Guidelines on Evaluation/Accreditation Fund Release to DA Accredited NGOs/POs/PDAFs for Agricultural Programs and Projects

July 10, 2012

DA ADMINISTRATIVE ORDER NO. 23-12

 

WHEREAS, Article II, Sec. 23 of the 1987 Philippine Constitution provides that the "State shall encourage non-government, community-based or sectoral organizations that promote the welfare of the nation"; SDTIHA

WHEREAS, the Department of Agriculture recognizes the valuable assistance of NGOs/POs to the Department's mandates and programs, acknowledges NGOs/POs expertise and technical capability needed by the Department to guarantee success in the implementation of such programs and projects with the community;

WHEREAS, the Department of Agriculture is committed to promote transparency and accountability in the exercise of its functions.

NOW, THEREFORE, I, PROCESO J. ALCALA, Secretary of the Department of Agriculture do hereby issue the following guidelines that shall govern DA agencies including Bureaus, Attached Agencies and Corporations and Regional Field Units in entering into a Memorandum of Agreement (MOA) with NGOs/POs.

ARTICLE I

Objectives, Definition of Terms and Coverage

SECTION 1. Objectives. — The objectives of the evaluation, fund release to, and monitoring of projects are as follows:

a. To encourage people's participation in agricultural development;

b. To ensure genuine NGOs/POs participation in DA projects and programs;

c. To promote transparency and accountability;

d. To ensure effective evaluation, implementation and monitoring of projects; and

e. To reconcile reported progress and attainments of projects with field realities. DcTaEH

SECTION 2. Definition of Terms. — The following terms as used in this Order are hereby defined as follows:

1. Accreditation — refers to the process of identifying and screening NGOs/POs for purposes of classifying and categorizing according to area of operation, target clientele, field of expertise and complementary of programs with that of DA.

2. Agriculture — covers programs and projects on crops, fisheries & livestock.

3. Department or DA — refers to the Department of Agriculture, Bureaus, RFUs, attached agencies and corporations.

4. DA Project Coordinator — refers to the DA official assigned to head the Partnership Project Unit, coordinate and monitor implementation of projects covered under this Order.

5. Integrity — refers to NGOs/POs not having any convictions, pending case or blatant negative reputation as an organization, whether criminal, civil or administrative, including its Board of Directors, Trustees and key officers.

6. NGO — refers to a non-profit/non-stock and voluntary organizations that is committed to the task of socio-economic development and established primarily for service. Such service may involve assisting citizens or people's organizations in various ways by educating, training, or giving financial assistance to them. Cooperatives shall be considered as NGOs for purposes of this definition.

7. PDAF — Priority Development Assistance Fund.

8. PO — refers to independent community and/or class based non-profit/non-stock association established to protect and advance the interest of specific causes or sector, e.g.,labor, farmer, fishermen, women, civic organization, marginal groups & other related associations. TcHCIS

9. Secretary — refers to the Secretary of the DA.

10. Technical Capability — refers to the ability in handling agriculture and socially-oriented programs using scientifically-based, appropriate technology.

11. Track Record — refers to the actual status of activities/projects undertaken by the concerned NGOs/POs involving agriculture related issues.

SECTION 3. Coverage. — This order covers the following processes, support service programs/projects of the Department that shall be implemented in partnership with DA-accredited NGOs/POs.

3.1 List of Eligible NGOs/POs:

a. Civic Organization

b. Academe-based NGO

c. Private Foundation

d. People's Organization

e. Religious Organization

f. Alliances/Networks/Federation of NGOs/POs

g. Development-oriented NGOs/POs

h. DA Programs-induced NGOs/POs

i. Cooperatives

j. Government-organized NGOs/POs

k. Others

3.2 This guideline covers the following processes:

a. Accreditation cIADTC

b. Project proposal evaluation

c. Fund Releases

d. Monitoring

e. Assessment

3.3 In particular, these guidelines cover planning, implementation, monitoring & evaluation of the following major activities:

1. Research and development;

2. Extension;

3. Regulation;

4. Policy Formulation and

5. Livelihood Projects

3.4 Forms of assistance range from manpower, technical and financial including provisions of materials and equipment depending upon the resources committed by NGOs/POs.

ARTICLE II

Accreditation for Selection of NGOs/POs

SECTION 4. Accreditation Criteria. — In order to select NGOs/POs which can best address the most pressing needs of DA, the following accreditation criteria are hereby set:

a. Known to be with integrity and commitment to agriculture related issues

b. Reputable and socially acceptable to the concerned and/or affected stakeholders/community STHDAc

c. Locally-based and with adequate basic resources (i.e.,manpower, equipment, etc.)

d. With technical capability and

e. With proven track record

SECTION 5. National Accreditation Committee (NAEC),Regional, Bureaus, Attached Agencies and Corporations Accreditation and Evaluation Committee. — There is hereby constituted and Accreditation and Evaluation Committee (AEC) at the National, Regional, Bureau, Attached Agencies & Corporation which is tasked to accredit NGOs/POs and evaluate project proposals. The AEC shall be composed of the following:

1. Legal/Administrative

2. Finance

3. Technical

4. Policy/Planning

The BAC secretariat shall serve as the AEC secretariat.

SECTION 6. Documentary Requirements for Accreditation. — The NGOs/POs shall submit the following requirements:

1. Certificate of good standing from any of the following:

a. Chief, Local Government Unit;

b. Head of local religious organizations as the case may be.

2. Accomplishes NGOs/POs data sheet with Organizational Set-up;

3. Securities and Exchange Commission (SEC),Cooperative Development Authority (CDA) Registration; Certificate of good standing from SEC or CDA; IEcaHS

4. Authenticated copy of the latest Articles of Incorporation, or Articles of Cooperation;

5. Audited financial statements for the past three (3) years. For NGOs/POs which have been in operation for less than three (3) years, report of accomplishment or any equivalent proof certified by its President and Secretary that it had previously implemented similar projects;

6. List of community activities and agriculture projects/programs undertaken;

7. Bio-data of key implementing staff with complete contact details.

SECTION 7. Processing of Accreditation Application. — The AEC and RNAEC shall process, validate and evaluate within two (2) weeks from the date of receipt of complete documentary requirements submitted by the NGOs/POs. Processing of applications shall also include background verification of NGOs/POs to ascertain their valid existence, and credibility of documents submitted.

SECTION 8. Accreditation's Duration of Effectivity. — The accreditation shall be effective and valid for a period of two (2) years; thereafter, the accredited NGOs/POs shall apply for renewal of its accreditation with the AEC.

SECTION 9. Masterlist of Accredited NGOs/POs. — A master list of accredited NGOs/POs shall be prepared and regularly updated by the AEC for dissemination to DA agencies OSEC, RFUs, Bureaus, Attached Agencies & Corporations.

ARTICLE III

Evaluation of Proposals

SECTION 10. Documentary Requirements. — The NGOs/POs applying for financial assistance shall submit a project proposal accompanied by the following requirements:

a. Certificate of Accreditation issued by the NAEC or concerned RNAEC; SDAcaT

b. Board Resolution requesting for funding assistance indicating total project cost, requested funding assistance and counterpart funding. Authorized representative who shall transact with DA for and its behalf shall also be identified;

c. Notarized certification from appropriate entities that the proponent had successfully implemented projects for the last three (3) years and/or is currently implementing successful projects (or that it has the institutional capability to implement projects);

d. Detailed list of projects previously undertaken and/or currently being undertaken (to include source of funding and status of implementation);

e. Certification from a Government Funding Institution that proponent is of good credit standing (no past due loan/record of property foreclosure),or its equivalent, if applicable and;

f. A sworn affidavit of the president or the Chief Executive Officer of the NGO/PO that none of its incorporators, organizers, directors or officials is an agent of or related by consanguinity or affinity up to the fourth civil degree to the officials authorized to process and/or approve the proposal, the MOA and the release of funds;

g. Audited financial statements for the 1st two (2) years of operation, if applicable;

h. Proof that the organization is professionally managed by a competent staff;

i. Endorsement or proof of project feasibility from any appropriate government office, if applicable.

PDAF project proponent shall also be required to submit the foregoing requirements. CSaIAc

SECTION 11. For the following specific projects the proponent shall submit the following additional requirements:

1. For agricultural production projects:

a. Fertilizer and Pesticide Authority (FPA) Certificate of Registration for the product;

b. FPA license for suppliers and dealers;

c. Bureau of Plant Industry (BPI) certification for seeds; and/or

d. BPI accreditation for suppliers and dealers.

2. For infrastructure projects:

a Copy of Deed of Donation or long-term lease agreement based on project life for the land to be used for the project, authenticated from the original copy of the document by the DA project Coordinator;

b. A notarized Board Resolution authorizing the use of the land for the project, if the proponent is the owner of the said land;

c. A verified Undertaking signed by the president and Treasurer of the NGO that it shall post a performance Security in the form of a surety bond, callable on demand, issued by the Government Service Insurance System or any insurance company duly accredited by the Insurance Commission in the amount equivalent to thirty (30%) of total fund assistance. If the project is not completed within ninety (90) days after the prescribed completion date, the bond shall be forfeited in favor of DA. AEHTIC

d. For fisheries and aquaculture projects:

a. Municipal permit or lease agreements; and/or

b. Permit from the Laguna Lake Development Authority and/or Bureau of Fisheries and Aquatic Resources.

SECTION 12. Processing of Proposal. — The proposal submitted by the NGOs/POs shall be processed following the procedure below:

12.1 For Project Proposals Directly Submitted to the Office of the Secretary (OSEC)

a. The DA-AEC shall review completeness of the project proposals and its attachments, together with the other documentary requirements submitted by the Proponent and evaluate the feasibility project within thirty (30) days upon submission of the complete requirements;

b. The DA-AEC may request inputs/comments from concerned DA offices on the Project Proposal as needed.

1.2.2 For Project Proposals Not Submitted Directly to the OSEC

a. The same review process shall be undertaken as to the completeness of the project proposal and its attachments;

b. Project Proposals involving financial assistance not exceeding 10M in each case shall be approved/disapproves by the delegated authority as prescribed in the appropriate General Memorandum Order.

 For those projects involving more than 10M, the same shall be forwarded to the DA-Secretary, through the DA-AEC, for approval/disapproval. acCTIS

12.3 NGO's/POs shall be notified immediately of evaluation result and shall be requested to submit the final Work and Financial Plan (WFP) based on the approved funds within one (1) month to the AEC.

12.4 Upon favorable action on the proposal, a Memorandum of Agreement (MOA) shall be prepared by the concerned DA Agency, and executed by and between the concerned DA Agency and the project proponent.

12.5 The approved project proposals and the corresponding WFP including MOA shall be endorsed to the concerned office for funding.

12.6 In the case of PDAF, the approved project proposal and the MOA shall be implemented by the DA concerned recipient of the PDAF fund.

SECTION 13. Terms and Conditions of the MOA. — The MOA shall embody the following:

1. Proposed name, objectives of the project, intended beneficiaries, benefits to be delivered, project cost estimates, a brief description of the project, its site/location and other relevant information;

2. Systems and procedures to implement the project, such as, but not limited to, the procurement of goods and services by the NGO/PO and their distribution which should be documented and coordinated through the appropriate DA appropriate agencies where the project is undertaken and the respective barangays;

3. Time schedules for the release of funds, periodic inspection/evaluation, reporting, monitoring requirements, date of commencement and date of completion; TIDaCE

4. Submission of the required periodic financial and physical status reports;

5. Specific period to liquidate the funds granted to the Proponent;

6. The amount of equity of the proponent to the projects which shall not be less than 20% of the total project cost, which may be in the form of labor, land for the project site, facilities, equipments and the like, to be used in the project;

7. In case of construction projects like buildings and other similar structures, and acquisition of assets like equipment, a stipulation of ownership of the structure or fixed asset. In the procurement of any type of asset out of government funds, the Proponent shall conduct a bidding in accordance with the Government Procurement Act (RA 9184);

8. In case the asset shall be owned by a specified beneficiary, a stipulation that a Deed of Donation shall be executed by the DA agency concerned;

9. Monitoring and inspection of project implementation and verification of financial records and reports of the Proponent by the DA agency concerned assigned for the purpose;

10. Maintenance by the Proponent of a separate savings account for each fund received from the DA agency concerned;

11. In case of the dissolution of the legal personality of the Proponent, voluntary or involuntary, the lien of the DA agency concerned on its assets, in accordance with existing laws, to the extent of the unexpended or unutilized portion of the fund; and

12. The return by the Proponent to the DA agency concerned of any amount not utilized to complete the project, including interest, if any. CDTSEI

ARTICLE IV

Disbursement of Funds

SECTION 14. Disbursement of Funds. — The funds to be utilized for the implementation of the project shall be directly released to the Proponent subject to the relevant provisions of government accounting and auditing, and the following schedule and requirements:

1. For projects worth P300,000.00 or less, the fund shall be released in full;

2. For projects worth more than P300,000.00, the fund shall be released in three tranches, as follows:

a. Fifteen percent (15%) upon signing of the MOA;

b. Thirty Five percent (35%) upon completion of at least twenty percent (20%) of the project activities supported by the following documents:

i. Progress Report duly validated by the concerned DA agency; and

ii. Physical Accomplishment Report.

c. Forty percent (40%) upon completion of at least sixty percent (60%) of the project activities supported by the following:

i. Progress report that at least 60% of the project has been accomplished duly noted, approved and validated by the DA-concerned agency;

ii. Validation Report prepared by the concerted RFU; and physical accomplishment for the 1st 60% of project activities. CDISAc

d. Ten Percent (10%) upon submission of terminal report for the whole project, _________ validation of project result by the DA-concerned and acceptance by the DA-agency concerned.

3. Project proponents may revise their W/F/P, if the project requires, provided no additional funds are involve and within the same MOOE subject to approval of the DA concerned agency.

ARTICLE V

Monitoring and Evaluation

SECTION 15. Implementation, Monitoring and Post-Project Evaluation. — The implementation, monitoring and post-project evaluation shall be guided by the following:

1. All projects shall be monitored by the concerned DA concerned agency to ensure that they are progressing in line with the timeframes, budgets, and methods specified in the approved Memorandum of Agreement (MOA);

2. The regular monitoring of the actual implementation of projects shall be done by the DA concerned agency, to include but not limited to the following:

a. Actual usage of total funds released;

b. Status of implementation/completion of project;

c. Status of project operations;

d. Employment generated and other social benefits gained;

e. Value-added on project;

f. Gender concern;

g. Other relevant information. AcHCED

3. All project proponents must submit a Terminal Report within two (2) months after the completion of the project as indicated by the proponent in their project proposal. A project is deemed completed after all funds have been utilized and liquidated;

4. Any Proponents whose projects have not met the Monitoring and Completion Report requirements shall be ineligible to submit any future project proposal for prioritization including liquidation of funds released;

5. All completed projects should be given final appraisal by concerned DA agency concerned on project success.

ARTICLE VI

Grounds for Cancellation, Penalties and Administrative Sanctions

SECTION 16. Grounds for Cancellation of the Memorandum of Agreement. — The Secretary, upon recommendation of the AEC after proper and thorough investigation, may cancel the MOA for any of the following reasons:

1. If the MOA was obtained through fraud, misrepresentation or omission of facts at the time of application;

2. Failure to commence the project within one (1) month from the disbursement of the fund;

3. Voluntary surrender of the MOA by the proponent for cause;

4. Violation of any of the conditions of, or failure to comply with, or perform the obligations as stipulated in the MOA; and

5. Violation of any provision of these guidelines, policies or pertinent laws affecting the implementation of the project.

SECTION 17. Penalties. — In the case of the proponent's misrepresentation of facts at any stage of implementation the following sanctions shall apply:

1. Cancellation of the MOA and Certificate of Accreditation; and

2. Perpetual disqualification and or block listing without prejudice to criminal prosecution/civil prosecution to apply for any funding from the Department. aTEACS

ARTICLE VII

Miscellaneous Provisions

SECTION 18. General Provisions. —

1. Fund releases to Proponents under these guidelines shall be deemed as funds held in trust for the DA. Failure of the proponent to liquidate the funds in accordance with the signed MOA shall create the presumption that the funds have been misappropriated. Within one (1) year from the time that the liquidation of the fund releases become due, the DA shall initiate the proper legal action against the NGOs/POs that fails to liquidate the funds in accordance with the signed MOA.

2. The procurement of goods and services by NGOs/POs for projects supported in whole or in part by funds from the DA shall be subject to the provisions of RA 9184, or the Government Procurement Reform Act.

3. NGOs/POs are not allowed to simultaneously implement two or more projects.

4. NGOs/POs shall properly acknowledge the role of the Department as partner in the implementation of the project through the putting up of signage at the project site only indicating the Department's logo and project name. There should be no reference to any name of a person or position.

SECTION 19. Repealing Clause. — DA Memorandum Circular No. 2008-07 is hereby repealed. All administrative orders, circulars, memoranda and other administrative issuances which are not consistent with these guidelines are hereby repealed or amended accordingly.

SECTION 20. Effectivity. — This administrative order shall take effect fifteen (15) days from the date of its publication in the Official Gazette or in at least two (2) newspapers of general circulation. The UP Law Center's Office of National Administrative Register shall be provided copy of this Order.

(SGD.) PROCESO J. ALCALASecretary

Published in The Philippine Star on August 2, 2012.