Department of Social Welfare and Development KALAHI CIDSS-NCDDP Gs Kapit-Bisig Laban sa Kabirapan Comprobensise and Inegrated Delivery of Social Servives ‘National Comorunty- Driven Devlopmeent Program (MEMORANDUM FROM THE SECRETARY FOR : THE REGIONAL DIRECTORS FIELD OFFICES CAR, |, Ill, IV-A, IV-MIMAROPA, V, VI, Vil, Vill, IX, X, XI, XI, CARAGA, ATTENTION: NATIONAL PROGRAM MANAGER DEPUTY NATIONAL PROGRAM MANAGER REGIONAL COMMUNITY DEVELOPMENT SPECIALIST REGIONAL COMMUNITY INFRASTRUCTURE SPECIALIST REGIONAL FINANCE ANALYST KC-NCDDP. SUBJECT 7 GUIDELINES ON KC-NCDDP PAMANA COMMUNITY WITH FUND. ADMINISTRATION BY BLGUs DATE 12 August 2015, |. —Introduction The Kapit-Bisig Laban sa Kahirapan - Comprehensive and Integrated Delivery of Social Services (KALAHI-CDSS or KC) National Community-Driven Development Program (NCDDP) is the scaling up of CDD operations of the KALAHI CIDSS to 846 poor municipalities. Beginning in 2011, the KALAHI- CCIDSS, in partnership with the Office of the Presidential Adviser on the Peace Process (OPAPP), has been engaged in the application of the community-driven development strategy in the implementation of the Payapa at Masegang Pamayanan (PAMANA), The PAMANA is the Philippine government's peace and development framework which aims to strengthen peace building and reconstruction and development by improving access of contflict- affected areas (CAAs) to basic services and accountable governance. PAMANA serves as the socio- development arm in the two-track approach at addressing conflict alongside the negotiation for political settlement. The KC-PAMANA program supports Pillar 2 of the PAMANA framework wi aims to establish and sustain resilient communities (ie. Micro-level interventions promoting delivery of services and goods) in identified PAMANA zones using the community-driven development (CDD) approach FRU ans SE acy te fu an in a Ms es i 1s -©§3qSince 2011, KC-PAMANA has covered 8 regions, 18 provinces, 68 municipalities across more than 1,500 barangays. PAMANA grants to communities are funded entirely by Government of the Philippines (GOP) funds which, beginning in 2012, have been included in the yearly budget of the DSWD. These guidelines are intended to respond to the need of regional project management offices (RPMO) for technical assistance in engaging Barangay LGUs as implementing agencies (IA) of community projects using PAMANA grants, including transfer to, utilization by, and reporting by BLGUs. ll, Objectives, Scope, and Coverage: This document aims to provide guidance to the DSWD Regional Offices thru the KC-NCDDP Regional Program Management Office (RPMO} in the engagement of, and transfer of funds to, the Barangay Local Government Unit (BLGU) as Implementing Agency (IA) of community subprojects using PAMAN grants, under the KC-NCDDP. IL, Definition of Terms For purposes of these guidelines, the following terms will have the meanings ascribed below; + Community Driven Development (COD) ~ a development approach that ensures priorities are addressed in a participatory, collective, inclusive and in demand-driven way. This is done through localized decision-making during social preparation activities, and in the identification, development, prioritization, establishment and operationalization of community projects. + Community Empowerment Activity Cycle (CEAC) - A five stage, multi-cycle community mobilization process that walks both local communities and the LGUs through (i) community led-investigation of local poverty and its causes; (i) development of interventions identified through informed analysis; (ii) criteria-based selection of projects for implementation; (iv) community-managed implementation of community projects, and; (v) community-based evaluation of results, + Memorandum of Agreement (MOA) ~ The agreement between the Municipal LGU, the Barangay LGU, and the DSWD covering implementation of the PAMANA program in selected barangays in the municipality. + Inter-Agency Transferred Funds - The cash or money transferred or sub-allotted by the agency to which the allotment was originally released in favor of another agency which will implement the project. + Sub-project - The undertaking, whether construction work, training, or other authorized activities which the BLGU will implement using PAMANA grants. + Source Agency (SA) - The DSWD, to which the PAMANA allotment has been originally released and in whose behalf the SUB-project will be prosecuted/implemented, + Implementing Agency (IA) - The BLGU to which the funds are transferred for the purpose of prosecuting/implementing the PAMANA sub-project.+ Barangay Sub-Project Management Committee (BSPMC) - an accountable community structure as attested by a resolution passed by the Barangay Council, as represented by the barangay local government, to perform delegated tasks in behalf of the Barangay such as but not limited to: manage the KC-PAMANA funds in accordance with the provisions of the tripartite Sub-Project Agreement. + Sub-Project Agreement ~ The agreement between the DSWD and the BLGU covering implementation of, and transfer of funds to the BLGU for the implementation of a specific sub-project using PAMANA funds. The SPA is executed during is established to acknowledge the involvement and partnership between citizens and local governments in the implementation and management of sub-projects. IV. Guidelines: 1. The KC-NCDDP shall implement all PAMANA sub-projects under the program through the Barangay LGU as the Implementing Agency (\A), following the guidelines stipulated under Commission on Audit (COA) circulars C1994-013 and C2012-001. Funds for these sub- projects shall be transferred from the DSWD, as Source Agency (SA) to the IA following the same COA guidelines. 2. The guidelines below describe the key operational adjustments in Program implementation in view of the shift of implementation responsibility from the BSPMC to the BLGU. All RPMOs are directed to follow these guidelines to ensure proper BLGU-led implementation of PAMANA sub-projects, and management of PAMANA funds. 3. Changes in the Memorandum of Agreements and Sub-Project Agreements: 3.1 The DSWD shall execute two agreements with the LGU in the course f implementing the KC-NCDDP- PAMANA. These are (i) the Memorandunt of Agreement, executed at the start of social preparation activities, and; (ii) the Sub-Project Agreement (SPA), executed prior to the start of PAMANA sub-project implementation (SPI). 3.2 The current General Memorandum of Agreements (MOA) and the Specific Implementation Agreement (SIA) covering responsibilities of the DSWD, Municipal LGU, and the BLGU in the implementation of social preparation and community mobilization processes of the KC-NCDDP PAMANA Program shall be adjusted to reflect the BLGU as the IA of PAMANA sub-projects. A sample MOA and SIA is attached as annex A. 3.3 A separate MOA, in the form of the Sub-Project Agreement (SPA), covering transfer of funds and other agreements in the implementation of specific PAMANA sub-projects shall be executed between the DSWD (as the SA) and the BLGU (as the IA) upon approval of the PAMANA sub-project request for fund release (RFR). The SPA shall be the basis for, and should be executed prior to release of funds. A sample SPA reflecting these changes is attached as annex B. 4, Social Preparation: 4.1 Social preparation and community mobilization processes to identify needs, select interventions, and prioritize sub-projects to be supported using PAMANA grants shalladhere to the standards prescribed in the KC-NCDDP Community Empowerment Activity Cycle (CEAC). 4.2 The KC-NCDDP shall provide BLGUs with capability building support necessary for the Performance of their function in implementing PAMANA sub-projects. Capability building activities for BSPIMCs and other community volunteers shall be included as part of the CEAC interventions. 5. Sub-project implementation, and procurement: 5.1 The BSPMC shall still be formed to manage implementation of the PAMANA sub-project following the KC CEAC sub-project implementation (SP!) procedures, except for finance ‘and procurement. Formation of BSPMCs shall be undertaken through Barangay Assembly (BA) following KC-NCDDP standards. A Barangay Assembly (BA) and Barangay Sanggunian resolution shall be enacted for this purpose. 5.2 Procurement for PAMANA sub-projects shall be lodged with the Barangay Bids and Awards Committee (BAC)* in accordance with the procedures of R.A. 9184. 5.2.1 The Barangay BAC shall use the LGU Procurement Manual, approved and issued by GPPB, for the procurement of goods & services, infrastructure and applicable consulting services; 5.2.2 The Community Participation in Procurement Manual (CPPM) approved and issued by GPPB shall be used in the engagement of labor groups and local/indigenous materials; 5.3 Bids and Awards Committee (BAC) Secretariat ensure an orderly management of procurement actions and records. For this purpose, the Punong Barangay shall designate one member of the Sangunian Barangay to head the BAC Secretariat with the Procurement Team of the BSPMC as members. The BAC Secretariat shall provide the administrative support to the BAC. 5.4 Technical Working Group (TW6) The BAC, with the prior approval of the Punong Barangay, may create a TWG from a pool of technical, financial and/or legal experts to assist in the procurement process. The BAC shall consider the expertise required based on the nature of the procurement. It is recommended that the TWG members should include (i) a representative or representatives of the end-user unit, and; (ii) experts in various disciplines, who can handle the different aspects of the procurement at hand, to ensure that the bid documents properly reflect the requirements, and the bids submitted will be rigorously evaluated. Members of the Municipal Inter-Agency Committee (MIAC), ACTs and other technical experts available in the area may be designated for the TWG. At least three shall compose the TWG, including the Chairperson of the BSPMC as representative of the end-user. * As per GPPB resolutions 01 ~ 2004 and 14-2013 he head of the procuring entity (Punong Barangay) shall create a BAC Secretariat to __5.5 Observers To enhance the transparency of the process, the BAC shall invite at least three (3) Observers who may attend and observe in all stages of the procurement. The Monitoring and Inspection Team (MIT) shall represent the BSPMC as observer. At least one observer should be from a Non-Government Organization (NGO) or Civil Society Organizations (CSO) who are actively operating in the Barangay, and at least one (1) observer shall come from a duly recognized private group in a sector or discipline relevant to the procurement at hand. ‘The non-attendance of observers does not invalidate the proceedings, provided that the observers were tendered prior written invitations. 5.6 Forms Applicable forms of the R.A. 9184 shall be used. 6. Financial Management Systems BLGU-led PAMANA implementation 6.1 Transfer of funds to the BLGU 6.1.1 BLGU will open a Trust Account solely for the purpose of PAMANA implementation 6.1.2 Both PAMANA funds from DSWD and Cash LCC, if any, shall be deposited to said Trust Account 6.2 Supporting documents for transfer of funds, as provided for under COA Circular 2012- 001 Funds for the implementation of PAMANA sub-projects under the KC-NCDDP shall be downloaded in tranches, supported by the following documents; Approved Program of Works (for infra projects) and/or Project Proposal with estimated expenses (for other types of projects) Council Resolution authorizing the Punong Barangay to enter into contract Certification by the (MLGU} Accountant that funds previously transferred by DSWD to the BLGU, if any, have been liquidated, post Report duly approved by the Punong Baragay; and Report of Checks Issued and Report of Disbursements/Utilization of at least 90% of the 80% 1" tranche prepared by the Barangay Treasurer, certified by the Accountant, approved by the Punong Barangay, noted by the MLGU LCE, and duly received by the Auditor of the Leu; 1 tranche 2" and final tranche + Letter requesting release of 1*|+ Letter requesting release of 2™ and tranche final tranche + Copy of MOA + At least 60% Physical Accomplishment |1 tranche 2" and final tranche audited and taken up in the books, OR Certification by the DSWD Regional Office that no DSWD funds have been transferred to the BLGU for DSWD programs, projects, and activities. + Copy of Official Receipt as proof of receipt of funds 6.3 Utilization of funds at the BLGU level 6.3.1 Funds shall be managed and disbursed by the BLGU. Account signatories shall follow the usual BLGU account signatories provided for by law. Hence, the provision of the KC-NCDDP Financial Managernent System on the BSMPC Chair and AC as account signatories will not apply. 6.3.2 Utilization of funds by the BLGU shall follow usual government accounting and auditing laws, rules and regulations on disbursement of government funds 6.4 Physical and financial reports 6.4.1 Physical Accomplishment Reports shall follow usual KC community physical accomplishment reporting templates and procedures. 6.4.2 Financial Reports shall follow usual KC community financial reports, templates, and procedures as stipulated in the KC-NCDDP Finance Manual 6.4.3 Physical and financial reports shall be approved by the BLGU Chairman and noted by the BSPMC Chair. 6.4.4 Financial reports shall be prepared by the Barangay Treasurer to be assisted by the ACT Financial Analyst. 6.5 Final liquidation requirements Within three months after completion of the subproject, the following reports shall be submitted by the BLGU to the DSWD Regional Office: 6.5.1 Report of 100% Physical Accomplishment prepared by the BSPMC Chairperson, duly approved by the Punong Barangay and noted by the Municipal Local Chief Executive. 6.5.2 Report of Checks Issued and Report of Disbursements/Utilization of the remaining funds prepared by the Barangay Treasurer, certified by the Accountant, approved by the Punong Barangay, noted by the MLGU LCE, and duly received by the Auditor of the LGU; 66.5.3 Copy of OR issued by the DSWD for the refund of unexpended balance, if any. For your guidance and strict compliance. ¢AZON JULTANO-SOLIMAN