Revised Implementing Rules and Regulations for the Implementation of Co-Financing Agreements with LGUs in Financing Agriculture and Fisheries Extension Programs/Projects/Activities

January 3, 2020

DA ADMINISTRATIVE ORDER NO. 18-19

 

Pursuant to the provisions of Section 93.1 of the Implementing Rules and Regulations of RA 8435, otherwise known as the Agriculture and Fisheries Modernization Act (AFMA) of 1997 and as called for under the Department of Agriculture (DA) Administrative Order No. 11, s. 2010, the DA, last FY 2011, had issued an Administrative Order No. 10, s. 2011 entitled "Implementing Rules and Regulations (IRR) on the Parameters, Modes, Guidelines, and Mechanisms for Co-Financing Agreements (CFA) with Local Government Units (LGUs) in Financing Agriculture and Fisheries Extension (AFE) Project Per RA 8435."

The guideline was formulated to assist the LGUs and augment their limited resources for the conduct of AFE interventions. It describes the eligibility requirements to avail the grants, the type of AFE programs/projects/activities (PPAs) that can be implemented, and the cost-sharing scheme to be implemented. However, it was determined that the provisions and contents of the IRR need to be reviewed and updated to ensure its relevance to the current extension context and situation in the country, as well as to incorporate the lessons learned from the implementation of the previous CFA. Thus, this revised guidelines is hereby issued and shall be adopted for the provision of extension grants through a co-financing agreement with the LGUs for the implementation of AFE PPAs:

ARTICLE I

Title, Objectives, and Scope

SECTION 1.0. Title. —

This shall be known as the "Revised Implementing Rules and Regulations for the Implementation of Co-Financing Agreements with Local Government Units in Financing Agriculture and Fisheries Extension Programs/Projects/Activities" hereinafter referred to as CFA for AFE.

SECTION 2.0. Objectives. —

General Objective:

To increase LGU investments in the delivery of AFE programs and services, being the frontline extension service provider to AFE clients, thus improving their farming productivity and improving their well-being.

Specific Objectives:

1. To provide extension grants as assistance to LGUs through a CFA for AFE PPAs;

2. To institutionalize a harmonized system on the implementation of co-financing agreements with LGUs for authorized expenditures on AFE PPAs; and

3. To ensure the commitment of LGUs in achieving the goals of the agriculture and fisheries sector through AFE programs and services.

SECTION 3.0. Scope. —

The monetary assistance shall be extended as a grant to eligible AFE PPAs of qualified LGUs. The beneficiaries of the proposed PPAs shall be agricultural extension workers (AEWs), and rural-based organizations (RBOs) including but not limited to women, youth, indigenous people (IPs), livestock raisers, and/or small farmers and fisherfolk.

The DA and LGU shall enter into a CFA provided that the proposal submitted and approved has a minimum budgetary requirement of 1 million pesos (P1,000,000.00) and a maximum amount of not more than 5 million pesos (P5,000,000.00). It must cover a series or a set of interventions that includes, but is not limited to training, technology demonstration, farm, and business advisory services, information, education, and communication services, and other extension support services. The implementation of the approved PPAs under the proposal shall have a maximum timeline of two (2) years.

ARTICLE II

Definition of Terms

SECTION 4.0. The following terms used in this document are defined as follows:

a. AFE clients — refers to the recipient/beneficiary of AFE programs and services such as AEWs, and RBOs including but not limited to women, youth, IPs and small farmers and/or fisherfolk.

b. AFE proposal — refers to proposals submitted by the LGUs to the concerned agency in the DA containing the details of the agriculture and fisheries extension PPA the former applies under the co-financing agreement. This covers a series or a set of interventions which includes, but not limited to, training, technology demonstration, farm, and business advisory services, information, education, and communication services, and other extension support services.

c. Authorized expenditure — refers to charges against funds released to the LGU for the implementation of approved extension PPAs in accordance with budgetary, accounting, and auditing rules and regulations.

d. Co-financing agreement — a mutual consent and undertaking by and between the DA and LGU in the provision of counterpart funds defining their detailed roles, responsibilities, and accountabilities based on the approved AFE proposal.

e. Department of Agriculture — refers to the Department's bureaus, service offices, attached agencies and corporations, and their corresponding regional offices/units/centers.

f. Extension program/project/activity — refers to the provision of training services, farm, and business advisory services, technical dispatch, information, communication, and education support services, technology demonstration services, and other extension support including production and post-production support.

g. Extension support to clients — a follow-through extension support service in the form of technical advisory, coaching and mentoring, information support, and assistance provided in-kind (e.g., after-training support, starter kits, and start-up livelihood kits) to train clients, thus ensuring continuity in the application of knowledge gained from such interventions.

h. Farm and business advisory services — involves on-demand knowledge-sharing and advisory on financial management, production and post-production technologies, linking producers to market, investment and other strategic resources and support services with various stakeholders on agriculture and fisheries.

i. Farm inputs — refer to products and materials permitted to be used in any farming activities, i.e., biologics, seeds, fertilizers, pesticides, livestock, fingerlings, etc. in the conduct of extension programs and services.

j. Farm tools and implements — refers to the traditional device or implement used manually for land preparations and other farming activities.

k. Field monitoring and visit — on-site validation activity that seeks to collect information on the progress of an ongoing intervention.

l. Financial closing — shall be that period allowed for the LGU to fully pay its creditors and liquidate the CFA fund transferred to them.

m. Grant — an amount of money that the DA shall provide to the LGU to augment limited resources for the conduct of extension programs and services based on set criteria on the co-financing scheme herein proposed.

n. Information, education, and communication support services — refers to the sharing of information between and among stakeholders through conventional print, radio, indigenous folk media or any new media modalities.

o. Local Government Units (LGUs) — refer to the office of the municipal/city/provincial local government unit who shall enter into an agreement with the DA and will provide supervision and implementation of extension activities in their respective area.

p. Physical closing — refers to the final completion of all activities indicated in the approved AFE proposal.

q. Progress report — a document that provides updates on the status of an intervention, prepared and submitted by LGUs periodically using the prescribed report format of the DA.

r. Results evaluation — an activity that aims to assess and determine the application of learning or the effect of an activity on the client's farming or economic activities.

s. Rural-based organizations (RBOs) — refers to an organized group with a common set of objectives and promote agriculture and fisheries extension in the rural areas.

t. Small farm animals — animal species that are used, or may be used, for the production of food and other agricultural purposes.

u. Small farm machineries and equipment — mechanical devices or implements used in farming activities to save labor.

v. Small farmers — are those who own or are still amortizing lands that are not more than three (3) hectares, tenants, leaseholders, and stewards (Presidential AO No. 21 of 2011, Revised IRR of RA 8425/Social Reform Act).

w. Small fisherfolk — are those who use fishing boats of three (3) gross tons or less; also known as municipal fisherfolk.

x. Technical dispatch — refers to the provision of technical assistance through the conduct of trainings, seminars, fora, and other agriculture and fisheries (AF) related concerns needed by the AFE clients.

y. Technology demonstration services — an extension support activity that showcases the performance of technologies generated by research and development institutions.

z. Terminal Report — refers to a document, prepared and submitted by the LGUs at the end of project implementation, using the prescribed report format of the DA.

aa. Training Services — refers to a need-based learning activity implemented to enhance knowledge, skills, attitude, and values of participants covering a wide range of topics along the value chain.

ARTICLE III

Principles of Co-Financing Agreements

It is a policy of the national government to provide monetary assistance through counterpart funding with the LGUs in the delivery of high-impact extension programs and services as it aims to gain social and environmental benefits and partnership-based initiatives leading to poverty alleviation.

Since the devolution of the extension function to the LGU, it has been the responsibility of the DA to provide or augment the limited resources of LGUs for the implementation of AFE PPAs. Further, the provision of assistance seeks to encourage the alignment of local development initiatives with the national government development agenda and priorities.

SECTION 5.0. The CFA for AFE shall uphold the following principles:

5.1 Agricultural development is a joint-responsibility and undertaking among the DA, LGUs, and other stakeholders in the AF sector.

5.2 The CFA is a scheme towards shared responsibilities, ownership, and alignment of goals in the implementation of AFE programs and services between the national and the local government.

5.3 The CFA supports the agricultural and economic development of the LGU through the provision of efficient and effective AFE programs and services as it acknowledges the importance of extension in enabling positive changes to the well-being of farmers and fisherfolk and how it affects the overall agricultural development in the locality.

5.4 The AFE proposals to be approved will be premised on equity considerations minimizing subjectivity in the distribution of resources. It shall depend on the nature of the AFE PPAs proposed to address the needs and priorities of the locality, and the characteristics of the LGU based on a set criteria.

5.5 The CFA promotes the practice of sustainability in which the approved proposal must include a sustainability plan to ensure that the goals and objectives of the PPAs will be achieved even after its provision.

ARTICLE IV

Roles and Responsibilities

To ensure a systematic, efficient and effective implementation of co-financing agreements, the DA and the LGUs shall execute the following roles:

SECTION 6.0. The Department of Agriculture (DA) through its bureaus, service offices, attached agencies and corporations, and their corresponding regional offices/units/centers with CFAs shall:

6.1 Secure fund availability.

6.2 Issue a memorandum/circular informing the LGUs on the availability of funds for CFA and the prescribed requirements for its availment.

6.3 Form a clearinghouse committee/secretariat that will facilitate CFA related activities.

6.4 Review and approve the AFE proposals submitted by the LGUs.

6.5 Secure a multi-year contracting authority (MYCA) for approved proposals covering multi-year of implementation.

6.6 Enter into a Memorandum of Agreement (MOA) with the LGU.

6.7 Facilitate the transfer of funds to the LGU according to the agreed tranches.

6.8 Oversee the implementation of the AFE PPAs through the conduct of periodic monitoring as well as review and assessment meetings.

6.9 Provide technical assistance and other support services deemed appropriate to aid the implementation of PPAs.

6.10 Facilitate the conduct of results evaluation of PPAs.

SECTION 7.0. The Local Government Units shall:

7.1 Develop and submit to the DA, AFE proposals aligned with the criteria and priorities set by the national and local development plans of the municipality/city/province.

7.2 Present and defend the AFE proposal to the DA for its approval.

7.3 Provide counterpart funds based on the result of the cost-sharing scheme proposed herein.

7.4 Enter into a MOA with the DA.

7.5 Adhere to the rules, responsibilities, and agreements including the physical and financial closing of the AFE PPAs set in the MOA.

7.6 Timely implement all the activities identified in the approved AFE proposal.

7.7 Ensure the proper documentation and recording of accomplishments for its submission in the DA along with other required documents.

7.8 Submit appropriate financial reports duly signed by the Local Chief Executive (LCE) and acknowledged by their Commission on Audit (COA) representative.

ARTICLE V

Eligibility Requirements for Availing Co-Financing AFE Program/Project/Activity

SECTION 8.0. AFE proposals eligible for funding under the CFA shall be consistence to the following:

8.1 Supports the national and regional priority programs as embodied in the Agriculture and Fisheries Modernization Plans (AFMPs), Public Investment Programs (PIPs), Agriculture and Fisheries Extension Strategic Plans, and/or the LGU's Development Plan.

8.2 Requires a budgetary requirement of one (1) million up to five (5) million pesos subject to a CFA between the LGU and the DA.

8.3 Covers at least two (2) municipalities for a provincial level proposal and at least five (5) barangays for a municipal/city level proposal.

8.4 Supports the priority commodities or economic activities in the locality which are identified to have a market demand locally or abroad.

8.5 Adopts environmentally sound and climate change resilient AF technologies as well as relevant risk transfer systems and mechanisms.

8.6 Includes the participation of intended AFE clients in the identification, planning, and development of AFE proposals.

8.7 Provides beneficiaries any or a combination of the following:

8.7.1. Training services

8.7.2. Farm and business advisory services

8.7.3. Technical dispatch services

8.7.4. Technology demonstration services

8.7.5. Information, education, and communication support services

8.7.6. Other extension support to clients

8.8 Assures that the rational share of the LGU counterpart to the cost of the AFE PPAs shall be committed officially by the Sangguniang Bayan/Panglungsod/Panlalawigan and through a certificate of the availability of funds signed by the Mayor/Governor.

SECTION 9.0. All provincial/city/municipal LGUs are eligible to enter into the CFA provided that they comply with all the initial requirements set by the DA. LGUs shall have good financial management in which no COA observations and findings for unliquidated funds and other misappropriations are on record. Further, LGUs with pending unliquidated funds from previous partnerships or engagements shall not be considered for the CFA. Documentary evidence that provides proof on the LGUs having no unliquidated funds will be required to be submitted.

SECTION 10. In a fiscal year, an LGU can submit one (1) AFE proposal to any of the DA bureaus, service offices, attached agencies and corporations, and their corresponding regional offices/units/centers who will implement the CFA for AFE. The LGUs that will submit proposals must have not yet engaged in any partnership agreements with other government agencies and/or non-government organizations for the conduct of any interventions for that given fiscal year. Further, to avoid double funding for proposals, the LGU through the LCE must certify under oath that the proposal to be submitted has yet to be funded.

SECTION 11. Specific additional eligibility requirements will be set by the DA, on top of the general provisions mentioned above, depending on the nature of the AFE grant. These additional requirements shall be properly relayed to the LGUs for their compliance as specified by the supplemental guidelines to be developed by each DA bureaus, service offices, attached agencies and corporations, and their corresponding regional offices/units/centers who will implement the CFA for AFE.

ARTICLE VI

Eligible Expenditures to be Funded by the Co-Financing Agreement

SECTION 12. The eligible expenditures for the AFE proposal shall only be for the direct cost of the AFE PPAs. This covers the provision of inputs needed for the implementation of an extension activity such as the following:

a. Food

b. Accommodation

c. Training facility

d. Vehicle rental

e. Equipment rental

f. Public transportation expense (e.g., airfare, bus fare)

g. Professional fee/Resources person honorarium

h. Common supplies and materials (e.g., pen, paper, modules)

i. Extension support to clients (e.g., farm inputs, small farm animals, farm tools and implements, small farm machineries, and equipment)

j. Training equipment (e.g., computer, audiovisual equipment)

k. Farm machineries and equipment

l. Small-scale farm Infrastructure (e.g., animal housing, small water system, solar/collapsible drier, mini-warehouse)

SECTION 13. A detailed breakdown of expenses shall be properly itemized in the AFE proposal. It shall also be in accordance with the AFE Cost Standards for Training and Training Related Activities of the Agricultural Training Institute (ATI).

SECTION 14. The inclusion of training equipment, farm machineries, and equipment, and small-scale farm infrastructures as an allowable input for the implementation of the AFE PPAs shall be dependent on the discretion of the DA. However, it shall be strictly identified as an essential component for an extension activity such as the establishment of technology demonstration projects and the conduct of trainings.

SECTION 15. The incentives and salaries of the AEWs and other LGU personnel involved in the implementation of the AFE PPAs shall not be considered eligible as an expenditure for CFA for AFE funding but will be accounted as an additional LGU counterpart.

ARTICLE VII

Procedure in the Availment of Co-Financing for AFE Program/Project/Activity

SECTION 16. Each DA bureaus, service offices, attached agencies and corporations, and their corresponding regional offices/units/centers who will implement the CFA for AFE shall establish a clearinghouse committee/secretariat. Their role includes facilitating the development of the required standard forms, prescribed proposal format and templates, identifying the list of attachments to be submitted with the AFE proposal, and determining the appropriate timeline for each phase in the review and evaluation of the proposals. The clearinghouse committee/secretariat shall ensure that all LGU proposals will undergo (1) the preliminary and (2) application review and award phases.

It shall be understood that this clearinghouse committee/secretariat is not the same as the DA-Wide Project Clearinghouse System but rather a new one at the different DA agency level.

SECTION 17. The DA shall have the discretion for the identification of members of the clearinghouse committee/secretariat. However, the personnel to be assigned shall have the technical capacity on reviewing project proposals and has a background in program management to oversee the implementation of the AFE PPAs under each approved proposal.

SECTION 18. The Preliminary Phase refers to the initial evaluation of the AFE proposal and its compliance to the prescribed format and ensuring the complete submission of all the required documents and attachments for review. Specifically, the Preliminary Phase includes:

• Identification of priority areas for funding;

• Call for proposals on the availability of co-financing opportunities;

• Submission of AFE proposal and application requirements approved and endorsed by the Local Chief Executive (LCE);

• Submissions and initial screening ensuring the completeness of requirements and compliance to the prescribed format; and

• Provision of feedback to the proponent whether the documents are complete and in compliance with the requirement of the DA.

SECTION 19. The Application Review and Award Phase refers to the deeper evaluation of the AFE proposal in terms of its rationale, objectives, breakdown of extension activities to be conducted, and the budgetary requirement for its implementation, among others. Specifically, the Pre-Award Phase includes:

• In-depth review of the AFE proposal;

• Provision of initial inputs, comments and suggestions to the LGU to improve the AFE proposal submitted;

• Conduct of oral defense, geo-tagging, and site validation to further evaluate the proposal;

• Provision of feedback to the LGU on whether the proposal passed, failed or is for reconsideration, subject to further revision;

• Identification of the counterpart funding scheme between the DA and the LGU;

• Preparation and signing of the Memorandum of Agreement and the legal framework requirements; and

• Facilitation of the documents and requirements for the release and transfer of funds to the LGU.

ARTICLE VIII

Criteria for the Selection of Proposals to be Approved for Co-Financing

SECTION 20. The selection of proposals to be approved for CFA shall be based on the following set of criteria considered to be the priority areas of concern in which immediate extension support is needed.

 

CRITERIA	DEFINITION	RANK	SCORE
1. Poverty incidence	Poverty incidence is above the average regional poverty incidence rate (for a provincial level PPA) while provincial poverty incidence (for a municipal/city level PPA)	High	25
Poverty incidence is below the average regional poverty incidence rate (for a provincial level PPA) while provincial poverty incidence (for a municipal/city level PPA)	Low	15
2. Vulnerability to disaster/conflict	High incidence and occurrence of natural or man-made disasters and conflict and their vulnerability level	High	20
Low incidence and occurrence of natural or man-made disasters and conflict and their vulnerability level	Low	10
3. Potential for agriculture and fisheries enterprise	The area is suitable for the production of commodities with the potential for the global and domestic market	High	20
The area is suitable for the production of commodities with domestic demand	Low	15
4. Population of marginalized groups	The population of the marginalized sector (i.e., indigenous people, out-of-school youth, PWDs, senior citizens, rebel returnees, etc.) is about 10% and above over the total population in the municipality/city/province	High	15
The population of the marginalized sector (i.e., indigenous people, out-of-school youth, PWDs, senior citizens, rebel returnees, etc.) is less than 10% over the total population in the municipality/city/province	Low	10
5. Income class	4th-6th income class	High	25
1st-3rd income class	Low	10
6. Annual allotment for AFE programs and services	The average annual budget for AFE programs and services is less than 1% of the total Internal Revenue Allotment for the last three years	High	25
The average annual budget for AFE programs and services is 1% of the total Internal Revenue Allotment for the three years	Low	10
7. Budget disbursement rate	The average annual disbursement rate is not below 80% for the last three years	High	20
The average annual disbursement rate is below 80% for the last three years	Low	10

 

SECTION 21. Each criterion shall be scored with a high or low rank in which a corresponding score is provided. The LGUs that submitted a proposal will be ranked according to the total scores obtained. This ranking system shall be the basis for the prioritization of the LGU's proposal in which co-financing agreement is to be implemented.

SECTION 22. The ATI shall have the responsibility of periodic review of the criteria, especially with respect to relevant areas in order to remain relevant and useful. Any changes in the criteria and adjustments on scores shall be made upon the revision of this Guidelines and the approval of the DA Secretary.

ARTICLE IX

Counterpart Funding Scheme

SECTION 23. To ensure a rational and equitable co-financing scheme, the scores obtained by the LGU in terms of its income class and annual allotment for AFE programs and services shall be used as the basis in providing support for the implementation of the AFE PPAs of the LGUs. The cost-sharing scheme is as follows:

 

Score	Cost Sharing Percentage
DA	LGU (Prov/City/Mun)
20 points	85%	15%
35 points	90%	10%
50 points	95%	5%

 

The highest point of 50 can be obtained if the LGU score both high for income class and annual allotment for AFE programs and services while a score of 35 can be obtained if the LGU score one high and one low on either of the two criteria. On the other hand, a score of 20 points can be obtained if the LGU score both low for the two criteria.

SECTION 24. The cost-sharing percentage of the LGU shall be in the form of monetary resources only. However, the LGU, if able, can provide additional counterpart, in the form of additional manpower or field personnel, soil and water laboratory services, other facilities such as training venue, drying facilities, warehouses and storages, and other extension support services and/or materials.

ARTICLE X

Funding Source and Fund Releases

SECTION 25. Funding Source. —

The funds for the implementation of the CFA shall be proposed to the Department of Budget and Management (DBM) and be made part of the regular budget of the DA. The basis the CFA for AFE shall be the provision of RA 8435 or the AFMA of 1997, particularly Section 93 that specifies that extension activities shall be supported by the following fund sources:

a. Allocation of multi-year budgets that shall be treated as grants;

b. The budget for agriculture and fisheries extension service shall be at least one percent (1%) of the national gross value added (GVA).

The DA shall secure a MYCA from the DBM for AFE PPAs that will be implemented beyond the fiscal year it was approved. Further, as soon as the funds become available, the DA shall invite the LGUs with approved AFE proposals to finalize their implementation plans, signing of the CFA, and launching of their AFE PPAs.

SECTION 26. Fund Releases and Protocols. —

The LGU shall establish a separate/special account to accommodate and manage the CFA for AFE funds. The CFA funds to be released by the DA shall be given as follows:

• Short-term projects (one year or less) — in a single tranche

• Long-term projects (more than one year) — into two (2) tranches

- 1st tranche — upon signing of the MOA and submission of required documents

- 2nd tranches — upon the liquidation of the first tranche

For long-term proposals, the DA, after the discussions with the LGU, shall determine the percentage releases for each tranche. The percentage of releases shall depend on the project cost and will be based on the Work and Financial Plan and Cash Program submitted by the LGU. Further, the physical completion and financial closing shall be set and agreed upon by both the DA and LGU.

SECTION 27. Periodic review and assessment meetings shall be conducted by and between the LGU and the DA to check on the physical progress and financial accomplishment. It shall be ensured that funds for the conduct of the review and assessment meetings are included in the total budgetary requirement of the proposal, which shall not exceed 5% of the total cost.

In special cases where the LGU was not able to implement the AFE activity within its approved duration and timeline, the LGU shall submit justification for the delay and request for the extension of the project duration as may be necessary. This extension shall not exceed three (3) months for short term projects and six (6) months for long term projects.

SECTION 28. The fund utilization and disbursements by the DA shall be subject to the usual government accounting and auditing rules, regulations, and protocols. The DA and the LGU shall ensure that all relevant documents, reports and other pertinent materials are, kept and in record.

SECTION 29. Limitation in the Use of Funds. —

The provision of grants for monetary support under the policy of CFA shall have the following limitations:

a) Only direct cost of the PPA consistent with Section 12 shall be funded by the DA.

b) Any changes in eligibility requirements and cost-sharing schemes shall be applicable only to incoming AFE proposals and not to affect existing AFE projects already covered by a CFA.

c) Should there be savings/unused funds after the agreed duration of physical implementation, the LGU cannot use it for purposes other than those agreed and specified in the CFA. Further, the LGU shall declare it in the fund utilization report specifying the reason for underutilization. Unused funds shall be returned to the Bureau of Treasury.

ARTICLE XI

Implementation Agreements and Conditions

SECTION 30. Memorandum of Agreements (MOA). —

The MOA shall be entered into between the LGU and the DA defining specific roles and responsibilities of each party, the fund counter-parting arrangements and releases, breakdown of the eligible expenditures, program management arrangements, financial reporting, monitoring and evaluation mechanisms, and other program details. It shall be explicit in the MOA that the AFE PPAs shall be carried out in its full term regardless of the change in the LGU Administration.

SECTION 32. n Grievances, Complaints and Appeals. —

The clearinghouse committee/secretariat shall handle any grievances, complaints, and appeals brought about by any concerned party during the implementation of the AFE PPAs under the CFA. Any of these issues and concerns shall be verified during the conduct of the periodic review and assessment meetings as well as the on-site field monitoring and validation by the DA.

SECTION 33. Accountability. —

The Local Chief Executive shall be in-charge and held accountable for the overall implementation of the CFA for AFE. The LCE shall provide the leadership in coordinating and managing the whole operations of the AFE PPAs.

Funds under the CFA, consisting of the DA share and the LGU counterpart shall be considered as grant funds under the LCE's responsibility in which its disbursement shall be accounted for by the DA and shall be subject to COA rules and regulations.

SECTION 34. Right to Terminate. —

In case of non-adherence or non-conformance to any provision of the MOA and/or the CFA, the DA and the LGU shall endeavor to settle the manner amicably in the following manner:

• A notice in writing shall be sent by the concerned party to the other party stating therein the basis for the non-adherence or non-conformance.

• The parties thereafter set a meeting for the purpose of discussing and settling the matter amicably.

• All agreements shall be reduced in writing and signed by the parties or their duly appointed representatives.

If no agreement is reached, it shall be the right of the DA to terminate the contract and demand the return of the grant or the remaining balance of the project funds. Further, the DA, if deemed necessary, shall file a complaint before the Office of the Solicitor General or the Secretary of Justice, depending on the nature of the controversy, following the rules of procedure for the said offices for dispute settlement where contending parties are government agencies, bureaus, or government-owned and controlled corporations. Alternative legal remedies may likewise be availed of.

ARTICLE XII

Monitoring, Evaluation, and Sustainability

SECTION 35. Continuous monitoring shall be conducted in which periodic progress reports shall be submitted by the LGU to the DA. These reports shall detail the status and progress made in the implementation of the AFE PPAs including the physical and financial accomplishments, and any issues and concerns that arose, if any, and how it is resolved. The progress reporting shall be facilitated during the periodic review and assessment meetings as stipulated in Section 22.

Further, the frequency of reporting and submission of progress reports shall be dependent on the duration of the project and based on the agreements of the DA and the LGU. Once agreed upon, the timeline for the submission of the progress reports and other monitoring reports such as the fund utilization reports shall be stipulated in the MOA and included as a deliverable in the Work and Financial Plan (WFP).

SECTION 36. The DA, as the funding agency, shall undertake on-site field monitoring and validation of the said AFE PPA using innovative tools such as but not limited to geo-tagging and other ICT/web-based monitoring system. This is to ensure that AFE activities are properly undertaken and that actual beneficiaries were provided with extension interventions stipulated in the WFP.

SECTION 37. Evaluation and Assessment of Performance and Sustainability. —

The implementation of the AFE PPAs under the CFA shall be subjected to a mid-term and project completion assessment through results monitoring and evaluation. Prior to the implementation of the AFE PPA under the CFA, relevant baseline data with regards to the target beneficiaries' socio-demographic and economic characteristics and farming activities shall be collected and form part of the AFE proposal. This is to serve as a reference during mid-term and project completion assessment and help in determining whether there were changes that happened to the beneficiaries of the AFE PPAs.

Further, a final evaluation shall be conducted three (3) years after completion of the AFE PPA. The final evaluation report will serve as the last report for the AFE PPAs under the CFA of the LGU and the DA. The report shall compare the information gathered as baseline data to their current levels and include discussions about the lessons learned from the implementation of the AFE PPAs. It can be conducted internally or outsourced, depending on the preference of the DA and the availability of funds for its conduct.

The prescribed format of the report shall be based on the previous results/impact evaluation conducted/commissioned by the DA. The DA shall ensure that an appropriate budget is allotted for the conduct of the evaluation activities mentioned which shall be derived from the regular budget.

The LGU shall cooperate in the results monitoring and evaluation in which relevant assistance is to be provided to facilitate the smooth implementation of the study. The Agriculture and Fisheries Councils (AFCs) at the municipal/provincial/regional level can also be tapped to assist in the monitoring and evaluation of AFE PPAs under the CFA.

Further, the DA is encouraged to publish the relevant results of the monitoring and evaluation reports in order to aid in the knowledge sharing, policy-making, and decision-making process, not only of the DA top management but of other key policymakers and decision-makers in government.

SECTION 38. CFA for AFE In-House Performance Review. —

The ATI through the Agriculture and Fisheries Extension Network will lead in the conduct of an in-house performance review to assess the CFA for AFE and discuss the experiences, issues and concerns, as well as the lessons learned from the implementation of the CFA for AFE among the DA bureaus, service offices, attached agencies and corporations, and their corresponding regional offices/units/centers who implemented the CFA for AFE.

ARTICLE XIII

Miscellaneous Provisions

SECTION 39. Separability Clause. —

The provisions in this IRR are hereby declared separable, and in the event that any portion or part has been declared by competent courts as unconstitutional and/or invalid, the other provisions that are not affected thereby shall continue to be in full effect and remain valid unless declared otherwise.

SECTION 40. Operational Guidelines. —

A supplemental guidelines to operationalize and implement the CFA for AFE shall be developed by each of the DA bureaus, service offices, attached agencies and corporations, and their corresponding regional offices/units/centers. This includes the establishment of the members of the clearinghouse committee/secretariat, the format of the AFE proposal, the timeline of each process involved in the implementation of the CFA, the format of the progress report and the evaluation report, and others. The supplemental guidelines must be developed and finalized six (6) months after the approval and effectivity of this IRR.

SECTION 41. Amendments. —

All rules and regulations, other issuances or parts thereof, which are inconsistent with the provisions of this IRR, shall be repealed or modified accordingly. Further, upon the review of the DA, any provision of this IRR shall be repealed or modified accordingly, subject to the approval of the DA Secretary.

ARTICLE XIV

Effectivity

SECTION 42. These rules and implementing guidelines on CFA for AFE shall take effect fifteen (15) days after its signing and publication in the official gazette or a newspaper of general circulation in the Philippines. This shall supersede other issuance inconsistent thereto and shall remain enforced unless otherwise revoked.

APPROVED AND PROMULGATED this 3rd day of January, 2020.

(SGD.) WILLIAM D. DAR, Ph.D.Acting Secretary

Published in the Manila Bulletin on March 4, 2020.

n Note from the Publisher: Copied verbatim from the official copy. Irregular numerical sequence.