Topic presented during the executive develop program of PhilHecs

1. Asset Management : BSU
products from Income
Generating Projects (IGP)
Feliciano G. Calora Jr
President
Benguet State University

2. Benguet State University
 Established in September 1916, Celebrating our Centennial Year
 Started as a Farm School, Agricultural college, Comprehensive University (PD 2010)
 Strawberry Capital of the Philippines
 Recognized Historical Site by the National Historical Commission , 2016
 2 COD (Agriculture, Nutrition and Dietetics), 1 COE (Teachers Education) from CHED
 1 the Top 30 performing SUC recognized by PRC 2017
 1 of the top 200 SUC in Webtronics Ranking 2016, 2017
 Recognized Best Research Institution DOST- PCAARRD 2017 “Tanglaw Awardee”
 3 out of 30 students qualified for the TOSP 2017, national level
 Student population used to be 12K before K to 12
 The Province is the Only place were FROST occurs (above 2000 masl)
 Popular Products: Peanut Butter, Ube Jam, Fresh Strawberry and Jam, Organic
Vegetables, Arabica Coffee
 We stopped using pesticides in 2010

3. Here's the complete list of Top 200
Colleges and Universities in the
Philippines (Webometrics Ranking of
World Universities 2017):
 35 Visayas State University
 36 Ateneo de Naga University
 37 University of the Philippines in the Visayas
 38 Benguet State University
 39 University of Southern Mindanao
 40 Xavier University Ateneo de Cagayan
 41 Central Luzon State University
Historical Site
Marker

4.  After fulfilling all the requirements and undergoing a
rigourous process, three colleges of the University were
designated as Centers of Development and Center of
Excellence by the Commission on Higher Education. Through
CHED Memorandum Order No. 38, s. 2015, the College of
Agriculture is now Center of Development in Agriculture
and the College of Home Economics is now Center of
Development for Nutrition and Dietetics. Through CMO
No. 17, s. 2016 the College of Teacher Education is now
Center of Excellence in Teacher Education. The
as CODs and COE will be for three years subject to regular
monitoring by CHED.
COD (2) COE (1)

5. 2017 Outstanding students in Cordillera
awarded Sunday, August 06, 2017 THE Ten Outstanding
Students in the Cordillera Administrative Region (Oscar) were awarded in the regional
ceremony last July 31 at the Hotel Supreme in Baguio City. This year’s Oscars are Rou Jay Balagot,
Brett Dales Maslang and Avjine Magwiling from the University of the Cordilleras; John
Oliver De Vera, Zion Jemillinium Tam-
awen, and Mark Neil Pageet from the
Benguet State University; Hearthel Kate Buyuccan from the
Ifugao State University; Oliver Lance Insigne from the Abra State Institute of Science and
Technology; Mark Lorenzo Permalino from Saint Louis University, and Romane Jasmin
Manos from the Easter College.
 Read more: http://www.sunstar.com.ph/baguio/local-
news/2017/08/06/2017-outstanding-students-cordillera-
awarded-556972

6. Tanglaw AwardTeam BSU

7. Asset Management is not NEW. People
have been managing their assets for a long
time. What has changed is the cumulative
idea that good asset management involves
optimizing the mix of performance , risk
and cost over the life cycle of the asset (s).
- Neeraj Kumar
Industrial Maintenance Consultant

8.  What do we considers Assets ?
 Something that has potential or
actual value to BSU
 What is our understand Asset
Management ?
 The systematic and coordinated
activities and practices that
promote optimal and sustainable
management of BSU’s assets and
asset systems over their life cycle to
achieve the objectives of our
strategic plan associated with :
performance,
risk
cost
 What are our Assets ?
 Human
 Our Workforce is critical to provide bsu
food products and services
 Information
Current and accurate information that we
analyze and make it our own. This
information is an essential component in
managing our assets
 Physical
Our Products , other facilities and
instruments to product products
 Financial
Our Budget we allocate is needed for the
operation , maintenance and acquiring
materials needed to product our IGP
products and services
 Image and Reputation (Intangibles)
Our Brand (on- going)

9. Principles of Good Asset Management
 Holistic
 Look at the Whole Picture
 Systematic
 Methodical approach promoting
consistent repeatable and auditable
decisions and actions
 Systemic
 Consider assets in their asset system
 Risk Based
 Focusing resources, expenditures and
setting goals addressing potential risks
and associated cost/benefits
Optimal
Best value compromise
between competing factors
e.g. performance vs cost vs
risk
Sustainable
Consider long term
consequence of short term
activities
Integrated
Recognizing interdependence
and benefits of combined
effects

10. History of Asset Management in BSU
 MSAC, 1970
 Adopted the Commercialization
approach
 Started with
Broiler
Vegetable
Flower Production
Mushroom
Rabbit
Swine
Egg Production
 Production division, 1971
 The creation of a trust fund for the commercial products of
MSAC was requested from Budget Secretary Jaime C. Laya,
1977
 MSAC BLISS project, 1980
 Commercial production of strawberry preserve
 Other Products , 1981
 Vegetables
 Strawberry
 Piggery
 Poultry
 agroforestry
 Seed production
 Orange

11.  Creation of Income Generating Project Office, 1983
 Development of a Comprehensive Land use Management Plan for it land
reservation (600+ hectares)
 The auxiliary service was treated as a separate revolving Fund code 163 thru
DBM circular 92-B, 1992
 RA 8292 Education Modernization Act required SUCs to generate their own
income. 1997
 University Business Program Unit
 The position of Vice President for Business Affairs was created in 2005

12. BSU Assets : Products from Income Generating Projects
Revolving Fund 164
 Farm Areas (land)
 Commercial Spaces and Other Facilities
(Buildings, commercial lots e.g. McDonalds's)
 Stalls and Ambulant Vendors (small stores,
food kiosks)
Revolving Fund 161
• Bakery (Bread, Pastry)
• Food Processing (Jams, Honey, Coffee)
• Poultry (Eggs, Broiler Culls)
Revolving Fund 163
• BSU Garments (Uniform)
• University Guest House (Guestel , Hostels)
• Canteen (Food)
• Animal hospital (Small Animal Medical Services)
• Marketing Center (consigned products)
• Souvenir and Gift shop ( mugs, t shirt, umbrella, caps)

13. Who Oversees our Assets ?
 Projects Managers for :
 Bakery
 Marketing Center
 Food Processing
 Animal Hospital
 Poultry
 Guest House and Hostel
 Food Science and Research and Innovation
Center
 Garments
 Canteen (2)
 Future Plan
 Coffee shop
 Goats (meat and milk)
 Mushroom
BSU Assets are
managed and
supervised by the Vice
President for Business
Affairs who is assisted
by a University Business
Affairs Director, who
works with a team of
project managers
(designated faculty)

14. What are our IGP assets
 Our Workforce
 We select and develop the best and competent people for the job
 Our Products
 We get the best raw materials to produce quality products ( peanuts, ube, flour)
 Our Finances
 We allocate funds for the operations of our projects ( Negotiations with Budget
Committee)
 Our Information
 We monitor, collect and analyze information to improve and enhance our products
(new trends, market value, cost of production, etc)
 Our Physical Facilities
 We ensure that the buildings and tools are available to our work force (utensils,
instruments, training) to produce quality products

15. Who Benefits
from our Assets ?
IGP 2014 2015 2016
RF 161
Bakery 1,352,962.08 1,262,424.2 1,644,300.99
Food processing 1,560,566.71 1,674,189.54 28,223,74
Poultry 109,760,70 22,031,29 (409.609.20)
total 2,803,768.09 2,958,746.03 1,672,524.73
RF 163
Marketing center 796,007.14 957,542.06 1,393,918.84
RSDC Canteen 592,145.53 1,366,097.55 820,740.35
HS Canteen 698,220.16 1,392,094.68 226,783.39
Gladiola Center 106,5502.6 1,787,219.42 1,490,784.22
Guestel 322,899.85 721,951.68 933,723.72
Garment 78,402.76 171,393.13 199,559.81
Animal Hospital 176,222,74 48,348.45 (218,118.14)
Souvenir 23,718.84 28,125.89 -
Total 3,753,119.62 6,472,772.87 5,065,510,33
• Walk In Clients
• BSU Employees
• Investors/ Partner
• Suppliers
• Competitors
• Community (inclusive
growth)
• Government Regulators
NET INCOME TREND

16. BSU GROSS INCOME (2016)
PARTICULARS INCOME(Php) items
Tuition Fees 104,877,855.52
Other Fees (Registrar) 3,888,854.05 12
Fiduciary Fees 113,702,833.57 49
Rent and Leases 45,270,446.19 31
Income Generating Projects 88,070,239.60 22
Interest on Bank Deposits 577,017.00 (4 )
Internal Special Projects 7,256,955.34 13
BSU share from Net Income 10,235,601.00 11
Special Projects(Externally Funded Projects) 35,735,857.41 22
TOTAL 409,615,659.68

17. Asset Management : Financing our IGP’s
 Allocation of Funds for Projects (capital outlay)
Determination of Priority Projects
Prepare the Monthly Cash Programming
 Allocation of Funds per sector
TIER 1 – for on going programs/projects
TIER 2 – for new programs/projects of the university
Capital. outlay
MOOE
Additional Personnel

18.  Allocating Funds for Special Trust Funds
CHED memo 20 series of 2011 – Policies and guidelines for the
use of income, special trust fund(STF) and program of receipts
and expenditures (PRE)
Program Receipts and Expenditures
Special Trust Fund (Fund 164)
Tuition fee
Miscellaneous fee
Fiduciary fees
Service and other income
University Income Generating Projects
Revolving fund 161
Revolving fund 163

19. Special Budgetary Allocation from Tuition Fees
Program/ Project / Activity Specific Budgetary Allocation
Instruction (50%)
Faculty and Staff Development 12.5 %
Curriculum Development 12.5%
Student Development 12.5%
Facilities Development 12.5% 50%
Research Services 10%
Extension Services 10%
Production 10%
Administration Services 10%
Mandatory Reserve 10%
Total Budgetary Allocation (Tuition Fees) 100%

20. BSU 2020 : Asset Management
 ISO 55001 certification (2019) – Standards for Asset
Asset Management Policy (2018)
Asset Management Strategy (2018)
Asset Management Plan (2018)
IGP Monitoring and Evaluation System (2017)
BFAD certification for our food products (2018)
Expand IGP to include: Coffee shop, Goat, Mushroom (2018)
Develop Value Added Products (2019)

21. Veggie
noodles

22. Lettuce
Brocolli

23. Ube
Arabica beans

24. Organic Veggies

25. THANK YOU