SOP Library

SOP NO: TS-ES04

Mission: Stabilization

Area: Technical Services (TS)

Activity:

Title: GPEP Post-Harvest Facility Assistance Program

Date Approved/Issued: 08/22/94

Date Effective: 06/01/94

Digest:

To provide policies and procedures for the effective implementation of the Postharvest Facility
Assistance Program (PHFAP).

This defines the responsibilities in the proper disposition, granting/liquidation/replenishment, of

the Facility Assistance Fund, monitoring and reporting system and the accounting treatment for
the PHFAP transactions.
A. Postharvest Facility Assistance Program

1. The PHFAP shall have six major components to wit:

1.1 Institutional Development Program (IDP) - this component is provided to

enhance the farmer member's knowledge and awareness of improved
postharvest operations and practices. This shall consist of technical assistance
and training program modules whose substance and content will depend on the
level of development and operation of the Farmers' Organization (FO).

1.2 Multi-Purpose Drying Pavement (MPDP) Facility Assistance - this shall be

provided to qualified FOs whjo are actively engaged in the provision of
production loans and exhibit potential to engage in the trading of palay. Through
the provision of the MPDPs, the FOs can start to provide drying services to
farmer members and eventually engage in palay trading activities.

The Multi-Purpose Drying Pavement (MPDP) Facility Assistance shall be

governed by the following policies:

a. The FO beneficiary must have a lot that can be leased to NFA on a long
term basis with the ownership of the lot to be evidenced by a deed of
donation or deed of sale. The FO beneficiary shall enter into a lease
agreement with NFA concerning the lot at a minimal fee of P1.00 per year
for a period of fifteen (15) years.

b. The lot site for the MPDP must meet the following requirements:

b.1 The lot to be used for the MPDP must have a minimum area of
four hundred twenty square meters (420 sq. m.).

b.2 The lot where the MPDP construction shall be made should
preferably be rectangular in shape with a minimum side dimension
of ten meters (10 m.) and must be free of any obstructive structure.

b.3 The lot should be situated in a place where there has been no
previous history of flooding and where the site and topography
permits the construction of a pavement dryer.
c. The maximum allowable fund assistance for the construction of the MPDP
shall be FIFTY THOUSAND PESOS (P50,000.00). This shall cover the
dryer material cost only. All other cost that will be incurred in the
construction of the MPDP over and above the dryer assistance amoutn,
shall be handled by the beneficiary.

d. The FO beneficiary shall be responsible for the construction of the dryer

pavement according to the following specifications:

d.1 Pavement thickness= 4 inches (0.102 m.)

d.2 Volume of concrete
mixture = 42.68 cu. m.
d.3 Concrete mixture = class B (1:2.5:5)
cement (portland
94 lbs./bag) = 277 bags
sand = 18.7 cu. m.
gravel = 37.56 cu. m.
tire wire
(0.2 kg/sq.m) = 8.4 kg.
reinforcement bar
(8 - 10 mm) = 280 pcs.

e. Upon completion of construction process, the API, as authorized by NFA,

shall issue a Certificate of Completion. The completion certificate shall be
supported by a Certificate of Inspection.

f. The provision of the MPDP shall be on a turn key basis. This means that
the MPDP, after construction, shall be leased back to the FO beneficiary
at a minimal fee of ONE PESO (P1.00) per year for a period of fiteen (15)
years. The FO beneficiary must agree to abide by the terms and
conditions contained in the Lease Contract to be undertaken with the NFA
through the API.

g. In areas where there are no qualified FOs, the MPDP can be channeled
to NFA and other agencies of the Department of Agriculture or LGUs,
provided that the lot where the MPDP is to be constructed shall be so
located that the farmers can easily use and access it. In cases where the
MPDP has been channeled to NFA, the NFA Provincial Office shall
coordinate with the API in identifying possible sites for the MPDP within
the NFA warehouse vicinity.

Except when the MPDP site is within NFA premises, the lot area where
the MPDP is to be constructed shall be leased to NFA by the concerned
DA Agency or LGU at a minimal fee of ONE PESO (P1.00) per year for a
period of fifteen (15) years.
 No lease contract for the utilization of the dryer, facility shall be executed
for MPDP's constructed on the premises of NFA and other DA agencies
or LGUs. Instead, an authorization to utilize the dryer facility shall be
issued by NFA/API to the FO beneficiary.

h. At the end of the lease period, the lot, with the subsequent improvements,
shall be returned back to the FO Lessor and/or DA Agency/LGU.

1.3 Mechanical Dryer (MD) Facility Assistance - this component was designed to
give assistance to FOs who are already engaged in palay trading practices, but
whose operations are constrained by their drying capabilities. Through the
provision of MDs, the FOs cna increase their volume of operation, thus
improving their trading capabilities.

Implementation of the Mechanical Dryer (MD) Facility assistance shall be in

accordance with the following policies:

a. The MD shall be provided in two modes - once through the NFA

Cooperative Incentive Fund and the other, through a regular stand alone
mechanical dryer assistance.

The NFA-CIF MD facility assistance shall cater to FOs who deliver paddy,
rice or corn to NFA, while the regular stand alone MD facility assistance
shall be directed to other FOs.

b. The FO beneficiary for the MD facility assistance must be involved in

grain trading operations, or must exhibit clear potential to engage in active
custom drying operations as indicated by the size of hectarage and
volume of production being handled as well as the willingness of its
members to avail of the custom drying services of the FO.

c. The NFA-CIF and the regular stand alone mechanical dryers facility
assistance shall have a maximum allowable fund assistance of ONE
HUNDRED FIFTY THOUSAND PESOS (P150,000.00) and ONE
HUNDRED THOUSAND PESOS (P100,000.00), respectively. All other
cost, including administrative and legal cost (e.g. freight, license, taxes,
insurance, etc.) to be incurred in the purchase, delivery and installation of
the mechanical dryer, which shall be over and above the facility
assistance fund amount, shall be assumed by the FO beneficiary.

d. The FO beneficiary shall choose the type of the mechanical dryer from a
list of accredited commercially available dryers which shall be provided by
NFA or the API/PTC. The mechanical dryer must satisfy a minimum four
(4) ton per day capacity requirement to ensure economics of scale.
e. The API shall assist the FO recipient in the selection of the mechanical
dryer that is appropriate for the FO's operation.

f. Once the type of mechanical dryer is identified, the API shall cause the
purchase, delivery and installation of the same, at the shortest period of
time.

g. In effecting the distribution of the regular stand alone mechanical dryers,

the API shall separately conduct bidding exercises for their respective
mechanical dryer targets. In the search of the manufacturers who will
participate in the program, the following requirements, on top of those to
be required by the Pre-Bidding and Accreditation Committee (PBAC),
must be satisfied:

g.1 The Manufacturer must be in the business of manufacturing,

assembly and distribution of farm machinery and equipment for at
least six (6) months prior to the bidding and must be registered with
the Department of Trade and Industry.

g.2 The Manufacturer must demonstrate management capability and

financial viability (minimum net worth of P200,000.00) to produce
the mechanical dryer.

g.3 The Manufacturer must demonstrate the capacility to manufacture

the mechanical dryer in accordance with sound engineering
standards and specifications.

g.4 The Manufacturer must have a strong provincial network to provide

for the parts and after sales services.

g.5 Once selected, the Manufacturer must allow government agencies

to conduct testing and evaluation exercises on a prototype and
other randomly selected units so as to safeguard the machine
performance.

h. The terms and conditions for the purchase of the mechanical dryer shall
be as follows:

h.1 Deed of Sale shall be executed by the supplier, in favor of NFA, to

evidence purchase of the mechanical dryer aside from the sales
invoice.

h.2 The Manufacturer/Supplier must guarantee the subject machanical

dryer to be free from any defect. The Manufacturer/Supplier
further warrants the following:
 h.2.1 To replace/repair the unit at no cost to NFA or the FO
beneficiary in case any defects are manifested during the
test-run and up to two (2) months after signing of the
Certificate of Acceptance; and

h.2.2 To render free repair services on the unit within six (6)
months from signing of the Certificate of Acceptance.

h.3 The Manufacturer/Supplier must be willing to give free hands-on

training program to prospective farmer operators.

i. After completion of delivery, installation and test-run of the mechanical

dryer and if found to be in order, the API, as authorized by NFA, shall
issue a Certficate of Final Acceptance. The acceptance certificate shall
be supported by a Certificate of Inspection and the paid sales invoice.

j. Upon acceptance of the mechanical dryer by the API in behalf of NFA, it

shall be leased by NFA to the FO beneficiary at a minimal fee of ONE
PESO (P1.00) per year for a period of five (5) years. The FO beneficiary
must agree to abide by the terms and conditions contained inn the Lease
Contract.

k. The FO beneficiary must commit to use the mechanical dryer as an

integral part of its operation. Maintenance and insurance costs for the
mechanical dryer shall be handled by the FO beneficiary for the entire
duration of the lease period.

l. The FO beneficiary shall have the option to purchase the leased unit at
the price of FIVE HUNDRED PESOS (P500.00) upon the termination of
the five (5) year lease agreement.

1.4 Farm Level Grains Center 1 (FLGC 1), - this was particularly designed for FOs
who have shown strong capability in palay trading activities. Given in the form of
soft loans, the FLGC 1 will unable FOs who are already engaged in trading
activities to step up their level of trading operaiton. The FLGC 1 shall provide for
the acquisition of storage (warehouse) and drying facilities.

The Farm Level Grains Center 1 shall be governed by the following policies:

a. To qualify for the FLGC 1 loan assistance the FO must satisfy the
following requirements:

a.1 The FO must have been in operation for at least two (2) years and
with at least 100 farmer members or tilling at least 100 hectarage
of farm land.
 a.2 The FO must be duly accredited with the QUEDANCOR.

a.3 The FO must be willing to put up an equity in the form of land, labor
or materials. The land equity must have a minimum site area of
one thousand square meters (1,000 sq. m.).

a.4 A real estate mortgage shall be required on the lot and the facilities
to be established amounting to more or less SEVEN HUNDRED
THOUSAND PESOS (P700,000.00).

b. The facility loan under theFLGC 1 shall be payable semi-annually within

five (5) years, with a grace period of one (1) year on the principal
payments.

c. A grace period of ten (10) days shall be allowed for the payment of each
amortization.

d. A surcharge of two percent (2%) per month shall be collected on the

unpaid amortization until the date of actual payment which must not go
beyond the maturity date of the total loan.

e. Surcharges of two percent per month will be collected for the payments
made beyond the grace period computed from the scheduled date of
amortization until the date of actual payment.

f. A penalty of two percent (2%) per month on the unpaid principal upon the
demand for payment or maturity date, whichever comes first, shall be
imposed until the date of actual payment.

g. All other existing and subsequent lending policies governing fixed assets
financing shall be applied to all FLGC 1 granted.

1.5 Farm Level Grains Center 2 (FLGC 2) - also in the form of soft l oans, the FLGC
2 was designed for FOs who exhibits strong potential to integrate processing and
marketing activities. The FLGC 2 shall provide for the acquisition of postharvest
facilities such as warehouses, rice mills, dryers, trucks and other auxiliary
equipments, which are critical to the success of the business venture.

The policies and procedures for the implementation of the FLGC 2 shall be as
follows:

a. The FLGC 2 shall be financed under a financial scheme to be agreed by

the NFA and the LBP. The financial scheme shall include a provision
requiring prospective FO beneficiaries to put up an equity equal to five
percent (5%) of the loanable amount.
 b. To qualify for the FLGC 2 facility loan assistance, the FO must be an LBP
eligible organization and must be endorsed by the DA-Regional Field Unitl

c. The term of the FLGC 2 loan shall be based on the projected cash flows
of the FO and the number of economic life of the asset but not to exceed
ten (10) years inclusive of the payment grace period.

d. A payment grace period may be granted on both principal and interest,

which shall be based on the projected cash flow of the FO but not to
exceed two (2) years.

e. The deferred interest during the grace period shall be amortized (interest
free) in equal amortization with the principal of the loan.

f. The loan repayment may be quarterly, semestral, or annually depending

on the capability of the project to generate cash.

g. All other existing and subsequent LBP lending policies governing fixed
assets financing shall be applied.

1.6 Working Capital Loan (WCL) - this was designed to assist FOs, who availed of
the FLGC program, to really engage in the trading and processing activities. By
providing the WCL, the FOs can increase their operating capital, thus, expanding
their level of operation.

The policies and procedures for the implementation of the WCL shall be as
follows:

a. The WCL shall be made available at an interest rate of fourteen percent

(14%) per annum.

b. The WCL shall be payable semi-annually within three (3) years with the
first amortization to be made on the sixth month after the release of the
loan.

2. The PHFAP Beneficiary

The Farmers' Organization shall be the main beneficiary of the PHFAP. This is to
recognize their role in harnessing and mobilizing collective action towards the
development of the agricultural industry. However, for a FO to qualify as beneficiary,
the following requirements must first be met:

2.1 The FO must be based in a GPEP province and must have been a recipient of
other GPEP interventions such as the certified seed subsidy,
infrastructure/irrigation support, package of technologies, market and credit
facilities.
 2.2 The FO must be registered with a government regulatory office (e.g. CDA, SEC).

2.3 The FO must not have been a recipient of the same postharvest facility program
component from the Department of Agriculture for at least a period of one year.

2.4 The FO must exhibit financial viability to maintain the postharvest facility that will
be acquired.

2.5 The FO must commit itself to participate in any training activities which may be
required.

2.6 The FO must have the willingness to shoulder any additional cost (e.g. taxes,
insurances, etc.) which may accrue from the acquisition of postharvest facilities.

2.7 The FO, if already a recipient of one program component, may be allowed to
become a recipient of another program component, provided the FO satisfies all
the other requirements as stated in par. 1 to 6.

3. The PHFAP Program Implementors

To expedite program implementation, the following committees and agencies shall be

assigned as follows:

3.1 Postharvest Steering Committee (PCS) - this committee shall be responsible for
providing policy directions in the use of the NFA Thai Rice Importation Proceeds
and monitoring of the progress of the program implementation. Further, the
committee shall serve as the approving body, particularly, on the guidelines
governing the postharvest components of the GPEP.

3.2 Postharvest Technical Committee (PTC) - this committee shall be responsible for
the preparation and consolidation of the specific activity components of the
postharvest program through active consultation with the various
agencies/sectors. This committee shall also monitor the program
implementation so as to ensure the timely and effective delivery of program
interventions.

3.3 Agency Program Implementors (API) - this refers to the different

agencies/sectors who shall spearhead the implementation of the PHFAP. This
shall have responsibilities as provided in the Memorandum of Agreement and/or
Lease Contract.

The Agency Program Implementors are:

PH PROGRAM AGENCY IMPLEMENTOR

 IDP ATI, NAPHIRE, NAFC, NFA
MD NAPHIRE, LGUs, NFA, NAFC,
QUEDANCOR
MPDP DA-RFUs, LGUs
FLGC 1 QUEDANCOR
FLGC 2 LBP
WCL QUEDANCOR

To promote farmer participation in the program implementation, the regional and

provincial representatives of farmer-based people's organization shall be tapped
by various APIs. The representatives, at their cost, shall assist the APIs in the
selection of qualified FOs and in the monitoring of program implementation.

4. A Facility Assistance Fund (FAF) shall be allocated to each API to finance the various
program components of the PHFAP.

5. The PHFAP shall be implemented effective from the date of the signing of the MOA
with the API up to December31, 1994.

B. The Facility Assistance Fund (FAF)

1. Fund description

1.1 The NFA Thai Rice Importation Profile totaling P600 Million Pesos shall be used
to finance the PHFAP. It shall be earmarked as the Facility Assistance Fund.

1.2 The FAF shall be allocated to each API according to the utilization plan for the
P600 Million profits from the Thailand rice importation which shall be as follows:

a. Dryer Facility Assistance Program - for the MPDP and the MD.

IMPLEMENTOR ALLOCATION

NFA P 280.0 M
NAPHIRE 7.2
QUEDANCOR 15.0
NAFC 2.0
DA-RFUs 32.7
LGUs* 64.9
Sub-total P 401.8 M

*Fast Track Projects

b. Loan Program for FLGC 1 & 2 and WCL with an allocation of P198.2
million for QUEDANCOR and LandBank as implementors.
 1.3 The API shall use the FAF exclusively to finance PHFAP projects.

1.4 A separate books of accounts for the FAF transactions shjall be maintained by
the API.

1.5 Unobligated funds of the Dryer Facility Assistance Program as of December 31,
1994 shall be remitted back by the concerned API on or before January 31,
1995.

1.6 The Loan Program Fund provided to Quedancor and LBP shall be maintained
for a period of five (5) years to carry an interest rate of 6% per annum.
Quedancor and LBP shall then relend the Loan Program Fund to qualified FOs
at an interest rate of fourteen percent (14%) per annum for Quedancor and
sixteen percent (16%) per annum for LBP. Upon expiration of the loan term, any
amount of the Loan Fund remaining unexpended shall be remitted back to NFA
while the outstanding balance of the loans to the FOs shall be remitted
immediately to NFA as they mature and as they are collected.

Quedancor and LBP shall then furnish NFA with a list of outstanding accounts as
of the expiration of the loan term, and shall remit collection thereof monthly
thereafter, not later than the 5th working day of the month. Remittance shall be
accompanied by a Collection Summary Report (Exhibit 5).

1.7 Loan Funds not remitted within the five (5) year period shall be charged an
added interest of one per cent (1%) per month.

1.8 The API assumes full rist in the disposition of the Facility Assistance Fund.

2. Fund remittance

2.1 NFA shall enter ihnto a MOA individually with the various API to effect the transfer
of funds.

Likewise, the concerned API shall effect the release of funds to the program
beneficiary in a separate MOA.

2.2 The release of fund to the API for the Dryer Facility Assistance Program shall be
in tranches based on their respective work and financial plans. The first release
will cover the projected expenditures for the first three months for DA and its
attached agencies and one month for LGUs. Subsequent releases will be done
monthly based on the liquidation of the previous fund remitted.

Release to the LGUs shall be coursed thru the Regional Office.

2.3 For the Loan Program Fund to Quedancor and LBP, DTFM shall release the
amount of P10 Million and P20 Million respectively, for the initial funding. Further
 releases shall be effected only upon submission of the liquidation report
evidenced by perfected loan contracts subject to fund allotment limitations.

2.4 The API concerned shall issue a corresponding official receipt for every FAF
received.

2.5 The API shall deposit the FAF in any interest bearing account with a commercial
bank, preferably a government bank. All interest earned (if any) by the fund shall
be remitted by the concerned API to NFA three (3) months after the issuance and
every month thereafter.

3. Liquidation/ Replenishmeht of FAF

3.1 Drying Facility Assistance Program Fund

a. Replenishment of the Facility Assistance Fund shall be based on actual

completed projects. Requests for the replenishment of the fund shall be
supported by a Liquidation Report (Exhibit 1) to be submitted by the API
within five (5) working days from the date of completion/acceptance. The
liquidation report shall be submitted to the Extension Department (ExD) of
NFA.

b. All Liquidation Reports shall bear the signature of the Head of Office of
the concerned API and must be certified/auidited by COA.

c. All Liquidation Reports shall be supported by the following documents:

c.1 Certificate of Inspection

c.2 Certificate of Final Acceptance (for MD)/Certificate of Completion
(for MPDP)
c.3 Copy of the Lease Contract between NFA and the FO beneficiary
covering the utilization of the dryer facility

3.2 Loan Program Fund to Quedancor and LBP

Replenishment of loan program fund to Quedancor and LBP shall be based on

loans granted as evidenced by perfected loan contracts. Request for
replenishment shall be accompanied by a liquidation report (Exhibit 4) together
with true copies of perfected loan contracts which shall be submitted to NFA
Extension Department.

3.3 Preparation and submission of the Liquidation Reports shall be centralized thru
the main office of the API except for the LGUs which shall submit their
Liquidation Report to the NFA Regional Office.
 3.4 The fund replenishment shall be processed and released to the concerned API
within five (5) working days upon receipt of the liquidation report

C. Functional Responsibility of NFA Offices

1. Department of Treasury and Fund Management

1.1 Releases the FAF to the API according to the provision stated in paragraph
B.2.2 and B.2.3 of this SOP.

1.2 Remits to the Regional Office the fund allocation for the LGUs in accordance
with the following fund ceilings:

ALLOCATION
IMPLEMENTOR MPDP MD

DA-RFUs P 32.7 M P -0-

LGU (R-III-Nueva Ecija) 11.6 11.6 M
LGU (R-X-Bukidnon) 13.5 6.6
LGU (R-XII-Davao
del Norte) 15.0 6.6

2. Department for Accounting and Budget

2.1 Processes the replenishment voucher of the API following the usual policies and
procedures in disbursement voucher processing.

2.2 Maintains subsidiary ledger per API for purposes of monitoring financial
transactions pertaining to the PHFAP.

2.3 Records all financial transactions of the PHFAP.

3. Extension Department

3.1 Verifies the liquidation report submitted by the API. If found in order, prepares a
disbursement voucher for the replenishment of the fund being liquidated and
forwards the same to the Department for Accounting & Budget (DAB) for
processing.

3.2 Coordinates with the APIs regarding the effective implementation of the PHFAP.

3.3 Evaluates the overall program outreach result based on the Project Progress
Report submitted by the different agency implementors and committees.

3.4 Prepares and submits a consolidated PHFAP Progress Report (Exhibit 3) every
month based on the Project Progress Reports of the APIs. The report shall
 reflect the accomplishments of the APIs in comparison with their program
targets. The report shall be submitted to the Administrator copy furnish the DCP
on or before the 10th working day of the succeeding month.

4. Department for Internal Audit, Investigation and Prosecution

4.1 Conducts on site inspection of postharvest facilities covered by the program.

4.2 Verifies the books of accounts and disbursements of APIs for the PHFAP.

4.3 Submits report on findings made to the Administrator copy furnish the ExD and
DCP.

5. Regional Office

5.1 The Regional Manager shall approve and sign all lease agreements with the
API/FO, in behalf of the Administrator, to facilitate processing of the Lease
Contract involving the implementation of the PHFAP.

5.2 Finance Unit

a. Releases the FAF to the LGU according to the provision stated in

paragraph B.2.2 of this SOP.

b. Processes the replenishment voucher of the LGU following the usual

policies and procedures in disbursement voucher processing.

c. Maintains subsidiary ledger per LGU for purposes of monitoring financial

transactions pertaining to the PHFAP.

d. Records all financial transactions of the PHFAP concerning the LGUs.

5.3 Marketing Development Unit

a. Verifies the liquidation report submitted by the LGU. If found in order,

prepares a disbursement voucher for the replenishment of the fund being
liquidated and forwards the same to the Finance Unit for processing.

b. Coordinates with the LGUs regarding the effective implementation of the

PHFAP.

c. Conducts on site inspection of the postharvest facilities covered by the

program and verifies the PHFAP books of accounts and disbursements of
the LGU. Submits report on findings made to the ExD.
 d. Prepares and submits a consolidated PHFAP Progress Report (Exhibit 6)
every month based on the Project Progress Reports of the LGUs. The
report shall reflect the accomplishments of the LGUs in comparison with
their program targets. The report shall be submitted to the ExD on or
before the 7th working day of the succeeding month.

6. Provincial Office

6.1 Coordinates with the API in identifying possible sites for the MPDP within the
NFA warehouse premises.

62. Coordinates with the FO beneficiary regarding the construction of the dryer
pavement at the NFA warehouse premises.

6.3 Renders drying services to qualified farmers. Issues authorization for this
purpose.

6.4 Responsible for the maintenance of the MPDP.

D. Monitoring and Reporting Systems

1. The API shall make available all pertinent program records and related documents to
the authorized representatives of NFA for inspection and monitoring purposes.

2. The API shall ensure that all projects are completed as scheduled.

3. The API shall submit a Project Progress Report (Exhibit 2) to the Extension Department
of NFA every month. The report shall show how each project undertaken by the API is
progressing as of the end of a particular month. The report shall indicate the
percentage of completion of each project as compared to the targets, the amount of
funds already released to cover the project expenditures, and the name of the FO
beneficiary. For reports on mechanical dryer facilities, the API should indicate the type
and capacity of the MD. Any problems encountered causing the delay in accomplishing
the project must be disclosed in the remarks portion of the report. Further, the report
should include a statement of fund disposition or cash flow.

The report shall be prepared per program component and per province/region by the
API. It shall be submitted on or before the 5th working day of the succeeding month
copy furnish the PSC and the PTC.

E. Accounting Treatment

1. The Facility Assistance Fund released to the API shall be taken up as receivables from
the concerned API.
2. Proforma Journal entries to record FAF transactions shall be as follows:

2.1 To record release of FAF to the API:

DR: Receivables - Miscellaneous - API xxx

CR: Vouchers Payable Receivable xxx

DR: Vouchers Payable - Receivables xxx

CR: Cash - Other Banks - Current A/C xxx

2.2 To record transfer of funds to the Regional Office for the FAF of LGUs:

C.O.

DR: BOCA - Cash xxx

CR: Cash - Other Banks - Current A/C xxx
#

R.O.

DR: Cash - Other Banks - Current A/C xxx

CR: COCA - Cash xxx
#

2.3 To record replenishment of FAF as per liquidation report of the API:

For Multi-Purpose Dryer Facility

DR: Miscellaneous Assets - Leasehold

Improvements xxx
CR: Vouchers Payable xxx
#
DR: Vouchers Payable xxx
CR: Cash - Other Banks - Current A/C xxx
#

For Mechanical Dryer Facility

DR: Fixed Assets - Equipment xxx

CR: Vouchers Payable - Equipment xxx
#
 DR: Vouchers Payable - Equipment xxx
CR: Cash - Other Banks - Current A/C xxx
#

For the Loan Program Fund

DR: Receivables - Miscellaneous - API xxx

CR: Vouchers Payable - Receivables xxx
#

DR: Vouchers Payable - Receivables xxx

CR: Cash - Other Banks - Current A/C xxx
#

2.4 To record receipt of interest earned from FAF savings account as remitted by the
API:

DR: Cash - Collecting Officer xxx

CR: Operating & miscellaneous revenues
interest xxx
#

DR: Cash - Other Banks - Current A/C xxx

CR: Cash - Collecting Officer xxx
#

2.5 To record receipt of interest earned from the Loan Program Fund:

DR: Cash - Collecting Officer xxx

CR: Operating & miscellaneous revenues
interest xxx
#

DR: Cash - Other Banks - Current A/C xxx

CR: Cash - Collecting Officer xxx
#

2.6 To record payment of lease fee for the MPDP site:

DR: Maintenance & other operating

expenses - rent xxx
CR: Cash - Dusbursing Officer xxx
#

2.7 To record receipt of lease fee from the FO/API:

 DR: Cash - Collecting Officer xxx
CR: Operating & miscellaneous revenues
- rent xxx
#

2.8 To record receipt of unexpended?unobligated FAF as remitted back by the API

upon termination of the program:

DR: Cash - Collecting Officer xxx

CR: Receivables - Miscellaneous - API
xxx
#

DR: Cash - Other Banks - Current A/C xxx

CR: Cash - Collecting Officer xxx
#

2.9 To record receipt of Loan Program Fund collection as remitted back to NFA by
the concerned API:

DR: Cash - Collecting Officer xxx

CR: Receivables - Miscellaneous - API
xxx
#

DR: Cash - Other Banks - Current A/C xxx

CR: Cash - Collecting Officer xxx
#

2.10 To record other unliquidated completed projects at the final turnover and
termination of the program:

DR: Assets - appropriate account xxx

CR: Receivables - Miscellaneous - API
xxx
#

LIST OF SUPPORTING DOCUMENTS

A. MOA with the API

Work and Financial Plan

B. Application for the availment of the PHFAP

1. Application form
 2. A certification that the FO is a recipient of GPEP interventions
3. Copy of CDA and/or SEC registration
4. A Certification from the DA that the FO is not a recipient of the same
postharvest facility program being applied for
5. Copy of audited financial statements for two consecutive years
6. Copy of the Deed of Sale or Donation evidencing ownership of the lot (for MPDP
applicants only)
7. Organizational profile

C. Lease Agreement between FO and NFA (regarding the lot for the MPDP site)

Deed of Sale or Donation evidencing ownership of the lot by the FO.

D. Lease Agreement between FO and NFA (re: utilization of the facility dryer)

1. For MPDP

1.1 Approved application for the Facility Assistance Program of the FO

1.2 Contract of Lease on the lot used
1.3 Certificate of Inspection
1.4 Certificate of Completion

2. For MDP

1.1 Approved application for the Facility Assistance Program of the FO

1.2 Copy of the Deed of Sale
1.3 Copy of the paid sales invoice
1.4 Certificate of Inspection
1.5 Certificate of Final Acceptance.

E. Liquidation Report (duly certified by COA)

1. Certificate of Inspection
2. Certificate of Final Acceptance (for MD)/ Certificate of Completion (for MPDP)
3. Copy of the Lease Contract between NFA and the FO beneficiary covering the
utilization of the dryer facility

F. Certificate of Final Acceptance (for MD)

1. Copy of the Deed of Sale

2. Copy of the paid sales invoice
3. Certificate of Inspection
4. Test-run report

G. Certificate of Completion (for MPDP)

 1. Copy of the Contract of Lease on the lot used for the MPDP site
2. Certificate of Inspection

H. Disbursement Voucher (for the payment of MD and/or material cost for the MPDP)

1. Approved application of the FO beneficiary

2. Request for quotation/abstract of canvass of prices (for MPDP only)
3. Bidding documents and Notice of Award (for MD only)
4. Purchase Order
5. Delivery Receipt
6. Sales Invoice
7. Deed of Sale (for MD only)
8. Certificate of Inspection
9. Certificate of Acceptance
10. Warranty Certificate (for MD only).