DSWD Administrative Order No. 11-06 Amendment to the Guidelines in Reporting Donations and Resources Generated and Utilized

December 22, 2006

DSWD ADMINISTRATIVE ORDER NO. 11-06

AMENDMENT TO THE GUIDELINES IN REPORTING DONATIONS AND RESOURCES GENERATED AND UTILIZED

I. INTRODUCTION

The Department of Social Welfare and Development (DSWD) by virtue of Executive Order 15 series of 1998 and Executive Order 221 series of 2003 embarks on its major functional shift from rowing to steering. In line with its steering functions are the resource generation efforts of the Department, to assist its partner stakeholders such as Local Government Units (LGUs), Non-Government Organizations (NGOs) and People Organizations (POs) to access additional funding for their respective social welfare and development projects. These projects are accessed by the Department to various donors both local and foreign and are assisted in a form of cash and in-kind directly benefiting the poor and vulnerable groups as well as the service providers. The Department acknowledges all these contributions from the different sources such as multilateral, bilateral and civil society groups and other individual donors, and is duty bound to ensure that all these have reached their intended beneficiaries and implemented in an effective and efficient manner.

The Department recognizing the need to fully account for the resources generated and/or received both at the Field Offices and at the Central Office has issued Administrative Order 76 series of 2003 entitled, "Guidelines in Reporting Donations and Resource Generated" and Memorandum Circular No. 9, series of 2006: Procedural Guidelines on the Receipt and Utilization of Donations in Cash and in-Kind. The Department is hereby promulgating this amended Guidelines to harmonize the two issuances in Reporting Donations and Resources Generated and Utilized.

II. LEGAL BASES

A. Republic Act 9206 — General Appropriations Act of 2003

Section 12 of Republic Act 9206 states that "Departments, bureaus, offices or agencies may accept donations, contributions, grants, bequests, or gifts, in cash or in kind, from various sources, domestic or foreign, for purposes relevant to their functions.

PROVIDED, that in cases of donations from foreign governments, acceptance thereof shall be subject to the prior clearance and approval of the President of the Philippines upon recommendation of the Secretary of the Department of Foreign Affairs".

Receipts from donations shall be accounted for in the books of the recipient government agency in accordance with pertinent accounting and auditing rules and regulations. Such donations, whether in cash or in kind shall be deemed automatically appropriated for purposes specified by the Donor. The receipts from cash donations and proceeds from sale of donated commodities shall be remitted to the National Treasury and recorded as Special Account in the General Fund and shall be available to the implementing concerned through a Special Budget pursuant to Section 35, Chapter 5, Book VI of E.O. 292. The agency concerned shall submit to the Department of Budget and Management (DBM), the Senate Committee on Finance, the House Committee of Appropriations and to the Commission on Audit (COA) a quarterly report of all donations whether in cash or in kind, and a quarterly report of expenditures or disbursements of the amount released. CSTDIE

In case of violation of this Section, the erring officials and employees shall be subject to disciplinary action under the provisions of Section 43, Chapter 5, and Section 80, Chapter 7, Book VI of E.O. 292 and to appropriate criminal action under existing penal laws.

B. DSWD Administrative Order 53 Series of 2003-Omnibus Guidelines in the Management and Processing of Donations

Administrative Order No. 53 Series of 2003 provides for the strict regulation and monitoring of donations of imported articles to duly registered relief organization to ensure that these articles shall be received exclusively and entirely by the intended beneficiaries, and that these articles will not find their way in the open market for sale, so as not to jeopardize our economy.

C. Memorandum Circular No. 09, Series of 2006

ARTICLE 6.5.1. Recording and Reporting of Donations of the MC No. 9, s. 2006 stated as: "the receipt, deposit and utilization of grants and donations, in cash or in kind, shall be recorded in the Regular Agency Books. The account Income from Grants and Donations is used to record the receipt of cash donations deposited to Authorized Government Depository Bank (AGDB) and donations in kind."

III. OBJECTIVES

1. To establish a supplemental reporting system of resources generated by the Department.

2. To ensure that donations and funding assistance given by the Donor Agencies for social welfare and development projects were accounted for and has reached the targeted beneficiaries.

3. To promote accountability for resources generated.

IV. COVERAGE, EXCLUSION and APPLICABILITY

A. Coverage and Applicability of the Report

The report shall cover all donations and resources generated within and through the DSWD whether in cash or in-kind, including for and in its centers and institutions, for disaster operations and social welfare and development projects of the Department's Field Offices, Bureau/Office/Units except those listed in B. Exclusion.

B. Exclusion

The following are excluded from being reported as donations and/or as resources generated and the receipt and remittance of such are governed by existing rules and regulations:

1. Funding support to centers and institutions for the Regional Rehabilitation Center for the Youth (RRCY) which is part of the Local Government Units (LGUs) contribution for the clientele secured in the centers per RA 9344.

2. LGU counterpart to special projects, e.g. Emergency Operation-Conflict Assisted Mindanao, both in cash and in-kind which is part of the project design and is governed by the special project's Letter of Understanding (LOU). TCIHSa

3. Priority Development Assistance Funds (PDAF) sub-alloted by the Central Office to the Field Offices which is covered by the DSWD MC No. 12, s. 2004 entitled, "Guidelines on the Management and Utilization of PDAF".

4. Receipt by the Field Office of donations in cash and in-kind from Grants and Donations account such as Poder Y Prosperidad del Communidad (PODER) as indicated in the project's Memorandum of Agreement (MOA).

5. Service fees collected by the Agency such as travel clearance fees, solicitation permit fees and the like which is guided by DSWD AO No. 11, s. 2004 entitled, "Guidelines on the Collection and Deposits of Income/Receipts from all Sources".

6. Resources/donations received in the form of service such as the services of Peace Corps volunteers as governed by the MOA and interns under the Government Internship Program as guided by Department Order No. 12, s. 1996.

V. General Guidelines

1. The Resource Generation report format attached as Annex A is prescribed to all Offices/Bureaus/Services/Units of the Department. This shall be properly accomplished following the fill-up instructions attached as Annex B.

2. In instances of donations in-kind, it is expected that the reporting format as indicated in the Administrative Order 53, series of 2003 requiring monetization and valuation processes be observed strictly prior to filling-up of the required Resource Generated format.

VI. Delineation of Roles

A. Policy Development and Planning Bureau

1. To generate and analyze semestral reports on accessed social welfare and development projects both for DSWD and partner stakeholders such as LGUs, NGOs and POs by the Field Offices/Bureaus/Offices/Units of the Department through the attached resource generation format as Annex A.

2. To consolidate the data gathered through the reporting matrix as indicated in Annex A and the generated data by the Financial Management Service (FMS).

3. To draft an annual report on the donations and resources generated using the data gathered as reference to identify which sectors are prioritised by donor agencies, thus, use it as basis in planning/strategizing the resource generation efforts of the Department.

B. Financial Management Service (FMS)

1. To generate semestral financial reports on donations for centers and institutions and for disaster operations from the Field Offices through the MC 9, series of 2006 with information on the details of the donations to include its purpose as well as the donor, etc. HECaTD

2. To verify and certify as to the correctness and completeness of the Report on all donations submitted by the Field Offices and OBSUs in the Central Office.

3. To forward to PDPB the consolidated report on donations received as reference for the overall consolidation.

C. Field Office

1. To designate the AHON Bayan Focal person to prepare the semestral report on accessed social welfare and development projects using the Annex A format and ensuring its submission on or before 31 July and 31 January of the succeeding year.

2. To designate a Staff to prepare the semestral report on donations and ensure its submission to FMS on or before 31 July and 31 January of the succeeding year.

3. To verify and certify as to the correctness and completeness of the Report on Resources Generated to ensure that the resources reported are properly recorded in the books of accounts or vice versa and shall submit the same to the Central Office — FMS on or before the 20th of the month following the reported semester.

VII. Effectivity

This order shall take effect immediately and supercedes previous issuances inconsistent herewith.

Issued in Quezon City this 22nd day of December 2006.

(SGD.) ESPERANZA I. CABRALSecretary

Report on Resources Generated

Fill-up Instruction for Guidance of the Field Offices and other Central Offices/Bureaus/Services/Units required to accomplish the format as used on the Annex A of this guidelines

1. Column 1: Sources. Refers to the group or type of donor who have provided donations whether in cash and in-kind. These sources are already defined as follows for your guidance:

1.1. Multilateral Agencies — multi-groups of foreign/international agency either owned or controlled by member government but do not possess any national identity extending credit or loan.

1.2. Bilateral Agencies — single foreign government extending credit or loan to other government.

1.3. Local Donors — categorized into different possible sources such as corporate foundations, civil society groups, other civic religious organization and private individual donors such as persons not affiliated with any agency/organization and anonymous donors extending assistance either in cash and in kind to social welfare and development projects.

2. Column 2: Donor. Indicate the complete name/s of the Donor.

3. Column 3. User. The specific name of the DSWD Office or partner stakeholders (to specify the name of the LGU, NGO or PO) which benefit and or manage the resources given.

4. Column 4: Project/Activity/Title. Put the title of the Project/Activity wherein the donation has been specified for.

5. Column 5: Beneficiaries. The particular group of clients or sector being catered by the DSWD or by the partner stakeholder through the project specified in column 4 such as children, women older persons, etc.

6. Column 6. This is under the bigger column covering the type of resources generated and its monetized value. Cash. Put the specific peso value amount of assistance or contribution from the donor entity/individual which is intended for the project indicated in column 4.

7. Column 7: Particulars of In-kind Donations. Refers to the assistance of contribution from the donor entity/individual to the National Government in the form of in-kind assistance. Please indicate whether these are goods, supplies, materials and equipment with quantity and unit of measurement.

8. Column 8: Monetized value. Refers to the monetary value of the resources in kind.

9. Column 9: Total Value. The sum of column 6, 7 & 8.

10. Column 10: Remarks. Significant explanation must be reflected in this column. aECTcA

11. The report must be duly prepared and signed by the AHON Bayan Focal Person, reviewed by the Chief of the Accounting Division and noted by the Field/Bureau Director.