INTERNAL CONTROL SYSTEM (ICS)

MANUAL

[ Company Name]

Prepared by:

____________________________
Food Safety Compliance Officer

Approved by:

_____________________________
CEO/President/Manager
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Subject: Table of Contents Page: 01 of 20

Page Title

1 Organizational Background
2 Mission and Vision
3 Statement of Policy
4 Organization Structure and Functions
5 Location Map
6-10 Farm Operation Procedures
11-15 Facility Operation Procedures
16 Internal Audit Procedure
17 Complaint Handling
18 Management Review
19 Corrective Action
20 Risk Management Procedure

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020

Subject: Company Profile Page: 02 of 20

Organizational Background:

The company is an exporter of fresh fruits and vegetables. Founded in 2008 with total
of 20 managed farms as a source of the commodities for export. The company’s main
purpose is to act as a producer and exporter of fresh commodities to satisfy the needs
of the different international markets.

Vision:

We are the Philippines leader in providing world class quality and innovative
agribusiness products and services to our countrymen and their communities, and
the citizens of the world.

Mission and Core Values:

In pursuit of this vision, we pledge to our stakeholders the following:

Our customer: We deliver and make available the best quality products and services
that will delight our customers.
Our Employees: We endeavor to develop competence, commitment, and motivation
creating a fulfilling work environment while helping grow their families.
Our Business Partners: We strive to maintain fair, mutually beneficial transparent
partnerships.
In all these, we count on God’s Providence and Blessings.

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020

Subject: Statement of Policy Page: 03 of 20

The company commits to:

- produce high quality and safe fresh fruits and vegetables to satisfy the customer’s
requirements.
- implement the codes of GAP, GMP, GHP to all stages of the production.
- continually improve the system through regular monitoring and review.
- ensure compliance with all applicable laws and regulatory requirements.

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020

Subject: Organization Structure Page: 04 of 20

Dingdong Dantes
President

Quality & Finance and Human Resource

Food Safety Technical
Services Shiiping Department
Compliance Research Department Brix Cruzante
Department Department
Department Leah Villeluz Dept. Manager
Jane Veena Steve Sali
Jel Fren Dept. Manager Gia Lyn Abreeza
Pelle Dept. Manager
Dept. Manager Harvey Mojica Human Resource
FSCO/ICS France Syn
Lester Gutierez Accountant Officer II
Manager Coordinator
Research Sheena Jessica Santos
Sam Fontanilla Billie Jean
Specialist Obtinalla Administrative
Internal Auditor Production Head
Cora Veldez Marketing Head Officer I
Grace Researcher
Nacional
Internal Auditor Production
Des Ballinan Farm & Packing
Document facility Coaches
Controller

Managed Farms Contracted Farm

Parcela 1 – Davao Del JCP Farm -
Norte Cotabato
Parcela 2 – Davao Del

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020

Subject: Functions/Responsibilities Page: 05 of 20

• Top Management/CEO/President– oversight responsibility for internal controls

within the business.
• FSCO, Supervisors, Managers, Team Leader – responsible for designing and executing
control policies and procedures at the detail level within their specific sections/units
• All Employees – must be aware of proper implementation of internal control
procedures associated with their specific job responsibilities.
• Internal Auditors/Inspectors – role is to examine the adequacy and effectiveness of
the internal controls and make recommendations where control improvements are
needed.
.

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020

Subject: Procedure for Traceability and Page: 06 of 20

Segregation

Objective: To provide a coding system and instructions for a product identification, traceability and
segregation.
Scope: The procedure covers the issuance of unique codes at all stages of production,

Step Procedure Responsible Person

1 All farms are assigned and identified by a ICS Manager/FSCO/Technical Staff

unique codes and name.

2 Harvested fruits coming from different lot or ICS Manager/FSCO/Technical Staff

grower should be segregated and packed
properly.
3 Packed fruit shall be identified by stamping at ICS Manager/FSCO/Technical Staff
the sides of the box of codes indicating the
week number, date and time for traceability.
BPI issued codes shall also be stamped at the
box.
4 Records indicating the details of the source or Document Controller
codes of the produce for dispatch at the area
shall be maintained

Refer to : FBC-ICS-F02 - Monitoring Form

Traceability Codes

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020

Subject: Recall Procedure Page: 07 of 20

Objective: To provide guidance to the company for the conduct of timely and effective action
or recall of the non-compliant produce. To to limit ruination of the corporate image and limit
liability for corporate negligence, which can cause significant legal costs.
Scope: The procedure covers the notification to initiation of produce recall and corrective
actions.

Step Procedure Responsible Person

1 The produce identified as contaminated or potentially ICS Manager/FSCO/Technical

contaminated based on the notice of the Authority or Staff
market feedback shall be notified to the management

2 Cause of contamination shall be investigated ICS Manager/FSCO/Technical

immediately Staff

3 Once the documentation is complete and approval of ICS Manager/FSCO/Technical

authority, batch of contaminated produce shall be Staff
destroyed or recalled. Corrective actions will be
prepared and monitored to prevent the recurrence.
4 A records of incident and actions taken shall be kept Document Controller
and maintained.

Refer to : FBC-ICS-F02 - Monitoring Form

FBC-ICS-F03 - Corrective Preventive Action Report Form
Recall Plan

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Procedure for Monitoring of
Subject: Implementation of Page: 08 of 20
Processes/Internal Audit

Objective: To ensure that the policies and operations continue to comply with company and
customer’s requirements
Scope: The procedure covers the preparation of audit plan until the follow –up of corrective action
implementation

Step Procedure Responsible Person

1 The internal audit is conducted 2x a year. The audit team ICS Manager
shall be composed of at least three (3) auditors.

2 The lead auditor shall prepare audit plan based on Lead Internal Auditor
company’s audit program

3 Communicate the audit plan to audit team and auditees ICS Manager/Lead Internal
Auditor
4 Opening Meeting is conducted to discuss the purpose, Internal Auditors
scope and activities of audit.

5 The audit proper shall be conducted through interview, Internal Auditors

documentation review and actual observation of working
conditions.
6 Audit findings shall be summarized and reported at the Internal Auditors
closing meeting.
7 Follow-up audit activities are conducted according to the Internal Auditors
implementation of corrective action. If action found to be
effective, close the findings.

Refer to : Audit Plan

FBC-ICS-F02 - Internal Audit Checklist
FBC-ICS-F03 - Corrective Preventive Action Report Form

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Subject: Procedure for Complaint Handling Page: 09 of 20

Objective: To ensure that complaints from staff/customer are handled properly to protect
their interest
Scope: This procedure covers activities from receiving of complaints up to report
preparation.

Step Procedure Responsible Person

1 Complaints received shall be recorded in a form or logbook ICS Manager/Technical staff

indicating the date, time and details of complaints.

2 Prepare report for the action done for handling the ICS Manager/Technical staff
complaints.

3 Action done on the complaint is monitored ICS Manager/Technical staff

4 The complainant/appellant shall be informed of the status ICS Manager/Technical staff

complaints

5 All complaints are summarized and taken up during the ICS Manager/Technical staff
Management Review.

Refer to : SOP No. 7 - Complaints Handling

FBC-ICS-F03 - Corrective Preventive Action Report Form

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Subject: Corrective Action Procedure Page: 10 of 20

Objective: To ensure that nonconformities will be minimized and/or eliminated in the system.
Scope: The procedure starts from the evaluation of complaints/nonconformities(NCs),
investigation of cause of NCs/complaints and implementation of corrective action plans.

Step Procedure Responsible Person

1 Nonconformities from the results of audit or ICS Manager/Technical

customers feedback are processed staff

2 Determine or investigate the root cause of ICS Manager/Technical

NCs/complaints staff
3 Determine the validity of non-conformity and initiate ICS Manager/Technical
immediate actions staff
4 Corrective action for the identified cause are ICS Manager/Technical
documented and approved. staff
5 Approved action plans are disseminated to the ICS Manager/Technical
concerned personnel for implementation staff

6 Implementation of corrective action are periodically ICS Manager/Technical

monitored staff
7 Results of the management review are recorded and ICS Manager/Technical
controlled staff

Refer to : SOP No. 7 - Complaints Handling

FBC-ICS-F03 - Corrective Preventive Action Report Form

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Subject: Management Meeting Procedure Page: 11 of 20

Objective: To review the internal control system to ensure continuing effectiveness while
addressing possible changes to company’s policy, objectives and processes.
Scope: The procedure covers the planning and conduct of management review within the
company.

Step Procedure Responsible

Person
1 The management review shall be conducted 2x a ICS Manager/Top
year. Management

2 The ICS manager shall prepare management review ICS Manager

plan based on company’s activity/program
3 Prepare notice of meeting ICS
Manager/Document
Controller
4 Designate personnel to assist in the management ICS Manager
review activities.
5 Conduct management review, assign actions plans ICS Manager/Top
and approve system changes management

6 Prepare minutes of meeting and document the ICS Manager

results of the management review
7 Results of the management review are recorded and Document
controlled Controller

Refer to : Management Review Plan

FBC-ICS-F03 - Corrective Preventive Action Report Form

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Risk Assessment & Management
Subject: Page: 12 of 20
Procedure

Objective: To enable the management to take measures or actions necessary to the identified
risk.
Scope: The procedure covers the identification and assessment of risk, preparation of report
and control measures until the monitoring.

Step Procedure Responsible Person

1 Each processes/operations shall be assessed for ICS Manager/FSCO/Technical Staff

potential risk

2 Determine the factor and level of risk occurrence for ICS Manager/FSCO/Technical Staff
every process

3 Prepare report and take control or preventive ICS Manager/FSCO/Technical Staff

measures.

4 Implement and Monitor the control measures ICS Manager/FSCO/Technical Staff

regularly

5 Records and documentation of this procedure shall Document Controller

be maintained and controlled.

Refer to : FBC-ICS-F02 - Monitoring Form

FBC-ICS-F03 - Corrective Preventive Action Report Form

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Risk and Opportunity Registry
Subject: Page: 13 of 20
Action Plan

Risk Assessment Scoring:

Likelihood /Severity: Risk Factor:
1 – low 1 – low
2 – medium 2 – medium
3 – high 3 - high

Operation Potential Risk Risk Assessment Control Frequenc Records Responsible

Procedure/M y Person
easures

Likelih Seve Risk

ood rity

Regular
Inspection Daily Inspection
Chemical
Practice Codes Report
Contaminants
of Self Monitoring
/Non –
GAP/GMP/GH report
compliance to
P Daily/Bian Pesticide Farm
Farm Importing 2 2 Low
Self nual management Supervisor
country due to
Monitoring Manual,
pesticide
and Adherence Chemical
residue
to Pesticide Records/Logbo
detection
Management oks
Manual

No wearing of
Presence of jewelry during
physical packing
Daily Inspection
contaminants operation
Report Packing
(fruit Regular
Packing 1 2 Low Daily Corrective – house
contaminated cleaning of
Preventive Supervisor
with crates and
Action Report
unnecessary other tools
items Regular
inspection

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Subject: Written Farm Operations Page: 14 of 20

FARM & PACKING FACILITY

OPERATONS

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Company Document No: FBC-ICS-01
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INTERNAL CONTROL SYSTEM MANUAL Revision: 0 Effective: 27 February 2020
Subject: Fruit Care Procedure Page: 15 of 20

Pesticide Application

Objective: To protect bunches and fruits from fungus infection and insect damage.
Scope: This procedure starts with the checking of the number of bunch to be sprayed, chemical
application and ends with recording of activities.

Step Procedure Responsible Person

1 Check number of fruits to be sprayed from the Fruit Farm Coach & Spray Team
Care Operations Plan Leader

2 Calibrate sprayer based on calibration procedure. Calibration assigned staff

2 Withdraw mixed pesticide from the chemical mixing Spray Team Leader
area
3 Perform bunch spraying using prescribe farm tools. Farm Worker –Sprayer
Dosage shall be based on the allowable rate.
(dosage based on the Pesticide Management
Manual/Plan)
4 Prepare Spray Daily Accomplishment Report Farm Worker –Sprayer/Spray
Team Leader

5 Submit Spray Daily Accomplishment Report to Farm Farm Worker – Sprayer/Spray

Coach Team Leader

Refer to : Fruit Care Operations Plan

SOP No. 09 - Calibration Procedure
FBC-FCP-F05 - Daily Accomplishment Report Form
Pesticide Management Manual

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 ANNEXES

List of Clients (CSW/DSW/Distributors/Importers)

No. Company/Client Location Traceability Crops being stored

Codes

1 Jollibee Foods Corp Makati City 01 Fresh vegetables

No. Company/Client Location Codes Crops being

distributed

1 Manila Hotel Manila 01 Lettuce

2 SM Supermarket Laguna 02 strawberry

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 List of Growers and Farms (Exporters)

No. Farm Name Location Farm Area Packing Listed as

Codes House

1 JV Banana Farm Davao Del Norte 123 10 PH-001 Contracted

Has
2 FBC – Plantation 1 Davao Del Norte 456 7 Has. PH-002 Managed

No. Grower Crops Location Farm Area

/Cooperative Codes
Members

1 J. Reyes Rice Davao Del Norte 123 10

Has
2 D. Gomez Assorted Vegetables Davao Del Norte 456 7
(Pechay, Eggplant, Has.
Tomato, etc)

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President
 Updated Farm Map (Exporter) or Location map (other FBOs)

Contracted Farms
Managed Farms

Prepared by: Approved by:

_____________________________ _______________________
FSCO/ICS Manager President