Guidelines on the Approval, Transfer, Monitoring and Reporting of Government Funds Released to Non-Government Organizations (NGOs) and People's Organizations

December 3, 2003

DSWD MEMORANDUM CIRCULAR NO. 036-03

 

The Department of Social Welfare and Development is the primary agency of the government that provides assistance to the needy and marginalized sectors of the society. It extends assistance to the clients in partnership with Non-government Organizations/Peoples Organizations by virtue of fund augmentation or grants specifically recognized under Section 24 of RA 4373 as amended.

In order to regulate funds extended to partner agencies a systemic mechanism is hereby institutionalized which will cover phases in fund augmentation starting from the approval, transfer, monitoring and the reporting of fund releases specifically outlined in the following guidelines.

GENERAL GUIDELINES

A.) No funds shall be released by any DSWD Unit/Office intended for the utilization of partner agencies (Peoples Organization and Non-government Organization) without first complying with the specific requirements provided under COA Circular No. 96-003.

B.) Duties and Responsibilities of Concerned Units.

1.) The Finance Service

a.) Review the draft Memorandum of Agreement (MOA) between the DSWD and NGOs, recommend approval/revisions thereof to ensure that the pertinent provisions of COA Circular 96-003 dated 27 February 1996 on guidelines on funds entrusted to NGOs including tranching of releases are stipulated in the MOA, accountability mechanisms and sanctions are in place, liquidation and reporting requirements are clearly provided, among others.

b.) Upon receipt of the approved and notarized MOA and Allotment Obligations Slip, the Budget Division shall approve/disapprove the requested obligations as indicated in the MOA and forward the same to Accounting Division for issuance of the Certificate of Availability of Funds (CAF).

c.) Pursuant to COA Circular No. 83-333 dated 12 January 1983, the Accounting Division shall transmit/submit the perfected contract to the Office of the COA Auditor.

d.) The Accounting Division shall furnish a copy of Memorandum of Agreement (MOA), Allotment Obligation Sheet (ALOBS) and the Certificate of Availability of Fund (CAF) to the concerned Bureau)/Office/Unit which shall prepare the Disbursement Voucher for the purpose together with the complete supporting documents.

e.) The Accounting Division and Cash Division shall process Disbursement Voucher and issue funding check for the purpose. IaTSED

f.) For documentation purposes, the Accounting Division/Unit shall ensure that the following supporting documents are attached to the Disbursement Voucher for the First release:

f.1) SEC Registration

f.2) NGO Accreditation

f.3) Financial Statements for at least three (3) years operations.

f.4) If the NGO has been in operation for less than three (3) years, proof that it had previously implemented similar projects and a certificate from LGU concerned attesting to the credibility and capability of the officers and staff of the NGO/PO shall be submitted in lieu of financial statement. HTCDcS

g.) The Accounting Division/Unit shall first review/evaluate the documents/liquidation report submitted by the NGOs on the previous funds of availed before the release of the succeeding or final tranche.

h.) The documents to be submitted are as follows:

h.1) Audited Financial Statement for the amount transferred by an Independent CPA (if the amount transferred is less than P100,000.00, Statement of Receipts and Disbursements only with the attachments of all receipts).

h.2) Certificate of Project Acceptance by the Beneficiaries.

h.3) Certificate of Project Completion (NGO)

h.4) Certificate of Project Completion (Concerned Bureau/Office/Units attesting the project completion by the NGO).

i.) The transfer of funds to NGOs and their subsequent liquidation shall be recorded in the Books of the Department. (Guidelines on accounting treatment/entries on these accounts shall be issued by the Accounting Division). ETISAc

j.) Ten (10) days after the sixty days (60) deadline for the NGO to submit the liquidation report as stipulated in the MOA, the Accounting Division shall issue a memorandum to concerned Bureau/Office/Units informing them of the delinquency of said intermediary on the required reports.

k.) The Financial Service through the Accounting division shall submit Statement of Cash Advances to NGOs/POs to the Office of the Undersecretary for General Administration and Support Service (GASS), copy furnished the concerned bureaus/offices/units.

l.) If no report was submitted by the NGO after one month from the deadline set, the Undersecretary for General Administration and Support Services (GASS) through the Accounting Division, Finance Service shall send a letter to the NGO concerned requiring them of their reporting responsibility of the cash advance receive from DSWD copy furnished the concerned bureaus/offices/units and the Office of the COA Resident Auditor.

2.) The Standards Bureau and Regional Counterpart

 Upon request by the concerned DSWD Bureaus/Service/Unit, the Standards Bureau or its regional counterpart shall:

a.) Provide the concerned DSWD Bureau/Service/Office/Unit, a list of registered, licensed and accredited POs and NGOs as reference in identifying qualified agencies.

b.) Conduct Assessment to POs/NGOs for purposes of licensing and accreditation and issue corresponding certificate to those who meet the requirements or minimum standards;

c.) Conduct validation or fact-finding investigation of administrative cases filed against NGOs and POs relative to unliquidated cash advances pursuant to A.O. 140 Series of 2002; aHTCIc

d.) Endorse to the Finance and Legal Service the draft MOA between the Department and the NGOs/POs for their review whether it complies with COA Rule 96-003 or if not, provide appropriate recommendations;

e.) Recommend to the Secretary or his/her authorized representative the approval of the MOA to be executed between the Department and the NGOs/POs after it has been reviewed and favorably endorsed by the Finance and Legal Service.

3.) Concerned DSWD Bureau/Service/Office/Unit (Program Management Bureau, Social Technology Bureau, External Affairs Unit, Office of the Secretary, etc.)

 Concerned DSWD Bureau/Service/Office/Unit or its regional counterpart that endorses an NGO/PO for fund augmentation shall: CcAIDa

a.) act as a signatory in the MOA to establish the co-proponent partnership and shall be the primary accountable unit to look into the consummation of the provisions of the MOA;

b.) require the proponent NGO/PO to:

b.1 submit to the Finance Service the supporting documents and other reportorial requirements for review, documentation, monitoring and other purposes;

b.2. after the termination of the project, to submit to the Accounting Division/Unit a comprehensive liquidation report of the cash advance received for review, documentation and record purposes.

b.3 terminal report as basis for further research, policy and program review/development. HcSaTI

c.) monitor and report to the Secretary thru the cluster head status of the implementation of the project to ensure compliance with the MOA;

4.) Legal Service

a.) Review MOA to be executed between the Department and the NGOs/POs;

b.) Institute appropriate actions against the NGO/PO to enforce the contractual obligation of the concerned NGO/PO;

This Administrative Order shall take effect immediately and supersedes all issuances inconsistent herewith.

Issued at Quezon City, this 3rd day of December 2003.

 

(SGD.) CORAZON JULIANO-SOLIMANSecretary