_________________________________

Wire/Memo/ Authorized Quantity Quantity Withdrawn Balance

Authority No. Bags Kilos Bags Kilos Bags Kilos
__________ _________ _______ _____ ______ _____ ______

AI No. WSI Nos. DATE ISSUED REMARKS

_____ ________ ____________ __________

2. A Terminal Report shall be submitted to DMO by the concerned Provincial

Office upon completion of the transaction or full withdrawal of the authorized
quantity.

The foregoing guidelines supersedes Memorandum '93 No. 67 dated 09 February 1993.