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TABLE OF CONTENTS

ACRONYMS 3

CHAPTER 1: INTRODUCTION 5
1.1 Key Project Principles 6
1.2 Project Goals and Objectives 7
1.3 Project Components 8
1.4 Sub-projects eligible for financing 8
1.5 Sub-projects not eligible for financing 9
1.6 Utilization of Community Grants 10

CHAPTER 2: FINANCIAL MANAGEMENT STRUCTURE


AND FUNCTIONS 11
2.1 Project Financial Management Structure and Functions 12
2.2 Financial Management Role of the Coordinating Teams 13
2.3 Barangay Sub-project Management Structure 17
2.4 Financial Management Role of the Community 18
2.5 Financial Management Functions 19

CHAPTER 3: FINANCIAL MANAGEMENT ROLE IN SUB-


PROJECT CONCEPTUALIZATION AND APPROVAL 23
3.1 Sub-project Conceptualization 24
3.2 Technical Assistance Fund 24
3.3 Sub-project Preparation and Development 27
3.4 Sub-project Consultation and Approval 28

CHAPTER 4: FUND RECEIPTS 29


4.1 DSWD Grant Funds 30
4.2 Local Cash Counterpart Contribution 38
4.3 Interest Earnings 39
4.4 Other Forms of Cash Receipts 39
4.5 Cash Receipts Internal Control Guidelines 40
4.6 Recording and Filing 41

CHAPTER 5: FUND DISBURSEMENTS 43


5.1 Transactions 44
5.2 Payments 44
5.3 Processing and Flow of Documents 45
5.4 Withholding Taxes 47
5.5 Supporting Documents 54
5.6 Cash Disbursement Internal Control Guidelines 61
5.7 Recording and Filing 62

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CHAPTER 6: PETTY CASH FUND 64
6.1 Expenses Covered by Petty Cash Fund 65
6.2 Establishment of Petty Cash Fund 65
6.3 Disbursement of Petty Cash Fund 66
6.4 Replenishment of Petty Cash Fund 66
6.5 Final Liquidation of Petty Cash Fund 67

CHAPTER 7: LOCAL COUNTERPART CONTRIBUTION 69


7.1 Classification 70
7.2 In Kind Contributions 70
7.3 Valuation and Costing 71
7.4 Recording and Filing 73

CHAPTER 8: BOOKKEEPING AND PREPARATION OF


REPORTS 75
8.1 Cash Book 76
8.2 LCC In-Kind Journal 77
8.3 Status of Sub-project Fund Utilization Report 78

CHAPTER 9: UNUTILIZED COMMUNITY GRANT FUNDS 79


9.1 Kinds of Unutilized Grant Funds 80
9.2 Mechanics for the Utilization of Surplus, Left-over and Excess
Funds 81
9.3 Mechanics for the Utilization of Savings 81
9.4 Procedures in Determining Excess Funds 82
9.5 Procedures in Determining Existence of Savings 84
9.6 Use of Contingency 85

CHAPTER 10: FINANCIAL MONITORING SYSTEM 88


10.1 Financial Monitoring Activities 89
10.2 Monitoring Checklist 93

CHAPTER 11: FINANCIAL MANAGEMENT SYSTEM FOR


KALAHI-CIDSS OPERATION AND MAINTENANCE
GROUPS/ASSOCIATIONS 100
11.1 Organizational Structure and FM Roles of Officers 101
11.2 Cash Receipts/Collections 101
11.3 Cash Disbursements/Payments 103
11.4 Recording and Filing 104
11.5 Determining Non-Cash Transactions 105
11.6 Preparation of Financial Reports 105

CHAPTER 12: BSPMC FORMS AND ANNEXES 107


12.1 BSBSPMC Forms 108
12.2 Annexes 108
11.3 Attachments 109

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ACRONYMS
AC Area Coordinator
ACPP Actual Community Procurement Packaging
ACT Area Coordinating Team
AIC Audit and Inventory Committee
AR Acknowledgment Receipt
BA Barangay Assembly
BAC Bids and Awards Committee
BDC Barangay Development Council
BIR Bureau of Internal Revenue
BLGU Barangay Local Government Unit
BSPMC Barangay Sub-Project Management Committee
CBIS Capacity Building and Implementation Support
CEAC Community Empowerment Activity Cycle
CERS Community Employment Record Sheet
CF Community Facilitator
CO Central Office
COA Commission on Audit
CPA Certified Public Accountant
CPS Community Process Specialist
CSW Criteria Setting Workshop
DAC Deputy Area Coordinator
DOD Deed of Donation
DSWD Department of Social Welfare and Development
DV Disbursement Voucher
EWT Expanded Withholding Tax
ExeCom Executive Committee
FM Financial Management
FMS Financial Management System
FO Field Office
GMP Government Money Payments
GOCC Government-Owned and Controlled Corporations
IGP Income Generating Project
KALAHI-CIDSS Kapitbisig Laban sa Kahirapan-Comprehensive and
Integrated Delivery of Social Services
KC KALAHI-CIDSS
LBP Land Bank of the Philippines
LCC Local Counterpart Contribution
LCE Local Chief Executive
LGU Local Government Unit
MCT Municipal Coordinating Team
MDC Municipal Development Council

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ME Municipal Engineer
MFA Municipal Financial Analyst
MIAC Municipal Inter-Agency Committee
MIBF Municipal Inter-Barangay Forum
MIT Monitoring and Inspection Team
MLGU Municipal Local Government Unit
MOA Memorandum of Agreement
MTA Municipal Trust Account
NGA National Government Agency
NGO Non-Government Organization
NOL No Objection Letter
NPMO National Project Management Office
NPMT National Project Management Team
O&M Operation and Maintenance
OR Official Receipt
PCF Petty Cash Fund
PCPP Planned Community Procurement Packaging
PCV Petty Cash Voucher
PIT Project Implementation Team
PO People's Organization
PO Purchase Order
POW Program of Work
PPT Project Preparation Team
PRA Participatory Resource Allocation
PT Procurement Team
RCIS Regional Community Infrastructure Specialist
RER Reimbursement Expense Receipt
RFA Regional Financial Analyst
RFFP Regional Finance Focal Person
RFR Request for Fund Release
RPD Regional Project Director
RPM Regional Project Manager
RPMO Regional Project Management Office
RPMT Regional Project Management Team
SPA Sub-Project Agreement
SPI Sub-Project Implementation
TAF Technical Assistance Fund
TIN Tax Identification Number
TOR Terms of Reference
TWG Technical Working Group
VAT Value-Added Tax
VLCC Voucher for Local Counterpart Contribution

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CHAPTER 1
INTRODUCTION
Key Project Principles
Project Goals and Objectives
Project Components
Sub-projects eligible for financing
Sub-projects not eligible for financing
Utilization of Community Grants

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Financial Management is one of the
significant activities and the most
critical in the implementation of sub-
projects. It refers to the efficient
handling of funds, ensures that assets
acquired are secured and that
management act and decide in the
best interest of its stakeholders.

Since one of the objectives of KALAHI-


CIDSS Project is empowerment, the
communities are given authority to plan, control and make financial
decisions during Sub-project implementation. As such, they are primarily
responsible in making sure that sub-projects objectives are attained and
that there is proper accountability.

1. 1 Key Project Principles

The KALAHI-CIDSS Project is guided by the principles of LET-CIDSS:

Localized decision-making
Communities decide on the identification, preparation and prioritization of
projects to be funded.

Empowering
Building the capacity of communities to undertake their own problems,
manage, plan, implement and mobilize resources for their projects.

Transparent
Every amount spent for the projects is presented to the public through a
multi-level monitoring system and independent monitoring by NGOs and
media groups.

Community Prioritization
Each participating barangay shall submit a proposal to an inter-barangay
forum where most responsive projects are evaluated and prioritized for
funding.

Inclusive and Multi-stakeholders


The whole barangay assembly is involved with all participating sectors.

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Demand-driven
Communities are encouraged to prioritize their own needs, design their
own projects and decide on how resources are used.

Simple
All procedures and components of the project are kept simple to enable
all players to easily understand and become fully involved in the Project.

Sustainable
All barangay projects shall have viable long-term plans for operations and
maintenance and sustainability.

1. 2 Project Goals and Objectives

The KALAHI-CIDSS Project envisions the development of self-propelling


communities in high poverty incidence areas in the countryside, where
people actively participate, lead and propel development activities that
will improve the peoples overall quality of life. In support of this vision,
the Project provides opportunities to:

Empower local communities, involving delivery of capacity-building


inputs and the creation and institutionalization of community-based
mechanisms that will allow the people to freely exercise their right to
decide on issues affecting their own development. Emphasis is given to
vulnerable groups like the Indigenous Peoples, farmers, fisher folk, by
ensuring their inclusion in the decision-making process especially on
matters pertaining to resource allocation and use.

Improve local governance, both at the barangay and municipal levels,


by revitalizing local governance structures designed to encourage
community consultation and ensure transparency and accountability,
following the principles and processes of good governance as mandated
by the Local Government Code (Republic Act 7160). Through capacity-
building sessions and other project interventions, poor communities and
their local governments are primed to undertake relevant community
development activities through collaborative partnership engagements.

Aid in the Reduction of Poverty through the provision of funds for


basic community infrastructure or common service facilities and other
relevant projects that address community-defined needs and
vulnerabilities. It is assumed that with empowered communities and
improved local governance, sub-projects of communities will be relevant,
successful and sustainable.

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1. 3 Project Components

The Project is comprised of the following components: Capability Building


and Implementation Support, Community Grants, Monitoring and
Evaluation, which are discussed in detail below:

Capability Building and Implementation Support

Social Mobilization and Community Organizing.


KALAHI-CIDSS mobilizes local communities to participate in the
Project through provision of technical assistance by facilitators and
community organizations.

Capacity Building and Technical Support.


KALAHI-CIDSS strengthens the capacity of local communities and
local government units to initiate, plan and implement, manage and
supervise barangay sub-projects, through the provision of technical
assistance, training and workshops.

Community Grants

The Project carries out community development sub-projects,


including investment in economic and social infrastructure,
environmental conservation measures and capacity building, through
the provision of grants to barangays.

The Project also carries out audits of the records, accounts and
financial statements of expenditures relating to the implementation
of community development sub-projects.

Monitoring and Evaluation

The Project strengthens the capacity of the National Project


Management Office and local communities to monitor and evaluate
implementation of the Project and barangay sub-projects,
respectively through the development of baseline data and
computerized management information system.

1.4 Sub-projects eligible for financing

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1. Physical infrastructures such as but not limited to farm-to-market
roads, small bridges or small irrigation systems;

2. Social service infrastructures such as classrooms, potable water


supply and clinics or sanitation facilities;

3. Common service facilities like post-harvest facilities (dryers, millers,


shellers, etc.), provided these will support existing production in the
area and supporting viable operations where an organizational and
financing plan can be presented;

4. Environmental protection such as watershed rehabilitation;

5. Capability building such as skills training; and,

6. Others, provided they are not included in the list of sub-projects that
cannot be funded by KALAHI-CIDSS as shown below.

1.5 Sub-projects not eligible for financing

1. Acquisition of weapons, chainsaws, explosives, pesticides, insecticides,


herbicides, asbestos and other potentially dangerous materials and
equipment and fishing boats and nets above the prescribed size and
weight of the Fisheries and Aquatic Resources Bureau;
2. Road construction into protected areas;
3. Use of project funds for purchase or compensation for land;
4. Micro-credit and livelihood activities which involve on-lending of project
funds;
5. Maintenance and operation of facilities provided with project funding;
6. Activities that have alternative prior sources of committed funding,
7. Recurrent government expenditures (e.g. salaries for government and
LGU staff);
8. Construction or repair of government offices, meeting halls and places
of religious worship,
9. Political and religious activities, rallies and materials;
10. Salaried activities that employ children below the age of 16 years;
11. Activities that unfairly exploit women or men at any age;
12. Travel;
13. Consumption items or events;

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14. Assistance to, or training of, the military, police, national guard, or
other quasi-military organization or unit; and
15. To pay for the performance of abortions as a method of family
planning or to motivate or coerce any person to practice abortion,
to pay for the performance of involuntary sterilization as a method
of family planning or to coerce or provide financial incentive to any
person to undergo sterilizations.

1.6 Utilization of Community Grants

Once the sub-project is approved, the Grant amount cannot be changed,


although re-allocation among the different components can be done
within the budget. If actual cost exceeds the approved budget, the
community will shoulder the difference, either by increasing their own
contribution or by accessing additional funds from local government units
or other funding sources. On the other hand, if the actual cost is lower
than the approved budget, e.g. the community incurred savings during
sub-project implementation, and the community decided not to use it, the
full amount shall be refunded to the DSWD KALAHI CIDSS Current
Account maintained by the DSWD Central Office. The said refund shall be
supported with Barangay Assembly Resolution waiving the communitys
rights to utilize the savings stating the reasons in detail. The refund can
either be made thru direct bank to bank transfer or thru over the counter
deposit. In any case, the community shall forward a copy of the transfer
notice or deposit slip to the DSWD-CO thru the DSWD-FO for reference
and use in the monitoring and reconciliation of balances of the Current
Account.

On the other hand, excess fund from approved community grant which
may no longer be needed by the community to complete the sub-project
shall be retained at the DSWD Central Office and shall no longer be
released to the concerned community except under the following
conditions (a) discovery during sub-project implementation of additional
works needed related to the approved sub-projects (b) actual local
counterpart contribution mobilized by the community is greater than the
amount committed and (c) the community incurred legitimate savings
during sub-project implementation. Otherwise, said fund shall be used to
finance other approved sub-projects.

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CHAPTER 2
FINANCIAL MANAGEMENT STRUCTURE
AND FUNCTIONS
Project Financial Management Structure and Functions
Financial Management Role of the Coordinating Teams
Barangay Sub-project Management Structure
Financial Management Role of the Community
Financial Management Functions

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2.1 Project Financial Management Structure and
Functions

The diagram below illustrates the financial management structure of


KALAHI-CIDSS Project

Central Office
National Finance
Project Service
Management
Office

Regional Office
Area
Coordinating Municipal Inter-
Regional Manage Barangay
Team
Project ment Forum
Management Division (MIBF)
Office
Municipal
Coordinating
Team Barangay
Assembly and
Sub-project
Implementation

Headed by a National Project Manager, the NPMO is responsible for the


over-all management of the project. It is composed of DSWD organic staff
and contracted consultants and technical staff.

The Finance Service, headed by the Chief Finance Officer, is the primary
responsible in the over-all financial management of the Project. Since its
function is mainstreamed, it is mostly composed of DSWD organic staff
and some contracted consultants and technical staff.

Headed by a Regional Project Manager, the RPMO is responsible for the


day to day operations of the project. Its functions include but not limited
to implementation of national policies and regional directions and
strategies, provision of technical assistance and supervise work
performance of ACTs, manage engagement with the LGUs and other
stakeholders.

The Management Division is responsible in making sure that national


financial policies and directives of the Project are fully carried out. As
such, aside from their mainstreamed functions, they are expected to
monitor Project implementation and provide technical assistance.

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2.2 Financial Management Role of the Coordinating
Teams

The Area Coordinating Team (ACT), the frontline workers of the Project in
the field, is composed of an Area Coordinator, Deputy Area Coordinator,
Municipal Financial Analyst and Community Facilitators has the primary
responsibility of providing assistance to the communities in their exercise
of financial management.

The specific functions of each member are as follows:

Area Coordinator (AC)


Protect Project funds. As one of the co-signatories of the communitys
bank account, he/she ensures that all disbursement vouchers are
reviewed by the Municipal Financial Analyst before signing the checks.
Assist the communities in resource accessing.
Coordinate with Donors to ensure timely delivery of committed Local
Counterpart Contributions.
Evaluate the request of the communities for technical assistance fund.
Review, evaluate and sign Requests for Fund Release.
Review and approve all financial reports prepared by the Municipal
Financial Analyst and ensure that these and other financial documents
especially the original paid Disbursement Vouchers and its supporting
documents are submitted completely and on time to the RPMT.
Investigate finance-related issues and complaints and immediately
submit written report and recommendations to the RPMO to prevent
any possible misuse of funds.

Deputy Area Coordinator (DAC)


Act as an alternate co-signatory of all financial transactions at the
community level in the absence of the AC (i.e. Chapter 4.1.1 Sec. iv)
Provide adequate technical assistance to the different Barangay Project
Preparation Team (PPTs) in the preparation of sub-project concepts for
the Municipal Inter-Barangay Forum for Participatory Resource
Allocation (MIBF-PRA) so that proposals submitted are realistic,
especially in regards to the cost estimates.
Conduct technical review of the sub-project proposals submitted by the
communities. The review will include but not limited to the following:
Detailed cost estimates used in the proposed budget;
Assignment of monetary value to local contributions in kind; and
Assessment of the capability of communities to contribute.
Assist the Audit and Inventory Committee, through job coaching in
the:
inspection of the delivery of materials;
audit of materials inventory; and,

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valuation of unutilized materials
Monitor the physical progress of sub-project implementation and
regularly compare against the Municipal Financial Analysts records of
the communitys fund utilization.
Provide regular updates to the Area Coordinator.

Municipal Financial Analyst (MFA)


Provide technical inputs in the preparation and review of Program of
Works (POW) particularly on the reasonableness of costs and
appropriateness of items charged under the Indirect Costs.
Review all Requests for Fund Release (RFR) including completeness,
validity and consistency of data of all required supporting documents.
Maintain RFR tracking system.
Review and sign all Disbursement Vouchers prior to ACs signature of
check.
Assist the BSPMCs, including the different units or teams under them
through job coaching in a) setting up of the cash book and Local
Counterpart Contribution In-Kind Journal and recording of transactions,
b) doing Bank Reconciliation and c) preparing Status of Sub-project
Fund Utilization Report.
Monitor and validate financial sub-project status of the communities
through field visits.
Monitor delivery and utilization of LCC including Municipal Trust
Account based on the approved LCC Delivery Plan and provide timely
feedback to AC for appropriate action in case of potential delay.
Initiate Municipal Fiduciary Workshops.
Prepare and timely submit municipal financial monitoring reports to the
RPMT. Make sure that soft reports are properly backed-up with hard
copies.
Collect and timely submit Status of Sub-project Fund Utilization
Reports prepared by the Community Bookkeepers. Make sure that the
books of the BSPMCs are up-to-date and that they maintain complete
copies of all financial reports including Bank Snapshots/Statements
and Bank Reconciliation Statements.
Collect and timely submit original paid disbursement vouchers and its
supporting documents to RPMT thru the AC. Maintain an inventory of
all paid Disbursement Vouchers.
Provide regular financial updates to the MCT/MIAC/TWG and other
stakeholders.
Submit monthly feedback report (narrative) to the Regional Financial
Analyst as regards community financial management system.
Maintain complete file of all financial documents and reports and duly
acknowledged transmittal letters.
Provide regular updates to the Area Coordinator.

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Community Facilitator (CF)
Motivate the BSPMC Financial Management volunteers to perform their
functions.
Initially review Disbursement Vouchers as to completeness of
documents and validity of transactions.
Assist the BSPMCs, especially the Treasurers in installing a filing
system.
Monitor compliance of FM volunteers on the filing system installed.
Provide updates to MFA regarding the communities financial status.
Provide feedback on the over-all status of sub-project implementation
to the Area Coordinator.

To support KC implementation in the municipality, the MLGU is required


to form a composite team called Municipal Coordinating Team (MCT).
Their functions are the same as that of the ACT since they are expected to
gradually take over facilitation of the KC process by the third cycle.
However, the AC or DAC of the MCT can never be co-signatory of the
community accounts. Thus, either the Project hired Municipal Monitors
(MM) or the RFFP shall be the co-signatory of the community accounts.
Following are the MMs specific financial functions:

Municipal Monitor (MM)


Protect Project funds. As one of the co-signatories of the communitys
bank account, he/she ensures that all disbursement vouchers are
reviewed by the MFA before signing the checks.
Closely coordinate with MCT to ensure that:
Local Counterpart Contributions are timely delivered;
Requests for Fund Releases (RFRs) are timely prepared and
submitted to the RPMT; and
Finance-related issues and complaints are immediately reported to
the RPMO for appropriate action to prevent any possible misuse of
funds; and
Provide timely feedback to the Regional Financial Analyst as regards
community financial management system.

Apart from the ACT and MM, the Field Office (FO) shall create a Regional
Finance Focal Person (RFFP) who will be particularly responsible in
monitoring all financial transactions in case of on-going sub-project
implementation in phase out areas or where contracts of ACTs or
Municipal Monitors are terminated.

There shall be one RFFP per municipality except only when the FO sees
that she/he is responsible and capable to handle more than one. In case
where there should be more than one RFFP, it is mandatory that the FO
designate an FO-based RFFP to act as RFFP Coordinator. Following are the
roles and functions of the RFFP Coordinator and the RFFP.

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RFFP Coordinator
Assume full responsibility of Regional Financial Analyst in monitoring all
financial transactions of on-going sub-projects in phase out areas.
Render technical assistance to all designated RFFP to ensure validity
and accuracy of community fund disbursements.
Review the accuracy, completeness and validity of the RFR and the
accompanying documents of phase out areas with the assistance of the
RFA. He/She shall also review accuracy, completeness and validity of
the RFR and the accompanying documents of current areas in the
absence of RFA.
Certify correctness of the financial aspect of the RFR by signing the
Reviewed by portion.
Responsible in timely submission of all RFRs and financial reports to
the Central Office.
Coordinate with the RPMT all issues/concerns raised by the respective
RFFPs in the area.

RFFP
Replace the MM as co-signatory of the community bank account of all
on-going sub-projects where MMs contract is already terminated. As
such, to protect Project funds, he/she shall ensure that all
disbursement vouchers are reviewed by the Municipal Financial Analyst
before signing the checks.
Coordinate with the RFFP Coordinator to ensure validity and accuracy
of claims before approving payment.
Establish systems/strategies to facilitate disbursement of funds at the
community level to ensure that sub-project implementation is not
delayed.
Ensure that communities and MFA complies with the financial
reportorial requirements of the Project and in the submission of
original paid Disbursement Vouchers and its supporting documents to
the RPMT.
Ensure that community accounts are closed when sub-projects are
completed.
Provide timely feedback to the RFFP Coordinator.

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2.3 Barangay Sub-Project Management Structure

Barangay Assembly

Barangay
Development
Council

PSA Project Barangay Sub-Project Bids & Audit and O&M


Volunteers Preparation Representation Management Awards Inventory Committee
Team (PPT) Team (BRT) Committee Committee Team

Treasurer Secretary

Bookkeeper

Procurement Project Implementation Monitoring and


Team Team Inspection Team

Unlike the rest of the teams, the functions of these two teams ceases
when sub-project implementation commences:

1) Participatory Situation Analysis (PSA) Volunteers, formed to lead


in the conduct of participatory situational analysis, from data gathering
to community validation. These volunteers are either elected or chosen
during the first barangay assembly. In a typical KC barangay, about
two to three persons from each purok are chosen to serve as a PSA
volunteer. In large barangays, this is a sizable group.

2) Project Preparation Team (PPT). These are community residents


chosen to assist in the preparation of community proposals which will
be recommended by the barangays for prioritization during the MIBF-
PRA. There are no limits to the number of people who can be chosen to
serve in this team. They can be as few as three people or as many as
required by more complex sub-projects.

The Barangay Representation Team (BRT) is a committee formed to


represent the barangay in Municipal Inter-Barangay Forums. They can
also be chosen or elected by the Barangay Assembly during the 1st BA
meeting, or can be elected during the 2nd BA, prior to the CSW.

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The overall management of the sub-project is the direct responsibility of
the Barangay Sub-Project Management Committee (BSPMC), formed on
or before the 2nd Barangay Assembly of the CEAC as a committee under
the Barangay Development Council (BDC). (The Local Government Code
allows the BDC to form sectoral or functional committees to assist it in
mobilizing peoples participation in local development efforts, preparing
barangay development plans and monitoring and evaluating
implementation of national or local programs.)

Under the Barangay Sub-Project Management Committee (BSPMC), the


barangay residents may decide on various teams to implement the sub-
project. However, these three teams are mandatory: Procurement
Team, Sub-Project Implementation Team and Monitoring and
Inspection Team.

2.4 Financial Management Role of the Community

The primary role of the community is to implement the approved sub-


project, ensure that its objectives are attained and that there is proper
accountability. The community shall organize itself for this purpose as
indicated in the community organizational chart. In addition, the
community members shall have the following responsibilities:

Attend barangay assemblies.


Review the sub-project implementation plan as well as the budget.
Monitor sub-project implementation, including attendance to
biddings and inspection of deliveries.
Call the attention of the Sub-Project Management Committee if full
transparency is not being practiced or if there are negative
observations like:
no publication or announcement of bidding, approved contracts
and expenditures
no barangay assembly is called to make a report to the
community of the project status and fund utilization
questionable conduct of bidding, sub-standard materials used,
implementation not according to program of work, etc.
Report inaction by the BSPMC to the Community Facilitator, Area
Coordinator, or direct to the DSWD Grievance and Complaints Unit
Provide counterpart contribution (land, labor, materials, etc.)
Participate in the operations and maintenance of the sub-project
after completion.

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2.5 Financial Management Functions

The following teams and committees are responsible for individual


functions pertinent to the financial management of KALAHI-CIDSS
Project.

Sub-project Management Executive Committee (Execom)


Composed of the Chairperson, Punong Barangay (if he is not elected
as the BSPMC Chair; if the Punong Barangay is the BSPMC Chair,
then the BDC shall elect one representative from among the
NGO/PO representatives in the BDC), One Kagawad chosen by the
Barangay Council, Treasurer, Heads of the different Teams and
Chairperson of the Project Preparation Team (since the work of the
Team ends after the approval of the sub-project).
Approves Weekly Schedule of Disbursements.
Elects one (1) member for Bids and Awards Committee.
Convenes to discuss and approve reports, clarifies issues and
prepare narrative/explanatory report, catch up plan and revised
Schedule of Fund Release if necessary.
Holds Barangay Assembly to present status of physical and financial
accomplishments and addresses issues and questions raised.

Audit and Inventory Committee (AIC)


Acts as the communitys watchdog since they are independent from
other implementation units.
Its Head sits as non-voting member of the Bids and Awards
Committee (BAC).
Checks compliance of the BSPMC with the provisions of the KC
Community Finance Manual/Guidelines. As such the team shall:
o review Disbursement Vouchers and its supporting documents to
ascertain validity, accuracy and completeness of the
procurement and financial transactions.
o conduct surprise cash counts.
o conduct regular inventory of all properties acquired under the
sub-project.
o pre-audit petty cash replenishments.
o visit the sub-project to validate physical and financial status.
o review and certify records and reports of the Bookkeeper.
Provides feedback report to Barangay Development Council (BDC).
The team is composed of at least three members selected by the
community.

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Project Implementation Team (PIT)
Co-Prepares and endorses Weekly Schedule of Disbursements to the
Execom.
Prepares the following documents for the approval of the BSPMC
Chairperson:
o Daily Construction Logbook
o Physical Accomplishment Reports
o Statement of Works Accomplished
Reviews and signs time sheets and community employment record
sheets as recommending authority for labor payments.
Its team head approves requests for petty cash fund.
The team is composed of at least three members selected by the
community.

Bids and Awards Committee (BAC)


Composed of the Treasurer, Head of the Project Preparation Team
and one (1) member (except barangay officials) to be elected by
Execom.
In charged of ensuring that the BSPMC abides by the standards set
forth in the Community Procurement Manual.
Specifically, they are tasked to:
o advertise/Post invitation to bid
o conduct pre-procurement and pre-bid conferences
o determine eligibility of prospective bidders
o receive bids
o conduct the evaluation of bids with assistance of the TWG
o undertake the post-qualification proceedings
o recommend the award of contract to BSPMC Chairperson. When
BSPMC Chairperson disapproves the recommendation, such
disapproval shall be based on valid, reasonable and justifiable
grounds to be expressed in writing, copy furnished the BAC.

Monitoring and Inspection Team (MIT)


In charged of monitoring the progress of sub-project
implementation.
Validates the physical accomplishments based on reports prepared
by the Implementation Team and the approved detailed work and
financial plan and make appropriate recommendations to BSPMC
Chairperson.
Ensures that delivery of material, supplies and services and its
utilization are properly accounted and monitored. As such the team
shall (i) spot check actual deliveries and utilization of construction
materials and (ii) check entries made in the construction materials
record, tools & equipment record, construction daily logbook and
other records of the sub-project.
The team is composed of at least three members selected by the
community.

20 Community Finance Manual


Procurement Team (PT)
In charged of procurement for the sub-project. As such, the team
shall:
o prepare procurement documents
o act as Canvassers
o prepare and finalize Planned Community Procurement Packaging
(PCPP) & Employment Record Sheet (ERS) with the assistance of
DAC
o assist in the presentation of PCPP and ERS during Barangay
Assembly
o receive and record bids/quotations
o act as Secretariat to the Bids and Awards Committee
o assist in updating the status of ACPP and ERS
Prepares the community procurement plan.
Acts as the Secretariat of the BAC.
The team is composed of at least three members selected by the
community.

Treasurer
The Barangay Treasurer is automatically designated as the BSPMC
Treasurer.
Acts as one of the co-signatories of the communitys bank account.
She/He ensures that funds are utilized as intended.
Custodian over the funds and properties of the sub-project.
Acts as the disbursing officer of the sub-project.
Prepares the following documents:
o Breakdown of estimated sub-project cost in the Program of
Work, if theres no contracted Service Provider.
o Proposed Schedule of Fund Releases/Tranches
o Local Counterpart Contribution Plan
o Vouchers for receipts of LCC for SPI
In charged in the preparation of Requests for Fund Release (RFR)
and gathering of its supporting documents.
Posts list of donors and amount of donations in the Barangay Hall or
public place.
Submits original Disbursement Vouchers (DV) and its supporting
documents to the RPMT thru the AC.
Reports financial status during barangay assemblies.
Maintains a complete set of photocopies of all RFRs, DVs and other
financial documents.
Regularly updates the checkbook (i.e. cash in, cash out, cumulative
balance).

Bookkeeper
Records TAF receipts and utilization in the TAF Journal.
Records all receipts and utilization of funds in the Cash Book.
Records all LCC deliveries in the LCC Journal.

21 Community Finance Manual


Prepares Status of Sub-project Fund Utilization on a monthly basis
or when requesting for fund release.
Prepares monthly Bank Reconciliation Statement.
Ensures that books are updated.

22 Community Finance Manual


CHAPTER 3
FINANCIAL MANAGEMENT ROLE IN
SUB-PROJECT CONCEPTUALIZATION
AND APPROVAL
Sub-project Conceptualization
Technical Assistance Fund
Sub-project Preparation and Development
Sub-project Consultation and Approval

23 Community Finance Manual


3.1 Sub-project Conceptualization

Once appropriate intervention to address identified needs is approved by


the Barangay Assembly, the Head of Project Preparation Team (PPT)
accomplishes Sub-project Concept Form (BSPMC Form No. 1) with the
technical assistance of the Project Engineer and Municipal Financial
Analyst. In cases where intervention identified are technically
complicated and require feasibility study to determine their viabilities such
as but not limited to:

Water Supply with difficult water sources


Rural Electrification
Small Communal Irrigation
Concrete and Suspension Bridges
Road Construction/Improvement in difficult terrain
Survey and design for drainage canal (large sections that require
structural designs, multiple units that require reconnaissance survey
to establish inverts and point of discharge)
Feasibility studies for enterprise development sub-projects and
other special technical proposals that will require such

the PPT Head can request for Technical Assistance Fund (TAF) to engage
qualified service provider to conduct studies and prepare plans.

3.2 Technical Assistance Fund

a. Technical Assistance Fund (TAF) is a fund provided by the Project to


communities with complicated proposals that will require technical
expertise that are not available in the community like the
aforementioned. The TAF entitlement of the municipality is equal to the
number of participating barangays multiplied by the approved amount
plus local counterpart contributions.

b. The TAF is NOT accessible to interventions already with available pro-


forma plans, design and bill of quantities like Day Care Centers, School
Buildings, Health Stations, concrete box culvert and other vertical
structures for which the DSWD Field Offices have existing plans.

c. As soon as all identified interventions are approved by the respective


Barangay Assembly, the MIBF shall convene and pass a Resolution to

24 Community Finance Manual


avail their municipal allocation and engage qualified service provider.
They shall also elect a representative barangay who will lead in the
engagement of all service providers.

d. Upon issuance of the MIBF Resolution, the elected lead barangay shall
secure a Barangay Council Resolution authorizing the BSPMC
Chairperson, Barangay Treasurer and the Area Coordinator to open a
current/checking account with the nearest Land Bank of the Philippines
branch in the name of KALAHI-CIDSS (name of barangay) for both
grant fund and local counterpart cash contributions.

e. The Treasurer shall apply for additional bond premium to the National
Treasury in case premium paid is insufficient to cover current
maximum accountability determined by computing the average
amount of checks to be signed per month. Payment shall be charged
against the LCC cash.

f. Meanwhile, the ACT will generate a list of potential service providers as


basis for selection and engagement. The list must show the names of
individuals or firms with corresponding areas of expertise and
experience. The ACT may also coordinate with the regional and
provincial-based professional organizations (e.g. PICE, PICPA, etc.) for
their list of experts and their prevailing tariff for survey works, design,
plan preparation and cost estimating.

g. The potential service providers maybe invited during the criteria


setting and be oriented on the engagements terms of reference (TOR).
Procurement shall be done thru canvass. The Procurement Team (PT)
of the designated barangay will serve the canvass to the pre-listed
service providers. The Bids and Awards Committee will evaluate and
execute award based on compliance and responsiveness to the TOR.

h. The release of funds will require the following documents:

MIBF Resolution availing of the TAF for their prioritized sub-


projects, duly evaluated by the AC or DAC based on the TAF
Eligibility Checklist;
MIBF Resolution that designates a representative barangay who
shall be the contracting party of the service provider/s to be
engaged (for clustered barangays);
Current account with the LBP local branch, opened purposely for the
TAF by the designated barangay;
RFR representing the total cost needed for the engagement of
service provider/s but not more than the municipal entitlement,
with the following supporting documents:
Approved RFR;
MIBF Resolution to avail of the TAF;

25 Community Finance Manual


MIBF Resolution on the designation of a barangay who shall
be the contracting party (for clustered barangays);
Bank Certification indicating the community current account
number or Bank Statement/Snapshot
Bond Premium of Treasurer
Copy of notarized contract of service provider, TOR specifying
the expected deliverables, time of submission and mode of
payments;
Matrix of barangays availing of the TAF with the sub-project
type and the name of corresponding service provider; and
Accomplished TAF Eligibility Checklist for each barangay
availing of the TAF.

i. The procedures leading to the release of TAF is the same as that of the
grant fund release as discussed in detail in Chapter 4 under Fund
Receipts.

j. The usual payment procedures as discussed in Chapter 5 under Fund


Disbursements shall apply. These are the eligible expenses for TAF:

Payment of professional services


Reimbursement of transportation expenses of service provider in
case he/she is not charging professional fee
Purchase of materials and supplies for plans preparation/technical
assistance
Reproduction of Plans
Other expenses related to sub-project preparation and quality
assurance activities

k. The TAF can NEVER be use to pay technical assistance provided by


government officials and employees for the Project.

l. For monitoring purposes, the service provider must submit a work plan
with timelines and manpower requirements to the PPT. The work plan
shall be monitored by the DAC and PPT vis--vis the service providers
work progress and expected outputs. The DAC with the municipal
technical staff shall conduct thorough review of the service providers
outputs as regards compliance with the TOR.

m. In the review of the service providers output, specifically the detailed


proposal, the concerned PPT with the assistance of the Municipal
Financial Analyst should ensure that sub-project cost includes enough
provision for Administrative Cost. Among others, the following shall be
considered in determining the amount:

Traveling expenses and per diem for a) members of the


Procurement in serving Canvass and Purchase Orders; b) the

26 Community Finance Manual


Treasurer in processing payments, remittance of taxes, encashment
of payroll checks; c) the Bookkeeper in submitting monthly reports;
and d) other members of the BSPMC who are issued orders to
conduct business in relation to sub-project implementation.
Office Supplies including photocopying and printing of Sub-project
photos.

m. In no case shall payments to Service Providers be made without the


acceptance of the concerned PPT. Hence, it is very necessary that PPT
require the Service Provider to submit a work plan with timelines and
manpower. Said work plan will be the basis of the Project Engineer in
monitoring their work progress and compliance to expected outputs. In
case payments are made to any incomplete or incorrect outputs, those
who authorized the payment shall be made responsible in ensuring that
the outputs are corrected and/or liable to repay the amount paid to the
service provider.

n. If proposed intervention of the elected lead barangay is prioritized, the


current bank account for TAF shall serve as the current bank account for
community grants. Otherwise, it shall be closed immediately after final
approval of prioritized Sub-projects during MIBF-PRA. Any balance in the
grant released for TAF purposes shall be remitted back to the DSWD-
KALAHI CIDSS Central Office account thru direct bank to bank transfer or
thru over the counter deposit. In any case, the community shall forward a
copy of the transfer notice or deposit slip to the DSWD-CO thru the
DSWD-FO for reference and use in the monitoring and reconciliation of
balances of the Current Account.

3.3 Sub-project Preparation and Development

a. The Treasurer prepares the following after the PPT has prepared or
reviewed the detailed proposal for MIAC Technical Review:
Breakdown of Estimated Sub-project Cost in the Program of Work
(BSPMC Form No. 02) or to be prepared by the Contracted Service
Provider, if there is any
Proposed Schedule of Fund Releases/Tranches (BSPMC Form No.
05); and
Local Counterpart Contribution Plan (BSPMC Form No. 3).

b. After the MIAC review, the Treasurer shall revise the above documents
incorporating all their comments for presentation to the Barangay
Assembly.

27 Community Finance Manual


c. Before signing for final approval, the BSPMC Chairperson should ensure
that all comments and agreements during the 3rd BA were integrated in
the POW.

d. Then, the Procurement Team prepares the Planned Community


Procurement Packaging (BSPMC Form No. 4).

3.4 Sub-project Consultation and Approval

There is community participation in the whole process of developing the


Sub-project. The Sub-project is identified as a result of a participatory
situation analysis. It is then developed by the Project Preparation Team
but is first presented and approved by the barangay assembly before
submission to the Municipal Inter-Barangay Forum (MIBF). Likewise, the
detailed proposal and budget, procurement plan and local counterpart
contribution plan are all presented to the barangay assembly for approval
prior to submission to MIBF. Issues or questions raised by the community
are addressed and suggestions are entertained. Revisions are made if
necessary. This process is the best mechanism for internal control as, the
entire community is involved and there is full disclosure of all the details
of the Sub-project.

28 Community Finance Manual


CHAPTER 4
FUND RECEIPTS
DSWD Grant Funds
Local Cash Counterpart Contribution
Interest Earnings
Other Forms of Cash Receipts
Cash Receipts Internal Control Guidelines
Recording and Filing

29 Community Finance Manual


4.1 DSWD Grant Funds

Represent the DSWD share of the total approved Sub-project Cost. The
grant fund entitlement of the municipality is based on the number of
barangays multiplied by the approved amount and are deposited directly
to the communitys current bank account through on-line crediting from
the DSWD KALAHI-CIDSS Special Account.

The diagram below shows the process of grant fund release.

DSWD Servicing
CENTRAL Central Approve RFR;
Bank
Office prepare DV and
check and submit
to Servicing Bank

DSWD Review and approve


REGIONAL
Regional RFR; Prepare Request
Office for Fund Transfer and
send copy to DSWD-
NPMO

Local
MUNICIPAL Review and Branch
MIBF/ACT endorse RFR to
DSWD-RPMO

BSPMC Submit RFR and


BARANGAY supporting
documents

DISBURSEMENT

4.1.1 Initial Fund Release

The activities leading to the release of funds start after the MIBF-PRA. The
communities whose Sub-project proposals are prioritized and approved
shall immediately undertake the following activities:

a. Secure Barangay Council Resolutions:

i. Authorizing the Punong Barangay and the Project Management


Committee Chairperson to enter into a Tripartite Sub-project
Agreement (SPA) with the Municipal LGU and the DSWD.

ii. Authorizing the BSPMC Chairperson, Treasurer and the KC Area


Coordinator to open a current/checking account with the

30 Community Finance Manual


nearest Land Bank of the Philippines branch in the name of
KALAHI-CIDSS (name of barangay) for all grants and local
counterpart cash contributions.

In the case of the elected lead barangay who already opened


an account for the TAF, the same may also be used when Sub-
project is prioritized.

The same account may also be used for subsequent cycle


implementations when proposed Sub-project of the barangay is
again prioritized. A Barangay Resolution, however, should be
passed in case there are changes in the signatories.

iii. In the case where during Sub-project implementation the


BSPMC Chairperson intends to leave the barangay for a longer
period, the Barangay Assembly shall elect a replacement. After
the election, the Barangay Council shall execute a resolution
authorizing the duly elected replacement of the BSPMC
Chairperson as one of the signatories of the communitys
account.

iv. Also, in cases where there is no Area Coordinator hired yet or


the hired Area Coordinator has gone on official leave, the
Barangay Council shall execute a Resolution authorizing the
Deputy Area Coordinator to temporarily replace the Area
Coordinator as one of the signatories of the communitys
account. The execution of the Barangay Resolution for the
purpose shall be on the basis of the recommendation from the
RPMO. In no case shall the AC and DAC be authorized as co-
signatories to the community bank account at the same time.

v. The RMPO shall designate an RFFP to act as co-signatory of the


community bank account in any one of the following cases:

the AC/DAC/MM is remiss of his/her duties as such


there are no AC and DAC hired yet or MM for the third
cycle
there is still unfinished Sub-project implementation after
project phase out.

b. Open a current/checking bank account with the nearest Land Bank


of the Philippines

31 Community Finance Manual


Requirements:

In accordance with the Memorandum of Agreement between the


DSWD and the LBP (Attachment 1), the following shall be required
from the communities to open a current/checking bank account:

1. MIBF Resolution approving the Sub-project


2. Barangay Council Resolution authorizing the BSPMC
Chairperson, Treasurer of the LGU Barangay and DSWD Area
Coordinator as signatories
3. Initial P1,000 deposit
4. Two (2) valid identifications of each authorized signatory

Secure certification from the branch manager that a


current/checking bank account has been opened indicating the bank
account number. (See BSPMC Form No. 06)

Special Provision:
On the basis of the MOA between the DSWD and LBP, the bank shall
suspend any release from the account of the community beneficiary
found by DSWD to have violated the project principles. DSWD may
also request the LBP to apply other appropriate sanctions against
the said community account.

c. Complete the Tripartite SPA (See Attachment 3).

d. Treasurer to apply for additional bond premium.

Bond Requirement:

The Treasurer shall apply for additional bond premium to the


National Treasury in case premium paid is insufficient to cover
current maximum accountability determined by computing either of
the following:

the average amount of checks to be signed per month; or


the maximum amount of check to be signed during Sub-project
implementation; or
the amount of 1st tranche of community grant funds to be
released.

The amount shall be equivalent to the bond premium coverage of


such accountability (See Attachment 4). Payment shall be charged
against the Local Counterpart Contribution.

32 Community Finance Manual


e. Prepare and submit Request for Fund Release (RFR) (BSPMC Form
No. 7) together with the requirements to the RPMO through the
ACT.

4.1.1.1 Processing the Request for Fund Release

BSPMC Level

a. The BSPMC shall submit the RFR and its accompanying documents to
the ACT within ten (10) working days after the MIBF-PRA.

ACT Level

a. The ACT reviews the RFR and its accompanying documents submitted
by the BSPMC and submit the same to the RPMO within five (5)
working days.

b. Members of the ACT who reviewed the accompanying documents to


the RFR shall sign in the Reviewed by and Date portions of the RFR
Review Sheet (Annex 10) corresponding to the document specified in
the sheet.

RPMO Level

a. The RPMO through the Regional Community Infrastructure Specialist


(RCIS), Regional Financial Analyst (RFA) and Community Process
Specialist (CPS) reviews the accuracy, completeness and validity of the
RFR and its accompanying documents. They shall issue certification
that they have conducted thorough review of the Sub-project
documents and that the Sub-project is technically feasible and
economically acceptable using the Cost Effectiveness Ratio. The RFA
signs the Reviewed by portion of the RFR and a fax copy, with the
accompanying documents, shall be sent to the National Project
Management Office (NPMO) within five (5) working days.

b. In the absence of the RFA, it shall be the RFFP Coordinator who will
review and sign the RFR.

c. All other pertinent documents submitted by the BSPMC shall be


retained at the RPMO for safekeeping which shall thereafter be
transmitted to the DSWD Resident Auditor within ten (10) days of the
following month together with the photocopy of the documents
previously transmitted to the NPMO.

d. RPMO staffs who reviewed the accompanying documents to the RFR


shall sign in the Reviewed by and Date portions of the RFR Review

33 Community Finance Manual


Sheet (Annex 10) corresponding to the document specified in the
sheet.

e. The Regional Director/Project Manager shall be fully responsible and


accountable for all information that he/she certified/represented to be
correct in the RFR.

NPMT Level

a. The NPMO upon receipt of the RFR and other documents from the
RPMO immediately furnishes the NPMT-Financial Management Service
(FMS) copy of the MIBF Resolution enumerating the prioritized and
approved Sub-projects. Given that required documents are in order,
the NPMO shall have the National Project Director or Deputy National
Project Director approve/disapprove the RFR on the basis of the
recommending approval of RPMO.

b. The NPMO transmits/forwards the RFR with its accompanying


documents to the FMS within one (1) working day from receipt of the
same from the RPMO.

c. The FMS processes payment and transfers funds to the community


within four (4) days.

d. NPMT staff who reviewed the accompanying documents to the RFR


shall sign in the Reviewed by and Date portions of the RFR Review
Sheet (Annex 10) corresponding to the document specified in the
sheet.

e. On Fund Release, the NPMT-FMS shall furnish the RPMO and the DSWD
COA, through fax, the Notice of Fund Transfer (NFT). The RPMO
informs the ACT on the matter who shall in turn advice the BSPMC.
Likewise, the original copy of the NFT shall be sent to the BSPMC
Chairperson through the RPMO and ACT.

4.1.2 Subsequent Fund Releases

a. The Treasurer prepares RFR when grant fund balance is only 10% of
the previous fund release and the Sub-project physical
accomplishment has reached the required progress depending on the
tranching availed by the community for the 2nd tranche and 90% for
the 3rd /final tranche. In case the grant fund balance is more than
10% of the previous fund release therefore not eligible to request for
the next tranche but said balance is not enough to pay current
obligation, the BSPMC shall submit justification stating the need for
the release of the next tranche. The justification which will be

34 Community Finance Manual


endorsed by the ACT shall be attached to the RFR with a copy of the
Approved Purchase Order as proof of the obligation.

b. Preparation of the Financial Monitoring and other Required Reports


are assigned to the following:

1. The Bookkeeper handles the Status of Sub-project Fund Utilization


(Annex 11).
2. The Sub-project Implementation Team handles the Physical
Progress Report (BSPMC Form 17 for infra sub-project or Form 17A
for non infra Sub-project).
3. Procurement Team handles the Actual Community Procurement
Packaging (BSPMC Form 19).
4. Operations and Maintenance Committee handles the Operations and
Maintenance Plan.

c. Review and Validation of the reports are processed by the following


teams:

1. The Audit and Inventory Committee handles the Status of Sub-


project Fund Utilization.
2. The Monitoring and Inspection Team is in charged of the Physical
Progress Report.
3. The Project Implementation Team handles the Actual Community
Procurement Packaging.

d. The Execom convenes to discuss and approve the reports, clarifies


issues and prepares narrative/explanatory report, catch-up plan and
revised Projected Schedule of Fund Releases if there are shortfalls in
accomplishment or request does not follow the projected schedule.

e. The Execom also holds barangay assembly to present status of


physical and financial accomplishment and address issues or
questions raised. Minutes of the meeting shall be prepared and
submitted together with the RFR and reports to the ACT.

f. The routing of the documentation and the review and approval


process is the same as that for the initial fund release. It is always
understood that all representations contained in the RFR by the
Regional Director/ Project Manager shall be their primary
responsibility.

g. On the process of fund release, the same procedure as that of initial


fund release shall be adopted.

4.1.3 Schedule of Fund Release and Required Supporting


Documents

35 Community Finance Manual


The community grant funds shall be released in three tranches with the
following requirements:

1st tranche RFR

RPMO level
Barangay Council Resolutions
Sub-project Agreement
Local Counterpart Contribution Plan
Certifications on local contributions
Bond Premium of Treasurer
Notarized Deed of Lot Donation for titled lot or Quit Claim for non-
titled lots
Proposals/Feasibility Study for Public Good Sub-projects
Hydraulic Analysis for water system Sub-project

NPMO level
Request for Fund Release
MIBF Resolution
Sub-project proposal for Enterprise and Human Resource
Development Sub-projects
Program of Works following the prescribed cost sharing and with
detailed estimates (with signature of Municipal Mayor and Barangay
Captain to conform LCC commitments)
Planned Community Procurement Packaging and Schedule of In-
kind LCC
Procurement Action Plan
Local Counterpart Contribution for Sub-project Implementation
Monitoring Report
Bank Certification indicating the community current account number
or Bank Statement/Snapshot
Certificate of Review by the RCIS, RFA and CPS
Photographs of the proposed site (at least three). For water system,
source, reservoir and pipeline right-of-way; roads, photo covering
starting stations projected towards the mid-section or the whole
road right-of-way, if possible and photo projected from the end
station towards mid-sections
(For succeeding cycles) Certification from the Regional Director that
the following financial requirements pertaining to the
implementation of previous Sub-projects were duly complied with:
a) all Disbursement Vouchers together with the supporting
documents have been duly submitted, b) Established Petty Cash
Fund fully liquidated and c) Community funds fully utilized and/or
community bank accounts duly closed.
Operation and Maintenance Action Plan
RFR Review Sheet (Annex 10a)

36 Community Finance Manual


2nd trance RFR

RPMO level
Narrative Report (if there is a big variance in physical & financial
accomplishment)
Actual Community Procurement Packaging
Minutes of Barangay Assembly Meeting
Photographs of Sub-project progress
Registered Deed of Lot Donation for titled lots

NPMO level
Request for Fund Release
Status of Sub-project Fund Utilization (Annex 11)
List of Checks Issued (Annex 9)
Local Counterpart Contribution for Sub-project Implementation
Monitoring Report
Physical Progress Report signed by the Municipal Engineer and the
DAC and Regional Community Infrastructure Specialist.
Bank Statement/Snapshot
Operation and Maintenance Final Plan with notarized Mutual
Partnership Agreement
Certification from the Regional Director that the requirement of
monthly submission of all DVs as of the immediate preceding month
to the FO/COA had been fully complied with
RFR Review Sheet (Annex 10b)

3rd and final tranche

RPMO level
Same documents as above except for Registered DOD for titled Lots
Proof of pending financial obligations e.g. Delivery Receipts, Billings
as attachment to Certification.

NPMO level
Request for Fund Release
Status of Sub-project Fund Utilization (Annex 11)
List of Checks Issued (Annex 9)
Local Counterpart Contribution for Sub-project Implementation
Monitoring Report
Physical Progress Report signed by the ME, DAC and RCIS
Bank Statement/Snapshot
Certification indicating the total cost of remaining materials to be
procured and total cost of labor and other related expenditures to
be incurred to complete the Sub-project signed by the Chairs of the
PT and the BSPMC and noted by the DAC
Certification of any pending financial obligations e.g. unpaid
delivered materials, services rendered but not yet paid (wages/

37 Community Finance Manual


payroll) and other incurred but unpaid related expenditures signed
by the Treasurer, BSPMC Chair and noted by the DAC
Barangay Assembly resolutions confirming the certifications
Joint Inspection Report
Certification from the Regional Director that the requirement of
monthly submission of all DVs as of the immediate preceding month
to the FO/COA had been fully complied with.
RFR Review Sheet (Annex 10c)

The following tranching system on fund release of community grants, with


the corresponding required physical progress for 2nd tranche, shall be
allowed based on the recommendation of the RPM/RPD and upon approval
by the National Project Director /Deputy National Project Director:

1st tranche_ Required Physical Progress for 2nd tranche


50% 30% in place
51% to 60% 40% in place
61% to 70% 50% in place
71% to 80% 60% in place

In all cases, the required physical progress for the release of the 3rd and
final tranche shall be 90%.

4.2 Local Cash Counterpart Contribution

Cash counterpart contributions can come from congress people or from


the local government units out of their Internal Revenue Allotment.
Contributions coming from either the municipal or barangay LGU should
be contained in the Sub-project Agreement signed before the initial
release of grant funds. Allocation shall be evidenced by a provincial,
municipal or barangay council resolution appropriating funds for the
Project, in the case of LGU donors.

4.2.1 LCC Cash Counterpart Contribution for Capability


Building and Implementation Support (LCC for CBIS)

These are contributions which do not become part of the value of the
Sub-project but are intended to facilitate the conduct of activities of the
Project. Examples are cash expenses incurred during the conduct of
Community Empowerment Activity Cycle (CEAC). For this component,
donations are directly deposited to the Municipal Trust Account (MTA)
that is specifically opened to support the implementation of KALAHI-
CIDSS Project in the municipality.

38 Community Finance Manual


4.2.2 LCC Cash Counterpart Contribution for Sub-project
Implementation (LCC for SPI)

These are cash contributions that form part of the investment cost or
value of the sub-project. The minimum LCC cash for sub-project
implementation is fifteen percent (15%) of the grant component.
Said cash LCC shall be deposited in the community account prior to the
request of grant funds. If not deposited in full, delivery shall follow the
RFR tranching used for Grant Funds.

Cash donations are given to the community through the BSPMC and
deposited by the Treasurer to the same bank account as the grant. The
Treasurer shall issue a pre-numbered Acknowledgement Receipt (BSPMC
Form No. 21) for all cash donations. As proof that donations are deposited
to the community bank account, a copy of the validated Deposit Slip will
be provided to the Donor. However, in case where LCC cash is available
even prior to sub-project implementation or opening of communities
accounts, the Donor may deposit said cash in the Municipal Trust Account
opened by the MLGU for the Project. The Municipal Treasurer shall issue
an Official Receipt to acknowledge receipt. The cash shall be immediately
transferred to recipient communities as soon as respective accounts have
been opened.

4.3 Interest Earnings

Interest earnings accruing to the community bank accounts shall stay at


the account maintained for use of the community for project-related
activities (e.g. purchase of direct items or augmentation fund for admin
expenses).

4.4 Other Forms of Cash Receipts

4.4.1 Proceeds from Sale of Bidding Documents

These are cash received by the Treasurer as proceeds from sale of bidding
documents. The Treasurer shall issue a pre-numbered Acknowledgement
Receipt to interested bidders for the cash received and record it in the
logbook. These shall be used to pay or reimburse reproduction cost of
bidding documents and other expenses incurred during bidding activities.

39 Community Finance Manual


4.4.2 Bid Security

A guarantee required to ensure that the successful bidder shall, within


five calendar days from receipt of the Notice of Award, sign the contract
with the BSPMC. It could be in a form of cash or certified check (cashiers
or managers check, bank draft, letter of credit or bank guarantee) but
never a Personal Check. Upon receipt, the Treasurer will issue a pre-
numbered Acknowledgement Receipt and will deposit the whole amount in
the Community Account. The validated deposit slip shall be attached as
part of the bidders documents. All securities of the non-winning bidders
will be refunded only after the winning bidder has signed contract with the
BSPMC. Bid Security of the winning bidder shall be refunded after posting
the performance security. These securities are not properties of the
BSPMC hence it shall never be used for other purposes.

4.4.3 Performance Security

A security posted by the winning bidder to guarantee its faithful


performance of its obligations under the contract prepared in accordance
with the bidding documents. This is equivalent to 5% of the contract price
and can either be in a form of cash or certified check (cashiers or
managers check). Upon receipt, the Treasurer shall issue a pre-numbered
Acknowledgement Receipt and shall deposit the whole amount in the
community account. This can only be refunded to the Contractor at the
end of the warranty period. Hence, the Treasurer shall record this amount
and its details in a logbook as accounts payable to make sure that the
BSPMC is aware that this amount is not available for disbursement. The
Bookkeeper shall likewise fully disclose in the Annex 11 the total amount
and deduct from the actual funds available for use.

In case where closing of community account is mandated by the Project,


the community shall require the Contractor to convert this performance
security to Bank Guarantee. Upon receipt of the Bank Guarantee, the
Treasurer shall prepare a Disbursement Voucher and shall issue a check
equal to the amount received.

4.5 Cash Receipts Internal Control Guidelines

The community shall observe the following internal control guidelines:

a. Only the Treasurer is authorized to receive any check or cash


contributions. He/She must issue pre-numbered Acknowledgement
Receipt, duly accomplished, dated and issued in sequential order.

40 Community Finance Manual


b. The Barangay Assembly, through the information drive of the BSPMC
shall be encouraged to set a day (or a meeting) when community
members can give their cash contributions. This will lessen the
number of times that the Treasurer will keep going back to the LBP
branch since total collections can be deposited at one time.
b. All checks and cash contributions received for the day must be kept in
the cash box prior to deposit and should be deposited intact to the
bank not later than the following banking day.
c. The Audit and Inventory Committee and/or the Municipal Financial
Analyst should make surprise cash counts of undeposited collections
periodically.
d. Bookkeeping functions should strictly be done by a person different
from the one performing cashiering functions in order to maintain
check and balance.
e. List of donors and amount donated should be posted in the Barangay
hall for transparency purposes.

4.6 Recording and Filing

4.6.1 Recording

A. Receipt of Technical Assistance Fund

The Bookkeeper shall record all payments in the TAF Journal (BSPMC
Form 20). After utilization of the TAF, the Bookkeeper shall submit the
TAF Journal to DSWD Field Office thru the AC or DAC. The Treasurer shall
submit the DV and its supporting documents to the DSWD Field Office
thru the AC or DAC for submission to the COA. Both Bookkeeper and
Treasurer shall ensure that submission is evidenced by a transmittal
letter.

B. Receipt of DSWD Grant Funds

Based on the notice of fund transfer or bank snapshot, the Bookkeeper


will record receipt of funds in the Cash Book (Annex 12).

C. Receipt of Local Cash Counterpart

LCC for CBIS

Since cash for this component stays with the MLGU (i.e. direct deposit to
MTA) the Project will not record receipt until spent. The basis therefore of
the MFA to record counterpart is the actual expenditure or disbursement
from the MTA. Hence, the MFA will prepare a Voucher for Local

41 Community Finance Manual


Counterpart Contribution (VLCC) (BSPMC Form No. 10) for each eligible
paid Disbursement Voucher charged against the MTA. On a monthly basis,
the MFA will record in the Municipal Local Counterpart Contribution
Journal for Capability Building and Implementation Support (Annex 8) all
VLCCs issued for the period.

LCC for SPI

On the basis of the Acknowledgement Receipt with attached validated


deposit slip issued by the Treasurer to the donors, the Bookkeeper will
record receipt of funds in the same Cash Book used for DSWD Grant
Funds.

D. Other forms of Cash Receipts (Bid and Performance Securities)

On the basis of the Acknowledgement Receipt issued by the Treasurer,


the Bookkeeper shall record cash receipts in the Cash Book. However,
these receipts must be earmarked as funds not available for use.

4.6.2 Filing

The Treasurer shall file all photocopies of RFRs and its supporting
documents in a folder and, together with the other financial documents,
shall file it in a secured cabinet. On the other hand, the MFA will
chronologically file all VLCCs and its supporting documents in a folder and
will keep it also in a secured filing cabinet.

42 Community Finance Manual


CHAPTER 5
FUND DISBURSEMENTS
Transactions
Payments
Processing and Flow of Documents
Withholding Taxes
Supporting Documents
Cash Disbursement Internal Control Guidelines
Recording and Filing

43 Community Finance Manual


On the disbursement of funds, the community grant funds released and
the Cash LCC of the proponent communities shall be treated as common
fund. The cost sharing indicated in the Program of Work (POW) shall be
strictly followed in the actual disbursement.

5.1 Transactions

Funds of the community may be used for the following:

Payment to suppliers or contractors for the procurement of supplies,


materials and works
Payment of overhead or administrative expenses e.g. office supplies,
per diem and communications
Payment of direct costs of the sub-project
Payment or remittance of withholding taxes

5.2 Payments

5.2.1 Payment to Outside Creditors consists of the following


guidelines:

a. All payments must be supported with valid evidences of


expenditure.
b. The Treasurer releases the check to the creditor and asks the
latter to sign the disbursement voucher and to issue an official
receipt. The Treasurer then writes the official receipt number
on the disbursement voucher.
c. Payments should be based on full delivery of materials and
services indicated in the approved Purchase Order/Contract.
In no case shall partial payments be made on partial
deliveries.
d. In the case however of purchase of indigenous materials (e.g.
lumbers, washed sand and gravel, bamboos, boulders), partial
payments may be allowed, provided that the schedule of
payment is indicated in the approved PO.

5.2.2 Payment of Labor/Wages are detailed below:

44 Community Finance Manual


Withdraw the funds from the bank. Treasurer
Release cash to individual payees. Treasurer
Sign or affix thumb mark on the Employment Committee
Record Sheet (See BSPMC Form No. 13). For members and
pakyaw contracts, check shall be in the name laborers
of the Treasurer and payment shall be made
direct to pakyaw group members to prevent
the risk of the pakyaw leader running away
with the money.

List of workers paid shall be posted in the


barangay bulletin board to make sure that
the community residents are able to check
whether there are ghost workers.

In case where claimant of payment is not the


Laborer, a duly signed Authority to Claim
must be provided.

5.3 Processing and Flow of Documents

This section provides a step-by-step process of payments. For easy


reference and understanding of the flow of documents, each BSPMC is
encouraged to create a flow chart.

Responsible
Procedures/Activities
Unit/Person
1. Prepare Weekly Schedule of Disbursements Project Implementation
(See BSPMC Form No. 9) and submit it to Team & Treasurer
the BSPMC Chairperson.
2. Deliberate and approve expenditures or Execom
obligations listed in the Schedule of
Disbursements during its regular weekly
meeting. Determine availability of funds
from the cash book and sign the Schedule.
3. Submit complete and correct supporting Project Implementation
documents to the Treasurer. Team or Creditor
4. Review the supporting documents and Treasurer
compute the amount payable to creditors.

45 Community Finance Manual


Responsible
Procedures/Activities
Unit/Person
5. Prepare Disbursement Voucher (See BSPMC Treasurer
Form No. 8) and attach all supporting
documents. In the particulars of the DV, the
cost sharing between Grants and LCC
should be indicated. For example:

To pay for various construction


materials delivered and inspected

Gross Billing - 100,000.00


Less: Tax (6%) (5,357.14)
Net Payment 94,642.86

Breakdown of Sources:
Grant - 85,000.00
LCC 9,642.86

If there is retention money (for


infrastructure contracts):

Deduct 10% from the payment for


progress billing. The Treasurer should
write this amount and the details in a
logbook as accounts payable to make
sure that the BSPMC is aware that this
amount is not available for
disbursement.

The Bookkeeper shall likewise fully


disclose in the Annex 11 the total
amount of retention and deduct from the
actual funds available for use.

For payment of labor or wages to laborers,


disbursement voucher and check is in the
name of the Treasurer who will release
payment to individual worker.

Submit disbursement voucher with its


supporting documents and approved
Schedule of Disbursements to the BSPMC
Chairperson.
6. Review and approve disbursement BSPMC Chairperson
vouchers.

46 Community Finance Manual


Responsible
Procedures/Activities
Unit/Person
7. Prepare checks and have them signed by Treasurer
the BSPMC Chair.
8. Put the following in one file folder and Treasurer
submit the file to the MFA for review and
endorsement to the AC.
Checks
Disbursement Vouchers with
supporting documents
Approved Weekly Schedule of
Disbursements
9. Review the documents Area Coordinating Team
10. Sign the DV prior to the approval of the Municipal Financial
Area Coordinator Analyst
11. Sign the checks Area Coordinator
12. Release the checks to Suppliers and have Treasurer
them signed the Received Payment
portion of the Disbursement Voucher. Ask
for Official Receipt.

The Area Coordinator should set specific day of the week for signing of
the checks in the ACT Office. Whereabouts should also be posted to
facilitate locating him/her in case of emergency disbursements.

5.4 Withholding Taxes

As a Government Project, KALAHI-CIDSS is charged with the duty to


deduct and withhold any internal revenue tax and to remit the same to
the Bureau of Internal Revenue pursuant to the National Internal Revenue
Code. Since the BSPMC is an ad hoc committee therefore not a registered
withholding agent, it shall use the Tax Identification Number (TIN) of the
Barangay Local Government Unit in its remittance of tax withheld and
issuance of tax certificates.

Definition of terms:

a. Withholding Taxes is a systematic way of collecting taxes at source.


It is an indispensable method for collecting taxes in order that the
government can obtain adequate revenue. It is important to withhold
taxes because it a) encourages voluntary compliance, b) reduces cost
of collection effort, c) prevent delinquencies and revenue loss and d)

47 Community Finance Manual


prevent dry spells in the fiscal standing of the government by
providing stabilized cash flows throughout the taxable year.

b. Expanded Withholding Tax (EWT) - is a kind of withholding tax


which is prescribed on certain income payments and is creditable
against the income tax due of the payee for the taxable quarter/year
in which the particular income was earned.

BIR Form Description Tax


No. Rate
1601-E Income payments to prime contractors/sub- 2%
contractors Individual
1601-E Income payments to prime contractors/sub- 2%
contractors Corporate
1601-E Income payments made by the government to 1%
its local/resident suppliers of goods Individual
1601-E Income payments made by the government to 1%
its local/resident suppliers of goods - Corporate
1601-E Professionals (lawyers, CPAs, engineers, etc.), 10%
talent fees paid to individuals - If the current
years gross income is P720,000 and below
1601-E Professionals (lawyers, CPAs, engineers, etc.), 15%
talent fees paid to individuals - If the current
years gross income exceeds P 720,000

c. Value-Added Tax is a form of sales tax. It is a tax on consumption


levied on the sale, barter, exchange or lease of goods or properties
and services in the Philippines and on importation of goods into the
Philippines. It is an indirect tax, which may be shifted or passed on to
the buyer, transferee or lessee of goods, properties or services.

d. Final Withholding Tax is a kind of withholding tax which is


prescribed on certain income payments and is not creditable against
the income tax due of the payee on other income subject to regular
rates of tax for the taxable year. Income tax withheld constitutes the
full and final payment of the Income Tax due from the payee on the
particular income subjected to final withholding tax.

e. Withholding Tax on Government Money Payments (GMP) -


Percentage Taxes - is the tax withheld by National Government
Agencies (NGAs) and instrumentalities, including government-owned
and controlled corporations (GOCCs) and local government units
(LGUs), before making any payments to non-VAT registered
taxpayers/suppliers/payees.

48 Community Finance Manual


BIR Form Description Tax
No. Rate
1600 Persons exempt from VAT under Section 109v 3%
(final)

f. Withholding Tax on GMP - Value Added Taxes (GVAT) - is the


tax withheld by National Government Agencies (NGAs) and
instrumentalities, including government-owned and controlled
corporations (GOCCs) and local government units (LGUs), before
making any payments to VAT registered taxpayers/suppliers/payees
on account of their purchases of goods and services.

BIR Form Description Tax


No. Rate
1600 VAT Withholding of Purchase of Goods 5%
1600 VAT Withholding of Purchase of Services 5%

f. Tax Base is the measure upon which the assessment or


determination of tax liability is based.

g. Any casual or single purchase of P10,000 and below from local/


resident suppliers with whom the barangay has single transaction is
exempt from creditable (expanded) withholding tax. However, the
mandatory withholding tax must be duly complied with for single
purchase of P10,000 and below from suppliers with whom the
barangay has two or more transactions. In all cases, withholding tax
on Government Money Payments and its subsequent remittance to the
Government must be duly complied with.

h. The returns shall be filed and the tax paid on or before the tenth (10th)
day of the month following the month in which withholding was made
except for taxes withheld for December which shall be filed/paid on or
before January 15 of the succeeding year.

i. The return shall be filed and the tax paid with the Authorized Agent
Bank (AAB) of the Revenue District Office (RDO) where the
municipality belongs. In places where there are no AABs, the return
shall be filed and the tax paid with the Revenue Collection Officer or
the duly Authorized Municipal Treasurer, who will issue a Revenue
Official Receipt.

j. Treasurers who fails to collect and remit taxes or refund excess


withholding tax shall be personally liable, upon conviction, to a penalty
equal to the total amount of the tax not withheld, or not accounted for
and remitted or to a penalty equal to the total amount of refunds
which was not refunded to the supplier resulting from any excess of
the amount withheld over the tax actually due on their return.

49 Community Finance Manual


ILLUSTRATIONS:
a) Payment of Goods

An invoice in the amount of PhP 100,000.00 was presented to the


Treasurer for payment of materials delivered by ABC Company.
Upon review of the documents supporting the claim, the Treasurer
found it complete and compliant to the Project policies and
guidelines.

Question 1: How much should the Treasurer pay assuming ABC Company
is a VAT-registered supplier? How much is the withholding tax?

Question 2: How much should the Treasurer pay assuming ABC Company
is a NON-VAT registered supplier? How much is the withholding tax?

Solution to Question 1: VAT Supplier

Step 1 Compute for the Tax Base

Tax Base - PhP 100,000 112% = PhP 89,285.71

Step 2 - Compute for Withholding Tax:

Expanded Withholding Tax - PhP 89,285.71 x 1% = PhP 892.86


Value Added Tax - PhP 89,285.71 x 5% = PhP 4,464.29
Total Withholding Taxes = PhP 5,357.14

Step 3 Compute for net payment

Total amount of Invoice - PhP 100,000.00


Less: Withholding Taxes - (5,357.14)
Net Payment - PhP 94,642.86

Therefore:
i) Total amount of check payable to ABC Company is
PhP94,642.86.
ii) Total amount of check payable to BIR is PhP5,357.14.

Solution to Question 2: NON-VAT Supplier

Step 1 Compute for the Tax Base

Tax Base - PhP 100,000

Step 2 - Compute for Withholding Tax:

50 Community Finance Manual


Expanded Withholding Tax - PhP 100,000 x 1% = PhP 1,000.00
Percentage Tax - PhP 100,000 x 3% = PhP 3,000.00
Total Withholding Taxes = PhP 4,000.00

Step 3 Compute for net payment

Total amount of Invoice - PhP 100,000.00


Less: Withholding Taxes - (4,000.00)
Net Payment - PhP 96,000.00

Therefore:
i) Total amount of check payable to ABC Company is
PhP96,000.00.
ii) Total amount of check payable to BIR is PhP4,000.00.

b) Payment to Contractors

Recoupment of Mobilization Fee

The contractor may be allowed to collect Mobilization Fee of up to 15% of


total contract cost. In such case, the amount collected must be
deducted/recouped from the progress billings computed based on the
physical accomplishment indicated in the billing. The Mobilization Fee,
however, shall be fully recouped upon reaching 80% physical
accomplishment.

Deduction of Withholding Tax

The corresponding Withholding Taxes shall also be deducted from the


total billing using the rates aforementioned. Payment for cash advance is
not subject to Withholding Tax.

Deduction of Retention Fee

Retention fee refers to the 10% amount retained from all progress billings
to cover uncorrected discovered defects and third party liabilities. This is
mandatory for all contracts with PhP 1M or more in addition to
performance security. For contracts with less than PhP 1M, retention fee
is only deducted from progress billings when there is no performance
security posted. The retention fee, if not called, shall be refunded to the
contractor after the expiration of the warranty period. The refund shall
not be subjected to Withholding Tax.

In case where closing of community account is mandated by the Project,


the community shall require the Contractor to convert this Retention Fee
to Bank Guarantee or Managers check or Cashiers check from a
reputable bank. Upon receipt of the Bank Guarantee, the Treasurer shall

51 Community Finance Manual


prepare a Disbursement Voucher and issue a check equal to the amount
of retention.

Below are illustrations on how to compute payment of progress billings for


contracted subprojects:

1. 1st Progress Billing (at 30% physical accomplishment)

Contract Cost 500,000


Mobilization Fee (15%) 75,000

Gross Billing (500,000 x 30%) 150,000


Deductions:
Recoupment of Mobilization Fee (75,000 x 30%) (22,500)
Retention Fee (150,000 x 10%) (15,000)
Withholding Tax:
Expanded (150,000/1.12 x 2%) (2,679)
VAT (150,000/1.12 x 5%) (6,696)
Total Deductions (46,875)
Net Billing* 103,125

*If Contractor posted performance security, the Net Billing would be


118,125.00 (no deduction of retention fee since the contract is less than
PhP 1M).

2. 2nd Progress Billing (at 80% physical accomplishment)

Contract Cost 500,000


Mobilization Fee (15%) 75,000

Accomplishment to date (500,000 x 80%) 400,000


Less: Previous Billing (500,000 x 30%) (150,000)
Gross Billing 250,000
Deductions:
Recoupment of Mobilization Fee (75,000x100%) 75,000
Less: Recoup of Previous Billing (75,000x30%) (22,500)
Net amount to be recouped in this Billing (52,500)
Retention Fee (250,000 x 10%) (25,000)
Withholding Tax
Expanded (250,000/1.12 x 2%) (4,464)
VAT (250,000/1.12 x 5%) (11,161)
Total Deductions (93,125)
Net Billing* 156,875

*If Contractor posted performance security, the Net Billing would be


181,875.00 ((no deduction of retention fee since the contract is less than
PhP 1M).

52 Community Finance Manual


3. 3rd and Final Billing (at 100% physical accomplishment)

Contract Cost 500,000


Mobilization Fee (15%) 75,000

Accomplishment to date (500,000 x 100%) 500,000


Less: Previous Billing (500,000 x 80%) (400,000)
Gross Billing 100,000
Deductions:
Retention Fee (100,000 x 10%) (10,000)
Withholding Tax
Expanded (100,000/1.12 x 2%) (1,786)
VAT (100,000/1.12 x 5%) (4,464)
Total Deductions (16,250)
Net Billing* 83,750

*If Contractor posted performance security, the Net Billing would be


93,750 (no deduction of retention fee since the contract is less than PhP
1M).

c) Payment of Professional Fees (Service Providers)

The community project of Barangay Poblacion which is


Construction of Hanging Bridge is prioritized during MIBF-PRA.
Due to its complexity, the MIBF decided to award them the
remaining or unrequested TAF to compensate hiring of Civil
Engineer expert in supervising construction of bridges. Upon
community project completion, the contracted Civil Engineer
submitted his Billing in the amount of P54,542.85 for payment.
The Treasurer found that all required supporting documents are
attached in the claim.

Question 1: How much should the Treasurer pay assuming the contracted
Civil Engineer is a NON-VAT registered? How much is the withholding tax?

Solution to Question 1: NON-VAT Supplier

Step 1 Compute for the Tax Base

Tax Base - PhP 54,542.85

Step 2 - Compute for Withholding Tax:

Expanded Withholding Tax - PhP 54,542.85x10% = PhP 5,454.28


Value Added Tax - PhP 54,542.85x 3% = PhP 1,636.29
Total Withholding Taxes = PhP 7,090.57

53 Community Finance Manual


Step 3 Compute for net payment

Total amount of Invoice - PhP 54,542.85


Less: Withholding Taxes - (7,090.57)
Net Payment - PhP 47,452.28

Therefore,
i) Total amount of check payable to Service Provider is
P47,452.28.
ii) Total amount of check payable to BIR is P7,090.57.

5.5 Supporting Documents

Generally, the following are the supporting documents:

Evidence of expenditure or liability


Evidence of receipt of goods and services
Evidence of payment
Evidence of receipt of payment

A. For the utilization of Technical Assistance Fund (TAF):

i. Payment of Professional Services


1. Minutes of pre-Procurement Meeting
2. Canvass Forms
3. Minutes of Opening of Canvass
4. Abstract of Canvass
5. Minutes of Evaluation
6. Notice of Award
7. Notarized Contract with Service Provider
8. Billing Statement
9. Certification from the AC or DAC, PPT and Municipal Engineer on
the actual accomplishments of the Service Provider
10. Disbursement Voucher with photocopy of check
11. Official Receipt or Acknowledgement Receipt

ii. Purchase of materials and supplies for plans, reproduction of plans


and others
1. Minutes of Pre-Procurement Conference
2. Canvass form
3. Minutes of Opening of Canvass
4. Minutes of Evaluation of Canvass
5. Abstract of Canvass

54 Community Finance Manual


6. Purchase Order
7. Sales/Charge Invoice and/or Delivery Receipt
8. Certification of Acceptance and Inspection (certification can also
be indicated in the PO)
9. Disbursement Voucher with photocopy of check
10. Official Receipt

iii. Reimbursement of Transportation Expenses of Service Provider


1. Special Order issued by the PPT, approved by the AC or DAC and
concurred by the Municipal Engineer
2. Approved Itinerary (details of travel)
3. Certification from the AC or DAC, PPT and Municipal Engineer on
the actual accomplishments of the Service Provider
4. Reimbursement Expense Receipt

iv. Payment for the training on operation and management plans for
income-generating sub-projects or those with cost recovery scheme

Refer to Chapter 5.5 Section E for list of supporting documents.

It is reiterated that in no case shall payments to service providers be


made without the acceptance of the concerned PPT. In case payments are
made to any incomplete or incorrect outputs, those who authorized the
payment shall be made responsible in ensuring that the outputs are
corrected and/or liable to repay the amount paid to the service provider.

B. Daily Rate Basis Laborers


1. Daily Time Record
2. Employment Record Sheet
3. Disbursement Voucher with photocopy of check

C. Direct Contracting of Labor or Pakyaw


1. Contract of Agreement
2. Composition of Pakyaw Group with corresponding rates or
percentage of share
3. Statement of Work Accomplished
4. Employment Record Sheet
5. Disbursement Voucher with photocopy of check

D. Honoraria To Committee Members

Honoraria shall be charged against cash Local Counterpart Contribution.


Payment should only be made if and when there is allocation in the
approved POW. If the detailed cost estimate of the approved POW does
not specify the list of recipients, the BA shall issue a resolution naming
the recipients and their equivalent honorarium.

55 Community Finance Manual


1. BA Resolution
2. Accomplishment Report from each payee
3. Time Sheets
4. Employment Record Sheet
5. Disbursement Voucher with photocopy of check

E. Training Expenses
1. Approved Training Design and Budget
2. Minutes of Pre-Procurement
3. Canvass Forms
4. Minutes of Opening
5. Minutes of Evaluation
6. Abstract of Canvass
7. Notice of Award
8. Notarized Contract with the trainers
9. Training Completion Report with attached Attendance Sheet
10. Disbursement Voucher with photocopy of check
11. Official Receipt or Acknowledgement Receipt

F. Establishment of Petty Cash Fund


1. Minutes of Execom Meeting approving the amount of Petty Cash Fund
2. Disbursement Voucher with photocopy of check

G. Replenishment of Petty Cash Fund


1. Petty Cash Vouchers with Supporting Documents
2. Petty Cash Liquidation Summary
3. Disbursement Voucher with photocopy of check

H. Payment of Goods to Non-Registered Suppliers

a) Thru Reimbursement

For disbursements where payee is not a business entity required by


the BIR to issue OR and the money used to pay is advanced or paid
first by the official concerned and the expenses are authorized by the
BSPMC.

1. Minutes of Pre-Procurement
2. Canvass Forms
3. Minutes of Opening of Canvass
4. Minutes of Evaluation of Canvass
5. Abstract of Canvass
6. Approved Purchase Order
7. Certificate of Inspection and Acceptance (certification can also be
indicated in the Purchase Order)
8. Disbursement Receipt with photocopy of check
9. Reimbursement Expense Receipt (BSPMC Form No. 23)

56 Community Finance Manual


b) Thru Cash Advance

In cases when Non-Registered Suppliers that do not have any


identification therefore cannot transact with the bank e.g. check
encashment are awarded with Contract, the BSPMC may request
Approval to Grant Cash Advance from the RPMO with an amount equal
to the Purchase Order. The Approved Purchase Order shall be attached
to the letter request of the BSPMC making it the basis for approval by
the RPMO thru the Regional Project Director or Regional Project
Manager.

Upon receipt of the approval, the Treasurer shall prepare a check in


his/her name, being the bonded member of the BSPMC.

In cases where the actual delivery is lesser than the total approved PO
and no further deliveries shall be made, the actual cost of delivered
items shall be paid. The excess amount shall be deposited back to the
communitys account on the next banking day after payment.

The following documents shall be attached to the Disbursement


Voucher:
1. Minutes of Pre-Procurement
2. Canvass Forms
3. Minutes of Opening of Canvass
4. Minutes of Evaluation of Canvass
5. Abstract of Canvass
6. Approved Purchase Order
7. Letter of approval from the RPMO to cash advance
8. Certificate of Inspection and Acceptance (certification can also be
indicated in the PO)
9. Deposit Slip (in case amount of cash advance is more than the
actual cost of delivered items)
10. Photocopy of check
11. Acknowledgment Receipt

The Area Coordinator shall see to it that no check is approved


representing payment for cash advance without prior approval from the
RPMO.

I. Direct Contracting for Works


1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Certification from the DAC that there is only one supplier available in
the area
5. Invitation to Quote
6. Minutes of Opening of Quotation

57 Community Finance Manual


7. Minutes of Evaluation of Quotation
8. Post Qualification Report
9. RPMT No Objection Letter
10. Notice of Award
11. Conditions of Contract
12. Contract of Agreement
13. Performance Security
14. Drawing/Plan/Specifications
15. Notice to Commence
16. Contractors Billing Statement
17. Joint Inspection Report
18. Disbursement Voucher with photocopy of check
19. Official Receipt

Note: 1. For 15% mobilization fee, all items except #17 plus DAC
certification that equipment and materials are already in the
jobsite.
2. For first and succeeding progress billings, items 16-19 only. In
case where Contractor did not avail of the 15% mobilization
fee, items 1-15 shall be attached to first billing.

J. Local Shopping for Works


1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Invitation to Quote
5. Abstract of Quotation
6. Minutes of Opening of Quotation
7. Contractors License
8. Minutes of Evaluation of Quotation
9. Post Qualification Report
10. RPMT NOL (if applicable)
11. Notice of Award
12. Condition of Contract
13. Contract of Agreement
14. Performance Security
15. Notice to Commence
16. Drawing/Plan/Specification
17. Contractors Billing Statement
18. Joint Inspection Report
19. Disbursement Voucher with photocopy of check
20. Official Receipt

Note: 1. For 15% mobilization fee, all items except #18 plus DAC
certification that equipment and materials are already in the
jobsite and Bank Guarantee equal to 15% of the Contract Price.

58 Community Finance Manual


2. For first and succeeding progress billings, items 17-20 only. In
case where Contractor did not avail of the 15% mobilization
fee, items 1-16 shall be attached to first billing.

K. Local Bidding for Works


1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Invitation To Bid
5. Instruction to Bidders
6. Drawings/Plan
7. Technical Specifications
8. Forms of Bids
9. Minutes of Pre-bid conference
10. Minutes of Bid Opening
11. Bid Security
12. Minutes of Bid Evaluation
13. Abstract of Bids
14. Contractors License
15. Post Qualification Report
16. Resolution to Award
17. No objection Letter (NPMT)
18. Notice of Award
19. Contract Agreement with Conditions of Contract
20. Performance Security
21. Notice to Commence
22. Contractors Billing Statement
23. Joint Inspection Report
24. Disbursement Voucher with photocopy of check
25. Official Receipt

Note: 1. For 15% mobilization fee, all items except #23 plus DAC
certification that equipment and materials are already in the
jobsite and Bank Guarantee equal to 15% of the Contract Price.
2. For first and succeeding progress billings, items 22-25 only. In
case where Contractor does not avail of the 15% mobilization
fee, items 1-21 shall be attached to first billing.

L. Direct Contracting for Goods


1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Proc Conference
4. Certification from the DAC that there is only one supplier available
in the area
5. Canvass form
6. Minutes of Opening of Canvass
7. Minutes of Evaluation of Canvass

59 Community Finance Manual


8. Purchase Order
9. Sales/Charge Invoice and/or Delivery Receipt
10. Certificate of Inspection and Acceptance (certification can also be
indicated in the Purchase Order)
11. Disbursement Voucher with photocopy of check
12. Official Receipt

M. Local Shopping for Goods


1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Canvass form
5. Minutes of Opening of Canvass
6. Minutes of Evaluation of Canvass
7. Abstract of Canvass
8. No Objection Letter (RPMT), if applicable
9. Purchase Order
10. Sales/Charge Invoice and/or Delivery Receipt
11. Certification of Acceptance and Inspection (certification can also be
indicated in the PO)
12. Disbursement Voucher with photocopy of check
13. Official Receipt

N. Local Bidding for Goods


1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Invitation To Bid
5. Minutes of Pre-Bid Conference
6. Minutes of Bid Opening
7. Forms of Bid
8. Bid Security
9. Certificate of Business Registration
10. Minutes of Evaluation of Bids
11. Abstract of Bid
12. Post qualification Report
13. Resolution to Award
14. No Objection Letter (NPMT)
15. Notice of Award
16. Performance Security
17. Purchase Order
18. Sales/Charge Invoice or Statement of Accounts and/or Delivery
Receipt
19. Certificate of Inspection and Acceptance (certification can also be
indicated in the Purchase Order)
20. Disbursement Voucher with photocopy of check
21. Official Receipt

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O. Monthly Remittance of Taxes
5. Accomplished 1600/1601-E BIR Forms
6. Disbursement Voucher with photocopy of check
7. Official Receipt

P. Refund of Retention Fees

a) Upon issuance of Bank Guarantee as replacement


1. Bank Guarantee
2. Disbursement Voucher with photocopy of check
3. Official Receipt

b) After lapse of defects and liability period


1. Defects Liability Certificate issued by the Project Engineer
2. Disbursement Voucher with photocopy of check
3. Official Receipt

Q. Refund of Performance Security


1. Defects Liability Certificate issued by the Project Engineer
2. Disbursement Voucher with photocopy of check
3. Official Receipt

Common documents like the following should be attached to the first


payment only. However, a proper notation should be made in the
Disbursement Voucher indicating the DV# where all these documents are
attached.

a. Approved Program of Works


b. Planned Community Procurement Packaging
c. Drawing Plans/Specifications

5.6 Cash Disbursement Internal Control Guidelines

The following internal control guidelines for cash disbursement shall be


observed:

a. All disbursements must be supported by a Disbursement Voucher


(DV).
b. DVs must be pre-numbered, dated and used in sequential order.
c. All DVs must be approved by the BSPMC Chairperson.
d. Disbursements other than those from the petty cash fund or for
payment of salaries and wages and cash advance should be made by
check.
e. Disbursements should never be made directly from cash receipts.

61 Community Finance Manual


f. Checks must be made payable to specific payee/s. Checks payable to
cash or bearers are not allowed.
g. Checks should be signed by the authorized signatories (i.e. BSPMC
Chairperson, Treasurer, and Area Coordinator). The signing and
countersigning of checks should not be made without supporting
documents. Blank checks should never be pre-signed.
h. Verifying the sequence of check numbers when reconciling bank
transactions should validate completeness of all checks used. Voided
and spoiled checks must be properly marked CANCELLED and filed for
future reference and inspection.
i. Payee/s or person/s receiving the check should acknowledge receipt of
payment by signing on the space designated in the corresponding DVs
and issue OR/AR/RER.
j. After payment, all DVs together with supporting documents should be
stamped with the words:

PAID
By: ________________________
Date : ______________________

5.7 Recording and Filing

5.7.1 Recording

a. After payment, the Treasurer shall stamp on the Disbursement


Voucher and supporting documents the following:

PAID
By: ________________________
Date : ______________________

Then transmit to the Bookkeeper for recording. The Treasurer must


transmit DVs for recording on a regular basis, if possible daily.

b. Upon receipt of the Disbursement Vouchers and its supporting


documents, the Bookkeeper records the disbursement in the Cash
Book and return said documents to the Treasurer for filing.

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5.7.2 Filing

The Treasurer files the documents in a folder (one folder by month). This
should be arranged by Disbursement Voucher Number, with the latest
number on top of the file and kept in a locked drawer or cabinet in the
BSPMC office. One set of photocopies of the documents should also be
kept as a precaution if something happens with the original set of
documents. The original set of documents shall be submitted to the
DSWD Field Office thru the AC or DAC for submission to the COA on or
before the 10th day of the following month. Said documents, while still at
the community level, shall be under the custody and control of the
Treasurer. The Treasurer shall be fully responsible and accountable for the
documents pertaining to financial transactions of the Project while still
under their custody. The Treasurer shall ensure that submission of these
documents is evidenced by a transmittal letter duly acknowledged by the
AC. At the end of Sub-project implementation, all financial documents
must be turned-over to the BLGU for safekeeping.

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CHAPTER 6
PETTY CASH FUND
Expenses Covered by Petty Cash Fund
Establishment of Petty Cash Fund
Disbursement from Petty Cash Fund
Replenishment of Petty Cash Fund
Final Liquidation of Petty Cash Fund

64 Community Finance Manual


Petty Cash Fund is the amount of fund established by the community to
shoulder petty expenses to be incurred during Sub-project
implementation. The maximum amount the community can establish is
Ten Thousand Pesos (P 10,000.00). Provided, however, that an allocation
for this purpose is provided for in the approved Program of Work (POW)
under the administrative/indirect cost.

6.1 Expenses Covered by Petty Cash Fund

a. Direct purchases amounting to not more P2,000 of the established


amount at any one time for the ordinary and essential needs of the
BSPMC (e.g. office supplies, meals during procurement activities,
photocopying, etc.)

b. Transportation Expenses for official travels such as delivery of canvass


forms, invitation to bid and other communications; as well as
transportation expenses in attending MIBF meetings, fiduciary
workshops and submission of reports and other authorized travels.

6.2 Establishment of Petty Cash Fund

Responsible
Procedures/Activities
Unit/Person
1. Prepare disbursement voucher and check in the Treasurer
amount agreed by the community.
2. Approve the disbursement voucher and sign the BSPMC Chairperson
check.
Countersign the check. Area Coordinator
3. Encash the check and acknowledge the receipt Treasurer
of funds by signing the received by portion of
the disbursement voucher.
4. Stamp paid the disbursement voucher and Treasurer
transmits to the Bookkeeper.
5. Record the transaction in the cash book and file Bookkeeper
the DV in the disbursement vouchers file folder.
6. Take custody of the funds and store them in a Treasurer
safety deposit box.

65 Community Finance Manual


6.3 Disbursement from Petty Cash Fund

Responsible
Procedures/Activities
Unit/Person
1. Verbally request the Treasurer for petty cash. Committee or Team
Treasurer determines if the amount requested is member needing
reasonable and within the ceiling amount petty cash
approved by the Execom during PCF
establishment meeting.
2. Prepare the Petty Cash Voucher (See BSPMC Treasurer
Form 11).
3. Sign the Requested by portion and seek the Person making the
approval of the BSPMC Chairperson or Project request
Implementation Head
4. Approve the petty cash voucher (If the BSPMC BSPMC Chairperson
Chairperson is the one making the request, the or Project
PCV shall be approved by the PIT and one Implementation
member of the Execom). Team Head
5. Release the funds and ask the person receiving Treasurer
the amount to sign the petty cash voucher.
6. Stamp Petty Cash Voucher with PAID and date Treasurer
paid and put it inside the safety deposit box.
7. Submit official receipts for purchases made. Person who made
Transportation expenses need not have the request
supporting documents.
8. Check the petty cash vouchers daily to find out Treasurer
unliquidated petty cash advance (those for
purchases but without any supporting document
attached). Follow-up submission of the official
receipt or acknowledgment receipt. If no official
or acknowledgment receipt is produced, asks
the person who requested to refund or return
the amount.
9. In cases of refund (the amount actually spent is Treasurer
lesser than the amount requested), the amount
refunded as well as the actual expense should
be indicated in the PCV.

66 Community Finance Manual


6.4 Replenishment of Petty Cash Fund

Responsible
Procedures/Activities
Unit/Person
1. Make daily cash count of the Petty Cash Fund. Treasurer
2. If the petty cash fund balance is 25% or less, Treasurer
prepare the Petty Cash Fund Liquidation
Summary (See BSPMC Form No. 12).
3. Attach PCVs and its supporting documents to Treasurer
the Summary Report and submit to the BSPMC
Chairperson for approval.
4. Review veracity of claims and supporting Audit and Inventory
documents. Initial before the BSPMC Committee
Chairperson and submit for final approval.
5. Review and sign the Summary Report. BSPMC Chairperson
6. Prepare Disbursement Voucher and Check in an Treasurer
amount equivalent to the total amount in the
Summary Report, with the Treasurer as payee.
7. Approve DV and sign the check BSPMC Chairperson
8. Review PCF Liquidation Summary and Area Coordinator
countersign the check
9. Same as Procedures 3 to 6 in Section 1.2. Treasurer

6.5 Final Liquidation of Petty Cash Fund

Petty expenses incurred whose funding comes from the remaining petty
cash fund before the last replenishment as well as proceeds from the last
replenishment shall be duly accounted for and liquidated using the Petty
Cash Fund Liquidation Summary Report. The total amount of expenses
reflected in the PCF Liquidation Summary Report shall be equal to the
total amount of PCF established if the fund is fully utilized. If not, only the
actual petty expenses incurred shall be reflected and the remaining petty
cash shall be deposited back to the communitys bank account. A
validated deposit slip shall be attached to the Final Petty Cash Fund
Liquidation Summary to fully account the fund.

The Bookkeeper shall record on the Cash Book the return of the
remaining balance of the petty cash fund to the communitys bank
account based on the validated deposit slip.

67 Community Finance Manual


Responsible
Procedures/Activities
Unit/Person
1. Count the petty cash fund, if there is still Treasurer
remaining balance.
2. Prepare PCF Liquidation Summary. Treasurer
3. Gather and attach PCVs and supporting Treasurer
documents to the Summary Report and submit
them to the BSBSPMC Chairperson for approval.
4. Review and sign the Summary Report. BSPMC Chairperson
5. If there is still petty cash fund on hand, deposit Treasurer
to the communitys bank account and attach the
validated deposit slip to the liquidation
summary.

68 Community Finance Manual


CHAPTER 7
LOCAL COUNTERPART CONTRIBUTION
Classification
In-Kind Contributions
Valuation and Costing
Recording and Filing

69 Community Finance Manual


7.1 Classification

7.1.1 Local Counterpart Contribution for Capability Building and


Implementation Support (LCC for CBIS)

As discussed in Chapter 4.2.1, these are contributions which do not


become part of the value of the Sub-project but are intended to facilitate
the conduct of activities of the Project. Aside from the LCC Cash intended
for the conduct of Community Empowerment Activity Cycle (CEAC), there
is LCC In-Kind under this component. Examples are the LGUs provision of
an office space and facilities for the ACT and IT equipment.

Tracking and recording of these contributions which will be handled by the


Municipal Financial Analyst, are based on the approved LCC Delivery Plan.
This plan is a document that outlines the breakdown and schedule of
delivery of local counterpart contributions by the municipal LGU. It is
planned by the MLGU, approved by the DSWD and concurred by the
Sangguniang Bayan, through a budget ordinance.

7.1.2 Local Counterpart Contribution for Sub-project


Implementation (LCC for SPI)

These are contributions that form part of the investment cost or value of
the Sub-project. It is intended to shoulder portions of either the direct or
indirect costs of the Sub-project. As discussed in Chapter 4.2.2, cash
counterpart of this type is directly deposited to the community account.
In Kind contributions of this type are materials, labor, equipment and
other direct or indirect costs committed by the LGUs, communities and
other donors which commitments are reflected in the Program of Works
approved by the MIBF.

7.2 In-Kind Contributions

For Capability Building and Implementation Support (CBIS)


20% of basic salary of MLGU regular staff for services rendered
during Project implementation
Equivalent cost of rental of a furnished office
IT equipment (Computer, Printer, etc)
Office Supplies and Communication

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Equivalent cost of rental of vehicles provided for the Project based
on actual number of hours used
Food, supplies and other facilities such as venues, sound system,
etc. provided during trainings, assemblies and meetings

For Sub-project Implementation (SPI)


Goods (supplies and materials)
Skilled or unskilled labor of community members
Technical services of professional individuals (e.g.
Draftsman/Engineer)
Services of government personnel (e.g. Draftsman/Engineer)
Services rendered by BSPMC members in implementing the Sub-
project
Use of Heavy Equipment
Lot/land or other real property donation
Use of warehouse
Others as may be agreed upon by the community

7.3 Valuation and Costing

The assignment of cash value to contributions in kind shall be agreed


upon by the donor or contributor and the BSPMC and concurred by the
Area Coordinator.

LCC for Capability Building and Implementation Support (CBIS)

Form of LCC Basis of Cash Source Document


Valuation
20% of basic salary of 20% of monthly basic Special Order of the
MLGU regular staff for salary MLGU staff indicating
services rendered specific designation to
during Project KC Project
implementation
Equivalent cost of rental Comparable rental rate Certification from the
of a furnished office in the locality for LGU Administrator that
similar area, location space and other
and condition of the amenities are provided
office for Project staff
IT equipment Book Value of the Certification from the
(Computer, Printer, etc) equipment LGU Administrator that
IT equipment are
provided for Project
staff

71 Community Finance Manual


Office Supplies and Actual Cost Approved and
Communication Acknowledged Request
and Issue Slip
Vehicles provided for Equivalent cost of Approved Trip Tickets
the Project rental of vehicles
based on actual
number of hours used
Food, supplies and Actual cost of food and Certificate of Training
other facilities such as supplies and equivalent indicating date, venue
venues, sound system, rental rate of and number of
etc. provided during venues/sound system participants from the
trainings, assemblies LCE and Barangay
and meetings Captain for municipal
and barangay levels
respectively;
Attendance Sheet;
Minutes

LCC for Sub-project Implementation (SPI)


Goods (supplies and Prevailing market rate Acknowledgment
materials) in the locality or cost Receipt
of similar goods
purchased by the
community
Skilled or unskilled Prevailing market rate Employment Record
labor of community in the locality for Sheet (ERS)
members skilled workers and
current minimum wage
for unskilled workers
as set by the local
wage board
Technical services of Prevailing rate in the Completed output of
professional individuals community for similar the services rendered
(e.g. services (e.g. detailed cost
Draftsman/Engineer) estimates)
Services of government Compute hourly salary Logbook/Individual
personnel (e.g. rate of each staff Timesheet
Draftsman/Engineer) involved (salary
rate/22days/8hrs.) and
multiply by the total
hours of the services
provided
Services rendered by Prevailing salary rate Logbook/Individual
BSPMC members in for equivalent positions Timesheet
implementing the Sub-
project

72 Community Finance Manual


Use of Heavy Prevailing rental rate Construction Logbook
Equipment per hour/per day in the
locality
Lot/land or other real Assessed or Market Copy of the Deed of
property donation value in the deed of Donation and
donation (Note: road Certification from the
projects with existing Assessors Office
right of ways shall no
longer be included as
LCC in-kind e.g. Road
Rehabilitation Sub-
project).
Use of warehouse Prevailing rental rate Certification from the
per month in the BSPMC Chairperson for
locality the use of the
warehouse

7.4 Recording and Filing

7.4.1 Recording

Local Contributions for Capability Building and Implementation


Support - A Voucher for Local Counterpart Contribution (BSPMC Form
10) will be prepared by the Municipal Financial Analyst for each
contribution in kind provided at the municipal level, while the same
voucher, shall be prepared by the Community Facilitators for each
contribution given at the community level. Recording in the Local
Counterpart Contribution for CBIS Journal (Annex 8) should, however, be
done by the Municipal Financial Analyst.

Local Contributions for Sub-project Implementation - The


Treasurer or the Project Implementation Team Head shall accomplish the
Voucher for Local Counterpart Contribution (VLCC) for all contribution in
kind received. One voucher shall be prepared for each form of
contribution made by an individual donor or group of donors.

All VLCCs should be submitted to the Treasurer by the persons or units


who prepared them after the conduct of the activity, or on a monthly
basis. The Treasurer shall review the entries and submit them to the
BSPMC Chairperson for approval. After the approval, the Treasurer
forwards the VLCCs with its supporting documents to the Bookkeeper.
The Bookkeeper, then, records the transactions in the Local Counterpart
Contribution Journal (Annex 13).

73 Community Finance Manual


7.4.2 Filing

All VLCCs and its supporting documents are filed chronologically in a


separate folder. They should be kept, together with the file of
Disbursement Vouchers, in a filing cabinet with lock. At the end of Sub-
project implementation, all these documents must be turned-over to the
BLGU for safekeeping.

74 Community Finance Manual


CHAPTER 8
BOOKKEEPING AND PREPARATION OF
REPORTS
Cash Book
LCC In-Kind Journal
Status of Sub-project Fund Utilization Report

75 Community Finance Manual


There are only two books namely: Cash Book and LCC Journal that the
BSPMC, particularly Bookkeeper should maintain during Sub-project
implementation. It shall be updated daily or on a weekly basis at the very
least. These books should be kept in a safe place and should be available
for review by any member of the community at all times. At the end of
Sub-project implementation, these books together with the other financial
documents should be turned-over to the BLGU for safekeeping.

8.1 Cash Book

Cash book is a book of original entry in which transactions relating only to


cash receipts (e.g. Grant Funds, LCC-cash, interest earnings accruing to
the community bank account and other forms of cash receipts) and
payments are recorded in detail. When cash is received, it is entered on
the debit or left side. Similarly, when cash is paid out, the same is
recorded on the credit or right side of the cash book.

The Bookkeeper shall maintain a Cash Book for all cash transactions
during Sub-project implementation.

The Account Titles that will be used in recording transactions are the
budget lines in the approved Program of Work (e.g. Materials, Labor,
Equipment, etc). These will also be the column headings under the Cash
Out in the Cash Book.

ILLUSTRATIONS

a. April 1, 2010 - Aling Mingming, the Treasurer, along with Mang


Dangas, the BSPMC Chairperson and Rosa, the Area Coordinator went to
LBP Larena to open an account in the name of KALAHI-CIDSS Brgy.
Lotloton. They deposited P1,000 which was contributed by the community
volunteers.

Below is an illustration on how to record the above transaction.

CASH IN (RECEIVED)
DATE REF PARTICULARS GRANTS LCC
AMOUNT
(LP) (Cash)
Deposit
Apr 1 Initial Deposit
Slip 1,000.00 1,000.00

b. April 7, 2010 - DSWD released to the communitys account an


amount of P195,000. The amount released was 50% of the approved
grant of their Sub-project.

76 Community Finance Manual


Below is an illustration on how to record the above transaction.

CASH IN (RECEIVED)
DATE REF PARTICULARS GRANTS LCC
AMOUNT
(LP) (Cash)
Notice
50% Grant
Apr 7 of Fund 195,000.00
Releases
Transfer

c. April 23, 2010 - Aling Mingming, the Treasurer went to San Francisco
City to pay Super-337 Hardware for the construction materials purchased.
She gave the check amounting to P165,750.

CASH OUT (PAYMENT)


DATE REF
FUND DIRECT COST
PARTICULARS
AMOUNT SOURCE MATERIALS LABOR
Payment of
DV# Lot-
Apr 23 various materials Grant 165,750.00
001 165,750.00
per PO#001

To ensure that cash balance in the Cash Book tallies with the cash
available in the Bank account, the Bookkeeper shall prepare a monthly
Bank Reconciliation Statement.

8.2 LCC In-Kind Journal

LCC In-Kind Journal is a book that contains a summary of Vouchers for


Local Counterpart Contribution (VLCC) issued and is likewise maintained
by the Bookkeeper. It simply reflects all non-cash contributions from
various donors for the Sub-project.

Like the Cash Book, the Account Titles that will be used in recording
transactions are the budget lines in the Approved Program of Work (e.g.
Materials, Labor, Equipment, etc).

ILLUSTRATION
a. May 8, 2010 - The MLGU gave 280 cu.m of base coarse materials at
P100/cu.m.

77 Community Finance Manual


VLCC DIRECT COSTS
DATE DONOR PARTICULARS
No. MATERIALS EQPT LABOR
Donation of
Lot- Materials for
May 8
01
MLGU 28,000.00
the completion
of Sub-project

At the end of the month, the total in-kind LCC reflected in the book should
tally with the total of all VLCCs prepared for the month.

8.3 Status of Sub-project Fund Utilization Report

Status of Sub-project Fund Utilization Report (Annex 11) is a report


prepared by the Bookkeeper that contains all financial transactions of the
Sub-project for the period. It is required to be submitted to the DSWD
Field Office thru the ACT on a monthly basis and when requesting for fund
release.

Following the illustrations above, the Status of Sub-project Fund


Utilization Report should look like this:

GRANT FUNDS LOCAL COUNTERPART CONTRIBUTION


TOTAL DVs Submitted to COA
PARTICULARS LP Cash In-kind Total

a b c d (b+c) e (a+b) DV No. Amount

Cash Balance, Beginning - - - - -

Add: Funds Received during this Period -

KC Grant Tranche 195,000.00 195,000.00

PLGU -

MLGU 28,000.00 -

BLGU 1,000.00 -

Community/Others -

Total Funds Available 195,000.00 1,000.00 28,000.00 - 195,000.00

Less: Expenses incurred during this Period -

Materials 165,750.00 28,000.00 165,750.00

Labor -

Equipment -

Lot -

Contract of Works -

Freight and Handling -

Material Testing -

Supervision -

Pre-Engineering -

Bond Premium -

Administrative Expenses -

Others (please specify) -

Total Expenses for the Period 165,750.00 - 28,000.00 - 165,750.00

Cash Balance, End 29,250.00 1,000.00 - - 29,250.00

78 Community Finance Manual


CHAPTER 9
UNUTILIZED COMMUNITY GRANT
FUNDS
Kinds of Unutilized Grant Funds
Mechanics for the Utilization of Surplus, Left-Over and
Excess Funds
Mechanics for the Utilization of Savings
Procedures in Determining Excess Funds
Procedures in Determining Existence of Savings
Use of Contingency Fund

79 Community Finance Manual


9.1 Kinds of Unutilized Grant Funds

The following are the kinds of unutilized grant funds and the
circumstances where they occur:

Surplus Fund
It refers to the remaining amount from the municipal allocation after all
proposed Sub-projects are funded. This may happen when the total cost
of all proposed Sub-projects is well within the allocated amount for the
municipality and there are no Sub-projects left unfunded.

Left-over
It refers to the remaining amount from the municipal allocation after
some of the prioritized Sub-projects have been funded. This happens
when one or more Sub-projects remain unfunded and the remaining grant
amount is insufficient for the next runner-up proposal.

Excess
It refers to the remaining 10% final tranche of the community grant fund
when the Sub-project may be completed even without it. This happens
when conditions during actual Sub-project implementation lead to a
reduction on cost. In cases where only a portion of the 10% final tranche
will be requested to fully complete the Sub-project, the balance will
remain as excess fund.

Savings
It refers to the remaining funds in the community bank account after the
100% completion of the Sub-project with all valid financial obligations
settled. In this case, it is possible that barangays may generate savings
from the community grant funds due to varying site conditions during
implementation which the Project recognizes - may not be totally
anticipated at the time of planning.

Contingency
It refers to that item indicated in the Program of Works intended for
unforeseen expenses.

80 Community Finance Manual


9.2 Mechanics for the Utilization of Surplus, Left-Over
and Excess Funds

9.2.1 The Surplus, Left-over and Excess Funds from the previous cycle/s
may be carried forward to the succeeding cycle.
9.2.2 The MIBF shall decide on the use of Surplus, Left-Over and Excess
Funds subject to the following parameters:

a. The MIBF - Criteria Setting Workshop (CSW) will account for


the total unutilized funds (e.g. Surplus, Left-over and Excess
funds) and will issue a resolution to allocate the amount for
inclusion in the next MIBF.
b. The MIBF cannot award the fund as an additional or
augmentation funding for a Sub-project that is already
prioritized and with existing funding allocation.
c. The MIBF should give first priority, for the purpose of award
of the fund, to the first runner-up Sub-project. In case the
fund is insufficient for the 1st runner-up Sub-project, next
priority should be given to the next Sub-project in rank or to
the next Sub-project whose grant request is within the
available amount. The costs of the runner-up Sub-projects
should not be adjusted to fit the amount. All Sub-project
costs presented during the MIBF are final. Local counterpart
contributions shall be adjusted equivalent to the amount
stipulated in the Memorandum of Agreement.
d. No surplus, left-over and excess funds may be awarded to
any barangay with pending/ on-going Sub-project.

9.3 Mechanics for the Utilization of Savings

9.3.1 Use of savings should be discussed in detail in a Barangay Assembly


(BA) called for the purpose and documented through a BA
resolution.

9.3.2 The AC shall be guided by the contents of the BA resolution in co-


signing withdrawals of savings from the community bank account.

9.3.3 Use of savings should be reported to the BA and subject to


transparency, procurement and audit requirements of the Project.

9.3.4 Savings cannot be used for the operations and maintenance of


completed Sub-projects and/or activities/work items which are
already part of the original plan or program of work contained in the

81 Community Finance Manual


Sub-project that is funded either from local counterpart contribution
or grant.

9.3.5 Savings, however, may be used for subsidiary activities,


accessories, tools and paraphernalia to reinforce the functionality
and sustainability of the Sub-project (e.g. fence for health/day care
center, books and reference materials, tools for water supply
projects, etc).

9.3.6 Use of savings should not violate the existing Negative List Policy
of the Project.

9.4 Procedures in Determining Excess Funds

Determining Excess Funds may happen at the time the community


makes the request for release of the third/final tranche, by which time the
Sub-project is at least 90% complete. The following are the procedures:

9.4.1 The AC, upon receipt from the community of the documents
requesting for the release of the third tranche shall undertake a
review/assessment which includes:
a. verifying the fund balance in the community bank account;
b. verifying the accounts payable of the community;
c. comparing fund balance versus physical progress of the Sub-
project; and
d. reviewing the Joint Inspection Report.

9.4.2 The following required documents may be used for the ACs desk
review:
a. Physical Progress Report verified/certified by the DAC. The
DAC or the municipal engineer should have conducted an
ocular inspection before certifying the report. In case the
municipal engineer did the inspection, the DAC should
countersign;
b. Sub-project Fund Utilization Report certified by the Municipal
Financial Analyst and the Bank;
c. Accounts payable of the community certified by the Treasurer;
d. BA resolution confirming the certifications; and
e. Joint Inspection Report indicating the total cost of remaining
materials to be procured and total cost of labor payroll and
other related expenditures to be incurred to complete the
Sub-project.

82 Community Finance Manual


9.4.3 If the AC finds there is potential excess fund, i.e. money in the
bank is sufficient to carry out Sub-project requirements minus valid
payables, the AC shall inform the BSPMC in writing and request for
comments. If the AC finds that there is no excess fund, the RFR
documents may be forwarded to the RPMT for appropriate action.

9.4.4 The BSPMC, upon receipt of the ACs findings that there is potential
excess fund, may either concur or justify the need for the 3rd
tranche.

9.4.5 In case of concurrence, the AC shall notify the RPMT of the excess
fund and the Central Office shall retain the 3rd tranche. The BSPMC,
on the other hand, shall inform the BA of the ACs findings, continue
Sub-project implementation and submit the required 100%
completion reports in due time.

9.4.6 If, within 5 days from BSPMCs receipt of ACs findings, no reply is
received, the AC shall consider it as concurrence by the BSPMC.

9.4.7 The BSPMC may also provide justification/ explanation, in writing,


for the release of the 3rd tranche under the following possible
circumstances:
a. Discovery during Sub-project implementation of additional
works needed related to the approved Sub-project. A brief
supplemental explanation should be indicated in the Sub-
project physical progress report stating the additional works
required. The actual percentage physical progress of the Sub-
project, incorporating the additional works, should be
reflected. Documentation of the variation orders/extra works
are assumed kept on file by the BSPMC for reference during
inspection or audit.
b. Actual local counterpart contribution mobilized by the
community is greater than the amount committed. The
BSPMC should indicate in the physical progress report the
fact about its over-delivered LCC and how it was realized.
c.The community incurred legitimate savings during Sub-project
implementation. The BSPMC should indicate in the physical
progress report how the savings was realized.

9.4.8 Should the AC find the BSPMCs explanation sufficient, the RFR
documents shall be forwarded to the RPMT together with the ACs
findings and the BSPMCs justification.

9.4.9 In cases where the BSPMC and the AC is in disagreement over


existence of excess fund, the AC and CF concerned shall discuss this
with the BA. If there is no agreement with the BA, the AC shall
elevate the matter to the RPMT. A representative of the RPMT shall

83 Community Finance Manual


then conduct a field visit and desk review and provide the RPM with
recommendation. The RPMT, through the RPM, shall decide on the
issue.

9.4.10 If it is concluded/decided that there is indeed excess fund, DSWD


shall retain the last tranche and shall no longer entertain request for
its release.

9.5 Procedures in Determining Existence of Savings

9.5.1 The AC, upon receipt from the community of the required
completion reports when the Sub-project is 100% completed shall
undertake a desk review with assistance of concerned ACT staff,
which includes:

c. verifying the fund balance in the community bank account;


and
d. verifying the accounts payable of the community.

9.5.2 If the ACs desk review reveals that there remains a significant fund
balance (more than PhP 5,000) in the community bank account
minus valid payables of the Sub-project (as verified by the
Municipal Financial Analyst), the AC shall require the BA to submit a
resolution following the parameters on use, reporting and approval
process of Sub-project savings. The resolution shall guide the AC in
monitoring the use of such fund. The resolution shall be attached as
well to the Sub-project completion reports submitted to the RPMT.

9.5.3 With or without savings, the AC shall forward the filled-up and
signed Sub-project completion report to the RPMT.

9.5.4 In case a community with prioritized Sub-project waived its right to


implement the approved and funded Sub-project, the utilization of
savings shall be decided upon through the conduct of Special MIBF.
It shall pass a resolution indicating the details of the allocation of
the community grant funds. The Project will only recognize, with
finality, MIBF Resolution agreed during the Special MIBF. Otherwise,
said funds shall be returned to the DSWD for use of other approved
Sub-projects.

9.5.5 In cases where the community decides not to utilize the savings,
the full amount shall be refunded to the DSWD KALAHI CIDSS
Current Account maintained by the DSWD Central Office. The said
funds shall be supported with Barangay Assembly Resolution

84 Community Finance Manual


waiving the communitys rights to utilize the savings stating the
reasons in detail. In any case, the community shall forward a copy
of the transfer notice or deposit slip to the DSWD-CO thru the
DSWD-FO for reference and use in the monitoring and reconciliation
of balances of the said Current Account.

9.6 Use of Contingency Fund

9.6.1 The contingency cost provided for in the Program of Works shall no
longer be automatically made part of and be released together with
the 1st, 2nd and 3rd tranches of community grant funds.
9.6.2 The contingency cost shall only be released under the following
circumstances:

a. Price escalation;
b. Underestimated planned costs that cannot be covered by
available funds;
c. There is a need to perform extra works for the functionality of
the Sub-project, which were not anticipated during project
planning. The said extra works, however, should only be
those that are necessary to complete the Sub-project as
designed; In no case shall the contingency cost be used to
finance extra works/variation orders that are not needed to
complete the Sub-project as designed.

For purposes of this Manual, variation order/extra works mean as


follows:

any increase/decrease in quantities, including the introduction


of new work items that are not included in the original
contract/POW or reclassification of work items that are either due
to change in plans, design or alignment to suit actual field
conditions resulting in disparity between the preconstruction
plans used for purposes of bidding and the as staked plans or
construction drawings prepared after the joint survey by the
contractor and the implementation entity after the award of
contract.

The said variation orders should address the following situations:


a) latent physical conditions at the site differing materially from
those indicated in the contract and b) unusual nature differing
materially from those ordinarily encountered and generally
recognized as inherent in the work.

85 Community Finance Manual


d. The Sub-project was damaged by fortuitous event before
completion.

9.6.3 The contingency cost, if needed, shall be requested together with


the 3rd tranche RFR. The following are the requirements for its
release:

In the case of 9.6.2 a & b:

9.6.3.1 Comparison of planned versus actual procurement


with analysis of and explanations for variances to be
prepared by the Procurement Team and concurred by
the DAC and FA.

9.6.3.2 Certification from the Procurement Team that there


was price escalation and/or underestimated POW
resulting to the non-completion of the Sub-project,
based on 8.6.3.1. The certification should indicate the
amount of contingency cost needed to complete the
Sub-project and that said amount is not part of the
committed LCC. The certification shall be concurred
by the AC and shall be certified correct by the
Regional Community Infrastructure Specialist and
Regional Financial Analyst.

In the case of c:

9.6.3.3 Certification from the Project Implementation Team


that the extra work is necessary for the functionality of
the Sub-project as originally planned/designed and
that said extra work was not specifically addressed in
the POW, to be concurred by the DAC and to be
certified by the RCIS. The certification should indicate
the cost of the extra works.

In the case of d:

9.6.3.4 Certification from the BSPMC Chairman that the Sub-


project was damaged by fortuitous event before
completion to be concurred by the Barangay
Chairman, AC and the RPM. The certificate should
indicate the amount needed to complete the
damaged portion of the Sub-project.

9.6.4 For purposes of cost sharing, the contingency cost, if not charged
100% under the KC Grant, should be shared by the latter and Cash

86 Community Finance Manual


LCC following the actual cost sharing ratio of the approved Sub-
project.

9.6.5 The amount to be released shall be the actual amount needed as


indicated in the required certifications or the amount of contingency
cost indicated in the POW, whichever is lower.

87 Community Finance Manual


CHAPTER 10
FINANCIAL MONITORING SYSTEM
Financial Monitoring Activities
Monitoring Checklist

88 Community Finance Manual


The following monitoring activities must be regularly undertaken to a)
ensure that the internal control measures are in place and functional for
the economical, efficient and effective implementation of community
approved subprojects, b) check whether project funds are utilized as
intended and in accordance with KC community procurement and finance
guidelines, and c) to verify correctness and accuracy of financial reports.

10.1 Financial Monitoring Activities

10.1.1 BSPMC Meeting

a. Given the direct responsibility in deciding matters related to


procurement and fund management, the BSPMC shall hold weekly
meetings to monitor among others the status of sub-project
implementation and to plan the succeeding weeks activities. A
specific day and time when to hold this meeting shall be agreed
upon.

b. The meeting shall start with the Chairperson making updates or


follow-up of the previously agreed actions.

c. Status of sub-project implementation shall be reported by the


following:

1. Sub-project Implementation Team shall report on the physical


progress of the sub-project.
2. Monitoring and Inspection Team shall report the results of their
previous weeks activities.
3. Procurement Team shall report on actual procurement progress.
4. Treasurer will report financial status of the sub-project (i.e. funds
received, funds utilized, receivables, pending obligations, cash
available for use, status of petty cash fund).
5. The Bookkeeper shall present the books for inspection and will
report the status of Local Counterpart Contribution In Kind.

d. The committee shall discuss and approve the above reports. In cases
where there are unresolved issues or big variance between plan and
actual progress, the Chairperson shall immediately coordinate with
the corresponding ACT member for technical assistance.

e. Then the committee shall prepare work plan and disbursement target
for the succeeding weeks activities.

89 Community Finance Manual


f. Minutes of the meeting shall be prepared by the Secretary and a copy
will be submitted to the ACT.

10.1.2 Municipal Fiduciary Workshop (MFW)

a. Municipal Fiduciary Workshop is a measure designed to strengthen the


knowledge of the volunteers and to enhance their capacities to
effectively implement procurement and financial management system
of the Project. It is a venue where lessons learned and issues and
concerns during sub-project implementation are collectively shared,
discussed, and settled. It shall be participated by the Audit and
Inventory Committee (AIC), Treasurer, Bookkeeper, and Chairperson
of each prioritized barangay and should be conducted at least once in
every two months.

b. The results of the activity shall be the bases of the MFA and DAC to
prepare TA and monitoring agenda for the month.

c. Procedures in the conduct of Municipal Fiduciary Workshop.

c.1 After the preliminary activities (e.g. opening prayer, roll call,
welcome message), the MFA shall discuss the objectives of the
activity.

c.2 To refresh knowledge of CVs, a lecture on important policies of the


KC Community Finance and Procurement Manuals shall follow.
Specific topics (e.g. withholding of taxes that is found to be the
most poorly understood by the CVs) shall be chosen for
discussion. At first, the lecture will be done by the MFA or by the
DAC. However in the succeeding MFWs, it shall be assigned to a
group of volunteers. The participants should be encouraged to
interact during and after the lecture.

c.3 After the lecture, each BSPMC is required to submit, for review
purposes, all paid disbursement vouchers (DVs), cash book, LCC
journal, vouchers for local counterpart contribution for sub-project
implementation, program of works, status of sub-project fund
utilization report, bank snapshot, and bank reconciliation
statement. The MFA shall make inventory of these financial
documents and reports and should see to it that all, especially DVs
are accounted for.

c.4 Then MFA will give a very detailed orientation regarding auditing
procedures thru a power point presentation. If there is no
available LCD projector, the best alternative is to write the
presentation in a manila paper as visual aid. Again, the
participants should be encouraged to interact during and after the

90 Community Finance Manual


lecture. This detailed orientation is only conducted on the first
MFW. However, the MFA should conduct re-orientation if result of
the workshop so requires.

c.5 The MFA will then interchangeably distribute the submitted


financial documents and reports together with the audit forms (i.e.
working paper and matrix of findings and recommendations) to
each BSPMC for the workshop proper.

The DAC and MFA shall, from time to time check if participants are
doing as expected. This is also a good time for a one-on-one
coaching in case of queries/clarifications that were not raised
during the lecture orientation.

c.6 Each BSPMC shall elect a representative who will present their
findings/observations and recommendations. The auditee shall
take note of them and may immediately give their rejoinder.

The MFA and DAC shall act as panelists. They will respond to the
queries and issues raised by the participants regarding the
findings/observations and provide inputs on the recommendations.
However, in the succeeding MFW, this role shall be assigned to a
group of volunteers. They will only add to and/or correct the
inputs given by the assigned group, if necessary.

d. After all has presented, DVs and reports that have no findings shall be
submitted to the MFA for submission to the RPMT. Otherwise, it shall
be returned to the concerned BSPMCs for immediate compliance
except for DVs with adverse findings where it shall be retained at the
ACT level for further review and evaluation. A specific date shall be
agreed upon as deadline for submission of returned DVs and reports
with full compliance.

e. One or two participants shall be asked to give feedback in the overall


conduct of the activity. Then the MFA and/or DAC will issue directives
for the next two months and will set the date for the next MFW.

f. Minutes of the proceedings shall be submitted to the RPMT together


with the monthly reports and original paid disbursement vouchers.

10.1.3 Regional Fiduciary Workshop (RFW)

a. Regional Fiduciary Workshop, a mechanism designed to strengthen


monitoring activities of the region aims to directly verify whether funds
are utilized as intended and to check whether communities strictly
adhere to KC finance and procurement policies and procedures and
government laws, rules and regulations.

91 Community Finance Manual


b. Spearheaded by the RFA and RCIS, the results of the activity should
provide them bases to recommend sanctions to communities confirmed
to have irregular transactions and to assess performance of the ACT in
terms of job coaching and safeguarding of funds.

c. It shall be participated by all MFAs and DACs of both ACTs and MCTs
and shall be conducted on a monthly basis on or before the 9th day of
the following month in time for the submission of documents to the
COA.

d. Procedures in the conduct of Regional Fiduciary Workshop.

d.1 After the preliminary activities (e.g. opening prayer, roll call,
welcome message), the RFA shall give a very detailed orientation
regarding auditing procedures thru a power point presentation.
The participants should be encouraged to interact during and after
the lecture. This shall only be done on the first RFW. However, a
follow-through must be done depending on the results of the
workshops.

d.2 Then the MFAs are called to submit, for review purposes, all paid
disbursement vouchers (DVs), cash book, LCC journal, vouchers
for local counterpart contribution for sub-project implementation,
program of works, status of sub-project fund utilization report,
bank snapshot, and bank reconciliation statement. The RFA shall
make inventory of these financial documents and reports and
should see to it that all, especially DVs are accounted for.

d.4 The RFA will then interchangeably distribute the submitted financial
documents and reports together with the audit forms (i.e. working
paper and matrix of findings and recommendations) to each team
for the workshop proper.

d.5 Then the MFA or DAC will present their findings/observations and
recommendations. The auditee shall take note of them and may
immediately give their rejoinder.

The RFA and RCIS shall act as panelists. They will respond to the
queries and issues raised by the participants regarding the
findings/observations and provide inputs on the recommendations.

g. After all has presented, DVs and reports that have no findings shall be
submitted to the COA. Otherwise, it shall be returned to the concerned
MFA for immediate compliance except for DVs with adverse findings
where it shall be retained at the RPMT level for further review and

92 Community Finance Manual


evaluation. A specific date shall be agreed upon as deadline for
submission of returned DVs and reports with full compliance.

h. One or two participants shall be asked to give feedback in the overall


conduct of the activity. Then the RFA and/or RCIS will issue directives
for the month and will set the date for the next RFW.

i. Minutes of the proceedings shall be submitted to the NPMT-Finance


together with the monthly reports.

10.2 Monitoring Checklist

a. Community Level

As the direct TA provider to the community, the MFA is required to visit


each approved subproject at least once a month during sub-project
implementation and accomplish the monitoring checklist below. The result
will be another basis of the MFA to prepare TA plan for the next period.
One copy will be submitted to the FO together with the monthly reports.

AREAS OF MONITORING AGENDA MEANS OF REMARKS


CONCERN VERIFICATION
I. Bookkeeping a. Check completeness *Updated Cash Book
and correctness of *Updated LCC
records in the Cash Journal
Book.
b. Check whether all
deliveries and utilization
of LCC In Kind are
recorded in the LCC
Journal.
II. Reporting a. Validate figures in the *Reconciled Annex
Annex 11 against the 11 with Cash Book
Cash Book and LCC and LCC Journal
Journal. *Signed Annex 11
b. Check whether Annex *Transmittal Letters
11s are completely
signed.
c. Verify whether BT and
CB submit reports on
time.
III. Fund a. Check whether payee is *Disbursement
Disbursement in the name of the Vouchers and
establishment or of the Supporting
proprietor. Documents
b. Verify whether person
who signed the
Received by portion

93 Community Finance Manual


of the Disbursement
Voucher and who
received the Check is
the right payee. If not,
check whether he/she
is authorized.
c. Check whether
payment to
suppliers/laborers is
made within ten (10)
working days.
d. Check whether Official
Receipt is attached to
paid DVs and that
amount is consistent
with the OR.
e. For payroll payment,
check whether recipient
of cash is the right
laborer. If not, check
whether person who
received is authorized.
f. For payroll payment,
check whether cash is
fully disbursed. If not,
check whether
unreleased cash is
deposited back to the
account.
IV. Funds Flow a. Check whether RFR is *RFR Logbook
submitted to the ACT *Transmittal Letter
within ten (10) working
days after MIBF-PRA.
b. For succeeding
tranches, check
whether RFR is
submitted within five
(5) working days upon
reaching the financial
and physical
accomplishment
requirements.
V. Local a. Check whether LCC are *LCC for SPI
Counterpart delivered on time. If Monitoring Report
Contribution not, verify how this *Construction
Delivery affected sub-project Logbook
implementation and *Vouchers for LCC
what actions have been and its Supporting
undertaken to address Documents
the problem. *Materials Record
b. Ascertain whether all Sheet (MRS)
LCC delivered have *CERS
been accounted for. *Certification
c. Check correctness of *Database of Prices
valuations of In-Kind
LCC and completeness
of its supporting

94 Community Finance Manual


documents/proof of
delivery.
VI. Materials a. Check whether *Logbook
Inventory materials delivered are *Updated and signed
Management received, properly MRS
stored, and accounted
by the MIT.
VII. Filing of a. Check completeness,
Financial filing, and safekeeping
Documents of all financial
documents.

b. Municipal Level

The RFA is expected to know the financial aspect of implementation of


each approved subproject. Hence, he/she is required to visit each
community at least once during sub-project implementation to meet and
talk with the community volunteers. Equally important is the monitoring
of the performance of the MFA assigned in the municipality. Using the
following monitoring checklist, the RFA should be able to assess the
performance of the MFA and render appropriate technical assistance
thereof.

AREAS OF ACTIVITIES MEANS OF TIMEFRAME REMARKS


CONCERN VERIFICATION
I. ACT Work a. Check whether *ACT WFP initialed by Ten (10)
and Financial WFP is within cost MFA working days
Plan parameters and upon receipt
timelines. of WFP from
FO
II. Job a. Conduct spot *Cash Book Monthly
Coaching checking by *LCC IK Journal (during Sub-
examining *Bank Reconciliation project
community books *Annex 11 Implementati
and DVs. *Narrative Report on)
b. Validate thru *Minutes of Meeting
interview with *Documentation of FM
Community Trainings
Volunteers
whether job
coaching is being
done
c. Attend monthly
MFW.
III. Request a. Require MFA to *Checklist of findings During
for Fund attach list of *RFR tracking tool Monthly FM
Release findings in RFR (where number of Meeting (for
folder days of review and RFR
b. FA I to initial compliance to BTS submitted
before RFA or AC RFRs is specified) during the
in the RFR. month)
c. Check whether
ACT review of
RFRs is within the

95 Community Finance Manual


allotted 5 days.
d. In case of RFRs
with findings,
check whether
concerned
BSPMCs are
immediately
informed of its
findings and
recommendations.
IV. a. Assess result of *Inventory of DVs Monthly
Disbursemen the MFW and *Minutes of Fiduciary during Sub-
t of Funds regional fiduciary Workshop project
workshops. *Working Implementati
Papers/Matrix of on
Findings
V. FM a. Set deadline on *FM Reports Monthly (FO
Reports the submission of *Narrative Reports shall
report at ACT establish its
level own
b. Check whether deadline)
municipal
consolidated
reports are
reconciled with
community
reports.
VI. Monitor a. Review MFA *MFA Monitoring Tool Monthly
and Validate monitoring tool *Journal
Financial and journal
Status of
Sub-projects
VII. Inputs a. Check minutes of *Minutes of Project
on Program PDW meetings/trainings Development
and Work b. Check accuracy of *POWs Stage
(Indirect POWs.
Costs)
VIII. a. Attend *Narrative Report Once in a
Community community cycle
Finance finance training
Training to ensure that
MFA delivers
correctly.
IX. Provide a. Review minutes *Minutes of Meeting Monthly
updates to of MIAC
different meetings or any
stakeholders other meetings
with
stakeholders
X. a. Check minutes of *Minutes of Trainings SP almost
Installation O&M training completed
of FMS b. Review financial
particularly books and reports
on IGPs of O&M group.
XI. Filing Check the existence During
system of filing cabinet & Monthly FM

96 Community Finance Manual


completeness of Meeting
financial files and
documents

c. Regional Level

Monitoring of the performance of the region in its implementation of the


Projects financial management system is the responsibility of the Central
Office finance staff. On community finance, the monitoring will focus on
whether the region, specifically the Regional Financial Analyst has
ensured that the internal control measures put in place for the
economical, efficient, and effective implementation of community-
approved sub-projects remain in place and working. At the minimum,
monitoring assessment shall be done semi-annually to each region. The
following monitoring checklist shall be used to assess the performance of
the region.

AREAS OF ACTIVITIES DOCUMENTS TO REMARKS


CONCERN REVIEW
I. Pre-municipal a. Check whether LCC *LCC Plan
engagement plans met minimum
requirements of the
Project and that costs
are within the
established
parameters.
II. Provision of a. Check whether RFA *Minutes of RPMT
technical hold regular fiduciary meetings
assistance workshops. *Minutes of fiduciary
b. Review minutes of workshops
RPMT meetings and *RFA travel and
results of fiduciary accomplishment
workshops and assess reports
appropriateness of *MFA feed back
rendered TA. reports
c. Check whether RFA *Community level
has visited each sub- monitoring checklist
project at least once
during sub-project
implementation.
d. Review monthly feed
back reports of MFA
and the results of the
community level
monitoring checklist
and evaluate how RFA
respond to the
financial issues and
concerns raised
therein by checking
his/her TA agenda and
travel/accomplishment
reports.
e. Validate thru interview

97 Community Finance Manual


with MFAs and MCT-
FAs and CVs whether
correct TA has been
timely provided.
f. Randomly attend FM
meetings and fiduciary
workshops.
g. Randomly visit
communities to verify
compliance of RFA and
MFAs on the Projects
financial monitoring
system.
III. Funds Flow a. At the CO, periodically *RFR Databases (FO
check percentage of and CO)
pending over
submitted RFRs and
the recurring reasons
for pendency.
b. Check whether good
RFRs are submitted to
the CO within five (5)
working days after
receipt from ACT. For
non-compliant RFRs,
check timeliness of the
FO to relay findings
and recommendations
to the ACT.
IV. Reports a. Check whether reports *CO Report Tracking
are submitted *Regional Reports
completely and on *Municipal Reports
time. *Community Reports
b. Validate accuracy of *Transmittal Letters
regional reports by
reconciling with the
municipal and
community reports.
c. Check whether RFRs
and its supporting
documents, original
paid disbursement
vouchers and its
supporting
documents, and
financial progress
reports are timely
submitted to the COA.
V. Finance- a. Check timely *Grievance Reports
related submission of with status of actions
Grievances quarterly finance- taken
related grievances to
the CO.
b. Verify whether RFA
has acted timely and
correctly to finance-
related grievances.

98 Community Finance Manual


VI. COA a. Confer with COA to
Coordination verify whether RFA
has provided them
orientation, manuals,
and latest Project
policies and
guidelines.
b. Check whether RFA
has coordinated with
COA for the prompt
submission of their
audit reports in time
for the submission of
the audited
consolidated financial
statements.
VII. Audit a. Check whether *COA AOMs/Aide
Findings COA/CO Finance/WB Mem/Co Finance
findings are timely Feed back reports
and fully addressed *Management
and recommendations Letters
are followed. *COA Rejoinders

99 Community Finance Manual


CHAPTER 11
FINANCIAL MANAGEMENT SYSTEM FOR
KALAHI-CIDSS OPERATION AND
MAINTENANCE
GROUPS/ASSOCIATIONS
Organizational Structure and FM Roles of Officers
Cash Receipts/Collection
Cash Disbursements/Payments
Recording and Filing
Determining Non-Cash Transactions
Preparation of Financial Reports

100 Community Finance Manual


Sub-projects that are income generating shall have a separate financial
management systems to ensure project sustainability.

11.1 Organizational Structure and FM Roles of Officers

As a first step, the community shall organize and form an association


which shall have the primary purpose of generating funds to carry on the
various operational and maintenance activities of the income generating
Sub-project. The community members shall elect the officers of the
Association, which shall include among others, the following vital
positions: i) Operations In-charge, ii) Treasurer, iii) Cashier/Collector and
iv) Bookkeeper, who shall have the following functions:

Operations In-charge in charge of the day to day operations of the


facility. In his/her absence, the Association shall assign a replacement in
order not to hamper the day to day operations. He/she shall see to it that
all revenues generated from the facility/Sub-project are properly and
accurately accounted for.

Treasurer takes custody of the funds coming from the day to day
collections of the Cashier/Collector. In the absence of the
Treasurer/Cashier, the Association shall assign a replacement in order not
to delay collection of revenues.

Cashier in-charge of collecting fees from the beneficiaries/ customers.


He/she shall remit to the Treasurer the total amount collected at the end
of the day.

Bookkeeper records the financial transactions of the Association (e.g.


cash collections and disbursements) and prepares Financial Report/
Income Statement when required.

The Association shall open a bank account separate from the bank
account for Sub-project implementation which shall have at least two co-
signatories for control purposes. All income generated from the Sub-
project or cash collections shall be deposited to the bank account opened
by the Association for the purpose. It shall be the discretion of the
Association to open a current/checking or savings bank account.

11.2 Cash Receipts/Collections

101 Community Finance Manual


a. Collections are the amount received by the Association in exchange for
the services rendered through the completed Sub-project (e.g. fare for
boat Sub-project, payments from rice/corn mills, sale of meat products
for meat processing facility, dues from beneficiaries of water systems
etc).

b. The Collector/Cashier shall issue a pre-numbered Official Receipt (OR)


or Acknowledgement Receipt (AR) or equivalent receipt (ticket for toll
fees, boat ticket etc) in two copies for all cash collections. The original
copy shall be given to the customer making payment and the duplicate
copy shall be kept by the Treasurer/Cashier for record purposes. To
ensure fund controls, the AR should be color coded (i.e. white for the
original copy and any desired color other than white for the duplicate
copy). In preparing the OR/AR, the Treasurer/Cashier should use
carbon paper to produce a duplicate copy. In no case shall the original
and duplicate copies of the AR be prepared separately.

Date Particular Amount AR/OR


No.

c. He/she then accomplishes List of Collection in three (3) copies every


day. Distribution of copies is as follows: Original copy - Treasurer,
duplicate copy - Bookkeeper and triplicate copy retained as file. The
format of the List of Collection contains the following:

List of Collection
Date: ___________________
No : ____________________

No. Particular Amount OR/AR


1
2
3

Prepared by: Collector/Cashier


Verified by: Bookkeeper
Recorded by: Treasurer

d. The Treasurer shall verify the cash collection received from the
Collector/Cashier versus the List of Collection.

e. The Treasurer also retains original copy of List of Collection and records
the same in the Treasurers Journal which contains the following

102 Community Finance Manual


after which he/she shall keep the cash in the Cash box for deposit the
next banking day.

Date Refer Particular Receipt Disbursement Cumulative


ence Balance

f. The Bookkeeper receives the duplicate copy of the List of Collection and
records the transactions in the Cash Book (The format is the same as
what is used in the Sub-project implementation.). He /she then file the
copy of the List of Collection.

11.3 Cash Disbursements/Payments

a. Disbursements or Payments are the amount paid to outside creditors/


suppliers for the purchase of supplies and materials as well as payment
for labor needed for the operations and maintenance of the Sub-
project (gasoline for boat and corn mill, payments for electric bills for
water system or any electric-run machines/facilities, purchase of raw
materials needed for production, etc).

b. Procedure for payment considered non-petty transaction (For petty


transaction, follow the petty cash principle during implementation):

1. Payee/Claimant submits request for payment to the treasurer where


attached to it are the required supporting documents as evidence of
payment such as official receipts, RER, cash invoice in case of
reimbursement and for payment billing statement or statement of
account and copy of purchase order.

2. Treasurer verifies the correctness of the claim. Prepares


disbursement voucher and check (if checking account) or
withdrawal slip (if savings account) to be forwarded to the
signatories for approval and signature.

103 Community Finance Manual


3. Approving Bodies (President or somebody within the organization
who is authorized to approve) approves and signs the check or
withdrawal slip and returns the documents to the treasurer.

4. Treasurer i) For check issues the check to the payee/claimant


and let the payee/claimant sign in the Received by portion of the
DV; ii) For withdrawal slip- withdraws the fund from the bank
and turnovers the cash to the payee/claimant while the latter signs
in the Received by portion of the DV.

c. Each disbursement should be accompanied with Disbursement Voucher


(the Association may adopt the DV format used during Sub-project
implementation).

11.4 Recording and Filing

a. It is greatly recommended that all transactions be recorded daily. If


recording is done regularly, periodic reports can be prepared quickly
and accurately.

b. Safekeeping the books of accounts, related records, accounting forms


and reports are the major responsibilities of the Bookkeeper. All
records and documents should be locked up and access should be
limited to authorized Association officers and personnel.

c. The Association Officers should agree on the reports to be prepared,


who received the report and how frequent is the submission.

d. The following procedures shall be followed:

i) Secure the Treasurers Journal as well as the files of Collection


List, OR/AR, Deposit Slips and DVs.
ii) Compare Collection and OR/AR issued to check if all OR/AR have
been fully accounted in the Collection List or all collections have
been issued OR/AR.
iii) Check if all OR/AR issued are recorded in the Treasurers Journal.
iv) Check the accuracy of footings.
v) In checking, the Bookkeeper should put markings to indicate a
trail.

e. The Bookkeeper shall record all transactions in the Cash Book. (The
Association may adopt the format of the Cash Book used during Sub-
project implementation).

104 Community Finance Manual


11.5 Determining Non-Cash Transactions

Determining Accounts Receivable and Accounts Payable (Non-cash


transactions)

a. Non-cash Transactions do not involve cash collections or payments and


therefore are not to be recorded in the Cash Book. Examples of non-
cash source documents are those used in water system and
electrification projects. These are the Billing form and Invoices or
Statements. The Billing form documents money that is owed to the
Association while the Invoices or Statements are documents made by
other showing money owed by the Association.

b. Accounts Receivables are the equivalent amount of services rendered


or products sold to individuals indicated in the Billing Form which
remained not collected as of cut-off date. On the other hand, Accounts
Payables are the equivalent cost of procured items and/or labor for the
operations and maintenance of the Sub-project which remained unpaid
as of cut-off date.

c. All Accounts Receivables and Payables should also be properly


accounted for in a separate record.

11.6 Preparation of Financial Reports

a. The Bookkeeper shall prepare a Financial Report/Income Statement.

b. Procedures to prepare Financial Report/Income Statement:

b1. To determine the total revenues generated from the Sub-project,


the Bookkeeper shall add the total collections for the period plus the
total accounts receivables or those billings which were remained
uncollected.

b2. To determine the total amount of expenses incurred for the period
(including those not yet paid or accounts payable), the expenses should
be classified per specific item of expenditure (e.g. gasoline, labor,
materials, electric) and should also be categorized whether Direct Cost
or Operating Cost.

105 Community Finance Manual


b3. Deduct the total expenses from the total revenues. The result
represents the Net Income or Net Loss for the period.

For monitoring purposes, it is most ideal to prepare Financial Report/


Income Statement every two weeks. This should, however, be decided
upon by the Association.

Other suggested Fund Management Procedures for Income Generating


Sub-projects are provided in the KC Manual for Project Sustainability
(Operations and Maintenance).

106 Community Finance Manual


CHAPTER 12
BSPMC FORMS AND ANNEXES
BSPMC Forms
Annexes
Attachments

107 Community Finance Manual


12.1 BSPMC Forms

1. Sub-project Concept Form (BSPMC Form No. 1)


2. Sub-project Program of Works (BSPMC Form No. 2)
3. Local Counterpart Contribution Plan (BSPMC Form No. 3)
4. Planned Community Procurement Packaging with Schedule of In-
Kind LCC (BSPMC Form No. 4)
5. Projected Schedule of Grant Fund Releases/Tranches (BSPMC
Form No. 5)
6. LBP Certification of Bank Account Opened (BSPMC Form No. 6)
7. Request For Fund Release (BSPMC Form No. 7)
8. Disbursement Voucher (BSPMC Form No. 8)
9. Weekly Schedule of Disbursements (BSPMC Form No. 9)
10. Voucher for Local Counterpart Contributions (BSPMC Form No.
10)
11. Petty Cash Voucher (BSPMC Form No. 11)
12. Petty Cash Liquidation Summary (BSPMC Form No. 12)
13. Employment Record Sheet (BSPMC Form No. 13)
14. LCC Certification (BSPMC Form No. 14)
15. Time Sheet (BSPMC Form No. 15)
16. Construction Logbook (BSPMC Form No. 16)
17. Sub-project Work Schedule & Physical Progress Report (BSPMC
Form No. 17)
18. Monthly Physical Progress Report (Non-Infrastructure Sub-
Project) (BSPMC Form No. 17-A)
19. Actual Community Procurement Packaging (BSPMC Form No. 18)
20. Technical Assistance Fund Journal (BSPMC Form No. 19)
21. Acknowledgment Receipt (BSPMC Form No. 20)
22. TAF Eligibility Checklist (BSPMC Form 21)
23. Cash Count Sheet (BSPMC Form 22)

12.2 Annexes

1. Statement of Sources and Uses of Funds (Annex 1)


2. Regional Consolidated Quarterly Financial Progress Report
(Annex 2)
3. Uses of Funds by Project Activity (Annex 3)
4. Regional Consolidated Status of Sub-project Fund Utilization
Report (Annex 4)
5. Regional Consolidated Status of Local Counterpart Contribution
(Annex 5)

108 Community Finance Manual


6. Municipal Consolidated Status of Sub-project Fund utilization
Report (Annex 6)
7. Municipal Consolidated Status of Local Counterpart Contribution
(Annex 7)
8. Municipal Local Counterpart In-kind Contribution Journal for CBIS
(Annex 8)
9. List of Checks Issued (Annex 9)
10. RFR Review Sheet (First Tranche) (Annex 10a)
11. RFR Review Sheet (Second Tranche) (Annex 10b)
12. RFR Review Sheet (Third Tranche) (Annex 10c)
13. Status of Sub-project Fund Utilization (Annex 11)
14. Cash Book (Annex 12)
15. Local Counterpart Contribution Journal (Annex 13)

11.3 Attachments

1. Memorandum of Agreement with LBP


2. Tripartite Sub Project Agreement
3. Revised Schedule of Premium Rates (Fidelity Bond)

109 Community Finance Manual


BSPMC Form No. 1

SUB-PROJECT CONCEPT FORM

Barangay Municipality Province: Region:


A. GENERAL INFORMATION
Name of proposed sub-project:

Category: Public Goods Enterprise Human Resource Dev't.


What needs of the community will the proposed sub-project address?
1
2
3
B. TECHNICAL DESCRIPTION
Physical target: Cost parameter:
Person/s who assisted in the preparation of techical proposal:
Proposed scope of works to be undertaken:

Manpower requirement / sources: (skilled)


Equipment requirement / sources:
Other component included in the proposal (e.g. trainings)

Procurement Method/s to be adopted:


C. FINANCIAL ECONOMIC ASPECT
Total Estimated Cost : Php
Cost Sharing Arrangement: Direct Cost Indirect Cost Total % total
Grant Amount
LCC: BLGU
Community
MLGU
PLGU/Others
sub-total
Total LCC Cash
Total LCC In-kind
Total number of Household (HH) in the barangay: Total population
Male Female
Number of HH currently without access to the needed services % to total
that can be served by the proposed sub-project:
Current expenses without the proposed SP
Expected expenses after completion of proposed SP:
Other benefits can be derived from the proposed sub-project:

D. SAFEGUARD CONCERNS
Any displacement or relocation of community members during implementation? Yes No
Acquisition of proposed site/location? Deed of Sale Donated LGU Ownd others specify
Proposed site within the reservation areas? Yes No
Necessary permit/s accomplished? (e.g ECC, CNC) Yes No EMP Only
Mitigating measures to be undertaken for the environmental impacts of the sub-project?

E. SP SUSTAINABILITY
Is there an existing O&M group or still to be organized?
Is the community willing to pay for Tariff and by How much?
Other sources of funds for the operation and maintenance activities?
Identified capability building requirements for O&M group?
How do we plan to maintain the completed sub-project?

Prepared by: Approved for endorsement to the MIBF

Head, Project Preparation Team Brgy. Chairperson BSPMC Chairperson


Approved for endorsement to KALAHI-CIDSS: Technical Verification by:

Municipal Mayor/MIBF Convenor Area Coordinator MIAC Representative


BSPMC Form No. 2

OFFICE OF THE BARANGAY SUB-PROJECT MANAGEMENT COMMITTEE


Barangay ____________________________
Municipality of __________________________
Province of ____________________________

SUB-PROJECT PROGRAM OF WORKs

Sub-Project Title
Category
Physical Target
Total Sub-Project Cost
Mode of Implementation

Project Description: Sub-Project Duration


Equipment Needed
Technical Personnel
Scope of Work % Unit of
Item No. Quantity Unit Price Total
(Direct Cost) Wt. measure

Total
Breakdown Estimated Sources of Fund
Project Cost KALAHI-
Community Local Gov't.Units Other Source Total Cost
CIDSS Grant
A. Direct Cost
Materials Cost
Equipment Rental
Labor Cost:
a. Skilled
b. Unskilled
Sub-Total A
B. Indirect Cost
Pre-Engineering
Supervision
Contractor's Profit
Taxes
Hand Tools
Material Testing
Admin and Overhead
Sub-Total B
TOTAL (A+B)
ADD: Contingency
%
Total Estimated Cost
ADD: O&M (Other amenities)
Grand Total
Prepared by: Approved by:

Sevice Provider/ACT-DAC BSPMC Chairperson

Reviewed by: Concurred by:

ACT-Deputy Area Coordinator Barangay Chairperson

Recommending Approval:
Municipal Mayor
Municipal Engineer Noted:

Regional Infrastructure Engineer

Note: Costing to be used on the MIBF will be the Total Estimated Cost
BSPMC Form No. 3
KALAHI-CIDSS PROJECT
Local Counterpart Contribution Plan
Barangay: ___________________________________
Municipality: ____________________________________
Province: ______________________________________
Sub-Project Title:
Pro-posed Local Counterpart Contribution (LCC) Sources
No. of Per Unit Total Sub- Target Date of
Budget Item Unit used Amount of Commu- Total of
Units Cost Proj Cost Mun LGU Brgy LGU Others (Specify Date) Delivery of LCC
Grant nity LCC
Example (follow the budget line items)
I. Administrative Cost
Office Space & Urilities other Amount If exact
Office Supplies fund date can
Transportation Expenses sources not be
Committee Meetings projected
Barangay Assemblies just
II. Other Indirect Costs write
Detailed Engineering Design projected
Honorarium month
III. Direct Cost
Labor
Materials
Equipment
IV. Operations & Maintenance

Prepared by: Approved by:

Barangay Treasurer BSPMC Chairperson


BSPMC Form No. 4

PLANNED COMMUNITY PROCUREMENT PACKAGING

Date Prepared: ____________________


Barangay: _____________ Name of proposed subproject:_______________
Municipality :__________ Total Estimated Cost:______________________ KC Cost:______________
Province:_____________ Subproject Duration:______________________ LCC: _________________
In-kind : ___________
Cash: _____________

Estimated Cost: 1st Tranche ______________ 2nd Tranche ______________ 3rd Trance _______________

Mode of Implementation: CFA BY CONTRACT

PROPOSED
PACKAGES

ESTIMATED COST INVOLVED AND SCHEDULE OF DELIVERY IMPLEMENTATION


PACKAGE PROC. SCHEDULE
QTY. UNIT TOTAL
ITEMS METHOD st
1 Tranche
nd
2 Tranche
rd
3 Tranche Total MONTH
LCC- LCC- LCC- LCC-
Grant Grant Grant Grant 1 2 3 4 5 6 7 8
Cash Cash Cash Cash
Package 1
Package 2

TOTAL

Workshop output of: Reviewed by: Submitted by:

____________________ _________________________ ____________________


Procurement Team Head DAC/Municipal Engineer BSPMC Chairperson
BSPMC Form No. 4b

SCHEDULE OF IN-KIND LOCAL COUNTERPART CONTRIBUTION

Date Prepared: ____________________


Barangay: _____________ Name of proposed subproject:_______________
Municipality :__________ Total Estimated Cost:______________________ KC Cost:______________
Province:_____________ Subproject Duration:______________________ LCC: _________________
In-kind : ___________
Cash: _____________

Estimated Cost: 1st Tranche ______________ 2nd Tranche ______________ 3rd Trance _______________

Mode of Implementation: CFA BY CONTRACT

PROPOSED
PACKAGES

ESTIMATED COST INVOLVED AND SCHEDULE OF DELIVERY IMPLEMENTATION


PACKAGE PROC. SCHEDULE
QTY. UNIT TOTAL
ITEMS METHOD st nd nd
1 Tranche 2 Tranche 3 Tranche MONTH
TOTAL
In-Kind In-Kind In-Kind 1 2 3 4 5 6 7 8
Package 1
Package 2

TOTAL

Workshop output of: Reviewed by: Submitted by:

____________________ _________________________ ____________________


Procurement Team Head DAC/Municipal Engineer BSPMC Chairperson
BSPMC Form No. 5

PROJECTED SCHEDULE OF GRANT FUND RELEASES/TRANCHES


KALAHI-CIDSS PROJECT
Barangay _______________
Municipality ________________
Province ____________________

Sub-Project Title:

Fund Releases/Tranches Amount Projected Date Required


(If exact date can not be
First Projected, month and week
Second Would be sufficient)
Third
Total

Prepared by: Approved by:

Barangay Treasurer BSPMC Chairperson

Note:

If the Request for Fund Release being submitted is not in accordance with the projected
schedule, a revised schedule should be submitted with accompanying explanation or justification
to the Area Coordinating Team Leader.
BSPMC Form No. 6
LBP CERTIFICATION OF BANK ACCOUNT OPENED

Date:

This is to certify that Barangay ____________________ has opened the KALAHI-CIDSS Brgy.
_______________________ (name of Barangay) current account with the Land Bank of the
Philippines with the following details:

LBP Branch: _________________________________________________________


Complete Address: _________________________________________________________
Telephone No. ________________________
Fax No. ________________________

Current Account Number: __________________________

Authorized Signatories:

NAME DESIGNATION SPECIMEN SIGNATURE

1.

2.

3.

By:

LBP Branch Manager

Note: This form shall be submitted as part of the requirement for the approval of
detailed sub-project proposal by the MIBF. This will be used by the Area
Coordinating Team as source document in the preparation of Summary List of
Approved Sub-Projects (MIBF Form No. 1)
BSPMC Form No. 7
REQUEST FOR FUND RELEASE

___ 1st Tranche ___ 2nd Tranche ____ 3rd Tranche ____ Others (specify) _________

Region Date (mm/dd/yy)

Province Sub-Project ID No.


Total Sub-Proj
Municipality Cost
LCC

Barangay Grant Funds

Sub-Project Title:

To: The National Project Director LBP Batasan Branch Manager


DSWD Regional Office

May we request for the transfer of funds to the following LBP Bank Account for the implementation of
the Kalahi-CIDSS approved Sub-Project stated above.
LBP Branch:
Address:

Cumulative
Previous
Amount of Total
Account Name: Bank Account No. No. of this Tranche Amounts
this Request including
Released
this Request
Kalahi-CIDSS:

Requested by:
__________________________________ _________________________________
Barangay Sub-Project Management Committee Punong Barangay
Chairperson
Reviewed as to completeness of requirements:
_____________________________ ________________________________
Area Coordinator Mun. LGU Local Poverty Reduction Action Officer
Date Date
Regional Project Management Office: National Project Management Office

Reviewed by:
_____________________________
Regional Financial Analyst

Recommended by: Approved by:


________________________________ _______________________________________
Regional Project Director National Project Director
________________________________ _____________________________
Date Date
BSPMC Form No. 8
KALAHI-CIDSS PROJECT
Barangay:______________________
Municipality: ___________________________
Province: ________________________________ DV No. _____________
(must be pre-numbered)
DISBURSEMENT VOUCHER

Payee: Date: ______________


Complete Address:

PARTICULARS AMOUNT

Write full description of the transaction to be paid. For example, if several items were
Purchased, each item should be enumerated with the corresponding no. of units and unit
Price.

ACCOUNT TITLE

The Treasurer should fill this up using the chart of Accounts.

Received the amount of ___________________________________________ (P_________________)


in full payment of the account described above.

Date O.R. No. (Write Official Receipt No.)

Check No. (Write the no. of the Check issued


Received by: by the Treasurer)

PRINT FULL NAME OF THE PERSON RECEIVING THE PAYMENT. WRITE CLEARLY.

Signature over Printed Name

Prepared by: Approved:

Barangay Treasurer BSPMC Chairperson

Reviewed by:

Municipal Financial Analyst


BSPMC Form No. 09
KALAHI-CIDSS PROJECT
Barangay Sub-Project Management Committee
Barangay ________________________
Municipality _______________________
Province of __________________________

WEEKLY SCHEDULE OF DISBURSEMENTS


FOR THE WEEK ENDING ______________________________

Action Taken
Amount Remarks (Indicate reason for not
Name of Payee Particulars Date Due (indicate if
Due approving).
Approved or not)

This authorizes the Barangay Treasurer to process the payments for the approved payables listed above. Actual payment shall be subject to the submission by
the payee of complete and correct documents.

Certified true and correct (All BSPMC Executive Committee Members present).

(Signature over Printed Name)


BSPMC Form No. 10
KALAHI-CIDSS PROJECT
Barangay: ______________________
Municipality:
Province:
VLCC No. ____________
VOUCHER FOR LOCAL COUNTERPART CONTRIBUTIONS

Contributor/Fund Source: Date: _____________


Complete Address:

PARTICULARS AMOUNT

ACCOUNT TITLE

Note: attach to this voucher, photocopy or duplicate copy of the source document.

Prepared by: Concurred: Approved:

________________________ _______________________
(Write name of person preparing Write name of donor BSPMC Chairperson
the voucher)
BSPMC Form No. 11

KALAHI-CIDSS PROJECT
Barangay ______________________________
Municipality: ___________________________
Province: ___________________________

PETTY CASH VOUCHER

PAYEE: ______________________________________________________ PCV No.


(Must be pre-numbered)
Date

PARTICULARS AMOUNT

TOTAL

Requested by: Approved by: Received By:

(Name of Person making the Sub-Project Implementation Head (Print name of person
Request) receiving the cash)
BSPMC Form No. 12
KALAHI-CIDSS PROJECT
PETTY CASH FUND LIQUIDATION SUMMARY (PCF - ___) Write the No. of this Liquidation Summary Report
For the Period _________ to ____________ , 20__
BARANGAY ____________________________________________
MUNICIPALITY __________________________________________
PROVINCE ________________________________________________

Expense Items

Date PCV No. Payee Particulars Office Supplies Others TOTAL


Transportation
(inc photo- Meals (Specify)
Expense
copying)

Write
Other
expense
items

TOTAL

Prepared by:
BSPMC Approved by:

BSPMC Chairperson
Barangay Treasurer
BSPMC Form No. 13
EMPLOYMENT RECORD SHEET
For Community Force Account Labor
For the period ______________

Name of Sub-Project:
Barangay: Municipality: __________________ Province: ______________

Nature of Work NO. OF ACTUAL PAYMENT


GENDER (e.g. Laborer, TYPE: Rate Per WORKING TOTAL PLAN PAYMENT (accum.) Signature
NAME Male Female AGE Foreman, etc.) Skilled Unskilled Hour Day Hours Days Labor Cash Bayanihan Cash Bayanihan
1
2
3
4
5
6
7
8
9
10

TOTAL
NOTE:
Rate - Is the rate per day or per hour of the community worker (cash plus "bayanihan" monitized)
Cash - Is the cash amount to be paid to community members for labor
Bayanihan- Cost of Labor not to be paid (Community Equity)

Prepared by: Noted by: Approved by:

__________________________ _____________________________ _______________________ ______________________


Head, Procurement Team Head, Project Implementation Team Brgy. Treasurer BSPMC Chairperson
BSPMC Form No. 14

Republic of the Philippines


Municipality of ______________
Province of __________________
Barangay ____________________

CERTIFICATION
THIS IS TO CERTIFY that ________________________________ and
(Name of Brgy. Chairman)
_________________________________ assure the KALAHI-CIDSS Project
(Name of BSPMC Chairman)
that we will provide in-kind equity in the form of materials for our proposed sub-
project , __________________________________________.
(Name of sub-project)

Description of the Quantity Prevailing Unit Estimated Cost


materials Price

Total Estimated Cost P

ISSUED on this _______ day of _________________, 200__.

__________________________ ___________________________
Signature of BSPMC Chairperson Signature of Brgy.Chairperson

Attested: As to the prevailing unit Concurred by:


price in the area.

__________________________ ___________________________
Municipal Engineer Deputy Area Coordinator
BSPMC Form No. 14

Republic of the Philippines


Municipality of ____________
Province of __________________
Barangay ____________________

CERTIFICATION
THIS IS TO CERTIFY that ________________________________ and
(Name of the Municipality)
_________________________________ assure the KALAHI-CIDSS Project
(Name of BSPMC Chairman)
that we will provide in-kind equity in the form of equipment for our proposed
sub-project , __________________________________________.
(Name of sub-project)

Description of the No. of Prevailing No. of days Estimated Cost


Equipment Unit Rental Rate committed

Total Estimated Cost P

ISSUED on this _______ day of _________________, 200__.

__________________________ ___________________________
Name & Signature of Mun. Mayor Signature of BSPMC Chairperson

Attested: As to the prevailing rental Concurred by:


rates in the area.

__________________________ ___________________________
Municipal Engineer Deputy Area Coordinator
BSPMC Form No. 15

KALAHI-CIDSS PROJECT

TIME SHEET

Month ______ Year ______ NAME _____________ DESIGNATION____________

Total Work Work


Hrs. Accomplishment/Activity Location
Day 1
2
3
4
5
6
7
8 Rate/Day or
Rate/Month P
9 _________
10 X
11
12 Total No. of
Days worked
13 _________
14 =
15
16 Total Amount
17 of compensation ________
18
19
20
21
22
23
24
25
26
27
28
29 I HEREBY CERTIFY that the
time report above is a true
30 and
31 complete statement of my
Total Hours
working time for this period.

Approved by:

BSPMC Chairperson Name of Committee/Team Member


Date Date
BSPMCFormNo.16

CONSTRUCTIONLOGBOOK
Nameofsubproject:___________________________________________________________________
PhysicalTarget:__________________________TotalApprovedCost:__________________________
Location:_____________________________________________________________________________

Date:___________________Day:__________________Weather:_______________________

LaborForceAvailable:
SkilledMen:Foreman_____________ UnskilledMen :_______________
Carpenter_____________ UnskilledWomen:________________
Mason_____________ SkilledWomen(Specify):__________
Plumber_____________
Welder _____________
H.E.Operator____________
L.E.Operator____________

Equipment/Toolspresentatsite:(specifyandnumber)
___________________ ____________________ ____________________
___________________ ____________________ ____________________
___________________ ____________________ ____________________

Activitiesundertaken:
Output/softheday
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________

Problemsencountered&actiontaken:
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________

BSPMC/ProjectStaff/Visitors:
___________________ ____________________ _____________________
___________________ ____________________ _____________________
___________________ ____________________ _____________________
___________________ ____________________ _____________________

Comments/Observations/Recommendations:
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________
______________________________________________ __________________________
BSPMC Form No. 17

BARANGAY SUB-PROJECT WORK SCHEDULE & PHYSICAL PROGRESS REPORT


For the Month of __________________, 20____

Name of Sub-project: ___________________________________ Total Sub-Project Cost:_______________________ Labor Ave.


Total No. of Days
Physical Target: _____________________________ Direct Cost: Generated Rate/Day
Region: __________________________________ Indirect cost: Male
Skilled
Province : __________________________________ Date Started:________________________________ Female
Municipality : _______________________________ Target Completion Date: ______________________ Male
Unskilled
Barangay: __________________________________ Mode of Implementation: Female
TOTAL

I. To be filled up by MCT-Deputy Area Coordinator


WEIGHT Physical Previous DURATION
ITEM No. DESCRIPTION QTY UNIT AMOUNT
(%) Target Cumm. Month 1 Month 2 Month 3 Month 4
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

II To be filled up by MCT-Deputy Area Coordinator


PERIODIC
% PROGRESS (PLANNED)
CUMULATIVE
PHYSICAL
PERIODIC
% PROGRESS (ACTUAL)
CUMULATIVE

III. Major Issues Encountered: IV. Recommendations

Prepared by: Concurred by: Reviewed and checked by:

_____________________________________
MCT-Deputy Area Coordinator and/or Service Provider Proj. Implementation Team and MIT Leaders ACT - Deputy Area Coordinator

Approved by: Noted:

____________________________
BSPMC Chairperson Municipal Engineer Regional Infrastructure Engineer

Note: Attach Material Records Sheet if physical accomplishment lags behind financial disbursements.
BSPMC FORM NO. 17-A
Monthly Physical Progress Report (Non-Infrastructure Sub-Project)
For the Period from ______________ to ____________________

Region Municipality
Province Barangay Sub-Project ID No.
Sub-Project

Accomplishment
Work
Sub-Project Component Unit/Performance
Target (No. For the Remarks
Activities Indicator As of Previous Percent of
of Units) Current Total
Period Work Target
Period

Contents of this column


should be taken from the
Approved detailed Sub-
Project Proposal

Prepared by: Verified by: Approved by:

Head, Sub-Project Implementation Team Head, Monitoring & Inspection Team BSPMC Chairperson Area Coordinator
BSPMC Form No. 18

ACTUAL COMMUNITY PROCUREMENT PACKAGING

Date Prepared: ____________________


Barangay: _____________ Name of proposed subproject:_______________
Municipality :__________ Total Estimated Cost:______________________ KC Cost:______________
Province:_____________ Subproject Duration:______________________ LCC: _________________
In-kind : ___________
Cash: _____________

Estimated Cost: 1st Tranche ______________ 2nd Tranche ______________ 3rd Trance _______________

Mode of Implementation: CFA BY CONTRACT

PROPOSED
PACKAGES

ESTIMATED COST INVOLVED AND SCHEDULE OF DELIVERY IMPLEMENTATION


PACKAGE PROC. SCHEDULE
QTY. UNIT TOTAL
ITEMS METHOD st
1 Tranche
nd
2 Tranche
rd
3 Tranche Total MONTH
LCC- LCC- LCC- LCC-
Grant Grant Grant Grant 1 2 3 4 5 6 7 8
Cash Cash Cash Cash
Package 1
Package 2

TOTAL

Workshop output of: Reviewed by: Submitted by:

____________________ _________________________ ____________________


Procurement Team Head DAC/Municipal Engineer BSPMC Chairperson
BSPMC Form No. 19

KALAHI-CIDSS PROJECT

TECHNICAL ASSISTANCE FUND JOURNAL


BARANGAY __________________
MUNICIPALITY _________________
PROVINCE _________________

BANK ACCOUNT NO. _______________________


Cash Receipts Cash Disbursements
Date DV No. Payee Particulars Office Communi Balance
Grants LCC Sub-Total Travel Materials Others Sub-Total
Supplies cation

Write Write
Source other
of cash expense
contri. items

TOTAL
BSPMC Form No. 20

KALAHI-CIDSS PROJECT

Republic of the Philippines


Province of ______________
Municipality ______________
Barangay _______________

ACKNOWLEDGMENT RECEIPT

AR# __________
Date __________

Please acknowledge receipt in the amount of ____________________________


_________________________________________________ (P ____________)
Received from ____________________________________________________
For the purpose of _________________________________________________
________________________________________________________________
________________________________________________________________

Cash/Check No. : _____________


Date : _____________
Amount : _____________

Prepared by: : _________________________


(Signature Over Printed Name)

Received by : _________________________
(Signature Over Printed Name)

Date/Time Received: _________________________


BSPMC Form No. 21.
Technical Assistance Eligibility Checklist
(For Use of Area Coordinator or Deputy Area Coordinator)

BARANGAY _____________________
MUNICIPLAITY ___________________
PROVINCE _______________________

Please check appropriate box:

YES NO
1. Is there a resolution passed by the Barangay Assembly for the availment
of TAF?

2. Does the project fall under technically specialized subprojects as indicated


in Items 3.2 and 4.1 of KALAHI-CIDSS Operations and Finance Joint
Guideline
No. 1?
Please indicate project type _____________________________

3. Is the expertise not available in the community or in the cluster of


Communities?

4. Is the technical assistance beyond the capacity of the existing Project and
Municipal staff?

5. Is there already an organized Project Preparation Team?

6. Is the community or the cluster of communities willing to open a current


bank account and provide initial deposit of P1,000.00 as Local Community
Contribution?

Date ______________________

MEMORANDUM

For : The Regional Project Manager


KALAHI-CIDSS Project

FROM : The Area Coordinating Team

SUBJECT : Technical Assistance Fund for Barangay ___________

In compliance with the provisions of KCKKB Operations and Finance Joint Guideline No. 1,
we have reviewed/validated the identified project of Barangay (or Cluster of Barangays, as
the case may be) _________________ to determine their eligibility to the 3% Technical
Assistance Fund (TAF) and have found that on the basis of the above information, Barangay
(or cluster) ________________ is eligible to avail of said Technical Assistance Fund.

I certify further that all the information supplied herein are true and correct to the best of my
knowledge.

Signed: Area Coordinator or Deputy Area Coordinator


BSPMC Form No. 22
KALAHI-CIDSS PROJECT
Barangay ___________________________
Municipality ________________________
Province __________________________

CASH COUNT SHEET

Date of Cash Count: _______________________

Beginning Balance xxxx


Less: Espenses
Date PCV No. Particulars Amount
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx

Total Expenses xxxx


Ending Balance xxxx

Cash Count
Denomination No. of Pieces Amount
P1,000
'500
'200
'100
'50
'20
'10
'5
'0.25
'0.10
'0.05
Total

Cash Count conducted by: In the presence of:

____________________________ _________________
Audit & Inventory Committee Head Barangay Treasurer
ANNEX4

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

REGIONAL CONSOLIDATED STATUS OF SUBPROJECT FUND UTILIZATION REPORT


FOR THE QUARTER ____________

REGION: TOTAL PLANNED: TOTAL ACTUAL:


CASH: CASH:
INKIND: INKIND:

UTILIZATION
NO. OF TOTAL PROJECT COST
MUNICIPALITY APPROVED GRANTS LCC BALANCE
CUMULATIVE
SUBPROJECT PREVIOUS PREVIOUS TOTAL
KC GRANT LCC TOTAL THIS MONTH TOTAL THIS MONTH TOTAL
MONTH MONTH
a b c d e (c+d) f g h (f+g) i j k (i+j) l(h+j) m (e-l)

Prepared By: Certified Correct: Noted by:

Financial Analyst Regional Financial Analyst DSWD-Regional Director/ARD

Sources:
Status of Subproject Fund Utilization Report (Annex 11)
Municipal Consolidated Status of Subproject Fund Utilization Report (Annex 6)
ANNEX 5

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT
FIELD OFFICE ___

REGIONAL CONSOLIDATED STATUS OF LOCAL COUNTERPART CONTRIBUTION


FOR THE QUARTER _________

PLGU MLGU BLGU COMMUNITY/OTHERS TOTAL


ACTIVITIES
Planned Actual Balance Planned Actual Balance Planned Actual Balance Planned Actual Balance Planned Actual Balance
CEAC:
Social Preparation
Project Identification/Selection
Project Approval
Technical Trainings for Volunteers
Implementation Support
Monitoring and Evaluation
MIAC Meetings
CBIS:
Trainings
Personnel Services
Admin Cost
M&E
Sub-Total
SPI
Sub-Total
TOTAL

Prepared By: Certified Correct: Noted by:

Financial Analyst Regional Financial Analyst DSWD-Regional Director/ARD

Sources:
LCC Delivery Plan
Subproject Fund Utilization Report (Annex 11)
Municipal LCC Journal for CBIS (Annex 8)
Municipal LCC (Annex 7)
ANNEX6

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

MUNICIPAL CONSOLIDATED STATUS OF SUBPROJECT FUND UTILIZATION REPORT


AS OF ____________

REGION: TOTAL PLANNED: TOTAL ACTUAL:


PROVINCE: CASH: CASH:
MUNICIPALITY: INKIND: INKIND:

UTILIZATION
TOTAL PROJECT COST
SUBPROJECT GRANTS LCC
BARANGAY CUMULATIVE BALANCE
TITLE PREVIOUS PREVIOUS
KC GRANT LCC TOTAL THIS MONTH TOTAL THIS MONTH TOTAL TOTAL
MONTH MONTH
a b c d e (c+d) f g h (f+g) i j k (i+j) l(h+j) m (e-l)

Prepared By: Reviewed by: Certified Correct: Noted by:

Financial Analyst Municipal Accountant Regional Financial Analyst DSWD-Regional Director/ARD

Source: Subproject Fund Utilization Report (Annex 11)


ANNEX7

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

MUNICIPAL CONSOLIDATED STATUS OF LOCAL COUNTERPART CONTRIBUTION


AS OF ____________

PROVINCE: KC GRANT: TOTAL PLANNED: TOTAL ACTUAL:


MUNICIPALITY: LCC: CASH: CASH:
No. of Barangays: INKIND: INKIND:

MLGU BLGU OTHERS (see attached sheet) TOTAL


CATEGORY ACTIVITIES Planned Actual Balance Planned Actual Balance Planned Actual Balance Planned Actual Balance
CBIS CEAC:
Social Preparation
Project Identification/Selection
Project Approval
Technical Trainings for Volunteers
Implementation Support
Monitoring and Evaluation
MIAC Meetings
Trainings
Personnel Services
Admin Cost
Sub-Total
M&E Monitoring and Evaluation
Sub-Total
SPI Subproject Implementation
Sub-Total
TOTAL

PREPARED BY: APPROVED BY: REVIEWED BY: NOTED BY:

MUNICIPAL ACCOUNTANT MUNICIPAL MAYOR REGIONAL FINANCIAL ANALYST DSWD- RD/RPM

Sources: LCC Delivery Plan


Subproject Fund Utilization Report (Annex 11)
Municipal LCC Journal for CBIS (Annex 8)
ANNEX 8
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT

MUNICIPAL LOCAL COUNTERPART CONTRIBUTION JOURNAL


for CAPABILITY BUILDING AND IMPLEMENTATION SUPPORT
For the Month of ____________________

MUNICIPALITY:

DATE VLCC NO. DONOR PARTICULARS AMOUNT

Source: Vouchers for Local Counter Contribution for CBIS


ANNEX 9

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

LIST OF CHECKS ISSUED


For the Period ___________________

Region: Municipality:
Province: Barangay:

Check Fund
Date Payee Particulars Amount Remarks
Number Source

*submittedtoCOA,
FOorstillatthe
Community

RECAPITULATION: FUNDS UTILIZED


PARTICULARS GRANT LCC TOTAL
Preparedby: Approvedby: MATERIALS
LABOR
EQUIPT
____________________________ ___________________________ Supplies
BarangayTreasurer BSPMCChairperson Indirect Cost
Total
ANNEX 10-A
(First Tranche)

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET

Region: Barangay:
Province: Sub-Project Title:
Municipality: Date:

DOCUMENT REVIEWER REVIEWED DATE REMARKS SIGNATURE


RPMO level
Barangay Council Resolutions

Sub-project Agreement

Local Counterpart Contribution Plan

Certifications on local contributions

Bond Premium of Treasurer


Notarized Deed of Lot Donation for titled lot or
Quit Claim for non-titled lots

Hydraulic Analysis for water system Sub-project

Proposals/Feasibility Study for Public Good


Sub-projects

NPMO level
Request for Fund Release

MIBF Resolution

SP proposal for Enterprise and HRD subprojects

Program of Works following the prescribed cost


sharing and with detailed estimates (with
signature of Municipal Mayor and Barangay
Captain to conform LCC commitments)

Planned Community Procurement Packaging


with Schedule of In-kind LCC

LCC for SPI Monitoring Report

Procurement Action Plan

Bank Certification indicating the community


current account number or Bank
Statement/Snapshot

Certificate of Review by the RCIS, RFA and


CPS

Photographs of the proposed site (at least


three). For water system, source, reservoir and
pipeline right-of-way; roads, photo covering
starting stations projected towards the mid-
section or the whole road right-of-way, if
possible and photo projected from the end
station towards mid-sections

(For succeeding cycles) Certification from the


Regional Director that the following financial
requirements pertaining to the implementation of
previous Sub-projects were duly complied with:
a) all Disbursement Vouchers together with the
supporting documents have been duly
submitted, b) Established Petty Cash Fund fully
liquidated and c) Community funds fully utilized
and/or community bank accounts duly closed.

Operation and Maintenance Action Plan


ANNEX 10-B
(Second Tranche)

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET

Region: Barangay:
Province: Sub-Project Title:
Municipality: Date:

DOCUMENT REVIEWER REVIEWED DATE REMARKS SIGNATURE


RPMO level
Narrative Report (if there is a big variance in
physical & financial accomplishment)
Actual Community Procurement Packaging

Minutes of Barangay Assembly Meeting

Photographs of Sub-project progress

Registered Deed of Lot Donation for titles lots

NPMO level
Request for Fund Release

Status of Sub-project Fund Utilization Report

List of Checks Issued (Annex 9)

LCC for SPI Monitoring Report


Physical Progress Report signed by the Municipal
Engineer and the DAC and Regional Community
Infrastructure Specialist
Bank Statement/Snapshot

Operation and Maintenance Final Plan with


notarized Mutual Partnership Agreement

Certification from the Regional Director that the


requirement of monthly submission of all DVs as of
immediately preceding month to the FO/COA, has
been fully complied with
ANNEX 10-C
(Third Tranche)

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET

Region: Barangay:
Province: Sub-Project Title:
Municipality: Date:

DOCUMENT REVIEWER REVIEWED DATE REMARKS SIGNATURE


RPMO level
Narrative Report (if there is a big variance in
physical & financial accomplishment)
Actual Community Procurement Packaging

Minutes of Barangay Assembly Meeting

Photographs of Sub-project progress

Proof of pending financial obligations e.g. Delivery


Receipts, Billings as attachment to Certification

NPMO level
Request for Fund Release

Status of Sub-project Fund Utilization Report

List of Checks Issued (Annex 9)

LCC for SPI Monitoring Report


Physical Progress Report signed by the Municipal
Engineer and the DAC and Regional Community
Infrastructure Specialist
Bank Statement/Snapshot

Certification indicating the total cost of remaining


materials to be procured and total cost of labor and
other related expenditures to be incurred to
complete the Sub-project signed by the Chairs of
the PT and the BSPMC and noted by the DAC

Certification of any pending financial obligations


e.g. unpaid delivered materials, services rendered
but not yet paid (wages/ payroll) and other incurred
but unpaid related expenditures signed by the
Treasurer, BSPMC Chair and noted by the DAC

Barangay Assembly resolutions confirming the


certifications

Joint Inspection Report


Certification from the Regional Director that the
requirement of monthly submission of all DVs as of
immediately preceding month to the FO/COA has
been fully complied with
ANNEX 10-D
(Technical Assistance Fund)

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET

Region: Barangay:
Province: Sub-Project Title:
Municipality: Date:

DOCUMENT REVIEWER REVIEWED DATE REMARKS SIGNATURE


Request for Fund Release
MIBF Resolution availing of the TAF for their
prioritized sub-projects

MIBF Resolution that designates a representative


barangay who shall be the contracting party of the
service provider/s to be engaged (for clustered
barangays

Bank Certification indicating the community current


account number or Bank Statement/Snapshot

Bond Premium of Treasurer


Copy of notarized contract of service provider,
TOR specifying the expected deliverables, time of
submission and mode of payments

Matrix of barangays availing of the TAF with the


sub-project type and the name of corresponding
service providerr

Accomplished TAF Eligibility Checklist for each


barangay availing of the TAF
ANNEX 11
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT

STATUS OF SUBPROJECT FUND UTILIZATION


For the period ____________________
Barangay:
Municipality:
Province:
Name of Subproject:

GRANT FUNDS LOCAL COUNTERPART CONTRIBUTION


TOTAL DVs Submitted to COA
PARTICULARS LP Cash In-kind Total

a b c d (b+c) e (a+b) DV No. Amount

Cash Balance, Beginning

Add: Funds Received during this Period

KC Grant Tranche

PLGU

MLGU

BLGU

Community/Others

Total Funds Available

Less: Expenses incurred during this Period

Materials

Labor

Equipment

Lot

Contract of Works

Freight and Handling

Material Testing

Supervision

Pre-Engineering

Bond Premium

Administrative Expenses

Others (please specify)

Total Expenses for the Period


Cash Balance, End

Prepared by: Approved by: Reviewed by:

Community Bookkeeper BSPMC Chairperson Audit & Inventory Committee Head

Certified Correct by: Noted by:

Regional Financial Analyst Regional Project Director/Manager

Sources: Cash Book (Annex 12)


LCC Journal (Annex 13)
ANNEX12

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

CASH BOOK

Barangay:
Municipality:
Province:
Name of Subproject:
Bank Account No.
CASH IN (RECEIVED) CASH OUT (PAYMENT)
PARTICUL GRANTS LCC FUND DIRECT COST INDRECT COST CUM
DATE REF ARS AMOUNT (LP) (Cash) AMOUNT SOURCE MATERIALS LABOR EQPT SUPPLIES TRAVEL OTHERS BALANCE

Sources: Cash Receipts - Notice of fund Transfer


Deposit Slip of Local Cash Contributions/Acknowledgement Receipts RECAPITULATION: FUNDS UTILIZED
PARTICULARS GRANT LCC TOTAL
Payments - Disbursement Vouchers MATERIALS
LABOR
EQUIPT
Supplies
Indirect Cost
Total
ANNEX 13

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT


KALAHI-CIDSS PROJECT

LOCAL COUNTERPART IN-KIND CONTRIBUTION JOURNAL


Barangay:
Municipality:
Province:
Name of Subproject:

DIRECT COSTS INDIRECT COST


DATE DONOR PARTICULARS MATERIALS EQPT LABOR SUPPLIES TRAVEL OTHERS (Specify) TOTAL

TOTAL

Source: Vouchers for Local Counterpart Contribution for SPI