SULTAN KUDARAT WATER DISTRICT OPERATIONS MANUAL … · overview of the operations anchored upon the...

SULTAN KUDARAT WATER DISTRICT

OPERATIONS MANUAL

1 | P a g e

SULTAN KUDARAT

WATER DISTRICT

OPERATIONS MANUAL


OPERATIONS MANUAL

2 | P a g e

TABLE OF CONTENTS

page

I. BACKGROUND / RATIONALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

II. GENERAL INFORMATION

VISION, MISSION & CORPORATE PLEDGE . . . . . . . . . . . . . . . . . . . . . . . . . 5

BRIEF HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

III. OFFICE OF THE BOARD OF DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

IV. OFFICE OF THE GENERAL MANAGER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

V. ADMINISTRATIVE & FINANCE

CASH MANAGEMENT MANUAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

ACCOUNTING SYSTEM MANUAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

BUDGETARY ACCOUNTING SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

BUDGET SECTION OPERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

THE BUDGETARY PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

BUDGETING PROCESS OF DEPARTMENTS . . . . . . . . . . . . . . . . . . . . . . 75

GENERAL SERVICE DIVISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

PROCUREMENT OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

PROCUREMENT PLANNING & PREPARATION OF APP . . . . . . . . . . . 84

PERIOD OF ACTION FOR PROCUREMENT ACTIVITIES . . . . . . . . . . . 108

HUMAN RESOURCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

ORGANIZATIONAL PROFILING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

COMPETENCY GAP ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

MONITORING AND EVALUATION MECHANISM . . . . . . . . . . . . . . . 144

CAREER PATHING GUIDELINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

ENHANCED PRE-RETIREMENT GUIDELINES . . . . . . . . . . . . . . . . . . . 149

RECRUITMENT, SELECTION & PLACEMENT . . . . . . . . . . . . . . . . . . . 154

PERSONNEL SELECTION BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

FLOWCHART OF SLECTION & HIRING . . . . . . . . . . . . . . . . . . . . . . . . 162

LEARNING AND DEVELOPMENT MANUAL . . . . . . . . . . . . . . . . . . . . 163

CAREER DEVELOPMENT PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

GUIDELINES ON FILING OF APPLICATION FOR LEAVE OF ABSENCE. .168


OPERATIONS MANUAL

3 | P a g e

GRIEVANCE MACHINERY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

VI. COMMERCIAL DEPARTMENT

GENERAL FEATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

SERVICE CONNECTION APPLICATIONS . . . . . . . . . . . . . . . . . . . . . . . . 182

FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

FLOWCHART FOR THE INSTALLATION OF NSC . . . . . . . . . . . . . . . . . .185

CUSTOMER ORIENTATION ROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . .186

CLASSIFICATION OF WATER CUSTOMERS . . . . . . . . . . . . . . . . . . . . . 186

BILLING AND COLLECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188

BILLING SYSTEM FLOWCHART. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

DISCONNECTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

BILLING ADJUSTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

CUSTOMERS COMPLAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

DEALING WITH DELINQUENT ACCOUNTS . . . . . . . . . . . . . . .. . . . . . . 198

MANAGEMENT REPORTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

FLOWCHARTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

VII. ENGINEERING & OPERATIONS DEPART MENT

PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208

DISTRIBUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

MAINTENANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221

VIII. REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223


OPERATIONS MANUAL

4 | P a g e

BACKGROUND / RATIONALE

The Sultan Kudarat Water District’s Operations Manual is the comprehensive

overview of the operations anchored upon the mandate to provide reliable and

adequate water supply and services to our coverage areas in the Province of Sultan

Kudarat.

Sultan Kudarat Water District (SKWD) commits to a sustainable progress and

development for the province through the reliable water supply and efficient

services, and thereby contributing to the national thrust of providing the basic social

service of water supply to the waterless countryside. For over 32 years, SKWD

steadfastly thrived and survived through challenges and setbacks; and it firmly looks

forward to continually improve its public service to the people.

The day-to-day operations are guided by policies and guidelines approved by

its Board of Directors and under the supervision of various regulatory agencies

namely: the Commission on Audit (COA), Department Budget and Management

(DBM), Civil Service Commission (CSC) and Local Water Utilities Administration

(LWUA). These regulatory agencies oversee and supervise the overall operations in

its financial, administrative and engineering aspects.

Upon these foregoing circumstances that the SKWD Operations Manual is

crafted and thereby adopted to ensure the efficient and effective standard operating

procedures in the areas of customer services, procurement procedures, accounting

processes, financial reports preparations, construction works, production and

maintenance project implementation.


OPERATIONS MANUAL

5 | P a g e

VISION

The best water service provider in the province of Sultan Kudarat, named by

highly motivated and competent personnel dedicated to the people and the

environment.

MISSION

SKWD commits to provide 24/7 of potable, adequate and affordable water

with competent personnel to provide efficient customer service and an active

partner on environmental issues and development.

PERFORMANCE PLEDGE

We, the Officials and employees of Sultan Kudarat Water District, pledge and

commit to deliver quality public service as promised in the SK Aqua Charter

specifically:

T - To provide safe, potable and adequate water supply with

U - Utmost care and dedication, a deep concern on environmental conservation

B - Being active and responsible towards service with


OPERATIONS MANUAL

6 | P a g e

I - Integrity, Transparency and Cooperation,

G - Guided by the Divine Providence.

BRIEF HISTORY

Presidential Decree 198, as amended, otherwise known as Provincial Water

Utilities Act of 1973, authorized the foundation of local water districts, and by virtue

of the enabling act of the Sangguniang Bayan of then municipality of Tacurong,

through its duly approved Resolution No. #82-66 dated October 22, 1982 – Tacurong

Water District was created. It was operated under the management of a

Sangguniang bayan member with 132 connections when it started.

On August 5, 1983, Local Water Utilities Administration (LWUA) under the

chairmanship of Alfredo L. Juinio, the Tacurong Water District had been issued

Certificate of Conformance No. 247, in recognizance of the humble efforts to

improve the domestic water service to the public. With the modernization project

plan worth P16.6million and the support of neighboring water districts of Cotabato

City and Koronadal City, as well as the appointment of a new General Manager, the

Tacurong Water District’s operations was revived and 100% meterization was fully

implemented.

The Sangguniang Bayan of Isulan passed and approved a board resolution

requesting Tacurong Water District for the annexation of Isulan as part of the

expansion process, and it was the main reason for the approval of another board

resolution changing Tacurong Water District into Sultan Kudarat Water District. The

municipality of Esperanza was later annexed as part of the coverage area.

Sultan Kudarat Water District struggled, thrived and improved its services and

that on 1995, Local Water Utilities Administration (LWUA) recognized SKWD from

among water districts the entire country as the most outstanding water district –

medium category.

Humbly starting with one (1) pump station when operations started about 30

years ago, our present facilities comprised of fourteen (14) Production wells and

pumping stations for the areas of Tacurong City, Isulan and Esperanza, Sultan

Kudarat.

In order to ensure the potability and reliablity of our water supply, daily

operations involved six (6) filtration facilities (Iron and Manganese Reduction), three


OPERATIONS MANUAL

7 | P a g e

(3) elevated steel water tanks of varying capacities, one (1) steel bolted water

reservoir with capacity of 580 cu.m. and 14 generator sets.

To this day, SKWD strives to serve the people of Sultan Kudarat with safe and

reliable water supply, upholding its thrust, “SERVICE IS OUR COMMITMENT, HEALTH

IS OUR CONCERN”.

OFFICE OF THE BOARD OF DIRECTORS (OBD)

RATIONALE / LEGAL BASIS

Presidential Decree #198, the enabling law creating all water districts in the

country, provides in Chapter 3 Section 8 that, “the Board of Directors of a district

shall be composed of five citizens of the Philippines who are of voting age and

residents within the district. One member shall be a representative of civic-oriented

service clubs, one member a representative of professional associations, one member

a representative of business, commercial, or financial organizations, one member a

representative of educational institutions and one member a representative of

women’s organizations”.

The incumbent members of Board of Directors as of December 31, 2016,

their term of office and positions, to wit:

Business Sector: ENGR. NONITO P. BERNARDO - Chairman Jan. 1, 2015-Dec. 31, 2020

Professional Sector ATTY. KYNDELL A. HILARIO, CPA - Vice Chairman Jan. 1, 2017-Dec. 31, 2022

Education Sector DIR. EMILIANO C. PACARDO - Secretary Jan. 1, 2013-Dec. 31, 2018

Women Sector DIR. NORMA D. GRIÑO - Treasurer Jan. 1, 2013-Dec. 31, 2018

Civic Sector DIR. EDUARDO T. TONO - Auditor Jan. 1, 2015-Dec. 31, 2020

The powers and duties of the Board of Directors as embodied in PD#198, also

states that, “All powers, privileges, and duties of the district shall be exercised and performed by and through the board: Provided, however, That any executive, administrative or ministerial power shall be delegated and re-delegated by the board to officers or agents designated for such purpose by the board”.

The law further mandates that, “the function of the board shall be to establish policy. The board shall not engage in the detailed management of the district”.

The Board is the policy – making body, and also mandated to approve the water districts rules and regulations, the corporate plan, the annual budget, all contracts & loans, the acquisition of real properties at pre-determined amounts and


OPERATIONS MANUAL

8 | P a g e

nature, the organizational structure, the compensation and benefits, and the water rates and charges.

The SKWD Board of Directors conducts its regular board meetings every 2nd

Tuesday and 4th Tuesdays of the month, and will call for special board meetings as

the need arises.

OFFICE OF THE GENERAL MANAGER (OGM) RATIONALE / LEGAL BASIS

As stated in Presidential Decree #198 Chapter VI, Sec. 23, states that “At the first meeting of the Board, or as soon thereafter as practicable, the Board shall appoint, by a majority vote, a general manager and shall define his duties and fix his compensation. Said officer shall not be removed from office, except for cause and after due process. (As amended by Sec. 9, PD 768; R. A. 9286).

The duties of the General Manager and other officers shall be determined and specified from time to time by the board. The general manager, who shall not be a director, shall have full supervision and control of the maintenance and operation of water district facilities, with power and authority to appoint all personnel of the district: Provided, That the appointment of personnel in the supervisory level shall be subject to approval by the board. (As amended by Sec. 10, PD 768). FUNCTIONS & RESPONSIBILITIES

BOARD OF DIRECTORS

POLICY MAKING

GENERAL MANAGER CORPORATE PLANNING

& MANAGEMENT

ADMINISTRATION, DIRECTION & SUPERVISION

STRATEGIC OPERATIONAL MONITORING

Administrative, Finance & HR

TACURONG

Commercial Services

ISULAN

Engineering & Operations

ESPERANZA

Gender & Development


OPERATIONS MANUAL

9 | P a g e

LINKAGES & COLLABORATION

( LOCAL & NATIONAL OFFICES)

COORDINATION WITH THE DIFFERENT

WATER DISTRICT ORGANIZATIONS

CORPORATE SOCIAL RESPONSIBILITY /

PUBLIC RELATIONS

PAWD

MAWD

SOCEMWIC

KEY FUNCTIONS

A. CORPORATE PLANNING AND OVERALL MANAGEMENT

DETAILS DEPARTMENT / AGENCIES INVOLVED

1. Core Functions

2. Support Service Functions

ADMINISTRATIVE, COMMERCIAL, ENGINEERING/OPERATIONS ADMINISTRATIVE, COMMERCIAL, ENGINEERING/OPERATIONS

B. ADMINISTRATION, DIRECTION AND SUPERVISION


a. Administrative, Finance & Human

Resource

1. Human Resource Management and Personnel Development

2. Procurement as Head of Procuring Agency 3. Finance & Accounting Reports Preparation 4. General Services, PPE, Supplies &

Inventories 5. Corporate Planning and Budgeting b. Commercial Service

1. Billing and Collection Database

2. Customers frontline services

3. Public Relations, Marketing and

Promotions

c. Engineering & Operations

1. Production & Water Supply 2. Construction Works 3. Maintenance Works 4. NRW Quick Response Team

d. Gender and Development (GAD) Plans and Programs

ADMINISTRATIVE, COMMERCIAL, ENGINEERING/OPERATIONS ADMINISTRATIVE, COMMERCIAL, ENGINEERING/OPERATIONS ADMINISTRATIVE, COMMERCIAL, ENGINEERING/OPERATIONS

ADMINISTRATIVE, COMMERCIAL, ENGINEERING/OPERATIONS

C. STRATEGIC OPERATIONAL MONITORING & SUPERVISION


OPERATIONS MANUAL

10 | P a g e


a. Tacurong operations

b. Isulan operations c. Esperanza operations




D. LINKAGES & COLLABORATIONS

DETAILS DEAPRTMENT / AGENCIES INVOLVED

Communications & Linkages Collaborations in Local & National Levels

a. Local Water Utilities Administration (LWUA)

b. Civil Service Commission (CSC)

c. Commission on Audit (COA)

d. Department of Budget & Management (DBM)

e. Department of Public Works and Highways

(DPWH)

f. Inter-Agency Task Force on GOCCS (AITF –

GOCC)

g. Philippine Government Electronic

Procurement Systems (PHILGEPS)

h. And Other Government Agencies – DOH, DOF,

NWRB, OGCC, DENR, DENR-EMB, DEP-ED,

DSWD, NSA, DTI, PWC, etc

i. Provincial Government Office – Sultan Kudarat

Province

j. Local Government Units (LGU) of Tacurong,

Isulan & Esperanza

k. Sectoral Groups and Organizations/ non-

governmental Organizations (NGOs)– Business,

Professional, Women, Civic & Education

E. MEMBERSHIP & PARTICIPATION TO DIFFERENT WATER DISTRICT ORGANIZATIONS


Membership & Participation a. Philippine Association of Water Districts

(PAWD)

b. Mindanao Association of Water District

(MAWD)


OPERATIONS MANUAL

11 | P a g e

c. South Central Mindanao Water Information

Council (SOCEMWIC)

F. CORPORATE SOCIAL RESPONSIBILITY AND PUBLIC RELATIONS


Corporate Social Responsibility Public Relations


ADMINISTRATIVE AND FINANCE DEPARTMENT

Administrative and Finance Department provides administrative support and

responsible for the operation of the three (3) divisions: Administrative Services,

General Services and Finance. The Administrative Division focuses on the basic

functions of human resource and procurement. General Services Division focuses on

the basic functions of security, transportation and maintenance while Finance

Division focuses on the basic functions of accounting, budget, cash & disbursement.

The department’s basic functions include the following:

1. Formulates and implements human resource programs, policies and

procedures pursuant to Civil Service Law and Rules;

2. Formulates and implements procedures on procurement of adequate supply

of quality materials, equipment and services;

3. Formulates and implements policies or records managements for the whole

organization. Formulates and implements policies related to security

measures of building, ground and people in the organization;

4. Formulates and implements systems on warehousing and maintenance of

materials, supplies, vehicles and equipment in accordance with the

regulations and policies.

5. Responsible for the maintenance of the corporate books of accounts and all

accounting records, documents and the preparation of Financial and

Accounting reports and Analysis.

6. Implements procedures and policies on cash management particularly on

safekeeping, disbursement, control of water district funds.

7. Implements procedures and policies on collection of water bills, cash funds

and other monies or income of the District.

8. Coordinates with concerned departments in the preparation of the annual

budget and prepares and monitors projected financial reports based on the

approved annual budget.


OPERATIONS MANUAL

12 | P a g e

9. Determines financial resources available to carry out water district programs.

CASH MANAGEMENT MANUAL

RATIONALE

The Sultan Kudarat Water District being a government owned and controlled

service provider of potable water in the municipality of Isulan, and Esperanza and

the City of Tacurong has a full thrust to the people thereon to properly account and

safeguard its cash collection from water bill payment and various fees for its

services. At the same time every employee involved in the cash management

process must have clear accountability & responsibility.

The Cash Management Manual provides an overview of day-to-day activities

to ensure all cash collected is systematically recorded, accounted and reported with

defined roles & responsibilities safeguarding all employees involved in this activity.

This manual also provides proper internal control over check disbursements

and disbursements by cash. It establishes the proper flow of disbursement to ensure

that all expenditures of the district are systematically accounted and recorded to

ensure that financial reports are correct and accurate. The Cashier as the custodian

of every cash fund is responsible for the integrity of the cash. He/she should

understand his/her accountability for all cash which are the property of SKWD. These

policies and guidelines are for the protection not only of the collections received, but

also those employees charged with cash handling.

DEFINITION OF TERMS

Cash or collections- refer to money in any form of currency such as bills, coin

and checks in payment of concessionaires for water bills, installation of new service

connection, other fees and other charges in exchange for the services of SKWD.

Sultan Kudarat Water District Water Bill Receipt- a pre-numbered printed

receipt which is machine validated and properly signed by the collecting officer,

cashiering assistant, which indicates the account number, name and address of the


OPERATIONS MANUAL

13 | P a g e

concessionaire, water bill amount, the date and time of payment and serves as the

official receipt for SKWD.

Disbursements – generally referred to as government expenditures. These

are all charges against the fund of the agency for current operating expenditures,

capital outlays, and provisions for retirement of long term obligations. The charges

are both the amount actually paid and those incurred and recorded as liabilities to

be paid in the future. These are paid by checks or in cash.

ACCOUNTABLE OFFICERS

The following are the accountable persons whose responsibility is to collect

and receive payments for water bills and various fees for the SKWD services. These

accountable persons are all properly bonded. To wit;

Cashiering Assistant - has the responsibility to collect water bill payments, re-

opening fees and account receivables in materials including other fees for various

services of the district including payments for the installation of new service

connection, penalties, change of name, water sales, refund of cash advances, bid

documents, sales of materials, certifications and other fees. It is computer generated

system to ensure that payments are properly accounted at the end of the day. The

collector then remits all collections (cash and checks) to the Cashier thrice a day

using the remittance slip-bill collection. Collection Report and Daily Statement of

Collections and Accountable Forms are then submitted after the collection report

has been verified and posted by the billing section, checked by its supervisor and

noted by the department head. Collections are supported by computer generated

reports printed at the end of the day and submitted to the cashier and billing

section.

Cashier – is responsible for the cash count and custody of collections of the

cashiering assistants. At the end of the day, the Cashier then submits all collections

for cash count and reconciliation to his or her immediate supervisor in which bill are

sorted by denomination, clipped and banded and is supported by daily collection and

cash breakdown report. The collections are then put inside the vault for safety. All

collections of the day are deposited the following day through pick up by the

depository bank.


OPERATIONS MANUAL

14 | P a g e

Assistant Cashier– has the responsibility over the Petty Cash Fund, its proper

disbursing and replenishment. He/ she also acts as the disbursing officer of the

office, responsible over all the check disbursements and disbursements by cash

(payment for payroll and other expenses). He/she is also responsible to collect and

receive payment in the absence of the Cashier.

COLLECTION

The Sultan Kudarat Water District has its own collection system on its

respective offices. Collection is open from 8 o’clock in the morning and closes at 5

o’clock in the afternoon without noon break.

I. CASH COLLECTION

This manual also aims to establish and document the flow of cash receipts

and provide guidelines for the proper management of cash for those employees

responsible for receiving, handling, and safeguarding of cash and cash equivalents.

To wit;

Official receipts for collectors/tellers (cashiering assistants) are SKWD pre-

numbered printed receipts and should be machine validated. This is prepared

in duplicate, the original copy is for the concessionaire and the other is

retained for

the collector. The duplicates are attached to the RCD to be forwarded to the

accounting section by the cashier.

All checks must be payable to SKWD, on date, and must be endorsed properly

by the cashier and stamped for deposit only.

The cash received must be reconciled to the pre-numbered receipts. The

numerical continuity of the pre-numbered receipts should be verified daily by

the supervisor. All pre-numbered receipts must be accounted for including

voided/cancelled receipts. All voided transactions are to be approved and

initialed by the Supervisor.


OPERATIONS MANUAL

15 | P a g e

Overage/shortage amounts must be separately recorded and investigated

and resolved to the extent possible. The cashier will report immediately any

shortages, losses, or thefts of funds to his/her Supervisor.

Cash collected must not intermingle or substituted with other funds except

for SKWD check encashment.

Cash should not be used to pay expenditures, to reserve for petty cash, or for

any other reason.

Supervisors will conduct surprise cash count anytime of the month and

quarterly periodic audit to the Cashiering Assistants (tellers), Cashier and

Assistant Cashier including Sub-Offices.

Policies on Dishonored Checks

A check is said to be dishonored by nonpayment when, upon its being duly

presented for payment, such payment is refused or cannot be obtained due

to; 1. lack of/insufficiency of funds 2. formal defect of the check and 3.

closed account.

The payor shall be immediately notified by the collecting officer for or in

behalf of the agency head concerned of the cancellation and dishonor by

means of a “Notice of Dishonor”.

The payment is then cancelled following the date of the “Notice of the

Dishonor”.

A dishonored check shall be settled by tendering payment in cash or by

certified check to the collection officer concerned.

Upon receipt of cash or check, the Cashier shall issue an OR for the amount

received by him. If the payor is liable for the payment of fine or penalty

arising from the delayed payment, the amount corresponding to the fine or

penalty shall also be imposed and collected in addition to the principal

amount or dues paid by him.

Concessionaires who had issued dishonored checks twice are required to pay

their bills in cash.

DEPOSITS

All collections of the day should be deposited intact the following working

day. The Cashier prepares cash and check deposit slips for each collection of the

Cashiering Assistants (tellers) in triplicate copy and duly countersigned by the direct

supervisor. One copy is for the bank, second copy is attached to the RCD and the


OPERATIONS MANUAL

16 | P a g e

third copy will be retained to the cashier. Cash deposits of the main office, Tacurong

and Isulan Sub-Office are being picked-up by the depository bank to ensure the

safety of cash and the employees instead of having it delivered to the bank.

Esperanza Branch collector will prepare deposit slip for his/her daily

collection and will be picked up by Isulan Sub-office assigned employee to be

deposited in LBP-Isulan.

Every Friday or day before holiday, collections up to 12nn will be deposited

on the same day to avoid accumulation of cash in the cash vault.

When cash is deposited or when large amount of cash are on hand, it is

encouraged to ask for a security escort.

Procedures

Process Person /Unit Responsible

1 Issue Official Receipts to acknowledge receipt of cash and

check payments for water bill payments, reopening fees

and account receivables from concessionaires.

Cashiering Assistants/

Tellers

Issue Official Receipts to acknowledge receipt of cash and

check payments for Collection of other fees including

payments of new service connection, bid documents,

water sales, penalties. certifications, refund of cash

advances.


Tellers

2 Prepare remittances thrice a day to the Cashier using

remittance slip -bill collection form and records receipt in

the logbook maintain for the purpose. Prepares deposit

slips for both cash and check payments.


Tellers

3 Receives remitted collection, consolidate and prepare

Summary of Collection Report and Report of Collection

and Deposits (RCD).

Cashier

Prepares Daily Statement of Collection and accountable

Forms and print collection report generated through the

collection system. Submit copy to the billing unit to

updated payment system


Tellers

5

Record collection to Teller's Cashbook


Tellers


OPERATIONS MANUAL

17 | P a g e

6 Deposits remitted collections in the appropriate account

and records deposits in the cashbook.

Cashier

7 Check each validated Official Receipts against generated

registered payment.

Cashier

8 Forward RCD to accounting unit with copies of ORs and

validated reports.

Cashier

9 Prepares Cash Receipts Records (CRR) to record

collection and deposits.

Cashier

10 Prepares Report on Accountability of Accountable Forms Cashiering Assistant

SAFEGUARDING

Cash should never be left unattended. This applies to cash boxes, desk tops,

and cash drawers. If the Cashier leaves his or her work station for any reason,

regardless of how briefly, cash must be secured in a locked place.

All checks and cash receipts must be kept and protected by using safe/secure

place which is the cash vault until they are deposited. This secured area must be

restricted to unauthorized personnel. Only Cashier is allowed to access to his/ her

cash box, cash drawers and cash vault during his/her shift. Doors should be locked at

all times to secure the place.

CCTVs are installed near the vicinity of cashier and cash vault for added

security.

Large sums of cash should be counted and handled out of sight of the general

public.

Safe combinations should be changed regularly and whenever security may

have been compromised. Change safe combination also during change of cashier or

when an employee with knowledge of the combination leaves the cash section.

Locks should be changed whenever security may have been compromised.

Cash section should ensure keys are returned when an employee leaves the cash

section.


OPERATIONS MANUAL

18 | P a g e

RECORDING

Cashiers’ collections and deposits are recorded in the Report of Collection

and Deposit supported with Official Receipts, Deposit Slips, Daily Statement of

Collection and Accountable Forms and Collection Report, computer generated

collection reports and forwarded to the Accounting Section for recording to the

books of account. Remittance Slip-Bill Collection is retained to the Cashier for filling.

The cashier also prepares Cash Collection Report and a summary of CRR to be

recorded in the respective cash book. Cash balance should be equal to the cash

collection of the day and ending cash balance for each month.

The cashiering assistants maintain cash logbook and teller’s cashbook to

record their daily collection. Reports of Accountability for Accountable Forms (RAAF)

are prepared monthly to ensure that official receipts are properly issued and

accounted.

Bank Statements are then provided by the bank to be used for reconciliation

and to make sure the accuracy of the figures as posted in the books.

DISBURSEMENTS

This manual also provides the proper document flow and control over all

check disbursements and disbursements by cash (payment for payroll and other

expenses). Disbursement procedures are designed to ensure that payment is

received by the correct party. All accountable documents which include approved

vouchers, unused checks and other documents and other cash are being kept safe in

vault including all cash in hand.

Disbursement by check

The assistant cashier having been assigned as DO shall be responsible to all

checks, its requisition, control and safekeeping.

The DO also take charge in the preparation of checks, ensuring that each

approved voucher shall be charged and drawn from appropriate fund and

check are stamped ‘payee’s account only”.

Approved vouchers and supporting papers should be stamped “PAID” upon

payment.

Procedures


OPERATIONS MANUAL

19 | P a g e

1 Payment of obligations

1.1 Receive approved DV and its supporting

documents, record in the logbook the date of receipt,

DV number, payee, particulars and amount.

Disbursing Officer

1.2 Verify completeness of signatories on the DV and

prepare checks.

Disbursing Officer

1.3 Record in the Check Disbursement Record and

forward to the Cashier

Disbursing Officer

1.4 Verify completeness of signature on the DV,

reviews the amount of the check against the DV and

supporting documents. Sign the check.

Cashier

1.5 Countersign Check and forward to the disbursing

officer

General Manager

1.6 Received approved check, record in the logbook

the date of release.

Disbursing Officer

1.7 Release the original of check, attach OR/Invoice

and payee shall sign the received portion of the DV.

Disbursing Officer

1.8 Prepare Report of Check Issued. All unreleased and

cancelled checks as of the report date shall be

enumerated in the List of unreleased and cancelled

checks to be attached to the RCI.

Disbursing Officer

Disbursement by cash

Cash disbursements are payment for payroll of employees under contract of

service, sub-contractors, CVOs and those jobs under construction and

pipeline expansions.

Cash advances for various expenses as approved by the management and the

Board.

All payrolls, vouchers and supporting documents are stamped “PAID” upon

payment and are received by correct party/individual.

All cash disbursements are being liquidated after its release.

Procedures

Process Person /Unit

Responsible

1 Payment of salaries and Wages out of Cash


OPERATIONS MANUAL

20 | P a g e

1.1 Upon receipt of check with complete attachments of

approved payrolls, encash check and pay the claimants.

Disbursing Officer

Employees shall sign the received portion of the payroll to

acknowledge the receipt of payment.

1.2Record disbursement in Cash book-Cash Advance Disbursing Officer

1.3Returned unused cash to the Cashier if there is any and

record the refund as credit to cash advance and attach OR

to the Cashbook-Cash Advances

Disbursing Officer

1.4 Prepare Report of disbursement, attach paid

payrolls/supporting documents and copy of OR for unused

cash advance. Sign 'Certified Correct" portion of RD and

submit to Accounting Unit.

Disbursing Officer

1.5 Prepare JEV to record the liquidation of cash advances.

Record JEV to CDJ. Post monthly to GL and SL

Accountant

Disbursement through Bank

This disbursement is for the monthly payroll and other benefits of SKWD to

its regular, casual, OJTs and contract of service employees.

The approved bank payroll is drawn from the respective payroll account of

the main and sub-offices.

REPORTS

The assistant cashier being the disbursing officer prepares the following reports

monthly:

Report of Checks Issued – to report the checks issued during the month for

each drawn fund or bank account including those cancelled or destroyed

during preparation.

Check Summary – to report all checks issued against each approved vouchers

during the period.

Liquidation report – to liquidate cash advances for payroll and other cash

advances granted to the DO for other purpose.

Disbursement logbook – to record the checks prepared and released duly

signed by the authorized party/individual or the payee.


OPERATIONS MANUAL

21 | P a g e

Report of Accountability for Accountable Forms (RAAF) - to record all Checks

at hand including those issued during the period.

PETTY CASH FUND

The SKWD has allocated a Petty Cash Fund of P32 000.00 in Tacurong,

P6,000.00 in Isulan Sub-Office and P3,500.00 for Esperanza Sub-Office to finance its

immediate and petty purchases for daily operation. Petty Cash Fund is secured in the

safety cash box and is deposited inside the vault every afternoon together with the

petty cash fund vouchers. It is important that petty cash fund should be liquidated

immediately or 3 days from the day of request. Petty Cash purchases are only limited

to a maximum amount of P 1,000.00 and be supported with official receipts or

reimbursement expense receipt up to P500.00 upon liquidation. The Cashier then

prepares Petty Cash Fund Record supported with PCF Vouchers, Official Receipt

and/or RER upon request for replenishment.

Procedures

1 Establishment/Replenishment of Petty Cash Fund

Receive check from the cashier for the

establishment/replenishment of petty cash fund. Record

in the CDR the date, reference and amount of check.

Petty Cash Custodian

Encash check and keep the cash in the safety vault.

2 Utilization of Petty Cash Fund

Accomplish request portion of the PCV. Requesting Personnel

Sign approve portion of the PCV and return to the

requesting personnel

Immediate Supervisor/

Budget Officer and

General Manager

Submit to the petty cash custodian for the release of fund Requesting Personnel

Receive from the requesting personnel the PCV duly

approved by concerned official


Upon granting of the petty cash advance, sign the paid by

portion of the PCV


Receive petty cash advance and signs cash received by

portion of the PCV

Requesting Personnel

File the petty cash voucher Petty Cash Custodian

3 Liquidation of petty cash advance


OPERATIONS MANUAL

22 | P a g e

Submit the supporting documents to the petty cash

custodian


Check the completeness of the documents and retrieve

the PCV from file and fill up the liquidation portion.

Record the PCV to the CDR; fill up the date, reference,

name of payee, nature of payment and the amount in the

appropriate debit, credit and balance columns.


File the PVC together with the supporting documents

awaiting for replenishment.


4 Replenishment of Petty Cash Fund

Retrieve from file the PCV together with the supporting

documents. Check completeness of all PCVs for

replenishment.


Prepare the Petty Cash Replenishment Report (PCRR)

based on PCVs numerical sequence.


Sign the Certified Correct by portion

Prepare Summary of Payment and attached accomplished

PCRR and PCVs and forward to Authorized Official for

review and signature


Sign the Approved portion of the Report Immediate Supervisor

Forward to accounting for DV and check preparation Petty Cash Custodian

It is important that the accountable persons, the Cashiers and Cashiering

assistants (Collectors/tellers) must fully understand and internalize these guidelines

to preserve the integrity of SKWD Cash Management Manual.

ACCOUNTING SYSTEM MANUAL

The Accounting Section of Sultan Kudarat Water District is responsible in

Planning for control, Financial Reporting and Interpretation, Management and

Internal Audit, Tax Administration, Government Reporting and Economic Appraisal.

Specifically the Accounting Section involves recordkeeping of business transactions

governed by Generally Accepted Accounting Principles, International Accounting

Standards, Philippines Financial Reporting Standards, New Government Accounting

System and Various Government Pronouncements such as COA, LWUA, BIR, CSC and

DBM leading to the preparation of Financial Statements for use of Internal as well as

External Decision Makers.


OPERATIONS MANUAL

23 | P a g e

The Accounting Section have obligation to the SKWD, their profession, the

public and themselves to maintain the highest standards of ethical conduct. These

standards are

COMPETENCE

The Accounting Section maintains an appropriate level of professional

competence by ongoing development of their knowledge and skills.

Perform their professional duties in accordance with relevant laws,

regulations and technical standards.

Prepare complete and clear reports and recommendations after appropriate

analysis of relevant and reliable information.

CONFIDENTIALITY

Refrain from disclosing confidential information acquired in the course of

their work, except when authorized and unless legally obligated to do so.

Inform subordinates about the appropriateness of information confidentiality

acquired in the course of their work and monitor their activities to assure the

maintenance of that confidentiality.

Refrain from using or appearing to use confidential information acquired in

the course of their work for unethical or illegal advantage either personal or

through third parties.

INTEGRITY

Avoid actual or apparent conflicts of interest and advice all appropriate

parties of any potential conflict.

Refrain from engaging in any activity that would prejudice their ability to

carry out their duties ethically.

Refuse any gift, favor or hospitality that would influence or appear to

influence their actions.

Refrain from either actively or passively subverting the attainment of SKWD

legitimate and ethical objectives.

Recognize and communicate professional limitations or other constraints that

would preclude responsible judgment or successful performance of an

activity.

Communicate unfavorable as well as favorable information and professional

judgments and opinions.

Refrain from engaging in or supporting any activity that would discredit the

profession.


OPERATIONS MANUAL

24 | P a g e

OBJECTIVITY

Communicate information fairly and objectively.

Disclose fully all relevant information that could reasonably be expected to

influence an intended user’s understanding of the reports, comments and

recommendations presented.

Fundamental Principles

1. No money shall be paid out of SKWD funds and deposits except in pursuance

of an appropriation law or other specific statutory authority.

2. SKWD funds or property shall be spent or used solely for operating and public

purposes.

3. SKWD trust funds shall be available and may be spent only for the specific

purpose for which the funds were created or the funds received.

4. Fiscal responsibility shall, to the greatest extent, be shared by all those

exercising authority over the financial affairs, transactions and operations of

SULTAN KUDARAT WATER DISTRICT.

5. Disbursement or disposition of SKWD funds or property shall invariably bear

the approval of the proper officials.

6. Claims against SKWD funds shall be supported with complete documentation.

7. All laws and regulations applicable to financial transactions shall be faithfully

adhered to.

8. Generally accepted principles and practices of accounting as well as of sound

management and fiscal administration shall be observed, provided that they

do not contravene existing laws and regulations.

ACCOUNTING POLICIES

Chapter 1. Introduction


OPERATIONS MANUAL

25 | P a g e

Objectives. The Sultan Kudarat Water District Accounting System Manual

(SKWDASM) presents the basic policies and procedures; the chart of accounts; the

electronic accounting system manual, books, registries, records, forms, reports, and

financial statements; and illustrative accounting entries to be adopted by SULTAN

KUDARAT WATER DISTRICT. The objectives of the Manual are to prescribe the

following:

a. Uniform guidelines and procedures in accounting for SKWD funds and

property;

b. Coding structure and chart of accounts;

c. Accounting books, registries, records, forms, reports and financial

statements; and

d. Accounting entries.

Coverage. This Manual shall be used exclusively by SULTAN KUDARAT

WATER DISTRICT.

Legal Basis. This Manual is adopted by SKWD prescribed by the Commission

on Audit pursuant to Article IX-D, Section 2 par. (2) of the 1987 Constitution of the

Republic of the Philippines which provides that:

“The Commission on Audit shall have exclusive authority, subject to the

limitations in this Article, to define the scope of its audit and examination,

establish the techniques and methods required therefore, and promulgate

accounting and auditing rules and regulations, including those for the

prevention and disallowance of irregular, unnecessary, excessive,

extravagant, or unconscionable expenditures, or uses of government funds

and properties". (underscoring supplied)

Chapter 2. Basic Features and Policies

Sec. 1. Basic Features and Policies. The SKWDASM has the following basic

features and policies, to wit:

a. Accrual Accounting. A modified accrual basis of accounting shall be used.

Under this method, all expenses shall be recognized when incurred and

reported in the financial statements in the period to which they relate.

Income shall be on accrual basis except for transactions where accrual

basis is impractical or when other methods are required by law.


OPERATIONS MANUAL

26 | P a g e

b. One Fund Concept. This system adopts the one fund concept. Separate

fund accounting shall be done only when specifically required by law or

by a donor agency or when otherwise necessitated by circumstances

subject to prior approval of the SKWD Board of Directors.

c. Chart of Accounts and Account Codes. The SKWD chart of accounts and

coding structure with a 4-digit account alphanumeric numbering system

shall be adopted. (See SKWD Chart of Accounts and Account Codes for

details )

d. Books of Accounts. SULTAN KUDARAT WATER DISTRICT maintains

Regular Agency (RA) Books. These shall be used to record the receipt and

utilization of appropriated budget and other income/receipts which the

agencies are authorized to use and to deposit with Authorized

Government Depository Bank (AGDB). These shall consist of journals and

ledgers, as follows:

Journals

1. Check Disbursements Journal (CkDJ)

2. Cash Receipts and Deposits Journal (CRDJ)- Tacurong

3. Cash Receipts and Deposits Journal (CRDJ)- Isulan

4. Cash Receipts and Deposits Journal (CRDJ)- Esperanza

5. Petty Cash Fund Journal (PCFJ)- Tacurong

6. Petty Cash Fund Journal (PCFJ)- Isulan

7. Petty Cash Fund Journal (PCFJ)- Esperanza

8. Materials and Supplies Issued Journal (MSIJ)- Tacurong

9. Materials and Supplies Issued Journal (MSIJ)- Isulan

10. Materials and Supplies Issued Journal (MSIJ)- Esperanza

11. General Journal (GJ)

Ledgers

1. General Ledger (GL)

2. Subsidiary Ledgers (SL) for:

a. Cash

b. Receivables

c. Inventories

d. Property, Plant and Equipment

e. Construction in Progress

f. Liabilities

g. Income


OPERATIONS MANUAL

27 | P a g e

h. Expenses

e. Financial Statements. The following statements shall be prepared:

Balance Sheet

Statement of Government Equity

Statement of Income and Expenses

Statement of Cash Flows

Notes to Financial Statements shall accompany the above

statements.

f. Two-Money Column Trial Balance. The two - money column trial balance

showing the account balances shall be used.

g. Financial Expenses. Financial expenses such as bank charges, interest

expenses, commitment charges and other related expenses shall be

separately classified from Maintenance and Other Operating Expenses

(MOOE).

h. Perpetual Inventory of Supplies and Materials. Supplies and materials

purchased for inventory purposes shall be recorded using the perpetual

inventory system. Regular purchases shall be coursed thru the inventory

account and issuances thereof shall be recorded as they take place except

those purchased out of Petty Cash Fund which shall be charged directly to

the appropriate expense accounts.

i. Valuation of Inventory. Cost of ending inventory of supplies and

materials shall be computed using the moving average method.

j. Maintenance of Supplies and Property, Plant and Equipment Ledger

Cards. For appropriate check and balance, the SKWD Accounting Unit, as

well as the Property Office, shall maintain Supplies Ledger Cards/Stock

Cards by stock number and Property, Plant and Equipment Ledger

Cards/Property Cards by category of property, plant and equipment,

respectively.

k. Construction of Assets. For assets under construction, the

Construction Period Theory shall be applied for costing purposes.

Liquidated damages charged and paid for by the contractor shall be

deducted from the total cost of the project. Any related expenses

incurred during the construction of the project, such as taxes, interest,

license fees, permit fees, clearance fee, etc. shall be capitalized, and

those incurred after the construction shall form part of operating cost.


OPERATIONS MANUAL

28 | P a g e

l. Depreciation. The straight-line method of depreciation shall be used.

Depreciation shall start on the second month after purchase of the

property, plant and equipment, and a residual value equivalent to ten

percent of the purchase cost shall be set-up. Serviceable assets that are

no longer being used shall not be charged any depreciation.

m. Reclassification of Assets. Serviceable assets no longer being used shall

be reclassified to “Other Assets” account and shall not be subject to

depreciation.

Allowance for Doubtful Accounts. An Allowance for Doubtful Accounts

shall be set up for estimated uncollectible trade receivables to allow for their

fair valuation.

n. Elimination of Contingent Accounts. Contingent accounts shall no longer

be used. All financial transactions shall be recorded using the appropriate

accounts. Cash shortages and disallowed payments, which become final

and executory, shall be recorded under receivable accounts “Due From

Officers and Employees” or “Receivables-Disallowances/ Charges”, as the

case may be.

o. Recognition of Liability. Liability shall be recognized at the time goods

and services are accepted or rendered and supplier/creditor bills are

received.

p. Interest Accrual. Whenever practical and appropriate, interest income

and/or expense shall be accrued and recognized in the books of accounts.

q. Accounting for Borrowings and Loans. All borrowings and loans incurred

shall be recorded to the appropriate liability accounts.

r. Petty Cash Fund. The Petty Cash Fund shall be maintained under the

imprest system. As such, all replenishments shall be directly charged to

the expense account and at all times, the Petty Cash Fund shall be equal

to the total cash on hand and the unreplenished expenses. The Petty

Cash Fund shall not be used to purchase regular inventory/items for

stock.

s. Foreign Currency Adjustment. Cash deposits in foreign currency and

outstanding foreign loans shall be computed at the exchange rate

prescribed by the Bangko Sentral ng Pilipinas at balance sheet date. The

total cash deposits and foreign loans payable shall be adjusted at the end

of each month and any gain or loss on foreign exchange shall be

recognized. The subsidiary ledger for foreign currency obligations shall


OPERATIONS MANUAL

29 | P a g e

reflect the appropriate foreign currency in which the loan is payable. The

liability shall be expressed both in the foreign and local currency.

Chapter 3. Accounting Systems

General Accounting Plan. The General Accounting Plan (GAP) shows

the overall accounting system of SULTAN KUDARAT WATER DISTRICT. It includes the

source documents, the flow of transactions and its accumulation in the books of

accounts and finally their conversion into financial information/data presented in the

financial reports

The following accounting systems are:

Budgetary Accounts System;

Receipts/Income and Deposit System;

Disbursement System; and

Financial Reporting System.

A. BUDGETARY ACCOUNTS SYSTEM

Sec. 1. Accounting for Obligation. Obligation refers to a commitment by

SULTAN KUDARAT WATER DISTRICT arising from an act of a duly authorized official

which binds the SKWD to the immediate or eventual payment of a sum of money.

SKWD is authorized to incur obligations only in the performance of activities which

are in pursuits of its functions and programs authorized in appropriation acts/laws

within the limit of the Corporate Operating Budget (COB).

Obligations shall be taken up in the registries through the Budget Utilization

Worksheet (BUW) prepared/processed by the Budget Unit. The Budget Officer/

Head of the Budget Unit/designated Budget Officer shall certify the availability of

allotment and such is duly obligated by signing in the appropriate box of the Budget

Utilization SLIP (BUS). On the other hand, the Accountant/Head of the Accounting

Unit shall certify the correctness and validity of obligations, and availability of funds.

Sec. 2. Procedures in Monitoring of the Approved Budget

Activity Area of

Responsibility


OPERATIONS MANUAL

30 | P a g e

Activity Area of

Responsibility

1. Receives the approved COB from the DBM. Records the COB in

the logbook and forwards the same to Corporate Budget Assistant

for recording in the Budget and Utilization Worksheet (BUW).

Corporate Budget

Specialist

2. Records the COB in the appropriate BUW and files the same COB

for future reference.

Corporate Budget

Assistant

3. Receives the Disbursement Voucher/Payroll and supporting

documents from the concerned office/personnel.

4. Verifies completeness of the documents. If incomplete, returns

the documents to concerned office for completion. If complete,

records same in the logbook maintained. Forwards to Corporate

Budget Assistant for recording in the appropriate BUW.

Corporate Budget

Specialist

5. Verifies availability of budget based on the BUW. If no budget is

available returns the documents to the office/ personnel

concerned. If there is

available balance to cover the expense, prepares the certification

for the availability of budget.

6. Forwards the same together with the claim documents to the

Head of Corporate Budget Office for review and approval of the

certification.

Corporate Budget

Assistant

7. Reviews and checks the documents and affixes his signature in

the certification of availability of budget.

8. Returns the documents to the concerned Corporate Budget Office

Staff for recording in the appropriate BUW.

Corporate Budget

Specialist

9. Records the amount of charges in the “Utilization” column of the

appropriate BUW based on the approved certification of the

Corporate Budget


OPERATIONS MANUAL

31 | P a g e

Activity Area of

Responsibility

availability of budget.

10. Forwards the documents in the Accounting Unit for processing.

Assistant

In case the Accounting Unit made corrections or adjustments during the

processing but before payment of the claim, the Accounting Unit shall inform the

Corporate Budget Unit of the adjustment/correction to effect the same in the BUW

through a positive entry (if additional charge is necessary) or a negative entry (if

reduction) in the “Utilization” column.

In case of refund of cash advance granted during the year; overpayment of

expenses during the year; and disallowances/charges which become final and

executory, certified copies of official receipts for the refunds, copies of bills for

overpayments and Notice that the disallowances are final and executory shall be

furnished by the Accounting Unit to the Corporate Budget Unit for the

adjustment/correction of BUW.

B. INCOME/COLLECTIONS AND DEPOSITS

Sec. 1. Receipts/Income Collections and Deposits System. The

Receipts/Income Collections and Deposits System covers the

processes of acknowledging and reporting income/collections,

deposits of collections with Authorized Government Depository

Bank (AGDB) and recording of collections and deposits in the books

of accounts of SKWD.

Sources of Income of SKWD. The income of SKWD are classified into general

income accounts composed of:

1. Inspection fee

2. Other Service Income

3. Rent Income

4. Income from Waterworks System- Metered Sales

5. Sales Revenue

6. Fines and Penalties- Business Income

7. Interest Income

8. Income from Grants and Donations


OPERATIONS MANUAL

32 | P a g e

Methods of Accounting for Income. SKWD adopt the following accounting

methods of recording income:

1. Accrual Method - Accrual method of accounting shall be used by SKWD

when income is realized (earned) during the accounting period regardless

of cash receipt. Accounts receivable is set up and the general accounts

according to nature and classification are credited.

2. Modified Accrual – Under the modified accrual basis, SKWD income is

recorded as “Deferred Credits to Income” and the appropriate receivable

account is debited. The income account is recognized upon receipt of

collection and the “Deferred Credits to Income” account is adjusted

accordingly.

3. Cash Basis - Cash basis of accounting shall be used for all other taxes,

fees, charges and other revenues where accrual method is impractical.

The income account is credited upon collection of the cash or its

equivalent.

Fines and Penalties. Fines and penalties shall be recognized as income of the

year these were collected.

Other Receipts. Other receipts of SKWD shall be comprised of, but not

limited to the following:

1. Refund of cash advances - When cash advances for official travels are

granted, the account “Due from Officers and Employees” is debited and

when refunds are made, the same account is credited. Cash advances for

salaries and wages shall be recorded as debits to the account “Cash-

Disbursing Officers” and any refunds thereof shall be credited to the same

account.

2. Receipts of performance/bidders/bail bonds - Performance bond posted

by contractor or supplier to guaranty full and faithful performance of

their contract may be in the form of cash or certified checks or surety.

Performance bond in cash or certified check shall be acknowledged by the

issuance of official receipt and recorded in the book of accounts by the

Accountant thru a Journal Entry Voucher (JEV) for the purpose. In case of

surety bond, an acknowledgement receipt shall be issued by the

authorized official.


OPERATIONS MANUAL

33 | P a g e

3. Refund for overpayment of expenses - Refunds as a result of

overpayment of expenses shall be recorded as a credit to the appropriate

expense account if paid in the same year or to Prior Years’ Adjustments if

paid in the ensuing year. This transaction shall reduce the amount of

expense previously recorded.

4. Inter-agency transferred funds - Cash received from another agency for

the purpose of implementing projects of that agency is recorded in the

books as a credit to account “Due to NGAs” or “Due to LGUs”, as the case

maybe.

Deposit of Collections. All Collecting Officers shall deposit intact all their

collections, as well as collections turned over to them by sub-collectors/tellers, with

AGDB daily or not later than the next banking day. They shall record all deposits

made in the Daily Cash Receipts and Deposits Record and respective bank-cash-book.

Reporting of Collections and Deposits. At the close of each business day,

the Collecting Officers shall accomplish the Report of Collections and Deposits (RCD)

in accordance with the instructions provided in Volume II of the NGAS Manual for

the RCD. All collections shall be deposited with AGDB for the account of SKWD daily

or not later than the next banking day.

Procedures for Collections and Deposits Through the Collecting Officer

Activity

Area of

Responsibility

1. Receives cash/check from payor representing collection based on

the Billing Statement prepared by the Billing Section.

Cashiering Assistant

2. Issues Official Receipt (OR) to acknowledge receipt of cash/check.

Note: The OR shall be prepared in two copies and shall be

distributed as follows:

Original - Payor

Copy 2 - To be attached to the Report of Collections and Deposits

(RCD)

3. Records collections in the Cash Receipts Record (CRR).


OPERATIONS MANUAL

34 | P a g e

4. Prepares Deposit Slip (DS) in three copies.

Note : The DS shall be distributed as follows:

Original - AGDB

Copy 2 - To be attached to RCD

Copy 3 - Cash Unit file

HEAD OF CASH UNIT

Head of Cash Unit

5. Deposits collections with AGDB.

6. Based on the validated DS from the AGDB and copy of the ORs on

file, prepares Report of Collections and Deposits (RCD) in two copies.

Initials on the RCD and forwards the same together with Copy 2 of

the ORs and DS to the Head of the Cash Unit for review and

signature.

7. Reviews and signs the RCD. Forwards original of RCD, Copy 2 of the

ORs and DS to the Designated Staff for submission to the Accounting

Unit. Note:

The RCD shall be distributed as follows:

Original - Accounting Unit together with Copy No. 2 of the ORs and

DS - to support the JEV Copy 2 - Cash Unit file

8. Records the RCD in the logbook maintained and forwards the same

with the ORs and DS to the Accounting Unit for recording in the

books of accounts

9. Receives original of RCD with Copy 2 of the ORs and DS from the

Cash Unit. Records receipt in the logbook maintained for the

purpose and forwards the same to the Bookkeeper for review and

preparation of the JEV. Senior Accounting

Processor /

Bookkeeper 10. Based on the RCD, prepares JEV in two copies and signs

“Prepared by” portion of the JEV. Forwards the JEV and documents to

the Head of the Accounting Unit for review and signature.

11. Reviews and signs ‘Certified Correct by’ portion of the JEV.

Forwards the JEV and documents to the Bookkeeper for Filing.

Head of Accounting

Unit

Dishonored Checks. There are instances that checks received by Collecting Officers

in payment of billed charges, fees and other debt due to SKWD are dishonored by

the drawee banks. A check is said to be dishonored by non-payment when, upon its

being duly presented for payment, such payment is refused or cannot be obtained.


OPERATIONS MANUAL

35 | P a g e

(Sec. 83, RA No. 2031, Negotiable Instrument Law). It may also be defined as those

checks paid to the agency, which were dishonored by the AGDB due to Drawn

Against Insufficient Fund (DAIF) or Drawn Against Uncleared Deposits (DAUD).

Procedures in Recording Dishonored Checks

Activity

Area of

Responsibility

1. Receives from AGDB the Debit Memo (DM) and copies of dishonored

checks.

Head of Cash

Unit

Head of Cash

Unit

2. Verifies the dishonored checks against the previous months’ RCDs

maintained on file to ascertain that the checks were included in the

previous months’ collections. If not included, verifies from AGDB the details

of the dishonored checks.

3. If dishonored checks are included in the RCDs, prepares Notice of

Dishonor to inform the drawers/indorsers/payors that the checks were

dishonored by the AGDB. Note :The Notice of Dishonor shall be prepared in

three copies and shall be distributed as follows: Original - Drawer (To be

delivered personally or thru registered mail) Copy 2 - Accounting Unit file

Copy 3 - Cash Unit file

4. Retrieves from file copy of the OR covering the dishonored check and

indicates in the OR the following notation: “Cancelled (date of Notice of

Dishonor) per Bank Debit/Voucher No._____ dated _________”

5. Retrieves CRR on file and records the dishonored checks with the

following notation: “To take up Bank’s Debit Memo No. ___ dated ____

covering Check No. ___ for P ____________ acknowledged under OR No.

_____ dated _______”.

6. Prepares list of dishonored checks in two copies. Forwards Copy 2 of the

list and the dishonored checks to the Accounting Unit for preparation of the

JEV.

7. Receives the list together with originals of dishonored checks and the

Debit Memo from the Cash Unit and records the same in the logbook

maintained for the purpose.

Senior

Accounting

Processor/

Bookkeeper


OPERATIONS MANUAL

36 | P a g e

8. Based on the list, prepares the JEV in two copies. Signs “Prepared by”

portion of the JEV and forwards the same to the Head of the Accounting

Unit for review and signature.

Senior

Accounting

Processor/

Bookkeeper

9. Reviews and signs “Certified Correct by” portion of the JEV. Forwards the

JEV supported by the list, originals of dishonored checks and notice of

dishonor to the Bookkeeper for recording in the books of accounts.

Head of

Accounting

Unit

C. DISBURSEMENTS

Sec. 1. Disbursements Defined. Disbursements

constitute all cash paid out during a given period either in currency

(cash) or by check. It may also mean the settlement of government

payables/obligations by cash or by check. It shall be covered by

Disbursement Voucher (DV)/Petty Cash Voucher (PCV) or payroll.

Basic Requirements for Disbursements. The basic requirements applicable to

all types of disbursements made by SKWD are as follows:

1. Existence of a lawful and sufficient appropriation certified as available by

the Budget Officer;

2. Existence of a valid obligation certified by the Chief Accountant/Head of

Accounting Unit;

3. Legality of transactions and conformity with laws, rules and regulation;

4. Approval of the expense by the Chief of Office or by his duly authorized

representative; and

5. Submission of proper evidence to establish the claim.

Disbursements System. The Disbursements System involves the preparation

and processing of disbursement voucher (DV); preparation and issuance of check;

payment by cash; granting, utilization, and liquidation/replenishment of cash

advances.

Certification on Disbursements. Disbursements from SKWD funds shall

require the following certifications on the DV:

1. Certification and approval of vouchers and payrolls as to validity,

propriety and legality of the claim (Box B of DV) by head of the

department or office who has administrative control of the fund

concerned;


OPERATIONS MANUAL

37 | P a g e

2. Necessary documents supporting the DV and payrolls as certified and

reviewed by the Accountant/Head of Accounting Unit (Box A of DV); and

3. Certification that funds are available for the purpose by the

Accountant/Head of Accounting Unit (Box A of DV).

Disbursements by Checks. Checks shall be drawn only on duly approved DV.

These shall be reported and recorded in the books of accounts only when actually

released to the respective payees.

Recording of Check Disbursements in the Check Disbursements Record

(CkDR). All checks issued including cancelled checks shall be recorded

chronologically in the CkDR. The dates checks were actually released shall be

indicated in the appropriate column provided for in the CkDR.

Reporting of Checks Issued/Released. All checks actually released to

claimants shall be included in the Report of Checks Issued (RCI), which shall be

prepared daily by the Cashier. The RCI shall be submitted to the Accounting Unit. All

unreleased checks as of the report date shall be enumerated in a “List of Unreleased

Checks” to be attached to the RCI.

Procedures for Disbursements by Checks.

Activity

Area of

Responsibility

A. Processing of Disbursement Voucher and JEV

1. Receives request for payments, billing statement, charge invoice and the

likes with copies of original supporting documents from requesting parties.

Checks completeness of supporting documents. If incomplete, returns to the

concerned party for compliance. Accounting

Processor

2. If complete, checked whether the transactions are subject to withholding

taxes. If taxable attached computed BIR form 2306 and 2307

3. Checks Ledgers/Subsidiary ledgers from file and determines whether there

was prior payment of the same claim. If the claim was already paid, returns

the supporting documents to the Receiving/Releasing Staff to be returned to

claimant. If not, forward to Head of Accounting Unit

Sr. Accounting

Processor /

Bookeeper

4. Tagged account codes on received request for payment and its original

supporting documents and forward to Sr. Accounting Processor

Head of

Accounting

Unit


OPERATIONS MANUAL

38 | P a g e

5. Record transactions to Check Disbursment Journal through computerized

accounting program (see jualsa systems accounting manuals for details) Sr. Accounting

Processor /

Bookeeper

6. Print 2 copies of DV, JEV and BUS and signs in Prepared by portion at JEV

and file 1 copy of JEV

7. Records in the logbook the date of release of Copies of DV

8. Reviews DV, BUS, JEV with supporting documents. Signs in Box A of DV .

Forward the documents to the Corporate Budget Assistant.

Head of

Accounting

Unit

9. Record BUS to BUW and forward to Corporate Budget Specialist

Corporate

Budget

Assistant

10. Reviews DV, BUS, JEV with supporting documents. Signs in Box A of BUS.

Forward the documents to the Sr. Financial Planning Specialist

Corporate

Budget

Specialist

11. Reviews DV, BUS, JEV with supporting documents. Signs in Approved by

portion at JEV and forward to Administrative Department Manager

Sr. Financial

Planning

Specialist

12. Reviews DV, BUS, JEV with supporting documents. Signs in Box B of BUS.

Forward the documents to the Cashier C

Administrative

Department

Manager

B. Preparation and Approval of Checks

1. Receives 2 copies of approved DV, BUS and 1 copy of JEV and originals of

supporting documents.

Cashier C

2. Verifies completeness of signatories on the DV and print check through

SKWD computerized accounting program (see jualsa systems accounting

manuals for details)

3. Reviews the amount of the check against the DV and supporting

documents and forward to the Head of Cashier

4. Reviews the amount of the check against the DV and supporting

documents. Signs the check and forward to General Manager Head of

Cashier


OPERATIONS MANUAL

39 | P a g e

5. Signs in Box B of DV and countersigns check. Forwards 2 copies of DV,

BUS, Checks and 1 copy of JEV and supporting documents to the Cashier C. General

Manager

6. Records in the logbook the date of release of 2 copies of DV, BUS, Checks

and 1 copy of JEV and originals of supporting documents. Cashier C

Cashier C

7. Releases the original of check and Attaches OR/Invoice on DV. Files

Copies of DV. BUS , Checks, JEV and originals of supporting documents and

forward to accounting unit for filing.

Disbursements by Cash. Disbursements by cash shall be made from cash

advances drawn and maintained in accordance with COA rules and regulations. Cash

payments shall be made based on duly approved payrolls/disbursements vouchers.

Cash Advances for Travel. Cash advances granted for travel shall be

accounted for as Due from Officers and Employees and these are subject to

liquidation upon travel completion. For liquidation of travel where the amount of cash

advance is equal to or more than the travel expenses incurred, the Liquidation Report

form shall be prepared by the officers/employees concerned and submitted to the

Accounting Unit as basis for JEV preparation. The excess cash advance shall be

refunded and an OR shall be issued to acknowledge receipt thereof. In case the

amount of cash advance is less than the travel expenses incurred, a Liquidation

Report shall be submitted to liquidate the cash advance previously granted and a DV

shall be prepared to claim reimbursement of the deficiency in amount.

Procedures for Disbursements by Cash - Payment for Payroll and Other Expenses

ACTIVITY AREA OF

RESPONSIBILITY

1. Receives the approved check from the Cashier.

Cashier C

2. Encash check in a Government Savings Bank.

3. Pays officials and employees/other payees. Note 1 Employees/payees

shall sign on the received portion of the payroll/DV to acknowledge receipt

of payment. Note 2 If there are unclaimed salaries, refund the same within

a reasonable time. OR representing the refund shall be issued by the

Cashier.


OPERATIONS MANUAL

40 | P a g e

4. Based on the paid payroll/DV and supporting documents, Prepares

liquidation report of the cash advance granted to the Disbursing Officer.

Cashier C

5. Prepares JEV through SKWD computerized accounting program based on

the liquidating report and supporting documents received.(see jualsa

system accounting manual)

Sr. Accounting

Processor /

Bookkeeper

Disbursements Through Bank - Payroll Payment

ACTIVITY

AREA OF

RESPONSIBILITY

1. Prepares summary of monthly salaries, premiums to GSIS, Pag-ibig,

Philhealth, Profund of respective employees Cashier

2. Post salaries and wages of respective employees together with their

monthly premiums and other obligations to the general payroll

3. Check data on the general payroll and sign for completeness and

verification

Head of

Accounting

Unit

4. Approved the General Payroll General Payroll

5.Prepares PACSVAL for bank releases Head of Cash

Unit 6. Prepares Fund Transfer form

7. Check data from General Payroll the summary of employees net

earnings and signed PACSVAL form for bank releases

Head of

Accounting

Unit

8. Approved PACSVAL and countersign fund transfer form for bank

release

General

Manager

9. Receives the approved PACSVAL and Validated countersign fund

transfer form from SKWD Depository Bank and prepare JEV through

SKWD computerized accounting program (see jualsa system accounting

manual)

Senior

Accounting

Processor /

Bookkeeper

Disbursements through Petty Cash Fund. Petty Cash Fund shall be

maintained under the imprest fund system. The fund shall be sufficient for the non-

recurring, emergency and petty expenses of the SKWD. Disbursements from the fund

shall be through the Petty Cash Voucher (PCV) which shall be approved by authorized

officials and signed by the payee to acknowledge the amount received. The official

receipt or its equivalent is attached to the PCV.


OPERATIONS MANUAL

41 | P a g e

Procedures for Disbursements through Petty Cash Fund

Activity Area of

Responsibility

1. Receipt of Check for the Establishment/ Replenishment of Petty

Cash Fund Cashier C

2. Encashes check in GSB and keeps the cash in a safety vault. Cashier C

Utilization of Petty Cash Fund

3. Accomplishes Box A ‘Requested by’ portion of the Petty Cash

Voucher (PCV) with required supporting documents Requesting

Personnel

4. Signs Box A ‘Recommending Approval’ portion of the PCV and

returns to Requesting Personnel. Immediate

Supervisor

5. Signs Box A ‘Approved by’ portion of the PCV and returns to

Requesting Personnel.

General

Manager

6.Submits to the Petty Cash Custodian for the release of fund. Requesting

Personnel

7. Receives from the Requesting Personnel the PCV duly approved by

concerned official. Cashier C

8. Upon granting of the petty cash advance and signs in Box B ‘Paid

by’ portion of the PCV.

9. Receives petty cash and signs in Box B ‘Cash Received by portion of

the PCV.

Requesting

Personnel

10. Retrieves CDR from file and records paid PCVs. Fills up the

following columns: date, reference, name of payee, nature of

payment, amount in the credit column and cash advance balance. Cashier C

11. Files the original of PCV awaiting liquidation.

Liquidation of Petty Cash Advance

12. Receives from Requesting Personnel Copy of the PCV together

with supporting documents. Checks and reviews completeness of

documents such as the date, amount and nature of expenses paid as

shown in the supporting documents.

Cashier C

13. If incomplete, returns to Requesting Personnel for completion of

needed supporting documents.

14. If complete, retrieves the original of PCV from file and fills up Box

D ‘Liquidation Submitted’ portion of the original


OPERATIONS MANUAL

42 | P a g e

15. Checks the appropriate boxes for ‘Received Refund’ or

‘Reimbursement Paid’ portion and signs Box C of the PCV.

Cashier C

16.Checks and fills up the appropriate boxes for ‘Liquidation

Submitted’ and ‘Reimbursement Paid’ upon submission of necessary

supporting documents and receipt or reimbursement of cash, if any,

and signs the PCV.

Requesting

Personnel

17. If the amount granted is equal to the amount paid as shown in

the liquidated PCV, proceeds to Sequence No. 19.

Cashier C

18. If the amount is not equal to the amount paid, retrieves from file

the CDR and records the necessary adjustments based on the

liquidated PCV. Fills up the following columns: date, reference, name

of payee, and nature of payment, amount in the appropriate debit,

credit and balance columns.

19. Files the original of the PCV together with the supporting

documents awaiting replenishment.

Replenishment of Petty Cash Fund

20. Retrieves from file the original of the PCV together with the

supporting documents. Checks the completeness of all PCVs for

replenishment Cashier C

21. Prepares request for payment as replenishment of Petty Cash

Fund and forward to Accounting Processor

22. Receives Petty Cash Voucher with original supporting documents

and check for completeness

Accounting

Processor

23. Prepare JEV through SKWD computerized accounting program

(see jualsa system accounting manual for details)

24. Print Summary of Journal Transaction and attached to PCV

25. See Sec. 18. Procedures for Disbursements by Checks.

D. PROPERTY, PLANT AND EQUIPMENT, AND INVENTORY ACCOUNTS

Sec. 1. Purchase or Construction of Property, Plant

and Equipment. Property, plant and equipment acquired through

purchase shall include all costs incurred to bring them to the

location necessary for their intended use, like transportation costs,


OPERATIONS MANUAL

43 | P a g e

freight charges, installation costs, etc. These are recorded in the

books of accounts as Assets after inspection and acceptance of

delivery.

During construction period, property, plant and equipment shall be classified

and recorded as “Construction in Progress” with the appropriate asset classification.

As soon as these are completed, the "Construction in Progress" account shall be

transferred to the appropriate asset accounts.

Property and Inventory Accounting System. The Property and Inventory

Accounting System consists of the system of monitoring, controlling and recording of

acquisition and disposal of property and inventory.

The system starts with the receipt of the purchased inventory items and

equipment. The requesting office in need of the inventory items and equipment

after determining that the items are not available in stock shall prepare and cause

the approval of the Purchase Request (PR). Based on the approved PR and after

accomplishing all the required procedures adopting a particular mode of

procurement, SKWD shall issue a duly approved Purchase Order.

The sub-systems are as follows:

1. Receipt, Inspection, Acceptance and Recording Deliveries of Inventory

Items and Equipment

2. Requisition and Issuance of Inventory Items

3. Requisition and Issuance of Equipment

Perpetual Inventory Method. Purchase of supplies and materials for stock,

regardless of whether or not they are consumed within the accounting period, shall

be recorded as Inventory account. Under the perpetual inventory method, an

inventory control account is maintained in the General Ledger on a current basis.

Regular purchases shall be recorded under the Inventory account and

issuance thereof shall be recorded based on the Report of Supplies and Materials

Issued. Purchases out of the Petty Cash Fund shall be charged immediately to the

appropriate expense accounts.

The Accounting Unit shall maintain perpetual inventory records, such as the

Supplies Ledger Cards for each inventory stock, Property, Plant and Equipment


OPERATIONS MANUAL

44 | P a g e

Ledger Cards for each category of plant, property and equipment including work and

other animals, livestock, etc. The subsidiary ledger cards shall contain the details of

the General Ledger accounts.

For check and balance, the Property and Supply Office/Unit shall maintain

Property Cards (PC) for property, plant and equipment, and Stock Cards (SC) for

inventories. The balance in quantity per PC and SC should always reconcile with the

ledger cards of the Accounting Unit.

Moving Average Method. The moving average method of costing shall be

used for costing inventories. This is a method of calculating cost of inventory on the

basis of weighted average on the date of issue. The Accounting Unit shall be

responsible in computing the cost of inventory on a regular basis.

Procedures in the Receipt, Inspection, Acceptance and Recording Deliveries of Inventory Items and Equipment

Activity Area of Responsibility

1. Signs “Received” portion of the original and Copy 2 of the

Delivery Receipt (DR). Files the original and returns Copy 2 of

the DR to the Supplier

Property/Supply

Officer

2. Inspects and verifies items as to quantity and conformity with

specifications based on the DR and approved PO. Inspector committee

3. If in order, Prepares Inspection and Acceptance Report (IAR) in

six copies. Forwards IAR, original of DR, and approved PO from

file to Property Inspector for signs Property/Supply

Officer 4. If specifications are not in order or delivery is not complete,

indicates notation that the deliveries are not in conformity with

specifications agreed under the approved PO or deliveries are

not complete.


OPERATIONS MANUAL

45 | P a g e

5. Signs in ‘Acceptance’ column, acknowledging receipt of the

items delivered. Checks the appropriate box whether complete

or partial (indicate quantity received) delivery, and indicate the

date of receipt and remarks, if any. For succeeding activities on

processing of payment for delivered inventory items and

equipment, refer Procedures in the Recording of Obligations

and Procedures in Disbursements by Checks.

Property/Supply

Officer

6. Posts necessary information to the Property, Plant and

Equipment Ledger Card (PPELC)/Supply Ledger Card (SLC) based

on the IAR and PO.

Accounting Unit /

Property/Supply

Officer

Procedures in the Requisition and Issuance of Inventory Items


1. Retrieves the original copies of RIS from temporary file.

Checks the completeness of the RIS. If not complete, verifies

with the Supply Officer. If complete, prepares RSMI in 2

copies.

Head of the Property

and Supply Unit

2. Initials in the ‘Certified by’ portion of the RSMI.

3. Receives signed RSMI and forwards to Accounting Unit the

original and Copy 2 of RSMI together with originals of RIS Stock Card Keeper

4. Receives original and copy of RSMI and RIS. Checks and

verifies the completeness of information. Fills up the ‘To be

filled up in the Accounting Unit’ portion of RSMI.

Sr. Accounting

Processor

5. Prepares JEV through SKWD computerized accounting

program in two copies based on the RSMI to record the

issuance of stock. (see jualsa accounting system manual)

6. Initials in the ‘Certified by’ portion of the RSMI.

7. Signs in the ‘Prepared by’ portion of the JEV.

8. Receives original and copy of RSMI and RIS. Checks and

verifies the completeness of information. Retrieves SLC from

file and records RSMI in the SLC. Accounting Processor

9. Signs in the ‘Posted by/date’ portion of the RSMI.

10.Receives signed JEV and Sign in the ‘Certified Correct by’

portion of the JEV. Head of Accounting

Unit 11. For succeeding activities, refer to Preparation and


OPERATIONS MANUAL

46 | P a g e

Submission of Trial Balances and Other Reports.

Procedures in the Requisition and Issuance of Equipment


1. Fills up the necessary information pertaining to requisition,

except ‘Issuance’ column of the RIS. Requesting Personnel

2. Reviews RIS and signs ‘Requested By’ in the Requisition

column. Authorized Official

3. Records the signed RIS in the logbook and indicate date,

particulars and remarks. Forwards the same to Property and

Supply Unit for processing of the requisition.


4. Receives signed RIS from Requesting Office. Records the

date, particulars and Requesting Office in the logbook.

Assigns number on RIS and issues Copy 3 to Requesting

Personnel for file.

Receiving Staff

5. Verifies RIS and checks against the PR.

Property Officer 6. Initials RIS and forwards the original and Copy 2 of RIS to

the Head of the Property and Supply Unit for review and

approval.

7. Reviews RIS and signs the ‘Approved By’ portion of RIS.

Forwards Copies 1-2 of RIS to Property Custodian. Note : ARE

shall be distributed as follows: Original - Property and Supply

Unit file Copy 2 - Recipient or user of the property file

Head of the Property

and Supply Unit

8. Retrieves Copy 3 of RIS. Checks item if it is in conformity

with RIS. Signs ‘Received By’ portion of original and Copy 2 of

ARE and RIS. Requesting Personnel

9. Returns original ARE and Copies 1-2 of RIS to Property

Custodian/Officer for recording in the Property Card. Files

Copy 2 of ARE and Copy 3 of RIS.

10. Files original of ARE per accountable officer/employee and

Copy 2 of RIS. Forwards the original RIS to the Accounting

Unit.

Property Officer

11. Receives original of the RIS. Retrieves the PPELC and

posts information pertaining to issuance/transfer of property.

Sr. Accounting

Processor/ PPELC

Keeper


OPERATIONS MANUAL

47 | P a g e

E. MISCELLANEOUS TRANSACTIONS

Sec. 1. Miscellaneous Transactions. Miscellaneous transactions are transactions types

that are unique and not recurring in the ordinary course of SKWD operations. These

seldom take place or should not happen at all. Some of the miscellaneous

transactions are as follows:

1. Loss of Cash and Property

2. Request for Relief from Accountability

3. Cash Overage

4. Stale Commercial Checks

5. Set-up and Settlement of Disallowances

6. Refund of Overpayments

Sec. 2. Accounting for Loss of Cash and Property. Loss of cash and property may be

due to malversation, theft, robbery, fortuitous event or other causes.

Cash shortage discovered during cash examination conducted by auditors is

reported through the Report of Cash Examination. The Auditor issues an audit report

in case of shortage in property accountability. As soon as a shortage is definitely

established, the Auditor shall issue a memorandum pertaining thereto and the

Accountant shall draw a JEV to record the shortage as a receivable from the

Accountable Officer concerned.

In case of loss of property due to other causes like, theft, force majeure, fire,

etc., a report thereon shall be prepared by the Accountable Officer concerned for

purposes of requesting relief from accountability. No accounting entry shall be made

but the loss shall be disclosed in the notes to financial statements pending result of

request for relief from accountability.

Sec. 3. Grant of Relief from Accountability. When a request for relief from

accountability for shortages or loss of funds is granted, a copy of the decision shall

be forwarded to the Chief Accountant who shall draw a JEV to record the

transaction. The loss shall be debited to the Loss of Assets account and credited to

the appropriate receivable account. In case the request for relief is denied,

immediate payment of the shortage shall be demanded from the Accountable

Officer. Restitution shall be acknowledged by the issuance of an official receipt.

In case the request for relief from accountability for loss of property caused

by fire, theft, force majeure or other causes is granted, a copy of the decision shall


OPERATIONS MANUAL

48 | P a g e

likewise be forwarded to the Chief Accountant for the preparation of the JEV. The

loss shall be debited to the Loss of Assets account and credited to the appropriate

asset account. If request for relief from accountability is denied, the loss shall be

taken up as a receivable from the Accountable Officer or employee liable for the loss

and shall be credited to the appropriate asset account.

Sec. 4. Accounting for Cash Overage. In case the cash examination disclosed cash

overage, as determined by the Auditor during cash examination, the amount shall be

forfeited in favor of the SKWD and an official receipt shall be issued by the Cashier.

The cash overage shall be taken up as Other Income.

Sec. 5. Accounting for Stale Checks. Checks may be cancelled when they become

stale. The depository bank considers a check stale, if it has been outstanding for over

six months from date of issue or as prescribed.

reported in the RC

A stale check shall be marked cancelled on its face and reported as follows:

1. Unclaimed stale checks which are still with Cashier shall be cancelled and

reported in the List of Unreleased Checks as cancelled. The List of

Unreleased Checks is attached to the RCI.

2. For stale checks which are in the hands of the payees or holders in due

course and requested for replacements, new checks may be issued upon

submission of the stale checks to the Accounting Unit. A certified copy of

the previously paid DVs shall be attached to the request for replacement.

A JEV shall be prepared to take up the cancellation. The replacement

check shall be reported in the RCI.

Sec. 6. Accounting for Disallowances. Disallowances shall be taken up in the books

of accounts only when they become final and executory. The Accountant shall

prepare the JEV to take up the Receivable-Disallowances/Charges and credit the

appropriate expense account for the current year or Prior Years’ Adjustment account

if pertaining to expenses of previous years.

Cash settlement of disallowances shall be acknowledged through the issuance of

an official receipt and reported by the Cashier in the RCD.

Sec. 7. Accounting for Overpayments. Sometimes overpayments or even double

payment of expenditures do happen in agencies. These could be avoided with the

institution of proper controls but some could not be avoided because of built-in


OPERATIONS MANUAL

49 | P a g e

procedures. One example is the payment of payrolls. Payrolls are prepared in

advance and some agencies pay their employees through the banking system. All

these are done before reports of attendance are submitted, making it impossible to

know the exact amount to be paid in case there are absences without pay during the

pay periods. In case of overpayments, refunds shall be demanded from the

employees concerned.

Pro-forma Accounting Entries. The following are the pro-forma accounting

entries for miscellaneous transactions:

Particulars Account Title Account

Code Dr. Cr.

1. Cash Shortage

a. Cash shortage of the

Disbursing Officer

To take up cash shortage Due from Officers and Employees 123 100

Payroll Fund 106 100

b. Cash Shortage of the

Collecting Officer

To take up cash shortage Due from Officers and Employees 123 100

Cash-Collecting Officers 102 100

2. Relief from Accountability for Loss of Government Funds and Property

a. Request for Relief from Accountability Granted.

To take up relief from

accountability

for current year - - Loss of Assets 948 100

Due from Officers and Employees 123 100

for prior years - - or

Prior Years’ Adjustments 684 100


b. Request for Relief from Accountability Denied.

To record the loss of fund by a

Disbursing Officer (allegedly thru

theft ) - P150


Payroll Fund 106 1

0

0

c. Cash Settlement/Restitution in case of denial of Request for Relief from Accountability


OPERATIONS MANUAL

50 | P a g e

To take up receipt of settlement Cash-Collecting Officers 102 100


0

0

To record deposit

c.1 current year Cash in Bank 111 100


0

0

c.2 prior year Prior Years’ Adjustment 684 100


0

0

Particulars Account Title Accoun

t Code Dr. Cr.

3. Cash Overage

To take up cash overage

discovered during cash

examination

Cash – Collecting Officers 102 100

Cash in Bank 111 100

To record deposit Other Service Income 686 100


a. Stale MDS check issued in the current year for replacement

Check cancellation Cash in Bank 111 100

Accounts Payable 401 100

Replacement Accounts Payable 401 100


b. Stale MDS check issued in the prior years for replacement

Check cancellation Prior Years’ Adjustments 684 100





OPERATIONS MANUAL

51 | P a g e

c. Stale commercial check issued in the current and prior years for replacement

Check cancellation Cash in Bank 111 100




5. Disallowances

a. Recording of disallowances for current year’s transaction

When the disallowances

becomes final and executory -

overpayment of office supplies

Receivables-Disallowances/ Charges 146 100

Office Supplies Expenses 755 100

Amount paid - P100

Should be - 90

Difference - 10

Settlement of Disallowance Cash-Collecting Officers 102 100

Receivables-Disallowances/ Charges 146 100

Deposit of collection Cash in Bank 111 100



Code Dr. Cr.

b. Recording of disallowance for prior year’s transaction

When the disallowance becomes

final and executory

Receivables - Disallowances/

Charges

146 100


Settlement of disallowance Cash - Collecting Officers 102 100


Charges

146 100

Deposit of collection Prior Years’ Adjustments 684 100


OPERATIONS MANUAL

52 | P a g e


6. Refund of Overpayment

a. Overpayment taken up as receivable

To record overpayment of salaries

and wages (When overpayment

is ascertained)


Salaries and Wages - Regular Pay 701 100

To record receipt of refund Cash-Collecting Officers 102 100




b. Refund of overpayment not taken up as receivable

To record receipt of refund of

Salaries and Wages - Regular Pay

during the current year

Cash - Collecting Officers 102 100

Salaries and Wages – Regular Pay 701 100




overpayment in the ensuing year






Code

Dr. Cr.

b. Recording of disallowance for prior year’s transaction

When the disallowance becomes

final and executory


Charges

146 100


Settlement of disallowance Cash - Collecting Officers 102 100


OPERATIONS MANUAL

53 | P a g e


Charges

146 100



6. Refund of Overpayment

a. Overpayment taken up as receivable

To record overpayment of salaries

and wages (When overpayment is

ascertained)


Salaries and Wages - Regular Pay 701 100

To record receipt of refund Cash-Collecting Officers 102 100




b. Refund of overpayment not taken up as receivable


Salaries and Wages - Regular Pay

during the current year

Cash - Collecting Officers 102 100

Salaries and Wages – Regular Pay 701 100




overpayment in the ensuing year






OPERATIONS MANUAL

54 | P a g e

Chapter 4. Trial Balances, Financial Reports and Statements

The Financial Statements Process

Financial Reporting System. This Financial Reporting System

(FRS) includes the preparation and submission of trial balances, financial

statements and other reports needed by fiscal and regulatory agencies. The sub-

systems are as follows:

1. Preparation and Submission of Trial Balances and Other Reports

2. Preparation and Submission of Financial Statements

Sec. 1. Trial Balance. The Trial Balance shows the equality of debit and credit

balances of all general ledger accounts as of a given period. It is prepared and

submitted monthly, quarterly and annually. At the end of the fiscal year, the pre-

closing and the post-closing trial balances shall be prepared.

Sec. 2. Purposes of the Trial Balance. The trial balance is prepared to:

a. Prove the mathematical equality of the debits and credits after posting;

b. Uncover errors in journalizing and posting; and

c. Serve as basis for the preparation of the financial statements.

Pre-Closing

TB

Sec. 1. S

tatement

of

Governme

nt Equity.

The

Statement

of

Government

Equity

(Appendix

48) shows

the financial

transactions

which

resulted to

the change

in

Government

Equity

account at

the end of

the year.

TB

Post-Closing

TB

Statement

of

Cash

Flows

Closing

Journal

Entries

Unadjusted

Trial

Balance

Adjusting

Entries

Balance

Sheet

Statement of

Income and

Expenses


OPERATIONS MANUAL

55 | P a g e

Sec. 3. Pre-Closing Trial Balance. The Pre-Closing Trial Balance shall be prepared

after recording the adjusting journal entries in the General Journal and posting the

same to the General Ledger. It shows the adjusted balances of all accounts as of a

given period. This is also described as the adjusted trial balance.

Sec. 4. Adjusting or Correcting Journal Entries. Under the matching principle,

adjustments shall be made for economic activities that have taken place but are not

yet recorded at the time when the financial statements are prepared. Such adjusting

journal entries are made to ensure that revenues and expenses are recorded in the

period when they are earned or incurred. Adjustments are of two main types:

accrued items and deferred items.

Sec. 5. Adjustment for Accrued Item. It is an adjusting entry for an economic

activity already undertaken but not yet recorded into an asset and revenue accounts

or a liability and expense accounts. It requires asset/revenue adjustments and

liability/expense adjustments.

Sec. 6. Asset/Revenue Adjustment. It involves earned revenues not yet recorded as

assets and income at the end of the accounting period. Examples are receivables

for revenues already earned but not yet collected nor billed as of the year end.

Sec. 7. Liability/Expense Adjustment. It involves expenses, which already exist but

remain unpaid at the end of the accounting period. Examples are salaries, wages and

other expenses already incurred but not yet paid.

Sec. 8. Adjustment for Deferred Items. These are adjusting entries transferring data

previously recorded in an asset account to an expense account, or data previously

recorded in a liability account to a revenue account. It also requires asset/expense

adjustments and liability/revenue adjustments.

Sec. 9. Asset/Expense Adjustments. These pertain to assets, portion of which shall

be recorded as expense of the agency at the end of the accounting period.

Examples are prepaid expenses, bad debts and depreciation.

Sec. 10. Bad Debts. Trade receivables shall be valued at their face amounts minus,

whenever appropriate, allowance for doubtful accounts. Bad Debts expense and/or

any anticipated adjustments, which in the normal course of events will reduce the

amount of receivables from the debtors to estimated realizable values, shall be set

up at the end of the accounting period.

The Allowance for Doubtful Accounts shall be provided in an amount based

on collectibility of receivable balances and evaluation of such factors as aging of the


OPERATIONS MANUAL

56 | P a g e

accounts, collection experiences of the agency, expected loss experiences and

identified doubtful accounts.

The determination of bad debts expense shall be derived from computations

based on percentages and aging of accounts receivable as follows:

Age of Accounts Percentage

1 - 60 days 1 %

61 - 180 days 2 %

181- 1 year 3 %

More than 1 year 5 %

Sec. 11. Depreciation for Property, Plant and Equipment. The costs of property,

plant and equipment are allocated to the periods benefited through the provision of

accumulated depreciation. Depreciation is the systematic and gradual allocation of

the depreciable amount of asset over its useful life.

Sec. 12. Method of Depreciation. Depreciation shall be computed using the Straight

Line Method. Depreciation shall start on the second month from purchase. A

residual value equivalent to ten percent of the cost shall be set. Annual depreciation

is computed as follows:

Annual Depreciation = Asset Cost less Estimated Residual/Salvage Value

Estimated Useful Life

Asset Cost - Purchase or Acquired Value of the Asset

Estimated Salvage Value - 10% of the asset cost

Estimated Useful Life - Estimated number of years the asset shall be used

as determined by the Commission on Audit

Sec. 13. Closing Journal Entries. Closing journal entries are general journal entries

which close out the balances of all nominal/ temporary and intermediate accounts at

the end of the accounting period. The nominal and intermediate accounts that shall

be closed at the end of the accounting period are as follows:


OPERATIONS MANUAL

57 | P a g e

A. Close the balance of all income accounts to Income and Expense Summary

account.

B. Close the balance of all expense accounts to Income and Expense Summary

account.

C. Close the balance of the Income and Expense Summary Account to the

Retained Operating Surplus account.

D. Close the balance of the Prior Year’s Adjustments account to Retained

Operating Surplus account

E. Close the balance of the Retained Operating Surplus to Government Equity

account

Sec. 14. Post-Closing Trial Balance. The Post-Closing Trial Balance shall be prepared

after recording the closing journal entries in the General Journal and posting to the

General Ledger. It contains a listing of all general ledger accounts that remain open

after the closing process is completed.

Sec. 15. Procedures in the Preparation and Submission of Trial Balances and Other

Reports.

Activity Area of

Responsibility

Preparation of Unadjusted Trial Balance

1. Records JEVs for the month through SKWD computerized

accounting Program in the Special Journals and General Journal.

Sr. Accounting

Processor

/Bookkeeper

2. Foots and extracts the balances of the General Ledgers and

Subsidiary Ledgers.

3. Based on the General Ledgers, prepares the Unadjusted Trial

Balance (UTB) to check the postings made on the General

Ledgers or the equality of debit and credit balances of the

general ledger accounts. Files temporarily.

Preparation of Pre-Closing Trial Balance

4. Prepares adjusting journal entries thru the JEV at SKWD

computerized accounting Program for unrecorded transactions

and for all accounts that need to be adjusted/ corrected. Records

the JEV in the General Journal. Adjusting journal entries shall be

prepared for the following transactions: Adjustment for Accrued

Items and Deffered Items, Correction/Reclassification Entries,

Provision for Allowance for Doubtful Accounts and Accumulated

Depreciation


OPERATIONS MANUAL

58 | P a g e

5. Foots and extracts balances of the General Ledgers and

Subsidiary Ledgers.

Sr. Accounting

Processor

/Bookkeeper

6. Based on the General Ledgers, prepares Pre-Closing Trial

Balance in four copies. Files temporarily the Pre-Closing Trial

Balance.

Preparation of Other Reports

7. Reconciles the totals of the Subsidiary Ledgers with the totals

of the General Ledgers accounts. If unreconciled, checks the

difference and prepares adjusting/ correcting entries as maybe

necessary thru the JEV.

8. If reconciled, prepares individual supporting schedules per

account based on the Subsidiary Ledgers.

9. Initials the supporting schedules and the Pre-Closing Trial

Balance and forwards the same to the Head of the Accounting

Unit for review and signature.

10. Reviews and signs the ‘Certified Correct’ portion of the Pre-

Closing Trial Balance and the supporting schedules.

Head of the

Accounting Unit

11. Submits the Pre-Closing Trial Balance to the Offices

concerned. Records submission in the logbook maintained. Files

Copy 4 of the Pre-Closing Trial Balance and Copy 4 of supporting

schedules for preparation of financial Statements.

Sr. Accounting

Processor

/Bookkeeper

Preparation of Post-Closing Trial Balance at year-end.

12. Prepares closing journal entries thru JEV and records

through SKWD computerized accounting Program. The

following accounts shall be closed/reverted at year-end:

Nominal/Intermediate Accounts, Expense accounts to IES

account,Prior Years’ Adjustments account to Retained

Operating Surplus (ROS) account

Sr. Accounting

Processor

/Bookkeeper


OPERATIONS MANUAL

59 | P a g e

13. Foots and extracts the balances of the General Ledgers and

the Subsidiary Ledgers.

14. Based on the General Ledgers, prepares Post-Closing Trial

Balance in four copies.

15. Reconciles the supporting schedules with Post-Closing Trial

Balance. If not reconciled, prepares the necessary corrections

thru JEV. Records the JEV in the General Journal.

16. Initials the ‘Certified Correct by’ portion of the Post-Closing

Trial Balance and ‘Prepared by’ portion of supporting

schedules.

17. Prepares transmittal letter and forwards the same together

with the Post-Closing Trial Balance and supporting schedules to

the Head of the Accounting Unit.

18. Reviews and signs ‘Certified Correct by’ portion of the Post-

Closing Trial Balance, supporting schedules and transmittal

letter, and forwards the same to the Accounting Staff for

distribution.

Head of the

Accounting Unit

19. Distributes the Post-Closing Trial Balance and supporting

schedules to the Concerned Offices. Records in the logbook the

submission of the same.

Sr. Accounting

Processor

/Bookkeeper

Generation of Financial Statements and Supporting Schedules. Financial

statements and their supporting schedules are the products of the SKWD accounting

processes. These are the principal comprehensive means by which the information

accumulated and processed in the state accounting system is periodically

communicated to those who use them. The financial statements generally prepared

in SKWD are: the Balance Sheet, Statement of Income and Expenses, Statement of

Government Equity, and Statement of Cash Flows.

Responsibility for Financial Statements. Responsibility for the fair

presentation and reliability of financial statements rests with the management of

SKWD. This responsibility is discharged by applying generally accepted state

accounting principles that are appropriate to the entity’s circumstances, by

maintaining effective system of internal control and by adhering to the chart of

accounts prescribed by the Commission on Audit.


OPERATIONS MANUAL

60 | P a g e

To achieve fair presentation and reliable information of the financial

statements, the following standards shall be observed.

a. Fairness of presentation. This refers to the overall propriety in disclosing

financial information. Full disclosure in financial aspects requires

observance of the following standards of reporting:

All essential facts relating to the scope and purpose of each report and

the period involved shall be included and clearly displayed.

All financial data presented shall be accurate, reliable, and truthful.

The requirement for accuracy does not rule out the inclusion of

reasonable estimates when the making of precise measurements is

impracticable, uneconomical, unnecessary, or conducive to delay.

All appropriate steps shall be taken to avoid bias, unclear facts, and

presentation of misleading information.

Financial reports shall be based on official records maintained under

an adequate accounting system that produces information

objectively and discloses the financial aspects of all events or

transactions taking place. Where financial data or reports based on

sources other than the accounting systems are presented, their

basis shall be clearly explained.

The financial data reported shall be derived from accounts that are

maintained in all material respects on a consistent basis from period

to period; material changes in accounting policies or methods and

their effect shall be clearly explained.

Consistent and non-technical terminology shall be used in financial

reports to promote clarity and usefulness.

b. Compliance. The report shall be in accordance with prescribed

government requirements and international accounting standards of

reporting.


OPERATIONS MANUAL

61 | P a g e

c. Timeliness. All needed reports shall be produced promptly to be of

maximum usefulness.

d. Usefulness. Financial reports shall be carefully designed to present

information that is needed and useful to reports users.

Statement of Management Responsibility for Financial Statements. The

Statement of Management Responsibility for Financial Statements (Appendix 4) shall

serve as the covering letter in transmitting SKWD financial statements to the

Commission on Audit, Department of Budget and Management, other oversight

agencies and other parties. It shows SKWD responsibility for the preparation and

presentation of the financial statements. The statement shall be signed by the

Corporate Accountant, and the Head of Agency or his authorized representative.

Balance Sheet. The Balance Sheet is a formal statement which shows the

financial condition of SKWD as of a certain date. It includes information on the three

elements of financial position - assets, liabilities and government equity. It shall be

prepared from information taken directly from the year-end Post-Closing Trial

Balance. The Balance Sheet shall be supported with the following

schedules/statements:

Schedules of Accounts Receivables (SAR)

Schedules of Accounts Payables (SAP)

Other schedules as may be required

Statement of Income and Expenses. The Statement of Income and Expenses

shows the results of operation/performance of SKWD at the end of a particular

period. This statement shall be prepared by the Accounting Unit from information

taken directly from the Pre-Closing Trial Balance.

Statement of Government Equity. The Statement of Government Equity

shows the financial transactions, which resulted to the change in Government Equity

account at the end of the year.

Statement of Cash Flows. The Statement of Cash Flows is a statement

summarizing all the cash activities of SKWD. This includes the operating, investing

and financing activities of the entity and provides information on the cash receipts

and cash payments during the period. The primary purpose of the Statement of Cash

Flows is to give relevant information on the SKWD overall cash position, liquidity


OPERATIONS MANUAL

62 | P a g e

and solvency. Using the Statement of Cash Flows, managers, investors and creditors

could easily assess if SKWD could meet its obligations in operating, investing and

financing activities.

Preparation of the Statement of Cash Flows. To facilitate the preparation of

the Statement of Cash Flows, the use of a Working Paper is encouraged. It shall show

the increase or decrease in the cash accounts between two periods. The net

increase in cash provided by 1) operating 2) investing and 3) financing

activities in addition to the cash balance at the beginning shall equal to the cash

balance at the end of the period.

1) Operating Activities. Operating activities involves the principal resources

producing activities of the enterprise and other activities that are not

investing or financing. Generally, these include the cash effect on

transactions that enter in the Income and Expense Summary account.

2) Investing Activities. Investing activities involves the acquisition and disposal

of long-term assets and other investments not included in cash equivalent .

These activities include cash transactions covering non-operating assets,

such as the purchase of property, equipment, short and long-term

investments and other non-current assets.

Non-cash investing activities are not included in the statement of cash

flows.

3) Financing Activities. Financing activities are derived from the equity

capital and borrowings of the agency. These include cash transactions

involving the government equity and non-operational liabilities.

Non-cash financing activities are not included in the statement of cash

flows.

The increase or decrease in the cash accounts are analyzed and the following

computations are made:

Cash flows from operating activities

Cash Inflows:

Cash receipts from all sources of revenues

Receipt of Inter – agency cash transfers (Due to)


OPERATIONS MANUAL

63 | P a g e

Cash receipts from the sale of goods or rendition of services

Cash receipt of interest income, rental income, etc.

Receipt of payment for liquidated damages

Receipt of refund of deposits

Receipt of refunds of cash advance or excess payments

Collection of receivables

Cash receipt of grants and donations

Cash Outflows:

Payments of accounts payable

Cash purchase of merchandise for sale

Cash advances granted for travel

Inter-agency transfers (Due from)

Cash payment for operating expenses

Remittance of taxes withheld not covered by TRA and other

deductions (if any)

Cash purchase of supplies and equipment

Cash payment of retirement benefits

Cash payment of claims for damages

Cash payment for liabilities incurred in operations

Cash payments for interest

Cash flows from investing activities:

Cash Inflows:

Cash proceeds from the sale/disposal of equipment and other

property, plant and equipment

Cash Outflows:

Purchase of property, plant and equipment

Purchase of land

Cash flows from financing activities:

Cash Inflows:

Cash received from domestic and foreign loans

Cash Outflows:

Payment of domestic and foreign loans


OPERATIONS MANUAL

64 | P a g e

The net increase in cash provided by operating activities, investing

activities and financial activities for the year, and the cash balance at the start

of the year, shall equal the cash balance at the end of the year. Such amount

shall tally with the total cash account shown in the balance sheet.

Sec. 2. Notes to Financial Statements. Notes to

Financial Statements are integral parts of financial statements,

which pertain to additional information necessary for fair

presentation in conformity with generally accepted accounting

principles. These may explain the headings captions or amounts in

the statements of present information that cannot be expressed in

money terms, and description of accounting policies.

Information shall be presented in a way that will facilitate understanding and

avoid erroneous implications. The headings, captions and amounts shall be

supplemented by enough additional data so that their meaning would be clear and

not overshadowed by so much information that important matters are buried in

mass trivia.

Where Notes to Financial Statements appear on a separate page, indicate the

phrase “See accompanying Notes to Financial Statements” placed at the bottom of

said statements.

Material changes in classification of accounts shall be indicated and explained as

notes to financial statements.

The four types of disclosure considered necessary are as follows:

a. Customary or routine disclosure. Information about measurement bases

of important assets, restrictions on assets and government equity,

important long-term commitments not recognized in the body of the

statements, information on terms of owner’s equity and long-term debt,

and certain other disclosures required by pronouncements of the

Philippine Institute of Certified Public Accountants, Accounting Standards

Council, and regulatory bodies that have jurisdiction are necessary for full

disclosure.

b. Disclosure of changes in accounting principles. Changes in accounting

principles, practices, or the methods of applying them, together with the

financial effect, and the justification for the change shall be disclosed in

the financial statements or a note thereto.


OPERATIONS MANUAL

65 | P a g e

In particular, it shall include any of the following:

Selection from existing acceptable alternatives

Principles and methods peculiar to SKWD

Unusual application of generally accepted accounting

principles.

c. Disclosure of subsequent events. Disclosure of events that affect SKWD

directly and that occur between the date of, or end of the period covered

by, the financial statements and the date of completion of the statements

is necessary if knowledge of the events might affect the interpretation of

the statements, even though the events do not affect the propriety of the

statements themselves.

d. Disclosure of accounting policies. Description of the accounting policies

adopted by the SKWD is required as an integral part of the financial

statements. It is usually captioned “Summary of Significant Accounting

Policies”, and placed as first item in the Notes. It shall be limited to

description of the policies and no quantitative data shall be included.

Examples of accounting policy disclosures commonly required:

Consolidation principles

Accounting for long-term investments

Adoption of policy on increasing benefit entitlements of the

program members. The effect of the increase shall be

disclosed.

Basis of revenue recognition

In general, disclosures shall include important judgment as to

appropriateness of principles relating to recognition of revenues and

allocation of asset costs to current and future periods.

Interim Reports. Interim reports are the financial statements required to be

prepared at any given period or at a financial reporting period without closing the

books of accounts. The following interim financial statements shall be prepared and

submitted quarterly with the Notes to Financial Statements:

a. Statement of Income and Expenses;

b. Balance Sheet; and


OPERATIONS MANUAL

66 | P a g e

c. Statement of Cash Flows.

The interim financial statements shall be prepared employing the same

accounting principles used for annual reports. Adjusting and closing journal entries

shall be prepared. However, only the adjusting journal entries are recorded in the

books of accounts. To facilitate the preparation of the interim financial statements,

the use of the worksheet is recommended.

Worksheet. A worksheet is a tool for accumulating and sorting information

needed for the preparation of the financial statements. It is a columnar sheet used

to adjust and close account balances in preparation for the preparation of the

financial statements.

Chapter 5. Responsibility Accounting

Sec. 1. Responsibility Accounting Defined.

Responsibility accounting is a system that relates the financial

results to a responsibility center, which provides access to cost and

revenue information under the supervision of a manager having a

direct responsibility for its performance. It is a system that

measures the plans (by budgets) and actions (by actual results) of

each responsibility center.

Sec. 2. Responsibility Center Defined. It is a part, segment, unit or

function of SKWD, headed by a manager, who is accountable for a

specified set of activities. Except for some, which derive most of

their income from collection of bills and fees, SKWD are basically

cost centers whose primary purpose is to render service to the

public at the lowest possible cost. Cost centers are established to

provide SKWD accessibility to cost information and to facilitate cost

monitoring at any given period. While the use of Subsidiary Ledgers

is sufficient to control cost, it requires considerable time to

summarize the cost incurred by SKWD for its different programs,

projects, activities and offices/divisions; hence, responsibility

accounting shall be done only under the computerized accounting

system.

Sec. 3. Objectives of Responsibility Accounting.

Responsibility accounting aims to: a) ensure that all costs and

revenues are properly charged/credited to the correct responsibility


OPERATIONS MANUAL

67 | P a g e

center so that deviations from the budget can be readily attributed

to managers accountable therefore; b) provide a basis for making

decisions for future operations; and c) facilitate review activities,

monitoring the performance of each responsibility center and

evaluation of the effectiveness of SKWD operations.

Sec. 4. Concepts of Responsibility Accounting. The

following are the concepts of responsibility accounting:

a. Responsibility accounting involves accumulating and reporting data on

revenues and costs on the basis of the manager’s action who has authority

to make the day-to-day decisions about the items;

b. Evaluation of a manager’s performance is based on the matters directly

under his control;

c. Responsibility accounting can be used at every level of management in

which the following conditions exist:

1. Cost and revenues can be directly associated with the specific level

of management responsibility;

2. Costs and revenues are controllable at the level of responsibility

with which they are associated.

3. Budget data can be developed for evaluating the manager’s

effectiveness in controlling the costs and revenues.

d. The reporting of costs and revenues under responsibility accounting differs

from budgeting in two respects:

1. A distinction is made between controllable and non-controllable

costs.

a) A cost is considered controllable at a given level of managerial

responsibility if that manager has the power to incur it within

a given period of time. It follows that (1) all costs are

controllable by top management because of the broad range

of its activity; (2) fewer costs are controllable as one moves

down to lower level of managerial responsibility because of

the manager’s decreasing authority.

b) Non-controllable costs are costs incurred indirectly and

allocated to a responsibility level.

2. Performance reports either emphasize or include only items

controllable by individual manager.


OPERATIONS MANUAL

68 | P a g e

e. A responsibility reporting system involves the preparation of a report for

each level of responsibility. Responsibility reports usually compare actual

costs with flexible budget data. The reports show only controllable costs

and no distinction is made between variable and fixed costs.

f. Evaluation of a manager’s performance for cost centers is based on his

ability to meet budgeted goals for controllable costs.

BUDGET SECTION OPERATION

Budgeting is the setting of expenditure levels for each of an organization’s functions.

It is the estimation and allocation of available capital used to achieve the designated

targets of a firm.

Through budgeting Sultan Kudarat Water District enables to plan and manage its

financial resources to support the implementation of various programs and projects

that best promote the development of the country. Through the budget, the Sultan

Kudarat Water can prioritize and put into action its plans, programs and policies

within the constraints of its financial capability as dictated by economic conditions.

EXECUTIVE ORDER NO. 518 January 23, 1979

Sec. 6. Operating Budget. Each government-owned or controlled corporations shall

prepare an operating budget consisting of (1) estimates of revenues, (2) estimates of

expenditure, and (3) estimates of borrowings. The expenditure estimates shall cover

current operating and capital expenditures. The operating budget of each

government owned or controlled corporation shall be prepared following such

procedure and guidelines as may be determined by the President/Prime Minister.

They shall be prepared prior to the beginning of the fiscal year and recommended by

the Governing Board of the Corporation, for consideration and final approval by the

President/Prime Minister.

Sultan Kudarat Water District based its Corporate operating Budget on Projected

Income/Revenues and Unrestricted Cash Balance of the Prior Year to Supply the

Object of Expenditures

Personal Services

Maintenance and Other Operating Expenses

Capital Outlay


OPERATIONS MANUAL

69 | P a g e

PPE

Loans Outlay

Reserves

Projected Income - an estimate of the financial results from projected revenue

against Maintenance & Other Operating Expenses (MOOE) & loan interest in a future

period of time. It is often presented in the form of an income statement.

Unrestricted Cash - Monetary reserves that are not tied to a particular use.

Unrestricted cash represents instant reserves, as it can be used for any purpose and

is extremely liquid. Often, in order to satisfy debt covenants, firms will have to

maintain a certain level of cash on their balance sheets.

Personal Services - Provisions for the payment of salaries, wages and other

compensation (e.g., merit, salary increase, cost-of-living-allowances, honoraria and

commutable allowances) of permanent, temporary, contractual, and casual

employees of the government.

Maintenance and Other Operating Expenses - Refer to expenditures to support the

operations of Sultan Kudarat Water District such as expenses for supplies and

materials; transportation and travel; utilities (water, power, etc.) and the repairs,

etc.

Capital Outlay - Refer to appropriations for the purchase of goods and services, the

benefits of which extend beyond the fiscal year and which add to the assets of the

Sultan Kudarat Water District.

Property Plant & Equipment - are tangible assets of Sultan Kudarat Water District

used in the daily operation of the district for the supply of safe and potable water to

its concessionaires.

Loans Outlay - refers to appropriations in payment of Sultan Kudarat Water District

loans from LWUA & other financing institutions.

Reserve - are savings account of Sultan Kudarat Water District which is accumulated

for future use. This fund is sourced from surplus from operation of scheduled Fund

Transfers that have been planned and budgeted intended for debt service and

http://www.investopedia.com/terms/c/cash.asp

http://www.investopedia.com/terms/c/covenant.asp

http://www.investopedia.com/terms/b/balancesheet.asp


OPERATIONS MANUAL

70 | P a g e

operating and maintenance, to be used for such purposes only during periods of

calamities, force majeure or unforeseen events.

THE BUDGETARY PROCESS

Basic Concepts

The Sultan Kudarat Water District shall prepare an operating budget consisting of the

following:

1. estimates of revenues

2. estimates of expenditures

3. estimates of borrowings

The expenditure estimates shall cover current operating and capital expenditures.

The operating budget of Sultan Kudarat Water District shall be prepared prior to the

beginning of the fiscal year and recommended by the General Manager for

consideration and final approval by the Board of Directors.

The Corporate Operating Budget of the Sultan Kudarat Water District shall be

accompanied by a projected Comparative Statement of Income and Expenses,

Projected Billing and Capital Expenditures, and such other financial projections as

may be required, together with the underlying assumptions adopted in making the

projections.

Budget Preparation Process

The following are the general procedures for the budget preparation:

Activity Office/Official Responsible

1. Preparation of the Corporate

Operating Budget (COB)

All Departments ( Administrative, Commercial

and Engineering)

2. Corporate Operating Budget

(COB) Hearing / Presentation

All Departments ( Administrative, Commercial

and Engineering)

3. Deliberation and Approval of

the Corporate Operating Budge

(COB)

SKWD General Manager


OPERATIONS MANUAL

71 | P a g e


4. Deliberation of the COB to the

SKWD Board of Directors

Corporate Budget Specialist with the

Administrative Department Head and General

Manager

5. Approval of the COB for

submission to the DBM

SKWD Board of Directors

6. Submission of the approved

COB to the DBM

Corporate Budget Specialist

7. Review and final approval of

the COB

DBM

8. Receipt of the approved COB

from the DBM

Corporate Budget Specialist / Corporate

Accountant

BASIC FEATURES

BUDGET SECTION

1. The Corporate Budget Specialist- prepares the Corporate Operating Budget

(COB) for the year. Receives the approved Corporate Operating Budget from

the DBM,. Records the COB in the logbook and forwards to the Corporate

Budget Assistant for recording in the Budget Utilization Worksheet (BUW).

Receives the Disbursement Voucher/Payroll and supporting documents from

the concerned office/personnel. Verifies completeness of the documents. If

incomplete, returns the documents to concerned office for completion. If complete,

records same in the logbook maintained Reviews and checks the documents and

affixes his signature in the certification of availability of budget. Also certifies the

availability of funds from the following:

Purchase Request

Purchase Order

Prepares Summary of Budget Utilization at the end of every month.

(Actual against Budget)

2. The Corporate Budget Assistant–receives and records the approved

Corporate Operating Budget from the Corporate Budget Specialist for

recording in the Budget Utilization Worksheet (BUW).


OPERATIONS MANUAL

72 | P a g e

Verifies availability of budget based on the BUW. If no budget is available

returns the documents to the office/ personnel concerned.

If there is available balance to cover the expense, prepares the certification

for the availability of budget.

Records the amount of charges in the “Utilization” column of the appropriate

BUW based on the approved certification of the availability of budget.

Checks and monitors every end of the month the Budget Utilization

Worksheet against the Financial Report.

Procedures in Monitoring of the Approved Budget


11. Receives the approved COB from

the DBM. Records the COB in

the logbook and forwards the

same to Corporate Budget

Assistant for recording in the

Budget and Utilization

Worksheet (BUW).


12. Records the COB in the

appropriate BUW and files the

same COB for future reference.

Corporate Budget Assistant

13. Receives the Disbursement

Voucher/Payroll and supporting

documents from the concerned

office/personnel.

14. Verifies completeness of the

documents. If incomplete,

returns the documents to

concerned office for completion.

If complete, records same in the

logbook maintained. Forwards

to Corporate Budget Assistant

for recording in the appropriate



OPERATIONS MANUAL

73 | P a g e


BUW.

15. Verifies availability of budget

based on the BUW. If no budget

is available returns the

documents to the office/

personnel concerned.

If there is available balance to

cover the expense, prepares the

certification for the availability

of budget.

16. Forwards the same together

with the claim documents to the

Corporate Budget Specialist for

review and approval of the

certification.


17. Reviews and checks the

documents and affixes his

signature in the certification of


18. Returns the documents to the

concerned Corporate Budget

Assistant for recording in the

appropriate BUW.


19. Records the amount of charges

in the “Utilization” column of

the appropriate BUW based on

the approved certification of the


20. Forwards the documents in

the Accounting Unit for

processing.


In case the Accounting Unit made corrections or adjustments during the processing

but before payment of the claim, the Accounting Unit shall inform the Corporate


OPERATIONS MANUAL

74 | P a g e

Budget Unit of the adjustment/correction to effect the same in the BUW through a

positive entry (if additional charge is necessary) or a negative entry (if reduction) in

the “Utilization” column.

In case of refund of cash advance granted during the year; overpayment of expenses

during the year; and disallowances/charges which become final and executory,

certified copies of official receipts for the refunds, copies of bills for overpayments

and Notice that the disallowances are final and executory shall be furnished the

Corporate Budget Unit by the Accounting Unit for the adjustment/correction of

BUW.

Format of Budget and Utilization Worksheet

SULTAN KUDARAT WATER SISTRICT

Budget and Utilization Worksheet

Fiscal Year 200__

Sheet No. _________

Account Name and Acct.No. ______________________________

Date

Reference

Account

Code

Budget

Utilizatio

n

Balance


OPERATIONS MANUAL

75 | P a g e

SUMMARY OF BUDGET UTILIZATION

A summary of the utilization of the approved corporate budget shall be made at the

end of every month through the Summary on Budget Utilization (SBU).

The following is the sample of an accomplished SBU.

In the summary, the first column reflects the individual General Ledger accounts, the

corresponding approved budgets of which are placed immediately on the second

column.

The next three columns pertain to the details of the current month which include the

budget for the month, the actual expenses incurred for the month and the

difference which is either an unused budget or a deficit of the budget for the month.

The last three columns indicate the cumulative totals of the budget, actual expenses

incurred and the balance/deficit as of a given period.

Entries in the Summary of Budget Utilization shall be based on the BUWs.

REFERENCES:

1. e-NGAS

2. LWUA PD 198 REVISED 2010

3. DBM - CORPORATE BUDGET MEMORANDUM

4. DBM – EXECUTIVE ORDER

BUDGETING PROCESS OF DEPARTMENTS

In General

1. At the end of the third quarter, next year’s budget* is prepared upon the call

for meeting of the Budget Officer to the Department and Division Chiefs and

Heads.

2. The General Manager discusses and reviews the budgets prepared by the

Department Heads and the Budget Officer.


OPERATIONS MANUAL

76 | P a g e

3. The General Manager together with the Budget Officer presents the Water

District’s total budget to the Board of Directors for approval.

Preparation of Operating Revenues Budget and Other Income Budget

1. The Department Manager of Commercial Department, prepares the

Operating Revenues Budget from the Projected Water Sales, Collections and

Billing and Projected Miscellaneous Service Revenues.

2. The Budget Officer prepares the Other Income Budget consisting of rental

and interest income for the budget year.

3. The General Manager reviews and approves the projected revenues.

Preparation of Department Expense Budgets

1. Each Department Heads prepares projection of operation and maintenance

expenses based on historical data and projected levels of operations and

costing and is included in the Department Expense Budget.

2. The General Manager gives final approval on the Department Expenses

Budget.

Preparation of Department Capital Expenditures Budget

1. Every Department, Admin., Commercial & Engineering is responsible in the

preparation of the Capital Expenditures budget needs of their department.

2. The General Manager gives the final approval on the department Capital

Expenditures Budgets.

*Initially, budgets are prepared on an annual basis. However, as the Water District

gains experience and accumulates more reliable actual data, monthly budgets should

be prepared for more accuracy. The "Actual Current Year" figure to be compared

against the budgeted amount will consist of actual data for the first nine months plus

the budgeted figure for the last three months of the current year.

Preparation of Consolidated Budgets

1. The Budget Officer receives from the Department Heads & reviews the

following budgets:

o Operating Revenues Budgets

o Department Expenses Budget

o Department Capital Expenditures Budget

o Materials and Supplies Budget

o Other Income Budget


OPERATIONS MANUAL

77 | P a g e

-conducts deliberation of proposed budgets for Department with the General

Manager to clarify and discusses the individual accounts contained therein

for final approval.

2. Based on these approved department budgets and other data, the Budget

Officer prepares

o Income Statement Budget

3. The General Manager reviews and approves these consolidated budgets and

presents to the Board of Directors for approval.

4. The Budget Officer will submit the budget to the DBM for approval.

5. After approval of the DBM, the consolidated budgets will be distributed to

the General Manager, Department Heads, LWUA and COA.

GENERAL SERVICES DIVISION

I. Introduction

The General Services Division, a division under the Administrative

Department of Sultan Kudarat Water District (SKWD), is tasked to implement

policies related to security measures for buildings and other facilities and

people in the organization; responsible in the implementation of policies,

rules and regulations in storekeeping/inventory and warehouse operation;

control and maintenance of motor vehicles, generator sets and heavy

equipments.

It is also responsible for monitoring and processing of the documentary

requirements for land title, payment of real property taxes and insurance

premiums on properties and vehicles including annual Land Transportation

Office (LTO) registration and the like.

RECEIPTS OF DELIVERIES OF INVENTORY

Delivery Receipt/s

STOREKEEPER

Receives the delivered items

and conducts inspection

together with the Technical

Working Group (TWG) and

Prepares Inspection and

Acceptance Report (IAR)


OPERATIONS MANUAL

78 | P a g e

INVENTORY ISSUANCE

ISSUANCE OF NEW SERVICE

CONNECTION MATERIALS

ISSUANCE OF MATERIALS FOR REPAIR

AND MAINTENANCE OF SERVICE

CONNECTION AND OFFICE SUPPLIES

Step 1

Bill of Materials (BOM)

Requisition and Issue Slip (RIS)

Maintenance Order (MO) Or

Office Supplies Withdrawals


STOREKEEPER

STOREKEEPER

Issues Materials or Office Supplies as

Specified in the Requisition and Issue Slip (RIS)

Duration 3 to 15 minutes per RIS

Issues Materials as Specified in the


Duration 10 minutes per RIS

ACCOUNTING PROCESSOR

Receives and records the

submitted Inspection and

Acceptance Report

(IAR)


OPERATIONS MANUAL

79 | P a g e

Step 2

REPAIR AND MAINTENANCE OF MOTOR VEHICLE

Accounting Processor

Receives and Records RSMI

Receives and Records RSMI

Accounting Processor

SERVICE CONNECTION INSTALLATION

CREW

MAINTENANCE CREW OR SKWD -

EMPLOYEES

Receives the Issued Materials

Receives the Issued Materials or Office

Supplies

STOREKEEPER

Posts the Issued Materials or Office

Supplies to Bin Card and Prepares Report

of Supplier and Materials Issued (RSMI)

Posts the Issued Materials to Bin Card and

Prepares Report of Supplier and Materials

Issued (RSMI)

STOREKEEPER

DRIVER


OPERATIONS MANUAL

80 | P a g e

Disposal Management

Drivers report verbally or in writing to

the General Services Division about the

unserviceability condition/status of

SKWD motor vehicle/s.

Pump Operators report verbally or in

writing to General Services Division

about the unserviceability condition/

status of SKWD Generator set/s

PUMP OPERATOR/PUMP RELIEVER

HEAVY EQUIPMENT OPERATOR

Heavy Equipment Operator reports to

the General Services Division about the

unserviceability condition/status of

Heavy Equipment

GENERAL SERVICES DIVISION

approves all requests for the

repair and maintenance of

motor vehicles, generator sets

and heavy equipment and

forward the same to the Office

Equipment Mechanic for prompt action

OFFICE EQUIPMENT MECHANIC UNITS

Performs the following responsibilities:

a. Evaluates the action to be performed;

b. Determines the repair needed for its prompt

restoration,

c. Evaluates the spare parts/ replacement cost and mode

of procurement to be used if there are any;

d. Performs regular maintenance check-up, change oil of

various motor vehicles, generator sets, and heavy

equipment

e. Records the activities undertaken including the spare

parts used in the repair and/or restoration.

f. Ensures the serviceability and availability of

transportation units, generator sets and heavy

equipment

Inventory Taking

(Mid/Year-End)


OPERATIONS MANUAL

81 | P a g e

Submit Report of Physical Count of

Property, Plant & Equipment

Submit Report to Disposal Committee

Comply COA Requirements for Disposal

Conduct Public Bidding/

Opening/Awarding

Prepare & Submit Report on Sale of Scrap

Items


OPERATIONS MANUAL

82 | P a g e

Security Services

Overview

Security procedures has been prepared in order to provide a measure

of uniformity, consistency, and clarity of the responsibilities and assigned duties

of security personnel assigned to SKWD premises in order to secure its properties

as well us the lives and safety of its officers and employees against unlawful

elements.

Security personnel assigned by Security Agency determined through

public bidding is covered by a Security Service Contract/Agreement with the

following stipulations:

1. The Security Agency must be a duly licensed and bonded, operating under

the provision of Republic Act No. 5487;

2. The guards are to watch and to protect the lives of SKWD officers and

employees and properties of SKWD from theft, robbery, arson, destruction

and similar acts;

3. The guards to be assigned are at least high school graduate and of good

moral character, courteous, alert, dependable, and without criminal or police

derogatory record;

4. The guards are physically and mentally fit and not less than 21 years old but

not more than 56 years old with at least five feet and four inches (5’4”) in

height;

5. The guards must be duly licensed and in proper uniform and armed with

either a rifle shotgun, pistol or revolver with sufficient ammunition at all

times during their tour of duty.

PROCUREMENT OPERATIONS

The Sultan Kudarat Water District Procurement Unit implements procedures on

procurement of adequate supply of materials, implement policies on standards

and specification of supplies, materials, equipment ,infrastructure Projects and


OPERATIONS MANUAL

83 | P a g e

services in accordance with the provision of RA 9184 also known as the

Government Procurement Reform Act and its IRR-A .

As for Sultan Kudarat Water District Procurement Operational Manual, SKWD

adopts the Government Procurement Manual in which Section 6 of IRR-A

provides as a the legal basis. This Section 6 of IRR-A provides for the

development of generic procurement manuals and standard bidding forms that

all Procuring Entities must use. This Manual aims to standardize the procurement

process, in effect preventing confusion, ensuring transparency, and enabling

procuring entities to conform to the principles that govern all government

procurement activities.

GOVERNING PRINCIPLES OF PROCUREMENT

TRANSPARENCY

The procurement process and the implementation of procurement contracts

must be transparent. It must ensure the widest dissemination of bid

opportunities and the participation of pertinent non-government organizations.

Posting in the SKWD website, in the PhilGEPS website, and in a conspicuous place

within the premises of the SKWD is required for all procurements. Moreover, in

addition to the COA representative, the BAC is required to invite observers

coming from eligible and qualified PAs and NGOs to observe any or all stages of

the procurement process. Finally, each procurement transaction must be

properly documented and such records must be maintained and made available

to proper parties.

COMPETITIVENESS

All procurement must be competitive and, as a rule, be conducted through public

bidding, except as otherwise provided for under the GPRA, its IRR-A and the

Government Procurement Manual. Treats bidders equitably and provides fair

grounds for competition among themselves, thereby ensuring that no single

bidder significantly influences the outcome of the bidding. Competition among

proponents will urge them to offer more beneficial terms. Hence, the alternative

methods of procurement must only be resorted to when competitive bidding is

not a feasible option, in accordance with the conditions laid down in R.A. 9184,

its IRR-A and the Government Procurement Manual.


OPERATIONS MANUAL

84 | P a g e

STREAMLINING AND USE OF TECHNOLOGY IN PROCUREMENT

A streamlined procurement process that will uniformly apply to all government

procurement must be adopted. The procurement process must be simple and

made adaptable to advances in modern technology in order to ensure an

effective and efficient method. The GPPB conducts a periodic review of

government procurement procedures, and whenever necessary, formulates and

implements changes thereto.

ACCOUNTABILITY

A system of accountability must be established. Thus, both the public officials

directly or indirectly involved in the procurement process as well as in the

implementation of procurement contracts, and the private parties that deal with

government are, when warranted by circumstances, investigated and held liable

for their actions relative thereto. In relation to this, the heads of the procuring

entities are responsible for establishing and maintaining a transparent, effective,

and efficient procurement system in their respective agencies. The

responsibilities of each official involved in the procurement process must be

clear and legally identifiable.

PUBLIC MONITORING

Public monitoring of the procurement process and the implementation of

awarded contracts are provided for in R.A. 9184, with the end in view of

guaranteeing that these contracts are awarded pursuant to the provisions of the

R.A. 9184 and its IRR-A, and that all these contracts are performed strictly

according to specifications. A system of reporting to the GPPB is provided for,

while eligible and qualified CSOs such as NGOs, PAs, academic Page 7 Guidelines

on Establishing Procurement Systems and Organizations institutions, and

religious groups are allowed to observe and monitor the procurement process

and contract implementation. To fully abide by these principles, Procuring

Entities shall consistently follow the procedures prescribed in Government

Procurement Manual.

CREATION OF SKWD BIDS AND AWARDS COMMITTEE (BAC), TECHNICAL

WORKING GROUP (TWG) AND BAC SECRETARIAT AND ITS RESPONSIBILITIES.


OPERATIONS MANUAL

85 | P a g e

The SKWD Bids and Award Committee (BAC) , Technical Working Group (TWG)

and the BAC Secretariat were created based on the IRR-A Section 5(q) 11,13 and

14 which provide for the legal references and for its roles and responsibilities , it

governed by IRR-A Sections 12, 13 and 14 as the legal reference for the roles and

responsibilities including of the Head of the Procuring Entity (HOPE),

Procurement Unit/Office and Observers.

GRANT OF HONORARIA AND OVERTIME PAY

LEGAL REFERENCE: The legal reference for the granting of honoraria to BAC, BAC

Secretariat, and TWG Members is Section 15 of the revised IRR.

PROFESSIONALIZATION OF BAC, BAC SECRETARIAT AND TWG MEMBERS

LEGAL REFERENCE: Section 16 of the revised IRR provides the legal basis for the

professionalization of BAC, BAC Secretariat, and TWG members.

PROCUREMENT PLANNING and PREPARATION OF ANNUAL PROCUREMENT

PLAN (APP)

Legal Reference IRR-A Section 7 provides the legal reference for procurement

planning and budget linkage.

I. The End users prepare Project Procurement Management Plan(PPMP)

for their respective Programs, Activities and Projects. (Section 7.3.2 of

the revised IRR) The PPMP shall include: a) information on whether

PAPs will be contracted out, implemented by administration in

accordance with the guidelines issued by the GPPB, or consigned; b)

the type and objective of contract to be employed; c) the extent/size

of contract scopes/packages; d) the procurement methods to be

adopted, and indicating if the procurement tasks are to be

outsourced; e) the time schedule for each procurement activity and

for the contract implementation; and f) the estimated budget for the

general components of the contract.

II. The PPMP shall then be submitted to the Budget Office. The Budget

Office shall evaluate each end-user’s submitted PPMP and, if

warranted, include it in the procuring entity’s budget proposal for

approval by the Head of the Procuring Entity

III. After the budget proposal has been approved by the Head of the

Procuring Entity and/or other oversight bodies, the budget officer


OPERATIONS MANUAL

86 | P a g e

shall furnish a copy of the budget proposal as well as the

corresponding PPMP’s to the BAC Secretariat for its review and

consolidation into to proposed Annual Procurement Plan (APP). (

Section 7.3.4 of the revised IRR)

IV. When the Corporate Budget becomes final, the end user shall revise

and adjust the PPMP’s. The revised PPMP shall be submitted to BAC

Secretariat for the finalization of the modes of procurement under

the proposed APP, subject to the approval of the Head of the

Procuring Entity.

V. No procurement shall be undertaken unless it is in accordance with

the approved APP of the procuring entity. The APP shall bear the

approval of the Head of the Procuring Entity or second-ranking official

designated by the Head of the Procuring Entity to act on his behalf,

and must be consistent with its duly approved yearly budget.

VI. The APP is the document that consolidates the various PPMPs

submitted by the various PMOs and end-user units. It reflects the

entirety of the procurement activities that will be undertaken within

the calendar year.

The APP is prepared by the BAC through the BAC Secretariat upon

submission by the PMOs and end-user units of their respective

PPMPs. The APP shall subsequently be re-submitted by the BAC for

approval to the Head of the Procuring Entity or a second-ranking

official designated by the Head of the Procuring Entity to act on his

behalf.

In preparing the APP, the BAC shall take into consideration the

following factors:

The APP should include all procurement activities planned for the

year. The approved APP shall be the basis for the Procuring Entity’s

procurement, and only those projects / procurement included therein

shall be undertaken.

The APP shall include only those procurements that are considered

crucial to the efficient discharge of governmental functions. The IRR-A

considers procurement crucial to the efficient discharge of

governmental functions if:

i. it is required for the day-to-day operations; or

ii. it is in pursuit of the principal mandate


OPERATIONS MANUAL

87 | P a g e

The APP shall include provisions for foreseeable emergencies based

on historical records. The BAC, through the BAC Secretariat, shall

include therein a lump sum to cover for these emergencies or

contingencies, which amount shall not be more than four percent

(4%) of the Procuring Entity’s total appropriations for MOOE.

Scheduling of procurement activities should be done in such a manner

that the BAC and the other offices/units that are involved in the

procurement process are able to efficiently manage the conduct of

procurement transactions. Moreover, it is paramount that project

implementation timelines are met.

A review and updating of the individual PPMPs and the APP shall be

done regularly, at least once every six months or as often as

necessary. The review and updating of the PPMPs will be done by the

PMOs and the end-user units. These units may avail of the services of

technical experts to review the individual PPMPs. The updated PPMPs

will then be submitted to the BAC Secretariat for subsequent inclusion

in the updated APP.

For flexibility and to encourage advance procurement actions, the

APP and PMPP should also be based on proposed budget to allow for

advance planning for the succeeding budget year.

PROCUREMENT PROCESSES

a. The end-user/s unit shall prepare their respective Purchase Request

(PR) based on the submitted PPMPs and reflected at the Annual

Procurement Plan (APP) to be submitted to the Procurement Unit.

b. Upon receipt of the submitted PR by end-user unit, the procurement

unit shall employ the appropriate procurement method; The

Competitive or Public Bidding method and the Alternative Method of

procurement.

COMPETITIVE OR PUBLIC BIDDING METHOD

IRR-A Section 10 provides the legal reference for competitive bidding

All procurement shall be through competitive or public bidding,

except as provided in Rule XVI of the IRR-A, which provides for the


OPERATIONS MANUAL

88 | P a g e

conditions for use of the alternative modes of procurement. This is so

specified in Section 10, Article IV of R.A. 9184 and Section 10, Rule IV

of its IRR-A. In keeping with this policy, Procuring Entities are enjoined

to provide for sufficient lead time in its procurement program for the

conduct of public bidding.

Competitive Bidding or Public Bidding is defined in R.A. 9184 and its

IRR-A as follows: “Refers to the method of procurement which is open

to participation by any interested party and which consists of the

following processes: advertisement, pre bid conference, eligibility

screening of prospective bidders, receipt and opening of bids,

evaluation of bids, post-qualification, and award of contract, the

specific requirements and mechanics of which shall be defined in the

IRR to be promulgated under this Act.”

Competitive bidding opens up the procurement opportunity to a

greater number of suppliers or contractors who compete among

themselves in providing the best goods or services to the Government

for the best value. This enables the Government to obtain goods and

services, infrastructure projects, and consulting services at lower

prices and better terms, thus optimizing the use of scarce resources.

In addition, it allows for greater transparency of the procurement

process.

PRE-PROCUREMENT CONFERENCEPrior to the advertisement or the

issuance of the Invitation to Bid/Request for Expression of Interest for each

procurement undertaken through a public bidding, the BAC, through its Secretariat,

shall call for a pre-procurement conference. The pre-procurement conference shall

be attended by the BAC, the Secretariat, the unit or officials, including consultants

hired by the procuring entity, who prepared the Bidding Documents and the draft

Invitation to Bid/Request for Expression of Interest for each procurement. During

this conference, the participants, led by the BAC, shall:

a) Confirm the description and scope of the contract, the ABC, and

contract duration.

b) Ensure that the procurement is in accordance with the project and

annual procurement plans;


OPERATIONS MANUAL

89 | P a g e

c) Determine the readiness of the procurement at hand, including,

among other aspects, the following:

i) availability of appropriations and programmed budget for

contract;

ii) completeness of the Bidding Documents and their

adherence to relevant general procurement guidelines;

iii) completion of the detailed engineering according to the

prescribed standards in the case of infrastructure

projects; and

iv) confirmation of the availability of ROW and the

ownership of affected properties.

d) Review, modify and agree on the criteria for eligibility screening,

evaluation, and post-qualification;

e) Review and adopt the procurement schedule, including deadlines

and timeframes, for the different activities; and

f) Reiterate and emphasize the importance of confidentiality, in

accordance with Section 19 of IRR of RA 9184, and the applicable

sanctions and penalties, as well as agree on measures to ensure

compliance with the foregoing.

The holding of a pre-procurement conference may not be required for

small procurements, i.e., procurement of goods costing Two Million

Pesos (P2,000,000.00) and below, procurement of infrastructure

projects costing Five Million Pesos Revised Implementing Rules and

Regulations (P5,000,000.00) and below, and procurement of

consulting services costing One Million Pesos (P1,000,000.00) and

below.

STAGES OF PROCUREMENT ACTIVITIES FOR COMPETITIVE BIDDING

STAGE 1: ADVERTISEMENT/POSTING OF INVITATION TO BID

CONTENTS OF INVITATION TO BID

a) For the procurement of:


OPERATIONS MANUAL

90 | P a g e

i) Goods, the name of the contract to be bid and a brief

description of the goods to be procured;

ii) Infrastructure projects, the name and location of the

contract to be bid, the project background and other

relevant information regarding the proposed contract

works, including a brief description of the type, size,

major items, and other important or relevant features

of the works; and

iii) Consulting services, the name of the contract to be bid,

a general description of the project and other important

or relevant information;

b) A general statement on the criteria to be used by the

procuring entity for the eligibility check, the short listing of

prospective bidders, in the case of the procurement of

consulting services, the examination and evaluation of bids,

post-qualification, and award;

c) The date, time and place of the deadline for the submission

and receipt of the eligibility requirements, the pre-bid

conference if any, the submission and receipt of bids, and

the opening of bids;

d) ABC to be bid;

e) The source of funding;

f) The period of availability of the Bidding Documents, the

place where the Bidding Documents may be secured, the

website where the Bidding Documents may be downloaded,

and, where applicable, the price of the Bidding Documents;

g) The contract duration or delivery schedule;

h) The name, address, telephone number, facsimile number, e-

mail and website addresses of the concerned procuring

entity, as well as its designated contact person; and


OPERATIONS MANUAL

91 | P a g e

i) Such other necessary information deemed relevant by the

procuring entity.

Advertising and Posting of the Invitation to Bid/Request for

Expression of Interest Except as otherwise provided in Sections 21.2.2

and 54.2 of IRR of RA 9184 and for the procurement of common-use

goods and supplies, the Invitation to Bid/Request for Expression of

Interest shall be:

a) Advertised at least once in one (1) newspaper of general

nationwide circulation which has been regularly published for at

least two (2) years before the date of issue of the advertisement;

b) Posted continuously in the PhilGEPS website, the website of the

procuring entity concerned, if available, and the website prescribed

by the foreign government/foreign or international financing

institution, if applicable, for seven (7) calendar days starting on

date of advertisement; and

c) Posted at any conspicuous place reserved for this purpose in the

premises of the procuring entity concerned for seven (7) calendar

days, if applicable, as certified by the head of the BAC Secretariat of

the procuring entity concerned.

Advertisement of the Invitation to Bid/Request for Expression of

Interest in a newspaper of general nationwide circulation provided in

Section 21.2.1 of IRR of RA 9184 (a) shall not be required for contracts

to be bid with an approved budget of Two Million Pesos

(P10,000,000.00) and below for the procurement of goods, Five

Million Pesos (P15,000,000.00) and below for the procurement of

infrastructure projects, and One Million Pesos (P5,000,000.00) and

below or those whose duration is four (4) months or less for the

procurement of consulting services.


OPERATIONS MANUAL

92 | P a g e

STAGE 2 – ISSUANCE AND AVAILABILITY OF BIDDING DOCUMENTS

BAC shall promptly issue the bidding documents for the contract to

be bid at the time the Invitation to Apply for Eligibility and to Bid is

first advertised.” This means that the earliest possible issuance of

Bidding Documents

For purposes of participating in the bidding, the Bidding

Documents can be acquired as early as the first day of advertising

and/or posting of IAEB and as late as before the submission of bids.

However, time is against the bidder if he/she opts to get the

Bidding Documents at the last minute.

STAGE 3 – PRE-BIDDING CONFERENCE

For contracts to be bid with an approved budget of One Million

Pesos (P1, 000,000.00) or more, the BAC shall convene at least one

(1) pre-bid conference to clarify and/or explain any of the

requirements, terms, conditions, and specifications stipulated in

the Bidding Documents.

For contracts to be bid with an approved budget of less than One

Million Pesos (P1, 000,000.00), pre-bid conferences may be

conducted at the discretion of the BAC.

Subject to the approval of the BAC, a pre-bid conference may also

be conducted upon written request of any prospective bidder. The

pre-bid conference shall be held at least twelve (12) calendar days

before the deadline for the submission and receipt of bids. If the

procuring entity determines that, by reason of the method, nature,

or complexity of the contract to be bid or when international

participation will be more advantageous to the GOP, a longer

period for the preparation of bids is necessary, the pre-bid

conference shall be held at least thirty (30) calendar days before

the deadline for the submission and receipt of bids. The pre-bid

conference shall discuss, among other things, the eligibility

requirements and the technical and financial components of the

contract to be bid. Attendance of the bidders shall not be

mandatory. However, at the option of the Procuring Entity, only

those who have purchased the Bidding Documents shall be allowed


OPERATIONS MANUAL

93 | P a g e

to participate in the pre-bid conference and raise or submit written

queries or clarifications. The minutes of the pre-bid conference

shall be recorded and made available to all participants not later

than three (3) calendar days after the pre-bid conference. Any

statement made at the pre-bid conference shall not modify the

terms of the Bidding Documents, unless such statement is

specifically identified in writing as an amendment thereto and

issued as a Supplemental/Bid Bulletin.

SUPPLEMENTAL/BID BULLETIN

Requests for clarification(s) on any part of the Bidding Documents

or for an interpretation must be in writing and submitted to the

BAC at least ten (10) calendar days before the deadline set for the

submission and receipt of bids. The BAC shall respond to the said

request by issuing a Supplemental/Bid Bulletin, duly signed by the

BAC chairman, to be made available to all those who have

properly secured the Bidding Documents, at least seven (7)

calendar days before the deadline for the submission and receipt

of bids.

Supplemental/Bid Bulletins may be issued upon the procuring

entity’s initiative for purposes of clarifying or modifying any

provision of the Bidding Documents at least seven (7) calendar

days before the deadline for the submission and receipt of bids.

Any modification to the Bidding Documents shall be identified as

an amendment.

Any Supplemental/Bid Bulletin issued by the BAC shall also be

posted on the PhilGEPS or the website of the procuring entity

concerned, if available. It shall be the responsibility of all those

who have properly secured the Bidding Documents to inquire and

secure Supplemental/Bid Bulletins that may be issued by the BAC.

However, bidders who have submitted bids before the issuance of

the Supplemental/Bid Bulletin must be informed and allowed to

modify or withdraw their bids in accordance with Section 26.1 of

IRR of RA 9184.


OPERATIONS MANUAL

94 | P a g e

STAGE 4 – SUBMISSION, RECEIPT AND OPENING OF ELIGIBILITY

ENVELOPES AND BIDS

Bidders shall submit their bids through their duly authorized

representative using the forms specified in the Bidding Documents

in two (2) separate sealed bid envelopes, and which shall be

submitted simultaneously. The first shall contain the technical

component of the bid, including the eligibility requirements under

Section 23.1 of the IRR of RA 9184, and the second shall contain

the financial component of the bid.

Bids shall be received by the BAC on the date, time, and place

specified in the Invitation to Bid/Request for Expression of

Interest.

Bids, including the eligibility requirements under Section 23.1 of

the IRR, submitted after the deadline shall not be accepted by the

BAC.

The following periods from the last day of posting of the Invitation

to Bid/Request for Expression of Interest up to the submission and

receipt of bids shall be observed:

45 calendar days from last day of Stage 1 for Goods

50/65 calendar days from last day of Stage 1 for Infrastructure

Projects

75 calendar days from last day of Stage 1 for Consulting Services

The BAC shall open the bids at the time, date, and place specified

in the Bidding Documents. The bidders or their duly authorized

representatives may attend the opening of bids. The BAC shall

adopt a procedure for ensuring the integrity, security, and

confidentiality of all submitted bids. The minutes of the bid

opening shall be made available to the public upon written

request and payment of a specified fee to recover cost of

materials.


OPERATIONS MANUAL

95 | P a g e

The BAC shall open the first bid envelopes of prospective bidders

in public to determine each bidder’s compliance with the

documents required to be submitted for eligibility and for the

technical requirements, as prescribed in this IRR. For this

purpose, the BAC shall check the submitted documents of each

bidder against a checklist of required documents to ascertain if

they are all present, using a nondiscretionary “pass/fail” criterion,

as stated in the Instructions to Bidders. If a bidder submits the

required document, it shall be rated “passed” for that particular

requirement. In this regard, bids that fail to include any

requirement or are incomplete or patently insufficient shall be

considered as “failed”. Otherwise, the BAC shall rate the said first

bid envelope as “passed”.

Immediately after determining compliance with the

requirements in the first envelope, the BAC shall forthwith open

the second bid envelope of each remaining eligible bidder whose

first bid envelope was rated “passed.” The second envelope of

each complying bidder shall be opened within the same day,

except as provided under Section 33 of the IRR. In case one or

more of the requirements in the second envelope of a particular

bid is missing, incomplete or patently insufficient, and/or if the

submitted total bid price exceeds the ABC, the BAC shall rate the

bid concerned as “failed”. Only bids that are determined to

contain all the bid requirements for both components shall be

rated “passed” and shall immediately be considered for

evaluation and comparison.

STAGE 5 – BID EVALUATION

The purpose of bid evaluation is to determine the Lowest

Calculated Bid (LCB). This is done by:

1. Establishing the correct calculated prices of the bids,

through a detailed evaluation of the financial component

of the bids; and

2. Ranking of the total bid prices as so calculated from the

lowest to the highest. The bid with the lowest price shall

be identified as the LCB.


OPERATIONS MANUAL

96 | P a g e

The entire evaluation process for the procurement of goods and

infrastructure projects shall be completed within seven (7)

calendar days from the deadline for receipt of proposals.

However, for infrastructure projects costing Fifty Million Pesos

(P50,000,000.00) and below, the entire evaluation process shall be

completed in not more than five (5) calendar days from the

deadline for receipt of proposals.

The following must participate in the bid evaluation process:

1. The BAC;

2. The TWG;

3. The BAC Secretariat/ Procurement Unit; and

4. The Observers.

1. After the preliminary examination of bids, the BAC, or through the

TWG, shall immediately conduct a detailed evaluation of all bids

rated “passed,” using a nondiscretionary pass/fail criteria, as

stated in the IAEB and the ITB, which shall include a consideration

of the following:

a. The bid must be complete. Unless the ITB specifically allow

partial bids, bids not addressing or providing all of the required

items in the bidding documents including, where applicable,

those requirements pertaining to the civil works components

of Goods procured, shall be considered non-responsive and,

thus, automatically disqualified. In this regard, where a

required item is provided, but no price is indicated, the same

shall be considered as non-responsive, but specifying a “0”

(zero) for the said item would mean that it is being offered for

free to the Government.

b. Minor arithmetical corrections to consider computational

errors, omissions and discounts, if allowed in the bidding

documents, to enable proper comparison of all eligible bids.

Any adjustment shall be calculated in monetary terms to

determine the calculated prices.

c. In the evaluation of bids, all bids shall be evaluated on an equal

footing to ensure fair and competitive bid evaluation. For this


OPERATIONS MANUAL

97 | P a g e

purpose, all bidders shall be required to include the cost of all

taxes, such as, but not limited to, value added tax (VAT),

income tax, local taxes, and other fiscal levies and duties which

shall be itemized in the bid form and reflected in the detailed

estimates. Such bids, including said taxes, shall be the basis for

bid evaluation and comparison. Moreover, applicable custom

duties, as well as other costs of acquisition such as freight,

insurance, and bank charges, must be incorporated in the bid.

d. In case of discrepancies between: (a) bid prices in figures and in

words, the latter shall prevail; (b) total prices and unit prices,

the latter shall prevail; (c) unit cost in the detailed estimate

and unit cost in the bill of quantities, the latter shall prevail.

2. Based on the detailed evaluation of bids, those that comply with the

abovementioned requirements shall be ranked in the ascending

order of their total calculated bid prices, as evaluated and corrected

for computational errors, discounts and other modifications, to

identify the LCB. Total calculated bid prices, as evaluated and

corrected for computational errors, discounts and other

modifications, which exceed the ABC shall be disqualified.

3. After all bids have been received, opened, examined, evaluated and

ranked, the BAC shall prepare the corresponding Abstract of Bids. All

members of the BAC shall sign the Abstract of Bids and attach

thereto all the bids with their corresponding Bid Securities and the

minutes or proceedings of the bidding. The Observers shall also sign

the Abstract of Bids if, in their independent observation, the bidding

activity conducted by the BAC followed the correct procedure

indicated under R.A. 9184 and its IRR-A. The Abstract of Bids shall

contain the following:

a. Name of the contract and its location, if applicable;

b. Time, date and place of bid opening; and

c. Names of bidders and their corresponding calculated bid prices

arranged from lowest to highest, the amount of bid security and

the name of the issuing entity.

The TWG, with the assistance of the BAC Secretariat, when directed by

the BAC, should prepare the valuation Report, containing the details of


OPERATIONS MANUAL

98 | P a g e

the evaluation conducted, preferably within three (3) calendar days from

the date the evaluation was concluded.

Within five (5) calendar days from receipt by the bidder of the notice

from the BAC that the bidder has the Lowest Calculated Bid or Highest

Rated Bid, the bidder shall submit the following documentary

requirements to the BAC:

a) Latest income and business tax returns;

b) Certificate of PhilGEPS Registration; and

c) Other appropriate licenses and permits required by law and stated

in the Bidding Documents.

Failure to submit the above requirements on time or a finding against the

veracity of such shall be ground for the forfeiture of the bid security and

disqualify the bidder for award.

STAGE 6 – POST-QUALIFICATION

Post-qualification is the process of verifying, validating and ascertaining

all the statements made and documents submitted by the bidder with the

LCB, which includes ascertaining the said bidder’s compliance with the

legal, financial and technical requirements of the bid.

If its eligibility documents had been validated and verified, and its

compliance with the legal, financial, and technical requirements of the bid

had been ascertained, the bidder must be declared the bidder with the

“Lowest Calculated Responsive Bid

Post-qualification involves the BAC verifying, validating and ascertaining

that the bidder satisfies the following criteria:

1. Legal Requirements. The post-qualification process under this criterion

involves the verification, validation and ascertaining of the supplier’s

claim that it is not included in any government “blacklist,” as well as all

the licenses, permits and other documents it submitted. The legal

requirements refer to the Legal Documents submitted by the bidder as

part of the eligibility requirements, e.g., SEC registration, DTI business

name registration, Mayor’s permit, TIN, etc. The bidder’s status with


OPERATIONS MANUAL

99 | P a g e

regard to “blacklisting” may be verified by checking the Consolidated

Blacklisting Report issued by the GPPB, or the “blacklist” of any

government agency.

2. Technical Requirements. Post-qualification under this criterion means

that the BAC would have to validate, verify, and ascertain the veracity

of the documents submitted by a supplier to prove compliance of the

goods and services offered with the requirements of the contract and

bidding documents. This involves the following processes:

a. Verification and validation of the bidder’s stated competence and

experience;

b. Verification and/or inspection and testing of the goods/products,

after-sales and/or maintenance capabilities, in applicable cases; or

inspection of the plant/factory of a manufacturer, to determine

production capacity; and c. Ascertainment of the authenticity and

sufficiency of the Bid Security as to type, amount, form and

wording, and validity period.

3. Financial Requirements. Under this criterion, the BAC ought to verify,

validate and ascertain the bid price proposal of the bidder and,

whenever applicable, its computation of the NFCC, the required bank

commitment to provide a credit line to the bidder, or the hold out on

deposit status of the cash deposit certificate, in the amount specified

and over the period stipulated in the ITB. This is to ensure that the

bidder can sustain the operating cash flow of the transaction.

The post-qualification process must be conducted and completed within

twelve (12) calendar days from the determination of the LCB. However,

in the procurement of goods requiring elaborate testing (such as

equipment sourced from abroad) and other exceptional cases, the Head

of the Procuring Entity may extend the post-qualification period, but in no

case should the aggregate period exceed thirty (30) calendar days.

The following Parties are involved in the conduct of post-qualification:

1. The BAC;

2. The TWG;

3. The BAC Secretariat / Procurement Unit; and

4. The eligible supplier/manufacturer, ranked starting from bidder

with the LCB.


OPERATIONS MANUAL

100 | P a g e

The following steps are followed in the conduct of post-qualification:

1. The BAC/TWG verifies, validates, and ascertains the genuineness,

validity and accuracy of the legal, technical and financial documents

submitted by the bidder with the LCB, using the non-discretionary

criteria described above.

In verifying the information contained in such documents, the

BAC/TWG may make inquiries with appropriate government

agencies and examine the original documents kept in the bidder’s

place of business. The use of other means for verification and

validation of such documents may be resorted to by the BAC/TWG,

such as the Internet and other research methods that yield the

same results.

2. The BAC/TWG conducts a site inspection of the bidder’s place of

business and/or plant/factory, where applicable.

3. The BAC/TWG tests samples for compliance with specifications and

performance levels, where applicable.

4. The BAC/TWG inquires about the bidder’s performance in relation with

other contracts/transactions as indicated in its eligibility statement

(statement of on-going, completed or awarded contracts).

5. If the TWG conducts the post-qualification, it prepares a Post-

qualification Report to be submitted to the BAC. The Report shall

contain, among others, the activities undertaken with regard to the

post-qualification process, feedback from inquiries conducted, and the

results of any tests conducted by the TWG or an accredited

government testing center, where applicable.

6. The BAC reviews the Post-qualification Report submitted by the TWG.

7. The BAC determines whether the bidder with the LCB passes all the

criteria for post qualification.

8. If the LCB passes the post-qualification, the BAC declares it as the

LCRB.

9. After the BAC has determined the LCRB, the Secretariat, with the

assistance of the TWG, if necessary, prepares the BAC Resolution

declaring the LCRB and the corresponding Notice to the said bidder

informing it of its post-qualification.


OPERATIONS MANUAL

101 | P a g e

If the bidder with the LCB fails to pass post qualification, the BAC shall

immediately notify the said bidder in writing of its post-disqualification

and the grounds for it. The post-disqualified bidder shall have three (3)

calendar days from receipt of the said notification to request from the

BAC, if it so wishes, a reconsideration of its decision. The BAC shall

evaluate the request for reconsideration, if any, using the same non-

discretionary criteria, and shall issue its final determination of the said

request within seven (7) calendar days from receipt thereof.

Similar to the cases of bidders deemed to be ineligible and whose bids are

rated “failed,” the bidder with the LCB who fails to pass post-qualification

may likewise file a protest with the payment of the corresponding fee in

case the BAC denies its request for reconsideration.

Immediately after the BAC has notified the first bidder of its post-

disqualification, and notwithstanding any pending request for

reconsideration thereof, the BAC shall initiate and complete the same

post-qualification process on the bidder with the second LCB. If the

second bidder passes the post-qualification, and provided that the

request for reconsideration of the first bidder has been denied, the BAC

shall declare the second bidder as the bidder with the LCRB. The Head of

the Procuring Entity shall then award the contract to it.

If the second bidder, however, fails the post-qualification, the procedure

for post-qualification shall be repeated for the bidder with the next LCB,

and so on until the LCRB, is determined for award.

If no bidder passes post-qualification, the BAC shall issue a Resolution

declaring a failure of bidding. In such a case, the BAC shall issue a

Resolution declaring a failure of bidding. The BAC then reviews the terms

and conditions stated in the IAEB. If warranted, it changes any of the

terms and conditions, including the quantities or specifications, provided

that the ABC is left unchanged. It must, thereafter, conduct a re-bidding,

in the process formulating a new IAEB and posting and publishing this as

required. All bidders that have initially responded to the IAEB in the first

bidding shall be allowed to submit new bids.

If the original estimate is found to be inadequate on reassessment to

meet the objectives of the project, it may be necessary to reduce the

scope of the project. Should a second failure of bidding occur and the


OPERATIONS MANUAL

102 | P a g e

Procuring Entity finds that there is a need to evaluate the responsiveness

of the ABC, and so decides to revise the ABC accordingly, the Procuring

Entity should conduct another public bidding with re-advertisement

and/or posting.

The BAC shall declare the bidding a failure when:

a) No bids are received;

b) All prospective bidders are declared ineligible;

c) All bids fail to comply with all the bid requirements or fail post-

qualification, or, in the case of consulting services, there is no

successful negotiation; or

d) The bidder with the Lowest Calculated Responsive Bid/Highest

Rated Responsive Bid refuses, without justifiable cause, to accept

the award of contract, and no award is made in accordance with

Section 40 of the Act and this IRR.

In order to determine the reason for the failed bidding, the BAC

shall conduct a mandatory review and evaluation of the terms,

conditions, and specifications in he Bidding Documents, including its cost

estimates. Based on its findings, the BAC shall revise the terms,

conditions, and specifications, and if necessary, adjust the ABC, subject to

the required approvals, and conduct a re-bidding with re-advertisement

and/or posting, as provided for in Section 21.2 of this IRR.

Alternatively, the Procuring Entity may enter into a negotiated

procurement with a legally, technically, and financially capable supplier.

However, if the Procuring Entity resorts to negotiated procurement, the

terms, conditions, and specifications of the project as well as the ABC

must be maintained.

The Procuring Entity may exercise the right to reject any and all bids,

to declare a failure of bidding, or not to award the contract in any of the

following situations:

a. If there is prima facie evidence of collusion between appropriate

public officers or employees of the Procuring Entity, or between the

BAC and any of the bidders, or between or among the bidders


OPERATIONS MANUAL

103 | P a g e

The following are some instances where the SKWD BAC is deemed to have failed to follow prescribed procedures: 1. Prescribing an insufficient number of days in the advertisement and/or

posting of the IAEB; 2. Exceeding the required periods for eligibility screening, bid evaluation,

post-qualification for each lowest calculated bidder or for awarding the contract without justifiable cause;

3. Conducting the pre-bid conference or issuing the bidding documents in less than the required number of days before deadline for the submission and opening of bids;

4. Requiring the bidder to submit additional documents which is tantamount to improving his bidding documents; and

5. Allowing a bidder to become eligible or pass the post-qualification with incomplete documents.

themselves, or between a bidder and a third party, including any act

which restricts, suppresses or nullifies or tends to restrict, suppress or

nullify competition;

b. If the BAC is found to have failed in following the prescribed bidding

procedures, for which the applicable sanctions shall be applied to the

erring officers, as provided in IRRA Section 65; or

c. For any justifiable and reasonable ground where the award of the

contract will not redound to the benefit of the government as

follows:

a. If the physical and economic conditions have significantly

changed so as to render the project no longer economically,

financially or technically feasible as determined by the Head of

the Procuring Entity;

b. If the project is no longer necessary as determined by the Head

of the Procuring Entity; and

c. If the source of funds for the project has been withheld or

reduced through no fault of the Procuring Entity.


OPERATIONS MANUAL

104 | P a g e

STAGE 7 – AWARD THE CONTRACT

The contract shall be awarded to the bidder with the LOWEST

CALCULATED RESPONSIVE BID at its submitted bid price or its

calculated bid price, whichever is lower.

The BAC shall issue a Resolution recommending to the Head of the

Procuring Entity award of the contract to the bidder with the LCRB at

its submitted bid price or its calculated bid price, whichever is lower.

Prior to the expiration of the period of bid validity, the Procuring Entity

should notify the successful bidder in writing that its bid has been

accepted, through a Notice of Award received personally or sent by

registered mail or electronically. It is important that, in case the Notice

of Award is not received personally, its receipt must be confirmed in

writing within two (2) days by the successful bidder and submitted

personally or sent by registered mail or electronically to the Procuring

Entity (this particular instruction must be included in the ITB so that

the bidder may be guided accordingly).

The Head of Procuring Entity or his duly authorized representative

should approve or disapprove the recommendation of award within

twelve (12) calendar days from the date of determination and

declaration by the BAC of the LCRB.

The Notice of Award shall be given to the bidder with the LCRB

immediately after approval of the recommendation. Simultaneously, a

copy of the Notice shall be furnished to all losing bidders, and posted

in the website of the PhilGEPS, as well as the websites of the Procuring

Entity and its electronic procurement service provider, if any.

The following must participate in the activities related to the awarding

of the Contract:

1. The Head of the Procuring Entity;

2. The BAC;

3. The Procurement Office;

4. The BAC Secretariat/Procurement Unit;


OPERATIONS MANUAL

105 | P a g e

5. The bidder who submitted the LCRB/SCRB; and

6. The Observers.

The following steps are followed in the awarding of a contract:

1. The BAC Secretariat consolidates all the documents and/or records

of the proceedings of the BAC with regard to the procurement

at hand, and attaches the same to the BAC Resolution.

2. The BAC Secretariat drafts the BAC Resolution recommending

award.

3. The BAC approves and signs the Resolution Recommending Award,

and transmits the same to the Head of the Procuring Entity.

4. The Head of the Procuring Entity, or his/her duly authorized

representative, acts on the recommendation for award within

twelve (12) calendar days from the date of determination and

declaration by the BAC of the LCRB/SCRB.

5. In case of approval of the recommendation, the Head of the

Procuring Entity, through the procurement unit/office, issues

the Notice of Award to the bidder with the LCRB/SCRB, while

the BAC accordingly notifies the losing bidders. In case of a

disapproval of the recommendation of award, the Head of the

Procuring Entity shall state the reason(s) for disapproval and

instruct the BAC on the subsequent steps to be adopted.

6. The bidder with the LCRB/SCRB accepts the Notice of Award.

SUBMISSION/POSTING OF PERFORMANCE SECURITY

To guarantee the faithful performance by the winning bidder of its

obligations under the contract in accordance with the Bidding Documents, it

shall post a performance security prior to the signing of the contract.

The performance security shall be in an amount equal to a percentage

of the total contract price in accordance with the following schedule:


OPERATIONS MANUAL

106 | P a g e

Form of Performance Security

Amount of Performance Security

(Equal to Percentage of the Total

Contract Price)

Cash, cashier’s/manager’s

check, bank

draft/guarantee confirmed by a

Universal or

Commercial Bank.

Goods and Consulting Services –

Five percent (5%)

Infrastructure Projects – Ten

percent (10%)

Irrevocable letter of credit

issued by a Universal or

Commercial Bank: Provided,

however, that it shall be

confirmed or authenticated by

a Universal or Commercial

Bank, if issued by a foreign

bank.

Surety bond callable upon

demand issued by a surety or

insurance company duly

certified by the Insurance

Commission as authorized

to issue such security.

Thirty percent (30%)

Any combination of the

foregoing.

Proportionate to share of form

with respect to total amount of

security

The performance security shall be denominated in Philippine Pesos and

posted in favor of the procuring entity, which shall be forfeited in the

event it is established that the winning bidder is in default in any of its

obligations under the contract.

The performance security shall remain valid until issuance by the

procuring entity of the final Certificate of Acceptance.

The performance security may be released by the procuring entity after

the issuance of the Certificate of Acceptance, subject to the following

conditions:


OPERATIONS MANUAL

107 | P a g e

a) Procuring entity has no claims filed against the contract awardee or

the surety company;

b) It has no claims for labor and materials filed against the contractor;

and

c) Other terms of the contract.

For the procurement of infrastructure projects, the winning bidder shall

post an additional performance security following the schedule above to

cover any cumulative increase of more than ten percent (10%) over the

original value of the contract as a result of amendments to order or

change orders, extra work orders and supplemental agreements, as the

case may be. The winning bidder shall cause the extension of the validity

of the Performance Security to cover approved contract time extensions.

In case of a reduction in the contract value, or, in the case of

procurement of infrastructure projects, for partially completed works

under the contract which are usable and accepted by the GOP, and the

use of which, in the judgment of the implementing agency or the

procuring entity, will not affect the structural integrity of the entire

project, the said agency or procuring entity shall allow a proportional

reduction in the original performance security, provided that any such

reduction is more than ten percent (10%) and that the aggregate of such

reductions is not more than fifty percent (50%) of the original

Performance Security.

If the bidder refuses to accept the award within the bid validity

period, the BAC shall forfeit the bid security of the bidder and shall

initiate the blacklisting proceedings in accordance with the Uniform

Guidelines for Blacklisting (GPPB Resolution No. 09- 2004). It then

initiates and completes the post-qualification of the bidder with the

second lowest calculated bid. If found qualified, the said bidder shall be

awarded the contract. This procedure is repeated until the LCRB is

determined. Should all eligible bidders fail post qualification, the BAC

must declare the bidding a failure.

Refusal to accept an award, without just cause or for the purpose

of forcing the Procuring Entity to award the contract to another bidder, if

proven, is meted with a penalty of imprisonment of not less than six (6)

years and one (1) day by not more than fifteen (15) years. Additional


OPERATIONS MANUAL

108 | P a g e

penalties of suspension for one (1) year from participation in government

procurement for the first offense, and suspension for two (2) years for

the second offense shall also be imposed on the bidder.

STAGE 8 – CONTRACT PREPARATION AND SIGNING

The winning bidder and the Procuring Entity must enter into a

contract immediately after the former has submitted the performance

security and all other documentary requirements within the period

specified in the IRR-A. The parties must sign the contract within ten (10)

calendar days from receipt by the winning bidder of the Notice of Award.

The Chief Accountant or the Chief Budget Officer may sign the

contract as an instrumental witness thereto.

The Procuring Entity signatory is encouraged to sign within the same day

as the signing of the bidder as there are penalties against delaying,

without justifiable cause, the award of the contract. (IRR-A Section 65.1)

Moreover, it would be best for the winning bidder and the Head of the

Procuring Entity, or its appropriate signing authority, to sign/execute the

contract together – provided that all contract documents and

requirements are complete – so that both may personally appear before

a Notary Public.

The following parties are involved in the signing and approval of the

contract, and in the issuance of the NTP:

1. The BAC Secretariat/Procurement Unit/Office;

2. The Head of the Procuring Entity;

3. The winning bidder; and

4. End-user.

STAGE 9 - NOTICE TO PROCEED

The NTP must be issued together with a copy or copies of the approved

contract to the successful bidder within seven (7) calendar days from the

date of approval of the contract by the appropriate government

approving authority.

EFFECTIVITY OF CONTRACT

Unless otherwise specified in the contract, a contract is effective upon

receipt of the NTP.


OPERATIONS MANUAL

109 | P a g e

PERIOD OF ACTION FOR PROCUREMENT ACTIVITIES

The procurement process from the opening of bids up to the award of

contract shall not exceed three (3) months, or a shorter period to be

determined by the procuring entity concerned. All members of the

BAC shall be on a “jury duty” type of assignment until the Notice of

Award is issued by the Head of the Procuring Entity in order to

complete the entire procurement process at the earliest possible

time.

For purposes of this section, the term “jury duty” shall be understood

to mean a state by which the members give utmost priority to BAC

assignment over all the other duties and responsibilities until the

requirements for the said assignments at hand are completed.

In case the deadline for each activity falls on a non-working day (i.e.

Saturday and Sunday), legal holiday, or special non-working holiday,

the deadline shall be the next working day.

If no action on the contract is taken by the Head of the Procuring

Entity or the appropriate approving authority within the periods

specified in this IRR of RA 9184, the contract concerned shall be

deemed approved: Provided, however, That where further approval

by the Office of the President is required, the contract shall not be

deemed approved unless and until the Office of the President gives

actual approval to the contract concerned.


OPERATIONS MANUAL

110 | P a g e

PERIOD OF ACTION ON PROCUREMENT ACTIVITIES

STAGE ACTIVITIES DEADLINE GOODS INFRAST

RUCTURE

PROJECT

S

Consult

ing

Service

s

1 Advertisement/Posting

of Invitation to Bid

7 cd 7 cd 7cd

2 Issuance and

Availability of Bidding

Documents

From 1st day of Stage

1 until Stage 4

3 Pre-bidding

Conference

12 cd before Stage 4 1 cd 1 cd 1 cd

Request for

Clarification

10 cd before Stage 4

Supplemental/Bid

Bulletin

7 cd before Stage 5

4 Submission, Receipt

and Opening of

Eligibility Envelopes

and Bids

45 cd from last days

of Stage 1 for Goods

50/65 cd from last

day of Stage 1 for

Infrastructure

Projects

75 cd from last day of

Stage 1 for

Consulting Services

1 cd 1 cd 1 cd

5 Bid Evaluation 7 cd 7 cd 21 cd

+2 cd

for

approv

al of

ranking

6 Post-Qualification 30 cd 30 cd 30 cd

7 Award of Contract 15 cd 15 cd 15 cd

8 Contract Preparation 10 cd 10 cd 10 cd


OPERATIONS MANUAL

111 | P a g e

and Signing

9 Notice to Proceed 7 cd 7 cd 7 cd

ALTERNATIVE METHOD OF PROCUREMENT

IRR-A Sections 48 to 54 provide the legal reference for the alternative methods of

procurement.

Subject to the prior approval of the HoPE, and whenever justified by the conditions

provided in this Act, the Procuring Entity may, in order to promote economy and

efficiency, resort to any of the alternative methods of procurement provided in this

Rule. In all instances, the Procuring Entity shall ensure that the most advantageous

price for the Government is obtained.

In accordance with Section 10 of the IRR of RA 9184, as a general rule, the Procuring

Entities

shall adopt competitive bidding as the general method of procurement and shall see

to it that the procurement program allows sufficient lead time for such competitive

bidding. Alternative methods of procurement shall be resorted to only in highly

exceptional cases provided for in this Rule.

The method of procurement to be used shall be as indicated in the approved APP. If

the original method of procurement recommended in the APP was competitive

bidding but cannot be ultimately pursued, the BAC, through a resolution, shall justify

and recommend the change in the method of procurement to be approved by the

HoPE. Such changes must be reflected in the APP to be submitted to the GPPB.

LIMITED SOURCE BIDDING

Limited Source Bidding , otherwise known as selective bidding, is a method of

procurement of Goods and Consulting Services that involves direct invitation to bid

by the Procuring Entity from the list of pre-selected suppliers or consultants with

known experience and proven capability on the requirements of the particular

contract. This alternative method of procurement may be employed under any of

the following conditions:

a) Procurement of highly specialized types of goods (e.g. , sophisticated defense

equipment, complex air navigation systems, coal) and consulting services where


OPERATIONS MANUAL

112 | P a g e

only a few suppliers or consultants are known to be available, such that

resorting to the competitive bidding method will not likely result in any

additional suppliers or consultants participating in the bidding; or

b) Procurement of major plant components where it is deemed advantageous to

limit the bidding to known qualified bidders in order to maintain uniform quality

and performance of the plant as a whole.

The pre-selected suppliers or consultants shall be those appearing in a list

maintained by the relevant government authority that has expertise in the type of

procurement concerned. The list of pre-selected suppliers or consultants shall be

updated periodically. A copy of the list shall be submitted to, and maintained

updated with, the GPPB.

The pre-selection shall be based upon the capability and resources of the bidders to

perform the contract taking into account their experience and past performance on

similar contracts, capabilities with respect to personnel equipment or manufacturing

facilities, and financial position. Pre-selection shall be done in accordance with the

following procedures provided in the GPMs.

The BAC of the concerned Procuring Entity shall directly invite all the suppliers or

consultants appearing in the pre-selected list. All other procedures for competitive

bidding shall be undertaken, except for the advertisement of Invitation to

Bid/Request for Expression of Interest under Section 21.2.1 of the IRR of RA 9184.

DIRECT CONTRACTING

Direct Contracting or single source procurement is a method of procurement of

Goods that does not require elaborate Bidding Documents. The supplier is simply

asked to submit a price

quotation or a pro-forma invoice together with the conditions of sale. The offer may

be accepted immediately or after some negotiations. Direct contracting may be

resorted to by

concerned Procuring Entities under any of the following conditions:

a) Procurement of Goods of proprietary nature which can be obtained only from the

proprietary source, i.e. when patents, trade secrets, and copyrights prohibit

others from manufacturing the same item;


OPERATIONS MANUAL

113 | P a g e

b) When the procurement of critical components from a specific supplier is a

condition precedent to hold a contractor to guarantee its project performance, in

accordance with the provisions of its contract; or

c) Those sold by an exclusive dealer or manufacturer which does not have sub-

dealers selling at lower prices and for which no suitable substitute can be

obtained at more advantageous terms to the GoP

REPEAT ORDER

Repeat Order, when provided for in the APP, is a method of procurement of Goods

from the

previous winning bidder, whenever there is a need to replenish goods procured

under a contract previously awarded through Competitive Bidding. Repeat orders

shall likewise be subject to the following conditions:

a) Unit prices of the repeat order must be the same as or lower than those in the

original contract: Provided, That such prices are still the most advantageous to

the GoP after price verification;

b) The repeat order will not result in splitting of contracts, requisitions, or purchase

orders, as provided for in Section 54.1 of the IRR of RA 0184;

c) Except in cases duly approved by the GPPB, the repeat orders shall be availed of

only within six (6) months from the date of the Notice to Proceed arising from

the original contract: Provided , That there has been a partial delivery, inspection

and acceptance of the goods within the same 6-month period; and

d) Repeat orders shall not exceed twenty-five percent (25%) of the quantity of each

item in the original contract. In order not to exceed the 25% threshold, the goods

under the original contract must be:

i. Quantifiable

ii. Divisible; and

iii. Consisting of at least four (4) units per item.

SHOPPING

Shopping is a method of procurement of Goods whereby the Procuring Entity simply

requests for the submission of price quotations for readily available off-the-shelf

goods or ordinary/regular equipment to be procured directly from suppliers of

known qualifications. This method of procurement shall be employed in any of the

following cases:


OPERATIONS MANUAL

114 | P a g e

a) When there is an unforeseen contingency requiring immediate purchase:

Provided, however, That the amount shall not exceed the thresholds prescribed in

Annex “H” of the IRR of RA 9184.

b) Procurement of ordinary or regular office supplies and equipment not available in

the Procurement Service involving an amount not exceeding the thresholds

prescribed in Annex “H” of the IRR of RA 9184.

The phrase “ordinary or regular office supplies” shall be understood to include those

supplies, commodities, or materials which are necessary in the transaction of official

businesses, and consumed in the day-to-day operations.

However, office supplies shall not include services such as repair and maintenance of

equipment and furniture, as well as trucking, hauling, janitorial, security, and related

or analogous services.

Under Section 52.1 (b) of the IRR of RA 9184, at least three (3) price quotations from

bona fide suppliers shall be obtained.

The thresholds prescribed in Annex “H” of the IRR of RA 9184shall be subject to a

periodic review by the GPPB. For this purpose, the GPPB shall be authorized to

increase or decrease the said amount in order to reflect changes in economic

conditions and for other justifiable reasons.

NEGOTIATED PROCUREMENT

Negotiated Procurement is a method of procurement of Goods, Infrastructure

Projects and Consulting services, whereby the Procuring Entity directly negotiates a

contract with a technically, legally and financially capable supplier, contractor or

consultant in any of the following cases:

Two Failed Biddings. Where there has been failure of competitive bidding or Limited

Source Bidding for the second time as provided in Section 35 of the Act and of

the IRR of RA 9184.

Emergency Cases. In case of imminent danger to life or property during a state of

calamity, or when time is of the essence arising from natural or man-made

calamities or other causes where immediate action is necessary to prevent

damage to or loss of life or property, or to restore vital public services,


OPERATIONS MANUAL

115 | P a g e

infrastructure facilities and other public utilities. In the case of Infrastructure

Projects, the Procuring Entity has the option to undertake the project through

negotiated procurement or by administration or, in high security risk areas,

through the AFP.

Take-Over of Contracts . Take-over of contracts, which have been rescinded or

terminated for causes provided for in the contract and existing laws, where

immediate action is necessary to prevent damage to or loss of life or property,

or to restore vital public services, infrastructure facilities and other public

utilities.

Adjacent or Contiguous . Where the subject contract is adjacent or contiguous to an

ongoing Infrastructure Project or Consulting Service where the consultants

have unique experience and expertise to deliver the required service:

Provided, however, That (a) the original contract is the result of a Competitive

Bidding; (b) the subject contract to be negotiated has similar or related scopes

of work; (c) it is within the contracting capacity of the contractor/consultant;

(d) the contractor/consultant uses the same prices or lower unit prices as in

the original contract less mobilization cost; (e) the amount of the contiguous

or adjacent work involved does not exceed the amount of the ongoing project;

and (f) the contractor/consultant has no negative slippage/delay: Provided ,

further , That negotiations for the procurement of the contiguous or adjacent

work are commenced before the expiry of the original contract.

Agency -to-Agency. Procurement of Goods, Infrastructure Projects and Consulting

Services from another agency of the GoP, such as the DBM-PS, which is tasked

with a centralized procurement of Common-Use Supplies for the GoP in

accordance with Letters of Instruction No. 755 and E.O. 359, s. 1989.

Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services.

Where Goods, Infrastructure Projects and Consulting Services can be contracted to a

particular supplier, contractor or consultant and as determined by the HoPE, for any

of the following:

1. The requirement is for:

a. Work of art; commissioned work or services of an artist for a specific artist skills

(e.g. , Singer, poet, writer, painter, sculptor, etc.);

b. Scientific, academic, scholarly work or research, or legal services;


OPERATIONS MANUAL

116 | P a g e

c. Highly-specialized life-saving medical equipment, as certified by the

Department of Health (DOH);

d. Scientific, technical, economic, business, trade or legal journal, magazine,

paper, subscription, or other exclusive statistical publications and references; or

e. Media documentation, advertisement, or announcement through television,

radio, newspaper, internet, and other communication media.

Due to the nature of the information to be disseminated, alongside principles of

transparency, efficiency and economy, award to more than one (1) supplier may

be made by the Procuring Entity.

2. The construction or installation of an infrastructure facility where the material,

equipment, or technology under a proprietary right can only be obtained from the

same contractor.

HIGHLY TECHNICAL CONSULTANTS

In the case of individual consultants hired to do work that is (i) highly technical or

proprietary; or (ii) primarily confidential or policy determining, where trust and

confidence are the primary consideration for the hiring of the consultant: Provided,

however , That the term of the individual consultants shall, at the most, be on a six

month basis, renewable at the option of the appointing HoPE, but in no case shall

exceed the term of the latter.

Defense Cooperation Agreement. Upon prior approval by the President of the

Philippines, and when the procurement for use by the AFP involves major

defense equipment or materiel and/or defense-related consultancy services,

when the expertise or capability required is not available locally, and the

Secretary of National Defense has determined that the interests of the

country shall be protected by negotiating directly with an agency or

instrumentality of another country with which the Philippines has entered

into a defense cooperation agreement or otherwise maintains diplomatic

relations: Provided, however , That the performance by the supplier of its

obligations under the procurement contract shall be covered by a

performance security in accordance with Section 39 of the IRR of RA 9184.


OPERATIONS MANUAL

117 | P a g e

Small Value Procurement. Procurement of Goods, Infrastructure Projects and

Consulting Services, where the amount involved does not exceed the

threshold prescribed in Annex "H" of this IRR: Provided, That in case of

Goods, the procurement does not fall under shopping in Section 52 of the IRR

of RA 9184.

Lease of Real Property and Venue. Lease of real property and venue for official use,

subject to Annex “H” of the IRR of RA 9184.

NGO Participation. When an appropriation law or ordinance earmarks an amount to

be specifically contracted out to Non-Governmental Organizations (NGOs),

the Procuring Entity may enter into a Memorandum of Agreement with an

NGO, subject to the guidelines issued by the GPPB for the purpose.

Community Participation. Where, in the interest of project sustainability or to

achieve certain specific social objectives, it is desirable in selected projects, or

its components, to call for participation of local communities in the delivery

of goods, including non-consulting services, and simple infrastructure

projects, subject to the Community Participation Procurement Manual

(CPPM) issued by the GPPB.

United Nations Agencies, International Organizations or International Financing

Institutions. Procurement from specialized agencies of the United Nations,

International Organizations or International Financing Institutions, of any of

the following: (a) small quantities of off-the-shelf goods, primarily in the

fields of education and health; (b) specialized products where the number of

suppliers is limited, such as but not limited to vaccines or drugs; or (c) Goods,

Infrastructure Projects and Consulting Services, involving advanced

technologies, techniques and innovations not locally available as certified by

the HoPE, when it is most advantageous to the government.

Terms and Conditions for the use of Alternative Methods

Splitting of Government Contracts is not allowed. Splitting of Government Contracts

means the division or breaking up of GoP contracts into smaller quantities and

amounts, or dividing contract implementation into artificial phases or sub-contracts

for the purpose of evading or circumventing the requirements of law and this IRR,


OPERATIONS MANUAL

118 | P a g e

particularly the necessity of competitive bidding and the requirements for the

alternative methods of procurement.

For Infrastructure Projects to be implemented by phases, the Procuring Entity shall

ensure that there is a clear delineation of work for each phase, which must be usable

and structurally sound. It shall also ensure the conduct of the detailed engineering

activities for each phase as provided for in Annex “A” of the IRR of RA 9184.

For alternative methods of procurement, the Procuring Entity may dispense with the

advertisement in the newspaper and posting requirement as prescribed in Section

21.2.1 of the IRR of RA 9184.

For the following modalities, however, the BAC, through its Secretariat, shall post

the invitation or request for submission of price quotations/proposals in the

PhilGEPS website, the website of the Procuring Entity concerned, if available, and at

any conspicuous place reserved for this purpose in the premises of the Procuring

Entity for a period of at least three (3) calendar days:

1. Section 49 Limited Source Bidding;

2. Section 52.1(b) Shopping for ordinary office supplies and equipment not available

in DBM-PS (for ABC above Fifty Thousand Pesos (50,000.00));

3. Section 53.1 Two Failed Biddings;

4. Section 53.9 Small Value Procurement (For ABC above Fifty Thousand Pesos

(50,000.00); and

5. Section 53.11 NGO Participation.

In all instances of alternative methods of procurement, the BAC, through the

Secretariat, shall post, for information purposes, the notice of award, contract or

purchase order, including notice to proceed if necessary, in the PhilGEPS website,

the website of the Procuring Entity concerned, if available, and at any conspicuous

place reserved for this purpose in the premises of the Procuring Entity, except for

contracts with ABC of Fifty Thousand Pesos (50,000.00) and below.

Except for Limited Source Bidding under Section 49 of this IRR, submission of bid

securities may be dispensed with.


OPERATIONS MANUAL

119 | P a g e

Performance and Warranty Securities

Performance and/or warranty securities are required for the following alternative

methods of procurement, in accordance with Sections 39 and 62 of the IRR of RA

9184.

Alternative Method

of Procurement

Performance Security (PS) Warranty Security (WS)

Limited Source Bidding For highly specialized types of

goods, WS is required.

Direct Contracting x

Repeat Order x

Two Failed Biddings

In no case shall WS be

required in the procurement

of Consulting Services.

Emergency Cases

Procuring Entity may require

PS depending on the nature of

the procurement project.

However, for Infrastructure

Projects, PS is required.


WS depending on the nature

of the procurement project.




Take-over of Contracts

Adjacent/Contiguous For Infrastructure

Projects, WS is required.

Small Value

Procurement


PS depending on the nature of

the procurement project.

However, for Infrastructure

Projects, PS is required.


WS depending on the nature

of the procurement project.




Manufacturers, suppliers, distributors, contractors, and/or consultants are

mandated to register with PhilGEPS and provide a PhilGEPS Registration Number in

the following alternative methods of procurement as a condition for award of the

contract:

a. Section 50 - Direct Contracting


OPERATIONS MANUAL

120 | P a g e

b. Section 52.1 (b) - Shopping for Ordinary Office Supplies and Equipment not available in

DBM-PS

c. Section 53.3 - Take Over of Contracts (Only for New Bidders, if any.)

d. Section 53.6 - Scientific, Scholarly, or Artistic Work, Exclusive Technology and

Media Services

f. Section 53.9 - Small Value Procurement

g. Section 53.10 - Lease of Real Property and Venue

h. Section 53.11 - NGO Participation

For purposes of Limited Source Bidding under Section 49 and Two Failed Biddings

under Section 53.1 of the IRR of RA 9184, the BAC shall require the submission of a

certificate of PhilGEPS registration in accordance with Section 8.5.2 of the IRR of RA

9184.

The specific terms, conditions and documentary requirements, including the

limitations and restrictions, for the application of each of the alternative methods

mentioned in this article shall be provided for in Annex "H" of this IRR and guidelines

specifically issued for this purpose.

REFERENCES

HANDBOOK ON PHILIPPINE GOVERNMENT PROCUREMENT 6TH EDITION

IMPLEMENTING RULES AND REGULATIONS OF RA 9184

GENERIC PROCUREMENT MANUAL

- ESTABLISHING PROCUREMENT SYSTEM & ORGANIZATION

- PROCUREMENT OF GOODS AND SERVICES

- CONSULTING SERVICES

- PROCUREMENT OF INFRASTRUCTURE PROJECTS


OPERATIONS MANUAL

121 | P a g e

HUMAN RESOURCE

Introduction:

The Sultan Kudarat Water District Human Resources Operational Manual adopts

a comprehensive Human Resources Planning, Manual on Recruitment, Selection and

Placement, and Learning and development, pursuant to Civil Service Law and rules.

Basic Policy:

The Sultan Kudarat Water District Human Resources Operational Manual is

everybody’s business not just of the Human Resources Practitioners of this office.

The support of the top management and full cooperation of every member are vital.

It is anchored on the Civil Service Law and Rules as a guide for us on how to plan, to

organized and maintain the Human Resources of this office.

OBJECTIVE:

1. To established standard policy on Human Resources Planning, Retention,

Recruitment, Selection, placement and Learning and Development.

2. To create an equal environment for career advancement and employees

development.

3. To provide a guide on any grievances resolution within the office.

SCOPE:

This Manual includes the SKWD Strategic Human Resources Plan, SKWD Manual

on Recruitment, Selection and Placement, SKWD Manual on Learning and

Development and Grievance Machinery.

HUMAN RESOURCES PRACTITIONER ROLE:

Implements Human Resources programs, policies and procedures pursuant to

Civil Service Law and Rules particularly on planning, recruitment, selection and hiring

of personnel, administers employees relations program and handles and provides

training and educational opportunities programs.

TABLE OF CONTENT

I. HR Strategic Plan

II. Manual on Recruitment, Selection and Placement

III. Manual on Learning and Development

IV. Grievance Machinery


OPERATIONS MANUAL

122 | P a g e

Overview:

The Sultan Kudarat Water District had developed its Strategic Human

Resources Plan as mandated by the Civil Service Commission as the central

personnel agency of the government Sec. 3, Article IX B 1987 Philippine Constitution,

Sec. 30 and 31, Revised Administrative Code on Civil Service had been cited as the

legal basis for its crafting.

SKWD Strategic HR Plan:

SKWD Strategic HR Plan is an important component of HR management. It

links HR management directly to the strategic plan of our office. We have a strategic

plan to guide us in successfully meeting our vision. We develop a strategic plan to

guide us on our decisions about the future. Strategic HR Planning is also important

from a budgetary point of view so that we can favor the costs of recruitment,

training, etc. into our organization’s operating budget. It will also ensure adequate

human resources to meet the strategic goals and operational plans of SKWD having

the right people with the right skills at the right time. It enables us to keep up with

social, economic, legislative and technological trends that impact on human

resources in our area and in the water industry sector.

KEY PLAYERS:

Agency HR Champion: Preferably the highest official in charge of HR in the agency

with a track record in HR transformation and organizational

development.

ROLE:

1. Champion the value of the HR plan in the organization and influences its HR

transformation

2. Provides advice in line with agency strategic direction and development.

3. Coaches the HR planning team in the development, promotion and eventual

implementation of the Strategic HR plan.

4. Leads in the advancement of HR plan.

HR Planning Team: Comprises the Following:

1. Human Resources Practitioner of this office

2. Finance Head

3. Department Heads

4. SKWDEU Representative


OPERATIONS MANUAL

123 | P a g e

ROLE:

1. Develops the HR Plan and ensures its alignment with the Agency Strategic

Plan

2. Ensure that processes are followed, activities are done as scheduled.

Changes/agreements are followed as discussed and milestones are achieves

3. Advocates the development, promotion and eventual implementation of

Strategic HR Plan.

4. As resource person, provides relevant information and appropriate technical

assistance in the development, administration and evaluation of HR profiling,

capacity building, employee welfare and HR system and other related HR

initiatives.

5. Ensure continuous review, assessment, and fine-tuning of the HR Plan.

HR Practitioner: Human Resource Management In charge

ROLE:

1. Assist in the development of the necessary HRMD functions for the

implementation of the plan.

2. Promotes the essential features of the HR to all levels in the organizational

hierarchy.

3. Ensures implementation of the HR Plan

4. Maintains and regularly updates Agency HR Inventory for reference purposes

5. Coordinates and Facilitate HR interventions

6. Monitor the progress of the activities in providing the HR interventions and

reports to the Head of Agency the status of plan implementation as well as its

percentage of success implementation

7. Act as coordinator with all the department in the provision of HR support and

assistance in the implementation of HR interventions

8. As HR partner and ally of the Civil Service Commission: ensure the judicious

implementation of Civil Service Law and Rules in the execution of the HR

Plan.


OPERATIONS MANUAL

124 | P a g e

VISION

The best water service provider in the province of Sultan Kudarat, manned by highly

motivated and competent personnel dedicated to the people and the environment.

MISSION

SKWD commits to provide 24/7 of potable, adequate and affordable water with

competent personnel to provide efficient customer service and active partner on

environmental issues and development.

The Sultan Kudarat Water District HR Plan Follows 6 process adapted from the Civil

Service Commission Model.

Strategic HR Planning Process entails six (6) major steps, as follows:

Step 1 Organizational Profiling

Step 2 Competency Mapping

Step 3 HR Systems Check

Step 4 Prioritizing Gaps and Proposing Interventions

Step 5 Instituting a Monitoring and Evaluation Framework

Step 6 Communicating the Strategic HR Plan

Step 1 Organizational Profiling

Organization profile contains the following, but not limited to:

a) Agency’s vision, mission, and value statements;

b) Strategic Plan and

c) Human resources (number, issues, quality and role in the organization).

Organizational profiling is done by the following actions and outputs:


OPERATIONS MANUAL

125 | P a g e

Step 2 Competency Mapping

1. Review of Vision, Mission and Strategic Objectives

The Vision describes where the organization is headed and what it intends to be.

Mission is the reason for the Agency’s existence and provides the best rationale for

the Agency’s


OPERATIONS MANUAL

126 | P a g e

Strategic Plan.

These principles are then supported by the Agency’s corporate culture or Value

Statements Which “…define how people want to behave with each other in the

organization... are Statements about how the organization will value customers,

suppliers, and the internal community... [and] …describe actions which are the living

enactment of the fundamental values held by most individuals within the

organization.

2. Conduct of HR Inventory

An HR Inventory is necessary to identify the current capability and skills of

employees, provide information on what the employees can do, and identify the

current or future threat/s to the Agency’s ability to perform. In the absence of an

existing baseline data of the HR complement of the Agency, the service profile or

201 file of employees may be utilized. Updating of employee Personal Data Sheet

(PDS) is required in order to acquire the information.

Template B1 provides extensive information of Agency’s personnel complement. The

information gathered will be grouped according to status of employment (as defined

in MC 40, s. 1998), and levels of positions (as enumerated in the Omnibus Rules

Implementing Book V of EO 292) and remuneration (using the latest NBC and LBC).

Template B2 is a summary of the number of personnel in various categories (i.e.

employee’s Age, Educational Attainment and Length of Service in the Current

Position and in the Government, Employment Status, and other pertinent

information that may be deemed appropriate to generate data from the HR

Inventory.)

3. Determine Job Requirements

The key goal in HR planning is to get the right number of people with the right skills,

Experience/s and competencies in the right jobs at the right time at the right cost.

This Will require determining the right job requirements for the Agency’s strategic

priorities

4. Conduct Job Analysis

The head of the lead office will identify the actual people involved or to be involved

in each program or project assigned to their office. These employees will be the

respondents to the job analysis that will be conducted.

Actual functions, specific tasks, duties and competencies of employees relative to

their involvement to the identified program, project and activities will be culled out

from the identified respondents.


OPERATIONS MANUAL

127 | P a g e

5. Identify HR Competencies

From the required and actual competencies identified as reflected in Template A, a

competency-based job description or a list of workforce competencies and their

operational definition will be developed,

After accomplishing Columns 1, 2, 3, 4, and 5 of Template A, the head of the lead

office of each program, project or activity will identify the following:

a) Job - Required key positions to produce the identified deliverables;

b) Job Description - Duties and responsibilities;

c) Competencies - knowledge, skills and attitudes; and

d) Number of employees.

Competency

Having identified the job requirement and the competencies needed to perform the

job required of an employee, the required versus the current HR competencies will

be plotted using Template C1.

In doing so, the following factors will be taken into consideration:

objective) for not having the required competencies.

6. Conduct Gap Analysis

After identifying required and current HR competencies of the Agency, gaps will

surface. Possible recommendations for improvement will be determined to bridge

the

gaps.

7. Identify and Rank HR Issues and Concerns

After going through the entire process, HR issues and concerns will be identified.

These issues may be captured by reviewing the performance evaluation results of

the employees in the Agency or through the Journals which Supervisors maintain to

monitor subordinates performance, and to record critical incidents and/or avert any

untoward incident or address constraints and challenges, if any.

Likewise, it can be viewed through personnel records such as employee dismissals,

early retirements, dissatisfaction of varying kinds, etc. Note that the focus is on the

“people issues” that affect the implementation of the Agency Strategic Priorities as

they relate to the HR Plan.

Feedback from employees may also be gathered through a workshop or survey using


OPERATIONS MANUAL

128 | P a g e

Supervisor’s Observation Checklist which describes job performance areas that

indicate employee issues, and signals the action the Agency should take.

From the list of answers gathered, the most common and top five (5) priority issues

that need to be addressed through appropriate HR interventions and development

strategies will be identified using Template E.

Step 3 HR Systems Check

Taking off from the results of Gap Analysis and the top five (5) people issues, HR

Systems should be looked into whether they exist and are operational. This process

will help in formulating the appropriate interventions,

Step 4 Employee Health and Wellness Assessment

An assessment of Employee’s Health and Wellness is indispensable in HR Planning. A

healthy employee predicates good performance and optimum productivity.

Reference is made to CSC MC No. 30, s. 1994 (Checklist of Reasonable Working

Conditions in the Public Sector) and other CSC Issuances on Health and Wellness

should be used as basic references. Attached Template G provides a sample checklist

of such programs and facilities, for reference.


OPERATIONS MANUAL

129 | P a g e

Step 4

Building on data gathered on related HR gaps (e.g. low personnel, job and

competency complement, non-operational or absence of certain HR systems, poor or

absence of wellness programs/services and facilities) and its corresponding HR

interventions (learning and development interventions, staffing and placement

strategies, job enlargement/job enrichment, health and wellness programs, HR

mechanisms, and/or other interventions), decision and agreement will be made as to

which of these interventions, HR actions, systems and mechanisms will have to be

pursued.

These will be examined in view of their importance to the Agency’s organizational

goals, realities, and constraints. Identified needs will be determined if they are real,

if they are worth addressing, and will be specified according to their importance and

urgency.

HR gaps will be prioritized and corresponding interventions determined using

Template H.

This will be clustered according to 1) Organization; 2) HR Competency; 3) HR

Systems; 4) Health and Wellness Programs.


OPERATIONS MANUAL

130 | P a g e

Step 5 Instituting a Monitoring and Evaluation Mechanism

In the previous activities, HR gaps (Organization, HR competency, and HR Systems),

and propose HR interventions to address the gaps were identified and prioritized.

At this point, a Monitoring and Evaluation Mechanism will be used in assessing the

progress of the proposed HR interventions in line with the expected results. This will

be a comprehensive appraisal that looks at the long-term impacts of the

propositions, and exposes what worked, what did not, and what should be done

differently in future endeavors.

The status of Plan implementation as well as its percentage of success should be

reported

by the HR Office to the Head of Agency.

Impact: Transformed Agency HR as a Model of Excellence in Public Service


OPERATIONS MANUAL

131 | P a g e

Communicating the Strategic HR Plan

The final step of the planning process is to strategize on how to communicate most

efficiently and effectively the right information to the right people at the right time.

It will help in ensuring that all employees, internal and external clients of the Agency

have the information they need to be able to play their expected role as well as

respond accordingly, relative to the Strategic HR Plan implementation.

From what was accomplished, human resource planning becomes closely tied to the

needs and strategies of the Agency. This will be the thread that ties together all

other human resource activities and integrates them with the rest of the

organization.

The final challenge in human resource planning is balancing current with future

organizational and employee needs. Achieving this balancing act depends on

whether employees are currently at the right place doing the right things with the

flexibility to adapt to different activities when organizational change is needed.


OPERATIONS MANUAL

132 | P a g e

HR INVENTORY

Level

First Level Second Level Executive

Status of Employment (Sub-professional) (Professional)

Non Supervisory Supervisory Appointive

CES/3rd Level Non CES Elective

Authorized Filled Filled Authorized Filled Authorized Filled Authorized Filled

Position Title

Salary

Grade Step Salary F M Authorized F M F M F M F M F

Permanent

Temporary

Subtitute

Co-terminous


OPERATIONS MANUAL

133 | P a g e

Other Status of Employment

Contractual Casual

Job

Order Detailed Employees

F M F M F M Entry Exit

AGENCY STRATEGIES AND PRIORITIES, REQUIRED AND CURRENT

PROFILE

Agency Starategic Priority Programs, Projects Activities

Time

Frame Lead Office Budget Required Jobs (HR need) Actual Jobs (Existing HR Level)

Job

Job

Description Competencies No. Job

Job

Description Competencies

No

.


OPERATIONAL MANUAL

134 | P a g e

Sultan Kudarat Water District

HR PROFILE

As of June 29, 2013

Age Number

Male Female Total

21-35 years old

36-45

46-55

56-65

Grand Total

Highest Educational Attainment

Educational Attainment

Elementary Graduate/Level

High School Graduate

Vocational Course completion

Bachelor's Degree

Masteral Degree

Doctoral Degree

Grand Total

Field of Expertise

Subject Matter/Specialization

Governance and Public Policy

Public Administration

Human Resource Management

Others

Engineering

Accountancy

Information Technology

Management/Marketing

Vocational/Trade Course

Grand Total

Number of Years in Current Position

Years in Current Position


OPERATIONAL MANUAL

135 | P a g e

1-10 years

11-20

21-30

31-40

41 and above

Grand Total

Number of Years in Public Service

Years in Public Service

1 - 10 years

11 - 20

21 - 30

31 - 40

40 and above

Grand Total

Employment Status

Status

Permanent

Temporary

Elective

Co-terminous

Contractual

Casual

Job Order

Consultant

Grand total

Level Of Position

Level

1st level

2nd level

Executive Managerial

CES

Non-CES

Elective


OPERATIONAL MANUAL

136 | P a g e

Grand total

Salary Grade

Salary Grade

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

Grand Total

Others:


OPERATIONAL MANUAL

137 | P a g e


AGENCY COMPETENCY MODEL

LEVEL

OCCUPATIONAL

GROUPING

COMPETENCIES/OPERATIONAL

DEFINITION

COMPETENCY

LEVEL USAGE

1ST LEVEL

2ND LEVEL

MANAGERIAL


COMPETENCY MAPPING

LEVEL OCCUPATIONAL

GROUPING

COMPETENCIES

REQUIRED CURRENT

COMPETENCY LEVEL QUANTITY IF YES

If

none,


OPERATIONAL MANUAL

138 | P a g e

LEVEL How

Many why

1ST LEVEL

2ND LEVEL

MANAGERIAL


OPERATIONAL MANUAL

139 | P a g e


COMPETENCY GAP ANALYSIS

Gap analysis compares the required competencies in achieving the objectives

of the agency's Strategic Plan vis-à-vis the present employees' current

competencies

FIRST LEVEL


PEOPLES ISSUES

TOP FIVE ISSUES

1

2

3

4

5

Most Common Issues:

1

2

3

4

5


OPERATIONAL MANUAL

140 | P a g e


HR SYSTEM CHECK

HR ACTION HR SYSTEM PRESENT

OPERATIONAL

NON

OPERATIONAL Absent

(In all aspect)

(IN WHAT

ASPECT), Why Why

Qualification Standards

Recruitment Recruitment System

Personnel Selection Board

Merit Promotion Plan

Promotion Career Pathing Program

Succession Planning

Performance Management

System

Retention Career Pathing Program

Training and Development

Succession Planning

Employee Welfare

Program

Rewards

and Program for Rewards and

Recognition Incentives on service

Excellence (PRAISE)

Personnel Grievance

Relations Machinery

Retirement Pre-retirement Program


OPERATIONAL MANUAL

141 | P a g e


EMPLOYEE HEALTH AND WELLNESS ASSESSMENT

Health and Wellness Program Present Absent

Operational Non-Operational,

Why Why

Physical

Physical Fitness Program

Strict "No Smoking within office

premises" Policy

Annual Complete Medical

Check Up

Mental

Forum

Discussion, Brown Bag

Food for Thought

Mind Games

Emotional

Counselling Service

Group Therapy

Social

Social Development

Rest and Recreation

Piknik sa Kalikasan

Outreach Program

Financial

Financial Forum

Welfare Benefits

Livelihood Program

Spiritual

Bible/Koran Readings

Spiritual Forum

Mass/Ecumenical Services


OPERATIONAL MANUAL

142 | P a g e


EMPLOYEE HEALTH AND WELLNESS ASSESSMENT

Health and Wellness Program Present Absent

Operational Non-Operational,

Why Why

Retreat/Recollection

Other Religious Activities

Facilities

Medical Clinic with competent

Staff

Dental Clinic with competent

Staff

Potable Water Supply

Sanitary Employee's Canteen

with quality food and service

Separate, clean and hygienic

rest rooms for men and women

Gym

Proper office ventilation

Proper lighting and emergency

power

Library

Proper waste disposal and

segregation

Facilities for the physically

challenged

Ecumenical chapel

fire exits

functional safety devices for

emergencies

elevator


OPERATIONAL MANUAL

143 | P a g e


Prioritized Gaps and Proposed Interventions

Organizational

Prioritized

Gaps Targets

Deliverable

s

Expected

Benefits

Resource

Requirement

/ Budget

Per

iod

Guiding

law/Policies

HR Competency

Prioritized Gaps Targets Deliverables Expected

Benefits

Resource

Requirem

ent/

Budget

Period

Guiding

law/Poli

cies

Water Meter

Test Training Workshop and Reliever

Training

and 2014 EO 292

Bench and

Water and

actual

operation/ in case

seminar

fees

Meter

Calibration Seminar Trade Test of emergency


OPERATIONAL MANUAL

144 | P a g e

MONITORING AND EVALUATION MECHANISM

This is a crucial and indispensable support mechanism of the Agency Strategic HR Plan. It

shall be used to evaluate whether the Strategic HR Plan is contributing to the attainment of

the objectives of the Agency

Impact:

Component 1 Component 2 Component 3

Learning and Health and HR Mechanism

Development Wellness

Outcome/s Performance Base Active and alert

Enhance the

functionality

Management workforce and effectiveness of all

personnel mechanism

Output/s Policy guidelines on Program for Health

Complete

implementation

performance base and Wellness, of personnel

management Spiritual enrichment mechanism

Guidance and

counselling

Activity/ies

Installation of

performance

management

guidelines (SPMS

and HR Plan)

Complete medical

check-up, sportsfest,

counselling and legacy

program

Employees orientation

on Personnel

Mechanism and other

personnel programs


OPERATIONAL MANUAL

145 | P a g e

SKWD Communication

Plan

Goal

Target

Audience Objectives Medium

Desired

Results Timeline Lead office

CAREER PATHING GUIDELINES

FOR SULTAN KUDARAT WATER DISTRICT

(as adapted from proposed Career Pathing Guidelines for the Philippine Civil Service)

I. Concept:

1. The Human Resource (HR) is the most valuable asset that helps in

the realization of the organization’s vision, mission, values and goals.

2. The advent of globalization, advances in technology, knowledgebase

economy, and increasing demand for ethical and effective

public service demand a continuing supply and progression of quality

HR in the public service.

3. Upgrading of/transforming HR responds to these challenges.

4. Creating a path which reconciles organizational thrusts and individual

aspirations is the key.

II. Legal Bases

E.O. 292, Rule VIII – Career and Personnel Development

Section 1. Every official and employee of the government is an asset

of resource to be valued, developed and utilized in the delivery of

basic services to the public. Hence, the development and retention of

a highly competent and professional workforce in the public service

shall be the main concern of every department or agency.

Every department or agency shall therefore establish a continuing

program for career and personnel development for all agency

personnel at all levels, and shall create an environment or work

climate conducive to the development of personnel skills, talents and

values for better public service.

Section 2. Each department or agency shall prepare a career and

personnel development plan which shall be integrated into a national

plan by the Commission which shall serve as the basis for all career

and personnel development activities in the government. The Career

and Personnel Development Plan shall include provisions on merit


OPERATIONAL MANUAL

146 | P a g e

promotion, performance evaluation, in-service training; overseas and

local scholarships and training grants; suggestions, incentive award

systems, provisions for welfare, counseling, recreation and similar

services; and other human resource development interventions such

as on-the-job training, counseling, coaching, job rotation, secondment,

job swapping and others.

V. TEMPLATE ON SUCCESSION PLANNING PROCESS

Process Steps

1. Organizational Diagnosis Based on thrust of the organization, conduct the

following activities

Inventory of competency requirements

of the organization

Profile personnel competencies

Identify critical/ target position

(Supervisory, managerial and executive

position)

Prioritize target positions based on

current and future needs of the

organization

Identify required competencies

2. Analyze Gaps Match competencies vs. needs

3. Create Pool of High Potential

Successors (HPS)

Talent Inventory

Determine additional required

competencies

Build potential successor’s profile

4. Develop Succession strategies Develop succession strategies

1. Selection strategies

-Performance and potential

2. Retention strategies

-Talent Pool

3. Development/Learning strategies

-Leadership Training

-Designation

-Job Enlargement

-Accelerated executive

development program

-Coaching and mentoring

-Assessment and feedback

-Project Management


OPERATIONAL MANUAL

147 | P a g e

-Knowledge Management

-Community attachment

5. Enabling Mechanisms - Mentoring and coaching

- Performance Management and

monitoring

- Competent HRMP in the

organization

- Management Support

- Supportive work environment

6. Monitor and Evaluate - 360 degree feedback (Supervisor,

peer, concessionaire, public)

Priority Position for succession and competency requirements

Target positions Competency

Supervisory

Managerial

Strategic Management

Planning and coordination

Directing

Coaching

Leadership

(Qualities):

- Ethical and Accountable

- Creative, Innovative

- Visionary, Global Perspective

- Adaptable, Flexible, resilient

- Persevering

- Committed, Passion for work

- Effective communication skills

VI. RESPONSIBILITIES OF HUMAN RESOURCE MANAGEMENT

PRACTITIONER IN SUCCESSION PLANNING

1. The HRMP shall be responsible for the preparation of Agency Succession

Plan.

2. The following process shall be undertaken in the development of the plan.

Based on the organizational needs, the HRMP shall:


OPERATIONAL MANUAL

148 | P a g e

a. Identify critical/target positions and competency requirements

b. Prepare list of potential candidates for validation of Office heads,

c. Assess existing competencies and the higher competencies required of

the position to be succeeded;

d. Create a Pool of Highly Potential Successors to include (5 year forecast of

succession):

et Position

VII. SUCCESSION PLAN WORKSHEET

Validated by:

____________________

Department Manager

____________________

Head of Office


OPERATIONAL MANUAL

149 | P a g e

ENHANCED PRE-RETIREMENT GUIDELINES

IN THE SULTAN KUDARAT WATER DISTRICT

(As adapted from the Enhances Pre-Retirement Guidelines in the Philippine Civil Service)

I. CONCEPT

1. Looking at the spectrum of human resource management, emphasis on

development is given from entry to the middle stage of one’s career in an

organization.

2. The development of human resources, particularly at the public sector should

be a continuing process given the demands of public service delivery. It

should not stop however, at the years preceding retirement.

3. A look at development interventions provided to different levels and stages of

a civil servant’s working life in the government service are few if at all

available to prospective retirees.

4. This is also true with respect to giving rewards and recognition to them.

5. It is thus indispensable in Valuing HR and Transforming HR in government

that an ultimate Pre-Retirement Program is in place.

II. Legal Bases

1. Rule VIII of the Omnibus Rules Implementing Book V of Executive Order

292:

“SECTION 1. Every official and employee of the government is an

asset or resource to be valued, developed and utilized in the delivery

of basic services to the public. Hence, the development and retention

of a highly competent and professional workforce in the public service

shall be the main concern of every department or agency.

x x x

“SECTION 7. In establishing a continuing program for the

development of personnel, each department or agency or local

government shall:

x x x

(b)Design, implement and evaluate-in-service training and

development programs solely or in coordination with the Commission

and/or other government agencies and institutions. Such programs

shall include the following:

x x x

Pre-retirement Program – refers to courses which are intended to

familiarize would-be retirees on the government retirement plans and

benefits as well as available business opportunities or other

productive options/pursuits.


OPERATIONAL MANUAL

150 | P a g e

x x x”

2. Memorandum Circular (MC) No. 23 s. 1993, enjoins agencies to adopt

the Pre-Retirement Program for Government Officials/Employees all as its

conduct. Said MC also states that all officials and employees planning to

retire shall have undertaken a Pre-Retirement Course 1-2 years prior to

their retirement.

3. Memorandum Circular (MC) No. 07, s. 1998 enjoins all heads of

departments and agencies to adopt the “SALAMAT-PAALAM” Program

in honor of or in recognition of the contributions of retiring officials and

employees in their respective agencies. (This was later on coined as

“SALAMAT-MABUHAY”).

It may be noted that these initiatives implementing existing rules on HRD

specifically Pre-Retirement pertain to training and a ceremonial Program only.

III. THE CURRENT PRE-RETIREMENT PROGRAM

The existing Pre-Retirement Program referred to in CSC MC No. 23 is

called the Pre-Retirement Innovations and Options for Results or PRIOR.

The PRIOR aims to enable the participants to increase knowledge,

skills and abilities in pursuing a happy retirement life. The Pre-Retirement

Program Model has four (4) major parts as follows:

Part 1: Appreciation of the Importance of Active Mental Attitude

About Retirement and Staying Fit and Healthy.

Part 2: Overview on Retirement Benefits, Retirement Law,

Policies, Issuances, GSIS Retirement Document

Procedures, Terminal Leave and other Requirements for

Retirement.

Part 3: Enterprise Planning and Management Options,

networking for government financial assistance, and

discussions on various income generating alternatives to

augment retirees’ income.

Part 4: Preparation of Business Plan and Networking.

IV. THE PROPOSAL

1. The PRIOR and the “SALAMAT-MABUHAY” Programs shall comprise

part of the Pre-Retirement Program and may be availed/offered at any

point of the Pre-Retirement Program

a. These programs are Included as assistance to the would-be

retirees.


OPERATIONAL MANUAL

151 | P a g e

b. Institutionalize a program through which retirees may still be

gainfully employed such as the following:

facilitation, mentoring, counseling

, e.g. painting, writing and

Publishing

2. Identify a pre-retiree’s concerns and the agency’s corresponding

appropriate interventions which include but are not limited to the

following:

Areas of concern Strategies/Interventions

Areas of concern Strategies/Interventions

A feeling of uncertainty of the future

- waning of confidence and self-esteem Counseling (emotional and mental

preparedness of the employee)

Pursuit of a rewarding hobby

Lifestyle coaching

Spiritual upliftment

Community service

Social networking

Volunteer work

Employability Specialized training program

- Second career skills training

Financial security Coaching on managing finances

Entrepreneurial Seminar/Training

Health and Wellness Gradual reduction of stressful work

Detox Program

Responsible Staff: HRMP

3. An employee 2-3 years prior to retirement shall be asked to

prepare an Individual Pre-retirement Plan (IPP)

Responsible Staff: The concerned employee

4. Supervisor assesses the concerned employee’s IPP and together


OPERATIONAL MANUAL

152 | P a g e

with the employee prepares an Action Program.

(Sample/model Pre-Retirement Program Worksheet attached)

Contents of the Individual PRP Worksheet:

Current Concerns Strategies/Interventions Provider

Competencies (internal/external)

Responsible Staff: Supervisor and Concerned Employee

5. The HRMP monitors and evaluates the implementation of the

Program and recommends appropriate action to top

management.

Responsible Staff: HRMP

6. Other SKWD Retirement Program

Sultan Kudarat Water District Provident Fund Program

Operational with its approved Constitution and by-laws

SKWD Policy no. 03,s-2011

(Salamat, Paalam and Pabaon for the retirees)

Operational: With standing policy and guidelines

Objective - to establish a financial assistance program for the retirees as a

pabaon in gratitude for the services rendered to SKWD and as a member

of SKWD Family.

V. Enabling Support Mechanisms:

a. Policy

b. Fund Support

c. Leadership and Peer Support

d. Mentors, Coaches, Counselors

e. Wellness Program

f. Competent HRMP


OPERATIONAL MANUAL

153 | P a g e

Pre-Retirement Program Worksheet:

Name of Employee:_____________________________________

Position:______________________________________________

Retirement Plans Competencies

Required

Interventions Provider

(Internal/External)

Discussed with:

_______________________

(Supervisor)

Noted by:

_________________________

(Agency HRMP)


OPERATIONAL MANUAL

154 | P a g e

RECRUITMENT, SELECTION AND PLACEMENT

I. Basic Policy:

The Sultan Kudarat Water District in its pursuit of meritocracy and excellence in

Human Resource Management adopts a comprehensive Policy on Recruitment,

Selection and Placement that will serve as a guiding principle in the hiring and

placement of the most qualified and competent applicant/employee for the position

and strictly adhere to the merit and fitness principle.

There shall also be an equal employment opportunity for men and women at all

level of position in the agency, provided they meet the minimum requirements of the

position to be filled. There shall also be no discrimination in the selection of employees

on account of gender, age, civil status, disability, religion or ethnicity.

OBJECTIVE:

1. To establish a standard procedure in the selection and promotion process

characterized by strict observance of the existing Civil Service laws, rules and

regulations,

2. Create equal opportunities for advancement to all qualified and competent

employees in Sultan Kudarat Water District, and

3. Provide a guide for any protest against employees’ promotions.

SCOPE:

This Manual on Recruitment, Selection and Placement shall apply to all qualified

applicants/employees for all the position in Sultan Kudarat Water District.

DEFINITION OF TERMS:

Recruitment - the process of identifying and hiring the best qualified candidates from

within or outside the Sultan Kudarat Water District.

Selection- a systematic method of determining the merit and fitness of a person on the

basis of qualification and ability to perform the duties and responsibility of the position.

Promotion – The advancement of an employee from one position to another with an

increase in duties and responsibility as authorized by law usually accompanied by an

increase in salary. The promotion may be from one department or agency to another, or

from one organizational unit to another within the same agency.

Qualified Applicants – refers to a person who applied for a vacant position and meets

the minimum qualification requirements of the position.

Superior Qualification- refers to outstanding relevant work accomplishments,

educational attainment and training appropriate for the position to be filled. It shall


OPERATIONAL MANUAL

155 | P a g e

include demonstration of exceptional job mastery and potential in major areas of

responsibility.

Next in Rank Position- Refers to the lower position in the hierarchy of position in the

agency with reference to the System of Ranking and Promotion (SRP)

Qualified Next in Rank- An employee appointed on a permanent basis to a position

previously determined to be next-in- rank to the vacancy proposed to be filled and who

meets the requisites for appointment thereto as previously determined by the

appointing authority.

System of Ranking Position- the arrangement of positions from highest to lowest, which

shall be guided in determining which position is next in rank taking into consideration

the following:

1. Organizational Structure

2. Salary Grade Allocation

3. Classification and functional relationship of the position

4. Geographical Location

Personnel Selection Board- A duly constituted body assisting (recommendatory) the

appointing authority in the judicious and objective recruitment and selection of

personnel for appointment in the career service whether original, reemployment,

reinstatement, or promotion according to existing Civil Service Laws and rules and

previously determined evaluation criteria.

Appointing Authority- the Head of Office authorized by law to make appointments in

the Philippine Civil Service.

PROCEDURES:

Policies:

1. It covers only first and second level positions as prescribed by CSC and DBM

under the Index of Occupational Services.

2. Vacant position to be filled shall be published in CSC Bulletin of Vacant Position

in Government or newspaper of wide circulation or SKWD Website and post in

three (3) conspicuous places in SKWD (bulletin Board) for at least 10 calendar

days. If the published position was not filled within six months it should be re-

published.

The following position are exempted from publication requirements

- Primarily confidential position

- Position which are policy determining


OPERATIONAL MANUAL

156 | P a g e

- Highly technical position

- Co-terminous with the appointing authority and

- Position to be filled by existing regular employees in the agency in case of re-

organization or re-categorization.

3. Whenever a vacant position is to be filled, the employees in SKWD who occupy

position deemed to be next in rank based on SRP and a person occupying a

position in an acting capacity to the vacant position shall be considered for

promotion. They shall have the first call upon promotional opportunities and

should be notify. Other employees within or outside of SKWD who apply for the

vacant position shall also be considered.

4. The SKWD Personnel Selection Board (PSB) shall conduct preliminary evaluation

of qualification of all candidates through paper screening. For this purpose,

competent and qualified employees/applicants shall refer to those who meet the

civil service eligibility and minimum education, experience, and training

requirements of the vacant position to be filled whose performance for the last 2

rating period shall be very satisfactory and above if the applicants are all from

within and have no disqualifications for promotion due to administrative

offenses and pendency of administrative case. Qualified employees/applicants

shall be notified as soon as possible and be posted for at least 3 days at SKWD

Bulletin Board.

5. Those found qualified shall undergo further assessment such as online

examination on IQ, Competency, Risk Profile and EQ battery test and the PSB

interview.

6. Qualified applicants shall be further rated on the following dimensions

7. The Personnel Selection Board, through the Human Resource Practitioner shall

submit the comparative assessment to the General Manager as appointing

authority, and in the exercise of sound discretion shall select from among the

top five (5) ranking screened applicants the appointee to the vacant position

through its final interview.

8. A background Investigation (BI) must be carried out to the top five applicants.

9. The appointing authority may select any one among the top five (5) even not

next in rank employee. In case the qualification is comparatively at par, the

appointing authority could be guided giving preference to the employee in the

unit where vacancy is. If they are on the same office the principle of seniority

may be used.

10. Appointee shall be notified on the outcome of the hiring.

11. A notice shall be posted in SKWD bulletin board announcing the appointment of

an employee a day after the issuance of the appointment for at least 15 days.

Date of posting should be indicated in the notice.

12. In case of promotional appointments the following conditions shall apply:

- An employee may be promoted or transferred to a position which is not

more than three (3) salary pay or job grades higher than the employees’


OPERATIONAL MANUAL

157 | P a g e

present position except in very meritorious cases, such as if the vacant

position is next in rank as identified in the SRP approved by the head of the

agency, or lone entrance position indicated in the agency staffing pattern.

- An employee who is on local or foreign scholarship or training grant or on

maternity leave may be considered for promotion,

For this purpose, the performance ratings to be considered shall be the

rating immediately prior to or after the scholarship or training grant or

maternity leave.

If promoted, the effectivity date of the promotional appointment shall be

after the scholarship or training grant or maternity leave.

- Promotion within six months prior to compulsory retirement shall not be

allowed except as otherwise provided by law.

COMPOSITION OF PERSONNEL SELECTION BOARD

1. Department Manager of Administrative and Finance Department-

Chairperson

2. Highest HR Practitioner – Member

3. A representative of Department where the vacancy is- Member

4. Two representatives from SKWDEU for the first level and second level-

Member

The first level will sit during the screening of the first level position and the

second level will sit during the screening of the second level position.

PROCEDURES ON FILLING UP VACANT POSITION:

1. The department Head/OIC shall request for the filling-up of vacant position using the

PSB request form duly signed by the budget officer and approved by the Appointing

Authority.

2. The Human Resources Practitioners of this office shall publish the vacant position at

the CSC Bulletin of Vacant Position or SKWD Website, or News Paper of wide circulation

and post it at 3 conspicuous places in SKWD at least for 10 calendar days. Notification

shall be serve to the next-in-rank or those occupying in acting capacity to the vacant

position within the period.

3. After the lapse of ten calendar days from the date of publication the Human

Resources Practitioners of this office shall prepare a list of aspiring candidates who

submitted their application letters for the vacant position, either from within or outside

the SKWD, including the next-in-rank employees and those occupying in acting capacity

to the vacant position in the promotional line up/comparative qualification using the

minimum requirement of the position under the Qualification standard set by CSC. If the

applicants are all from within, performance for the last 2 rating period will be included.


OPERATIONAL MANUAL

158 | P a g e

4. The SKWD Personnel Selection Board (PSB) shall conduct preliminary evaluation of

qualification of all candidates through paper screening to qualify or disqualify

applicant’s base on the minimum qualification set using the documents submitted by

the applicants and the promotional line-up/comparative qualification from the Human

Resource Practitioner. Applicants must be free from disqualification for promotion or

appointment in the Civil Service (DIBAR).

5. Qualified employees/applicants shall be notified as soon as possible and be posted for

at least 3 days at SKWD Bulletin Board. Schedule of online examination/skill test and

interview shall be included.

6. Those found qualified shall undergo further assessment such as online examination

on IQ, Competency, Risk Profile and EQ battery test and the PSB interview as schedule.

7. PSB en banc shall rank the candidates on the basis of the candidates comparative

evaluation form using the systematic assessment.

8. The Personnel Selection Board, through the Human Resource Practitioner shall submit

the comparative assessment to the General Manager as appointing authority, and in the

exercise of sound discretion shall select from among the top five (5) ranking screened

applicants the appointee to the vacant position.

9. Background Investigation must be carried out by the Human Resources Practitioners

of this office on the top 5 applicants before a final Interview and to be submitted to the

Appointing authority as a guide for its final selection.

10. The Appointing Authority shall assess the merits of the PSB recommendation and

select applicants he deems best qualified for the position in having the Final Interview.

11. The Appointing Authority then issue a Notice of Appointing Authority’s Action

address to the PSB thru the HR Practitioners.

12. The Human Resources Practitioners of this office shall prepare the appointment of

the selected candidates in accordance with the provision set forth by the CSC.

13. The HR Practitioners shall post a notice announcing the appointment of the

employee for at least 15 days at SKWD Bulletin Boards a day after of the affectivity date

of appointment.


OPERATIONAL MANUAL

159 | P a g e

ROLES AND RESPONSIBILITIES:

Human Resource Practitioner

1. Shall publish and disseminate vacancies in Sultan Kudarat Water District through

publication and posting.

2. Receive application letter, conduct and lead preliminary screening of the

qualification of applicants together with PSB.

3. Serve as secretariat on all PSB activities.

4. Inform applicants of the results of PSB screening and schedules.

5. Set and facilitate PSB interview and screening for qualified applicants.

6. Administer the online examination for applicants.

7. Prepare the comparative assessment for Appointing Authority appropriate

action.

8. Conduct Background Investigation of 5 top qualified applicants.

9. Prepare appointment of the appointee and post notice of personnel action.

10. Orient appointees specially the new entrance to SKWD.

11. Keep, maintain, and secure all records and other pertinent documents relative to

the recruitment, selection and promotion process.

Applicants:

1. Submit application letter at SKWD Human Resource Practitioner or through

online submission via SKWD website or email address together with the required

supporting documents. Letters should be address to the General Manager.

2. Undergo the prescribed PSB screening process of SKWD.

Department /Division Heads:

1. Request the filling up of the vacant position in their office.

2. Inform their personnel of any vacancies and encourage them to apply.

3. Make appropriate assessment of applicants potential.

4. Sit as a member of the PSB when the vacancy is from their office.

Personnel Selection Board:

1. Conduct screening and interview of qualified applicants.

2. Recommend to the Appointing Authority in the candidates for selection

3. Review and sign the final comparative assessment to be submitted to the

General Manager.

Appointing Authority:

1. Conduct Final Interview of the top 5 applicants.

2. Select from among the top 5 applicants.

3. Inform the Human Resource Practitioner of the chosen applicants to be hired

through the notice.


OPERATIONAL MANUAL

160 | P a g e

4. Sign the appointment papers of the employee who have been hired or

promoted.

Application Requirements:

1. Application letters or letter of intent for the interested next in rank employees. If

not interested, next-in-rank employee shall submit a waiver.

2. Walk-in applicants and next-in-rank employees shall submit their application

letters to the HR Practitioner of this office. Letters should be address to:

ENGR. JOSE D. TABUGA, JR.

General Manager


Tacurong, City

3. Applicants may also submit their application online through SKWD website or E

mail Address.

4. Submit required Documents in Xerox copy but still required to present original

copies.

Updated Form 212 (Personal Data Sheet)

Certificate of Eligibility/PRC license, if any.

Transcript of Records, Diploma or form 138.

Certification of Masters Unit earned, if any.

Certificate of trainings/seminars attended, if any.

Service Records, if any

IPCR for the last 2 rating period (for government employee).

Proof of relevant experience.

Protest

1. Who may protest?

Only officers and employees who are qualified next-in rank on the basis of the

approved SRP may file a protest against an appointment or promotion or the

SKWDEU through a formal letter of complaint endorse by SKWDEU Officers, only

on the account of violation of existing Collective Negotiating Agreement (CNA).

2. The protest must be submitted on the official form. The aggrieved party shall be

called the “Protestant” and the appointee, the “Protestee”.

3. Where the General Manager after evaluation finally decides in favour of the

protestant, the protestee who decides to file his appeal for reconsideration shall

be the “Protestant Appelee.”

4. The protestant shall identify his/her present position and the contested position.

Shall state clearly the grounds for his/her protest and the reason why he/she


OPERATIONAL MANUAL

161 | P a g e

believes that he/she should be the one to be appointed to the contested

position. In case of the Employees Union, the specific CNA violation.

5. Protest should be filed within the prescribed period of 15 days from the posting

of notice of appointment.

6. Failure to file protest within the prescribed period shall be deemed a waiver of

one’s right and no protest shall thereafter be entertained. The decision of the

General Manager shall become final.

PROCEDURE IN FILLING PROTEST:

1. The aggrieved party shall file his/her protest directly to the General Manager

within fifteen (15) days from the date of notice of issuance of an

appointment has been published using the prescribe form.

2. The General Manager shall decide the case within (30) days from the receipt

of the protest or may refer the protest to a person or group of persons to

assist him in evaluating the protest.

3. The constituted body assigned to study the protest shall within (15) days

from receipt thereof evaluate the reasons presented by the protestant and

submit in writing to the General Manager its findings and recommendation.

The General Manager shall decide within (15) days on the protest.

4. A copy of the decision of the General Manager shall be furnished the official

or employee affected through the Human Resources Practitioner.

5. If the aggrieved party is not satisfied with the decision, he/she may elevate

his/her protest to the Civil Service Commission within (15) days from receipt

hereof.

This manual on Recruitment, Selection and Placement shall take effect upon

approval and remain enforced until revoked by competent authority.

Approved:


General Manager

Date:_________________________


OPERATIONAL MANUAL

162 | P a g e

Request for Filling up of Vacant Position

•Department Head/OIC shall Request for the filling up of vacant position.

Posting of Vacant Position

•HR Office shall publish the vacant position at the CSC office and will post the vacancy for at least 10 calendar days.

Application

•Submission of Resume/PDS, Application Letter & other pertinent documents

Filling up of promotional line-up

•HR Office shall prepare a list of aspiring candidates for comparative qualification.

PSB Evaluation

•SKWD Personnel Selection Board shall conduct preliminary evaluation of applicants based on the minimum qualification set.

Posting of Qualified Applicant

•List of Qualified Applicants shall be posted and informed for further details.

Pre-Employment Testing

•Administering of Psychological Tests particularly: I.Q/Aptitude, Industrial Personality Test.

Panel Interview

•Qualified applicants shall be interviewed by the Personnel Selection Board

•List of applicants who passed the interview will be posted for at least 3 days

Background Investigation

•Background Investigation shall be carried out by the HR personnel for the top 5 applicants before a final interview.

Final Interview

•The Appointing Authority shall assess the merits of the PSB recommendation and selects applicant he deems fit for the position.

Issuance of Notice of Appointing Authority

•The Appointing Authority then issues a Notice of Appointing Authority's Action addressed to the PSB thru the HR Office.

Preparation of Appointment

•HR Personnel shall prepare the appointment of the selected candidate in accordance with the provision set forth by the CSC.

Notice of Appointment

•HR Personnel shall post notice announcing the appointment of the employee for atleast 15 days a day after the effectivity date of appointment.

Orientation

•Selected Applicant shall undergo an Orientation on the Job functions and Policies of SKWD.

Pre-employment submission of other needed requirements and Medical Exam.

•Selected Applicant shall undergo medical examination and submit other pertinent documents

First Day of Work

Flow Chart of Selection & Hiring


OPERATIONAL MANUAL

163 | P a g e

SKWD LEARNING AND DEVELOPMENT MANUAL

Introduction:

The SKWD Learning and Development Manual will incorporate governance,

policy and procedural guidelines, planning and training operations.

Rationale:

Evaluating existing training records show that some employees have undergone training

that had nothing to do with their actual functions within the organization, nor any

significance to their career paths. However, these trainings are more on the general

trainings offered to government employees by the Civil Service Commission, mostly are

walk-in trainings.

About the Manual

This manual is all about the learning and development system of Sultan Kudarat Water

District. This aims to permanently improve the Skills, Knowledge, and Attitude of

Employees both technically and vocationally.

The Human Resource office plays a very important role in the organization. As with any

other organization, SKWD can function more effectively and efficiently if it operates

with well managed training and development system and well-trained staff.

Training is supplied a variety of providers, including national and/or regional bodies and

local training providers. This training is often of a routinely nature, some are designed to

introduce national practices or regulations. There is a limited training that was designed

in-house in response to assessed and verified skill development needs. In some cases,

training is provided to an employee as need arises.

INDIVIDUAL DEVELOPMENT PLAN

The Individual Development Plan (IDP-See Appendix A) is a tool used as a part in

assisting employees achieve their short and long term personal and career goals, as well

as to improve their current job performance. This give emphasis to discussion and joint

decision by the employee and supervisor, with input from mentoring and coaching, on

the specific developmental experiences necessary to fulfill the mutual goals of individual

career development and organizational enhancement.

TRAINING NEEDS ANALYSIS

Training Needs Analysis Template (See Appendix B). The TNA serves as a tool to evaluate

the training needs of the employees based on their specific job functions or on their

occupational grouping as a whole. Effective training or development depends on

knowing what is required - for the individual, the department and the organization as a

whole. With limited budgets and the need for cost-effective solutions, all organizations

need to ensure that the resources invested in training are targeted at areas where


OPERATIONAL MANUAL

164 | P a g e

training and development is needed and a positive return on the investment is

guaranteed. Analyzing what the training needs are is a vital prerequisite for any

effective training program or event. Simply throwing training at individuals may miss

priority needs, or even cover areas that are not essential. It involves:

• monitoring current performance using techniques such as observation,

interviews and questionnaires

• anticipating future shortfalls or problems

• Identifying the type and level of training required and analyzing how this can

best be provided.

TNA enables organizations to channel resources into the areas where they will

contribute the most to employee development, enhancing morale and organizational

performance.

After evaluating and determining the training needs of the employees; it will be

submitted to the Personnel Development Committee for further evaluation and

recommendation and approval. Upon Approval, employees will be subject to undergo

training in accordance to their needs. The trainings are mostly walk-in as offered by the

Civil Service Commission and other Certified Regional Training Centers.

When there is no offered training that suits the training needs of the employees, In-

house training is conducted.

POST TRAINING EVALUATION AND MONITORING

After undergoing the training, the Human Resource Office checks to see if an employee

can apply what he/she learned, nor is there a concerted effort to share what has been

learned via echo training, peer teaching or coaching.

The success or applicability of training activities in an organization is evaluated,

validated or monitored through the Learning Application Form (LAP Form-See Appendix

C). It consists of the Learning Goals; Current status; Learning Strategies; Required

Resources; and Key Performance Indicators.

Learning goals include the skills, knowledge, and attitude required to achieve

competency target. This target should also be simple, measurable, attainable, realistic

and timely. The current status on the other hand includes what level of skills knowledge

and attitudes the trainees have with respect to the learning goal. Reaching the learning

goals will then be provided in the Learning strategies section. Required resources

include the resources needed to achieve the learning goals. Finally, The Key

Performance Indicators comprise how trainees can demonstrate to themselves and

others that they have achieved those learning goals.


OPERATIONAL MANUAL

165 | P a g e

Employee/Supervisor

• (Coaching and Mentoring)

• Individual Development Plan will be discussed by the employee and supervisor for the short

and long term personal and career goals

HR Office

• Training Needs Analysis to be conducted by the Training and Development Officer to each employee.

Personnel Development Committeee

• Evaluation, Recommendation upon Approval of the General Manager

Employee

• Actual Training based on the Training Needs Analysis

Employee/Supervisor

• (Coaching and Mentoring)

• Post-training evaluation and monitoring will be administered through the use of Learning Application Form to determine the progress in Knowledge, Skills, and Attitude.

Coaching and Mentoring

The LAP Form will also serve as a guide for an appraisal question to be given the section

or Department head and can be incorporated to the mentoring and coaching system.

Flow of SKWD Learning and Development System

This Learning and Development Manual shall take effect upon the approval of the

General Manager.

Approved:

ENGR. JOSE D. TABUGA, JR. CE, MPA

General Manager


OPERATIONAL MANUAL

166 | P a g e


OPERATIONAL MANUAL

167 | P a g e


OPERATIONAL MANUAL

168 | P a g e

MEMO # 8, s-2016

May 17, 2016

MEMORANDUM ORDER

TO: ALL SULTAN KUDARAT WATER DISTRICT EMPLOYEES

SUBJECT: GUIDELINES ON THE FILING OF APPLICATION FOR LEAVE OF

ABSENCE

Although the Omnibus Rules on Leave have laid down the implementing rules and

regulation on leave administration, there have been reported cases of circumventing

thereof, such as an employees are proceeding with their leave of absence without prior

approved leave or without a notice to concern heads about their leave or the reason for

leave is not factual, doubtful or not in proper circumstances. Such practices are

considered inimical to public service and not in accordance with the philosophy behind

the granting of such a leave. To protect the interest of the public service the following

guidelines are hereby issued for the granting of application for leave.

1. Five days Force Leave/Vacation Leave:

1.1 Submit a schedule of force leave for the year for the undersigned approval

on or before January 15, of every year.

1.2 All scheduled force leave once approved is final unless cancelled due to

exigency of service; have a written notice approved by the undersigned for

the re-scheduling of force leave; If the accumulated vacation leave is less

than ten (10) days He or she has the option to go on force leave or not.

However official and employees with accumulated vacation leave of 15 days,

who availed of monetization for 10 days under section 22 of omnibus rules

on leave, shall still be required to go on force leave.

1.3 Although you have an approved schedule of force leave, you are still required

to file for approval of your force leave using the form 6 or leave application

form at least 1 day before the scheduled leave but best if filed in advance or

whenever possible five (5) days before going on such leave.

1.4 Application for Vacation leave not exceeding 30 days shall follow item 1.3

prescribe period of filing.


OPERATIONAL MANUAL

169 | P a g e

1.5 However in case of emergency and need an immediate attention of the

employee aside from reason of sickness, you can file your vacation leave on

the day of such a leave provided you have to report to office in complete

uniform first hour in the morning and file such leave whenever possible.

When circumstances would not warrant your physical appearance to file a

leave of absence on that day or coming days, you can personally call the

supervisor concern for him/her to be informed and proper disposition of the

job function be determine. Once granted by the supervisor the employee

must personally call the undersigned for approval of such leave. In case of

doubt, proof can be asked to support the claim. The supervisor must inform

the Human Resources Office of such a leave for proper recording.

Application for leave must be filed immediately (on the 1st day) upon return

to duty.

1.6 Any Leave of absence using the vacation/force leave without any approved

leave application before going to such a leave or have not immediately filed

upon return to duty under item 1.5 shall be considered unauthorized leave of

absence without pay, and their application will be disapproved outright.

2. Special Leave:

2.1 Special Leave should be filed for approval in advance 1 day before the

scheduled leave subject to the condition hereunder stated:

a. Personal Milestones such as birthdays/wedding/wedding anniversary and

other similar milestone, including death anniversary.

b. Parental Obligation such as attendance in school activities, first

communion among others where a child of SKWD employee is involved.

c. Filial obligation to cover the employee’s moral obligation towards his

parent and siblings for their medical and social needs.

d. Domestic emergencies such as sudden urgent repairs needed at home,

sudden absence of yaya or maid and the like.

e. Personal transactions to cover the entire range of transactions an

individual does with government and private offices such as paying taxes,

court appearances, arranging a housing loans etc.

f. Calamity, accident, hospitalization leave pertain to force majeure events

that affect the life, limb, and property of the employee or his immediate

family.


OPERATIONAL MANUAL

170 | P a g e

3. Sick Leave:

3.1 All application for sick leave of absence for one full day shall be made on the

prescribe form and shall be filed immediately (on the 1st day) upon employee’s

return from such leave. Notice of absence, however, should be sent to the

immediate supervisor and/or the undersigned. Application for sick leave in

excess of five successive days shall be accompanied by proper medical

certificate.

3.2 Sick leave may be applied for in advance in cases where employees will

undergo medical examination or operation or advised to rest in view of ill health

duly supported by a medical certificate.

3.3 In ordinary application for sick leave already taken not exceeding five days,

the supervisor may determine for recommendation purposes, whether or not

granting of sick leave is proper under the circumstances. In case of doubt, a

medical certificate may be required. In the event that the two parties would not

agree on the issue the General Manager may decide on the case.

3.4 In case of claim of ill health, the undersigned may authorize the immediate

supervisor to have a spot check on employees who are supposed to be on sick

leave. Those found violating shall be dealt accordingly by filing appropriate

administrative cases against them.

3.5 Sick leave application not immediately filed upon return to duty will be

disapproved and shall be considered unauthorized leave of absence without

pay.

4. Application for Indefinite leave, Study Leave, Paternity Leave, Rehabilitation

leave and other leaves not specified shall conformed with Omnibus rules on

leave.

4.1 Maternity Leave: in addition to the condition for the grant of maternity leave

already set in the Omnibus Rules on Leave, all women in SKWD are advice to

inform the office through letter on the first trimester of their pregnancy

supported with medical certificate for the office to be aware that anytime during

the pregnancy period maternity leave could be availed in special cases such as

miscarriage and other medical conditions relative to maternity aside from the

actual date of delivery.

5. Monetization of leave Credits:

5.1 Employees who have accumulated fifteen (15) days of vacation leave credits

shall be allowed to monetize a minimum of ten (10) days; Provided that at least

five (5) days is retained after monetization and provided further that a maximum

of thirty (30) days may be monetized in a given year.

5.2 Monetization of sick leave credits: 50% of accumulated sick leave credits may

be allowed for valid and justifiable reasons (as provided on leave laws) provided


OPERATIONAL MANUAL

171 | P a g e

twenty five (25) days sick leave credits remains after deducting the monetized

leave credits subject to the discretion of the agency head and the availability of

funds for the following reasons.

1. Health, medical and hospital needs of the employee and the immediate

members of the family.

2. Financial aid and assistance brought about by force majeure events such

as calamities, typhoons, fire, earthquake and accidents that affect the

life, limb and property of the employee and his/her immediate family.

3. Educational needs of the employee and the immediate members of

his/her family.

4. Payment of mortgages and loans which were entered into for the benefit

or which inured to the benefit of the employee and his/her immediate

family.

5. In cases of extreme financial needs of the employee or his/her immediate

family where the present source of income are not enough to fulfill the

basic needs such as food, shelter or clothing.

6. Other analogous cases as may be determined by the commission.

6. Other provisions:

6.1 An application for leave shall be properly cleared with the immediate

supervisor for recommending approval who shall determine the contingency

of the employee’s service before having it approved by the General Manager.

An employee who is absent without an approved leave or have incurred

unauthorized leave of absence shall not be entitled to receive their salary

corresponding to the period of his unauthorized leave of absence but this

absence shall not be deducted from their accumulated leave credits, if

there’s any.

6.2 An application for leave of absence for thirty (30) days or more shall be

accompanied by clearance from money and property accountabilities and

recommending approval of the supervisor and approval of the General

Manager.

6.3 All application for leave of absence for trips abroad including those which are

classified as all expense paid shall be submitted for the General Manager’s

approval of your trips and leave of absence.

6.4 In the application for leave of absence where the purpose or reason for such

leave is to seek employment in private or other government offices, either

inside or outside the country, such application shall be denied outright.

6.5 Employee shall be considered habitually absent if they incur unauthorized

absences exceeding the allowable 2.5 days monthly leave credits under the

Leave Law for at least three (3) months in a semester or at least three (3)

consecutive months during the year.


OPERATIONAL MANUAL

172 | P a g e

6.6 In case of trainings/seminars/conferences/symposium and the likes; for

practical reason, employees are authorized not to report to the office one (1)

day before and one (1) day after the

trainings/seminars/conferences/symposium and the likes on specified places

below. In case the first day falls on Monday, Friday will not be considered as

one (1) day before and if the last day falls on Friday the employee shall

report on Monday. In excess of the one (1) day before and one (1) day after it

will be charge to vacation leave/sick leave. In case the excess in days is due

to unavoidable circumstances outside the control of the employees or force

majeure events the same shall be authorized.

6.7 Places allowed to have a one (1) day before and after are the following:

Davao City and beyond (Case to case bases as determined by the

management)

Cotabato City and beyond (Case to case bases as determined by the

management)

Cagayan de Oro City and neighboring provinces

Zamboanga Peninsula

Outside of Mindanao Island

For outside the country it will depend on the time of travel (Departure and

Arrival)

6.8 To ensure that you have enough leave credits to avail the leave privileges and

your leave is in accordance with the policy, employees must secure first the

Certification of Leave Credits from the Human Resources Practitioner’s (HRP)

in charge of leave before having it approved by the recommending authority.

In case of Isulan and Esperanza sub offices, the recommending authority

must call the HRP in charge to reflect the leave credits in the form and have it

initials before signing the recommendation made. Personally have the

application for leave be approved by the head of the agency. HRP will be

calling every Divisions and sub offices daily to track employee’s attendance

and whereabouts for the locator chart.

6.9 Any problem that may arise from the leave application maybe settled at the

Human Resources Office in the first instance but if not settle on the HR level ,

the General Manager’s Office shall settle the issue.

6.10 Any misrepresentation made in the application for leave shall be ground for

disciplinary action.


OPERATIONAL MANUAL

173 | P a g e

7 Sanction:

7.1 Habitual Absenteeism

a. For the first offense- after due proceedings shall be meted the penalty of

six (6) months and one (1) day to one (1) year suspension without pay;

b. For the second offense- after due proceedings shall be dismiss from

service.

7.2 Simple Misconduct

a. 1st Offense –after due proceedings shall be meted the penalty of one

(1) month and one (1) day to six (6) months suspension without pay;

b. 2nd offense- after due proceedings shall be dismiss from service.

7.3 Violation of reasonable office rules and regulation

a. 1st offense- after due proceedings shall be meted the penalty of

Reprimand;

b. 2nd offense- after due proceedings shall be meted the penalty of one

(1) month and one (1) day to six (6) months suspension without pay;

c. 3rd offense – after due proceedings shall be dismiss from service

Effectivity- July 1, 2016

Strict compliance with the above is hereby enjoined.


General Manager


OPERATIONAL MANUAL

174 | P a g e


OPERATIONAL MANUAL

175 | P a g e


OPERATIONAL MANUAL

176 | P a g e


OPERATIONAL MANUAL

177 | P a g e


OPERATIONAL MANUAL

178 | P a g e


OPERATIONAL MANUAL

179 | P a g e


OPERATIONAL MANUAL

180 | P a g e


OPERATIONAL MANUAL

181 | P a g e


OPERATIONAL MANUAL

182 | P a g e

COMMERCIAL DEPARTMENT

A. GENERAL Commercial Operations pertain to the system and procedures in dealing with

customers and their bills. This system and procedures touch on the following aspects of the Sultan Kudarat Water District as water utility’s business. 1. Service Connection Applications 2. Customer Classification 3. Billing and Collection 4. Customer Complaints 5. Dealing with Delinquency Accounts 6. Improving Collection Efficiency 7. Marketing of service connection 8. Management of customers record 9. Management Reports

SERVICE CONNECTION APPLICATIONS

Before any installation of new service connection be made, the customer/concessionaire should adhere to the basic policies and guidelines of Sultan Kudarat Water District, thus a proper documentation be properly established for this purpose. Below are the basic contracts for the installation of new service connection.

1. Service Connection Application Order 2. Service Connection Agreement/Contract 3. Bill of Materials and other pertinent documents determine by the SKWD


OPERATIONAL MANUAL

183 | P a g e


OPERATIONAL MANUAL

184 | P a g e


OPERATIONAL MANUAL

185 | P a g e

The SKWD provides the water directly to each customer/ concessionaire through a metered connection, and bills them on a monthly basis , thus, the provision of a service connection agreement , memorandum of agreement and other documents in the water supply service implies a contract between two parties before any installations. This document establishes enforceable contractual obligations between the SKWD and the concessionaires, so either can take legal action in case of any breach of contract.

The detail flow of transaction for the installation of new service connection is shown below to wit:

FLOW CHART FOR THE INSTALLATION OF NEW SERVICE CONNECTION

CLIENT TO PAY INSPECTION FEE

TO THE CASHIER

ATTEND ORIENTATION AT 1:00 PM (DAILY)

CUSTOMER TO FILL UP APPLICATION FORM AT THE COMPLAINTS SECTION (Commercial Department)

COSTUMER TO PAY THE BILL OF MATERIALS AT THE CASHIER

COSTUMER TO SUBMIT OFFICE COPY OF THE VARIOUS DOCUMENTS FOR THE NEW SERVICE CONNECTION @ COMMERCIAL DEPARTMENT

FILING OF DOCUMENT INSTALLATION OF SERVICE

CONNECTION

FURNISH FINAL DATA TO

COMPUTER OPERATOR

APPLICATION FORM TO BE SUBMITTED TO NEW

CONNECTION IN-CHARGE FOR ACTUAL INSPECTION AND

ASSESSMENTS AND TO PREPARE THE ESTIMATE FOR

BILL OF MATERIALS AND OTHER DATA FOR THE NEW

SERVICE CONNECTION

POST INSPECTION AND SEALING OF INSTALLED SERVICE

CONNECTION (NRW DEP’T.)

Within the day of installation

PAYMENT OF LABOR FOR

INSTALLATION

TAKE PICTURE AS PART OF DOCUMENTATION

UPDATING OF MATERIALS AVAILABILITY AND COST

(GSO Storekeeper)

ENCODING OF NEW ASSIGNED

SERVICE ACCOUNT NUMBER


OPERATIONAL MANUAL

186 | P a g e

CUSTOMER ORIENTATION PROGRAM The SKWD practice to educate the customers on the mutual obligations between

themselves and SKWD, and the importance of complying with these obligations in order to ensure a reliable, sustainable, predictable supply of potable water every time a new connection is made thus, prior to activation, the customer should attend an orientation on the roles and responsibilities of both party. Basic guidelines of the SKWD are properly explained and questions were clarified such as:

a. Brief History of Sultan Kudarat Water District b. SKWD Service Areas c. The SKWD Facilities d. The Typical household connection e. The Service Connection Classification f. The SKWD Approved Water Rates Requirement g. How to compute Billing h. Service Connection Agreement i. Billing and Collection guidelines

The orientation program also serves as a public relation tool for the SKWD which is scheduled daily at exactly 1: 00 in the afternoon.

CLASSIFICATION OF WATER CUSTOMERS

Sultan Kudarat Water District concessionaires drawing water from the system are categorized into three (3) major types or classes for purposes of billing;

1. Residential and Government 2. Commercial/ Industrial 3. Bulk/Wholesale

These classifications are important because level III tariffs are different for each other category. In General, Commercial/Industrial users are billed 2 times the rate and Bulk connections 3 times the rate of Domestic users.

1. Residential / Domestic Persons and establishment drawing water from SKWD system for their

day to day needs are classified under this category. They are charged the lowest rate. Normally water usage includes cooking, washing, bathing, drinking and any other domestic use to sustain everyday life. Government offices and buildings are likewise classified under this category because they performed public service and the consumption is only in connection with the performance of their duties.

2. Commercial/ Industrial Persons and establishments drawing water from the system for use

directly or indirectly either to promote their trade or business or to produce sealable products are classified under the Commercial /Industrial category and should be charged accordingly.


OPERATIONAL MANUAL

187 | P a g e

3. Bulk/Wholesale

Persons and establishment drawing water from the system to resale without transforming it into new products are classified under the Bulk/Wholesale category. Included under this category are those providing water to carriers and to houses that are not connected directly to the system.

Below are the detailed classification and sub -classification of water customers adopted by the Sultan Kudarat Water District. (How do we classify your connection?)

SKWD assigned a Customer Account Number to each customer/concessionaire to permanently identify each service connection. The account number identifies each connection as to location (zone assignment), the size of water connection and its classification, and the customer number. An account number basically consist of 8 digits (000-00-000) with the following code, say:

011-12- 101 reads as: 011 - zone and book 12 - 1 means ½ connections 2 mean Residential Connection 101 - assigned sequence number in a particular zone


OPERATIONAL MANUAL

188 | P a g e

BILLING AND COLLECTION

A. Master List of Customers In order to keep track of existing account numbers and control the

number of customers in each Meter Reading Zone and Book, a master list of service connection is prepared and grouped according to zone. Concessionaires in each meter reading zone and book is numbered consecutively from number 001 taking into consideration potential concessionaires within the area including vacant lots, which will be reserved with a corresponding account number.

B. Meter Reading Service activities are best grouped to achieve a system in which meters

within a area can be read within the day. (Each meter reader assigned with 250 meters per day). The water meters are read on a monthly schedule. Aside from reading the water meters, the meter reader should take note of and report service defects, complaints from customers, and any infraction of utility rules.

C. Billing The SKWD will conduct reading and billing of service connection on

monthly basis in each service area on schedule dates. Water bills prepared for the concessionaires should be checked for completeness against the total number of connections shown in the master list of service connection. Any discrepancy should be investigated and rectified. Further, water rates and billing computation should also checked to determine if it’s in accordance with the approved water rates nor the water rates implemented is correct. Details of Billing Procedures are as follows: 1. Printing of Meter Reading Form ( per zone) 2. Actual Reading of individual water meter 3. Encoding of meter reading to BC 3 SYSTEM 4. Printing, Checking and approval of Meter Reading Proof list 5. Printing of Water Bills and its Billing Report


OPERATIONAL MANUAL

189 | P a g e

BILLING SYSTEM FLOW CHART

Completed water bills are forwarded to the Billing Supervisor for further checking, then to the bill deliverers for the distribution.

The SKWD uses the following reports for evaluation, accuracy and for reporting of billing activity of the commercial operation.

a. Water Bill/ Statement of Accounts

Billing Incharge - Manual Encoding/MRBCS downloading of Reading

- Printing of Reading Prooflist

Checking and approval of

Reading Proof list for billing by the supervisor with

notation/remarks and properly signed

Billing In-charge Printing of Bills

Quality Checking Of Printed bills by the Supervisor and

approval for distribution

Meter Reader - Submit reading to Billing

Incharge with proper recording on logbook.

- Water Bill distribution Double checking of any field

findings with proper documentation (Meter Reader)


OPERATIONAL MANUAL

190 | P a g e

b. Daily Billing Summary per Zone


OPERATIONAL MANUAL

191 | P a g e

c. Monthly Billing Report


BILLING REPORT - ADJUSTED

FOR THE MONTH OF DECEMBER 2015

ZONE RESIDENTIAL

PURE SEMI-

COMM'L SEMI-

COMM'L SEMI-

COMM'L BULK/ GOV'T. TOTAL BIILED

TOTAL BILLED INCREASE

COMMERCIAL A B C WHOLESALE ACCT. THIS

MONTH LAST

MONTH (DECREASE)

012 4,989.15 67,531.40 32,729.55 1,673.90 1,823.10

108,747.10 105,112.70 3,634.40

021 17,615.95 51,816.20 66,970.70 6,375.80 1,589.60

218.40 144,586.65 140,655.70 3,930.95

033 94,764.20

94,764.20 91,052.56 3,711.64

051 146,325.35

2,912.70

149,238.05 146,295.55 2,942.50

061 99,035.55 484.70 8,801.15

1,276.00

109,597.40 106,565.65 3,031.75

072 220,111.85 436.80 3,938.10

262.10 224,748.85 219,505.15 5,243.70

081 145,405.75 6,260.30

671.30

152,337.35 159,477.45 (7,140.10)

091 120,857.90

120,857.90 128,785.55 (7,927.65)

111 43,206.05

8,340.00

302.90

51,848.95 62,655.20 (10,806.25)

121 29,324.45

29,324.45 30,491.75 (1,167.30)

131 124,595.35 1,549.90

650.70 1,873.10

20,216.70 148,885.75 138,248.40 10,637.35

161 106,975.55 4,452.90 633.60 2,453.20 302.90

114,818.15 114,760.85 57.30

172 214,532.10 436.80 1,079.30

6,584.75 222,632.95 224,360.40 (1,727.45)

181 181,507.20 24,919.20 24,102.75 1,489.90 3,988.70

236,007.75 218,592.90 17,414.85

191 105,702.60 55,141.60 30,891.40 507.10

192,242.70 180,378.65 11,864.05

202 317,673.15 27,936.90 2,758.55

348,368.60 328,555.20 19,813.40

204 226,685.05 22,608.90 7,486.50 1,234.10 819.00

258,833.55 261,145.95 (2,312.40)

BILLING 1 2,199,307.20 263,575.60 190,644.30 14,384.70 12,646.60 - 27,281.95 2,707,840.35 2,656,639.61 51,200.74

BILLING 2 2,207,836.00 304,706.40 217,469.35 57,214.35 27,083.00

157,958.30 2,972,267.40 2,989,736.74 (17,469.34)

GRAND 4,407,143.20 568,282.00 408,113.65 71,599.05 39,729.60 - 185,240.25 5,680,107.75 5,646,376.35 33,731.40

TOTAL


OPERATIONAL MANUAL

192 | P a g e

d. Individual Customer Ledger Card

Encoded by: Checked by: Approved by: ____________________ __________________ RUDITO P. MUYCO, MBA

Department Manager


OPERATIONAL MANUAL

193 | P a g e

e. Meter Reading Prooflist


OPERATIONAL MANUAL

194 | P a g e

f. Meter Reading Prooflist

- Set up a parameters of 30% high and below average monthly consumption for further investigation.

The concessionaires shall be billed based on the prevailing water rate

duly approved through Public Hearing, adopted for implementation by the SKWD BOD and confirmed by LWUA Board of trustees, pursuant to the provision of PD 198, as amended. Payments from Customers/Concessionaires 1. As a rule, customers should pay only at the SKWD office where official

receipts shall be issued. There should be no collectors from SKWD going to individual customers.

2. Customer ledger Card should be maintained and regularly updated. Customers cannot be expected to keep records of their payments for long and there is no reason for the utility to have incomplete or un-updated records. As soon as payments are received, it should be posted to individual ledger card.

3. Collection of water bills in the office is scheduled on a specific dates during the month. The due date is indicated on the copies of the water bills for the customers’ information and as reference for the imposition of the penalty charges.

4. The bill should indicate the Penalty Charge for bills not paid on time. This will be added to and collected together with the amount of the outstanding bill.

5. An Official Receipt is issued when payment is made. 6. All daily collections are tallied with the official receipts issued and are kept in

a steel safe during the night. A daily collection summary is then made. The collection is then deposited in the bank on the morning of the next banking day.

Disconnections

1. The SKWD should set a reasonable but clear deadline for all customers to pay their dues. At the end of the deadline, the service should be disconnected, unless the debt is paid immediately. To prevent abuse and avoid setting precedents, no exceptions should be allowed. Charge a reasonable amount for re-connection. Be firm but fair.

2. A customer should be given sufficient notice before actual disconnection. 3. If payment after the due date has not yet been made, a second notice (the

first notice is the bill itself) clearly marked “DISCONNECTION NOTICE”, is sent. Such notice shall inform the customer of the deadline for the payment, the penalties or interest to be paid, manner of payment, and the fee for reconnection.


OPERATIONAL MANUAL

195 | P a g e

4. If the payment is still not yet received after the Disconnection Notice deadline, a Disconnection Job Order is issued by the Finance Services Section to the Commercial Department, and then to the Disconnection In-charge.


OPERATIONAL MANUAL

196 | P a g e

This person goes to the consumer above and presents the Disconnection Order. If the payment is not immediately paid, the Disconnection proceeds.

5. The process should be clearly defined through a Board Resolution that should be disseminated to the staff and all users. As such, when the conditions for disconnection take place, it shall be implemented automatically by the operating staff concerned, without any specific order or intervention by the General Manager. The General Manager should not be involved in the Disconnection process for two reasons:

1. He should be able to rightfully claim that he had no prior knowledge of the incident and that the staffs are only guided by the policy and standard office procedures.

2. In case a reconnection has to be made immediately, He can give the order without countermanding an earlier order to disconnect.

BILLING ADJUSTMENTS

1. If for some reason, a billing adjustment needs to be made on a customer’s bill; the SWUDO makes the initial recommendation stating the reasons for the adjustment and its supporting documents. The Department Manager reviews it, and upon approval, the Customer Service Assistant prepares a Billing Adjustment Memo on which the Department Manager must indicate his approval and submit the same to the Accounting Section Office..

2. Upon approval of Billing Adjustment Memo, The Supervising Computer Operator post the corresponding adjustment in the Individual Customer Ledger Card. The adjustment is then reflected either in a new or the next billing statement.


OPERATIONAL MANUAL

197 | P a g e

CUSTOMER COMPLAINTS

As a rule, every customer’s complaint should be attended to as quickly as possible and should be in accordance with the SKWD ARTA.

1. There are several ways by which the SKWD can receive complaints from its customers. These can be made directly to the Field Personnel, or the customer can call, text message or report directly to the office. These complaints must be recorded, classified as to their nature and date received, and resolved or acted upon. The report for each complaint should also indicate the dates for subsequent monitoring.

2. If a service complaint is made to the Field Personnel, if possible, the field personnel should conduct a preliminary investigation and, whenever possible correct the defects immediately. If the defect needs further repair, this should be reported to the office for proper notation in the Service Request Form. This order will be used as a basis for responding to the defect.


OPERATIONAL MANUAL

198 | P a g e

3. If the service complaint is made at the office, the complaint is recorded in the Complaint Log Book and issued with Service Request Form. The complaint should be acted immediately. Table of adjustments for High Consumption due to leakage after the meter as per approved Resolution No. 046-2006 are as follows: 20% - P 10,000 or above over the average billing 30% - P 5,000 – P 9,999 over the average billing 40% - P 2,500 – P 4,999 over the average billing 50% - P 500 – P 2,499 over the average billing

DEALING WITH DELINQUENT ACCOUNTS

1. If the SKWD is consistently firm in implementing its disconnection policies. Fewer problems will arise in dealing with delinquent accounts. For all intents and purposes and depending on Board Policies, delinquent accounts are those with arrears greater than two (2) months. SKWD, upon proper distribution of water bills, conduct the disconnection within Ten (10) days after the due date, if the bill remains unpaid.

2. When the customer subsequently applies for reconnection, the reconnection fee plus the arrears should be collected before reconnection.

3. If for some reasons the number of delinquent account grows, The SKWD should take the following steps:

a. Ensure that the accounts have all been disconnected. Review delinquent accounts that have been disconnected if they have been issued the appropriate collection notices.

b. If yes, disconnect immediately. If not, issue the appropriate notices. c. If the customer has another connection (different account number), add

the debt to the second account; after disconnecting the delinquent account.

4. Prepare an ageing of Accounts Receivable. This means classifying the accounts as to age of receivables, say 2-6 months “A”; greater than 6 months to one year “B”; and accounts greater than 6 months to one year “B”; and accounts greater than one year “C”. The process:

Starting with the A accounts, the SKWD should assign a representative to discuss the account with the customer and attempt to find ways and means to settle the debt. Those accounts greater than 6 months (B and C) should be given to collection agent, if available. If efforts are unsuccessful, then these accounts should be written off as bad debts (in accordance with COA rules).

Before the account is written off, the Guaranty Deposit (if any) made by the customer upon application for service is credited to his account and the arrears settled.. If the customer applies for reconnection, he shall be made to pay the reconnection fee, the balance, if any.


OPERATIONAL MANUAL

199 | P a g e

MANAGEMENT REPORTS 1. Commercial / Operational Information

As part of the management information System (MIS) of the SKWD, The following commercial operational information should be summarized and reported on a monthly basis:

a. Report on Billing and Collection b. Production and per Capita Consumption c. New Connections Applications d. Complaints

2. Billing and Collection

The Billing and Collection system should be able to summarize every month the following information:

a. Total Billing & Collections by Type of Connections b. Total Number of Connections c. Collection on Current Billings And Arrears d. Cubic Meters Billed e. Average Consumption per Domestic Connection f. Connection with arrears of more than 1 month

COLLECTION EFFECIENCY

Under normal condition, low collection efficiency in level III services can be remedied by strict enforcement of the policies on Billing, collection, penalty, disconnection, illegal connection and etc.. The SKWD further put strategies with a purpose of increasing collection efficiency, collection ratio and on time payment using the following:

1. On time Reading and Billing 2. On time distribution of water bills 3. Conduct reminder every after the scheduled due date 4. Follow-up of delinquent account/ issuance of disconnection notice 5. Disconnection of delinquent service connection.

MARKETING/ CENSUS

The census is merely a survey of the current and potential customers within the service coverage area. To do this it is necessary to have a map of the service area showing the location of the service connection and existing household unit. Enumerators used for this purpose are trained on the survey objectives and the questioning procedures. Where advantageous, barangay assistance maybe secured.


OPERATIONAL MANUAL

200 | P a g e

Steps for doing the survey are the following;

1. Indicate on the map the existing system showing the pipelines, reservoirs and source/s.

2. Divide the entire area into blocks so it can easily be located in the field. 3. Divide each block so that each block can be covered by an enumerator with –in

reasonable time. 4. Assign enumerators to their respective zones. 5. Use a questionnaire to secure data per dwelling unit. Such as the number of

persons, estimates of daily consumption, payments made for electricity, current source of water and payments made.

6. During the survey, the enumerator should make a survey of the non-connected residents, disconnected connections and their present source of supply.

7. After the field survey is completed, the information gathered must be consolidated.


OPERATIONAL MANUAL

201 | P a g e

FLOW CHARTS

DETAILED FLOW ON THE MANAGEMENT OF CLIENTS

NEW SERVICE CONNECTION

CLIENT

1. Inquire of details

from CSA-NSC

Section.

2. Fill-up application

form and submit

necessary

requirements.

3. Pay inspection fee.

4. Attend orientation

(signing of NSC Form)

5. Wait for the result of

inspection within 2

days

CSA - NSC

1. Evaluate the submitted

documents.

2. Conduct inspection.

3. Evaluate the materials

and drawing submitted

by Inspector. and

prepares:

a. Bill of Materials

b. Contract of Labor

c. Receipt of water

meter

4. All documents

including NSC Form

ready for signature and

payment anytime.

CLIENT

1. Received and clarify the bill of

materials.

2. Pay the bill of materials

3. Wait for actual installation within

7 days from payment.

4. Receive one (1) copy of all

documents

CSA - NSC

1. Assign and monitor installation of

Service Connection

2. Request for post inspection

3. Prepare payment for Labor

Contractor

4. Proper filing of documents

a. NSC Form and other contract

for future reference

b. Bill of materials as subject

for payment

c. Submit documents to

computer for posting

d. Log book of transaction.

Transaction Close/

Documents on file


OPERATIONAL MANUAL

202 | P a g e

COMMERCIAL DEPARTMENT

CUSTOMER COMPLAINTS & REQUEST FLOW CHART

Client

On Phone

Walk - In

Customer Complaints Section

(Service Request Preparation)

COMMERCIAL JOB

Engineering/Maint Job

- High Consumption

- No Consumption - Water Rates - Disconnection/Reconnection - Service Connection Ownership - Illegal Connections - Meter Reading and Delivery - Arrearages and Complaints - Complaints on the Execution of Job

Order - Other Related Complaints - Inside Plumbing Request with Labor - Change Meter

- Prepare Job Order based on recommendation

from Commercial. - Jobs relating to maintenance of service line

and meter stand such as leakages and meter elevation. (except change meter)

- Execute the technical works / repair needed therein in the most reasonable time (ARTA).

- Coordinate/report the status of Job Order whether acted or not.

- Coordinate with commercial dep’t. for any water interruption due to emergency repair.

- May act on inside plumbing provided be given to SKWD authorized sub-contractors only.

- Meter evaluation

- Evaluation of Job Orders

- Filing of Documents

Water Quality

DMA NRW

Act on Complaints: - No water - Dirty Water - Low

Pressure - Coordinate

with commercial dep’t. for any water interruption

Illegal connection on mainlines and service lines

- Evaluation of Job Orders

- Filing of Documents


OPERATIONAL MANUAL

203 | P a g e

FLOW CHART FOR ADDITIONAL WORK STATION OF BILLING AND COLLECTION SYSTEM

Collection Computer

BILLING OPERATOR 2 Scope of Works:

1. Add Account Records 2. Modify Account Records 3. Delete Account Records 4. Transfer Account Records 5. Disconnect, Reconnect

Accounts 6. Post Billing 7. Post Collection 8. Posting to Ledger 9. Print Bill receipt 10. Print Report 11. Back-up data Files to His Own

Back-up File Director 12. Mark/Unmark Data Accounts 13. Create Data Files 14. Modify Water Rates 15. Modify System Settings 16. Modify Directory 17. Posting of Adjustments 18. Editing of Individual Ledger

STAND ALONE

BACK-UP (USB FLASH DRIVE)

BILLING OPERATOR 1 Scope of Works:

1. Add Account Records 2. Modify Account Records 3. Delete Account Records 4. Transfer Account Records 5. Disconnect, Reconnect



MAIN SOURCE BACK-UP DATA

STAND ALONE BACK-UP DATA

(USB FLASH DRIVE)


OPERATIONAL MANUAL

204 | P a g e

FLOW CHART FOR ISULAN/ESPERANZA SUB-OFFICE OF BILLING AND COLLECTION SYSTEM

SOURCE DATA

BACK-UP TO MAIN SERVER DATA

Using Internet/Mobile Drive (TACURONG)

BILLING OPERATOR 2 (Accountable Person)

Scope of Works: 19. Add Account Records 20. Modify Account Records 21. Delete Account Records 22. Transfer Account Records 23. Disconnect, Reconnect



SOURCE DATA BACK-UP

BACK-UP DATA

COLLECTION COMPUTER


OPERATIONAL MANUAL

205 | P a g e

WATER BILL COLLECTION AND REPORTING FLOW CHART

SUMMARY OF DAILY COLLECTION REPORT DULY CHECKED AND

APPROVED BY THE SUPERVISOR

SUBMISSION OF DAILY B&C COLLECTION REPORT TO CASHIER

BEFORE 5:00 PM DEPENDING ON THE NUMBER OF BILLS COLLECTED

CLIENT

TELLER/ BILL COLLECTOR

ISSUANCE OF WATER BILL RECEIPT POSTING OF PAYMENTS TO B&C

COMPUTER @ 9:00 AM DAILY

PRINTING OF B&C COLLECTION REPORT TO CHECK AND BALANCE

AGAINST TELLER/COLLECTOR’S REPORT

PRINTING OF SUMMARY OF TELLER

DAILY COLLECTION REPORT

REMITTANCE OF

COLLECTED CASH TO CASHIER

REPORT ON AGING OF

A/R ON MONTHLY

BASIS

SUBMISSION OF MONTHLY SUMMARY OF

DAILY COLLECTION REPORT TO COMM’L

EVERY 10’TH WORKING DAY OF THE MONTH


OPERATIONAL MANUAL

206 | P a g e

FLOW CHART ON POSTING AND UPDATING OF COLLECTION TACURONG OPERATION

UPDATING OF DATA

TELLER 1 (Bon)

TELLER 2 (Jen)

BILLING 1 (Ernie)

BILLING 2 (Ivy)

SERVER MAINDATA

EXTERNAL BACK-UP

EXTERNAL BACK-UP

Collection Monitoring

System

Note: Actual collection report of teller will be checked against consolidated collection report generated from the server prior to submission to accounting office. Collection Monitoring: Serve as basis for the instant checking/monitoring of accounts by the disconnector to disconnect delinquent accounts. Updating of Data Files: After posting of billing and collection to server maindata, tellers can automatically update collection data file from the server to their collection computer.


OPERATIONAL MANUAL

207 | P a g e

ENGINEERING AND OPERATIONS DEPARTMENT

I. INTRODUCTION

In an engineering operation for water system transmission and distribution the

critical factors are considered to deliver the water from the source to the

concessionaire. The system maintains a design criterion to ensure that the water

reaches in all parts of the designed network to meet the growing demand in present and

proposed expansion for the next coming years.

The system consists of components, whose operation and maintenance

requirements are based on their unique characteristics as well as their function and

contribution to the total system. They are the pumping stations, distribution pipelines,

filter tanks, storage tanks or reservoirs, service connections or standpipes, valves and

other appurtenances.


OPERATIONAL MANUAL

208 | P a g e

PRODUCTION DIVISION

A. PUMPING OPERATION

Start

Log-in

Well Monitoring

Pumping Operation

Does pumping equipment automatically start-ON and shut-OFF on its determined reservoir

water level?.

NO Request for

Maintenance

YES

Chlorination

Does the Chlorinator working

properly? Request for

Maintenance

NO

YES

Filter Tank

Is the water pumping station

has its Stored Elevated Tank

or Reservoir?

NO Direct Pumping

YES Stored in Elevated

Tank or Reservoir

Well Monitoring

Reporting and

Recording


OPERATIONAL MANUAL

209 | P a g e

PUMPING OPERATION DETAILS

RESPONSIBILITY

1. Log-In

Report directly to assigned pump station.

Call office guard for proper log-in and reservoir water level.

Check-up the controls and all the equipments in the pumping stations.

Records all necessary data needed in the operation.

Production Operator

2. Well Monitoring

Weekly SWL measurement

Production Operator

3. Pumping Operation

Open the Flush-out valves for flushing during start of

operation minimum of 2 minutes.

Turn –on the Control Panel and Variable Speed Drive

(VFD) at minimum frequency.

Closed flushed out valves and open the line valve to the

Filter Tank.

Conduct Weekly Static Water Level (SWL) & Pumping

Water LevelPWL) monitoring measurements

Conduct testing of electrode function during preventive maintenance activities. (Pumping operation auto-shuts off when water level reaches below electrode level).

Production Operator

4. Chlorination

Ensure that chlorination equipment properly working

Ensure availability of chlorine supply on stock.

Check for chlorine feed-rate; Chlorine gas injection at 1.5 ppm to ensure 0.3 residual at endpoints.

Production Operator

5. Filter Tank

Monitor the Status of the Filter Tank

Production Operator

6. Stored in Elevated Tank or Reservoir

Ensure that Reservoir manhole is securely locked.

Conduct valve opening of interconnection in case of water shortage.

Production Operator

7. Well Monitoring

Monitor the PWL

Check-up Line current of the motor

Adjust the VFD at the Peak Demand and Low demand

for the overflowing of the storage tank.

Production Operator


OPERATIONAL MANUAL

210 | P a g e

8. Reporting and Recording

Monitoring, recording and reporting of Reservoir water and its daily pumping station operation level thru radio and logbook. (Auto shuts-off when tank is full and auto-start at pre determined level).

Prepare daily pumping report.

Production Operator and Engineering Aide

B. CHLORINATION

Start

Preparation and withdrawal of

materials

Delivery and checking of the materials on

every Pumping Stations

Preparation for Operation

Checking of Equipment

Is Chlorinator working

properly?

Request for

Maintenance

NO Checking of Chlorine Residual?

Does Chlorine residual above

0.3ppm?

YES

Reporting, Recording and

Filling


OPERATIONAL MANUAL

211 | P a g e

CHLORINATION

DETAILS RESPONSIBILITY

1. Preparation and withdrawal of materials

Preparation of Request Issuance Slip (RIS) for the

withdrawal Chorine.

The personnel in charge will monitor on stock the

withdrawal of the chlorine.

Water Maintenance Operator

2. Delivery and checking of the materials on every

Pumping Stations

An inventory will be taken in every pumping station

for the delivery of the amount of chlorine needed.


3. Preparation for Operation

Ensure a chlorine feed-rate adjustment at 1.5ppm

Eliminate the air remaining in the suction tube or

pump head through bleeding process.

Adjustment of stroke rate must be undertaken from

1 to 360spm.

Adjustment of stroke length up to 0 to 100%


4. Checking of Equipment

Check the Chlorinator if it is properly if it is working

and other parameters that would affect its

operation.

If the Chlorinator is damage, checking and

preventive maintenance must be undertaken

immediately or replacement of the equipment.


5. Checking of Chlorine Residual

Refer to the flow of getting Chlorine Residual in

every pumping station.

If the Chlorine residual below the 1.5ppm, the

pump operator will adjust the desired level to

attain the standard.



OPERATIONAL MANUAL

212 | P a g e

6. Reporting, Recording and Filling

File the results properly according to its date.

Make a report to be submitted to the assigned

production personnel for checking and validation for

the submission of report.


C. CHLORINE RESIDUAL

Start

Preparation and Checking

Selection of parameters in the

Instrument

Preparation of the Sample

Blank Cell for Testing

Inserting the sample into the

Testing Instrument

NO Is the Sample taken

satisfies the result?

YES

Download, Reporting,

Recording and Filling


OPERATIONAL MANUAL

213 | P a g e

CHLORINE RESIDUAL


1. Preparation and Checking

Check the instrument if it is working properly

Preparation of the instrument and other concerns in

getting the chlorine residual.


2. Selection of parameters in the Instrument

Push the power key button to turn on and off the

instrument

Selection of the applicable program from the

Program Menu (e.g. stored programs, user data, and

other)

Push Start in starting the program


3. Preparation of the Sample Blank Cell for Testing

Preparation of the blank sample cell according to the

method of the document and close the sample cell

and clean the optical faces of the sample cell with a

free cloth.

Insert the blank sample cell into the cell

compartment and make sure to install the blank

sample cell in a correct manner for getting a precise

result.

Close the instrument cap to prevent light

interference that will affect the result.

Push the Zero button. The display must show a zero

concentration.

Prepare the blank sample cell and add reagents as

specified.

Select the option in the instrument and click start

timer for the chlorine testing for about 5 minutes.

Close the sample cell and clean the optical surface of

the cell with a fine cloth.


4. Inserting the sample into the Testing Instrument

Insert the sample cell into the cell compartment

Close the instrument cap to prevent light

interferences that will affect the sample

Click Read

In the display, the test result will be shown and click

the units as desired.



OPERATIONAL MANUAL

214 | P a g e

6. Download, Reporting, Recording and Filling

Download the result from the instrument and File

properly according to date for the sample results



the submission of report to the LWUA and other line

agencies concerned.


D. BACTERIOLOGICAL TESTING OF WATER

Start

Preparation of Documents,

Materials and other concerns

Checking the Chlorine

Residual and Equipments

Water Sample Collection

Submit to an Accredited Laboratory and

Testing Center

Getting the Result

Is the result pass to the

standard of PSDW?

Inspection and investigation

of the Result

NO

YES


Filling


OPERATIONAL MANUAL

215 | P a g e

BACTERIOLOGICAL TESTING OF WATER


1. Preparation of Documents, Materials and other concerns

Scheduled the date and day of taking the sample.

Preparation of the materials like bottles for proper

assignment and storage.

Production Operator

2. Checking the Chlorine Residual and Equipments

Check the chlorine feed rate at (1.5ppm) Production Operator

3. Water Sample Collection

Conducts 21 samples per month to be submitted to

an accredited testing laboratory

Tacurong City – 9 Pumping Stations

Isulan – 4 pumping Stations

Esperanza – 1 Pumping Station

For Monitoring Purposes:

Collection of samples from various pumping station

using Primary Health Care (PHC) bottles for the office

consumption and monitoring purposes.

Production Operator

4. Submit to an Accredited Laboratory and Testing Center

Pay the bills according to its request and get the

bacteriological test after testing was made.

Production Operator

5. Getting the Result

Sample Result as shown in the table

Total Coli forms

(mpn/100mL)

Fecal Coli forms

(mpn/100mL)

HPC

(cfu/mL) Remarks

Philippine Standard for Drinking Water (PSDW):

a. Total Coli forms < 1.1

b. Fecal Coli forms < 1.1

c. HPC < 500

Production Operator


OPERATIONAL MANUAL

216 | P a g e

Possible action must be taken if the result fails:

Conducts investigation for the increase of Chlorine

Residual and Equipments

Flush Out if necessary


File the results properly according to date in the

sample results.




agencies concerned.

Production Operator

E. PHYSICAL AND CHEMICAL ANALYSIS

Start

Preparation of Documents,

Materials and other concerns

Water Sample Collection

Submit to an Accredited Laboratory and

Testing Center

Getting the Result

Is the result pass to the

standard of PSDW?

Inspection and investigation

of the Result

NO

YES


Filling


OPERATIONAL MANUAL

217 | P a g e

PHYSICAL AND CHEMICAL ANALYSIS


1. Preparation of Documents, Materials and other concerns

Scheduled the date and day of taking the sample.

Preparation of the sampling materials for proper

assignment and storage.

Production Operator

3. Get Water Sample

Temporarily turn-off the Chlorinator in getting the

sample.

Conducts samples every twice (2) a year to be

submitted to an accredited testing laboratory

Tacurong City – 9 Pumping Stations

Isulan – 4 pumping Stations

Esperanza – 1 Pumping Station

Production Operator

4. Submit to an Accredited Laboratory and Testing Center

Pay the bills according to its request and get the

physical and chemical analysis after testing was

made.

Production Operator

5. Getting the Result

The result must conform to the PSDW.

Result as shown in the table as per Philippine

Standard for Drinking Water (PSDW):

Physical Value Maximum Level

( Based on PNSDW)

Method of

Analysis

Color 10.0 CU Platinum-Cobalt

Odor No Objectionable

Odor

Sensory

Evaluation

Technique

Turbidity 5.0 NTU Turbidimetric

Temperature - ᵒC Electrometric

Total Dissolved

Solids 500 mg/L

Electrometric

Hardness, Total 300 as CaCO3 EDTA Titration

Production Operator


OPERATIONAL MANUAL

218 | P a g e

pH Wide Range 6.5-8.5 Electrometric

Chloride 250 mg/L Argentometric

Nitrate 50 mg/L Cadmium

Reduction

Sulfate 250.0 mg/L Turbidimetric

Iron 10 mg/L Flame AAS

Manganese 0.4 mg/L Flame AAS

Arsenic 0.01 Hydride

Generation AAS

Cadmium 0.003 mg/L

Electrothermal

AAS

Lead 0.01

Electrothermal

AAS

Possible action must be taken if the result fails:

Conducts investigation for proper mitigation and

control.


File the results properly according to its date in the

sample results.




agencies concerned.

Production Operator


OPERATIONAL MANUAL

219 | P a g e

CONSTRUCTION AND MAINTENANCE DIVISION

A. DISTRIBUTION SYSTEM

Start

Inspection of Proposed

Pipeline Expansion

Plan Preparation and Design

and Purchase Reques

Processing of Permits

Pre-Construction Activities

Construction Activities

Pipeline Hydro Testing

Is the testing pressure in the

pipes passed the standard?

NO

Request for mainline leak

detection and repair YES

Disinfection

NO Final Inspection

Is the pipeline project

complete?

Installation of the lacking

materials in the project plan YES

Reporting, Plotting and

Recording


OPERATIONAL MANUAL

220 | P a g e

DISTRIBUTION SYSTEM


1. Inspection of Proposed Pipeline Expansion

Survey possible pipeline expansion and households present in the area.

Project Planning and

Construction

2. Plan Preparation and Design

Survey and Measure the proposed pipeline expansion project

Plotting the measured proposed area using a computer software (Auto CAD, Sketch Up, Google Earth)

Conducts design analysis using a computer software (EPANET)

Final output of the design and plans

Preparation of detailed estimates

Submitting the plans and detailed estimates


Construction

3. Processing of Permits

Processing of the application and permits of the

proposed pipeline expansion through the

Municipalities concerned and Department of Public

Works and Highways

Payments of the computed linear meters of the proposed project and other fees


Construction

4. Pre-Construction Activities

Notifying the concerned barangays and the people residing in the area for the proposed project

Site inspection and staking for the proposed pipeline expansion

Scheduling for the construction activity including the preparation of tools and equipments


Construction

6. Pipeline Hydro Testing

Preparation of materials needed for the testing including the valves when available

All pipelines shall be thoroughly flushed out prior to testing

The test pressure shall pass the 690kPa (100psi) or 100MPa ( 150psi) according to the class of pipes to be used

If found below the standard, the team responsible will conduct an inspection and investigation for possible leakages and repairs

Non Revenue Water (NRW) and


Construction


OPERATIONAL MANUAL

221 | P a g e

B. MAINTENANCE OPERATION

Receive Complain

thruthrtt

Start

Call Personnel Walk-In Field

Preparation of Maintenance

Order (MO) and Recording

Delegation of MO to Plumbers

Proceed for site inspection and assessment of leakages

Conduct Repair

Is the MO has its materials

needed for repair?

NO

YES Maintenance Concessionaire

Proceed to Payment

Releasing of Materials

Proceed on site to conduct repair

Is repair Acceptable

to complainant? NO

YES

Accomplishment of MO Form

Submit Accomplished MO for Filling

Encode for Daily Report


OPERATIONAL MANUAL

222 | P a g e

MAINTENANCE OPERATION DETAILS

RESPONSIBILITY

1. REPORTS THRU

Phone Calls

Walk-In

Field

Personnel DATA REQUIRED

Name/Registered Conn.

Exact Location

Nature Of Leak

At Least 2 Nearest Connection For Reference

Concessionaire

2. PREPARATION OF MO

Maintenance Order Form

Engineering Assistant/customer service

3. DELEGATION OF MAINTENANCE ORDER

Call thru handheld radio.

Send via SMS

Foreman

4. SITE INSPECTION

Determine the leakage if, from mainline or service line

If mainline, Identify the control valves to be closed within the area of leakage, then prepare tools and estimate materials needed.

If service line, prepare tools and estimate materials if needed. When no materials needed – repair immediately.

Maintenance-Field Personnel

5. Conduct repair

Proceed to leak repair

If no repair conducted give Feedback to Engineering-Maintenance office for status of report and development


6. If materials needed:

determine whether it is charged to maintenance or concessionaire

If charge to maintenance, prepare RIS and release materials.

If charge to concessionaire, prepare RIS and payment should be made for the release of materials.

If small items – Charge to Concessionaire, 3-6mos. to pay.



OPERATIONAL MANUAL

223 | P a g e

7. ACCOMPLISH OF MAINTENANCE ORDER FORM Nature Of Complaints:

Time start

Time finished

Reading of Water Meter if needed

Estimate of materials used

Determine if Materials be charge to concessionaire or Maintenance

Acknowledgement-Signature of Concessionaire if needed

Remarks and Recommendation

Reference Report


8. SUBMIT ACCOMPLISHED MO FOR FILLING

Complete data and signature appear in the Maintenance Order


9. ENCODE FOR DAILY REPORT

Summary of Accomplished Maintenance Report.

Maintenance Foreman

-0-0-0-0-0-0-0-0-0-0-

REFERENCES

HANDBOOK ON PHILIPPINE GOVERNMENT PROCUREMENT 6TH EDITION

IMPLEMENTING RULES AND REGULATIONS OF RA 9184

GENERIC PROCUREMENT MANUAL

- ESTABLISHING PROCUREMENT SYSTEM & ORGANIZATION

- PROCUREMENT OF GOODS AND SERVICES

- CONSULTING SERVICES

- PROCUREMENT OF INFRASTRUCTURE PROJECTS

Date post:	19-Mar-2020
Category:	Documents
Upload:	others
View:	10 times
Download:	0 times