MANUAL OF OPERATIONS

COCO COIR AND GEONET PRODUCTION

ENTERPRISE

Tanikala ng Pagkakaisa Multi-Purpose Cooperative

Lead Proponent Group

Butansapa Multi-Purpose Cooperative

Nagka Multi-Purpose Cooperative
Cluster Members

Marinduque

Contact Person:

Pacifico Mabato
Chairman
Tanikala ng Pagkakaisa Multi-Purpose Cooperative
0920 940 2532
I. Introduction

A. Overview

B. Purpose of the Manual

II. Project Background (PRDP I-REAP Component)

III. Basic Organization Information

A. Brief History of the Organization

B. Vision and Mission Statement

Vision:

Mission:
1.
2.
3.

C. Goals and Objectives

To

Specifically, the project intends to achieve the following objectives:

1.
2
3

D. Core Values or Code of Conduct/Ethics

 This code of ethics for the Board of Directors, Officers and Committee
Members shall be adopted as a policy to ensure success and sustainability of
BASEFA and its cluster members.

1. Every leaders MUST:

a.
b.
c.

2.
3.
4.

E. Organizational Chart

The Association organizational chart is as follows:

F. Task and Function

Position Title Duties and Responsibilities

Grievance Shall be designated by JIFA who will be responsible for the
initial screening of feedbacks and complaints pertaining to
the seaweed nursery management, production and
marketing concerns and the overall operation of JIFA as an
organization and as an enterprise. The JIFA GPP is also
tasked to provide appropriate solution and mitigating
measures so as to ensure effective and efficient
management of the small livelihood project report to the
BOD.
Municipal Fisheries Shall be responsible in planning and implementing
and Aquatic activities that will strengthen the management of the
Resources project to ensure its success. A fisheries technician shall
Management Office be assigned to assist in the technical aspect of the project.
or MFARMO Staff
Board of Director A group of elected officials of JIFA who oversees the
(BOD) activities of the association.

General Manager Shall be in-charge in the over-all operation of the seaweeds

(1) enterprise and the proper execution of operational
procedures.
Bookkeeper Shall perform record keeping of all the transaction of the
 seaweeds enterprise, which includes by not limited to
preparation of the minutes of the meetings, recording the
production and sales of the communal and individual
farms, and filing of all the documents of the JIFA.
Cashier (1) Shall be responsible in releasing budget needed in the
production of the business, receiving cash sales of
products sold, and performing the administrative and
accounting functions of the seaweeds enterprise.
Project Shall supervise the entire process of seaweeds production
Manager in the communal farm

Marketing Officer Shall be responsible in the daily cleaning and checking of

the status of seaweeds in terms of grazers, diseases, loose
ties, as well as reporting unresolved problems to the
supervisor. She/he shall be responsible in processing
harvested fresh seaweeds into dried form and delivering
it to buyers.
Quality Shall be hired during the installation of wooden stakes,
Control Officers/ preparation and planting of seaweeds cuttings, harvesting
Monitoring Team/ and drying of fresh seaweeds.
Cluster
Coordinators

Production
Planting and Tying Must be choose healthy and strong branches of seedlings
(5) and it should be tied at the strongest point where they are
well- balanced for free movement to avoid breakage of
branches.
Installation of Shall be positioned the stakes such that nylon lines will be
wooden stakes (24) parallel to the water current. Bamboo poles or wooden
posts are driven to the bottom, half a meter between
rows.
Harvesting (6) Shall be removed the mature seaweed plants from the
lines by unfastening the knots or by breaking off plants.
Drying (4) Shall be spread the harvested wet seaweed in the solar
dryer.
Packaging (4) Shall be packed in appropriate containers that will
adequately protect the product from normal hazards of
transportation and handling.
Planting and Must be choose healthy and strong branches of seedlings
Tying (5) and it should be tied at the strongest point where they are
well- balanced for free movement to avoid breakage of
branches.
Installation of Shall be positioned the stakes such that nylon lines will be
wooden stakes (1) parallel to the water current. Bamboo poles or wooden
 posts are driven to the bottom, half a meter between
rows.
Maintenance (1) Shall visit the farm regularly, keep plants clean by
removing mud and rough seaweeds, to remove fish and
other sea animals that may feed on seaweeds and check
the disease infected of the plants.
Harvesting (1) Shall be Removed the mature seaweed plants from the
lines by unfastening the knots or by breaking off plants,
Drying (1) Shall be spread the harvested wet seaweed in the solar
dryer.
Packaging (1) Shall be packed in appropriate containers that will
adequately protect the product from normal hazards of
transportation and handling.
Inventory Shall be in-charge for safeguarding and accounting for the
inventory. It also receives newly arrived inventory in
tracks it as it moves in and out of central storage facilities.

 Additional column for their benefits/salary/wages.

JIFAS Honorarium

# of Cost (Php)
Personnel Cost/person Benefits
person Monthly Yearly
Manager 3,000.00 1 3,000.00 36,000.00 3000
Supervisor 2,500.00 1 2,500.00 30,000.00 2500
Bookkeeper/ 3000
Cashier 3,000.00 1 3,000.00 36,000.00
Secretary 3,000.00 1 3,000.00 36,000.00 3000
Total 11,500.00 138,000.00

JIFAS Direct Labor Cost (Communal Farm)

Cost Cost per Cropping Season (Php)
# of # of
Activity per Remarks 1st 2nd 3rd Year 1
persons days Activity Cropping Cropping Cropping
Planting/ 5 2 1400 per 14,000
Tying person 14,000 14,000 42,000
Installation 24 1 230 per day
of wooden 5,520 - - 5,520
stakes
Harvesting 6 2 230 per day
2,760 2,760 2,760 8,280
Drying 4 2 230 per day
1,840 1,840 1,840 5,520
Packing 4 2 230 per day
1,840 1,840 1,840 5,520
Permanent 2 total per kilo
Worker produ 3.50 17,150 32,900 18,900 68,950
ction
Supervisor 1 total per kilo
produ 1.50 7,350 14,100 8,100 29,550
ction
Manager 1 total per kilo
produ 2.50 12,250 23,500 13,500 49,250
ction
Total 47 62,710 90,940 60,940 214,590

BASEFA and Cluster Members Direct Labor Cost (Individual Farm)

Cost per Cropping Season (PhP)

# of # of Cost per 1st 2nd 3rd
persons days Activity Remarks Cropping Cropping Cropping Year 1
per
5 1 24 line/day 720 720 1,440

1 1 230 per day 230 - 230

1 6 230 per day 1,380 1,380 2,760

1 6 230 per day 1,380 1,380 2,760

1 6 230 per day 1,380 1,380 2,760

1 1 230 per day 230 230 460

5,320 5,090 10,410

520,500

G. Members/Stakeholder and Partners

NAME ADDRESS Production Area (sq. m)

BASEFA
1.
2.
3.
Cluster Members
LCCSF
1.
2.
3.
UAAP
1.
2.
3.
SMM
1.
2.
3.

H. Area Coverage of Enterprise

The project entails a communal seaweeds farm of _________hectares …. (please

discuss further)

I. Enterprise Cluster Mapping

Allotted Seaweeds Farm Area (first year production)

c/o GGU
IV. Membership of the Organization

A. Who may be members of the Associations

The membership of this association is open to all persons residing and/or

working in the area of operation as defined in Article III of the authenticated
bylaws of the association.

Provided that all prospective members shall:

a) Pledge to undertake the responsibilities of membership
b) Complete the prescribed pre-membership awareness briefing; and
c) Use or anticipate the use the services of the association

Further qualification of a member includes:

1. Registered fisherfolk in the barangay
2. At least 18 years of age and utmost 60 years old at the time of
application
3. Mentally sound
4. Not using any illegal fishing methods or environmental friendly
5. Good spiritual and moral standing
6. Always ready for any call of duty

B. Application

The applicant shall speak to the association officers and Board of directors
accompanied by a membership fee of FIFTY PESOS (P50.00) which amount
shall not be returned to the applicant in case of rejection.

C. Liability of Members

The liability of a member shall be limited. No member shall be liable for any
indebtedness of the association beyond his subscribed shares.

D. Termination of Membership
 Membership in the association may be terminated either by withdrawal or
eviction for any member who got three consecutive absences for their
regular association meeting. Death, insanity or insolvency of a member shall
be considered an automatic termination of membership.

V. Administration

A. Composition of the General Assembly

The General Assembly of the cooperative shall be composed of members

entitled to vote duly assembled and constituting a quorum of 50 + one.

B. Powers of the General Assembly

The General Assembly has the power:

1. To determine and approve amendment/s to the articles of

cooperation and/or by laws;
2. To elect and appoint BOD and committee members ad to remove them
for cause;
3. To approve developmental plans of the association;
4. To exercise all powers expressly provided by law and the by laws
requiring a two-thirds vote of all the members of the general
assembly;
5. To exercise final authority on all matters vitally affecting the
association;
6. To take final decisions regarding any change in financial policies,
subject to legal restrictions;
7. To hear and pass upon the reports of the Board of Directors and
committees

C. Meetings (General Assembly, Officer Meeting, and Monthly Meeting)

1. Monthly or Regular meeting – The monthly or regular meeting shall

be held on first Sunday of the month in the Barangay hall of Barangay
VI-Johnson Island, Roxas, Palawan.
 2. Special Meeting – Whenever necessary, a specialmeeting of the
General Assembly may be called at any time by the president

D. Voting System

The following are the cooperative’s voting systems:

1. Members entitled to vote shall be qualified to vote and participate in

the general assembly of the association. No member of the association
shall be entitled to more than one vote regardless of the share capital
owned.
2. Election and removal of Directors and Committee members either
secret balloting or raising their hands. Actions on all other matters
shall being any manner that will truly and correctly reflect the
decision of the membership.

E. Hiring and Firing policy

A. Hiring Policy

Interview process
The BASEFA Board of Directors and the General Manager will
screen application and resumes prior to scheduling interview.

B. Firing policy
Termination of employment happens when the contract of an
employee is discontinued due to their or the association action. Failure to
show for a specified number of days without notice and discharge for
cause without prior actions will automatically terminated

F. Merit and promotion policy

A. Merit
It is a systematic method of selecting employees for advancement or
promotion on the basis of their qualification, fitness and ability to
perform the duties and assume responsibilities of the position being
filled.
B. Promotion policy
 Advancement of an employee from one position to another with an
increase in duties and responsibilities as authorized by law and usually
accompanied by an increase in salary.
G. Organizational Staff development (Com. Consultation, stakeholders)
To build capacity and coordinate services in the area of leadership and
development to enhance a positive work environment, promote regional
integration, provide educational opportunities, improve employee
engagement and build sustainability in the workforce, ultimately impacting a
positive health care experience for all-the public and our workforce.

VI. Project Systems and Procedures

A. Sourcing of Raw Materials

1. Criteria for selecting or accrediting suppliers

a. Planting Materials, Farm implements and other production

supplies

Planting materials will be sourced out from neighboring

seaweed farmers and from NSTDC. Suppliers should have
good track record and have the capacity to supply the
required volume of the Enterprise.

2. Quality requirements from the raw materials

a. Planting Materials

For seaweeds (Communal Farm∕Nursery), planting materials

should be of good health, free from diseases and should have an
average survival rate of 90% per cropping forIndividual Farm.
 Flow of Seaweeds from Supplier to Market

3. Frequency and timing of Sourcing/procurement of raw

materials

a. Planting Materials
Cluster Members are required to maintain a nursery of 0.25
hectares which is good for 2 MT of fresh seaweeds. After 2
months, these nurseries could produce approximately
10MT of planting materials.

o Farm implements and production supplies

BASEFA, as the lead proponent group could support its
cluster members in form of loan by providing them the
needed farm implements and production supplies. Payment
will be deducted from the sales of the RDS

B. Raw Material Handling/Receiving and Inventory

a. Planting Materials (Fresh Seaweeds) and Farm Implements

Inspection and Releasing and

Procurement Recording Receiving
Acceptance Distribution
Commodity Frequency
Seaweeds Cuttings 5x per year

Distribution to Grow-out, Preparation of

Planting
farmer Harvesting Maintenance Farm
(Nursery)
members and Monitoring Implements
 1. Procurement –The General Manager will canvass three (3)
prospective supplier to seek for a lower price but must pass
the quality standard.
2. Inspection and Acceptance-The General Manager shall be
the person responsible for the inspection of the inputs
delivered by the supplier.
3. Recording –The bookkeeper shall record the delivery of
inputs.
4. Releasing/Distribution to cluster members – Releasing
shall be done a day after the delivery of inputs at the
association storage area to be managed by the General
Manager and the BOD; and the Production Supervisor.
5. Receiving - After the product delivery to the association the
bookkeeper/secretary will provide receiving copy to the
supplier for the transparency of the product also to track
the product record.
6. Preparation of Farm implements – Cluster groups shall
prepare the production lines for planting of propagules
7. Planting (Nursery) – each cluster members shall maintain a
nursery (0.25 hectares, 2MT of fresh seaweed propagules)
8. Grow-out, maintenance and monitoring - Seaweed will be
grown, maintained and monitored for at least 2 months and
ensure the health of the seaweeds propagules
9. Harvesting – Fresh seaweed propagules are harvested and
are placed in motorized flatboats or seedling bins.
10. Distribution of to farmer members – propagules and farm
implements are distributed to individual farmers based on
their registered farm area with the MLGU.

C. Machinery and Equipment

1. Fixed Assets/Property and Equipment

The enterprise’s equipment only includes following:

Facilities/
Description Quantity Photo
Equipment
Dimension: 3m x 10m
Location: ______________

Each solar dryer will be

constructed using light materials,
Floating
reinforced with wooden post and 8 units
Solar Dryer
nets as bed to seaweeds in drying
process.

Each unit can accommodate 1,800

kilos of fresh seaweeds.

Rake Stern type of pumpboat with

Kingston 16HP engine and with
dimensions equivalent to ≤3GRT

Motorized To be used in the daily

2 units
flat boat maintenance of the farm and in the
delivery and transport of seaweeds
cuttings to the farm, harvested
product to the post-harvest area,
and finished product to the buyer.

Cutting tool characterized by a

native hardwood and a steel blade
Cutting
that is used in the preparation of 6 pieces
tools
farm implements, planting and
harvesting

A scale of 120 kg carrying capacity

Weighing
to be used in weighing the dried 1unit
scale
seaweeds.
Moisture
analyzer

2. Safe Keeping, Repair and Maintenance

Pump boat operator will be in-charge in the regular care, safe

keeping and maintenance of the boat. It will be properly placed
in a safe place where there is no strong waves. Manager will be
in-charge of other machine and equipment.

Schedule of Cleaning and Maintenance

Facilities\Equipment Responsible Schedule for

Position Maintenance
Solar dryer Caretaker Monthly
Pump boat Caretaker Every usage
Cutting tools Farmers Weekly
Weighing scale Caretaker Monthly

In case of repairs and maintenance costs, the operator will fill

up requisition form/ purchase or repair request/ or any forms
necessary, for approval of the manager.

3. Tagging/Marking of farm implements

Upon receipt of machinery and after every new purchase by

the proponent, the equipment will be marked by the
bookkeeper with the supervision of Chairman of BASEFA with
the following:
 name of Cluster
 name of property
 date granted/acquired
 equipment/ vehicle number
  cost

The bookkeeper will ensure that the above mentioned

properties are properly recorded to the book of accounts of the
cooperative.

4. Registration/Insurance Coverage

Manager will ensure that the boat will be registered in the

Municipality and BFAR. (PCIC Insurance to follow)

5. Disposal or Sale of Property and Equipment

Any disposal or sale of property and equipment of the

association or the PRDP enterprise will be subject to
BOD∕BASEFAofficers approval.

6. Security Procedure

Manager and cashier will be responsible for safekeeping of

cash while assigned caretakers will be in-charge with the
motorized flatbed boat and dryers

D. Planting of Fresh Seaweeds

Two types of seaweed culture will be used in the enterprise; Deep-Sea

culture from late March to Early May and Bottom Line Method from early
June to late October

E. Harvesting

Harvesting of fresh seaweeds will be done after 45 to 60 days. Using a

knife or a cutting tool, propagules are removed from the production lines
and are placed inside the motorized flatboats. The harvested seaweeds
are then prepared for drying.

F. Drying

Moisture
Solar Drying Quality
Air drying Content
(Platform) Control
Determination
 The harvested fresh seaweeds are hanged and air dried to remove excess
moisture by letting the water drip for three (3) days. The pre-dried
seaweeds are further dried in solar driers for three (3) days depending
on the weather. During rainy season, the seaweeds are covered with
tarpaulin. Once the seaweeds are dried, moisture content will be
measured.

G. Monitoring and Quality Control

A monitoring team for each cluster composed of 2 members will be

formed. The monitoring team will monitor each clusters’ activities as well
as ensure that each cluster produce seaweeds of good quality

Quality standard for RDS - PNS/BAFPS 85:2012

o Free from impurities and debris (plastic, wood, dirt, sand
and other foreign matter)
o Free from contaminants
o Must be of one species only
o Must be mature – 45 to 60 days
o Packed in appropriate containers that will adequately
protect the products from normal hazards of transportation
and handling
o Must meet the following criteria
H. Packaging and Tagging( package in jute sack)

Dried seaweed shall be packed in jute sacks to maximize the volume of

the RDS and for easy handling during transport.

Production manager/coordinator for each cluster will manage the

packaging and tagging of RDS with the assistance of a helper/farmer.
Each sack will be tagged with the following information:
o Name of farmer
o Address/cluster
o Weight
o Moisture content
o Date harvested and dried

I. Storage and Product Inventory

An Officer will be in-charge for the inventory of the products. The

personnel must observe first in-first-out policy. Packed RDS are stored
properly inside the warehouse prior to delivery to the buyers. They
placed on top of pallets

J. Waste Disposal

Non-biodegradable waste will be disposed through proper waste

management.

K. Management Information Reporting Plan

Title of Report Source Contents Frequency End User
Monthly Manager Summary of results Monthly BOD
Business Report for the period:
Financial, Physical,
Production Issues and
Constraints, Actions
done, Targets for the
next period
Monthly Bookkeeper Sales report for the Monthly Manager
Financial period (Cash, A/R) BOD
Report Expenses for the
period
Profi& Loss for the
Period
Issues and Concerns,
Actions done
Quarterly Bookkeeper Budget vs Actual Quarterly BOD
Budget Financial Report
Variance
Audit Report Audit and Audit Findings and Monthly BOD
Inventory Recommendations
Committee

VII. Personnel or Laborer Policies and Procedures

A. Hiring Policies and Procedures

 The Manager will determine the need/vacancy for another staff or

employee.
 The BOD will be the one to decide or approve.
 The Manager should set qualification/criteria for screening.
 The Manager will approve noted by the BOD Chairman the newly
hired personnel.
 Newly hired personnel will undergo OJT without salary but with far
allowances within 15 days.

B. Terms of Employment

The association only employs regular employees which are described as

office staff regular reporting to working or operational days of the
association. Regular employees will enjoy the cash and leave benefits
being offered by the association. The regular employee will be subject to
regular staff appraisal but will not subjected to a yearly renewal of
employment.
C. Benefits

Cash benefits will depend on the availability of funds/income of the

association. The following are the benefits that the employee may avail:
a. SSS
B. Pag-ibig
c. Philhealth

D. Type of leave of absence allowed

A staff can avail a leave if he/she is one year in service. Leave of absences
shall be filed 5 days before the actual leave.

E. Resignation and Termination

Resignation:
 Voluntary resignation should be signifiedformally at least 2
months before effectively.
 This is without separation pay

Termination:
 The following cases will be the basis for termination:
 Separation pay subject to Philippine Law standards with BOD and
BASEFA Officers approval.

F. Grievance Mechanism

The association has an existing Grievance Redress Mechanism Committee

which is composed of the Committee Chairman, and Four (4) Member.
The committee shall be responsible for the receipt of any and all
grievances pertaining to the project. Grievances shall first be resolved at
the PG level before elevating it to the next level for resolution, should the
need arise. Utmost effort shall be exerted to try and resolve grievance/s
at the PG level. For purposes of this project, the Municipal Grievance
Point Person shall be constituted as the Grievance Committee at the
MPMIU level and the Grievance Point Person of the PG, at the PG level.

G. Disciplinary Action/ Penalties

In an event that the employee has violated the cooperative’s code of
conduct and policies, he/she will be subjected to disciplinary action.

The association has the right to terminate an employee at any time for
any of the following reasons:
  Serious misconduct or willful disobedience in connection with
his work
 Fraud or willful breach of trust by the employee towards
management and his immediate supervisor
 Any incident of crime or physical offense against another
employee or the management and even to his immediate
family.
 General or specific instances demonstrating serious
misconduct willful disobedience, careless or habitual neglect in
the performance of his duties.

If needed, a legal case against the employee will be filed.

H. Staff Training and Development

The association provides opportunities to its entire employee to further

enhance their knowledge, skills, abilities and attitudes that will assist
them in their job performance and boost up their career enhancement
and advancement. This policy is designed to ensure that the privilege
employees shall likewise exert their best efforts to impart their
knowledge and expertise gained for the benefit of the association and
employees. Trainings will focus on financial, bookkeeping and recording.
The following are the implementing guidelines:

1. Training cost is determined per training as specified by the

program
2. For the duration of the training period, the employees are
expected to complete the training period allotted to and not to do
any act that may jeopardize his stay in the training facility.
3. The employee shall exert his best effort to impart all the
knowledge, expertise and other valuable training learned and
acquired from his training to the association, render reports or
conduct seminars and other related activities.
4. Upon completion of his/her training, the employee shall promptly
submit a training report an expense report to liquidate and
account for all expenses advanced.
5. All training materials shall remain the property of the association
and should be turned over to the manager as theassociation’s
reference materials.
6. The participants must discuss or feedback the knowledge that
he/she learned from the training when there is a request.
 VIII. Marketing/Trading Procedures
A. Delivery/Shipping and Payment and Collection*

Temporary Storage Manager or the Buyer will pick-up

(Barangay Hall) of Marketing Supervisor the product at the
the Association will coordinate for seaside.
the date of delivery

Treasurer and Marketing Manager Upon pick-up, buyer

Manager to conduct
appropriate Cash
Collection and Issuance
of Official Receipts
will consolidate the will fill-up order slip
required volume and submit to
ready for hauling Manager or
Marketing Supervisor

Bookkeeper records
the sales for
documentation

*Note: The association will only accept cash on delivery (to be finalized
with the buyer)

B. Refund and Exchange

Refund and exchange will not be applicable in the enterprise.

C. Ordering Procedures

Manager or Marketing Buyer will provide Treasurer and

Supervisor will
communicate to the buyer
regarding on the date of
delivery and volume of
dried seaweeds to be
delivered.
the required amount
base on the volume
of seaweed to be
delivered.
Manager to conduct
appropriate Cash
Collection and
Issuance Receipts
Bookkeeper records
the sales for
documentation
 D. Services

The enterprise will provide 728 kilos of seaweeds cutting to members

that will be planted on 9 meter by 100 meter PE rope.

a. Members

Members will automatically Member will harvest Supervisor will confirm and
avail the seaweeds cuttings their fresh seaweeds arrange the schedule for the use
and planting materials of driers.

Bookkeeper records The Manager/Treasurer deducts

the for the service fee and other
documentation deductions (such as payment for
the use of drier upon payment
upon farmer delivery of produce

b. Non-members

Farmers need to fill-up

the reservation form for Bookkeeper records for Production Supervisor will
approval of the Manager documentation confirm and arrange the
or the Production schedule for the use of drier
Supervisor

*Note: Payment for the reservation fee will be cash-basis only.

 E. Supply of Raw Materials

Supply will be based on the harvested seaweeds by the members of the

association and neighboring suppliers.

F. Customer Complaints Handling

Any customer complains should be received and resolved by the

Grievance Point Person. In the event that it cannot be resolved by the
Grievance Point Person, it will be elevated to the Grievance Point Person
in the barangay. Any customer complains, resolutions, and updates
should be written or well-documented.

G. List/Directory of Buyers with Volume Requirements and

Specifications

Committed Volume of
Contact Contact
Name of Buyer Dried Seaweeds per
Person Details
Year from JIFA
Zamboanga Sea and Joan Favila Barangay I,
Agri Products Roxas, 25,000
Palawan
EL Agri Marine Anita Purok I,
Products Belgar Barangay
30,000
II, Roxas,
Palawan
TOTAL 55,000

IX. Finance Procedures

A. General Guidelines

o The financial policies and procedures shall conform to the principles

of good governance, namely functionality, transparency,
accountability and participatory decision making.
o Segregation of duties shall be observed at all times to ensure check
and balance and the integrity of financial data.
 o The main bank signatories shall be the BOD Chairman, General
Manager and the Treasurer. In case of their absence, alternate shall
be appointed by the BOD and Officers.
o All accountable officers primarily treasurer and bank signatories shall
be bonded.
o The bookkeeper is the custodian of all financial documents
o All accountable forms shall be kept in check at all times.
o Addition method of accounting shall be used when practicable.
o All assets shall be adequately insured.
o All other policies and guidelines such as but not limited to Operations
and Maintenance, Marketing, and Recruitment that affect financial
management shall be respected.
o This policy shall be reviewed, updated or revised when necessary by
the BOD and officers and endorsed to the General Assembly for
ratification.

B. Capital, Fund Usage And Funding Sourcing

The project requires a total investment of P 2,353,019.05 .The JIFAwill be

putting up Php 499,839for the small works, Php 289,200.00 for their
production Tools and Equipments, Php 506,390.00 for their production
supplies and for the other cost Php 1,057,590.00,000 which include
804,090.00 of Labor as its equity. Out of the total amount, only Php
1,215,543.24 will be sourced from PRDP-GEF.

C. Preparation, Approval, And Release Of Budget

 The annual budgeting shall be aligned with the development and /or
business plan of the Association.
 The budget shall be prepared by the Budget Committee of the
association created by the Board of Directors and Officerswhich shall
be composed of the following members, to wit:
Chairman : BOD Chairman
Vice Chairman : Manager
Members : One BOD member
Procurement Committee Chairman
Treasurer
Bookkeeper
 Annual budget shall be prepared on the month of December and shall
be submitted to the Board on the month of January.
  Budget preparation shall cover the following:
1. Detailed Estimates of Revenues
2. Operating Expenses
3. Administrative Expenses
4. Capital Outlays
 Assumptions to be considered in preparing the Budget:
1. Revenues will be based on the previous year’s actual figure
plus 10-20% increase;
2. Salaries and Officers Honorarium shall be based on the
BODs and Officers approval for the proposed increase;
3. Other administrative and operative expenses shall e based
on the prevailing rate, inflation rate, or 10% increase in
previous years results whichever is most applicable;
4. Assumptions stated above shall be applied in such a way
that the Net Income of the cooperative will not be less 10%
of the previous results.
 The Budget shall be presented to the BOD and Officers for
deliberation and approval. The approved budget will be presented to
the general membership during first regular meeting per year for
confirmation/approval.
 The Audit and Finance Committee shall conduct regular review and
monitoring of the budget.
 At least quarterly Budget Variance shall be prepared by the
Bookkeeper for submission to the Board of Directors and Officers for
review and evaluation.
 Supplemental Budget may only be prepared if deems necessary and
depend on the availability of funds

D. Cash Receipts

o Persons handling cash like treasurer and other deputized personnel

shall be bonded.
o All collections and receipts shall be received and issued Official
Receipt by the Treasurer. The General Manager shall appoint
deputized or alternate Treasurer in case of absence of the Treasurer.
o All collections shall be deposited intact within the day especially when
it reaches P10,000.00. All collections after banking hours shall be
deposited on the next banking day.
 o Undeposited collections must be kept in a safety deposit box or vault.
o All collections and receipts shall be recorded and the treasurer must
maintain the cash book on a daily basis.
o The treasurer shall prepare a Daily Collection and Deposit Report
(DCDR) and submit to the Manager. A copy of the approved DCDR
shall be forwarded to the Bookkeeper together with issued OR and
deposit slips for posting and recording in the books of accounts and
safekeeping.
o Surprise cash counts shall be conducted by the Manager, and/or the
Audit and Finance Committee at least once a week.

E. Disbursements

o All payments shall be supported with approved Disbursement

Voucher (DV) and complete attachments.
o The DV shall be prepared by the Treasurer, certified by the
Bookkeeper as to availability of funds and approved by the General
Manager and/or BOD Chair, depending on the financial authority,
pursuant to existing policy of disbursement.
o The authority to approve payments for the respective official shall be
based on the following:
Manager - up to P 5,000
Manager & BOD Chairman - 5,001 up to 50,000
Manager & Majority of the BOD - 50,001 and above
o One check or withdrawal slip for every approved DV shall be
observed. No pre-signing of blank check or withdrawal slip.
o Cash advances shall be allowed for travel and emergency purchases
(up to 50,000 only). Cash advances must be liquidated within 5 days
after purpose has completed
o No new cash advances shall be allowed unless the previous cash
advances are fully liquidated and/or refunded.
o When procured through shopping, canvass from at least three
suppliers for purchases shall be made to ensure quality and favorable
prices before tendering Purchase Orders.
o The treasurer shall prepare the Report of Disbursements monthly and
forward to the Bookkeeper together with copies of Disbursement
Vouchers and supporting documents.
o All DVs and supporting documents shall be stamped paid or crossed
to prevent re-use and double payment.
F. Petty Cash Fund

o A petty cash fund (PCF) amounting to (Php) shall be established to

defray small and petty expenses. The amount shall be approved by
the General Manager. A checklist of eligible expenses may be
prepared.
o The treasurer shall be appropriately bonded.
o Disbursement from the petty cash shall be supported with petty cash
vouchers (PCV) and Official Receipts, sales invoice or
acknowledgement receipts.
o Single-receipt disbursement from the PCF shall amount to not more
than 20% of the established petty cash fund.
o Petty cash fund shall be liquidated within 15 days and can replenish
when the utilization reaches 75%. DV for fund replenishment shall be
supported with Liquidation Summary complete with supporting PCVs
and other attachments.
o Cash on hand must be kept in a safety deposit box or vault.
o Surprise cash count shall be conducted by the General Manager or
Audit and Inventory Committee on a once a week basis.
o The treasurer shall establish and maintain a petty cash book.

G. Inventory Management

o The project manager who will handle both the warehouse and
association fixed assets.
o The Audit and Finance committee shall conduct inventory count twice
a month.
o Acceptance of delivered stocks shall be adequately inspected, counted
and certified by project manager as to quantity and quality of goods
received.
o Appropriate tagging or labeling of stocks shall be observed for each
class and variety.
o Inventory costing shall follow First in First out (FIFO) method.
o Stocks shall be kept safe in locks and keys.

H. Fixed Asset Management

o The management shall prepare preventive maintenance program.

 o The property custodian/project manager shall establish and maintain
property ledger cards. He/she shall ensure that pertinent
registrations and licenses are kept up to date.
o All property and equipment assigned to officers and employees shall
be issued a memorandum receipt signed by the responsible person
and approved by the general manager. A copy of the MR shall be kept
by the property custodian.
o Straight line depreciation method shall be used. The economic useful
life for each asset shall follow the PRDP I-REAP guidelines.
Depreciation expense shall be recognized one month after purchase.
o Disposal of unserviceable assets shall be endorsed by the
management to the BOD and Officers. The BOD shall issue guidelines
on the disposal procedures.
o No asset shall be borrowed, removed or taken out without written
approval from the Project Manager. All related expenses and damages
on the borrowed assets shall be borne by the borrower.

I. Audit And Monitoring

o Monthly Financial Reports shall be prepared and submitted to the

General Manager one week after the end of each month. Annual
Financial Statements shall be completed by the end of January.
o Separate financial reports shall be prepared for each product line.
There should be a system of allocation instituted for shared costs.
o The financial report shall be subjected to external audit. The
independent auditors report shall include findings and
recommendations on the result of the audit and basic financial
analysis particularly on solvency and profitability.
o The Audit and Finance committee shall conduct internal audit
monthly. The audit report shall be submitted to the management
forcomments. Final audit report shall be forwarded to the BOD and
Officers, copy furnish the general manager.
o Financial reports, i.e. cash position, financial condition and statement
of income, shall be posted in the association bulletin board or any
conspicuous places as determined by the management.
o The bookkeeper, treasurer and the production supervisor should
reconcile their records regularly.
o Monthly meetings shall be conducted to monitor financial and
operational status
 J. Allocation And Distribution Of Income

Five percent (5%) of the total fund of the association shall be set aside for
the tourism purposes, additional Five percent (5%) for the social that will
be used for emergency purposes of any member of the association while
Twenty percent (20%) shall be set aside for association fundfor another
project, ten percent (10%) for other expenses and the remaining sixty
(60%) will be divided equally by the members of association.

X. Sustainability Component

a. Johnson Island Fisherfolk Association will continuously use every

opportunity to train, educate and advocate associations among the
existing and future members of the cooperative.
b. The Johnson Island Fisherfolk Association will have plans of expansion in
future to cater the demands of seaweeds locally and internationally. The
associations will conduct trainings and meetings to encourage more
members to go to seaweeds farming. In order to encourage the inactive
members to be an active member the association will discuss the benefits
and paybacks they will have in return and once they witness the progress
of the enterprise.
c. The association will continuously seek technical assistance from any
concerned agency for another source of fund to develop another
livelihood specifically in Department of Agriculture (DA) for technical
assistance, trainings, and interventions can provide for production
support up to processing.
d. The association will develop strong linkages to partner buyers and
suppliers for the sustainability of the project.
e. The association will also strictly implement the policies and procedure on
this operations manual and regularly update the manual to make it more
relevant in the industry.