Policies and Procedures for Cassava Chips Production

7/31/2019 Policies and Procedures for Cassava Chips Production

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This policy document is developed to provide guidelines for effective production ofcassava chips for exportation as well as other farm products.

The activities would involve:1. Acquisition of farm lands2. Supply and sales of farm inputs3. Material Sourcing through:

Self-owned/Leasehold cassava plantation

Contract Growers4. Transportation of farm produce from Farms to Processing Factory5. Processing of farm produce

6. Packaging, Standardization and Conservation of the farm produce in preparationfor exportation marketing

7. Warehousing the processed products pending the exportation and sales.

8. Transportation of the products to the ports or markets.

It is the policy of the company that none of its employees would be involved in thetechnical activities along the value chains. The company employees will only be involvedin the administration and financing activities. Meanwhile, entrepreneurs in the form ofsole proprietorships, SBUs, Cooperatives and corporate bodies with adequatecompetencies and experiences, who have been duly registered with the company wouldbe engaged in carrying out the technical activities along the value chain.

The company will source for its major raw materials i.e. Cassava tubers from either:

i. The Plantations Established on Lease Farm Landii. The Contract Growers


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Meet the Land

Lessors

Conduct if Q &

Q of the

Farm /service

meet the

Company

Requirement

Agree on

terms &

conditions

Execute Contract

Agreement

Allocate

farms to

registered

entrepreneu

rs

Supply required

Inputs to the

farmer

Issue Coupons,

Invoice and Delivery

Note

Wait till harvest

period

End

No

Ye

s

No

Ye

s

No

Ye

s

Prepare Lease

Solicitation forOffers (SFO)

Advertise

through localmedia

Shortlist

Expression of

Interest

received from

prospective

lessors


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(a) This part applies to acquisitions of leasehold interests in real property except:

Contract means lease.Contractor means lessor.Landlord or lessor means any individual, firm, partnership, corporate bodies, trust,association, State or local government, or other legal entity that leases real property tothe Government.

Lease or leasehold interest in real property means a conveyance to the Governmentof the right of exclusive possession of real property for a definite period of time by alandlord. It may include operational services provided by the landlord.

Lease acquisition means the acquiring by lease of an interest in improved real property

for use by the Government, whether the space already exists or must be constructed.

Lease extension means extension of the expiration date of a lease to provide forcontinued occupancy on a short term basis.

Lease renewal (option) means the right, but not the obligation of the Government tocontinue a lease upon specified terms and conditions, including lease term and rent.

Lessee or tenant means the United States of America.

Operational services means services that support use of a leased property, such as

Land scaping, Tilling, harrowing, and custodial services.

Simplified lease acquisition procedures mean the procedures for awarding leases at orbelow the simplified lease acquisition threshold.

Simplified lease acquisition threshold means the simplified acquisition threshold. Whenapplied to the average annual amount of rent for the term of the lease, including optionperiods and excluding the cost of services.

Solicitation for Offers (SFO) means a request for proposals (RFP).

Substantially as follows or substantially the same as, when used in prescribing aprovision or clause, means that the contracting officer may prepare and use a variation ofthat provision or clause to accommodate requirements peculiar to an individualacquisition

Succeeding lease means a lease whose effective date immediately follows theexpiration date of an existing lease for space in the same building.


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Superseding lease means a lease that replaces an existing lease, prior to the scheduledexpiration of the existing lease term.

(a) The CEO, Contracting Officer, is authorized to enter into a lease agreement for theacquisition of lands which is available for farming purposes. The lease agreement maynot bind the Company for more than 20 years.

(b) The CEO has exclusive authority to enter into and administer leases on the companyto the extent of the relevant resolutions by the board. Nothing in this paragraph isintended to limit the CEOs authority to designate, consistent with the company articles of

Association, a contracting officers representative.

Contracting by negotiation is appropriate for acquiring lands through a lease contract.The contracting officer will usually need to conduct discussions with offerors about theirproposals and consider factors other than price in making the award.

The contracting officer determines whether the procedures are appropriate for entering

into a lease contract based on the following

(1) The contracting officer expects to receive three or more offers.

(2) Offerors will need to perform design work before developing a price.

(3) Offerors will incur a substantial amount of expense in preparing offers.

(4) The contracting officer considers criteria such as the following:

(i) The extent to which the project requirements have been adequately defined.

(ii) The time constraints for delivery of the project.

(iii) The capability and experience of potential contractors.

(iv) The past performance of potential contractors.


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(a) If a proposed acquisition is for a leasehold interest in real property estimated to

exceed 100 hectares, then the contracting officer must publicize the proposed acquisitionin the company website, at least one Nigeria daily newspaper and other relevant media.

(b) For leasehold acquisitions where the solicitation requires the establishment of cropplantation, the contracting officer must publicize the proposed acquisition in the companywebsite, at least one Nigeria daily newspaper and other relevant media regardless of sizeor value.

(c) For leasehold acquisitions not subject to hectares, contracting officers must publicizethe proposed acquisition in acquisition in the company website, at least one Nigeria dailynewspaper and other relevant media when the contract action is expected to exceed

2,500,000.

(d) Other than as identified in paragraphs (a) through (c) of this section, the contractingofficer need not publicize the proposed acquisition of a leasehold interest in real property,including expansion requests within the scope of a lease, lease extensions.

(e) The contracting officer may issue a consolidated advertisement for multiple leasingactions.

(f) Except as otherwise, where publicizing of the proposed acquisition is required, thenotice shall be published than seven calendar days prior to issuance of a solicitation.

(g) Except as otherwise provided in paragraph (b) of this section and as set forth inparagraphs (g) and (h) of this section, the contracting officer shall provide offerors notless than 20 calendar days between solicitation issuance and the date established forreceipt of initial offers.

(1) For a proposed acquisition using simplified lease acquisition procedures, consider theindividual acquisition and establish a reasonable response time.

(2) In cases of unusual and compelling urgency, provide as much time as reasonably

possible under the circumstances and document the contract file.

(a) The policies and procedures of apply to lease contract actions.

(b) Most leasing actions will have adequate price competition. For price analysis ofoffered rental rates, the contracting officer may use a market survey, an appraisalconducted using accepted real property appraisal procedures to establish a market price


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for comparison, or other relevant market research data. For price analysis of offeredtenant improvement costs, obtain two offers or cost and pricing data.

(c) In exceptional cases, the requirement for submission of certified cost or pricing datamay be waived

Before accepting the space, the contracting officer must:

Verify that the space complies with the Company and Governments requirementsand specifications.

Document the findings in an inspection report.

Ensure that the inspection report contains the agreed size of the land acceptedand the acceptance date.

Include the inspection and acceptance in the contract file.

The uniform contract format is not required for leases of real property.

Contracting officers must include sustainable requirements appropriate for the type ofleasing in the solicitations for offers.

Conduct a market survey to identify potential sources.

(a) The description of requirements depends on the nature of the space the agencyneeds and the market available to satisfy that need.

(b) The description of requirements must include all the following:

(1) A statement of the purpose of the lease.

(2) Functional, performance, or physical requirements.

(3) Any special requirements.

(4) The delivery schedule.


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(a) If the contracting officer needs to conduct negotiations, use the procedures in

(b) Evaluate offers in accordance with the solicitation. Evaluate prices and document the

lease file to demonstrate whether the proposed contract prices are fair and reasonable.

(c) Accept the lease award from the responsible lessor whose terms and conditionsrepresents the best value to the Company considering price and other factors included inthe solicitation.

The SFO forms the basis for the lease negotiation process and becomes part of the lease.Document each SFO in writing or electronically. Include the information necessary toenable prospective lessor prepare proposals. Each SFO, at a minimum, must:

(a) Describe the Companys requirements.

(b) State the method the Companys will use to measure the available space of land.

(c) Specify a date, time, and place for submission of invitation for meeting.

Release the SFO to all prospective lessors at the same time. The SFO may be releasedelectronically.

(a) The contracting officer must evaluate offers solely in accordance with the factors andsubfactors stated in the SFO.

(b) Evaluate prices and document the lease file to demonstrate that the proposedcontract price is fair and reasonable. The contracting officer must review the elements ofthe lessors proposed rent to analyze whether the individual elements are realistic andreflect the lessors clear understanding of the work to be performed. The contracting

officer must discuss any inconsistencies with the lessor. If the lessor refuses to support ormake any changes to the rent proposed, consider the risk to the Company prior tomaking any lease award.

(c) Evaluate past performance on previous lease projects in accordance. Obtaininformation through:

(1) Questionnaires tailored to the circumstances of the acquisition;


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(2) Interviews with program managers or contracting officers;

(3) Other sources; or

(a) Exercise of options. The exercise of a renewal option during the lease term mustsatisfy the requirements of Memorandum of Agreement initially signed by the companywith the lessor.

(b) Market information review. Before exercising an option to renew a lease, reviewcurrent market information to determine that the rental rate in the option is fair andreasonable.

This policy covers the registration and accreditation of:i. Enterprises in form of SBUs/Cooperatives for the handling of Farm Management,

Haulage, Processing Activities and Trainersii. Suppliers of farm inputsiii.Contractors who would be engaged in the rendering other services.

iv.Trainees who are interested in the training components of the project.

i. The nature of various engagements and the detailed registration procedures must be

communicated to the public prior to a specified date when the registration will lapsethrough adverts on website, radio, television, newspaper and other useful media.

ii. Interested participants mentioned in (i - iv) above are expected to apply for their area of

interest by completing Online form which is uploaded on the companys portal.iii. Completed forms are saved in a digital database.iv. Administrative Officer access the database to obtain the forms, process them to select the

relevant applicants who possess the requisite technical competence and cognateexperience in the areas for which they applied using appropriate software.

v. The details of selected are printed in support of memo report which is submitted to the

COO for the conduct of oral interview with the participants.vi. The successful applicants selected must be fed back through email and SMS.vii. Chief Operating Officer conducts oral interview with the successful applicants and make

recommendations to the CEO.viii. The final approval is carried out by the CEO.ix. Engagement/Appointment Letter or Contract Documents are issued to the successful

applicants by the Admin Officer.


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Meet the

Contractors &

Interview

Conduct if Q &

Q of theFarm /service

meet the

Company

Requirement

Agree on

terms &

conditions

Execute Contract

Agreement

Does the

farmer need

farm input

from the

company

Supply required

Inputs to the

farmer

Issue Coupons,

Invoice and Delivery

Note

Wait till harvest

period

End

No

Yes

No

Yes

No

Yes

Prepare

Contract

Specification

Offer

Advertise &

Invite Tenders

through local

media

Shortlist

Application


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1.

This process aims at providing a policy to guide the appointment of contractors forLEADS WEST AFRICA Farming Contracts.

2.

This includes services of general application such as cassava growers, otherAgricultural Value Chain Activities including processing, marketing, transportation,canteen catering, security, cleaning, and distribution. But excludes contracts ofspecific functional responsibility like advertising, import clearing, I.S. hardwaremaintenance, vehicle maintenance, telecommunication equipment maintenance,a/c maintenance and purchases that come under the commitment of companyfund policy.

3

There shall be a tender committee comprising the following;

1. Managing Director (Chairman)2. Financial Controller3. Functional or departmental

Manager of originating function4. General Services Manager5. Company Secretary (Secretary)

4There shall be an annual review of contracts entered into between the contractorsand LEADS WEST AFRICA, and a general review of contractors by competitive bidat least once in 3 years by tenders committee.

1. Prepare a comprehensive contract specification Functn Mgr.

2. Invite sealed tenders in duplicates, based on the Functn Mgr.Contract specification through local advertisements(internal and external) using some selected Media.Tenders received should not be opened until the expiration of timegiven for submission, when all tenders will be opened at the sametime under the supervision of the Internal Auditor who will immediately collect


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the duplicate bids for his records.

3. Do a shortlist of various applications received Functn Mgr.From tenderers.

4. Conduct interview for the shortlisted tenderers Tender cott.And select best contractor.

The committee at its discretion may call for additional orindependent quotations and call in for more negotiationsif considered necessary.

5. Formulate agreement documents stating the terms andFunctional /conditions of the contract incorporating the following: Corp. Aff Mgr.

Period of contract Renewal and termination clauses;

Role of the company and the contractorunder the contract.

Three (3) months probational period.

6. Sign contract agreement documents and distribute copies Functn Mgr.to the following: Fin.Ctr./MD

The contractor

Functional manager

Company secretary

Financial controller

Managing Director

7. Placement and orientation course for the chosen contractor. Functnal Mgr.

8. Confirm if the contractors needs some farm inputs from the company

9. Supply the requested farm inputs

10. Issue coupon, invoice and delivery note for the supplied farm inputs


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1.To establish a purchase policy for the procurement of certain predetermined goodsand services.

2.The policy and procedure shall cover the procurement of the goods and servicescentrally.a. This includes cassava tubers and other produce for resale or

processing.b. : This covers all annually contracted services such as

maintenance of equipment, cleaning, courier, security, canteen services etc.c. This covers generator, motor vehicles,

electrical appliances etc.d. This includes purchases, repairs and maintenance of

company owned privileged cars (including accident repairs procedures inconjunction with the Insurance companies).

e. this covers general company forms and pads, e.g.

Goods Inwards Notes, Engineer Call Report, internal posters, communicationand business cards, computer stationery etc. it does, includes advertisingbrochures and posters, or small volume special printing relating to the specificneeds of a particular Department.

f. :

Miscellaneous supplies that are specific to each department (e.g. purchase ofcalculators, data Processing stationeries and other general stationeries such asbiro, pencil, eraser etc.)

g. General Purchases: Such as clothing (uniforms), ID Cards, site supplies such astowels, toilet rolls and cleaning materials.

The Head of Account/Finance Manager will normally be responsible for generalpurchasing and for arranging procurements.

4.

a. It is the policy of the Company to purchase, by ethical means, only goods andservices which are required and suitable for carrying out the purposes of theCompany. The Company aims to ensure that the best value for money is beingobtained and that its resources are being used to the greatest benefit.

b. Commitments relating to the above areas of expenditure may only be madethrough the use of Central Purchase Requisition (CPR) and Central Purchase Order(CPO), the administration of which is the responsibility of the Purchasing Officerand the General Service Department.


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c. The detailed procedures to be followed in executing this policy are as laid downunder the Central Purchase procedure. The general definitions of responsibilitiesare:

i) Raising and approving Central Departmental Manager purchase Requestform(CPR)

ii) Obtaining the required three Purchasing Officer/quotes. General Services Dept.

iii) Raising of relevant CPR & CPO Purchasing Officer/GeneralServices Dept.

iv) Authorization for commitment As defined under 3c below

a. It is the general policy that three competitive quotations are obtained from

established and reputable suppliers for each order request. However exceptions tothis requirement are permitted in the following cases where just one quotation willbe accepted:-

Orders with a value of =N= 20,000 and below.

Where specialist suppliers applies, i.e. only one supplier

Prior approved nominated company supplier.

b. Quotations received must relate to the required goods or services and must beproper quotations clearly detailing goods or services to be provided, the supplier,his business name, address of the company plus a business card attached ifavailable.

c. Hand-written notes on plain paper are not considered proper and will not beaccepted.

It will be the responsibility of the relevant Manager approving the CPR to ensure thatrecommendation and selection of supplier is done to ensure the company obtains best

value for money. In exercising this responsibility, it is not expected necessarily that thisshould be interpreted as buying at the cheapest cost or conversely justifying the highestcost solely on the basis of the best quality. Managers are expected to apply judgmentand balance in their supplier selection where the sole criterion as:

Appropriate quality of goods/services for the particular situation and

The appropriate best value for that quality, and

Use of known and reputable suppliers.


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Therefore, the selection of supplier should not show any preference other than whererelated to the above, and generally where quotations are for the same goods or services,it would be expected that, if all other factors are common, the lowest price should beaccepted.

( : the word approval merely denotes concurrence to the request by thesignatory). Commitments can only be made through the raising of CPO, whichmust be raised prior to any external commitment being made. This document canonly be raised after the required authorization of the relevant CPR.

I) General Service Manager VALUE UP TO 5,000II) GM VALUE UP TO 50,000III) Finance Controller VALUE UP TO 1,000,000iv) Managing Director ALL VALUE ABOVE 1,000,000

The above authority levels related to COMPLETE orders. It is not permitted to splitorders to obtain lower values thus avoiding the necessity of obtainingauthorizationas defined under (i) and (ii) above. Also where cost values cannot be estimated,then authority requirement will be as with orders valued above =N= 1,000,000that is, Finance Controller. It should also be understood that no purchase can bemade withoutprior authorization as defined above.

The above delegated authorities are designed to both provide Managers withcommitment discretion as well as relieving the inherent delays experienced in theexisting processed. However this delegation does not remove the FinanceController responsibilities regarding Control of the commitment process. TheFinance Controller will to exercise his responsibilities and will regularly reviewexpenditure made below =N=1,000,000 albeit after the event. In this connection,

he has and will continue to have the unfettered right to question any commitmentsmade where he has cause to raise queries.

The general policy shall be that goods and services should only be paid for afterthe receipts of the goods or satisfactory provision of the services required.Exceptionally, there may be a requirement for the payment of deposits prior to thedelivery of the goods, or the provision of services.


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Such requirements must be clearly noted on the CPO before it is authorized.Generally, such deposits should only be paid to the supplier by cheque, thoughcash may be permitted where appropriate or justified. If advancepayments/deposits are recommended then an ADVANCE PAYMENT REQUESTFORM must be raised and accompany the CPO.This document requires the same level of authorization as defined for the CPO(see 3c above)

The ADVANCE PAYMENT REQUEST FORM must quote the CPO number, and whenpresented to the Cashier, have a copy of the approved CPO attached.

Payment requests of Supplier Invoices for goods and services committed throughthe CPO can only be processed after confirmation by the originator or thepurchase indicating satisfactory delivery of the goods or provision of the services

requested. This generally will be indicated by the signature and printed name ofthe originator on the checklist attached to the invoice and where goods aresupplied the relevant Good Inward Notes. The approval of the checklist requestingpayment must also carry the signature of the General Service/MaintenanceManager or, in his absence, higher authority.

All documents shall be covered by a combination of any of the under-listed forms:

CENTRAL PURCHASE REQUISITION (CPR)(This is the internal document used to obtain authorization for the purchase).

CENTRAL PURCHASE ORDER (CPO)(this document is used to make the external commitments on behalf of thecompany)

ADVANCE PAYMENT REQUEST FORM(This covers payment of any advance payments/deposits).

GOODS INWARD NOTE (GIN)(This document is used to record physical receipts of goods supplied).

The Central Purchase Order (CPO) will be raised only after full authorization of theCPR. Generally, it will be expected that all CPO would be signed on behalf of thecompany by the Purchasing Manager, or in his absence, the higher authority.

All blank (unused) CPR and CPO books must be held in the companys safe by theTreasury/Finance Manager. These documents will be issued at the request of theDepartmental Head, of the General Service Manager on submission of previously


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completed (fully used) form pads. The completed books will then be retained bythe Treasury/Finance Manager in the safe, and can only be disposed at the specificinstruction of the Finance Controller (generally, these documents shall be retainedfor not less than 6 years). The Treasury/Finance Manager should keep a registerindicating to whom each book is issued, detailing date of issue and date whencompleted (used) book is returned.

The nomination of the recommended supplier shall be with the CentralPurchasing/General Service Manager but subject to the appropriate acceptance bythe authorizing signature, for remote locations (Branches), it is permitted that theFinance Controller may, at his discretion, delegate authority to the Location Headfo the purchase of goods or services covered by this policy statement. Suchdelegation must be in writing. Where such delegated authority has been granted,the location Head must effect such procurement and commitment through theCPR/CPO process and the requirement of prior approval/authorization, as defined

in that policy must be adhered to.

a. The order should be authorized within the cash limits (excluding VAT) defined

below:

Up to 100,000 authorized by the Managing Director;

From 100,000.01 to 500,000 authorized by the Managing Director and a Director of the Company;

500,000.01 and above authorized by the Managing Director and two Directors of the Company.

b. Where the Managing Director is not available to authorize an order, a Director maydeputize;

c. Where appropriate, quotations or tenders must have been obtained as set outbelow.


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a. The standard terms and conditions of supply by the supplier to the Companyshould be reviewed before order is placed based on the following criteria:

b. Where a tender is issued or order placed, where the standard terms are notsufficient or particular requirements have to be met, special terms should beissued separately clearly defining the requirements.

a. Tendering procedures are not obligatory for goods and services costing less than10,000 excluding VAT but quotations and tenders must be sought, as follows:

Over 10,000 but not exceeding 50,000 2

Over 50,000 but not exceeding 100,000

Over 100,000 but not exceeding 1,000,000

4

6

b. Invitations to quote should be sent to known suppliers of the goods/service

required. If there is already an agreement in place for these goods/services thenall suppliers included in this agreement should be invited to quote.

c. A record should be kept of quotations invited and replies received, and if thelowest quote is not accepted, a reason for declining it. Telephone quotationsshall be confirmed in writing, by email or fax.


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The tender should define the goods or services required with a fullspecification and any additional information necessary to the supplier.

7.2 The Standard Terms and Conditions of Supply to the Company should bereferred to and a copy attached.

7.3 Any special conditions of the contract should be defined and attached.7.4 When tendering for a service, the contractor should be asked to providedetails as follows:

to make clear whether the contract includes or excludes labour, materials,plant equipment or other things necessary for the service specified;

to provide a definition of the service, items, site, etc. and the manner in whichthe service should be carried out including time factors relevant to the service;

to specify the right of the Company and the contractor to vary the contract;

whether the contractor can or cannot assign or sub-let all or any part of thecontract;

payment and/or settlement terms plus warranties or reserve of payment until

completion; statutory obligations of both parties regarding safety, insurance, indemnities,

etc.

the period and objectives of the service should be clearly defined.

7.5 An addressed envelope for return of the tender should be enclosed, clearlystating tender details and closing time and date, so it is not opened before thetender date and is received by the authorized person.

7.6 The tenders must be opened in the presence of not less than two personsdrawn from the Directors of the Company, the Company Secretary and the

Managing Director.

7.7 The company will seek to obtain best value for money. Hence, the lowest,or any tender, need not be accepted, but when the lowest tender is not acceptedthe reasons should be clearly stated (for future audit examination) on the signedsummary of tenders.

7.8 Tender should be sought from a reasonable selection of potential and ablesuppliers/contractors. Newspaper or trade journal advertising for suppliers may beappropriate in certain cases.

7.9 The successful tenderer should be informed of the Companys intentions,any clarifications should be agreed and the offer formally accepted.

8.0


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8.1 Any potential order for Supplies, Services or Works above these valuesmust be advertised in the Newspaper and Trade Journal.

8.2 The value figure of 5,000,000 for Supplies and Services excludes ValueAdded Tax and embraces the total commitment for the purchase, lease,rental and hire purchase of goods/services.

8.3 In applying the threshold, the value of an individual contract needs to beestimated. In the case of a series of contracts, the total value over a periodof 12 months also needs to be estimated.

8.4 LEADS WEST AFRICA RESOURCES LIMITED will not attempt to avoid the

Regulations by subdividing requirements so that the value of each part fallsbelow the relevant threshold.

8.5 Tendering processes in the Newspaper should span for a period of 40working days for potential suppliers to respond to an advertisement. Whilein other cases should not more than 20 working days.


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1. It is company policy that only staffs that have initiated an order satisfy

themselves as to the correctness and quality of goods delivered or of a service

provided.

2. The staff member responsible for the above will issue to the supplier a G.R.N.

(Goods Received Note) or Companys official memo through so named it will

also be used to acknowledge approval of a service rendered.

3. It is strictly policy that where the correct staff member is not available to

check, that a receptionist or other receiver will only mark a proffered delivery

note Goods/Services not Checked and no G.R.N/Memo will be issued by such

receiver.

1. The company will have printed books of G.R.N in triplicate and these will be

sequentially numbered: stocks kept by finance.

2. A G.R.N. / Memo book will be issued to each Department Head.

3. On checking the quality and volume of goods received or an approval of a

service rendered the G.R.N. will be completed.

- Top copy to supplier

- Second copy to be retained by Department Head to check against the

subsequent invoice.

- Third fixed copy to be retained in the book.

4. On receipt of the invoice the Department Head will check the invoice against

the;

i) Order for price, volume and quality


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ii) The G.R.N. for volume and quality

(PRENUMBERED

Prepared By

Authorised

By


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5. The Managing Director will authorize the invoice by signing it and return the

invoice and relative G.R.N./ Memo to Finance for payment procedures.

1. In the absence of a dedicated buying department, (the company is too small to

warrant such an overhead) a list of preferred suppliers for routine purchases,

will be issued by Account Department to All Heads of Department each

January.

2. Should a Head of Department be dissatisfied with the service, quality or any

other factor offered by a preferred supplier then they will discuss the matter

with the management/Accountant who may or may not issue an amendment to

the preferred suppliers list.

1. In November of each year the Account Department will analyze the routine

purchases and make a list of such items. E.g. stationeries, computer spares

and accessories etc

2. Having established the various categories of regular purchases Account

Department will write to a selection of suppliers of each category requesting

them to furnish the company with a range of prices of selected, frequently

acquired, items and terms on the basis of being given a companys business

the next year.

3. Account Department will choose the preferred supplier from the information

gathered from action 2 above and issue to all Heads of Department, and

creditors clerk the list of preferred supplier for next year.


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1. This policy applies to all purchases with the exceptions stated above where such

Activities are covered by their own relative policy.

2. All normal expenditure will only be incurred by the issue of a properly completed

company order/ Memo.

3. In order to control expenditure and to enable Finance/Accounts Department to

assess the values of orders placed, the Finance/Accounts Department will be the

only issuing point of company orders.

4. The method of having an order issued will be for heads of Departments to

complete a Request for an Order Form and submit it to the Finance/Accounts

Department.

5. In completing a Request for an Order Form, Heads of Departments will take note

of the companys preferred suppliers (see policy in that activity).

6. No company order will be issued without a firm price being obtained and stated in

the Request for an Order Form.

7. Purchase Orders will be numerically sequential and in four parts:

a. To supplier

b. To Head of Department concerned

c. Account clerk


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d. Fixed copy to remain in order book

8. The official company order will be issued by the Finance/Accounts Department

directly to the supplier.

9. It is policy that on issuing the order, and copies two or three, the relative Request

for an order form will be stapled to the fixed copy remaining in the order book.

10.It is company policy that a Goods Received or Services Rendered Note be issued

to the supplier on receipt and checking of goods delivered or of satisfaction that a

service has been provided (see policy procedure on this point).

PRENUMBERED

Prepared By

Approved By

______________________________________

Received By______________________________________


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* It is recognized that for certain expenses no orders are issued, e.g. telephone

accounts, monthly rentals and emergency services or suppliers. In respect of these, see

Policy and Procedure in these categories.

This involves the activities that are listed below. In the case of the cultivation on thecompanys crop plantations, the registered entrepreneurs with interest, requisitecompetence and experience in a particular crop will be responsible for the under listedactivities according to their areas of specialization. Land Preparation

Nursery and Planting of Seed

Fertilization

Weeding

Insecticide

SecurityThe Contract Growers shall be responsible for the farming activities listed above.

The company would sell and supply the farm inputs such as tractors, implement,fertilizer, manure, herbicides, insecticides and other materials to its customers and otherbusiness contacts.Supply of farm inputs shall form an important term in the contract to be signed with theregistered entrepreneurs.The inputs will only be supplied on requests by the contract growers.

i. Order for farm inputs are made on Requisition form if originated internally or onPurchase Order id originated from Contract growers and clients

ii. The requisition is processed by Sales departmentiii. The availability of the inputs

1.a) System generated Sales Invoicesb) Quotation issued for sales covering all revenue streams


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c) System generated Service contracts Invoices

2.- To ensure that invoices and quotations are correctly raised, authorized andreconciled as necessary

- To check the incidence of financial exposures through wrong billings.- To ensure consistency of format across the operations

3.

These are generated monthly through the vale system for all installations andCSDN transactions processed for the month and are released to customersstatements.

4.This is a temporary invoice type written at the locations to expedite payments for

transactions in the month. It is usually required to accompany goods on delivery tocustomers.The quotations issued are sequentially numbered and are under strict control.

5.All system generated invoices shall be issued by the customer Administrationdepartment

Each invoice shall be signed off by any or two Sales Executive, Sales Managerand Operation Support Manager.

All issued invoices shall be properly logged and controlled.

All customers deposit must be supported by properly completed and authorizedquotation

6.


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ACTION BY

A. QUOTATION

- REQUEST FOR QUOTATION BOOKLET FROM THE BFM

- ISSUE BOOKLET AND RAISE A CONTROL FORM

- PREPARE QUOTATION AND SIGN-OFF AS APPROPRIATE. PRICESSHOULD CORRESPOND WITH CURRENT MARKETING PRICINGBULLETIN

- QUOTATION FOR MACHINE SALES MUST BE SUPPORTED BYSTATEMENT OF EQUIPMENT PURCHASE AND /OR CUSTOMERLPO

- QUOTATION ON CONSUMABLE MUST BE SUPPORTED BYAPPROVED CUSTOMERS LPO, CSDN

- QUOTATION REQUEST ON SERVICE CONTRACTS MUST BESUPPORTED BY SERVICE INVOICES

- COMPLETED QUOTATION SHOULD BE DISTRIBUTED ASFOLLOWS

- THE ORIGINAL COPY TO THE CUSTOMERDUPLICATE COPY TO THE BFMRETAIN THE BOOK COPY FOR THE AE/ENGINEERS RECORD

- CHECK DETAILS ON THE QUOTATION FOR CORRECTNESS.RAISE OBSERVATION AND FOLLOW UP AS NECESSARY

- FILE FINANCE COPY

NOTE: CUSTOMERS DEPOSIT PAYMENTS MUST ALWAYS BESUPPORED WITH QUOTATION

AE/ENGINEER

BFM

AE/ENGINEER

AE/ENGINEER

AE/ENGINEER

BFM

BFM

Documentation

Quality and Quantity Control


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Receiving of harvested cropsMoving goods from farms to processing factory

This document provides guideline on the processes of farm produce with emphasis on

Cassava Chips Processing along the value chain.

The policy covers the following value chain activities.

Weighing and Documentation

Peeling

Washing

Chipping

Drying

Quality & Quantity Control

Weighing

Documentation

Documentation

a.To authorize the payment for the goods or service supplied or rendered as the casemay be to the holder by SWIFT HAVEN LIMITED.


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b.To evidence that the goods and services were satisfactorily provided to the issuer.

c. The receiver of goods or services at each level of value chain activity has the

responsibility of issuing the coupons after the Q&Q test of the goods or servicessupplied.

d. Provision of authorized templates as well as terms and conditions (time, Q&Qspecifications, price controls) for the value chain activities by SWIFT HAVEN.

a. Provision of Farm Lands on lease.b. Supply of farm inputs materials such as Seeds/Stems, Herbicides, Pesticides,

Fertilizer.c. Rent of Farm Machineries for Harrowing, Plouging, Planting, Irrigation such as

Tractors, Power Tillers etc.d. Rent of Processing Machineries for Grinding, Chipping, Drying, Packaging, Grading

etc.e. Harvested crops and other farm produce.

a. Establishment of Cooperatives along the Value Chain.

i. Input cooperativesii. Production cooperativesiii. Processing cooperativesiv. Transportation cooperativesv. Marketing cooperatives

b. Supervision are done at the point of delivery of inputs/harvested crops/processed

goods through Quality and Quantity tests.c. SWIFT HAVEN to:

i. provide financeii. pay the cooperatives for the services they render.iii. Design Coupon Template,iv. Specify Terms and Conditions

d. None of the cooperatives are entitled to collect payments from the businesscontacts. Coupons are issued to authorized payments to the cooperatives for thebusinesses they concluded.

e. Cassava are purchased at Farm Gates for N5,000 per ton standard price.


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INPUT PROVISIONING

PRODUCTION (At

Farms/Plantation/Leads

Palm)

PROCESSING

Peeling, Washing, Grinding,

Chipping, Drying

INPUT Coops

received Farm Inputs

Do the

inputs meet

Q&Q Spec

(weigh &

Testing)?

INPUT COOPS issue

Coupon with a value

of (5,000/ton) to

LEADS W.A

Deliver the Inputs to

PRODUCTION COOPS

Do the inputs

meet Q&Q

Spec (weigh &

Testing)?

PRODUCTION COOPS

issue Coupon with a

value of (N5,500 per

ton) to INPUT COOPS

Land Clearing,

Ploughing, Harrowing,

Planting, Weeding,

Fertlizing, Harvesting

Land Clearing, Ploughing,

Harrowing, Planting, Weeding,

Fertlizing, Harvesting

Do the

harvested

crops meet

Q&Q Spec

(weigh &

Testing)

PRODUCTION COOPS

Receive sub standard

crops

PROCESSING COOPS

issue Coupon with a


ton) to PRODUCTION

COOPS

PROCESSING COOPS

process the crops

PROCESSING COOPS

deliver the processed

commodities to

PACKAGING COOP

LEADS W.A Received sub-

standard inputs

PRODUCTION COOPS deliver

harvested crops toPROCESSING COOPS


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PACKAGING

Weighing

Grading

Bagging & Packaging

TRANSPORTATION

Do the

processed

goods meet the

Q&Q Spec

(weigh &

Testing)

PROCESSING COOPS

issue Coupon to

PACKAGING COOPS

PACKAGING COOPS

package into

exportable condition

PACKAGING COOPS

deliver the processed

commodities to

TRANSPORTATION

COOPS

Do the goods

meet the Q&Q

Spec (weigh &

Testing) at

PORT?

Do the

packaged

goods meet the

Exportable

Conditions (Q &

Q)

TRANSPORT COOPS

issue Coupon with a


ton) to PACKAGING

COOPS

TRANSPORT COOPS

deliver the

Exportable Goods to

PORT

TRANSPORT COOPS

deliver non

exportable goods to

MARKETING COOPS

or LEADS PALMS

PROCESSING COOPS

Receive sub standard

products

TRANSPORT COOPS

receive Signed Delivery

Note


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ADVANCED PROCESSING

MARKETING

Deliver Non

Exportable Products

to LEADS PALM

PROCESSING COOPS

Issue Coupons to

TRANSPORT COOPS

Can the goods

be sold by

MARKETING

COOPS if

Reprocessed?

Reprocess the

products and deliver

to MARKETING

COOPS

Do the goods

pass Q&Q

tests?

MARKETING COOPS

issue Coupons to

ADVANCE

PROCESSORS

MARKETING COOPSsell the products

MARKETING COOPS

issue invoice tobuyers to pay to

SWIFT


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HAULERS

DELIVER FRESH

TUBERS TO

PEELERS

RECEIVED

USING GRN

PEELERS WEIGH& PREPARE

REPORT

PEELERS WEIGH

& PREPARE

REPORT


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11.This policy applies to all purchases with the exceptions stated above where such

Activities are covered by their own relative policy.

12.All normal expenditure will only be incurred by the issue of a properly completed

company order/ Memo.

13.In order to control expenditure and to enable Finance/Accounts Department to

assess the values of orders placed, the Finance/Accounts Department will be the

only issuing point of company orders.

14.The method of having an order issued will be for heads of Departments to

complete a Request for an Order Form and submit it to the Finance/Accounts

Department.

15.In completing a Request for an Order Form, Heads of Departments will take note

of the companys preferred suppliers (see policy in that activity).

16.No company order will be issued without a firm price being obtained and stated in

the Request for an Order Form.

17.Purchase Orders will be numerically sequential and in four parts:

e. To supplier

f. To Head of Department concerned

g. Account clerk


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h. Fixed copy to remain in order book

18.The official company order will be issued by the Finance/Accounts Department

directly to the supplier.19.It is policy that on issuing the order, and copies two or three, the relative Request

for an order form will be stapled to the fixed copy remaining in the order book.

20.It is company policy that a Goods Received or Services Rendered Note be issued

to the supplier on receipt and checking of goods delivered or of satisfaction that a

service has been provided (see policy procedure on this point).

* It is recognized that for certain expenses no orders are issued, e.g. telephone

accounts, monthly rentals and emergency services or suppliers. In respect of these, see

Policy and Procedure in these categories.


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PRENUMBERED

Prepared By

Approved By

______________________________________

Received By______________________________________


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Activities Action by Approved by Documents

Market SurveyIssuing SFO

Meeting the Land Owners (Government,Corporate and Individuals)

CEO, DOP Board of Directors

Register of InterestedLessorResolutions ofMeetings

Inspection, Evaluation and Negotiation

Agreeing on lease terms


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Endorsement of contract agreements CEO, DOP CEO & MOA, Transfer & Lease Conveyances

Payments for the acquisition of the farmlands on lease

DOF &AccountSignatories

Board ofDirectors

EAM, PVs

Renewal of Lease

Registration of Participants and Vendors

Online Registration and Accreditation ofSBUs/Cooperatives/Enterprises for thehandling of Farm Management, Haulage,Trainers, Processing Activities)

Admin Dept CEO Registration FormsAAM

Allocation of farms to SBU orcooperatives

Admin Dept CEO Engagement Letter,MOA

Training of the farm managers DOP CEO Training Handout

Supplying of inputs to farm managers

(SBU/Coop/Enterprises)

Sales Dept DOP DN, Sales Order,

InvoiceIssuance of coupon to the Manager Finance Dept Fin. Mgr. Coupon Note

Planting and harvesting FarmManagers

Haulers HYN

MOA = Memorandum of AgreementEAM = Expenditure Approval Memo

AAM = Accreditation Approval MemoCEO = Chief Executive OfficerDOP = Director of Operations

DOF = Director of FinanceHYN = Harvest Yield Note

Activities Action by Approved by Documents

Searching, location and meeting withfarm land owners

CEO, DOP Board of Directors

Register of InterestedLessorResolutions ofMeetings

Agreeing on terms and execution of CEO, DOP CEO & MOA, Transfer &


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contract agreements Lease Conveyances

Payments for the acquisition of the farmlands on lease

DOF &AccountSignatories

Board ofDirectors

EAM, PVs

Online Registration and Accreditation of

SBUs/Cooperatives/Enterprises for thehandling of Farm Management, Haulage,Trainers, Processing Activities)

Admin Dept CEO Registration Forms

AAM


Admin Dept CEO Engagement Letter,MOA

Training of the farm managers DOP CEO Training Handout

Supplying of inputs to farm managers(SBU/Coop/Enterprises)

Sales Dept DOP DN, Sales Order,Invoice

Issuance of coupon to the Manager Finance Dept Fin. Mgr. Coupon Note

Planting and harvesting FarmManagers

Haulers HYN

Procedures for Cassava Production under Contract Growers Arrangements

Activities Action By Approved By Documents

Searching and location offarms

Meeting the farmers

Agreeing on contract termsand execution of contractagreement

Acquisition of leased farmlands

Registration and Selection ofSBUs/Cooperatives/Enterprises


Training the farm managers

Supplying of inputs

Issuance of coupon

Planting and harvesting

Procurement of Cassava

Activities Action Approve


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Searching and location offarms

Meeting the farmers

Agreeing on contract termsand execution of contract

agreementAcquisition of leased farmlands

Preparation of farms forharvest (measuring,negotiation and pricing)

Engagement of harvestworkers

Harvesting and Delivery toHaulage firms

Transportation to Processing Factory

Transportation to ProcessingFactory

Registration of Haulers,Peelers, Chippers andPackagers(SBUs/Cooperatives or

Enterprises)Accreditation of haulers

Allocation of farms toaccredited haulers

Quality and Quantity Testing

Issuance of Coupons tofarmers by haulers

Loading of harvested tubers

Delivery to processing factory

Receiving of fresh tubers by

the Peelers

Meet the Land

Owners

Conduct if Q

& Q of the

Land meet

the

Company

Requirement

Agree on

terms &

conditions

Execute Lease

Agreement and

Pay

Do the

applicants

meet the

requirement

s?

No

Ye

s

No

Ye

s

No

Ye

s

Completion of

Registration

Form by

Interested

Enterprises/Coo

p

Sort the

applicati

ons

Train the

participants


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