SOP Library

SOP NO: FS-CS06

Mission: Corporate Administration

Area: Financial Services (FS)

Activity: Cashiering (FS-CS)

Title: SOP ON REMITTANCE AND CASH BALANCE MONITORING AND REPORTING SYSTEM

Date Approved/Issued: 08/01/89

Date Effective: 08/01/89

Digest:

A. Backgrounder

the fund management system of NFA is establlished to guarantee adequancy of

funds for local and reportation operation and to ensure proper application of
available funds. The system requires the regular monitoring and reporting of
available funds for ready use of management in its decision-making process.

In order to serve this need, the formulation of a uniform system of reporting and
monitoring of cash balances, as well as of fund remittances form the field is
necessary.
 1. To provide a uniform system of reporting fund remittances and fund balances
by the different field offices/branches to the central Office.

2. To facilitate the tracking down of fund transfer transaction and confirm their
reciept at the receiving end.

The sytem provide policies and procedures in the fast retrieval of data concerning
cash transaction from the field office so as to effectivcely mmonitor fund
remittances and fund balances and for a more effecient fund management and
control. The timely perparation of the needed financial repports for the
management and interested financial instiutions.

1. SOP no. FS-CS01 - cash Collection and Deposits

2. Memo #17 - Implementing Guidelines on Field Office Bank Account

A. Bank Accounts

1. The following set of bank accoutns shall be used in depositing, withdrawing and
transferring of fund from the Central Office to the field offices or vice-versa.
Bank accounts indicated herein may be closed or new account may be opened
dependingon the need of the agency or as may be recommended by the
Director for Accounting and budget.

a. Drawing Acconts:

a.1 Cereal Procurement Fund (CPF) - combo account used for grains
procurement.
 a.2 General Operations Fund (GOF) - a combo account which shall be
utilized for grains
operation and underwhich the following fund control account are covered.

a.2.1 Grains Operation Expense (GOE) - for payment of personal

services and maintenance and other operating expenses
including those expenses for impormation activities.

a.2.2 Capital Outlay Fund (COF) - for the purchase/constrution of

fixed assets.

b. Collecting Accounts:

Collecting from various sources shall be deposited under the corresponding

saving account spacified below:

Savings Account
Type/Source of Collection

b.1 Local Cereal Collection (LCC) sale of

local rice

b.2 Important Rice Collection (lRC) sale of

important rice from Australia and China

b.3 Important US Rice Collection (USPL) sale of US

rice (USPL)

b.4 Imported Corn and Soybeans (ICS/ICC) sale of

imported
corn,soybeans
and
soybeanmeals

b.5 Wheatflour Collection (WFC) sale of

Wheatflor

b.6 National Productivity Fund (NPF) Collections

in connection
with the
productivity
program

b.7 Miscellaneous Collection (MSC) other

collection
 including
collection from
registration and
licensing
activities for
grains and non
grains

B. BOOK OF ACCOUNT

1. The drawingaccounts (a) shall be recorded under Cash, Other Banks, current
while the collection account (b) shall be recorded onder Cash. Other Banks,
Savings.

2. Subsidiary ledger shall be maintined for each bank where NFA account ar beinn
maintaned. Sub-SL shall be mainted for each bank account and for drawin
accounts, fund control SL shall be maintained for each fund control acount.

To illustrate:

General Ledger : Cash, Other

Banks, Current
Subsidiary Ledger ; PNB
Sub-Subsidiary Ledger : PNB-GOF
Fund Control SL : PNB-GOF-CPF

3. The sub-columns affected in the books of orginal entry, i.e. CCRJ, shall state the
specific fund control SL account to facilitate posting in subsidiary ledger and
reconcilition therefor.

C. Fund Monitoring

1. Collection accounts

a. An official cash book for each collection account shall be maintained by

the Regular Collecting Oficer.

b. The official cash book shall be updated daily top enable the collecting
officer to monitor fund balances at the end of each day.
c. The regular Collecting Officer shall likewise check the remittances of
collection accounts to ensure that collection and deposit are remitted to
C.O. every Thursday of the week or as often as necessary whenever the
balance is P500.,000 and more. The bank however is allowed to maintian a
fund balance of P1,000 each account.
 Collection deposited with the PNB provincial branches shall be remitted to
the PNB-NFA Central Office branch thru telegraphic transfer/bank
draft,Collection deposited with commercial banks shall likewise be remitted
to their Head Offices.

2. Drawing Accounts

a. The regular Disburshing Officer shall maintian the Official Cash Bookfor
each drawing account. Same shall be updated daily to monitor fund
balances.

b. All checks isued and bank debit memoranda shall be posted to the credit
column of the cash book, and remittance received shall be posted to the
debit column.

c. Remittance recieved by field officer from Central Office shall be checked

against the debit advice sent by DAB-COAD and wire from DTFM. The
receiving field office shall confirm receip thereof.

d. A cash book shall also be maintained by the disburshing officer to monitor

balances of imprest funds under his accountability.

D. Reporting of Remittance and Fund Balances

1. Transaction fot the wek ending every Wednesday (Thursday to Wednesday

transaction) shall be sumarized and reported to Central Office DTFM Director
every Thursday thru wire (CASHMON-Exhibit 1)

2. The cash book and bank passbook for collection and drawing accounts shall be
reviewed by the Provincial Accounts for use as bases for the report.

3. The weekly reports shall be consolidated by DTFM Cash divivsion to determine

the amount funds floating at the field offices. This shall be advised to the DTFM
director every Monday of each week for report to the Managament Committee
(Exihibit3):

4. Undeposited collection and unremmitted deposits as reflected in the week

reports shall be noted. DTFM Cash Division shall advise field offices for
appropriate action.

E. Reconcilition of Fund Transfers

1. Remittances by field offices as reported in the CASHMON shall be posted to the

record of Fund Remittance (Exhibit 2) to facilities the reconcilition of remittance
against bank credits. Likewise such ledger shall provide an immediate reference
for followiing - up. Fund transfer not credited by the bank.
 2. Recording of the wire to the Record of Fund Remittancesshall be on a per
transaction basis and likewise the bank ticket (for bank credits) shall be record on
a per ticket basis, When recording, the wire reference number and the bank ticket
number shall be indicated to facilities reconciliation.

3. In reconciling remittances reported by the field offices to amounts credit by the

bank at the Central Office accounts, the transit time shall be determined. the
transit time shall Saturdays and Sundays sshall servr as a quage in determining
the efficiency of the bank.

4. The concerned field office/local bank and/or head office bank shall be
immediately notified of any discrepancy between what has been reported by the
field office and what has been credited by the bank to immediately effect
necessary adjusments.

1. Regular Collection Officer (Regular Disbursing Officer)

a. Collections in behalf on NFA and deposit the same the authorized

depository banks using the accounts indicated in II.A.
b. Updates cash book for daily collection and deposit and also for
disbursement.

c. Undertakes weekly or at an earlier day remittance of funds to Central

Office.

d. Request bank to update saving passbook for remittances/bank

charges/debit made.

e. Prepares wire on the amount of remittance and corresponding fund

balance based on cash book and passbooks.

2. Provincial Manager

1. Approves wire for transmission.

2. Approved all application for telegraphic transfer/ bank draft for remittance
and credit the corresponding accounts in the Central Office.

3. Oversees the effective and efficient management and control of funds in the
province.

3. Provincial Accountant
 a. Records collection and deposit based on the Report of Collections and
Deposits and disbursements based on the list of daily paid voouchers
(cash and check)

Likewise records remittances made to/from Central Office.

b. Reviews cash book and passbook to check accuracy of weekly report.

Notes on deposited collections. Coordinates with the bank whenever
necessary matters regarding the remittances made.

4. DTFM - Cash Division

a. Consolidates field office fund balances for the top management used and
analyzes CASHMON for fund balances maintained by field offices.

b. Advicses DAB - Budget Divivsion and wire field offices for funds remitted.

c. Reconciles remittance reported by the field offices with the amount

credited by the bank head offices. Updates record of fund remittances.
Check completences of bank tickets against report of remittances by field
office.

d. Reminds the bank for sudmitted bank tickets.

e. Reminds field offices on underposited collections and unremitted deposits

based on weekly report.