Guidelines on the Termination/Dropping of Non0-Moving 2016 Bub Projects

March 10, 2017

DA MEMORANDUM CIRCULAR NO. 04-17

 

I. Purpose

This Guideline is issued to establish the procedure for the termination/dropping of non-moving 2016 BuB projects. Termination/Dropping of non-moving BuB projects will address the low funding utilization and low project completion performance of the Department.

II. Legal Basis

• DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. 7 Policy Guidelines and Procedure in the Implementation of the Bottom-up Budgeting Program for FY 2016 and thereafter.

III. Projects for Termination/Dropping

The termination/dropping shall be based on, but not limited, to the following:

A. Implementing LGU's non-compliance with the prescribed project processes, standards and requirements which may include, but not limited to, the following:

1. Pre-implementation Stage

a. Non-submission of Project Proposal/s (PP) and other supporting documents for MOA signing within 60 days from receipt of the eligibility advice from DA Regional Field Offices (DA-RFOs).

b. Non-submission of commented/revised PP within 30 days from receipt of communication by proponent LGU to comply with the comments/recommendations of DA-RFO reviewing body.

c. Failure to secure Sangguniang Resolution authorizing the Local Chief Executive to enter into MOA with DA-RFO, if applicable, within 45 days from receipt of the official advice from DA-RFO or LPRAT/RPRAT.

d. Failure to secure Deed of Donation (DD) or Certificate of Land Availability (CLA) or Usufruct Agreement (UA) or Right of Way (ROW) if applicable, within 30 days from receipt of the official advice from DA-RFO. cDHAES

e. Non-submission of Detailed Engineering Design/Program of Work and related documents within 30 days from the receipt of the official advice from DA-RFO.

f. Non-submission of commented/revised Detailed Engineering Design/Program of Work within 30 days from receipt of the official communication by the proponent LGU to comply with the comments/recommendations of DA-RFO reviewing body.

g. Project site found not feasible during field validation and failure to submit replacement site 15 days after the validation of the initial site.

h. Non-adherence to the procurement timelines stipulated in the project implementation schedule as attached to the MOA and timeframe stipulated in RA 9184 (Government Procurement Reform Act).

i. Violation of RA 9184 (Government Procurement Reform Act).

2. Implementation Stage

a. Non-adherence to the implementation timelines stipulated in project implementation schedule attached to the MOA.

b. Implementing partner is performing unsatisfactorily in the implementation and execution of the projects.

c. Substantial slippage in the implementation of the project is incurred (more than 15% slippage).

d. Project which have no substantial progress for three (3) consecutive months.

B. When situations/circumstances would make it improbable for the project/s to continue/to be carried out such as, but not limited to, the following:

1. Peace and security issues

2. Extraordinary conditions such as force majeure, fortuitous events

C. Corruption and fraudulent practices

D. Upon the request of the implementing LGU

IV. Procedure for Termination/Dropping

A. DA-RFO BuB Focal Person shall review and evaluate status of all projects to determine those that are for termination/dropping. In case there are projects identified for termination/dropping, DA-RFO shall notify the concerned LGU, copy furnished the Local Poverty Reduction Action Team (LPRAT), informing them that their project/s is/are for termination/dropping stating therein the grounds for termination and requiring the concerned LGU to submit justification/s why their project/s should not be terminated/dropped.

B. The LGU shall be given 15 days from receipt of the notification to submit their justification/s. Within the said period, the DA-RFO shall request LPRAT to convene to discuss the project termination/dropping and/or come-up with detailed catch-up plan.

C. If no justification was submitted within the prescribed 15 day period, the DA-RFO shall recommend to Regional Poverty Reduction Action Team (RPRAT) the termination/dropping of the said project and shall officially notify the LPRAT that their project/s has/have been recommended for termination/dropping. On the other hand, if justification was submitted within the prescribed 15-day period, DA-RFO shall review and evaluate the said justification. If the reason is found valid, the DA-RFO shall provide the LGU a written notification giving it one (1) month from receipt of the notification within which to show substantial progress. Otherwise, DA-RFO shall endorse to RPRAT the termination/dropping of the said project and shall officially notify the LPRAT that their project/s has/have been recommended for termination/dropping.

D. RPRAT shall approve/disapprove the DA-RFO's recommendation for termination/dropping. If the RPRAT approves the DA-RFO recommendations, RPRAT shall issue a resolution approving the termination/dropping of the said project.

E. Within 10 days after the issuance of the RPRAT Resolution approving the project termination/dropping, DA-RFO shall provide the concerned LGU and LPRAT with the copy of the Notice of Termination/Dropping together with the RPRAT Resolution on the project/s termination/dropping.

F. For project/s with no fund release:

• DA-RFO shall officially notify its Budget and Accounting Sections of the terminated/dropped projects with the detailed information such as the Project Title, amount to be terminated/dropped and the reason for the termination/dropping including certified copy of the RPRAT Resolution.

• Upon receipt of the official notification for termination/dropping, Budget and/or Accounting Section shall endorse the notice of termination/dropping to the Department of Budget and Management (DBM).

G. For project/s with fund release approved for termination/dropping:

• DA-RFO through its Regional Accountant shall officially compel the concerned LGU to return the unexpended balance to the DA-RFO within fifteen (15) days from receipt of the notice of termination/dropping.

• DA-RFO through the Regional Accountant shall require the concerned LGU to submit liquidation of the previous fund transfer. ASEcHI

• DA-RFO through the Regional Accountant shall coordinate and facilitate the return of released funds from the concerned LGU to the Regional Office.

• Upon receipt of the released funds from concerned LGU, the Regional Accountant shall make the necessary entry in the books of accounts and subsequently remit the funds to the Bureau of the Treasury (BTr) at the end of the following quarter.

• The DA-RFO shall officially notify the Budget and Accounting Section on the project/s that has/have been terminated/dropped stating the Project Title, the amount transferred to BTr and the reason for the termination/dropping including the proof of the cash transfer to BTr and true copy of the RPRAT Resolution.

• Upon receipt of the official notification for termination/dropping, Budget and/or Accounting Section shall endorse the notice of termination/dropping to the DBM informing them the amount reverted to BTr.

V. REPEALING CLAUSE

All existing Orders and Memoranda inconsistent with this Circular are hereby repealed, amended or modified accordingly.

VI. EFFECTIVITY

This Memorandum Circular shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

(SGD.) EMMANUEL F. PIÑOLSecretary