EDM Manual 1

The

Davao Oriental State College of Science and Technology

Enterprise Development and Management

MANUAL OF OPERATIONS

City of Mati, Davao Oriental 8200

January 2010

EDM Manual 2

ACKNOWLEDGEMENT

Coming up with an IGP Manual for the use of DOSCST is definitely one of the major projects of the present leadership of DOSCST. The adoption of this Manual prepared by the Chair of the Enterprise Development and Management Council is tasked to do the work that brings realization to such project. Accordingly, the undersigned, as President of DOSCST, wishes to extend, for and on behalf of the institution, its profound appreciation to the following persons for the services they have provided towards the completion of this Manual: First and foremost, to Prof. Rizaldy V. Maypa for patiently conceptualizing this Manual, Dr. Herminigildo S. Torreno, for his untiring effort for the revisions and grammatical corrections of this Manual, Dr. Anthony C. Sales, DOST Regional Director and DOSCST Trustee, who patiently critiqued this Manual into its final form, and to Mr. Jonathan S. Cabrera and Mrs. Cheryll B. Oray, for their technical support and cooperation. To the leadership of ACAP under Dr. Virgilio G. Oliva as President and of Region VIII SUCs under the chairmanship of Dr. Crescencia V. Chan-Gonzaga for allowing the use of their early works on IGP Manual Preparation as among the reference materials used in packaging this DOSCST EDM Manual of Operations. Finally, my appreciation also goes to Prof. Reynaldo M. Nogodula, College and Board Secretary, for his assistance in reproducing this Manual. GRACE G. LOPEZ, Ed. D. DOSCST President

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PREFACE

The current government policy of gradually reducing national subsidy to the maintenance and operating budgets of state schools brings to fore the challenge and necessity for state universities and colleges to make income generation a major concern in their operation. This development, in turn, has provided impetus for Davao Oriental State College of Science and Technology to come up with a Manual of Operations for income generating projects (IGPs) to serve as a ready reference material for SUCs. Hopefully, SUCs, particularly the beginners of IGP undertakings, will find this Manual helpful as an effective guide and source of inspiration in their effort to set up their respective income generating programs. As reference material, this Manual contains basic information on the importance and role of IGPs in SUCs (Section 1), factors to consider in the production for income (Section 2), organization and management of IGP (Sections 3 and 4), other occasional personnel (Section 5), existing college projects (Section 6), general operational policies and guidelines (Section 7), management control (Section 8), workload credits and benefits (Section 9), concluding provisions (Section 10) and BOT-Approved Rates and Rentals (Appendix A). This Manual is written in simple, clear and concise language for easy comprehension. While it is mainly intended for IGP managers, leaders and other personnel involved in IGP operations, the Manual is also highly recommended as reference material for college students pursuing business and management related courses whether in agriculture, trades and industries, home economics and social science disciplines. GRACE G. LOPEZ, Ed. D. Chairman EDM Council, DOSCST

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iii

Credits

First Draft : Rizaldy V. Maypa, MPS-PAM Revision and Final Draft : Herminigildo S. Torreno, Ph.D. Consultant : Grace G. Lopez, Ed.D. Chair, EDM Council Technical Support : Jonathan S. Cabrera Cheryll B. Oray

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Table of Contents Page Title Page i Acknowledgement ii Preface iii Credits iv Table of Contents v Introductory Provisions 1 Rationale 1 Statement of Purpose 2 Institutional Vision 2 Institutional Mission 2 Production for Income 3 Goals and Strategies 4 Objectives 5 Organizational Structure 6 Composition, Qualifications and Functions 6 College President 6 EDM Council 7 IGP Manager 8 Farm Coordinator 9 Project-In-Charge 10 IGP Support Staff 10 Other Occasional Personnel 10 Products Central Outlet 11 Existing College Projects 12 General Operational Policies and Guidelines 12 Planning-Establishing a Project 12 Funding 13 Procurement and Use of Inputs 13 Feasible Contract Farming 13 Marketing of Agribusiness Products 14 Management Control 16 Instruction 16 Research 16 Extension 16 Labor Pool 17 Land Utilization 17 Machinery and Transport Services 17 Workload Credits and Benefits 17 Coverage 18 Guidelines for Profit Sharing 18 Concluding Provisions 18 Appendix A 20

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INCOME GENERATING PROJECTS Statement of Operation

For the Year Ended December 31, 2009

Total Income Collections for CY 2009 Php 774,600.00 Add: Account Receivables 30,666.00 Total Income for the Year Php 805,266.00 Less: Operating Expenses Incurred and Obligated Services 157,695.50 Employees Benefits 28,818.77 Supplies, Materials & Medicines 319,261.00 Travel 10,192.00 Labor Expenses/Copra 23,253.82 Fuel 3,620.10 Maintenance Expenses 4,570.00 Workbook Production 48,339.75 Miscellaneous Expenses 9,413.50 Total Php 605,164.44 Net Profit Php 200,101.56

============ Other Structures 23,636.00

============ Livestock (obligated, December 2009) 105,000.00 ============ Livestock Inventory (as of December 31, 2009) Php 251,500.00 ============

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SUMMARY OF INVENTORIES OF ALL LIVESTOCKS (As of December, 2009)

PIGGERY PROJECT NUMBER OF

HEADS/VALUE TOTAL VALUE

REMARKS

Sow 3 @ P10,000.00 each P 30,000.00 Farrowed Farrowing Date:

1. Dec. 25, 2009 2. Jan. 1, 2010 3. Jan. 5, 2010

Boar 1 @ P35,000.00 each P 35,000.00 Guilt 7 @ P15,000.00 P105,000.00 Newly purchased on

January 21, 2010, averaging 90-96 kilos per guilt.

Piglets 34 @ P 2,000.00 each

P 68,000.00 Range (35-45 Days) Weaning Date:

1. Feb. 3, 2010 2. Feb. 6, 2010 3. Feb. 10, 2010

GOAT PROJECT Dewormed - Jan. 5, 2010 Buck 1 @ P 6,000.00 P 6,000.00 Does 1 @ P 3,500.00 3,500.00 Pregnant Doeling 1 @ P 3,000.00 3,000.00

SHEEP PROJECT Dewormed - Jan. 5, 2010

Ram 2 @ P 2,500.00 P 5,000.00 Ewes 9 @ P 2,000.00 18,000.00 2 Ewes Kidded (1M/1F) Kids 2 @ P 1,000.00 1,000.00

CATTLE

PROJECT/CARABAO

Cow 2 @ P 25,000.00 P 50,000.00 (Bred) Breeding Date: Jan. 14, 2010

Hiefer 1 @ P 20,000.00 20,000.00 Dewormed - Dec. 29,2009 Carabao 1 @ P 12,000.00 12,000.00 Total Inventory Value P 356,500.00

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Preliminary Provisions

Section 1. Introductory Provisions

Article 1. This Manual shall be known as the Davao Oriental State College of Science and Technology Enterprise Development Management Manual of Operations, hereinafter called as EDM Manual Article 2. In the light of the current government policy of gradually reducing national subsidy to state schools, State Universities and Colleges face substantial constraints in terms of limited infrastructure facilities and financial resources. This can be addressed partly by SUCs through undertaking activities that generate income. With Income Generating Projects, additional resources are made possible and available to the Institution which can be used to finance unfunded programs and activities for instruction, research and extension.

IGPs also serve as good laboratories for classroom instruction and provide the students more learning opportunities relevant to the need and interest of the school as well as its faculty, staff and students as a venue for convenient training session in different fields like agriculture, vocational and fishery, professional education, information technology, research and other trade crafts. IGPs enable the faculty and staff of SUCs with working abilities to become productive members of the school, the students to earn while learning, and the young people in the community to have more job opportunities. Article 3. Rationale

The former status of agribusiness projects of the DOSCST had the ambiguous character of “laboratory-type” with less commercial perspective. The “laboratory-type” character evolved from the original concept upon which these projects had been established, the acquiring of practical skills by students. The “laboratory-type” management of usually small projects is unproductive. Their commercial orientation came only as a result of the growth and development attained by these projects. The potentials of these projects to generate income revenues had surfaced.

As these projects evolve and grow, there is a need to commercialize their

operation and management system thereby enhancing the capability of these projects to generate income. Also, operationalizing the management system enables the College to respond to the call of the Department of Budget and Management to increase generation of resources due to dwindling and minimal releases of Maintenance and other Operating Expenses (MOOE).

The reorganization of the College Organizational Structure on 6th of October

2008 as per BOT Resolution No. 2008-33 paved the establishment of the Enterprise Development and Management Division. The Office was created primarily to steer the IGPs in increasing productivity and profitability.

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Article 4. Statement of Purpose. The primary reasons for the establishment of IGPs at SUCs are summarized as follows:

a. Strengthen instruction, research and extension functions of SUCs as IGPs

provide facilities and technologies necessary for the hands-on experience of students, extensionists, entrepreneurs and farmers. The projects serve as “silent salesman” of the SUCs and powerful tools in disseminating technologies;

b. Generate additional income for the school to enable flexibility in financial management and attain fiscal autonomy;

c. Provide venues for faculty and staff members to hone their business acumen and augment their income;

d. Provide model projects that students may replicate after graduation;

e. Serve as vital contribution of SUCs to countryside development through the production of quality planting materials and other products accessible to low-income families; and lastly

f. Provide the institution the opportunity to maximize the utilization of its human and non-human resources.

Article 5. Institutional Vision

DOSCST envisions a socio-economically progressive society of well educated people having a strong sense of nationhood, nurtured by moral values, scientific thinking and peaceful co-existence.

The Davao Oriental State College of Science and Technology foresees a socio-economically progressive society of people with very high functional literacy, enough scientific knowledge and equipped with skills that make them productive.

The moral values inculcated in them provide the fiber to tolerate other

peoples’ culture and traditions in a peaceful co-existence which highlights their commonalities as one nation and one people moving to one brighter direction. Article 6. Institutional Mission The College provides a wide range of higher quality education in the sciences and technology as well as technical-vocational trainings that are relevant to people’s need and aspirations which match global changing opportunities. Need-based research and development activities that demonstrate entrepreneurial culture are pursued to complement the promotion of socio-economic progress in a healthy environment.

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The College is mandated to provide academic programs in science and technology, agriculture, engineering, teacher education, forestry, marine, technical and vocational education and other areas as may be instituted on the basis of national, regional and local development goals. It is also mandated to provide research and extension services to its primary clientele - the province of Davao Oriental and outwards.

Through instruction, research, extension, and production, the College aims to facilitate access, wider participation, the development and exchange of knowledge and technology throughout the regions in the country. It aims to be a catalyst for regional economic development and promote an enterprise culture in its staff and students and other clientele. Article 7. The Need for IGP Manual of Operations

The enactment and eventual implementation of RA 8292 in 1997 provided an impetus for SUCs to create and develop various corporate strategies to achieve fiscal autonomy. At the same time, the pressures for Chartered State Schools to generate additional funds for their maintenance and other operation expenses become more urgent as financial support from the national government started to decline since 1999.

Certainly, there are human and non-human resources at SUCs that can be

tapped to generate additional resources for their support if the appropriate procedures are known and favorable entrepreneurial atmosphere prevails in them. There are a number of the members of the faculty and staff with entrepreneurial abilities but their business skills and talents are not put to productive use because of the absence of adequate and clear guidelines and procedures on the operation of income generating projects. Unavailability of required resources, skills and procedures in operating and managing IGPs is not the norm of the majority of SUCs. This Manual aims to fill in this gap.

The experiences of some SUCs which have attained reasonable success in

their income generating programs have been drawn, examined and incorporated in this Manual. Hence, this Manual captures the strengths and desirable concepts and methods of these leading academic institutions’ operational procedures to come up with its own guidelines for IGPs.

Accordingly, it is hoped that this Manual will serve as a helpful reference to all

College constituents in their conduct of and efforts in undertaking profitable operating income generating projects.

Section 2. Production for Income

The Institutional Strategic Plan of the College for 2009 – 2013 specifies the

goals, strategies and objectives in pursuit of its mission on Instruction, Research, Extension and Production. This comprehensive Plan is hereby adapted in

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implementing production activities so as to complement as well the other functions of the College.

Sustainable Higher Income and Savings is the key result area that the

College wishes to achieve from its production endeavors. The establishment of profitable enterprises that last and in harmony with nature coupled with savings from productive operations is a clear indicator of success in the institutional attempt to be truly an agent of economic change for the better.

A high income suggests the effectiveness and efficiency of any business

enterprise. Earnings that are generated from good business practices and safe environmental principles could last indefinitely thus, augmenting the government subsidy. With judicious utilization of resources, savings could be used for other purposes that may enhance further organizational productivity.

Article 8. Goals and Strategies Article 8.1. Increased cost effectiveness

Any amount of fund or resources should be spent only on the identified priority and needs of the College. This is a business secret that everyone knows to keep a sound financial status. Such good financial management would redound to higher income and savings that could be used for operational expansion or investment. • Monitor and evaluate closely the projects for problem-solving, planning and

decision making • Maintain a lean administrative structure • Hire-pay people based on their merit and fitness strongly considering their other

competencies related to the job • Engage only in Income Generating Projects (IGP) that are sure gainers at

production size or volume known profitable • Adopt Good Business (Agricultural) Practices • Establish linkages for probable partnership

Article 8.2. Efficient collection and utilization of fund and resources Funds due to the College that have accumulated significantly should be collected with earnest and diligence inasmuch that charity is not among its mission yet. Likewise, accomplishing a work with the least expense, both in time and material resources, could result in savings beyond expectation. • Plan and procure equipment, materials and supplies that are fully utilized with

consideration to opportunity cost • Adopt cost-cutting mentality, practices and lifestyle • Utilize electricity only when necessary and without waste

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Article 8.3. Promotion of entrepreneurial culture The Chinese virtue of frugality, spending less than they earn, is something College constituents should learn. It is in acquiring the fundamental capability to run a business and earning significant profit that spark the spread of entrepreneurial culture. • Conduct seminar-trainings on technologies and skills with good business

prospects • Build up the capability of students and personnel involved in IGPs as well as

invited deserving clients on book keeping and basic accounting • Keep IGPs gaining high profit to motivate others (“Lead by example”) • Liaise the access for start-up capital from donors and financial institutions to neo-

entrepreneurs Article 9. Objectives The EDM Unit aims to unify and harmonize the generation of income and other resources by the various projects and activities of DOSCST. Specifically, the EDM Office shall: Ø keep at all times the College production projects profitable;

Ø establish at least one additional production project within a year that shall

generate income to augment the operational funds of the College; Ø provide always some opportunities for the training of students enrolled in

technical and/or special courses; Ø provide additional facilities for basic, applied and advanced research; Ø provide instructional materials/experiential learning that effectively promote the

instruction and extension programs of the College;

Ø pool the experts in the different fields of learning at the College for consultation, proposal and technical report preparation and, review for professional licensure examination, etc.; and

Ø demonstrate to students and other clients the correct conduct of economic

feasibility studies.

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Section 3. Organizational Structure Article 10. The organizational chart shows the management levels that shall oversee or implement activities aimed to generate income. Generally, there are five (5) levels of management in the EDM organization; namely: The College President, the Enterprise Development and Management Council, the IGP Manager, Farm-In-Charge and Projects-In-Charge. The IGP Manager is assisted by the Support Staff.

Figure 1. Organizational Structure of the Enterprise Development Management Unit

Section 4. Composition, Qualifications and Functions of Various Management Levels

Article 11. College President The President spearheads all the Income Generating Programs of the College. His/Her functions and responsibilities in the governance and management of these Programs are inherent to his/her position as SUC head which are as follows:

11.1. To provide the vision and the overall direction of IGPs; 11.2. To oversee the overall implementation of policies as adapted by the

EDM Council and confirmed by the Board of Trustees; and 11.3. To act and preside as Chairman of the EDM Council.

Facility Rentals Project

* Gymnasium * Canteen * Audio Visual Room * PSWF Room * Speech Laboratory * Other facilities

Academic Related Project

* Instructional Manuals & Workbooks * Data & Analysis Center * Feasibility Studies * Others

Products Central Outlet

Animal Projects- In-Charge

* Swine * Poultry (native) * Goat/Sheep * Cattle

Plant Projects-In-Charge

* Banana * Bio-organic fertilizer * Calamansi * Coconut * Commercial Nursery * Anthurium * Laboratory Projects

Farm-In-Charge mMMMManag

erManager

Clerk

IGP Manager

President EDM Council COAA

BOT

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Article 12. Enterprise Development and Management Council The EDM Council shall be composed of nine members representing the various management units of the College that are empowered to make institutional decisions pertinent to various aspects of generating income and keeping savings.

Article 12.1. Composition

The composition of the EDM Council shall be as follows:

a. College President – Chairperson b. Vice President for Administrative Affairs – Vice-Chairman c. Director for Instruction d. Director for Finance e. Director for Research and Extension f. Director for Planning and Development g. General Manager, Income-Generating Programs h. Head, Teaching-Learning Assessment Center i. President, Supreme Student Government

Article 12.2 Functions The EDM Council shall have the following functions:

a. Formulates policies and programs that lead to generation of income;

b. Reviews, evaluates, and resolves the approval of annual Project Procurement Management Plans of income generating activities upon the recommendation of the IGP Manager;

c. Evaluates and resolves the need of appointing and designating the lower

levels of administrative personnel or dismissal of the same from the IGP, for cause after due process;

d. Evaluates and resolves the need for a consultant, project analyst or other experts needed that are referred to as “Other Project Personnel” in this Manual;

e. Approves the suspension and/or termination of the operations of non-viable projects; and

f. Confirms or reverses the decision (whether guilty or not) of the Committee created and empowered to investigate and adjudicate on conflict within and among IGP personnel for the President to implement as guided by existing College Rules and issuances of higher authorities.

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Article 12.3 Council Chairperson

The Council Chair has the following functions: a. Presides over all meetings of the EDM Council ; b. Insures that the EDM Council performs its task of formulating policies,

rules and regulations; and c. Represents the Council in all meetings within and outside of the College

that pertains to policies on generating institutional income.

Article 12.4. Auxiliary Board and College Secretary

The Auxiliary Board and College Secretary shall: a. Note down and prepare minutes of Council meetings; b. Keep records of all proceedings of EDM Council meetings; c. Assist in preparing reports and outgoing communications; and d. Perform other related works as may be assigned by the Council

Chairman or by higher authorities.

Article 13. IGP Manager The IGP Manager is the Chief Operations Officer and is responsible in the over-all activities of the Income Generating Programs of the Institution. Article 13.1. Qualifications of the IGP Manager

a. He must be at least an Assistant Professor or an Administrative Officer III b. Must have a strong background in economics, accounting or business

management. c. He has sufficient experience in running a business enterprise.

Article 13.2. Duties and Responsibilities

The IGP Manager shall have the following functions:

a. Assumes direct responsibility in the over-all operations and management of the Income Generating Program and, in the implementation of policies and guidelines to achieve efficiently the set targets of accomplishment and objectives;

b. Promotes a sense of responsibility, commitment, accountability, harmonious camaraderie, cooperation and coordination among projects’ personnel for smooth operations;

c. Initiates/coordinates planning and organizes manpower resources and activities of all IGPs for efficiency;

d. Conducts meetings with Farm and Projects-In-charge and other project personnel on operations, or any agendum relevant to the IGP;

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e. Conducts annual action planning with Farm and Projects-In-Charge, preferably at the start of business year to discuss/agree on the plans and targets, accomplishments and other matters related to IGP operations;

f. Delegates/assigns duties, responsibilities and authority to colleagues and subordinates as may be allowed by existing policies;

g. Recommends the appointment of Farm and Projects-In-charge and other personnel;

h. Conducts evaluation, study of the records, activities and programs, rates and charges of the various Projects/facilities for recommendation to EDM Council;

i. Prepares and submits quarterly and semi-annual reports on farm or life-related projects and non-life projects, respectively;

j. Submits an accounted Annual Report of the IGP program; and k. Performs other duties that may be assigned to him by higher authorities.

Article 14. Farm In-charge Article 14.1. Qualification

The Farm-In-charge must have the following qualifications:

a. technical expertise in at least one agricultural project; b. entrepreneurial capability in managing Agribusiness; and c. commitment to farm business and possesses dedication to his work.

Article 14.2. Duties and Responsibilities

The Farm-In-charge shall have the following duties and responsibilities:

a. Directs and oversees the management of the Demo-Farm in general; b. Acts also as Project-In-charge of the Piggery, or Poultry project plus one

small project; c. Prepares project proposal/business plan for the whole farm; d. Devises strategies for the marketing of the IGP products; e. Supervises also personnel/staff of other farm projects in the unplanned

absence of a Project Leader; f. Consolidates quarterly reports of every Farm project and submits these to the

IGP Manager; g. Initiates requisition (forms/vouchers) for supplies and materials needed; h. Keeps an updated records of farm transactions and activities; i. Recommends to the IGP Manager the hiring/dismissal of his project workers;

and j. Performs other functions as may be assigned by higher authorities.

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Article 15. Project-In-charge

Article 15.1. Qualification

He should have an expertise and competence on the Project he handles.

Article 15.2. Duties and Responsibilities

a. Plans and implements the day-to-day activities of his project; b. Plans and initiates the procurement of needed inputs; c. Keeps an updated records of farm transactions and activities; d. Submits quarterly reports on his project to the Farm In-charge; and e. Takes charge of production activities through, and along with the Farm Aide(s). Article 16. IGP Support Staff The IGP Support Staff shall have the following functions:

a. Assists the EDM Manager and Projects-In-Charge on paper works; b. Compiles reports and other pertinent documents of the various projects and

keeps safe these records; c. Assists in preparing the required periodic reports; d. Manages the Central Outlet/shop when necessary; and e. Performs other works as may be assigned by higher authorities.

Section 5. Other Occasional Personnel

Other Project personnel such as: consultant, project analyst, marketing analyst, and monitoring and evaluation officer may be hired on a case-by-case and short-term basis upon resolution of the EDM Council. He/She is to provide needed technical assistance or service in the operation and management of the IGPs.

Article 17. Consultant

A consultant is a Specialist in his field of study, who may concurrently be employed in the College as faculty/staff member or from elsewhere as a private person. He may be tapped to:

1. Provide expert’s services and technical advice to the EDM Council and

Project-In-Charge regarding the operation of the income generating program in general and the projects in particular;

2. Evaluate the yearly operation of IGP as basis for providing policy direction and decision; and

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3. Help identify and determine the problems encountered by a project and recommend possible solutions to these problems ( i.e. crops and livestock, pest and diseases and the like).

Article 18. Project Analyst

A project analyst shall:

1. Assist the Project-In-charge in preparing, evaluating, and analyzing feasibility

studies and/or prospective investment plans; and

2. Evaluates project’s financial statements and conducts business productivity analysis.

Article 19. Market Analyst A Market analyst shall be among others, a graduate of a business program major in marketing and with experience in micro-enterprise management.

1. Recommends to EDM Council or IGP Manager the most appropriate market outlet of IGP products based on his knowledge on (Prices, supply, demand, competitors, etc.); and

2. Recommends to EDM Council or IGP Manager policies on how to improve marketing efficiency.

Article 20. Monitoring and Evaluation Officer The Monitoring and Evaluation Officer shall among others:

a. Provide a required information based on data provided relative to IGPs operation and performance;

b. Reconcile statistical data, research analysis and economic evaluation of trends for forecasting; and

c. Participate in the planning process undertaken by the EDM Council and IGPs. Article 21. Products Central Outlet

The CPO shall be manned by a cashier-cum-storekeeper. A market aide shall be hired on-call basis when work is voluminous. This outlet is tasked to dispose the products produced by the different EDM income generating projects including additional items from its “buy and sell” ventures if there shall be any.

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Section 6. Existing College Projects Article 22. Existing projects as of December 2009 a. Animal Project Plant Project

Swine Coconut Laboratory Projects Poultry (Native) Commercial Nursery Calamansi Goat/Sheep Anthurium Bio-organic fertilizer Cattle Banana Cardava

b. Facilities/Furniture’s and Fixtures Rentals, and Fees Gymnasium, Audio-Visual Rooms, Speech Laboratory, Monoblock Chairs Conference Room, Tables, Oval, Mimeographing Machine, Canteen

c. Other Services and Sources Registration Fee/Seminar Training Fee Fines and Penalties Service Income Interest Income Bidding Document Miscellaneous Income Bond Premium d. Teaching-Learning Projects

Manual Workbook Speech Laboratory Statistical and Data Analysis Center

e. By-products & Refuse Materials Refuse materials Sale of old news papers f. Proposed Projects a. Tissue Culture Laboratory e. PSWF-DOSCST, R-XI IGP b. Pineapple Project c. Lakatan Project d. Self-Help Project

Section 7. General Operational Policies and Guidelines Article 23. Planning–Establishing a Project A proposed project including its feasibility study, plan and budget shall be submitted to the IGP Manager for preliminary evaluation, and recommendation. The EDM Council shall deliberate on the proposal and resolve/decide on the merits of the proposal for the appropriate action or implementation by the Administration.

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Article 24. Funding The Projects-In-Charge shall submit to the IGP Manager a consolidated work plan and budget for their respective project. The IGP Manager shall review, recommend revision and consolidate the plans and budget of various production projects. The consolidated Plan and Budget shall be forwarded to the EDM Council for resolution, prioritization and recommendation. Plans are to be approved by the President. The approved projects are to be included in the succeeding year’s PPMP from which APP is to be provided. All approved projects shall be provided by the College the initial capital for its establishment and operation. A land area will be provided for new projects, whenever applicable, by the EDM Council in consultation with the College Planning and Development Officer in coordination with the Infrastructure Committee. Article 25. Procurement and Use of Inputs

a. Requisition and Issue Voucher (RIV) for goods, services and infrastructures shall follow legally prescribed standard operating procedures.

b. Requisition for supplies, materials, and equipment for the use of the project shall be prepared by the project in-charge.

c. A canvasser and purchaser shall be designated officially from among the EDM Project personnel to assist and facilitate in the procurement of supplies and materials.

d. On a highly case to case basis, emergency purchases of project inputs may be allowed provided that the price of the items is the lowest in the locality and most advantageous to the government as determined by open canvassing and certified by the Project in-charge. Provided further, that the said item shall be inspected by the Internal Control Unit (ICU) representative and countersigned by the designated Inspector, and the Security Officer on post if it is beyond business hours or during holidays.

e. Purchased inputs are to be stored centrally in a common stockroom. The deliveries and withdrawal of inputs shall be monitored by an assigned Storekeeper. Projects whose inputs and supplies have been exhausted but still have an immediate need of said supplies can barrow from other projects subject to replacement.

f. Vaccines and other agribusiness supplies needing refrigeration should be stored in the refrigerator of the EDM market outlet.

g. Prices of products/inputs procured by a Project from another Institutional Project should be based on the prevailing average market price.

Article 26. Feasible Contract Farming

Contract farming during fruiting period only could be resorted to for fruits like;

Mango, Rambutan and Durian. This shall be done through a public bidding in conformity with the provisions of R.A. 9184. The winning bidder should execute a

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memorandum of agreement (MOA) with the College binding him to comply with the following stipulations:

Article 27. Arrangement with the Contract-Farmer

1. The winning bidder shall pay 10 % to the College upon award of the contract.

2. The winning bidder in close coordination with the Farm Manager shall take care of the orchard, observing proper cultural management of the crops such as: pest control, weed control, fertilization, and protection from intruders and predators.

3. The Contract farmer must coordinate with the DOSCST security office through the Project-in-Charge or Representative which shall issue the temporary identification card or certificates to his personnel assigned to secure the orchard, for proper monitoring of authorized persons entering and going out of the campus premises and the orchard.

4. When the trees bear fruits, the Contract-farmer shall pay 40% of the total bid.

5. Full payment of the remaining 50% of the total bid shall be paid before any harvest could be done by the contractor. Harvesting shall be made with proper clearance from the EDM Manager.

6. The presence of the concerned Project in-Charge/Representative is required upon recommendation of Farm Manager during harvest to monitor and receive 5% share from every harvest made to be sold at the central outlet. This shall be paid by DOSCST to the contractor at prevailing wholesale market price.

7. The contract-farmer must strictly observe proper disposal of waste during the entire duration of the contract and must see to it that the orchard is properly cleaned before leaving the said premises.

8. Any failure made by the Contractor on the above cited provisions shall forfeit his/her claim/rights to the fruits in favor of DOSCST.

9. The contract shall take effect immediately upon its award and shall terminate after the last harvest of fruits done during the inclusive fruiting season.

Article 28. Marketing of Agribusiness Products A central marketing system shall be established to achieve proper recording, convenience, and safety measures in the disposal of farm produce. As a general rule, agri-produced and all other products should be sold at the Central Outlet. Project-in-Charge may dispose their product on site with the presence of ICU officers and central market Representative. A product item will be released to a buyer only upon issuance of EDM official receipt.

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The general guidelines in the disposal of produce/products are as follows:

a. The IGP Manager has the authority to make price adjustments based on prevailing market condition;

b. DOSCST employees and students are given priority to purchase EDM products;

c. Prices of products bought on cash by College constituents shall be seven percent (7%) lower than the prevailing market price. Credit sales which are payable on or before payday immediately following receipt of goods shall be 5 % higher than the prevailing market price. Poultry eggs, meat, meat products, fruits and other non-bulky products shall be displayed and sold at the central outlet;

d. Bulky products like live animals (swine, chicken, cattle) and others (e.g. whole coconut) may be sold at the project site or storeroom in the presence of the Project-in-Charge, representatives from the EDM central outlet and, designated Inspector of the College;

e. Buying-on-credit (BOC). Goods with total value of PhP 1,001.00 to 1, 500.00 maybe paid in installment at two succeeding pay-days;

f. Mechanics of BOC: f.1. Issuance of credit receipt should be done by EDM Cashier. f.2. Receivable ledger card of each debtor-employee shall be maintained at the Central Outlet after every payment made to avoid double payments; f.3. Credit ceiling for College employee with plantilla position shall be Php.1,500.00; otherwise, he/she is privileged to have Php 1,000.00 only. f.4. Payment for goods bought on credit will be deducted in the payroll immediately following the purchases. This deduction from salary

for payment of goods and services purchased on BOC must be given priority next to the mandatory deductions. For purposes of updating receivables, remittance of payroll deductions should be made by the Accounts Office within three workdays after every payday.

g. Products sold in bulk that requires public bidding shall be stored at the

project storerooms. When enough volume is ready for sale, the Project In-charge should notify the market coordinator for its disposal through public bidding;

h. Products that are ready for sale such as seedlings, flower, etc., occasionally shall be advertized by the Project In-charge, IGP Manager and Marketing Officer in close coordination with each other;

i. Issuance of official receipt for payment of products should be done by the EDM cashier. Remittance of sales must strictly follow the existing accounting and auditing rules and regulations.

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Section 8. Management Control

The Projects-In-Charge are directly accountable to the IGP Manager. As such, they should receive orders from or through him or his duly authorized representative on management matters. Article 29. Instruction a. with proper arrangement with the Project-in-Charge, a project may be used

also for laboratory activities and practicum of students, subject to the concurrence of the Farm Manager/Supervisor. However, proper safeguards are to be observed especially in the use of live animals. The Project-In-Charge will exercise sole discretion to decide on matters affecting the health of the animals and welfare of the project. Animals and crops can be used as specimen for terminal purposes only as secondary to the primary purpose of generating income.

b. The laboratory instructor, practicum coordinator, or thesis adviser should coordinate well ahead of time (at least a week) with the Project in-Charge regarding the conduct of their laboratory, and practicum activities.

Article 30. Research

a. Students may be given access to project facilities in the conduct of their research subject to the approval of the Project in-Charge in concurrence with the Farm In-charge. With the extended favor, safeguard and extra-care should be observed by the researchers to ensure that “well being” of the Project will not be prejudiced.

b. The use of projects’ facilities with corresponding pay shall be determined and recommended by the Project in-Charge. The permit can be secured through written request to, and approved by the Manager or his/her duly authorized representative.

c. The projects’ financial data can be made available only to College researchers for officially approved studies.

d. Any research to be conducted utilizing EDM materials shall be subject to approval by the EDM Council stating the terms and condition duly signed by the researcher, upon recommendation of the Project-in-Charge having expertise related to the research.

e. The Project-In-Charge having an expertise related to a research shall be a member of the student’s advisory committee or a junior researcher of a research with data to be obtained mostly from his Project.

f. A copy of the officially accepted manuscript shall be submitted also to EDM office for reference purposes.

Article 31. Extension

a. On a limited basis and as the need arises, materials and other resources may be “extended” or shared with other College management Unit or government agencies at a negotiated cost in support to certain programs, subject to the

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approval of the College President upon recommendation of the Project-in-Charge and concurrence of the Farm Manager or Supervisor.

Article 32. Labor Pool

a. A skeletal manpower requirement shall be determined and, supplied for each project. Hiring of supplementary workers will be “on call” and “pakyaw” basis. The rate shall be determined based on the nature of work.

b. All construction activities and preparation of PRs for infrastructure projects or repair of existing facilities should be recommended by the College Infrastructure Committee concurred by the Director for Planning and Development.

Article 33. Land Utilization a. All College land areas should be utilized for productive purposes. b. No DOSCST land shall be rented to a private group or individual farmers. c. Any land use made outside of the EDM operation shall require the approval of

the College President upon the recommendation of CPDO-Infrastructure Committee.

Article 34. Machinery and Transportation Services

a. Machineries such as tractors, hydro tillers and transport facilities that are primarily assigned to Production projects can be availed of by DOSCST employees and students if such equipment is not used by the EDM. The rental charge shall be based on BOT-approved rates and rentals (Appendix A”). Machines, tools, equipment and, transport facilities commonly used by two or more projects shall be under the care and responsibility of the Farm-In-charge. Any specialized item(s), tool(s) or equipment shall be the responsibility of the Project-In-charge that uses such item(s).

Section 9. Workload Credits and Benefits Article 35. Managing projects and performing support functions that truly generates income are a heavy load and a critical responsibility. These usually entail extra work on extended time. The workload credits of members of the faculty involved in IGPs shall follow the standard equivalent teaching load (ETL) that considers prorated weight as to the “scope and degree of responsibility and accountability”. The management and personnel shall consciously plan and implement cost-saving and efficiency enhancing measures to further improve the performance and efficiency of projects, especially if they have a share of the amount of benefits that can be derived from the enterprise.

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To motivate personnel to participate actively in IGP activities, they may be given monetary remuneration and/or incentives on the basis of their contribution to the productivity and profitability of the projects. To effect this motivation and reward scheme, all personnel participating directly and regularly in IGP operations shall have a share of the net income. Article 36. Coverage All personnel of projects operating under the Income Generating Program of the Institution shall be included in this profit-sharing scheme. The personnel of Projects with losing status are definitely excluded for the particular period. Article 37. Guidelines for Sharing the Profit from Institutionally Funded IGPs Net income shall be shared following same principles that are practiced by the Southern Philippines Agribusiness, Marine and Aquatic School of Technology (SPAMAST) as follows:

Particulars % share

Administration’s share for: 30% - improving school facilities - purchase of books - MOOE

Plow back capital 30% Incentives 30% Contingency 10% Total 100% The incentive share of 30% from the whole program shall be allocated as follows: Technical Personnel 70% Support Staff 30%

Section 10. Concluding Provisions Article 38. Amendments The EDM Council may issue additional guidelines or introduce modifications or through amendments of the Manual’s provisions as the need arises.

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Article 39. Separability Clause If any provision in this EDM Manual of Operation is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting. Article 40. Repelling Clause Any issuance that is inconsistent with this Manual is rendered repelled and rescinded. Article 41. Effectivity This EDM Manual of Operations takes effect immediately after the confirmation of the Board of Trustees on June 2010 through Referendum No. ___. Prepared by: Rizaldy V. Maypa, MPS-PAM Herminigildo S. Torreno, Ph.D.

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Appendix A

BOT-Approved Rates and Rentals

Fee Internet Pre-paid Internet Service Fee/Student/Semester (7 hours) = Php 120.00

COMPUTATIONS

Available Service Hours 15 computer units x 10 hrs/day x 5 days x 18 weeks/semester = Php 13,500.00 hours/semester Pre-paid Service Hours 1800 students x 7 hours/student/semester = Php 12,600.00 hours/semester Revenue 1800 students x Php. 120.00/students/semester = Php 216,000.00 Operational Expenses/Costs: Monthly subscription Php 15,600.00/month Electricity 1,000.00/month Honorarium (Student Assistant) 800.00/month Total Php 17,400.00/month Total Expenses/Semester = Php 104,400.00 Net Revenue/Semester = PHP 111,600.00

DOSCST GYM RENTALS/CHARGES

Activities/Events National Level Local Level A. Fund raising concerts, plays, beauty pageants

P 15,000.00 for the 1st 3 hours & P 1,000.00 per hour for the succeeding hours

P 10,000.00 for the 1st 3 hours. & P 1,000.00 per hour for the succeeding hours

B. Fund raising sports like: Basketball, volleyball

P 15,000.00 for the 1st 3 hours & P 1,000.00 per hr. for the succeeding hr.

P 10,000.00 for the 1st 3 hours & P 1,000.00 per hr. for the succeeding hr.

C. Fund raising seminars, conventions & congress

P 10,000.00 per day for 8 hours (8 am-5 pm) and P 500.00 thereafter

P 5,000.00 per day for 8 hours (8 am-5 pm) and P 500.00 thereafter

D. Non-fund raising activities: Civic, religious, Inter-agency

P 3,000 per hr. for the 1st 2 hours & P 1,000 per hr. thereafter

P 2,000.00 per hr. for the 1st 2 hours & P 500.00 per hr. thereafter

E. PBA/MBA/PBL P 18,000.00 per event F. Rehearsals/Sports practices

P 600.00 per hr. PBA/MBA P 500.00 per hr. Davao Eagles

P 150.00 per hr. during daytime including manpower & maintenance provided no lights will be used. P 250.00 per hr. from 6 pm onwards

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G. Basketball League P 300.00 per hr. for daytime P 400.00 per hr. for nighttime

H. Students from other schools (graduation & other school activities)

P 1,000.00 per day plus direct cost to be paid except for janitorial services

ACTUAL COST OF OPERATION

A. Fund raising concerts, etc. - Light & water - Stage

P 350.00 per hr. P 1,000.00 for installation & restoration

B. Fund raising sports - Light & water ( non-live coverage)

P 500.00 per hr.

C. Fund raising seminars Daytime ( 8 am- 5 pm) Nighttime ( 5 pm- 10 pm)

P 500.00 per day P 100.00 per hr.

D. Janitorial P 2,000.00 per event

GUIDELINES OF FEES FOR OTHER COLLEGE FACILITIES, FURNITURES AND FIXTURES

A. Audio Visual Room ( including air-condition, light, chairs, sound system & 2 microphones)

P 1,500.00 for 8 hours from 8 am to 5 pm P 200.00 per hour from 5 pm until 10 pm only

B. Conference Room P 500.00/day C. Oval P 250.00/day D. Tables P 20.00/table/day E. Chairs P 5.00/chair/day F. Mimeographing machine ( inclusion of ink)

P 50.00/ream

G. Canteen ( including light & water)

P 1,500.00/month

(Approved during the Administrative Council Meeting held last September 4, 2002 at the Conference Room, DOSCST, Mati, Davao Oriental; approved during the 36th Regular Board Meeting as per Resolution No. 2002-25 A,B,C held last September 17, 2002, USEP-Obrero Board Room, Davao City) Noted: REYNALDO M. NOGODULA Board Secretary