Policy Guidelines and Procedures in the Implementation of the FY 2019 Local Government Support Fund-Assistance to Municipalities (LGSF-AM) Program

May 20, 2019

DILG MEMORANDUM CIRCULAR NO. 2019-071

 

1.0 BACKGROUND

Local governments confront rising public expectations regarding the delivery of services. Despite more than two decades of implementation of Republic Act (R.A.) No. 7160 (Local Government Code of 1991), local governments still face various challenges in the exercise of devolved service delivery functions. Foremost among these is the raising of sufficient funds for local development. HTcADC

Part of the General Appropriations Act (GAA) under the FY 2019 Local Government Support Fund (LGSF) is the Assistance to Municipalities (AM) Program, which seeks to equitably assist all municipalities in the delivery of basic services by providing financial subsidy to municipalities for the implementation of their priority programs and projects.

2.0 PURPOSE

This Memorandum Circular is being issued to prescribe the general policies and procedures in the implementation of the FY 2019 AM Program and ensure that all concerned are able to abide by the policies, processes, and responsibilities in the overall implementation of the Program.

3.0 LEGISLATIVE COMPLIANCE

Cognizant of the need to provide further support to the Municipalities to enable them to fully carry out functions devolved to them, while at the same time, building their capacity towards genuine fiscal autonomy, the National Government (NG) has scaled up its efforts to ensure meaningful devolution by providing a Local Government Support Fund (LGSF) under the FY 2019 GAA. CAIHTE

4.0 COVERAGE OF THE PROGRAM

The Program shall cover 1,373 municipalities. As provided for in Paragraph 2 of Section 1-Assistance to Municipalities of the Special Provisions of the LGSF under the FY 2019 GAA, page 891, the projects to be funded under the Program are culled out from the Local Development Investment Programs (LDIPs) of municipalities and shall be limited to:

4.1 Local Access Roads, to include drainage system along existing roads, that are compliant with DPWH standards

4.2 Local Bridges aScITE

4.3 Potable Water System Projects

4.4 Evacuation Center and Disaster Risk Reduction-related equipment

4.5 Small Water Impounding Projects

4.6 Rain Water Catchment Facilities

4.7 Sanitation and Health Facilities

4.8 Municipal Drug Rehabilitation Facility

5.0 DEFINITION OF TERMS

For purposes of this Memorandum Circular, the following terminologies are used and defined as follows:

5.1 Aide Memoire — An official document (Annex S) that summarizes the findings, recommendations, and agreements during the exit conference as a result of the project monitoring visit conducted by the DILG.

5.2 Certificate of Completion — A document issued by the Municipal Local Government Unit (MLGU) stating that the project has been satisfactorily completed in accordance with the Plans and Specifications of the Contract based on the Inspection Report (Annex M-1) indicating no defects/deficiencies observed, duly prepared by the MLGU Inspectorate Team.

5.3 Certificate of Final Acceptance 1 — A document issued by the Municipality upon final acceptance of the works, after the one-year Defects Liability Period and after all defects, deficiencies and failures, if any, have been corrected and supplied, based on the Final Inspection Report, duly prepared by the MLGU Inspectorate Team. DETACa

5.4 Defects Liability Period (DLP) — One (1) year after the project completion up to the Final Acceptance in accordance with Section 62.2.2 of the 2016 Revised IRR of R.A. No. 9184. In addition to the regular repairs done by the Contractor during this period, at least two (2) weeks before its expiry date, the project shall again be inspected by the Inspectorate Team to determine any defects thereon. All discovered defects, if any, shall be repaired by the Contractor to the satisfaction of the Inspectorate Team after which the Certificate of Final Acceptance shall be issued to the Contractor by the MLGU. For projects funded by the NG and implemented by a Local Government Unit (LGU), the latter shall be required to post the necessary warranty security in accordance with Section 62 of RA 9184 and its IRR.

5.5 Duly-Accredited Civil Society Organizations (CSOs) — Civil Society Organizations which have previous experience and participation in local planning. The accreditation shall be in accordance with the existing guidelines in DILG MC 2016-97 series of 2016, DILG MC 2018-89, series of 2018, and/or by DILG which guidelines to be issued for the purpose. HEITAD

5.6 Disaster Risk Reduction (DRR)-Related Equipment — A motor vehicle or rescue equipment/tools used for preparedness, immediate response, and rescue/relief operations during disasters and calamities.

5.7 Evacuation Center — Refers to an enclosed building designed and constructed to protect people living in the locality during an emergency, especially during man-made disasters, such as fire, and natural disasters, such as typhoons, flooding, and earthquake.

5.8 Geo-resistivity Survey — A field survey that uses the geo-resistivity meter to know the subsurface layering of soil and rock formations and to determine the groundwater level of the study area, which shall be conducted before the preparation of Detailed Engineering Design and shall form part of the MLGU Counterpart.

5.9 Inspection Report — A document that summarizes the narrative of the findings of Inspectorate Team during inspection, including repair works done by the Contractor.

 If no more defects/deficiencies are observed after punch-listing, use the latest Inspection Report as basis for the issuance of Certificate of Completion.

5.9.1 Final Inspection Report — A document that summarizes the narrative of the findings of Inspectorate Team during the conduct of Final Inspection. It indicates defects/deficiencies duly rectified by the Contractor after the one-year Defects Liability Period (DLP). aDSIHc

 If defects/deficiencies are still observed and not rectified after the DLP, used the Inspection Report instead of this form.

 If no more defects/deficiencies are observed, this document will be the basis for the issuance of the Certificate of Final Acceptance.

5.10 Inspectorate Team — Once the project reaches an accomplishment of ninety-five (95%) of the total contract amount, the procuring entity may create an Inspectorate Team to make preliminary inspection and submit a punch-list to the contractor in preparation for the final turn-over of the project in accordance with Section 7 of Annex E of the 2016 Revised IRR of RA 9184.

5.11 Local Access Roads — Under this Program, these are municipal and barangay roads that serve as the MLGU's access to basic services, aide in the mobility of products, goods and services, and improve the connectivity of the MLGU road network. ATICcS

5.12 Local Bridges — Under this Program, these are bridge components of municipal and barangay roads, these may also include footbridges.

5.13 Local Government Support Fund (LGSF) — Financial assistance to LGUs for the implementation of priority programs and projects, as provided for in the FY 2019 GAA.

5.14 Monitoring — The method of collecting and analyzing information to determine the program's development or progress in reference to its overall objectives. Monitoring outputs are used to come up with sound management decisions.

5.15 Municipal Drug Rehabilitation Center — A treatment and rehabilitation center used exclusively for the non-residential (outpatient) treatment and rehabilitation of drug dependents. A Non-Residential Treatment and Rehabilitation Center is a facility that provides diagnosis, treatment, and management of drug dependents on an outpatient basis.

5.16 Notice of Authority to Debit Account Issued (NADAI) — A document issued by the Regional Bureau of the Treasury (BTr) to the Municipality informing them that the subsidy has been deposited into the General Account of the MLGU. ETHIDa

5.17 Notice of Defects/Deficiencies — A document issued by the MLGU, signed by the Local Chief Executive (LCE), to officially notify the Contractor of the noted defects/deficiencies and required corrective repair works found during Punch-listing. This document shall also be used to notify the Contractor of the noted defects/deficiencies within the one (1) year DLP.

5.18 Office of Project Development Services-Assistance to Municipalities Project Management Offices (OPDS-AM PMOs) — The established three (3) sectoral offices under the OPDS of the DILG, namely 1) Water Supply and Sanitation PMO; 2) Local Access Roads PMO; and 3) Disaster Risk Reduction and Other Infrastructure PMO, which shall be responsible for the overall program management of AM.

5.19 Potable Water — The water that has passed the Potability Test/Water Quality Test, as certified by DOH. TIADCc

5.20 Potability Test/Water Quality Test — Physical, chemical, and bacteriological examinations of water from newly-constructed systems or sources before and during construction, before they are operated and opened for public use, and a regular periodic conduct of the same after completion as part of the project sustainability.

5.21 Projects — The eligible projects mentioned in Section 4 of these Guidelines.

5.22 Project Completion — The 100% physical accomplishment of the works, or goods as per Contract/approved Program of Works. The project is deemed completed once the Certificate of Completion is issued by the MLGU.

5.23 Project Implementation Team (PIT) — The team within the MLGU that is tasked to implement the project and ensure the quality and safety required for the project implementation. The PIT shall be led by the Municipal Engineer (ME) with, but not limited to, the following as members: the Municipal Accountant, the Municipal Treasurer, and the Disaster Risk Reduction Management Officer (DRRMO).

5.24 Project Management Office (PMO) — established in the DILG under the Office of Project Development Services (OPDS) which shall be responsible for the overall program management of the projects.

5.25 Project Monitoring Committee (PMC) — The team created or activated by the MLGU under the Municipal Development Council (MDC) that is tasked to monitor the projects under the Program.

5.26 Punch-listing — Conduct of preliminary inspection by the Inspectorate Team upon reaching 95% physical accomplishment. cSEDTC

5.27 Rainwater Catchment Facility — A structure used to collect, convey, and store rain water from the roof surface area of a government-owned facility for domestic use. It should have the four basic elements: (1) collection (catchment) area; (2) conveyance system consisting of pipes and gutters; (3) storage facility; and (4) delivery system consisting of a tap or pump.

5.28 Regional Hubs (RHubs) — Regional water and sanitation (WATSAN) Hubs composed of higher educational institutions (universities/colleges), water districts, the private sector, and NGOs that will assist the DILG in the capacity building of the MLGUs.

5.29 Sanitation and Health Facilities — Public sanitary and hygienic facilities that ensure safe stool disposal, proper hand washing behavior, and general hygiene practices in secured, government-owned properties. AIDSTE

5.30 Small Water Impounding Project (SWIP) — A water harvesting and storage earth-fill structure constructed across narrow valleys or depression areas that consist of an earth embankment spillway, outlet works, and canal facilities.

5.31 Undisbursed Funds — Actual amounts unspent or unpaid out of the budgeted amount.

5.32 Water Source — Can either be a groundwater flow out of the ground, or withdrawing of water from underground aquifers. It should meet the quality and water demand (quantity) based on the minimum requirements of the water system.

5.33 Water Source Validation — The confirmation of viability of water source in terms of quality and quantity to be developed for the intended beneficiaries which should be conducted during peak of dry season.

5.34 WATSAN (iWaSH) Council — The local oversight body on Water Supply, Sanitation and Hygiene (iWaSH/WATSAN) matters of the whole locality. It also serves as governance and coordination body for the implementation of iWaSH at the local level. SDAaTC

6.0 GENERAL GUIDELINES

6.1 Fund

6.1.1 LGSF-AM FY 2019 GAA (R.A. No. 11260)

 The amount of Eleven Billion Seven Hundred Fourteen Million One Hundred Thirty-Three Thousand Pesos (Php11,714,133,000.00) is a National Subsidy to Municipalities appropriated under the Local Government Support Fund-Assistance to Municipalities (LGSF-AM) Program pursuant to Paragraph 1 Section 1 of the Special Provisions under the LGSF of the FY 2019 GAA.

6.1.2 Fund Allocation

 As specified in Paragraph 1 Section 1 of the Special Provisions of the LGSF in the FY 2019 GAA, budget allocation for Municipalities is determined based on equal share, fiscal capacity, per capita share, and share for good performance.

6.2 LGU Counterpart

6.2.1 The MLGU shall put up cash counterpart to be deposited into the Trust Account with a government bank for the following cases, equivalent to: AaCTcI

6.2.1.1 the cost for the preparation of the DED for the Design and Build Scheme, prior to the issuance of the Notarized LGU Certification for Fund Release (Annex A of these Guidelines);

6.2.1.2 the difference between the total project cost and the subsidy received by the MLGU for the project, prior to the issuance of the Notarized LGU Certification of Compliance to Project Implementation (Annex E of these Guidelines);

6.2.1.3 the amount for the remaining works of cancelled projects referred to in Section 8.0 of theses Guidelines, which is also equivalent to the reverted amount mentioned in Section 6.4.8, prior to the submission of the Notarized Affidavit of Undertaking (Annex R of these Guidelines); and

6.2.1.4 the amount for the remaining works to complete the project when the project has commenced but is not physically completed by 31 December 2020, within six (6) months after the expiration of the fund validity.

6.2.2 The MLGU shall make available funds to finance, but not limited to, the following: acEHCD

6.2.2.1 All expenses incurred in the conduct of preliminary activities, such as, but not limited to:

a. Social Preparation;

b. Community Consultations;

c. Securing clearances and permits;

d. Feasibility study/project proposal preparation;

e. Surveys (e.g., Geo-resistivity, Road Surveys, etc.);

f. Detailed Engineering Design (DED) preparation;

g. Procurement activities;

h. Water drilling explorations; and

i. Pump test, water quality test.

6.2.2.2 Administrative costs in the supervision and monitoring of the project during implementation, such as, but not limited to: EcTCAD

a. Travelling expenses and rental of vehicles for project monitoring;

b. Hiring of Project Engineers (if current manpower is not sufficient);

c. Office supplies and materials;

d. Communication expenses;

e. Web development and maintenance; and

f. Installation of Community Billboards (Annex I) to be installed in the premises of the Municipal Hall.

6.2.2.3 Expenses in attending trainings/meetings/workshops related to project implementation.

6.2.2.4 Expenses in the implementation of action plans as agreed upon after the said activities, including, but not limited to:

a. Conduct of Actual Infra-Audit; and

b. Geotagging of Projects and Inventory of Local Infrastructure Projects.

6.3 Fund Release

6.3.1 The release of funds under the Program shall be subject to the compliance of the concerned MLGUs with the following conditions:

6.3.1.1 The requirements of the DILG Good Financial Housekeeping (GFH); SDHTEC

6.3.1.2 The requirements of the DILG Local Development Council (LDC) Functionality Assessment;

6.3.1.3 Assessment of Public Financial Management (PFM) systems and adoption of the corresponding PFM improvement measures; and

6.3.1.4 Submission of Notarized LGU Certification for Fund Release (Annex A of these Guidelines) prepared by the Municipal Engineer (ME) and Municipal Planning and Development Coordinator (MPDC), signed by the LCE attesting that:

a. The site of the project has no land ownership and Right-of-Way (ROW) problems/issues;

b. The project is not located in the "No Build Zone" and hazard prone area as determined by the Mines and Geosciences Bureau Hazard Map or engineering mitigating measures has been included in the design to address the potential problem; and HSAcaE

c. For water supply, the water source has been validated by the ME and found to be feasible to supply water to the intended beneficiaries and potable for drinking or mitigating measures have been included in the design to make the water potable. Copy of the Source Validation Report (SVR) shall be attached to Annex A as an integral part thereof, format shall be in conformance with the required template herein referred to as Annex A-1 and shall be prepared and signed by the ME.

6.3.2 Consistent with unnumbered Memorandum dated March 11, 2019, the deadline for submission by the MLGU to DILG-RO of the request for post-assessment to comply with LDC Functionality shall be until 5:00 in the afternoon of 28 June 2019.

6.3.3 Compliance with the governance conditions — GFH, LDC, and PFM, as mentioned in Sections 6.3.1.1, 6.3.1.2, and 6.3.1.3, shall be until 31 July 2019. Likewise, submission of documentary requirements by the MLGU to the DILG thru channel for the release of fund shall be until 9 August 2019.

6.3.4 The submission of the Notarized LGU Certification for Fund Release (Annex A) shall be through DILG channel. The Provincial Director (PD) shall recommend to Regional Office (RO) the list of MLGUs with Notarized LGU Certification for Fund Release. The RO, through the Project Development and Management Unit (PDMU), shall validate and confirm the veracity of the Certifications within five (5) working days after receipt of the endorsement of the PD. AScHCD

6.3.5 Upon validation and confirmation, the DILG-RO shall endorse to the Office of the Undersecretary for Local Government (OUSLG), through the Office of Project Development Services (OPDS), not later than 5:00 in the afternoon of 16 August 2019 using Annex B and Annex B.1. The endorsement shall include the scanned copied of the Notarized LGU Certification for Fund Release (Annex A of these Guidelines), as stipulated in Section 6.3.1.4. For water supply, Source Validation Report shall be attached.

6.3.6 The DILG-Central Office (CO), through the Office of Project Development Services (OPDS), shall review The List of Municipalities Eligible for Fund Release submitted by the ROs, including the projects to be funded and their corresponding cost (per project), and subsequently recommend to the Secretary of the Interior and Local Government (SILG), through the USLG, to endorse the validated list to the Department of Budget and Management (DBM).

6.3.7 Endorsements for fund release, which are not in accordance with Section 6.3.5, shall not be endorsed to DBM.

6.3.8 The DILG-CO shall disseminate to the DILG-ROs the validated List of Eligible Municipalities endorsed to DBM. The DILG-RO shall issue Notice of Eligibility (Annex C) to the concerned Municipalities informing them of their eligibility to receive the fund allocation for their approved projects, and advising them of the documentary requirements for submission to the concerned DILG-RO through the Municipal Local Government Operations Officer (MLGOO). The Notice of Eligibility shall serve as the initial notification prior to the receipt of the NADAI.

6.3.9 Upon receipt of the Notice of Eligibility (Annex C), the Municipal Treasurer shall regularly monitor whether the funds intended for their approved projects have been deposited into their General Fund Account by the BTr, through the issuance of NADAI.

6.3.10 The procedure for the release of fund from DBM through the BTr to the Municipalities shall be in accordance with the established procedures of DBM and BTr. The BTr will furnish copied of NADAI to the DBM, COA-Regional Offices, and DILG-OPDS and Regional Offices (ROs) concerned, as well as the Local Auditors in-charge of the Municipalities.

6.4 Fund Management

6.4.1 Pursuant to the General Provisions of the FY 2019 GAA, the fund shall be used exclusively for the AM Projects and shall be used exclusively in the identified LGUs. caITAC

6.4.2 The amount released to the Municipalities shall be recorded as Trust Fund to be used for its specified purpose. Moreover, the Municipality shall maintain a separate subsidiary ledger for each project to record each transaction. Funds which are undisbursed, as mentioned in Section 6.4.8, shall be reverted to the BTr.

6.4.3 Within 30 days reckoning from the date of the NADAI, the Municipality, through the Municipal Treasurer, shall confirm with the DILG-RO, through the DILG-Provincial Office (DILG-PO) and concerned MLGOO, that the funds have been transferred from the General Account to the Trust Fund Account intended for the project, using the template shown under Annex D (Municipality's Confirmation on the Receipt of FY 2019 AM Fund) hereof.

6.4.4 The Municipality shall exclusively utilize the fund for its intended purpose as indicated in the NADAI and in accordance with the existing government budgeting, procurement, accounting and auditing laws, rules and regulations. TAIaHE

6.4.5 Implementation of and payments for infrastructure projects to extend until December 31, 2020, in accordance with Item V, page 965, Cash Budgeting of the President Veto Message on the R.A. No. 11260 (FY 2019 GAA).

6.4.6 Prohibited Use of Funds

 The AM Fund shall not be used:

6.4.6.1 For any purpose other than the project/s to which the fund was released not specified in the NADAI;

6.4.6.2 To fund projects already covered by other funds; and

6.4.6.3 For the payment of Personal Services 2 expenditures (i.e., payment of salaries, including honoraria, allowances, bonuses, and similar forms of compensation) and all other items indicated in Section 6.2.2 of these Guidelines.

6.4.7 The Municipality may use the difference between the Approved Budget for the project and Contract Price to finance Variation Orders for the same project, subject to Section 6.5.6.4 of this MC. Variation Order mentioned herein strictly refers to the Variation Orders as defined and as allowed in Items 1 to 3, Annex E, 4 of the 2016 Revised Implementing Rules and Regulations of R.A. No. 9184. ICHDca

6.4.8 Reversion of Funds

 The Municipality shall be responsible for the following:

6.4.8.1 Consistent with Paragraph 2 Section 6 of the Special Provisions of the LGSF under the Allocations to Municipalities in the FY 2019 GAA R.A. No. 11260, any undisbursed funds after 31 December 2020, shall be reverted to the BTr by the recipient Municipalities.

6.4.8.2 In case of non-completion of projects by 31 December 2020, the MLGU shall issue a Notarized Affidavit of Undertaking (Annex R), signed by the LCE, for the following:

a. Allocate local funds equivalent to the reverted amount for the remaining works in accordance with Section 6.2.1.3 of this MC; cDHAES

b. Complete the project not later than the date agreed upon by the MLGU and the concerned DILG-RO;

c. Submit Project Completion Report (Annex K) within 30 calendar days to DILG-RO through the DILG-PO after the issuance of Certificate of Completion; and

d. Assume accountability and liability under applicable laws and issuances in case of non-compliance with this Undertaking.

6.4.8.3 For completed projects, the Municipality shall revert to the BTr the undisbursed funds after the Final Payment as recognized by the Municipal Accountant within the fiscal year.

6.4.8.4 If, at any point in time before the lapse of the fund validity period of 31 December 2020, the Municipality determines that the funds cannot be disbursed (e.g., when the program or project cannot be implemented for any reason or the same has been funded from other sources), the total amount received by the Municipality for the project shall be immediately reverted to the BTr.

6.4.8.5 The DILG-RO shall demand MLGUs, after substantial notification and documentation, to revert the funds equivalent to the remaining works for specific project/s which have received the Notice of Project Cancellation (Annex P) and have continually digressed conformance to any or all of provisions of these Guidelines. TCAScE

 In case of cancellation of on-going projects, the MLGU shall issue Notarized Affidavit of Undertaking using Annex R.

6.4.8.6 The DILG-RO shall immediately deny requests and demand the immediate reversion of funds for the following situations:

a. Request for realignment because the proposed project has been funded from other sources;

b. Request for change of project type e.g., Potable Water Supply System project to Local Access Road project;

c. Request for change of location of project other than those indicated in the NADAI;

d. Request for realignment of funds to a new project;

e. Request for splitting of funds to accommodate two or more projects or locations; and ASEcHI

f. Request for merging of funds released for two or more projects to finance the implementation of only one project e.g., funds released for Water System for Barangay A and Barangay B, and proposed to be used only for Barangay A or only for Barangay B.

6.4.8.7 For any reversion of funds, the Municipal Accountant shall initiate the preparation of vouchers and the Municipal Treasurer shall cause the remittance of the undisbursed funds to the BTr.

 The Municipality shall provide copy of the said transaction within fifteen (15) calendar days to DILG-RO through DILG-PO and concerned MLGOO.

6.5 Project Implementation

6.5.1 Pursuant to Section 27 of the General Provisions of the FY 2019 GAA, the following requirements shall be observed in the implementation of infrastructures projects:

6.5.1.1 The locations, areas, or sites of all infrastructure projects are not included in the critical geo-hazard areas or no build zones identified or certified by the Mines and Geo-Sciences Bureau (MGB);

6.5.1.2 The standards of construction, rehabilitation, improvement, or repair of all infrastructure projects in all areas and zones are consistent with the rules determined by the DPWH, which shall consider, among others, the structural strength and climate resilience required for infrastructure projects in all areas and zones; and cTDaEH

6.5.1.3 The planning and construction of all infrastructure projects to be implemented within the National Integrated Protected Area System (NIPAS) are done in a way that eliminates or minimizes the risk of biodiversity loss while the specifications thereon are in accordance with those determined by the DPWH, in coordination with the DENR. Major infrastructure projects may only be undertaken in said areas if intended to enhance biodiversity. The DPWH and all other agencies shall take into account climate risk information and green building standards to be issued by the Climate Change Commission (CCC) in the planning, identification of site, design, construction, engineering and renovation of government buildings and facilities, including schools and hospitals.

6.5.2 The Mayor, as the LCE of the Municipality, shall be accountable for the overall implementation of the projects. ITAaHc

6.5.3 The Municipal Engineer shall ensure that the Detailed Engineering Designs (DEDs), Program of Works (POWs), technical specifications, and construction of projects are in accordance with the AM Project Menu, NG standards, relevant provisions stipulated in the FY 2019 GAA (Annex V) and within the range of costs of materials, labor, equipment, etc., and project duration of similar projects being implemented by a National Government Agency (NGA) in the same locality.

6.5.4 Preparation and Submission of Documentary Requirements as Pre-requisite to Procurement (prior to Award of Contract)

6.5.4.1 Within two (2) months reckoning from the date of the NADAI, except for Potable Water System Projects which will be three (3) months, the MLGU shall submit to DILG-RO, through DILG-PO and concerned MLGOO, the following:

a. Notarized LGU Certification of Compliance to Projects Implementation (see template under Annex E-1 to Annex E-9 hereof) prepared by the ME and MPDC, and signed by the LCE. cSaATC

 The MLGU may submit a separate LGU Certification of Compliance to Project Implementation for each type of project.

b. Project Implementation Schedule, including procurement timelines, prepared by the Municipal Engineer and approved by the LCE, using the template under Annex F-2 (Pro-forma Implementation Schedule) hereof, in accordance with the Maximum Prescribed Timelines (Annex F-1).

 The approved Annex F-2 shall be submitted together with Annex E-1 to Annex E-9, A revised Annex F-2 shall be submitted for any change in the duration of project implementation. CHTAIc

6.5.4.2 The Notarized LGU Certification of Compliance to Project Implementation shall attest the following:

I. For infrastructure projects:

a. The DED and POW have been prepared and approved in accordance with the AM Project Menu (Annex W), NG standards and relevant provisions of the GAA (refer to Annex V) and other applicable laws and issuances.

 The approved DED and POW shall be attached to this Certification (Annexes E-1 to E-9, as may be applicable).

b. In the case of Design and Build Scheme, the MLGU shall comply with the requirement of Section 7 of Annex G of the Revised IRR of R.A. 9184, otherwise known as the Guidelines for the Procurement and Implementation of Contracts for Design and Build Infrastructure Projects. cHDAIS

c. All bidding documents have been completed and the MLGU is ready to proceed with publication of Invitation to Bid/Advertisement (ITB/Ad).

d. As may be applicable, Environmental Compliance Certificate (ECC)/Certificate of Non-Coverage (CNC), National Commission on the Indigenous People (NCIP), Water Permit and other permit applications have been submitted to the agencies concerned, with dates of submission specified.

e. As may be applicable, pursuant to Section 36 of the General Provisions of the FY 2019, alteration, renovation or demolition of government buildings and open spaces declared or presumed to be important cultural properties by government cultural agencies concerned approval shall be undertaken only upon prior approval of the said government cultural agencies and proper consultation with stakeholders and cultural groups to be administered by the NCCA. This includes the protection of the sight line with regard to build heritage, cultural properties and cultural landscapes.

f. Project Specific Requirements are stipulated in Annexes E-1 to E-9. EATCcI

g. Municipal funds shall be made available under their 20% Annual Investment Program (AIP) for the maintenance, repairs and insurance, where applicable, once the project is completed.

h. There is a Project Monitoring Committee (PMC) created or activated in the Municipality that is tasked to monitor the projects under the Program, among others.

i. Any undisbursed funds shall be remitted to the BTr, pursuant to Section 6.4.8 of the AM Implementation Guidelines.

j. The MLGU commits and binds itself to comply with all the provisions of the Project Implementation and Monitoring Guidelines.

6.5.4.3 The abovementioned documents shall be made available to the DILG during field monitoring visits and/or as may be requested. Any failure on the part of the MLGU to present the above documents shall be grounds for possible disqualification or ineligibility in accessing the NG assistance in the future. ISHCcT

6.5.4.4 Conduct of procurement prior to the submission of project documentary requirements mentioned above shall be considered as non-compliance with these Guidelines and may be considered as ground for sanction as stipulated in Section 9.0 of these Guidelines.

6.5.5 Procurement by the MLGU

6.5.5.1 Pursuant to Section 19 of the General Provisions of the FY 2019 GAA, all agencies of the government shall strictly adhere to the provisions of R.A. No. 9184, its IRR, and GPPB guidelines in the procurement of goods, infrastructure projects, and consulting services.

 To promote transparency and achieve efficiency in the procurement process, the Philippine Government Electronic Procurement System (PhilGEPS) shall be the primary and repository of information on government procurement: DHITCc

a. All project procurement shall be through competitive bidding, in strict compliance with the provisions of R.A. No. 9184 (Government Procurement Reform Act) and its 2016 IRR and GPPB Guidelines. The Municipality shall use the latest standard bidding documents, 5th Edition, for procurement of works issued by the GPPB which can be accessed at www.gppb.gov.ph.

b. The Bids and Awards Committee (BAC) shall ensure that the following are included in the Bidding Documents:

i. The winning bidder shall comply with the existing labor laws and standards, specifically the submission of the approved Application for Construction Safety and Health Program (CSHP), in compliance with R.A. 11058 (An Act Strengthening Compliance with Occupational Safety and Health Standards Providing Penalties for Violations Thereof) and the Department of Labor and Employment (DOLE) Department Order No. 13; and

ii. The Contractor shall submit the Statement of Works Accomplished (SWA) monthly. CAacTH

c. In case of two (2) failed competitive biddings, the MLGU may resort to an alternative mode of procurement.

d. In the event of a failed bidding, the Bids and Awards Committee (BAC) shall conduct a mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including its cost estimates.

e. The MLGU shall invite a representative of a duly accredited CSO, in accordance with the Special Provisions of the FY 2019 GAA, to observe in the procurement process. The MLGU may also invite the concerned MLGOO.

6.5.5.2 The MLGU shall include as a provision of the Contract Agreement the submission of monthly Statement of Works Accomplished (SWA) (Annex T) by the Contractor, to ensure submission thereof. cEaSHC

6.5.5.3 The MLGU shall cause the winning bidder to comply with R.A. No. 11058 and Department of Labor and Employment (DOLE) Department Order No. 13.

6.5.5.4 The MLGU shall cause the winning bidder to post the performance security consistent with Section 39 of the Revised IRR of R.A. 9184.

6.5.5.5 In reference to Section 37.4.1 of the 2016 Revised IRR of R.A. 9184, the Municipality shall ensure that the Notice to Proceed (NTP) is issued and duly received by the successful bidder within seven (7) calendar days from the date of approval of the Contract.

 The Municipality shall provide an electronic or hard copy of the duly received NTP to DILG-PO, through the concerned MLGOO, within seven (7) calendar days from the date of receipt by the Contractor of the NTP.

 Non-submission of the copy of the NTP shall be considered as non-compliance and may be considered as grounds for sanction as stipulated in Section 9.0 of these Guidelines.

 The DILG-PO shall reflect in the SubayBAYAN platform (hhtp://subaybayan.dilg.gov.ph) the date of receipt by the Contractor as the Project Start Date. IAETDc

6.5.5.6 Pursuant to GPPB Resolution No. 39-2017, the MLGU shall submit their Agency Procurement Compliance Performance Indicators (APCPI) Assessment to GPPB and inform the DILG, through channel, of their submission.

6.5.6 Project Execution

6.5.6.1 Adherence to National Government Standards and Policies

6.5.6.1.1 The Municipality shall abide by the standards and policies set by the NG, including the AM Project Menu, which are applicable to all phases of project preparation and implementation.

6.5.6.1.2 The DILG-RO shall ensure that these standards and policies are considered during appraisal and are being observed during actual implementation by the MLGU. CTIEac

6.5.6.2 The Mayor, as the LCE of the Municipality, through the Office of the Municipal Engineer, shall have the primary responsibility in ensuring the quality of works and that the implementation of the project shall be in accordance with the approved designs, plans, and specifications consistent with the relevant provisions of applicable laws, circulars, and issuances.

6.5.6.3 The Mayor, as the LCE of the Municipality, shall create or mobilize the existing PIT, led by the ME, which shall be responsible in providing supervision in the project implementation. The ME, as head of the PIT, shall be accountable in ensuring that each project will be completed on time and within the contract cost, based on the approved plans and specifications, adhering to National Standards in design and quality of workmanship. Without relinquishing responsibility, the ME may assign a Project Engineer in each project to supervise the day-to-day activities in the project site.

 The responsibility of the ME, through the Project Engineer, include, but are not limited to, the following:

a. Supervise regularly the progress of work; DcHSEa

b. Cause the Contractor to submit request for inspection prior to any concrete pouring works using the pro-forma for work request and/or concrete pouring. (Annexes G-1 to G-3).

• Two (2) days prior to the start of every major activity; and

• One (1) day prior to the concrete pouring of every major activity.

c. Be present during the actual construction activities mentioned in item (b). The list of major activities for every project type is shown in Annex H;

d. Verify and check the quantities of items of work; accomplished by the Contractor as against the approved plans, specifications, and programs of work and immediately notify the Contractor of any observed deficiencies; SaCIDT

e. Verify and check the quality of workmanship of the Contractor as against the approved plans, specifications, and POWs, and National Standards, and immediately notify the Contractor of any observed deficiencies;

f. Verify and check whether quality control plan is observed, quality tests are conducted, and construction logbook is maintained at the project site, and immediately notify the Contractor of any observed deficiencies;

g. In case of any observed deficiencies during construction, issue Site Instruction (Annex L) to the Contractor for rectification;

h. Initiate regular coordination meetings with the Contractor to address all pending issues and concerns regarding the project;

i. Cause the Contractor to submit monthly Statement of Work Accomplished (SWA) (Annex T). If project is By Admission, prepare the SWA; SCaITA

j. Verify and recommend for approval of SWA submitted by the Contractor. If there is variance between the actual work accomplished and the SWA, notify the Contractor;

k. Review and recommend for approval the progress and final billings of the Contractor;

l. Secure/compile records of project (i.e., photographs taken before, during and after), as-staked, as-built drawings of the completed projects, test results, work request, concrete pouring permit, weather charts, and other pertinent documents related to projects implementation, and make available during inspections or as requested;

m. Ensure that the Contractor submits a Certificate of Compliance as provided for in Section 5 of R.A. 6685; and cHECAS

n. Provide project status report to the MLGOO for the data needed to update the SubayBAYAN platform.

6.5.6.4 Variation Order

a. Any variation order shall strictly comply with Annex E (Contract Implementation Guidelines for the Procurement of Infrastructure Projects) of the 2016 Revised IRR of R.A. No. 9184, and the provisions of the Contract. Any variation order and contract time extension shall be approved by the LCE.

b. If the variation order will require additional cost, the said amount shall be charged against the unutilized allocation which refers to the difference between the approved allocation for the project against the approved contract amount.

c. If the variation order exceeds the approved allocation for the project, the Municipality shall provide the required additional funds. aTHCSE

d. The Municipality shall inform the concerned DILG-RO, through the DILG-PO and the concerned MLGOO, of any approved variation order and contract time extension, and shall ensure that all related documents are readily available during monitoring by DILG personnel and/or as may be requested.

6.5.6.5 The MLGU shall ensure that:

a. There is a valid Contractor's Letter of Credit or guarantee instrument equivalent to the balance of the advance payment not yet recouped;

b. The Contractor's All Risk Insurance is valid throughout the approved project duration, including time extension; and

c. The performance security by Contractor is valid/updated within the approved project duration including approved time extension.

6.5.6.6 Termination of Contract

 Consistent with the Guidelines of Annex I of the Revised IRR of R.A. 9184, the MLGU may terminate the contract when any of the following conditions attend its implementation: AHDacC

6.5.6.6.1 For infrastructure projects:

a) Due to the Contractor's fault and while the project is on-going, it has incurred negative slippage of fifteen percent (15%) or more in accordance with Presidential Decree 1870;

b) Due to the Contractor's fault and after the contract time has expired, it has incurred a negative slippage of ten percent (10%) or more in the completion of the work; or

c) The Contractor:

i. abandons the contract works, refuses or fails to comply with a valid instruction of the Procuring Entity or fails to proceed expeditiously and without delay despite a written notice by the Procuring Entity; cAaDHT

ii. does not actually have on the project site the minimum essential equipment listed on the Bid necessary to prosecute the Works in accordance with the approved work plan and equipment deployment schedule as required for the project;

iii. does not execute the Works in accordance with the contract or persistently or flagrantly neglects to carry out its obligations under the contract;

iv. neglect or refuses to remove materials or to perform a new work that has been rejected as defective or unsuitable; or

v. sub-lets any part of the contract works without approval by the Procuring Entity.

6.5.6.6.2 For contracts for Goods:

 The Procuring Entity shall terminate a contract for default when any of the following conditions attend its implementation: IDSEAH

a. Outside of force majeure, the Supplier fails to deliver or perform any or all of the Goods within the period/s specified in the contract, or within any extension thereof granted by the Procuring Entity pursuant to a request made by the Supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contract price.

b. As a result of force majeure, the Supplier is unable to deliver or perform any or all of the Goods, amounting to at least ten percent (10%) of the contract price, for a period of not less than sixty (60) calendar days after receipt of the notice from the Procuring Entity stating that the circumstance of force majeure is deemed to have ceased; or

c. The Supplier fails to perform any other obligation under the Contract.

6.5.6.7 Blacklisting of the Contractor

 Upon termination of the contract due to the fault of the Contractor, the MLGU shall immediately blacklist the Contractor in accordance with Appendix 17 of the Revised IRR of R.A. 9184, on the Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants. HCaDIS

6.5.6.8 The Municipality, through the LCE, shall ensure that there is a Maintenance Plan after the completion of each project including the required provision to implement the said plan.

6.5.6.9 In case of delay in the implementation of the project, the Municipality shall be guided with the provisions stipulated in R.A. 9184 and DILG MC 2018-104.

6.5.6.10 In case the Contractor fails to complete the work within the specified contract duration and any approved time extension, the Municipality shall impose liquidated damages in accordance with Annex E of the 2016 Revised of R.A. No. 9184. aCIHcD

6.5.6.11 The Municipality, through the PIT, shall inform the DILG-RO/PO that the project has been substantially completed (95%).

6.5.6.12 The Project is deemed physically completed once the Municipality issues a Certificate of Completion (Annex N-1).

6.5.6.13 Upon Issuance of Certificate of Completion, the Municipality shall prepare, within thirty (30) calendar days, the Project Completion Report and submit the same to the DILG-PO through the MLGOO.

6.5.6.14 The MLGU shall ensure that the warranty security by the Contractor is valid/updated throughout the warranty period.

6.5.6.15 The MLGU shall ensure that the ten percent (10%) Retention Money is withheld to cover all defects and deficiencies, including maintenance costs for one (1) year after project completion. An alternative to the ten percent (10%) final retention would be the posting of the Warranty Security, as stipulated in Section 62 of the Revised IRR of R.A. 9184.

6.5.6.16 The Municipality shall issue a Certificate of Final Acceptance (Annex N-2) after the one-year Defects Liability Period, and after all defects and deficiencies, if any, have been corrected.

6.5.6.17 From Final Acceptance, the MLGU shall continue to observe the Warranty provisions against structural defects and failures, as stipulated in Section 62.2.3 for infrastructure projects, and as stipulated in Section 62.1 for goods, of the Revised IRR of R.A. 9184. AHCETa

6.5.7 Information and Publicity of Projects

6.5.7.1 As MLGU counterpart, within 30 days reckoning from the date of the NADAI, the Municipality shall install the Community Billboard within the premises of the municipal hall in accordance with the specifications prescribed in Annex I (Community Billboard) hereof. DILG Projects' Community Billboards must contain all DILG implemented projects under FY 2019 GAA.

 MLGU shall include in the Community Billboard the MLGU's list of projects that are yet to be completed under FY 2017 LGSF-ADM, FY 2018 LGSF-AM, FY 2018 LGSF-SALINTUBIG, and FY 2019 LGSF-SALINTUBIG.

6.5.7.2 The MLGU shall ensure the installation of the Project Signboard/s by the Contractor at each project location in accordance with COA Circular No. 2013-004 dated 30 January 2013 and ensure the regular updating thereof. cHaCAS

 Pursuant to Section 18 of the General Provisions of the FY 2019 GAA, the Community Billboards and Project Signboards should not bear the name, image, and logo of candidates or public officials on government projects.

6.5.7.3 The Municipality shall comply with the reportorial and posting requirements stipulated in the following laws, to wit:

a. Rule XI Section 37.4.2 of the 2016 Revised IRR of R.A. No. 9184 and any relevant policies issued by the GPPB;

b. Considered with the Full Disclosure Policy (FDP) of the DILG, the said reports shall be posted on the MLGU's website, and at least three (3) conspicuous public places in the locality within twenty (20) days from the end of each quarter;

c. Pursuant to Section 105 of the FY 2019 GAA General Provisions (Transparency in Infrastructure Project); and

d. Paragraph of Section 6 of the F.Y. 2019 GAA Special Provisions under the LGSF. ScHADI

6.5.7.4 The LCEs and web administrators or their equivalent shall be responsible for ensuring compliance with Paragraphs (a) to (d) of Section 6.5.7.3 of these Guidelines.

6.5.8 Project Monitoring

 Project Monitoring shall be in accordance with the provision of DILG MC 2018-104 dated 5 July 2018.

6.5.9 Project Reporting

6.5.9.1 DILG Reporting

 DILG Reporting shall be in accordance with the provision of the DILG MC 2018-114 dated 20 July 2018, also known as the Guidelines on the Implementation of SubayBAYAN (http://subaybayan.dilg.gov.ph).

6.5.9.2 LGU Reporting

 The MLGU shall comply with the reportorial and posting as required in the GAA (Section 6 of the Special Provisions), R.A. 9184, and the DILG Monitoring Guidelines. DACcIH

6.5.9.3 External Monitoring

 For purposes of transparency, a separate Guidelines shall be issued for the Third-Party Monitors and CSOs.

7.0 RESPONSIBILITIES AND ACCOUNTABILITIES

7.1 Municipal Local Government Units (MLGUs)

7.1.1 The LCE and the concerned local officials shall be fully responsible and accountable for the proper disbursement and utilization of the subsidy. They will ensure the following:

7.1.1.1 That the said funds are used for its intended purpose as indicated in the NADAI and as provided for in the F.Y. 2019 GAA;

7.1.1.2 That the required project documents are complete, available, and can be readily verified;

7.1.1.3 That the projects submitted for funding are shovel-ready, and that the timeliness and quality of works in the implementation of the projects are in accordance with the AM Project Menu, DED/POW, technical specifications, and consistent with these Guidelines and the relevant provisions of applicable laws, circulars, and issuances; and

7.1.1.4 That no duplication and/or overlapping of funding will occur. As such, the Municipality shall immediately inform the DILG-RO if it has received funding from other sources for the same programs of projects.

7.1.2 The Municipal Accountant shall recognize the completed project as asset in the Book of Accounts of the Municipality pursuant to Government Accounting Manual Volume II for other infrastructure projects, and COA Circular 2015-008, and submit proof to the DILG-PO, through the MLGOO, that the completed project has been booked as asset. aICcHA

7.1.3 The MLGU, through the Municipal Health Officer, shall ensure that upon completion, the water supply system shall pass the Potability Test/Water Quality Test requirements set by the Philippine National Standard for Drinking Water (PNSDW).

7.1.4 The specific responsibilities of the MLGU are stipulated in the applicable provisions of these Guidelines, as found in:

7.1.4.1 Section 6.2 for the MLGU Counterpart;

7.1.4.2 Section 6.4 for the Fund Management; and

7.1.4.3 Section 6.5 for Project Implementation, including procurement, execution, information and publicity of the project, monitoring, and reporting.

7.1.5 Adherence to the applicable provisions of DILG MC 2018-104 Monitoring Guidelines. HSCATc

7.1.6 The Municipality shall aim to create and maintain an inventory of local infrastructure and facilities which shall support better planning and programming, which will include, but not limited to, the following:

7.1.6.1 Local roads and bridges which may be reflected in the LRNDP of the Provincial Government;

7.1.6.2 Existing and potential water sources;

7.1.6.3 Water supply systems (functional and non-functional) including management systems (e.g., LGU-managed, BAWASA, etc.);

7.1.6.4 Sanitation and Health facilities;

7.1.6.5 Results of Infrastructure Audit;

7.1.6.6 Existing and proposed, including its condition:

a. Evacuation Center (permanent and non-permanent);

b. Public Market;

c. Public Cemetery;

d. SWIP;

e. Drug Rehabilitation Center (for out-patient).

7.1.6.7 DRR-related equipment EHaASD

7.1.7 The MLGU, through the LCE, shall issue an Executive Order creating or reactivating the following, with the minimum composition, to wit:

7.1.7.1 Project Monitoring Committee (PMC), as created through DILG MC 2004-78, or any amendment thereafter, wherein the MLGOO cannot be appointed as the chairperson. Furthermore, it is suggested that the Municipal Planning and Development Coordinator (MPDC) be appointed as the Chairperson of the Committee.

7.1.7.2 Inspectorate Team, with the ME or his assigned representative/Project Engineer as the Chairperson, whose members shall be selected from the following offices, depending on the nature or type or project:

• Municipal Engineer's Office (MEO);

• Municipal Accountant's Office (MAccO);

• Municipal Health Office (MHO);

• Municipal Agriculturist's Office (MAO);

• Municipal Disaster Risk and Reduction Management Office (MDRRMO); and

• General Services Office (GSO).

7.1.7.3 Project Implementation Team (PIT), with the Municipal Engineer (ME) or his assigned representative/Project Engineer as the Chairperson, whose members shall be selected from the following offices, depending on the nature or type or project:

• Municipal Disaster Risk Reduction Management Office (MDRRMO); IDTSEH

• Municipal Accountant's Office (MAccO);

• Municipal Treasurer's Office (MTO); and

• Municipal Administrator's Office, if any; if none, senior staff from Mayor's Office holding a plantilla position.

7.2 DILG

7.2.1 Central Office (CO)

 Three (3) sectoral PMOs, namely 1) Water Supply and Sanitation (WSS) PMO; 2) Local Access Roads (LAR) PMO; and 3) Disaster Risk Reduction and Other Infrastructure (DRROI) PMO, have been established in the DILG-CO under the OPDS, which shall be responsible in overseeing the overall project implementation, monitoring and evaluation, including the provision of technical assistance and capacity development for Municipalities, in close coordination with DILG-ROs, DBM and line agencies, and other stakeholders. The PMOs shall specifically be responsible for the following:

7.2.1.1 Oversight

a. Formulate/Update and revise, as necessary, the Implementation Guidelines in coordination with DBM and other stakeholders; DaIAcC

b. Overall physical and financial planning in coordination with the DILG-ROs;

c. Based on the endorsed list of eligible Municipalities to DBM, inform the concerned Municipalities through the DILG-ROs of the funds to be released by the DBM;

d. Monitor Program Accomplishments at the Regional level;

e. Prepare and submit consolidated monthly, quarterly, annual and other reports to the DILG Management and other oversight and partner agencies as provided for in the F.Y. 2019 GAA Provisions;

f. Conduct regular consultations/dialogues with the DBM, other agencies, and stakeholders on matters related to project implementation;

g. If the circumstances warrant, notify the Municipality, copy furnished Municipal/Regional COA and DILG-RO, in and noted deviation to the provisions of these Guidelines and non-compliance with the recommended corrective actions during implementation; and

h. Overall monitoring and evaluation:

• Ensure the implementation of the Results-based Monitoring and Evaluation (RbME) framework and system to determine the outcome of the project; SICDAa

• Track the implementation of the risk-based monitoring system to improve project performance, and monitor the compliance of DILG-RO to its responsibilities, among others, as stated in DILG MC 2018-104;

• Through the monthly reports published in the SubayBAYAN, conduct Risk Assessment and analysis as basis for management actions including provision of Technical Assistance;

• As needed, conduct project monitoring visits on projects identified as critical; and

• If warranted, assist the DILG-ROs in the conduct of detailed assessment for non-functional projects based on the result of the Rapid Subproject Sustainability Assessment (RSSA). TAacHE

7.2.1.2 Capacity Development

a. Develop and implement Capacity Development interventions on project implementation and governance reforms related to the sectors covered by the Program, for DILG Field Offices, MLGUs, and service providers;

b. Develop and maintain database of conducted Capacity Development interventions;

c. Develop evaluation tools and conduct evaluation to measure the outcomes of conducted Capacity Development interventions; and

d. Prepare customized reference materials and manuals for local infrastructure projects such as procurement, construction management, safety and health, quality management, water and sanitation, and maintenance for vertical structures, among others.

7.2.1.3 Technical Assistance

a. Provide advisory and technical assistance to DILG Field Offices and Municipalities in the development implementation, operation, and management of projects, as needed; and DHIcET

b. Disseminate national standards for quality assurance and control in the implementation of projects to DILG-ROs and Municipalities.

7.2.1.4 Communications and Advocacy

a. Provide support to DILG-ROs in the documentation of Good Practices in the implementation of the Program;

b. Develop, update, and maintain information, education, and communication (IEC) materials about the program and the accomplishments for tri-media including social media and the DILG website at the national level; and

c. Spearhead the conduct of Knowledge Fora to showcase Good Practices in the implementation of the Program at the National level. HDICSa

7.2.2 Regional Office (RO)

 The RO shall take the lead in the progress monitoring and evaluation and is responsible in overseeing the implementation of the program at the regional level to ensure efficiency and effectiveness.

 This includes the provision of technical assistance, monitoring and evaluation, and capacity development for MLGUs.

7.2.2.1 Regional Director (RD) shall:

a. Oversee the AM Program implementation in the Region to ensure that the AM Project Menu, national standards, and policies are considered during project preparation and actual implementation by the Municipalities;

b. Ensure the dissemination of program policies issued by the DILG Management, including other issuances related to project implementation, national standards for quality assurance;

c. Ensure that the Municipalities are well-informed of and are able to comply with the policies and other issuances related to project implementation;

d. Report to the DILG-USLG, copy furnish OPDS, the status of program implementation; HcDSaT

e. Issue 3rd Warning Letter and Notice of Project Cancelation pursuant to DILG MC 2018-104;

f. Ensure that the monthly reports submitted by the concerned DILG-POs are in accordance with the DILG MC 2018-114;

g. Review the Regional Risk Assessment Reports prepared by the PDMU or its equivalent, and track possible interventions/actions at the RO level;

h. Submit to the USLG, copy furnish OPDS, the copy of the Regional Risk Assessment Reports with information of the interventions/actions taken by the Region;

i. Mobilize the PDMU for provision of technical assistance to the MLGU;

j. Ensure submission by the Regional Accountant of the Financial Accomplishments Reports of the utilization of M&E fund every 10th day of the following month to DILG-FMS; IDaEHC

k. Mobilize Information or Communication Officers in the Region to document good practices in the implementation of the Program within the region;

l. Ensure that the concerned DILG-POs discharge their responsibilities in program implementation as stated in Section 7.2.2.3, and provide assistance, if needed;

m. Ensure the inclusion in the regional ManCom meeting the status of LFPs and/or conduct regular meetings with Field Officers and/or concerned MLGUs to discuss and resolve issues regarding project implementation; and

n. On behalf of the DILG, enter into a Partnership Agreement with RHubs and other accredited CSOs and POs for the provision of Technical Assistance and Capacity Development to the MLGUs and in the implementation of CSO participation.

7.2.2.2 Project Development and Management Unit (PDMU) or its equivalent Unit

 The PDMU or its equivalent unit shall serve as the Project Management arm of the Program at the regional level. It shall be responsible for the following: ASTcaE

 Planning and Pre-Implementation:

a. Disseminate program policies issued by the DILG Management, including other issuances related to project implementation, and national standards for quality assurance;

b. Conduct orientation or one-on-one briefing to ensure that the MLGUs are well-informed of and are able to comply with the policies and other issuances related to project implementation;

c. Validate and confirm the veracity of the documents submitted by the MLGUs, which include, but are not limited to, the following:

1. Notarized LGU Certification for Fund Release (Annex A);

2. Confirmation on the Receipt of Fund (Annex D); DTCSHA

3. Notarized LGU Certification of Compliance to Project Implementation (use applicable Annex E); and

4. Project Implementation Schedule (Annex F-2).

 In validating and confirming Items 1 to 4, use the Validation Form (Annex Q-1);

d. Conduct regional physical and financial planning in coordination with DILG-POs; and

e. May attend bid openings, if warranted.

 Progress Monitoring and Evaluation:

a. Field or mobilize Engineers assigned in the RO to provide technical assistance to the MLGU, if necessary;

b. Maintain regional database and electronic copies of MLGU submissions transmitted by the POs and be made available during inspection;

c. Prepare a quarterly regional monitoring plan based on agreed deliverables. Submit a summarized accomplishment report to DILG-CO-OPDS every last month of the ensuing quarter; cDSAEI

d. Field or mobilize Engineers assigned in the RO to monitor the projects based on the monitoring plan. Use the Project Monitoring Templates when conducting site visits and spot checks during project implementation, and monitor the following, but not limited to:

• Implementation timelines;

• Availability of construction materials on-site, in accordance with the approved plans and specifications;

• Availability of appropriate equipment on-site, in accordance with the Equipment Schedule and manpower;

• Works are in accordance with the approved Plans and Specifications;

• Quality test conducted and construction logbook is being maintained;

• Proper waste disposal is done in accordance with prescribed standard set by MENRO; and CScTED

• Health and Safety standards set by DOLE shall be implemented.

e. In compliance with the provisions of the DILG MC 2018-114 (Guidelines in the Implementation of SubayBAYAN) relative to the progress reporting of the projects:

a. Ensure that the information on the progress of implementation such as physical accomplishment in percent based on the monthly Statement of Work Accomplished (SWA) and Financial Accomplishment or Disbursement will be reported in the SubayBAYAN on a monthly basis.

b. Ensure that the information provided by the MLGOOs on a monthly basis has been validated on-site. EDCcaS

f. Consolidate and analyze all Provincial Risk Assessment Reports submitted by the PDs, and prepare and submit to the RD the Regional Risk Assessment Reports using DILG Monthly Risk Analysis on LGUs' Compliance with Recommended Actions to Identified Issues and Concerns (Annex U-2). Identify and recommend to the RD possible interventions/actions to be taken at the RO level and those to be endorsed at the DILG-CO level;

g. For projects that remain critical after the issuance of the 2nd Warning Letter by the PD, recommend to RD the issuance of the 3rd Warning Letter;

h. Facilitate the conduct of consultations/dialogues at the regional level with DILG-POs, Municipalities, and other stakeholders to resolve issues on project implementation;

i. If warranted, participate in the conduct of punch-listing and final inspection to ensure that all issues and concerns were addressed before the issuance of corresponding certifications; cDCEIA

j. Monitor reversion of undisbursed funds by the Municipalities as provided for in Section 6.4.8 of these Guidelines;

k. Assist the DILG-PO on the Conduct of RSSA one (1) year after the completion of projects, or as necessary and prepare detailed assessment for non-functional projects based on the result.

 Capacity Development and Communications:

a. Assist the DILG-CO-OPDS-PMOs in the conduct of capacity development programs;

b. Assist the DILG-CO-OPDS in the conduct of Communications and Advocacy Program.

7.2.2.3 Provincial Director (PD)

 The DILG-Provincial Director (DILG-PD) shall assist the RO in monitoring overall program implementation at the provincial level to ensure efficient and effective implementation of the projects. He/She shall be responsible for the following:

a. Conduct provincial physical and financial planning in coordination with DILG-RO;

b. Assist the RO in the dissemination of program policies issued by the DILG Management, including other issuances related to project implementation, and national standards for quality assurance; ISHaCD

c. Assist the RO in the conduct of orientation or one-on-one briefing to ensure that the MLGUs are well-informed of and are able to comply with the policies and other issuances related to project implementation;

d. Recommend to RO the list of MLGUs with Notarized LGU Certification for Fund Release;

e. Prepare and implement a quarterly monitoring plan;

f. Field or mobilize the Engineers assigned in the PO to monitor projects regularly and provide technical assistance to the MLGUs with reported issues;

g. Ensure that the concerned Cluster Heads and MLGOOs discharge their responsibilities in program implementation, as stated in Section 7.2.2.4 and Section 7.2.2.5, and provide assistance, if needed; DHESca

h. Monitor the MLGUs' compliance with any recommended corrective actions during implementation within the agreed timelines;

i. Ensure the compliance with the provisions of the DILG MC 2018-114 (Guidelines in the Implementation of SubayBAYAN) relative to the progress reporting of the projects;

j. Maintain the copies of MLGU submissions transmitted by the MLGOOs and be made available during inspection. Scanned copied should be provided to DILG-RO-PDMU;

k. Based on the reports submitted by the MLGOOs and the Cluster Heads, prepare and submit to DILG-RO the Provincial Monthly Risk Analysis on LGUs' Compliance with Recommended Actions to Identified Issues and Concerns (Annex U-1) and track possible interventions/actions at the PO level in accordance with DILG MC 2018-104;

l. Issue 1st and 2nd Warning Letters and other notices in accordance with DILG MC 2018-104; cDTACE

m. Conduct the Rapid Subproject Sustainability Assessment (RSSA) for completed projects within the prescribed timelines pursuant to Guidelines issued by the DILG;

n. Provide advisory and technical assistance to Municipalities;

o. Assist the DILG-RO and/or OPDS-PMOs in the conduct of Communications and Advocacy Program; TEHIaD

p. Facilitate the conduct of consultations/dialogues at the provincial level with DILG-RO, Municipalities, and other stakeholders to resolve issues on project implementation;

q. Assist the DILG-RO and/or OPDS-PMOs in the conduct of capacity development programs;

r. May attend bid openings, if invited;

s. Check whether the MLGU already booked the project as asset upon final acceptance; and

t. Receive the MLGU Certification of provision of annual maintenance fund specifically for the concerned project/s.

7.2.2.4 Cluster Heads shall:

 The Cluster Heads shall assist the PD in monitoring projects in his/her Cluster MLGU. He/She shall be responsible for the following:

a. Ensure that the MLGOO complies with the provisions of the DILG MC 2018-104 and DILG MC 2018-114; cCHITA

b. Orient the MLGOOs on the Policy, Monitoring, and Reporting Guidelines;

c. Oversee the maintenance of documents and MLGU submission transmitted by the MLGOOs;

d. Supervise the MLGOOs in the discharge of their responsibilities and provide assistance, if needed; and

e. If warranted, participate in the conduct of punch-listing and final inspection to ensure that all issues and concerns are addressed before the issuance of corresponding certifications.

7.2.2.5 The Municipal Local Government Operations Officer (MLGOO) shall:

 The MLGOO shall assist the PD and the Cluster Head in monitoring projects at the municipal level. He/She shall be responsible for the following: DETACa

a. Review the completeness of the following:

1. Notarized LGU Certification for Fund Release (Annex A);

2. Confirmation of the Receipt of Fund (Annex D);

3. Notarized LGU Certification of Compliance to Project Implementation (use applicable Annex E); and

4. Project Implementation Schedule (Annex F-2).

 In validating and confirming Items 1 to 4, use the Validation Form (Annex Q-2).

b. Take and promptly upload geotagged photos of the project (0%, 30%, 60%, 90%, 100%, Turn-over) and project data in the SubayBAYAN;

c. Assist in the dissemination of program policies issued by the DILG Management, including other issuances related to project implementation and national standards for quality assurance, to ensure that the MLGUs are well-informed and are able to comply with such issuances;

d. Monitor if the Municipality has received the AM fund as mentioned in Section 6.4.2 of these Guidelines and has been transferred to the Trust Fund Account, including the MLGU Counterpart mentioned in Section 6.2 of these Guidelines, if any; CScaDH

e. If warranted, MLGOO may attend bid openings and note CSO participation in the procurement process;

f. Notify DILG-PO of "Failed Biddings" and advise MLGU to submit Revised Annex F-2 (Pro-forma Implementation Schedule);

g. Assist in the conduct of project monitoring visit cum exit conference with the Municipality. Secure a copy of the Aide Memoire (Annex S) signed by the parties present, copy furnished DILG-PO; and

h. Assist the DILG-PO in the conduct of the capacity development activities at the provincial/municipal level.

8.0 PROJECT CANCELLATION

8.1 Projects implementation not in accordance with the provisions of these Guidelines, including all other applicable laws, shall be subject to the Warning Scheme stipulated in the DILG MC 2018-104. Projects issued with 3rd level warning may be subjected to project cancellation and reversion of its fund allocation pursuant to Section 5.14 of DILG MC 2018-104, which include but not limited to the following: TaDCEc

a. If the MLGU fails to submit/complete documentary requirements prior to procurement;

b. During procurement stage, if the MLGU fails to follow the procurement schedule submitted to the DILG without valid reason; and

c. If the negative slippage reaches 15%, or if deviations in Monitoring Parameters have remained uncorrected.

8.2 If projects are cancelled pursuant to Section 8.1 of these Guidelines, the Municipality shall:

8.2.1 Revert the unutilized fund in accordance with Section 6.4.8 of these Guidelines.

8.2.2 If the project to be cancelled is "on-going," issue Notarized Affidavit of Undertaking stating the following:

8.2.2.1 Complete the projects using own funds on or before agreed timelines with the DILG RO;

8.2.2.2 Submit completion and turn-over report 30 calendar days (CDs) after issuance of Certificate of Completion; and

8.2.2.3 Assume the accountability and liability under applicable laws and issuances in case of non-compliance with this Undertaking. aHSTID

8.3 If warranted, documentary reports and findings shall be forwarded to the BANTAY KORAPSYON Project Management Office for proper disposition.

9.0 SANCTIONS/PENAL PROVISIONS

9.1 Projects not implemented in accordance with the provisions of this MC including, but not limited to, the following applicable laws:

9.1.1 R.A. No. 3019 "Anti-Graft and Corruption Practices Act";

9.1.2 R.A. No. 11032 "An Act Promoting Ease of Doing Business and Efficient Delivery of Government Services, Amending for the Purpose Republic Act No. 9485, Otherwise Known as the Anti-Red Tape Act of 2007, and for Other Purposes"; cDEHIC

9.1.3 R.A. No. 9184 "The Government Procurement Reform Act and its Revised Implementing Rules and Regulations";

9.1.4 Section 43, Chapter 5 and Section 80, Chapter 7, Book VI of E.O. No. 292 "Expenditure of Appropriated Funds"; and

9.1.5 Pertinent Provisions of R.A. No. 11260 — FY 2019 General Appropriations Act.

10.0 ISSUES FOR RESOLUTION

Interpretation of the provisions of this Memorandum Circular, including issues and concerns not covered herein, shall be submitted to the DILG for resolution.

11.0 REPEALING CLAUSE

All provisions of existing issuance that are inconsistent with this Memorandum Circular are hereby repealed/amended accordingly.

12.0 ANNEXES

Annex A — MLGU Certification for Fund Release

Annex A.1 — Water Source Validation Report (SVR) Form

Annex B — DILG-RO Endorsement of Projects of Eligible Municipalities for Fund Release CDHaET

Annex B.1 — Pro-forma List of Projects of Eligible Municipalities for Fund Release

Annex C — Notice of Eligibility

Annex D — MLGU's Confirmation on the Receipt of the FY 2019 AM Fund

Annex E — MLGU Certification of Compliance to Project Implementation

Annex E-1 — Local Access Roads

Annex E-2 — Local Bridges and Footbridges

Annex E-3 — Potable Water System

Annex E-4 — Evacuation Center

Annex E-5 — Municipal Drug Rehabilitation Facility

Annex E-6 — Small Water Impounding Projects

Annex E-7 — Disaster Risk Reduction-Related Equipment

Annex E-8 — Rain Water Catchment Facility

Annex E-9 — Sanitation and Health Facility

Annex F-1 — Maximum Prescribed Implementation Timelines

Annex F-2 — Pro-forma Project Implementation Schedule

Annex G-1 — Concrete Pre-Pour Checklist

Annex G-2 — Concrete Pouring Permit

Annex G-3 — Finished Concrete Checklist

Annex H — List of Major Activities

Annex I — Community Billboard

Annex J — MLGU Quarterly Report

Annex K — Project Completion Report

Annex L — Site Instruction Form ISCDEA

Annex M-1 — Inspection Report

Annex M-2 — Final Inspection Report

Annex N-1 — Certificate of Completion

Annex N-2 — Certificate of Acceptance

Annex O — Notice of Defects/Deficiencies

Annex P — Notice of Project Cancellation

Annex Q-1 — Validation Form (for RO/PO Technical Staff)

Annex Q-2 — Validation Form (for MLGOO)

Annex R — Affidavit of Undertaking

Annex S — Aide Memoire

Annex T — Contractor Monthly of Statement of Work Accomplished (SWA)

Annex U-1 — DILG Monthly Risk Analysis on LGUs' Compliance with the Recommended Actions to Identified Issues and Concerns (For DILG-PO)

Annex U-2 — DILG Monthly Risk Analysis on LGUs' Compliance with the Recommended Actions to Identified Issues and Concerns (For DILG-RO)

Annex V — FY 2019 GAA Provisions TaCEHA

Annex W — AM Project Menu

13.0 EFFECTIVITY

This Circular shall take effect immediately upon posting in the DILG website. EDCTIa

(SGD.) EDUARDO M. AÑO

Secretary, DILG

ANNEX A

MLGU Certification for Fund Release

ANNEX A.1

Water Source Validation Report (SVR) Form

ANNEX B

DILG-RO Endorsement of Projects of Eligible Municipalities for Fund Release

ANNEX B.1

Pro-forma List of Projects of Eligible Municipalities for Fund Release

ANNEX C

Notice of Eligibility

ANNEX D

MLGU's Confirmation on the Receipt of the FY 2019 AM Fund

ANNEX E

MLGU Certification of Compliance to Project Implementation

ANNEX E-1

Local Access Roads

ANNEX E-2

Local Bridges and Footbridges

ANNEX E-3

Potable Water System

ANNEX E-4

Evacuation Center

ANNEX E-5

Municipal Drug Rehabilitation Facility

ANNEX E-6

Small Water Impounding Projects

ANNEX E-7

Disaster Risk Reduction-Related Equipment

ANNEX E-8

Rain Water Catchment Facility

ANNEX E-9

Sanitation and Health Facility

ANNEX F-1

Maximum Prescribed Implementation Timelines

ANNEX F-2

Pro-forma Project Implementation Schedule

ANNEX G-1

Concrete Pre-Pour Checklist

ANNEX G-2

Concrete Pouring Permit

ANNEX G-3

Finished Concrete Checklist

ANNEX H

List of Major Activities

ANNEX I

Community Billboard

ANNEX J

MLGU Quarterly Report

ANNEX K

Project Completion Report

ANNEX L

Site Instruction Form

ANNEX M-1

Inspection Report

ANNEX M-2

Final Inspection Report

ANNEX N-1

Certificate of Completion

ANNEX N-2

Certificate of Acceptance

ANNEX O

Notice of Defects/Deficiencies

ANNEX P

Notice of Project Cancellation

ANNEX Q-1

Validation Form (for RO/PO Technical Staff)

ANNEX Q-2

Validation Form (for MLGOO)

ANNEX R

Affidavit of Undertaking

ANNEX S

Aide Memoire

ANNEX T

Contractor Monthly of Statement of Work Accomplished (SWA)

ANNEX U-1

DILG Monthly Risk Analysis on

ANNEX U-2

DILG Monthly Risk Analysis on

ANNEX V

FY 2019 GAA Provisions

ANNEX W

AM Project Menu

Footnotes

1. Section 62.2 of the 2016 RIRR of R.A. No. 9184.

2. Sec. 306 (k) of the Local Government Code of 1991.

3. Note from the Publisher: Copied verbatim from the official document. Missing Footnote reference and text.

4. Contract Implementation Guidelines for the Procurement of Infrastructure Projects of the Revised IRR of 9184.