Day 1 – March 3, 2020 Recap

1. The objectives of this planning conference or the reasons why we are conducting
this activity were presented by Director Estoperez, and these are to :

a. Confirm NFA’s new Mandate, Vision and Mission

b. Synchronize Programs, Activities and Projects (PAPs) with NFA’s new Mandate,
Vision and Mission
c. Cascade the 2020 Performance Scorecard and other indicators to Central Office
and Regional Office 2020 OPCRs
d. Prepare Marketing Plans for March to December 2020, 2021 and 2022
budgetary estimates
e. Identification of Programs, Activities and Projects (PAPs) and targets for 2021
f. To comply with DBM and other Government Agency requirements

2. Dir. Estoperez also gave an update on the Directives/Marching Orders given during
the October 2019 National Planning Conference—where almost all are already
complied with, with only a few to be confirmed with the Regional Directors.

3. Message / Directives / Marching Orders from the Administrator

a. The Administrator informed the body that she is happy to note that most of the
instructions given in the October 2019 planning conference have been complied
with, especially on our procurement operations.

b. In the last January 27, 2020 meeting with the DOF Secretary, the NFA was
instructed to submit a report on the effects of RA 11203. Looking back, last year
was a transition period for NFA, and is a period of uncertainties for its
employees and stakeholders, because of the enactment of the said law.
However, even with the repeal of the regulatory function, NFA was still able to
perform the task it had been mandated to do.

c. In a congress meeting last February 24, 2020, she informed the congress that
drying of farmer’s palay is not a function of NFA, especially in the restructured
NFA where the manpower had been reduced to half. She recommended that
this should be a shared responsibility and that the mechanical drying needs of
farmers should be addressed by the RCEF.

d. On mechanical drying facilities, we will avoid procuring them because most of

the NFA warehouses are located beside hospitals, subdivisions and schools.
Instead, solar dryers will be part of the construction of the proposed
warehouses.

e. On NFA restructuring, we are still waiting for the approval of the president on
the SIP. The entitlement of the CTIs is still an issue to resolve. An amendment
to the previous resolution of the NFA council on the entitlement of affected
 employees, stating that it includes the CTI is being requested by the OP. NFA is
still l finalizing the said amendment.

f. The management will schedule an examination for all employees who are
interested to become branch managers of NFA. The examination will include
NFA operations, psychiatric examination, IQ test, medical test, and RA 9184.
This will be open to those who hold SG 18 up to SG 24 positions.

The Assistant Provincials Managers with (SG 23) and current Provincial
Managers (SG24) will also have to take the exam, if they are still interested to
stay with NFA.

Warehouse supervisor positions have been raised to SG 20, Warehouse Asst. to

SG II, while Drivers and MPOs had been retained. The branch manager position
is upgraded SG 25.

She directed the HRMD and the BTFMD to prepare a budget for the examination
process.

g. The implementation of the restructuring will be done in phases as recommended

by the CMT similar to the process undertaken in the implementation of EO 366.
The general guidelines has been approved by the GCG while the specific
guidelines is still in process, pending the approval of the SIP. Pursuant to the
memorandum approved by the GCG, DBM and DOF, implementation of the
restructuring shall commence within 2 months from receipt of the approved SIP
by the president.

h. To facilitate the processing of retirement documents :

o The IASD is directed to audit the perpetual leave cards of NFA employees.
Next in the audit schedule is the procurement that we made the last year.

o LAD is instructed to facilitate the resolution of cases specially pending

administrative cases.

o TOLA committee to check unacted matters for consideration.

o The regional TACs are to review pending unfinished business of accountable

officers. RTACs are to submit their reports as soon as possible to avoid
receiving complaints that an accountable officer cannot retire because his
liquidation is still pending in the committee.

i. Projects for construction and repair were already approved by the council
including the required multi year period last Feb. 18, 2020. The Finance group
has earmarked the amount of P336.72M for these projects.
j. Regional offices are requested to review their storage requirement and submit
their request for construction, if any, so it can be discussed and included in the
budget.
Personnel complement for the new warehouses will be requested to the GCG.

k. On Marketing support services, the management has already issued a TOR for all
marketing related services such as handling, milling, trucking. Regions should
report actions they have already taken and status of their on-going procurement
for these services. This should be fast tracked because we will be needing this
on the possible volume of stocks that will be coming in.

l. Since a uniform TOR have been issued, there should be a uniform interpretations
of these guidelines. For clarifications, everyone is encouraged to communicate
with the central office and avoid making your own interpretations.

a. We will continue to sell through our authorized retailers, not as a stabilization

function, but to have good quality stocks. We continue to buy palay, mill and
sell through these retailers, EO 51, and thru the 4Ps. The stocks for 4Ps will be
part of the buffer stocking, including requirements for EO 51 and for calamities.

b. On the 4Ps – during a congress hearing last February 24, 2020, the newly
created sub-committee on rice the congressmen asked on the requirement to be
able to release the budget of P31 B to NFA. They read a provision on the budget
of the DSWD which requires a certification as to the ex-farm price of palay. The
function of monitoring ex-farm price is with the PSA, but since the NFA still has
the mandate to monitor prices thru MRSD until June of 2020, it was agreed in
the said hearing that the NFA Council should issue a resolution certifying the ex
farm price of palay, as monitored by NFA.

c. The study on the optimal level of Buffer stocking had already been awarded. The
result of the study should be submitted within 6 months, or by July 2020.

d. Alloted P3M budget for repair of vehicles aged __ years. Evaluate repairs and
maintenance for trucks vis-à -vis buying a new one. Vehicles above 20 years
should be slated for retirement.

e. The proposed Specs of Authority on Financial Matters was not yet approved and
the Administrator instructed CPMSD and Finance group to review this matter
further (i.e. there is no council resolution authorizing the Regional Directors to
sign contracts).

f. Deputy Escarez was asked to instruct Atty. Irwin / NFA Council Secretary to
take a mandatory self quarantine of 14 days charged to his leave credits, due to
his recent travel to Korea. Consequently, an acting Council Secretary will have to
be assigned to prepare / finalize pending works in the Council.
4. Dir. Estoperez presented the new NFA Mandate, Vision and Mission, in line with RA
11203.

5. Dir. Estoperez updated the body that NFA’s score on the 2019 Performance
Scorecard is 100%, subject to the validation of GCG. She also presented the 2020
Performance Scorecard—the final version of which is to be approved by GCG.

6. Dir. Ablaza gave an update on the 2019 Client Satisfaction Survey:

a. NFA’s overall average customer satisfaction rating is 4.53 which is Very

Satisfactory.
b. Level of customer satisfaction rating is excellent (97% overall positive ratings).
c. All 3 customer satisfaction attributes (NFA Staff, Support to Farmers, and
Complaints Handling) drive overall customer satisfaction.
d. Perceived importance of the following service dimensions are key drivers of
overall satisfaction ratings:
•Sensitivity to farmers’ needs
•Scope of services
•Extent of assistance
• Familiarity to palay/farming business
e. Perceived importance of “quality of service” was not a significant driver of
overall satisfaction ratings.
f. Qualitative data highlights the theme of “Price of Palay,” “Staff” and “Efficiency
in Systems and Procedures” as the main reasons for positive overall
satisfaction ratings. Among the negative raters, the key theme is in the area of
“Facilities” –lacking in bodega.

7. Dep. Admin. Yacapin gave an update on Marketing Operations:

a. The total rice equivalent of NFA stock inventory as of February 27, 2020 is
9,599,861 bags, which is to last for 14.50 days based on Daily Consumption
Requirement (DCR) of 661,930 bags. Average Daily Sales is (ADS) 38,923 bags at
market participation of 5.88%.

b. Dep. Yacapin presented the IMR inventory per region. Regional Directors
committed to dispose their remaining IMR until the end of March 2020.

c. As of February, NFA was able to procure 1,561,228 bags out of the 1,385,580
bags target, or an accomplishment rate of 112%.

d. Dep. Yacapin congratulated top procuring regions for CY 2019: Top 1 – Region
III, Top 2 – Region IV, and Top 3 – Region II; as well as top procuring provinces
 for CY 2019: Top 1 – San Jose Occidental Mindoro, Top 2 – Nueva Ecija, and Top
3 – Isabela.

She also commended the top palay procuring per region as of February 27, 2020
Top 1 – Region IV, Top 2 – Region VI, and Top 3 – Region I.

e. As of February 27, 2020, NFA’s rice distribution accomplishment is 1,547,987

bags out of the 1,197,880 bags target, or an accomplishment rate of 129.23%.

Top distributors as of February 27 are: Top 1 – NCR, Top 2 – Region

III, and Top 3 – Region IV

f. As of February 27, 2020, NFA’s Palay Milling Accomplishment is 2,299,843 bags

out of the January to present cumulative target of 3,840,700 bags of an
accomplishment rate of 59.88%. The existing palay inventory as of February 27
is 11,745,165 bags, with recovery of 56%.

g. For re-milling, NFA has issued a total of 87,938 bags, received 82,703 bags, and
recovery rate of 94.05%.

h. Dep. Yacapin also discussed the status of the inter-regional rice dispersal as of
February 27, 2020.

i. Other Marketing Operations Matters

 Buying price of palay remains at ₱19 /kg as approved by the NFA Council,
until NFA receives the result of the study in July.
 Selling price of rice bought at ₱19 /kg remains at ₱25/kg.
 Secretary Dar’s additional instruction on NFA Procurement Strategies: NFA
must give priority to deliveries of Survival and Recovery Assistance Program
for Rice Farmers (SURE Aid) beneficiaries—the financing program of
Landbank for farmers.
 Proposed guideline on the processes for authorized distributors to be
discussed today (March 4)
 Regional Offices should submit their comments to the terms of reference
(TOR) on buffer stocking
 HRMD and GMOD to put into notice the SDO/Classifier pool for the main
harvest crop
 NFA should have a Pollution Control Officer, in accordance with the Clean Air
Act
 Request to review guidelines on the purchase of pesticides to prevent
oversupply.
 Secretary Dar asks for a report of Government Agencies who have requested
rice from NFA, which is to be presented on the next NFA Council meeting
  Regional Directors to instruct Provincial Managers to put notations on their
reports (which are submitted to SSID) on as to why some fields are
empty/blank
 Dep. Yacapin instructed Regional Directors to include in their reports, a
narrative of what is happening in the market as additional input when
reporting to the Secretary.
 Dep. Yacapin suggested to have a workshop on how to simulate the Business
Continuity Plan
 AO will come up and issue a position on the administrative matters,
however, all RDs and PMs must attend the REMANCOM of DA. Decision of
REDs affecting the NFA will have to be reported to the management at
Central Office.
 The Secretary created a committee that is conducting investigation and
evaluation pertinent to the procured and distributed dryers to NFA, LGUs
and Cooperatives.

8. AA Ambrosio presented the Updates on Finance and Administration

a. Proposed 2021 Budget Proposals and 2022 Budget Estimates

AA Ambrosio stressed the Important Timeline and Deadline on the submission

of CY 2021 Budget Proposals and Summary of Outyear Requirements to the
Department of Budget and Management (DBM) on May 11, 2020 per DBM
Circular Letter No. 2019-11 dated October 31, 2019. Submission shall include
the following:

 Statement of Financial Performance and Financial Position

 Cashflow Statement
 Sources and Uses of Funds
 Budget of Expenditures

b. On February 18, 2020, the NFA 2020 Corporate Operating Budget (COB) =
P91.398 Billion was approved by the NFA Council

NFA Thrusts and Objectives: Organizational Reform and Operational Efficiency.

 Ensure Buffer Stocking and Quality management

 Availability of Rice during Emergencies and Calamities
 Sustain Client Satisfaction
 Improve Costs Efficiency
 Develop and implement Competency Framework

c. Total uses for the FY 2020 Corporate Operating Budget (COB) amount to
91.398B which includes Procurement costs, Capital Outlay, Payment of
 Obligations, Personnel Services, MOOE, RA 11203 Retirement Package, interest
expense and other financial charges, and capital gains tax and docs stamps.

On the other hand, sources of funds include corporate receipts, asset

divestment/collectibles, government budgetary support: a) subsidy for buffer
stocking, b) RA 11203 retirement package, c) conversion of net lending, and net
lending loan obligation.

d. NFA DBCC and NFA Council approval of 2020 Multi-Year Capital Outlay Projects
which include:

 For 2020: Construction of 7 warehouses amounting to ₱242.71M,

construction of 1 RO amounting to ₱24.02M, and 7 truckscale installations
amounting to ₱33.75M. For 2021, Construction of 1 warehouse amounting to
₱33.24M, for a total of ₱335.72M

e. Status of Cereal Procurement Fund Balance as of Feb. 29, 2020

Sources:
2019 Carry Over CPF 0.665
Borrowings 0.504
Corporate Receipts 0.908
Total P2.077
Less: Procurement (78,061MT) 1.483
NET CPF as of February 27, 2020 P .594
Volume Equivalent in MT 31,263MT

f. Transitory Period and Full Adoption of Cash Based Budgeting pursuant to

Executive Order No. 91 dated September 9, 2019

 Infrastructure Capital Outlay Projects valid for obligation until December 31,
2019. The Completion of construction, inspection and payment shall be made
not later than December 31, 2020.
 Maintenance and Other Operating Expenses shall be valid until December 31,
2019. The completion and delivery, inspection and payment shall be made
not later June 30, 2020.

g. Compliance on the Submission of NFA

AA Gerry commended the Top 3 regions who submit their report on time (20 th
day of the following month): Top 1 – NCR, Top 2 – Region VII, and Top 3 – Region
I.

h. Release of Allotments/Sub-Allotments.
 Issuance of Allotment/Sub-Allotment for 2020 Priority Projects as identified and
approved by the DBCC shall be downloaded to the concerned CO Department/s
or Regional Office/s. The recipient CO Departments and ROs shall be responsible
in managing, monitoring and controlling the implementation of the projects
adopting Cash-Based Budgeting.

 For Comprehensive release of Allotments

o Personnel Services
o MOOE Regular and Recurring Goods and Services
o DBCC Approved Capital Outlay Projects
o NFA Council Approved Multi-Year Projects
o Palay Procurement Based on Marketing Plan/Corporate Operating
Budget

 For later release of allotments

o Retirement benefits
o Monetization
o Other Personnel Benefits
o MOOE requiring prior approval by the Head of Office
o Marketing Operational Services
o Others-Emergency and other Items of Expenditures due to Revision
and Extreme necessity and not included in the approved Work and
Financial Plan and Annual Procurement Plan

i. Issues and concerns of Directors:

1. Questions for TRSD

1.1. Director Alojado of CARAGA asked if they will still maintain the same
Guaranteed milling recovery (GMR) of 63% for Purity 1A and 1B.

ANSWER: Director Martinez said that even if you buy PD1A at P19 and
PD1B at less than 19 i.e. 18.80 but still gets 63 % in both the premium just
goes to the miller. We can maintain it at 63% for A and B but historically
for the past 5 years, we only bought 5% PD1B, mostly we buy PD1A. So
as far as TRSD is concerned we might as well increase it to 64 or 63.5%
because we mostly buy PD1A.

Director Pagayunan of GMOD said that there is already a formula to be

used by field offices in computing for the guaranteed milling recovery and
said this will be used by all NFA offices. The guidelines will be revised to
effect this formula.
1.2. Director Piolito Santos of Region III recommended to give technical
knowledge to Regional Calibrators so that when the truckscale
malfunctions they can ably repair it and not call for help from TRSD.

Directive : Regional Engineers / Calibrators should do the job.

1.3 Director Hermano of Region X asked on the acceptability of PIK as mode of

payment in milling. He informed the body that the price of darak has
gone down because of the ASF, and the millers are already complaining,
and does not want to accept PIK anymore.

Answer: Director Lemuel recommended to use the new formula for

computing the guaranteed milling recovery because this will address the
non-acceptance of the millers. The guidelines on milling will be amended
to include the new formula.

1.4 Director Villafuerte of LAD asked TRSD on the plans for the NFA warehouses
functionality of new warehouses that are not in production areas.

Answer : The Administrator answered that this will be needed for

distribution.

1.5 Director Yolly Navarro of Region I asked LAD on the lot in Mangatarem
which had been encroached for about 2 hectares and which had already
been fenced and with facility.

Answer: Director Villafuerte reminded her that all requests for legal
opinion should be coursed through AO but she answered that in their case,
LAD will need documents to evaluate what legal action should be done.
Director Navarro was also instructed to refer her request to the AO.

1.6 Director Navarro also inquired on their request for council approval for
the multi-year contract for security services.

Former Region 1 Director Jaime Hadlocon informed the body that the
bidding for the said services was already done but the contract was not
approved by the Council. They have sought legal opinion on this and the
LAD opined that the bidding is legal and can be considered as multi-year
contract.

Answer : The Administrator said that multi-year contract should have

prior approval of the council and funds availability. She said that the said
project must have been included in the approved COB for the said year so
they can attach the approval of the council for the COB for the said year.
1.7 Director Piolito Santos of Region 3 recommended to change the age of
Warehouse Supervisors who will not be given stock accountability, from
63 years old to about 1 year or 6 months before retirement.

Answer : Atty. Koronel of HRMD answered that they will review this
proposal with CPMSD. A proper recommendation should be submitted so
HRMD can study the proposal further.

1.8. Director Santos also recommended that Warehouse Supervisors who have
big shortages to be considered “in limbo” in the restructuring so we can
give the positions to others.

Answer : The administrator informed the body that the Warehouse

Supervisor position has been given a new title and new salary grade in the
new structure so they are considered affected.