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TABLE OF CONTENTS

ACRONYMS

CHAPTER 1: INTRODUCTION

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6
7
8
8
9
10

1.1
1.2
1.3
1.4
1.5
1.6

Key Project Principles


Project Goals and Objectives
Project Components
Sub-projects eligible for financing
Sub-projects not eligible for financing
Utilization of Community Grants

CHAPTER 2: FINANCIAL MANAGEMENT STRUCTURE


AND FUNCTIONS
2.1
2.2
2.3
2.4
2.5

Project Financial Management Structure and Functions


Financial Management Role of the Coordinating Teams
Barangay Sub-project Management Structure
Financial Management Role of the Community
Financial Management Functions

CHAPTER 3: FINANCIAL MANAGEMENT ROLE IN SUBPROJECT CONCEPTUALIZATION AND APPROVAL


3.1
3.2
3.3
3.4

Sub-project Conceptualization
Technical Assistance Fund
Sub-project Preparation and Development
Sub-project Consultation and Approval

CHAPTER 4: FUND RECEIPTS


4.1
4.2
4.3
4.4
4.5
4.6

DSWD Grant Funds


Local Cash Counterpart Contribution
Interest Earnings
Other Forms of Cash Receipts
Cash Receipts Internal Control Guidelines
Recording and Filing

CHAPTER 5: FUND DISBURSEMENTS


5.1
5.2
5.3
5.4
5.5
5.6
5.7

Transactions
Payments
Processing and Flow of Documents
Withholding Taxes
Supporting Documents
Cash Disbursement Internal Control Guidelines
Recording and Filing

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CHAPTER 6: PETTY CASH FUND


6.1
6.2
6.3
6.4
6.5

Expenses Covered by Petty Cash Fund


Establishment of Petty Cash Fund
Disbursement of Petty Cash Fund
Replenishment of Petty Cash Fund
Final Liquidation of Petty Cash Fund

CHAPTER 7: LOCAL COUNTERPART CONTRIBUTION


7.1
7.2
7.3
7.4

Classification
In Kind Contributions
Valuation and Costing
Recording and Filing

CHAPTER 8: BOOKKEEPING AND PREPARATION OF


REPORTS
8.1 Cash Book
8.2 LCC In-Kind Journal
8.3 Status of Sub-project Fund Utilization Report

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CHAPTER 9: UNUTILIZED COMMUNITY GRANT FUNDS 79


9.1 Kinds of Unutilized Grant Funds
9.2 Mechanics for the Utilization of Surplus, Left-over and Excess
Funds
9.3 Mechanics for the Utilization of Savings
9.4 Procedures in Determining Excess Funds
9.5 Procedures in Determining Existence of Savings
9.6 Use of Contingency

CHAPTER 10: FINANCIAL MONITORING SYSTEM


10.1 Financial Monitoring Activities
10.2 Monitoring Checklist

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CHAPTER 11: FINANCIAL MANAGEMENT SYSTEM FOR


KALAHI-CIDSS OPERATION AND MAINTENANCE
100
GROUPS/ASSOCIATIONS
11.1
11.2
11.3
11.4
11.5
11.6

Organizational Structure and FM Roles of Officers


Cash Receipts/Collections
Cash Disbursements/Payments
Recording and Filing
Determining Non-Cash Transactions
Preparation of Financial Reports

CHAPTER 12: BSPMC FORMS AND ANNEXES


12.1 BSBSPMC Forms
12.2 Annexes
11.3 Attachments

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ACRONYMS
AC
ACPP
ACT
AIC
AR
BA
BAC
BDC
BIR
BLGU
BSPMC
CBIS
CEAC
CERS
CF
CO
COA
CPA
CPS
CSW
DAC
DOD
DSWD
DV
EWT
ExeCom
FM
FMS
FO
GMP
GOCC
IGP
KALAHI-CIDSS
KC
LBP
LCC
LCE
LGU
MCT
MDC

Area Coordinator
Actual Community Procurement Packaging
Area Coordinating Team
Audit and Inventory Committee
Acknowledgment Receipt
Barangay Assembly
Bids and Awards Committee
Barangay Development Council
Bureau of Internal Revenue
Barangay Local Government Unit
Barangay Sub-Project Management Committee
Capacity Building and Implementation Support
Community Empowerment Activity Cycle
Community Employment Record Sheet
Community Facilitator
Central Office
Commission on Audit
Certified Public Accountant
Community Process Specialist
Criteria Setting Workshop
Deputy Area Coordinator
Deed of Donation
Department of Social Welfare and Development
Disbursement Voucher
Expanded Withholding Tax
Executive Committee
Financial Management
Financial Management System
Field Office
Government Money Payments
Government-Owned and Controlled Corporations
Income Generating Project
Kapitbisig Laban sa Kahirapan-Comprehensive and
Integrated Delivery of Social Services
KALAHI-CIDSS
Land Bank of the Philippines
Local Counterpart Contribution
Local Chief Executive
Local Government Unit
Municipal Coordinating Team
Municipal Development Council

Community Finance Manual

ME
MFA
MIAC
MIBF
MIT
MLGU
MOA
MTA
NGA
NGO
NOL
NPMO
NPMT
O&M
OR
PCF
PCPP
PCV
PIT
PO
PO
POW
PPT
PRA
PT
RCIS
RER
RFA
RFFP
RFR
RPD
RPM
RPMO
RPMT
SPA
SPI
TAF
TIN
TOR
TWG
VAT
VLCC

Municipal Engineer
Municipal Financial Analyst
Municipal Inter-Agency Committee
Municipal Inter-Barangay Forum
Monitoring and Inspection Team
Municipal Local Government Unit
Memorandum of Agreement
Municipal Trust Account
National Government Agency
Non-Government Organization
No Objection Letter
National Project Management Office
National Project Management Team
Operation and Maintenance
Official Receipt
Petty Cash Fund
Planned Community Procurement Packaging
Petty Cash Voucher
Project Implementation Team
People's Organization
Purchase Order
Program of Work
Project Preparation Team
Participatory Resource Allocation
Procurement Team
Regional Community Infrastructure Specialist
Reimbursement Expense Receipt
Regional Financial Analyst
Regional Finance Focal Person
Request for Fund Release
Regional Project Director
Regional Project Manager
Regional Project Management Office
Regional Project Management Team
Sub-Project Agreement
Sub-Project Implementation
Technical Assistance Fund
Tax Identification Number
Terms of Reference
Technical Working Group
Value-Added Tax
Voucher for Local Counterpart Contribution

Community Finance Manual

CHAPTER 1
INTRODUCTION
Key Project Principles
Project Goals and Objectives
Project Components
Sub-projects eligible for financing
Sub-projects not eligible for financing
Utilization of Community Grants

Community Finance Manual

Financial Management is one of the


significant activities and the most
critical in the implementation of subprojects. It refers to the efficient
handling of funds, ensures that assets
acquired are secured and that
management act and decide in the
best interest of its stakeholders.
Since one of the objectives of KALAHICIDSS Project is empowerment, the
communities are given authority to plan, control and make financial
decisions during Sub-project implementation. As such, they are primarily
responsible in making sure that sub-projects objectives are attained and
that there is proper accountability.

1. 1 Key Project Principles


The KALAHI-CIDSS Project is guided by the principles of LET-CIDSS:
Localized decision-making
Communities decide on the identification, preparation and prioritization of
projects to be funded.
Empowering
Building the capacity of communities to undertake their own problems,
manage, plan, implement and mobilize resources for their projects.
Transparent
Every amount spent for the projects is presented to the public through a
multi-level monitoring system and independent monitoring by NGOs and
media groups.
Community Prioritization
Each participating barangay shall submit a proposal to an inter-barangay
forum where most responsive projects are evaluated and prioritized for
funding.
Inclusive and Multi-stakeholders
The whole barangay assembly is involved with all participating sectors.

Community Finance Manual

Demand-driven
Communities are encouraged to prioritize their own needs, design their
own projects and decide on how resources are used.
Simple
All procedures and components of the project are kept simple to enable
all players to easily understand and become fully involved in the Project.
Sustainable
All barangay projects shall have viable long-term plans for operations and
maintenance and sustainability.

1. 2 Project Goals and Objectives


The KALAHI-CIDSS Project envisions the development of self-propelling
communities in high poverty incidence areas in the countryside, where
people actively participate, lead and propel development activities that
will improve the peoples overall quality of life. In support of this vision,
the Project provides opportunities to:
Empower local communities, involving delivery of capacity-building
inputs and the creation and institutionalization of community-based
mechanisms that will allow the people to freely exercise their right to
decide on issues affecting their own development. Emphasis is given to
vulnerable groups like the Indigenous Peoples, farmers, fisher folk, by
ensuring their inclusion in the decision-making process especially on
matters pertaining to resource allocation and use.
Improve local governance, both at the barangay and municipal levels,
by revitalizing local governance structures designed to encourage
community consultation and ensure transparency and accountability,
following the principles and processes of good governance as mandated
by the Local Government Code (Republic Act 7160). Through capacitybuilding sessions and other project interventions, poor communities and
their local governments are primed to undertake relevant community
development activities through collaborative partnership engagements.
Aid in the Reduction of Poverty through the provision of funds for
basic community infrastructure or common service facilities and other
relevant projects that address community-defined needs and
vulnerabilities. It is assumed that with empowered communities and
improved local governance, sub-projects of communities will be relevant,
successful and sustainable.

Community Finance Manual

1. 3 Project Components
The Project is comprised of the following components: Capability Building
and Implementation Support, Community Grants, Monitoring and
Evaluation, which are discussed in detail below:
Capability Building and Implementation Support
Social Mobilization and Community Organizing.
KALAHI-CIDSS mobilizes local communities to participate in the
Project through provision of technical assistance by facilitators and
community organizations.
Capacity Building and Technical Support.
KALAHI-CIDSS strengthens the capacity of local communities and
local government units to initiate, plan and implement, manage and
supervise barangay sub-projects, through the provision of technical
assistance, training and workshops.
Community Grants
The Project carries out community development sub-projects,
including investment in economic and social infrastructure,
environmental conservation measures and capacity building, through
the provision of grants to barangays.
The Project also carries out audits of the records, accounts and
financial statements of expenditures relating to the implementation
of community development sub-projects.
Monitoring and Evaluation
The Project strengthens the capacity of the National Project
Management Office and local communities to monitor and evaluate
implementation of the Project and barangay sub-projects,
respectively through the development of baseline data and
computerized management information system.

1.4 Sub-projects eligible for financing

Community Finance Manual

1. Physical infrastructures such as but not limited to farm-to-market


roads, small bridges or small irrigation systems;
2. Social service infrastructures such as classrooms, potable water
supply and clinics or sanitation facilities;
3. Common service facilities like post-harvest facilities (dryers, millers,
shellers, etc.), provided these will support existing production in the
area and supporting viable operations where an organizational and
financing plan can be presented;
4. Environmental protection such as watershed rehabilitation;
5. Capability building such as skills training; and,
6. Others, provided they are not included in the list of sub-projects that
cannot be funded by KALAHI-CIDSS as shown below.

1.5 Sub-projects not eligible for financing


1. Acquisition of weapons, chainsaws, explosives, pesticides, insecticides,
herbicides, asbestos and other potentially dangerous materials and
equipment and fishing boats and nets above the prescribed size and
weight of the Fisheries and Aquatic Resources Bureau;
2. Road construction into protected areas;
3. Use of project funds for purchase or compensation for land;
4. Micro-credit and livelihood activities which involve on-lending of project
funds;
5. Maintenance and operation of facilities provided with project funding;
6. Activities that have alternative prior sources of committed funding,
7. Recurrent government expenditures (e.g. salaries for government and
LGU staff);
8. Construction or repair of government offices, meeting halls and places
of religious worship,
9. Political and religious activities, rallies and materials;
10.

Salaried activities that employ children below the age of 16 years;

11.

Activities that unfairly exploit women or men at any age;

12.

Travel;

13.

Consumption items or events;

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14.

Assistance to, or training of, the military, police, national guard, or


other quasi-military organization or unit; and

15.

To pay for the performance of abortions as a method of family


planning or to motivate or coerce any person to practice abortion,
to pay for the performance of involuntary sterilization as a method
of family planning or to coerce or provide financial incentive to any
person to undergo sterilizations.

1.6 Utilization of Community Grants


Once the sub-project is approved, the Grant amount cannot be changed,
although re-allocation among the different components can be done
within the budget. If actual cost exceeds the approved budget, the
community will shoulder the difference, either by increasing their own
contribution or by accessing additional funds from local government units
or other funding sources. On the other hand, if the actual cost is lower
than the approved budget, e.g. the community incurred savings during
sub-project implementation, and the community decided not to use it, the
full amount shall be refunded to the DSWD KALAHI CIDSS Current
Account maintained by the DSWD Central Office. The said refund shall be
supported with Barangay Assembly Resolution waiving the communitys
rights to utilize the savings stating the reasons in detail. The refund can
either be made thru direct bank to bank transfer or thru over the counter
deposit. In any case, the community shall forward a copy of the transfer
notice or deposit slip to the DSWD-CO thru the DSWD-FO for reference
and use in the monitoring and reconciliation of balances of the Current
Account.
On the other hand, excess fund from approved community grant which
may no longer be needed by the community to complete the sub-project
shall be retained at the DSWD Central Office and shall no longer be
released to the concerned community except under the following
conditions (a) discovery during sub-project implementation of additional
works needed related to the approved sub-projects (b) actual local
counterpart contribution mobilized by the community is greater than the
amount committed and (c) the community incurred legitimate savings
during sub-project implementation. Otherwise, said fund shall be used to
finance other approved sub-projects.

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CHAPTER 2
FINANCIAL MANAGEMENT STRUCTURE
AND FUNCTIONS
Project Financial Management Structure and Functions
Financial Management Role of the Coordinating Teams
Barangay Sub-project Management Structure
Financial Management Role of the Community
Financial Management Functions

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2.1 Project
Functions

Financial

Management

Structure

and

The diagram below illustrates the financial management structure of


KALAHI-CIDSS Project
Central Office
National
Project
Management
Office

Finance
Service

Regional Office
Regional
Project
Management
Office

Manage
ment
Division

Area
Coordinating
Team

Municipal
Coordinating
Team

Municipal InterBarangay
Forum
(MIBF)

Barangay
Assembly and
Sub-project
Implementation

Headed by a National Project Manager, the NPMO is responsible for the


over-all management of the project. It is composed of DSWD organic staff
and contracted consultants and technical staff.
The Finance Service, headed by the Chief Finance Officer, is the primary
responsible in the over-all financial management of the Project. Since its
function is mainstreamed, it is mostly composed of DSWD organic staff
and some contracted consultants and technical staff.
Headed by a Regional Project Manager, the RPMO is responsible for the
day to day operations of the project. Its functions include but not limited
to implementation of national policies and regional directions and
strategies, provision of technical assistance and supervise work
performance of ACTs, manage engagement with the LGUs and other
stakeholders.
The Management Division is responsible in making sure that national
financial policies and directives of the Project are fully carried out. As
such, aside from their mainstreamed functions, they are expected to
monitor Project implementation and provide technical assistance.

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2.2 Financial Management Role of the Coordinating


Teams
The Area Coordinating Team (ACT), the frontline workers of the Project in
the field, is composed of an Area Coordinator, Deputy Area Coordinator,
Municipal Financial Analyst and Community Facilitators has the primary
responsibility of providing assistance to the communities in their exercise
of financial management.
The specific functions of each member are as follows:
Area Coordinator (AC)
Protect Project funds. As one of the co-signatories of the communitys
bank account, he/she ensures that all disbursement vouchers are
reviewed by the Municipal Financial Analyst before signing the checks.
Assist the communities in resource accessing.
Coordinate with Donors to ensure timely delivery of committed Local
Counterpart Contributions.
Evaluate the request of the communities for technical assistance fund.
Review, evaluate and sign Requests for Fund Release.
Review and approve all financial reports prepared by the Municipal
Financial Analyst and ensure that these and other financial documents
especially the original paid Disbursement Vouchers and its supporting
documents are submitted completely and on time to the RPMT.
Investigate finance-related issues and complaints and immediately
submit written report and recommendations to the RPMO to prevent
any possible misuse of funds.
Deputy Area Coordinator (DAC)
Act as an alternate co-signatory of all financial transactions at the
community level in the absence of the AC (i.e. Chapter 4.1.1 Sec. iv)
Provide adequate technical assistance to the different Barangay Project
Preparation Team (PPTs) in the preparation of sub-project concepts for
the Municipal Inter-Barangay Forum for Participatory Resource
Allocation (MIBF-PRA) so that proposals submitted are realistic,
especially in regards to the cost estimates.
Conduct technical review of the sub-project proposals submitted by the
communities. The review will include but not limited to the following:
Detailed cost estimates used in the proposed budget;
Assignment of monetary value to local contributions in kind; and
Assessment of the capability of communities to contribute.
Assist the Audit and Inventory Committee, through job coaching in
the:
inspection of the delivery of materials;
audit of materials inventory; and,

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valuation of unutilized materials


Monitor the physical progress of sub-project implementation and
regularly compare against the Municipal Financial Analysts records of
the communitys fund utilization.
Provide regular updates to the Area Coordinator.
Municipal Financial Analyst (MFA)
Provide technical inputs in the preparation and review of Program of
Works (POW) particularly on the reasonableness of costs and
appropriateness of items charged under the Indirect Costs.
Review all Requests for Fund Release (RFR) including completeness,
validity and consistency of data of all required supporting documents.
Maintain RFR tracking system.
Review and sign all Disbursement Vouchers prior to ACs signature of
check.
Assist the BSPMCs, including the different units or teams under them
through job coaching in a) setting up of the cash book and Local
Counterpart Contribution In-Kind Journal and recording of transactions,
b) doing Bank Reconciliation and c) preparing Status of Sub-project
Fund Utilization Report.
Monitor and validate financial sub-project status of the communities
through field visits.
Monitor delivery and utilization of LCC including Municipal Trust
Account based on the approved LCC Delivery Plan and provide timely
feedback to AC for appropriate action in case of potential delay.
Initiate Municipal Fiduciary Workshops.
Prepare and timely submit municipal financial monitoring reports to the
RPMT. Make sure that soft reports are properly backed-up with hard
copies.
Collect and timely submit Status of Sub-project Fund Utilization
Reports prepared by the Community Bookkeepers. Make sure that the
books of the BSPMCs are up-to-date and that they maintain complete
copies of all financial reports including Bank Snapshots/Statements
and Bank Reconciliation Statements.
Collect and timely submit original paid disbursement vouchers and its
supporting documents to RPMT thru the AC. Maintain an inventory of
all paid Disbursement Vouchers.
Provide regular financial updates to the MCT/MIAC/TWG and other
stakeholders.
Submit monthly feedback report (narrative) to the Regional Financial
Analyst as regards community financial management system.
Maintain complete file of all financial documents and reports and duly
acknowledged transmittal letters.
Provide regular updates to the Area Coordinator.

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Community Facilitator (CF)


Motivate the BSPMC Financial Management volunteers to perform their
functions.
Initially review Disbursement Vouchers as to completeness of
documents and validity of transactions.
Assist the BSPMCs, especially the Treasurers in installing a filing
system.
Monitor compliance of FM volunteers on the filing system installed.
Provide updates to MFA regarding the communities financial status.
Provide feedback on the over-all status of sub-project implementation
to the Area Coordinator.
To support KC implementation in the municipality, the MLGU is required
to form a composite team called Municipal Coordinating Team (MCT).
Their functions are the same as that of the ACT since they are expected to
gradually take over facilitation of the KC process by the third cycle.
However, the AC or DAC of the MCT can never be co-signatory of the
community accounts. Thus, either the Project hired Municipal Monitors
(MM) or the RFFP shall be the co-signatory of the community accounts.
Following are the MMs specific financial functions:
Municipal Monitor (MM)
Protect Project funds. As one of the co-signatories of the communitys
bank account, he/she ensures that all disbursement vouchers are
reviewed by the MFA before signing the checks.
Closely coordinate with MCT to ensure that:
Local Counterpart Contributions are timely delivered;
Requests for Fund Releases (RFRs) are timely prepared and
submitted to the RPMT; and
Finance-related issues and complaints are immediately reported to
the RPMO for appropriate action to prevent any possible misuse of
funds; and
Provide timely feedback to the Regional Financial Analyst as regards
community financial management system.
Apart from the ACT and MM, the Field Office (FO) shall create a Regional
Finance Focal Person (RFFP) who will be particularly responsible in
monitoring all financial transactions in case of on-going sub-project
implementation in phase out areas or where contracts of ACTs or
Municipal Monitors are terminated.
There shall be one RFFP per municipality except only when the FO sees
that she/he is responsible and capable to handle more than one. In case
where there should be more than one RFFP, it is mandatory that the FO
designate an FO-based RFFP to act as RFFP Coordinator. Following are the
roles and functions of the RFFP Coordinator and the RFFP.

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RFFP Coordinator
Assume full responsibility of Regional Financial Analyst in monitoring all
financial transactions of on-going sub-projects in phase out areas.
Render technical assistance to all designated RFFP to ensure validity
and accuracy of community fund disbursements.
Review the accuracy, completeness and validity of the RFR and the
accompanying documents of phase out areas with the assistance of the
RFA. He/She shall also review accuracy, completeness and validity of
the RFR and the accompanying documents of current areas in the
absence of RFA.
Certify correctness of the financial aspect of the RFR by signing the
Reviewed by portion.
Responsible in timely submission of all RFRs and financial reports to
the Central Office.
Coordinate with the RPMT all issues/concerns raised by the respective
RFFPs in the area.
RFFP
Replace the MM as co-signatory of the community bank account of all
on-going sub-projects where MMs contract is already terminated. As
such, to protect Project funds, he/she shall ensure that all
disbursement vouchers are reviewed by the Municipal Financial Analyst
before signing the checks.
Coordinate with the RFFP Coordinator to ensure validity and accuracy
of claims before approving payment.
Establish systems/strategies to facilitate disbursement of funds at the
community level to ensure that sub-project implementation is not
delayed.
Ensure that communities and MFA complies with the financial
reportorial requirements of the Project and in the submission of
original paid Disbursement Vouchers and its supporting documents to
the RPMT.
Ensure that community accounts are closed when sub-projects are
completed.
Provide timely feedback to the RFFP Coordinator.

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2.3 Barangay Sub-Project Management Structure


Barangay Assembly

Barangay
Development
Council

PSA
Volunteers

Project
Preparation
Team (PPT)

Barangay
Representation
Team (BRT)

Sub-Project
Management
Committee

Bids &
Awards
Committee

Audit and
Inventory
Team

O&M
Committee

Secretary

Treasurer

Bookkeeper

Procurement
Team

Project Implementation
Team

Monitoring and
Inspection Team

Unlike the rest of the teams, the functions of these two teams ceases
when sub-project implementation commences:
1) Participatory Situation Analysis (PSA) Volunteers, formed to lead
in the conduct of participatory situational analysis, from data gathering
to community validation. These volunteers are either elected or chosen
during the first barangay assembly. In a typical KC barangay, about
two to three persons from each purok are chosen to serve as a PSA
volunteer. In large barangays, this is a sizable group.
2) Project Preparation Team (PPT). These are community residents
chosen to assist in the preparation of community proposals which will
be recommended by the barangays for prioritization during the MIBFPRA. There are no limits to the number of people who can be chosen to
serve in this team. They can be as few as three people or as many as
required by more complex sub-projects.
The Barangay Representation Team (BRT) is a committee formed to
represent the barangay in Municipal Inter-Barangay Forums. They can
also be chosen or elected by the Barangay Assembly during the 1st BA
meeting, or can be elected during the 2nd BA, prior to the CSW.

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The overall management of the sub-project is the direct responsibility of


the Barangay Sub-Project Management Committee (BSPMC), formed on
or before the 2nd Barangay Assembly of the CEAC as a committee under
the Barangay Development Council (BDC). (The Local Government Code
allows the BDC to form sectoral or functional committees to assist it in
mobilizing peoples participation in local development efforts, preparing
barangay
development
plans
and
monitoring
and
evaluating
implementation of national or local programs.)
Under the Barangay Sub-Project Management Committee (BSPMC), the
barangay residents may decide on various teams to implement the subproject. However, these three teams are mandatory: Procurement
Team, Sub-Project Implementation Team and Monitoring and
Inspection Team.

2.4 Financial Management Role of the Community


The primary role of the community is to implement the approved subproject, ensure that its objectives are attained and that there is proper
accountability. The community shall organize itself for this purpose as
indicated in the community organizational chart.
In addition, the
community members shall have the following responsibilities:
Attend barangay assemblies.
Review the sub-project implementation plan as well as the budget.
Monitor sub-project implementation, including attendance to
biddings and inspection of deliveries.
Call the attention of the Sub-Project Management Committee if full
transparency is not being practiced or if there are negative
observations like:
no publication or announcement of bidding, approved contracts
and expenditures
no barangay assembly is called to make a report to the
community of the project status and fund utilization
questionable conduct of bidding, sub-standard materials used,
implementation not according to program of work, etc.
Report inaction by the BSPMC to the Community Facilitator, Area
Coordinator, or direct to the DSWD Grievance and Complaints Unit
Provide counterpart contribution (land, labor, materials, etc.)
Participate in the operations and maintenance of the sub-project
after completion.

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2.5 Financial Management Functions


The following teams and committees are responsible for individual
functions pertinent to the financial management of KALAHI-CIDSS
Project.
Sub-project Management Executive Committee (Execom)
Composed of the Chairperson, Punong Barangay (if he is not elected
as the BSPMC Chair; if the Punong Barangay is the BSPMC Chair,
then the BDC shall elect one representative from among the
NGO/PO representatives in the BDC), One Kagawad chosen by the
Barangay Council, Treasurer, Heads of the different Teams and
Chairperson of the Project Preparation Team (since the work of the
Team ends after the approval of the sub-project).
Approves Weekly Schedule of Disbursements.
Elects one (1) member for Bids and Awards Committee.
Convenes to discuss and approve reports, clarifies issues and
prepare narrative/explanatory report, catch up plan and revised
Schedule of Fund Release if necessary.
Holds Barangay Assembly to present status of physical and financial
accomplishments and addresses issues and questions raised.
Audit and Inventory Committee (AIC)
Acts as the communitys watchdog since they are independent from
other implementation units.
Its Head sits as non-voting member of the Bids and Awards
Committee (BAC).
Checks compliance of the BSPMC with the provisions of the KC
Community Finance Manual/Guidelines. As such the team shall:
o review Disbursement Vouchers and its supporting documents to
ascertain validity, accuracy and completeness of the
procurement and financial transactions.
o conduct surprise cash counts.
o conduct regular inventory of all properties acquired under the
sub-project.
o pre-audit petty cash replenishments.
o visit the sub-project to validate physical and financial status.
o review and certify records and reports of the Bookkeeper.
Provides feedback report to Barangay Development Council (BDC).
The team is composed of at least three members selected by the
community.

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Community Finance Manual

Project Implementation Team (PIT)


Co-Prepares and endorses Weekly Schedule of Disbursements to the
Execom.
Prepares the following documents for the approval of the BSPMC
Chairperson:
o Daily Construction Logbook
o Physical Accomplishment Reports
o Statement of Works Accomplished
Reviews and signs time sheets and community employment record
sheets as recommending authority for labor payments.
Its team head approves requests for petty cash fund.
The team is composed of at least three members selected by the
community.
Bids and Awards Committee (BAC)
Composed of the Treasurer, Head of the Project Preparation Team
and one (1) member (except barangay officials) to be elected by
Execom.
In charged of ensuring that the BSPMC abides by the standards set
forth in the Community Procurement Manual.
Specifically, they are tasked to:
o advertise/Post invitation to bid
o conduct pre-procurement and pre-bid conferences
o determine eligibility of prospective bidders
o receive bids
o conduct the evaluation of bids with assistance of the TWG
o undertake the post-qualification proceedings
o recommend the award of contract to BSPMC Chairperson. When
BSPMC Chairperson disapproves the recommendation, such
disapproval shall be based on valid, reasonable and justifiable
grounds to be expressed in writing, copy furnished the BAC.
Monitoring and Inspection Team (MIT)
In charged of monitoring the progress of
sub-project
implementation.
Validates the physical accomplishments based on reports prepared
by the Implementation Team and the approved detailed work and
financial plan and make appropriate recommendations to BSPMC
Chairperson.
Ensures that delivery of material, supplies and services and its
utilization are properly accounted and monitored. As such the team
shall (i) spot check actual deliveries and utilization of construction
materials and (ii) check entries made in the construction materials
record, tools & equipment record, construction daily logbook and
other records of the sub-project.
The team is composed of at least three members selected by the
community.

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Procurement Team (PT)


In charged of procurement for the sub-project. As such, the team
shall:
o prepare procurement documents
o act as Canvassers
o prepare and finalize Planned Community Procurement Packaging
(PCPP) & Employment Record Sheet (ERS) with the assistance of
DAC
o assist in the presentation of PCPP and ERS during Barangay
Assembly
o receive and record bids/quotations
o act as Secretariat to the Bids and Awards Committee
o assist in updating the status of ACPP and ERS
Prepares the community procurement plan.
Acts as the Secretariat of the BAC.
The team is composed of at least three members selected by the
community.
Treasurer
The Barangay Treasurer is automatically designated as the BSPMC
Treasurer.
Acts as one of the co-signatories of the communitys bank account.
She/He ensures that funds are utilized as intended.
Custodian over the funds and properties of the sub-project.
Acts as the disbursing officer of the sub-project.
Prepares the following documents:
o Breakdown of estimated sub-project cost in the Program of
Work, if theres no contracted Service Provider.
o Proposed Schedule of Fund Releases/Tranches
o Local Counterpart Contribution Plan
o Vouchers for receipts of LCC for SPI
In charged in the preparation of Requests for Fund Release (RFR)
and gathering of its supporting documents.
Posts list of donors and amount of donations in the Barangay Hall or
public place.
Submits original Disbursement Vouchers (DV) and its supporting
documents to the RPMT thru the AC.
Reports financial status during barangay assemblies.
Maintains a complete set of photocopies of all RFRs, DVs and other
financial documents.
Regularly updates the checkbook (i.e. cash in, cash out, cumulative
balance).
Bookkeeper
Records TAF receipts and utilization in the TAF Journal.
Records all receipts and utilization of funds in the Cash Book.
Records all LCC deliveries in the LCC Journal.

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Community Finance Manual

Prepares Status of Sub-project Fund Utilization on a monthly basis


or when requesting for fund release.
Prepares monthly Bank Reconciliation Statement.
Ensures that books are updated.

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CHAPTER 3
FINANCIAL MANAGEMENT ROLE IN
SUB-PROJECT CONCEPTUALIZATION
AND APPROVAL
Sub-project Conceptualization
Technical Assistance Fund
Sub-project Preparation and Development
Sub-project Consultation and Approval

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Community Finance Manual

3.1 Sub-project Conceptualization


Once appropriate intervention to address identified needs is approved by
the Barangay Assembly, the Head of Project Preparation Team (PPT)
accomplishes Sub-project Concept Form (BSPMC Form No. 1) with the
technical assistance of the Project Engineer and Municipal Financial
Analyst.
In cases where intervention identified are technically
complicated and require feasibility study to determine their viabilities such
as but not limited to:
Water Supply with difficult water sources
Rural Electrification
Small Communal Irrigation
Concrete and Suspension Bridges
Road Construction/Improvement in difficult terrain
Survey and design for drainage canal (large sections that require
structural designs, multiple units that require reconnaissance survey
to establish inverts and point of discharge)
Feasibility studies for enterprise development sub-projects and
other special technical proposals that will require such

the PPT Head can request for Technical Assistance Fund (TAF) to engage
qualified service provider to conduct studies and prepare plans.

3.2 Technical Assistance Fund


a. Technical Assistance Fund (TAF) is a fund provided by the Project to
communities with complicated proposals that will require technical
expertise that are not available in the community like the
aforementioned. The TAF entitlement of the municipality is equal to the
number of participating barangays multiplied by the approved amount
plus local counterpart contributions.
b. The TAF is NOT accessible to interventions already with available proforma plans, design and bill of quantities like Day Care Centers, School
Buildings, Health Stations, concrete box culvert and other vertical
structures for which the DSWD Field Offices have existing plans.
c. As soon as all identified interventions are approved by the respective
Barangay Assembly, the MIBF shall convene and pass a Resolution to

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Community Finance Manual

avail their municipal allocation and engage qualified service provider.


They shall also elect a representative barangay who will lead in the
engagement of all service providers.
d. Upon issuance of the MIBF Resolution, the elected lead barangay shall
secure a Barangay Council Resolution authorizing the BSPMC
Chairperson, Barangay Treasurer and the Area Coordinator to open a
current/checking account with the nearest Land Bank of the Philippines
branch in the name of KALAHI-CIDSS (name of barangay) for both
grant fund and local counterpart cash contributions.
e. The Treasurer shall apply for additional bond premium to the
Treasury in case premium paid is insufficient to cover
maximum accountability determined by computing the
amount of checks to be signed per month. Payment shall be
against the LCC cash.

National
current
average
charged

f. Meanwhile, the ACT will generate a list of potential service providers as


basis for selection and engagement. The list must show the names of
individuals or firms with corresponding areas of expertise and
experience. The ACT may also coordinate with the regional and
provincial-based professional organizations (e.g. PICE, PICPA, etc.) for
their list of experts and their prevailing tariff for survey works, design,
plan preparation and cost estimating.
g. The potential service providers maybe invited during the criteria
setting and be oriented on the engagements terms of reference (TOR).
Procurement shall be done thru canvass. The Procurement Team (PT)
of the designated barangay will serve the canvass to the pre-listed
service providers. The Bids and Awards Committee will evaluate and
execute award based on compliance and responsiveness to the TOR.
h. The release of funds will require the following documents:
MIBF Resolution availing of the TAF for their prioritized subprojects, duly evaluated by the AC or DAC based on the TAF
Eligibility Checklist;
MIBF Resolution that designates a representative barangay who
shall be the contracting party of the service provider/s to be
engaged (for clustered barangays);
Current account with the LBP local branch, opened purposely for the
TAF by the designated barangay;
RFR representing the total cost needed for the engagement of
service provider/s but not more than the municipal entitlement,
with the following supporting documents:
Approved RFR;
MIBF Resolution to avail of the TAF;

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Community Finance Manual

MIBF Resolution on the designation of a barangay who shall


be the contracting party (for clustered barangays);
Bank Certification indicating the community current account
number or Bank Statement/Snapshot
Bond Premium of Treasurer
Copy of notarized contract of service provider, TOR specifying
the expected deliverables, time of submission and mode of
payments;
Matrix of barangays availing of the TAF with the sub-project
type and the name of corresponding service provider; and
Accomplished TAF Eligibility Checklist for each barangay
availing of the TAF.
i. The procedures leading to the release of TAF is the same as that of the
grant fund release as discussed in detail in Chapter 4 under Fund
Receipts.
j. The usual payment procedures as discussed in Chapter 5 under Fund
Disbursements shall apply. These are the eligible expenses for TAF:
Payment of professional services
Reimbursement of transportation expenses of service provider in
case he/she is not charging professional fee
Purchase of materials and supplies for plans preparation/technical
assistance
Reproduction of Plans
Other expenses related to sub-project preparation and quality
assurance activities
k. The TAF can NEVER be use to pay technical assistance provided by
government officials and employees for the Project.
l. For monitoring purposes, the service provider must submit a work plan
with timelines and manpower requirements to the PPT. The work plan
shall be monitored by the DAC and PPT vis--vis the service providers
work progress and expected outputs. The DAC with the municipal
technical staff shall conduct thorough review of the service providers
outputs as regards compliance with the TOR.
m. In the review of the service providers output, specifically the detailed
proposal, the concerned PPT with the assistance of the Municipal
Financial Analyst should ensure that sub-project cost includes enough
provision for Administrative Cost. Among others, the following shall be
considered in determining the amount:
Traveling expenses and per diem for a) members of the
Procurement in serving Canvass and Purchase Orders; b) the

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Community Finance Manual

Treasurer in processing payments, remittance of taxes, encashment


of payroll checks; c) the Bookkeeper in submitting monthly reports;
and d) other members of the BSPMC who are issued orders to
conduct business in relation to sub-project implementation.
Office Supplies including photocopying and printing of Sub-project
photos.
m. In no case shall payments to Service Providers be made without the
acceptance of the concerned PPT. Hence, it is very necessary that PPT
require the Service Provider to submit a work plan with timelines and
manpower. Said work plan will be the basis of the Project Engineer in
monitoring their work progress and compliance to expected outputs. In
case payments are made to any incomplete or incorrect outputs, those
who authorized the payment shall be made responsible in ensuring that
the outputs are corrected and/or liable to repay the amount paid to the
service provider.
n. If proposed intervention of the elected lead barangay is prioritized, the
current bank account for TAF shall serve as the current bank account for
community grants. Otherwise, it shall be closed immediately after final
approval of prioritized Sub-projects during MIBF-PRA. Any balance in the
grant released for TAF purposes shall be remitted back to the DSWDKALAHI CIDSS Central Office account thru direct bank to bank transfer or
thru over the counter deposit. In any case, the community shall forward a
copy of the transfer notice or deposit slip to the DSWD-CO thru the
DSWD-FO for reference and use in the monitoring and reconciliation of
balances of the Current Account.

3.3 Sub-project Preparation and Development


a. The Treasurer prepares the following after the PPT has prepared or
reviewed the detailed proposal for MIAC Technical Review:
Breakdown of Estimated Sub-project Cost in the Program of Work
(BSPMC Form No. 02) or to be prepared by the Contracted Service
Provider, if there is any
Proposed Schedule of Fund Releases/Tranches (BSPMC Form No.
05); and
Local Counterpart Contribution Plan (BSPMC Form No. 3).
b. After the MIAC review, the Treasurer shall revise the above documents
incorporating all their comments for presentation to the Barangay
Assembly.

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Community Finance Manual

c. Before signing for final approval, the BSPMC Chairperson should ensure
that all comments and agreements during the 3rd BA were integrated in
the POW.
d. Then, the Procurement Team prepares the Planned Community
Procurement Packaging (BSPMC Form No. 4).

3.4 Sub-project Consultation and Approval


There is community participation in the whole process of developing the
Sub-project. The Sub-project is identified as a result of a participatory
situation analysis. It is then developed by the Project Preparation Team
but is first presented and approved by the barangay assembly before
submission to the Municipal Inter-Barangay Forum (MIBF). Likewise, the
detailed proposal and budget, procurement plan and local counterpart
contribution plan are all presented to the barangay assembly for approval
prior to submission to MIBF. Issues or questions raised by the community
are addressed and suggestions are entertained. Revisions are made if
necessary. This process is the best mechanism for internal control as, the
entire community is involved and there is full disclosure of all the details
of the Sub-project.

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Community Finance Manual

CHAPTER 4
FUND RECEIPTS
DSWD Grant Funds
Local Cash Counterpart Contribution
Interest Earnings
Other Forms of Cash Receipts
Cash Receipts Internal Control Guidelines
Recording and Filing

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Community Finance Manual

4.1 DSWD Grant Funds


Represent the DSWD share of the total approved Sub-project Cost. The
grant fund entitlement of the municipality is based on the number of
barangays multiplied by the approved amount and are deposited directly
to the communitys current bank account through on-line crediting from
the DSWD KALAHI-CIDSS Special Account.
The diagram below shows the process of grant fund release.

CENTRAL

REGIONAL

MUNICIPAL

BARANGAY

DSWD
Central
Office

DSWD
Regional
Office

MIBF/ACT

BSPMC

Approve RFR;
prepare DV and
check and submit
to Servicing Bank

Servicing
Bank

Review and approve


RFR; Prepare Request
for Fund Transfer and
send copy to DSWDNPMO

Review and
endorse RFR to
DSWD-RPMO

Local
Branch

Submit RFR and


supporting
documents

DISBURSEMENT

4.1.1 Initial Fund Release


The activities leading to the release of funds start after the MIBF-PRA. The
communities whose Sub-project proposals are prioritized and approved
shall immediately undertake the following activities:
a. Secure Barangay Council Resolutions:

30

i.

Authorizing the Punong Barangay and the Project Management


Committee Chairperson to enter into a Tripartite Sub-project
Agreement (SPA) with the Municipal LGU and the DSWD.

ii.

Authorizing the BSPMC Chairperson, Treasurer and the KC Area


Coordinator to open a current/checking account with the

Community Finance Manual

nearest Land Bank of the Philippines branch in the name of


KALAHI-CIDSS (name of barangay) for all grants and local
counterpart cash contributions.
In the case of the elected lead barangay who already opened
an account for the TAF, the same may also be used when Subproject is prioritized.
The same account may also be used for subsequent cycle
implementations when proposed Sub-project of the barangay is
again prioritized. A Barangay Resolution, however, should be
passed in case there are changes in the signatories.
iii.

In the case where during Sub-project implementation the


BSPMC Chairperson intends to leave the barangay for a longer
period, the Barangay Assembly shall elect a replacement. After
the election, the Barangay Council shall execute a resolution
authorizing the duly elected replacement of the BSPMC
Chairperson as one of the signatories of the communitys
account.

iv.

Also, in cases where there is no Area Coordinator hired yet or


the hired Area Coordinator has gone on official leave, the
Barangay Council shall execute a Resolution authorizing the
Deputy Area Coordinator
to temporarily replace the Area
Coordinator as one of the signatories of the communitys
account. The execution of the Barangay Resolution for the
purpose shall be on the basis of the recommendation from the
RPMO. In no case shall the AC and DAC be authorized as cosignatories to the community bank account at the same time.

v.

The RMPO shall designate an RFFP to act as co-signatory of the


community bank account in any one of the following cases:

the AC/DAC/MM is remiss of his/her duties as such


there are no AC and DAC hired yet or MM for the third
cycle
there is still unfinished Sub-project implementation after
project phase out.

b. Open a current/checking bank account with the nearest Land Bank


of the Philippines

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Community Finance Manual

Requirements:
In accordance with the Memorandum of Agreement between the
DSWD and the LBP (Attachment 1), the following shall be required
from the communities to open a current/checking bank account:
1. MIBF Resolution approving the Sub-project
2. Barangay Council Resolution authorizing the BSPMC
Chairperson, Treasurer of the LGU Barangay and DSWD Area
Coordinator as signatories
3. Initial P1,000 deposit
4. Two (2) valid identifications of each authorized signatory
Secure
certification
from
the
branch
manager
that
a
current/checking bank account has been opened indicating the bank
account number. (See BSPMC Form No. 06)
Special Provision:
On the basis of the MOA between the DSWD and LBP, the bank shall
suspend any release from the account of the community beneficiary
found by DSWD to have violated the project principles. DSWD may
also request the LBP to apply other appropriate sanctions against
the said community account.
c. Complete the Tripartite SPA (See Attachment 3).
d. Treasurer to apply for additional bond premium.
Bond Requirement:
The Treasurer shall apply for additional bond premium to the
National Treasury in case premium paid is insufficient to cover
current maximum accountability determined by computing either of
the following:

the average amount of checks to be signed per month; or


the maximum amount of check to be signed during Sub-project
implementation; or
the amount of 1st tranche of community grant funds to be
released.

The amount shall be equivalent to the bond premium coverage of


such accountability (See Attachment 4). Payment shall be charged
against the Local Counterpart Contribution.

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Community Finance Manual

e. Prepare and submit Request for Fund Release (RFR) (BSPMC Form
No. 7) together with the requirements to the RPMO through the
ACT.
4.1.1.1 Processing the Request for Fund Release
BSPMC Level
a. The BSPMC shall submit the RFR and its accompanying documents to
the ACT within ten (10) working days after the MIBF-PRA.
ACT Level
a. The ACT reviews the RFR and its accompanying documents submitted
by the BSPMC and submit the same to the RPMO within five (5)
working days.
b. Members of the ACT who reviewed the accompanying documents to
the RFR shall sign in the Reviewed by and Date portions of the RFR
Review Sheet (Annex 10) corresponding to the document specified in
the sheet.
RPMO Level
a. The RPMO through the Regional Community Infrastructure Specialist
(RCIS), Regional Financial Analyst (RFA) and Community Process
Specialist (CPS) reviews the accuracy, completeness and validity of the
RFR and its accompanying documents. They shall issue certification
that they have conducted thorough review of the Sub-project
documents and that the Sub-project is technically feasible and
economically acceptable using the Cost Effectiveness Ratio. The RFA
signs the Reviewed by portion of the RFR and a fax copy, with the
accompanying documents, shall be sent to the National Project
Management Office (NPMO) within five (5) working days.
b. In the absence of the RFA, it shall be the RFFP Coordinator who will
review and sign the RFR.
c. All other pertinent documents submitted by the BSPMC shall be
retained at the RPMO for safekeeping which shall thereafter be
transmitted to the DSWD Resident Auditor within ten (10) days of the
following month together with the photocopy of the documents
previously transmitted to the NPMO.
d. RPMO staffs who reviewed the accompanying documents to the RFR
shall sign in the Reviewed by and Date portions of the RFR Review

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Community Finance Manual

Sheet (Annex 10) corresponding to the document specified in the


sheet.
e. The Regional Director/Project Manager shall be fully responsible and
accountable for all information that he/she certified/represented to be
correct in the RFR.
NPMT Level
a. The NPMO upon receipt of the RFR and other documents from the
RPMO immediately furnishes the NPMT-Financial Management Service
(FMS) copy of the MIBF Resolution enumerating the prioritized and
approved Sub-projects. Given that required documents are in order,
the NPMO shall have the National Project Director or Deputy National
Project Director approve/disapprove the RFR on the basis of the
recommending approval of RPMO.
b. The NPMO transmits/forwards the RFR with its accompanying
documents to the FMS within one (1) working day from receipt of the
same from the RPMO.
c. The FMS processes payment and transfers funds to the community
within four (4) days.
d. NPMT staff who reviewed the accompanying documents to the RFR
shall sign in the Reviewed by and Date portions of the RFR Review
Sheet (Annex 10) corresponding to the document specified in the
sheet.
e. On Fund Release, the NPMT-FMS shall furnish the RPMO and the DSWD
COA, through fax, the Notice of Fund Transfer (NFT). The RPMO
informs the ACT on the matter who shall in turn advice the BSPMC.
Likewise, the original copy of the NFT shall be sent to the BSPMC
Chairperson through the RPMO and ACT.

4.1.2
a.

Subsequent Fund Releases

The Treasurer prepares RFR when grant fund balance is only 10% of
the previous fund release and the Sub-project physical
accomplishment has reached the required progress depending on the
tranching availed by the community for the 2nd tranche and 90% for
the 3rd /final tranche. In case the grant fund balance is more than
10% of the previous fund release therefore not eligible to request for
the next tranche but said balance is not enough to pay current
obligation, the BSPMC shall submit justification stating the need for
the release of the next tranche. The justification which will be

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Community Finance Manual

endorsed by the ACT shall be attached to the RFR with a copy of the
Approved Purchase Order as proof of the obligation.
b.

Preparation of the Financial Monitoring and other Required Reports


are assigned to the following:
1. The Bookkeeper handles the Status of Sub-project Fund Utilization
(Annex 11).
2. The Sub-project Implementation Team handles the Physical
Progress Report (BSPMC Form 17 for infra sub-project or Form 17A
for non infra Sub-project).
3. Procurement Team handles the Actual Community Procurement
Packaging (BSPMC Form 19).
4. Operations and Maintenance Committee handles the Operations and
Maintenance Plan.

c.

Review and Validation of the reports are processed by the following


teams:
1. The Audit and Inventory Committee handles the Status of Subproject Fund Utilization.
2. The Monitoring and Inspection Team is in charged of the Physical
Progress Report.
3. The Project Implementation Team handles the Actual Community
Procurement Packaging.

d.

The Execom convenes to discuss and approve the reports, clarifies


issues and prepares narrative/explanatory report, catch-up plan and
revised Projected Schedule of Fund Releases if there are shortfalls in
accomplishment or request does not follow the projected schedule.

e.

The Execom also holds barangay assembly to present status of


physical and financial accomplishment and address issues or
questions raised. Minutes of the meeting shall be prepared and
submitted together with the RFR and reports to the ACT.

f.

The routing of the


process is the same
understood that all
Regional Director/
responsibility.

g.

On the process of fund release, the same procedure as that of initial


fund release shall be adopted.

documentation and the review and approval


as that for the initial fund release. It is always
representations contained in the RFR by the
Project Manager shall be their primary

4.1.3 Schedule of Fund Release and Required Supporting


Documents

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Community Finance Manual

The community grant funds shall be released in three tranches with the
following requirements:
1st tranche RFR
RPMO level
Barangay Council Resolutions
Sub-project Agreement
Local Counterpart Contribution Plan
Certifications on local contributions
Bond Premium of Treasurer
Notarized Deed of Lot Donation for titled lot or Quit Claim for nontitled lots
Proposals/Feasibility Study for Public Good Sub-projects
Hydraulic Analysis for water system Sub-project
NPMO level
Request for Fund Release
MIBF Resolution
Sub-project proposal for Enterprise and Human Resource
Development Sub-projects
Program of Works following the prescribed cost sharing and with
detailed estimates (with signature of Municipal Mayor and Barangay
Captain to conform LCC commitments)
Planned Community Procurement Packaging and Schedule of Inkind LCC
Procurement Action Plan
Local Counterpart Contribution for Sub-project Implementation
Monitoring Report
Bank Certification indicating the community current account number
or Bank Statement/Snapshot
Certificate of Review by the RCIS, RFA and CPS
Photographs of the proposed site (at least three). For water system,
source, reservoir and pipeline right-of-way; roads, photo covering
starting stations projected towards the mid-section or the whole
road right-of-way, if possible and photo projected from the end
station towards mid-sections
(For succeeding cycles) Certification from the Regional Director that
the
following
financial
requirements
pertaining
to
the
implementation of previous Sub-projects were duly complied with:
a) all Disbursement Vouchers together with the supporting
documents have been duly submitted, b) Established Petty Cash
Fund fully liquidated and c) Community funds fully utilized and/or
community bank accounts duly closed.
Operation and Maintenance Action Plan
RFR Review Sheet (Annex 10a)

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Community Finance Manual

2nd trance RFR


RPMO level
Narrative Report (if there is a big variance in physical & financial
accomplishment)
Actual Community Procurement Packaging
Minutes of Barangay Assembly Meeting
Photographs of Sub-project progress
Registered Deed of Lot Donation for titled lots
NPMO level
Request for Fund Release
Status of Sub-project Fund Utilization (Annex 11)
List of Checks Issued (Annex 9)
Local Counterpart Contribution for Sub-project Implementation
Monitoring Report
Physical Progress Report signed by the Municipal Engineer and the
DAC and Regional Community Infrastructure Specialist.
Bank Statement/Snapshot
Operation and Maintenance Final Plan with notarized Mutual
Partnership Agreement
Certification from the Regional Director that the requirement of
monthly submission of all DVs as of the immediate preceding month
to the FO/COA had been fully complied with
RFR Review Sheet (Annex 10b)
3rd and final tranche
RPMO level
Same documents as above except for Registered DOD for titled Lots
Proof of pending financial obligations e.g. Delivery Receipts, Billings
as attachment to Certification.
NPMO level
Request for Fund Release
Status of Sub-project Fund Utilization (Annex 11)
List of Checks Issued (Annex 9)
Local Counterpart Contribution for Sub-project Implementation
Monitoring Report
Physical Progress Report signed by the ME, DAC and RCIS
Bank Statement/Snapshot
Certification indicating the total cost of remaining materials to be
procured and total cost of labor and other related expenditures to
be incurred to complete the Sub-project signed by the Chairs of the
PT and the BSPMC and noted by the DAC
Certification of any pending financial obligations e.g. unpaid
delivered materials, services rendered but not yet paid (wages/

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Community Finance Manual

payroll) and other incurred but unpaid related expenditures signed


by the Treasurer, BSPMC Chair and noted by the DAC
Barangay Assembly resolutions confirming the certifications
Joint Inspection Report
Certification from the Regional Director that the requirement of
monthly submission of all DVs as of the immediate preceding month
to the FO/COA had been fully complied with.
RFR Review Sheet (Annex 10c)

The following tranching system on fund release of community grants, with


the corresponding required physical progress for 2nd tranche, shall be
allowed based on the recommendation of the RPM/RPD and upon approval
by the National Project Director /Deputy National Project Director:
1st tranche_
50%
51% to 60%
61% to 70%
71% to 80%

Required Physical Progress for 2nd tranche


30% in place
40% in place
50% in place
60% in place

In all cases, the required physical progress for the release of the 3rd and
final tranche shall be 90%.

4.2 Local Cash Counterpart Contribution


Cash counterpart contributions can come from congress people or from
the local government units out of their Internal Revenue Allotment.
Contributions coming from either the municipal or barangay LGU should
be contained in the Sub-project Agreement signed before the initial
release of grant funds. Allocation shall be evidenced by a provincial,
municipal or barangay council resolution appropriating funds for the
Project, in the case of LGU donors.

4.2.1

LCC Cash Counterpart Contribution for Capability


Building and Implementation Support (LCC for CBIS)

These are contributions which do not become part of the value of the
Sub-project but are intended to facilitate the conduct of activities of the
Project. Examples are cash expenses incurred during the conduct of
Community Empowerment Activity Cycle (CEAC). For this component,
donations are directly deposited to the Municipal Trust Account (MTA)
that is specifically opened to support the implementation of KALAHICIDSS Project in the municipality.

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Community Finance Manual

4.2.2

LCC Cash Counterpart Contribution for Sub-project


Implementation (LCC for SPI)

These are cash contributions that form part of the investment cost or
value of the sub-project. The minimum LCC cash for sub-project
implementation is fifteen percent (15%) of the grant component.
Said cash LCC shall be deposited in the community account prior to the
request of grant funds. If not deposited in full, delivery shall follow the
RFR tranching used for Grant Funds.
Cash donations are given to the community through the BSPMC and
deposited by the Treasurer to the same bank account as the grant. The
Treasurer shall issue a pre-numbered Acknowledgement Receipt (BSPMC
Form No. 21) for all cash donations. As proof that donations are deposited
to the community bank account, a copy of the validated Deposit Slip will
be provided to the Donor. However, in case where LCC cash is available
even prior to sub-project implementation or opening of communities
accounts, the Donor may deposit said cash in the Municipal Trust Account
opened by the MLGU for the Project. The Municipal Treasurer shall issue
an Official Receipt to acknowledge receipt. The cash shall be immediately
transferred to recipient communities as soon as respective accounts have
been opened.

4.3 Interest Earnings


Interest earnings accruing to the community bank accounts shall stay at
the account maintained for use of the community for project-related
activities (e.g. purchase of direct items or augmentation fund for admin
expenses).

4.4 Other Forms of Cash Receipts


4.4.1

Proceeds from Sale of Bidding Documents

These are cash received by the Treasurer as proceeds from sale of bidding
documents. The Treasurer shall issue a pre-numbered Acknowledgement
Receipt to interested bidders for the cash received and record it in the
logbook. These shall be used to pay or reimburse reproduction cost of
bidding documents and other expenses incurred during bidding activities.

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Community Finance Manual

4.4.2

Bid Security

A guarantee required to ensure that the successful bidder shall, within


five calendar days from receipt of the Notice of Award, sign the contract
with the BSPMC. It could be in a form of cash or certified check (cashiers
or managers check, bank draft, letter of credit or bank guarantee) but
never a Personal Check. Upon receipt, the Treasurer will issue a prenumbered Acknowledgement Receipt and will deposit the whole amount in
the Community Account. The validated deposit slip shall be attached as
part of the bidders documents. All securities of the non-winning bidders
will be refunded only after the winning bidder has signed contract with the
BSPMC. Bid Security of the winning bidder shall be refunded after posting
the performance security. These securities are not properties of the
BSPMC hence it shall never be used for other purposes.

4.4.3

Performance Security

A security posted by the winning bidder to guarantee its faithful


performance of its obligations under the contract prepared in accordance
with the bidding documents. This is equivalent to 5% of the contract price
and can either be in a form of cash or certified check (cashiers or
managers check). Upon receipt, the Treasurer shall issue a pre-numbered
Acknowledgement Receipt and shall deposit the whole amount in the
community account. This can only be refunded to the Contractor at the
end of the warranty period. Hence, the Treasurer shall record this amount
and its details in a logbook as accounts payable to make sure that the
BSPMC is aware that this amount is not available for disbursement. The
Bookkeeper shall likewise fully disclose in the Annex 11 the total amount
and deduct from the actual funds available for use.
In case where closing of community account is mandated by the Project,
the community shall require the Contractor to convert this performance
security to Bank Guarantee. Upon receipt of the Bank Guarantee, the
Treasurer shall prepare a Disbursement Voucher and shall issue a check
equal to the amount received.

4.5 Cash Receipts Internal Control Guidelines


The community shall observe the following internal control guidelines:
a. Only the Treasurer is authorized to receive any check or cash
contributions. He/She must issue pre-numbered Acknowledgement
Receipt, duly accomplished, dated and issued in sequential order.

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Community Finance Manual

b. The Barangay Assembly, through the information drive of the BSPMC


shall be encouraged to set a day (or a meeting) when community
members can give their cash contributions. This will lessen the
number of times that the Treasurer will keep going back to the LBP
branch since total collections can be deposited at one time.
b. All checks and cash contributions received for the day must be kept in
the cash box prior to deposit and should be deposited intact to the
bank not later than the following banking day.
c. The Audit and Inventory Committee and/or the Municipal Financial
Analyst should make surprise cash counts of undeposited collections
periodically.
d. Bookkeeping functions should strictly be done by a person different
from the one performing cashiering functions in order to maintain
check and balance.
e. List of donors and amount donated should be posted in the Barangay
hall for transparency purposes.

4.6 Recording and Filing


4.6.1

Recording

A. Receipt of Technical Assistance Fund


The Bookkeeper shall record all payments in the TAF Journal (BSPMC
Form 20). After utilization of the TAF, the Bookkeeper shall submit the
TAF Journal to DSWD Field Office thru the AC or DAC. The Treasurer shall
submit the DV and its supporting documents to the DSWD Field Office
thru the AC or DAC for submission to the COA. Both Bookkeeper and
Treasurer shall ensure that submission is evidenced by a transmittal
letter.
B. Receipt of DSWD Grant Funds
Based on the notice of fund transfer or bank snapshot, the Bookkeeper
will record receipt of funds in the Cash Book (Annex 12).
C. Receipt of Local Cash Counterpart
LCC for CBIS
Since cash for this component stays with the MLGU (i.e. direct deposit to
MTA) the Project will not record receipt until spent. The basis therefore of
the MFA to record counterpart is the actual expenditure or disbursement
from the MTA. Hence, the MFA will prepare a Voucher for Local

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Community Finance Manual

Counterpart Contribution (VLCC) (BSPMC Form No. 10) for each eligible
paid Disbursement Voucher charged against the MTA. On a monthly basis,
the MFA will record in the Municipal Local Counterpart Contribution
Journal for Capability Building and Implementation Support (Annex 8) all
VLCCs issued for the period.
LCC for SPI
On the basis of the Acknowledgement Receipt with attached validated
deposit slip issued by the Treasurer to the donors, the Bookkeeper will
record receipt of funds in the same Cash Book used for DSWD Grant
Funds.
D. Other forms of Cash Receipts (Bid and Performance Securities)
On the basis of the Acknowledgement Receipt issued by the Treasurer,
the Bookkeeper shall record cash receipts in the Cash Book. However,
these receipts must be earmarked as funds not available for use.
4.6.2

Filing

The Treasurer shall file all photocopies of RFRs and its supporting
documents in a folder and, together with the other financial documents,
shall file it in a secured cabinet. On the other hand, the MFA will
chronologically file all VLCCs and its supporting documents in a folder and
will keep it also in a secured filing cabinet.

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Community Finance Manual

CHAPTER 5
FUND DISBURSEMENTS
Transactions
Payments
Processing and Flow of Documents
Withholding Taxes
Supporting Documents
Cash Disbursement Internal Control Guidelines
Recording and Filing

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Community Finance Manual

On the disbursement of funds, the community grant funds released and


the Cash LCC of the proponent communities shall be treated as common
fund. The cost sharing indicated in the Program of Work (POW) shall be
strictly followed in the actual disbursement.

5.1 Transactions
Funds of the community may be used for the following:

Payment to suppliers or contractors for the procurement of supplies,


materials and works
Payment of overhead or administrative expenses e.g. office supplies,
per diem and communications
Payment of direct costs of the sub-project
Payment or remittance of withholding taxes

5.2 Payments
5.2.1

Payment to Outside Creditors consists of the following


guidelines:
a. All payments must be supported with valid evidences of
expenditure.
b. The Treasurer releases the check to the creditor and asks the
latter to sign the disbursement voucher and to issue an official
receipt. The Treasurer then writes the official receipt number
on the disbursement voucher.
c. Payments should be based on full delivery of materials and
services indicated in the approved Purchase Order/Contract.
In no case shall partial payments be made on partial
deliveries.
d. In the case however of purchase of indigenous materials (e.g.
lumbers, washed sand and gravel, bamboos, boulders), partial
payments may be allowed, provided that the schedule of
payment is indicated in the approved PO.

5.2.2

Payment of Labor/Wages are detailed below:

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Community Finance Manual

Withdraw the funds from the bank.


Release cash to individual payees.
Sign or affix thumb mark on the Employment
Record Sheet (See BSPMC Form No. 13). For
pakyaw contracts, check shall be in the name
of the Treasurer and payment shall be made
direct to pakyaw group members to prevent
the risk of the pakyaw leader running away
with the money.

Treasurer
Treasurer
Committee
members and
laborers

List of workers paid shall be posted in the


barangay bulletin board to make sure that
the community residents are able to check
whether there are ghost workers.
In case where claimant of payment is not the
Laborer, a duly signed Authority to Claim
must be provided.

5.3 Processing and Flow of Documents


This section provides a step-by-step process of payments. For easy
reference and understanding of the flow of documents, each BSPMC is
encouraged to create a flow chart.
Procedures/Activities
1.

Prepare Weekly Schedule of Disbursements


(See BSPMC Form No. 9) and submit it to
the BSPMC Chairperson.

2.

Deliberate and approve expenditures or


obligations listed in the Schedule of
Disbursements during its regular weekly
meeting. Determine availability of funds
from the cash book and sign the Schedule.
Submit complete and correct supporting
documents to the Treasurer.
Review the supporting documents and
compute the amount payable to creditors.

3.
4.

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Community Finance Manual

Responsible
Unit/Person
Project Implementation
Team & Treasurer
Execom

Project Implementation
Team or Creditor
Treasurer

Procedures/Activities
5.

Prepare Disbursement Voucher (See BSPMC


Form No. 8) and attach all supporting
documents. In the particulars of the DV, the
cost sharing between Grants and LCC
should be indicated. For example:

Responsible
Unit/Person
Treasurer

To pay for various construction


materials delivered and inspected
Gross Billing
- 100,000.00
Less: Tax (6%) (5,357.14)
Net Payment
94,642.86
Breakdown of Sources:
Grant
- 85,000.00
LCC
9,642.86
If
there
is
retention
infrastructure contracts):

money

(for

Deduct 10% from the payment for


progress billing. The Treasurer should
write this amount and the details in a
logbook as accounts payable to make
sure that the BSPMC is aware that this
amount
is
not
available
for
disbursement.
The Bookkeeper shall likewise fully
disclose in the Annex 11 the total
amount of retention and deduct from the
actual funds available for use.

For payment of labor or wages to laborers,


disbursement voucher and check is in the
name of the Treasurer who will release
payment to individual worker.

6.

46

Submit disbursement voucher with its


supporting
documents
and
approved
Schedule of Disbursements to the BSPMC
Chairperson.
Review and approve disbursement
vouchers.

Community Finance Manual

BSPMC Chairperson

Procedures/Activities
7.

Responsible
Unit/Person
Treasurer

Prepare checks and have them signed by


the BSPMC Chair.
8.
Put the following in one file folder and
Treasurer
submit the file to the MFA for review and
endorsement to the AC.
Checks
Disbursement
Vouchers
with
supporting documents
Approved
Weekly
Schedule
of
Disbursements
9.
Review the documents
Area Coordinating Team
10. Sign the DV prior to the approval of the
Municipal Financial
Area Coordinator
Analyst
11. Sign the checks
Area Coordinator
12. Release the checks to Suppliers and have
Treasurer
them signed the Received Payment
portion of the Disbursement Voucher. Ask
for Official Receipt.
The Area Coordinator should set specific day of the week for signing of
the checks in the ACT Office. Whereabouts should also be posted to
facilitate locating him/her in case of emergency disbursements.

5.4 Withholding Taxes


As a Government Project, KALAHI-CIDSS is charged with the duty to
deduct and withhold any internal revenue tax and to remit the same to
the Bureau of Internal Revenue pursuant to the National Internal Revenue
Code. Since the BSPMC is an ad hoc committee therefore not a registered
withholding agent, it shall use the Tax Identification Number (TIN) of the
Barangay Local Government Unit in its remittance of tax withheld and
issuance of tax certificates.
Definition of terms:
a. Withholding Taxes is a systematic way of collecting taxes at source.
It is an indispensable method for collecting taxes in order that the
government can obtain adequate revenue. It is important to withhold
taxes because it a) encourages voluntary compliance, b) reduces cost
of collection effort, c) prevent delinquencies and revenue loss and d)

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Community Finance Manual

prevent dry spells in the fiscal standing of the government by


providing stabilized cash flows throughout the taxable year.
b. Expanded Withholding Tax (EWT) - is a kind of withholding tax
which is prescribed on certain income payments and is creditable
against the income tax due of the payee for the taxable quarter/year
in which the particular income was earned.
BIR Form
No.
1601-E
1601-E
1601-E
1601-E
1601-E
1601-E

Description
Income payments to prime contractors/subcontractors Individual
Income payments to prime contractors/subcontractors Corporate
Income payments made by the government to
its local/resident suppliers of goods Individual
Income payments made by the government to
its local/resident suppliers of goods - Corporate
Professionals (lawyers, CPAs, engineers, etc.),
talent fees paid to individuals - If the current
years gross income is P720,000 and below
Professionals (lawyers, CPAs, engineers, etc.),
talent fees paid to individuals - If the current
years gross income exceeds P 720,000

Tax
Rate
2%
2%
1%
1%
10%
15%

c. Value-Added Tax is a form of sales tax. It is a tax on consumption


levied on the sale, barter, exchange or lease of goods or properties
and services in the Philippines and on importation of goods into the
Philippines. It is an indirect tax, which may be shifted or passed on to
the buyer, transferee or lessee of goods, properties or services.
d. Final Withholding Tax is a kind of withholding tax which is
prescribed on certain income payments and is not creditable against
the income tax due of the payee on other income subject to regular
rates of tax for the taxable year. Income tax withheld constitutes the
full and final payment of the Income Tax due from the payee on the
particular income subjected to final withholding tax.
e. Withholding Tax on Government Money Payments (GMP) Percentage Taxes - is the tax withheld by National Government
Agencies (NGAs) and instrumentalities, including government-owned
and controlled corporations (GOCCs) and local government units
(LGUs), before making any payments to non-VAT registered
taxpayers/suppliers/payees.

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Community Finance Manual

BIR Form
No.
1600
f.

Description
Persons exempt from VAT under Section 109v
(final)

Tax
Rate
3%

Withholding Tax on GMP - Value Added Taxes (GVAT) - is the


tax withheld by National Government Agencies (NGAs)
and
instrumentalities, including government-owned and controlled
corporations (GOCCs) and local government units (LGUs), before
making any payments to VAT registered taxpayers/suppliers/payees
on account of their purchases of goods and services.
BIR Form
No.
1600
1600

Description
VAT Withholding of Purchase of Goods
VAT Withholding of Purchase of Services

f. Tax Base is the measure upon


determination of tax liability is based.

which

the

Tax
Rate
5%
5%
assessment

or

g. Any casual or single purchase of P10,000 and below from local/


resident suppliers with whom the barangay has single transaction is
exempt from creditable (expanded) withholding tax. However, the
mandatory withholding tax must be duly complied with for single
purchase of P10,000 and below from suppliers with whom the
barangay has two or more transactions. In all cases, withholding tax
on Government Money Payments and its subsequent remittance to the
Government must be duly complied with.
h. The returns shall be filed and the tax paid on or before the tenth (10th)
day of the month following the month in which withholding was made
except for taxes withheld for December which shall be filed/paid on or
before January 15 of the succeeding year.
i. The return shall be filed and the tax paid with the Authorized Agent
Bank (AAB) of the Revenue District Office (RDO) where the
municipality belongs. In places where there are no AABs, the return
shall be filed and the tax paid with the Revenue Collection Officer or
the duly Authorized Municipal Treasurer, who will issue a Revenue
Official Receipt.
j. Treasurers who fails to collect and remit taxes or refund excess
withholding tax shall be personally liable, upon conviction, to a penalty
equal to the total amount of the tax not withheld, or not accounted for
and remitted or to a penalty equal to the total amount of refunds
which was not refunded to the supplier resulting from any excess of
the amount withheld over the tax actually due on their return.

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Community Finance Manual

ILLUSTRATIONS:
a) Payment of Goods
An invoice in the amount of PhP 100,000.00 was presented to the
Treasurer for payment of materials delivered by ABC Company.
Upon review of the documents supporting the claim, the Treasurer
found it complete and compliant to the Project policies and
guidelines.
Question 1: How much should the Treasurer pay assuming ABC Company
is a VAT-registered supplier? How much is the withholding tax?
Question 2: How much should the Treasurer pay assuming ABC Company
is a NON-VAT registered supplier? How much is the withholding tax?
Solution to Question 1: VAT Supplier
Step 1 Compute for the Tax Base
Tax Base

PhP 100,000 112% = PhP 89,285.71

Step 2 - Compute for Withholding Tax:


Expanded Withholding Tax Value Added Tax
Total Withholding Taxes

PhP 89,285.71 x 1% = PhP 892.86


PhP 89,285.71 x 5% = PhP 4,464.29
= PhP 5,357.14

Step 3 Compute for net payment


Total amount of Invoice
Less: Withholding Taxes
Net Payment

PhP 100,000.00
(5,357.14)
PhP 94,642.86

Therefore:
i) Total amount of check payable to ABC Company
PhP94,642.86.
ii) Total amount of check payable to BIR is PhP5,357.14.
Solution to Question 2: NON-VAT Supplier
Step 1 Compute for the Tax Base
Tax Base

PhP 100,000

Step 2 - Compute for Withholding Tax:

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Community Finance Manual

is

Expanded Withholding Tax Percentage Tax


Total Withholding Taxes

PhP 100,000 x 1% = PhP 1,000.00


PhP 100,000 x 3% = PhP 3,000.00
= PhP 4,000.00

Step 3 Compute for net payment


Total amount of Invoice
Less: Withholding Taxes
Net Payment

PhP 100,000.00
(4,000.00)
PhP 96,000.00

Therefore:
i) Total amount of check payable to ABC Company
PhP96,000.00.
ii) Total amount of check payable to BIR is PhP4,000.00.

is

b) Payment to Contractors
Recoupment of Mobilization Fee
The contractor may be allowed to collect Mobilization Fee of up to 15% of
total contract cost. In such case, the amount collected must be
deducted/recouped from the progress billings computed based on the
physical accomplishment indicated in the billing. The Mobilization Fee,
however, shall be fully recouped upon reaching 80% physical
accomplishment.
Deduction of Withholding Tax
The corresponding Withholding Taxes shall also be deducted from the
total billing using the rates aforementioned. Payment for cash advance is
not subject to Withholding Tax.
Deduction of Retention Fee
Retention fee refers to the 10% amount retained from all progress billings
to cover uncorrected discovered defects and third party liabilities. This is
mandatory for all contracts with PhP 1M or more in addition to
performance security. For contracts with less than PhP 1M, retention fee
is only deducted from progress billings when there is no performance
security posted. The retention fee, if not called, shall be refunded to the
contractor after the expiration of the warranty period. The refund shall
not be subjected to Withholding Tax.
In case where closing of community account is mandated by the Project,
the community shall require the Contractor to convert this Retention Fee
to Bank Guarantee or Managers check or Cashiers check from a
reputable bank. Upon receipt of the Bank Guarantee, the Treasurer shall

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Community Finance Manual

prepare a Disbursement Voucher and issue a check equal to the amount


of retention.
Below are illustrations on how to compute payment of progress billings for
contracted subprojects:
1.

1st Progress Billing (at 30% physical accomplishment)

Contract Cost
Mobilization Fee (15%)

500,000
75,000

Gross Billing (500,000 x 30%)


Deductions:
Recoupment of Mobilization Fee (75,000 x 30%)
Retention Fee (150,000 x 10%)
Withholding Tax:
Expanded (150,000/1.12 x 2%)
VAT (150,000/1.12 x 5%)
Total Deductions

150,000
(22,500)
(15,000)
(2,679)
(6,696)
(46,875)

Net Billing*

103,125

*If Contractor posted performance security, the Net Billing would be


118,125.00 (no deduction of retention fee since the contract is less than
PhP 1M).
2. 2nd Progress Billing (at 80% physical accomplishment)
Contract Cost
Mobilization Fee (15%)
Accomplishment to date (500,000 x 80%)
Less: Previous Billing (500,000 x 30%)
Gross Billing
Deductions:
Recoupment of Mobilization Fee (75,000x100%)
Less: Recoup of Previous Billing (75,000x30%)
Net amount to be recouped in this Billing
Retention Fee (250,000 x 10%)
Withholding Tax
Expanded (250,000/1.12 x 2%)
VAT (250,000/1.12 x 5%)
Total Deductions
Net Billing*

500,000
75,000
400,000
(150,000)
250,000
75,000
(22,500)
(52,500)
(25,000)
(4,464)
(11,161)
(93,125)
156,875

*If Contractor posted performance security, the Net Billing would be


181,875.00 ((no deduction of retention fee since the contract is less than
PhP 1M).

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Community Finance Manual

3. 3rd and Final Billing (at 100% physical accomplishment)


Contract Cost
Mobilization Fee (15%)

500,000
75,000

Accomplishment to date (500,000 x 100%)


Less: Previous Billing (500,000 x 80%)
Gross Billing
Deductions:
Retention Fee (100,000 x 10%)
Withholding Tax
Expanded (100,000/1.12 x 2%)
VAT (100,000/1.12 x 5%)
Total Deductions
Net Billing*

500,000
(400,000)
100,000
(10,000)
(1,786)
(4,464)
(16,250)
83,750

*If Contractor posted performance security, the Net Billing would be


93,750 (no deduction of retention fee since the contract is less than PhP
1M).

c) Payment of Professional Fees (Service Providers)


The community project of Barangay Poblacion which is
Construction of Hanging Bridge is prioritized during MIBF-PRA.
Due to its complexity, the MIBF decided to award them the
remaining or unrequested TAF to compensate hiring of Civil
Engineer expert in supervising construction of bridges. Upon
community project completion, the contracted Civil Engineer
submitted his Billing in the amount of P54,542.85 for payment.
The Treasurer found that all required supporting documents are
attached in the claim.
Question 1: How much should the Treasurer pay assuming the contracted
Civil Engineer is a NON-VAT registered? How much is the withholding tax?
Solution to Question 1: NON-VAT Supplier
Step 1 Compute for the Tax Base
Tax Base

PhP 54,542.85

Step 2 - Compute for Withholding Tax:


Expanded Withholding Tax Value Added Tax
Total Withholding Taxes

53

PhP 54,542.85x10% = PhP 5,454.28


PhP 54,542.85x 3% = PhP 1,636.29
= PhP 7,090.57

Community Finance Manual

Step 3 Compute for net payment


Total amount of Invoice
Less: Withholding Taxes
Net Payment

PhP 54,542.85
(7,090.57)
PhP 47,452.28

Therefore,
i) Total amount of check payable to Service Provider is
P47,452.28.
ii) Total amount of check payable to BIR is P7,090.57.

5.5 Supporting Documents


Generally, the following are the supporting documents:

Evidence
Evidence
Evidence
Evidence

of
of
of
of

expenditure or liability
receipt of goods and services
payment
receipt of payment

A. For the utilization of Technical Assistance Fund (TAF):


i. Payment of Professional Services
1. Minutes of pre-Procurement Meeting
2. Canvass Forms
3. Minutes of Opening of Canvass
4. Abstract of Canvass
5. Minutes of Evaluation
6. Notice of Award
7. Notarized Contract with Service Provider
8. Billing Statement
9. Certification from the AC or DAC, PPT and Municipal Engineer on
the actual accomplishments of the Service Provider
10. Disbursement Voucher with photocopy of check
11. Official Receipt or Acknowledgement Receipt
ii. Purchase of materials and supplies for plans, reproduction of plans
and others
1. Minutes of Pre-Procurement Conference
2. Canvass form
3. Minutes of Opening of Canvass
4. Minutes of Evaluation of Canvass
5. Abstract of Canvass

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Community Finance Manual

6. Purchase Order
7. Sales/Charge Invoice and/or Delivery Receipt
8. Certification of Acceptance and Inspection (certification can also
be indicated in the PO)
9. Disbursement Voucher with photocopy of check
10. Official Receipt
iii. Reimbursement of Transportation Expenses of Service Provider
1. Special Order issued by the PPT, approved by the AC or DAC and
concurred by the Municipal Engineer
2. Approved Itinerary (details of travel)
3. Certification from the AC or DAC, PPT and Municipal Engineer on
the actual accomplishments of the Service Provider
4. Reimbursement Expense Receipt
iv. Payment for the training on operation and management plans for
income-generating sub-projects or those with cost recovery scheme
Refer to Chapter 5.5 Section E for list of supporting documents.
It is reiterated that in no case shall payments to service providers be
made without the acceptance of the concerned PPT. In case payments are
made to any incomplete or incorrect outputs, those who authorized the
payment shall be made responsible in ensuring that the outputs are
corrected and/or liable to repay the amount paid to the service provider.
B. Daily Rate Basis Laborers
1. Daily Time Record
2. Employment Record Sheet
3. Disbursement Voucher with photocopy of check
C. Direct Contracting of Labor or Pakyaw
1. Contract of Agreement
2. Composition of Pakyaw Group with corresponding
percentage of share
3. Statement of Work Accomplished
4. Employment Record Sheet
5. Disbursement Voucher with photocopy of check

rates

or

D. Honoraria To Committee Members


Honoraria shall be charged against cash Local Counterpart Contribution.
Payment should only be made if and when there is allocation in the
approved POW. If the detailed cost estimate of the approved POW does
not specify the list of recipients, the BA shall issue a resolution naming
the recipients and their equivalent honorarium.

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1.
2.
3.
4.
5.

BA Resolution
Accomplishment Report from each payee
Time Sheets
Employment Record Sheet
Disbursement Voucher with photocopy of check

E. Training Expenses
1. Approved Training Design and Budget
2. Minutes of Pre-Procurement
3. Canvass Forms
4. Minutes of Opening
5. Minutes of Evaluation
6. Abstract of Canvass
7. Notice of Award
8. Notarized Contract with the trainers
9. Training Completion Report with attached Attendance Sheet
10. Disbursement Voucher with photocopy of check
11. Official Receipt or Acknowledgement Receipt
F. Establishment of Petty Cash Fund
1. Minutes of Execom Meeting approving the amount of Petty Cash Fund
2. Disbursement Voucher with photocopy of check
G. Replenishment of Petty Cash Fund
1. Petty Cash Vouchers with Supporting Documents
2. Petty Cash Liquidation Summary
3. Disbursement Voucher with photocopy of check
H. Payment of Goods to Non-Registered Suppliers
a) Thru Reimbursement
For disbursements where payee is not a business entity required by
the BIR to issue OR and the money used to pay is advanced or paid
first by the official concerned and the expenses are authorized by the
BSPMC.
1.
2.
3.
4.
5.
6.
7.

Minutes of Pre-Procurement
Canvass Forms
Minutes of Opening of Canvass
Minutes of Evaluation of Canvass
Abstract of Canvass
Approved Purchase Order
Certificate of Inspection and Acceptance (certification can also be
indicated in the Purchase Order)
8. Disbursement Receipt with photocopy of check
9. Reimbursement Expense Receipt (BSPMC Form No. 23)

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b) Thru Cash Advance


In cases when Non-Registered Suppliers that do not have any
identification therefore cannot transact with the bank e.g. check
encashment are awarded with Contract, the BSPMC may request
Approval to Grant Cash Advance from the RPMO with an amount equal
to the Purchase Order. The Approved Purchase Order shall be attached
to the letter request of the BSPMC making it the basis for approval by
the RPMO thru the Regional Project Director or Regional Project
Manager.
Upon receipt of the approval, the Treasurer shall prepare a check in
his/her name, being the bonded member of the BSPMC.
In cases where the actual delivery is lesser than the total approved PO
and no further deliveries shall be made, the actual cost of delivered
items shall be paid. The excess amount shall be deposited back to the
communitys account on the next banking day after payment.
The following documents shall be attached to the Disbursement
Voucher:
1. Minutes of Pre-Procurement
2. Canvass Forms
3. Minutes of Opening of Canvass
4. Minutes of Evaluation of Canvass
5. Abstract of Canvass
6. Approved Purchase Order
7. Letter of approval from the RPMO to cash advance
8. Certificate of Inspection and Acceptance (certification can also be
indicated in the PO)
9. Deposit Slip (in case amount of cash advance is more than the
actual cost of delivered items)
10. Photocopy of check
11. Acknowledgment Receipt
The Area Coordinator shall see to it that no check is approved
representing payment for cash advance without prior approval from the
RPMO.
I.
1.
2.
3.
4.

Direct Contracting for Works


Approved Program of Works
Planned Community Procurement Packaging
Minutes of Pre-Procurement Conference
Certification from the DAC that there is only one supplier available in
the area
5. Invitation to Quote
6. Minutes of Opening of Quotation

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7. Minutes of Evaluation of Quotation


8. Post Qualification Report
9. RPMT No Objection Letter
10. Notice of Award
11. Conditions of Contract
12. Contract of Agreement
13. Performance Security
14. Drawing/Plan/Specifications
15. Notice to Commence
16. Contractors Billing Statement
17. Joint Inspection Report
18. Disbursement Voucher with photocopy of check
19. Official Receipt
Note: 1. For 15% mobilization fee, all items except #17 plus DAC
certification that equipment and materials are already in the
jobsite.
2. For first and succeeding progress billings, items 16-19 only. In
case where Contractor did not avail of the 15% mobilization
fee, items 1-15 shall be attached to first billing.
J. Local Shopping for Works
1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Invitation to Quote
5. Abstract of Quotation
6. Minutes of Opening of Quotation
7. Contractors License
8. Minutes of Evaluation of Quotation
9. Post Qualification Report
10. RPMT NOL (if applicable)
11. Notice of Award
12. Condition of Contract
13. Contract of Agreement
14. Performance Security
15. Notice to Commence
16. Drawing/Plan/Specification
17. Contractors Billing Statement
18. Joint Inspection Report
19. Disbursement Voucher with photocopy of check
20. Official Receipt
Note: 1. For 15% mobilization fee, all items except #18 plus DAC
certification that equipment and materials are already in the
jobsite and Bank Guarantee equal to 15% of the Contract Price.

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2. For first and succeeding progress billings, items 17-20 only. In


case where Contractor did not avail of the 15% mobilization
fee, items 1-16 shall be attached to first billing.
K. Local Bidding for Works
1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Invitation To Bid
5. Instruction to Bidders
6. Drawings/Plan
7. Technical Specifications
8. Forms of Bids
9. Minutes of Pre-bid conference
10. Minutes of Bid Opening
11. Bid Security
12. Minutes of Bid Evaluation
13. Abstract of Bids
14. Contractors License
15. Post Qualification Report
16. Resolution to Award
17. No objection Letter (NPMT)
18. Notice of Award
19. Contract Agreement with Conditions of Contract
20. Performance Security
21. Notice to Commence
22. Contractors Billing Statement
23. Joint Inspection Report
24. Disbursement Voucher with photocopy of check
25. Official Receipt
Note: 1. For 15% mobilization fee, all items except #23 plus DAC
certification that equipment and materials are already in the
jobsite and Bank Guarantee equal to 15% of the Contract Price.
2. For first and succeeding progress billings, items 22-25 only. In
case where Contractor does not avail of the 15% mobilization
fee, items 1-21 shall be attached to first billing.
L. Direct Contracting for Goods
1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Proc Conference
4. Certification from the DAC that there is only one supplier available
in the area
5. Canvass form
6. Minutes of Opening of Canvass
7. Minutes of Evaluation of Canvass

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8. Purchase Order
9. Sales/Charge Invoice and/or Delivery Receipt
10. Certificate of Inspection and Acceptance (certification can also be
indicated in the Purchase Order)
11. Disbursement Voucher with photocopy of check
12. Official Receipt
M. Local Shopping for Goods
1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Canvass form
5. Minutes of Opening of Canvass
6. Minutes of Evaluation of Canvass
7. Abstract of Canvass
8. No Objection Letter (RPMT), if applicable
9. Purchase Order
10. Sales/Charge Invoice and/or Delivery Receipt
11. Certification of Acceptance and Inspection (certification can also be
indicated in the PO)
12. Disbursement Voucher with photocopy of check
13. Official Receipt
N. Local Bidding for Goods
1. Approved Program of Works
2. Planned Community Procurement Packaging
3. Minutes of Pre-Procurement Conference
4. Invitation To Bid
5. Minutes of Pre-Bid Conference
6. Minutes of Bid Opening
7. Forms of Bid
8. Bid Security
9. Certificate of Business Registration
10. Minutes of Evaluation of Bids
11. Abstract of Bid
12. Post qualification Report
13. Resolution to Award
14. No Objection Letter (NPMT)
15. Notice of Award
16. Performance Security
17. Purchase Order
18. Sales/Charge Invoice or Statement of Accounts and/or Delivery
Receipt
19. Certificate of Inspection and Acceptance (certification can also be
indicated in the Purchase Order)
20. Disbursement Voucher with photocopy of check
21. Official Receipt

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O. Monthly Remittance of Taxes


5. Accomplished 1600/1601-E BIR Forms
6. Disbursement Voucher with photocopy of check
7. Official Receipt
P. Refund of Retention Fees
a) Upon issuance of Bank Guarantee as replacement
1. Bank Guarantee
2. Disbursement Voucher with photocopy of check
3. Official Receipt
b) After lapse of defects and liability period
1. Defects Liability Certificate issued by the Project Engineer
2. Disbursement Voucher with photocopy of check
3. Official Receipt
Q. Refund of Performance Security
1. Defects Liability Certificate issued by the Project Engineer
2. Disbursement Voucher with photocopy of check
3. Official Receipt
Common documents like the following should be attached to the first
payment only. However, a proper notation should be made in the
Disbursement Voucher indicating the DV# where all these documents are
attached.
a. Approved Program of Works
b. Planned Community Procurement Packaging
c. Drawing Plans/Specifications

5.6 Cash Disbursement Internal Control Guidelines


The following internal control guidelines for cash disbursement shall be
observed:
a. All disbursements must be supported by a Disbursement Voucher
(DV).
b. DVs must be pre-numbered, dated and used in sequential order.
c. All DVs must be approved by the BSPMC Chairperson.
d. Disbursements other than those from the petty cash fund or for
payment of salaries and wages and cash advance should be made by
check.
e. Disbursements should never be made directly from cash receipts.

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f. Checks must be made payable to specific payee/s. Checks payable to


cash or bearers are not allowed.
g. Checks should be signed by the authorized signatories (i.e. BSPMC
Chairperson, Treasurer, and Area Coordinator). The signing and
countersigning of checks should not be made without supporting
documents. Blank checks should never be pre-signed.
h. Verifying the sequence of check numbers when reconciling bank
transactions should validate completeness of all checks used. Voided
and spoiled checks must be properly marked CANCELLED and filed for
future reference and inspection.
i. Payee/s or person/s receiving the check should acknowledge receipt of
payment by signing on the space designated in the corresponding DVs
and issue OR/AR/RER.
j. After payment, all DVs together with supporting documents should be
stamped with the words:
PAID
By: ________________________
Date : ______________________

5.7 Recording and Filing


5.7.1

Recording

a. After payment, the Treasurer shall stamp on the Disbursement


Voucher and supporting documents the following:

PAID
By: ________________________
Date : ______________________
Then transmit to the Bookkeeper for recording. The Treasurer must
transmit DVs for recording on a regular basis, if possible daily.
b. Upon receipt of the Disbursement Vouchers and its supporting
documents, the Bookkeeper records the disbursement in the Cash
Book and return said documents to the Treasurer for filing.

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5.7.2 Filing
The Treasurer files the documents in a folder (one folder by month). This
should be arranged by Disbursement Voucher Number, with the latest
number on top of the file and kept in a locked drawer or cabinet in the
BSPMC office. One set of photocopies of the documents should also be
kept as a precaution if something happens with the original set of
documents. The original set of documents shall be submitted to the
DSWD Field Office thru the AC or DAC for submission to the COA on or
before the 10th day of the following month. Said documents, while still at
the community level, shall be under the custody and control of the
Treasurer. The Treasurer shall be fully responsible and accountable for the
documents pertaining to financial transactions of the Project while still
under their custody. The Treasurer shall ensure that submission of these
documents is evidenced by a transmittal letter duly acknowledged by the
AC. At the end of Sub-project implementation, all financial documents
must be turned-over to the BLGU for safekeeping.

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CHAPTER 6
PETTY CASH FUND
Expenses Covered by Petty Cash Fund
Establishment of Petty Cash Fund
Disbursement from Petty Cash Fund
Replenishment of Petty Cash Fund
Final Liquidation of Petty Cash Fund

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Petty Cash Fund is the amount of fund established by the community to


shoulder
petty
expenses
to
be
incurred
during
Sub-project
implementation. The maximum amount the community can establish is
Ten Thousand Pesos (P 10,000.00). Provided, however, that an allocation
for this purpose is provided for in the approved Program of Work (POW)
under the administrative/indirect cost.

6.1 Expenses Covered by Petty Cash Fund


a. Direct purchases amounting to not more P2,000 of the established
amount at any one time for the ordinary and essential needs of the
BSPMC (e.g. office supplies, meals during procurement activities,
photocopying, etc.)
b. Transportation Expenses for official travels such as delivery of canvass
forms, invitation to bid and other communications; as well as
transportation expenses in attending MIBF meetings, fiduciary
workshops and submission of reports and other authorized travels.

6.2 Establishment of Petty Cash Fund


Procedures/Activities
1. Prepare disbursement voucher and check in the
amount agreed by the community.
2. Approve the disbursement voucher and sign the
check.
Countersign the check.
3. Encash the check and acknowledge the receipt
of funds by signing the received by portion of
the disbursement voucher.
4. Stamp paid the disbursement voucher and
transmits to the Bookkeeper.
5. Record the transaction in the cash book and file
the DV in the disbursement vouchers file folder.
6. Take custody of the funds and store them in a
safety deposit box.

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Community Finance Manual

Responsible
Unit/Person
Treasurer
BSPMC Chairperson
Area Coordinator
Treasurer
Treasurer
Bookkeeper
Treasurer

6.3 Disbursement from Petty Cash Fund


Procedures/Activities
1. Verbally request the Treasurer for petty cash.
Treasurer determines if the amount requested is
reasonable and within the ceiling amount
approved
by
the
Execom
during
PCF
establishment meeting.
2. Prepare the Petty Cash Voucher (See BSPMC
Form 11).
3. Sign the Requested by portion and seek the
approval of the BSPMC Chairperson or Project
Implementation Head
4. Approve the petty cash voucher (If the BSPMC
Chairperson is the one making the request, the
PCV shall be approved by the PIT and one
member of the Execom).
5. Release the funds and ask the person receiving
the amount to sign the petty cash voucher.
6. Stamp Petty Cash Voucher with PAID and date
paid and put it inside the safety deposit box.
7. Submit official receipts for purchases made.
Transportation
expenses
need
not
have
supporting documents.
8. Check the petty cash vouchers daily to find out
unliquidated petty cash advance (those for
purchases but without any supporting document
attached). Follow-up submission of the official
receipt or acknowledgment receipt. If no official
or acknowledgment receipt is produced, asks
the person who requested to refund or return
the amount.
9. In cases of refund (the amount actually spent is
lesser than the amount requested), the amount
refunded as well as the actual expense should
be indicated in the PCV.

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Community Finance Manual

Responsible
Unit/Person
Committee or Team
member needing
petty cash
Treasurer
Person making the
request
BSPMC Chairperson
or Project
Implementation
Team Head
Treasurer
Treasurer
Person who made
the request
Treasurer

Treasurer

6.4 Replenishment of Petty Cash Fund


Procedures/Activities
1. Make daily cash count of the Petty Cash Fund.
2. If the petty cash fund balance is 25% or less,
prepare the Petty Cash Fund Liquidation
Summary (See BSPMC Form No. 12).
3. Attach PCVs and its supporting documents to
the Summary Report and submit to the BSPMC
Chairperson for approval.
4. Review veracity of claims and supporting
documents.
Initial
before
the
BSPMC
Chairperson and submit for final approval.
5. Review and sign the Summary Report.
6. Prepare Disbursement Voucher and Check in an
amount equivalent to the total amount in the
Summary Report, with the Treasurer as payee.
7. Approve DV and sign the check
8. Review
PCF
Liquidation
Summary
and
countersign the check
9. Same as Procedures 3 to 6 in Section 1.2.

Responsible
Unit/Person
Treasurer
Treasurer
Treasurer
Audit and Inventory
Committee
BSPMC Chairperson
Treasurer
BSPMC Chairperson
Area Coordinator
Treasurer

6.5 Final Liquidation of Petty Cash Fund


Petty expenses incurred whose funding comes from the remaining petty
cash fund before the last replenishment as well as proceeds from the last
replenishment shall be duly accounted for and liquidated using the Petty
Cash Fund Liquidation Summary Report. The total amount of expenses
reflected in the PCF Liquidation Summary Report shall be equal to the
total amount of PCF established if the fund is fully utilized. If not, only the
actual petty expenses incurred shall be reflected and the remaining petty
cash shall be deposited back to the communitys bank account. A
validated deposit slip shall be attached to the Final Petty Cash Fund
Liquidation Summary to fully account the fund.
The Bookkeeper shall record on the Cash Book the return of the
remaining balance of the petty cash fund to the communitys bank
account based on the validated deposit slip.

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Community Finance Manual

Responsible
Unit/Person
Count the petty cash fund, if there is still Treasurer
remaining balance.
Prepare PCF Liquidation Summary.
Treasurer
Gather and attach PCVs and supporting Treasurer
documents to the Summary Report and submit
them to the BSBSPMC Chairperson for approval.
Review and sign the Summary Report.
BSPMC Chairperson
If there is still petty cash fund on hand, deposit Treasurer
to the communitys bank account and attach the
validated deposit slip to the liquidation
summary.
Procedures/Activities

1.
2.
3.
4.
5.

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Community Finance Manual

CHAPTER 7
LOCAL COUNTERPART CONTRIBUTION
Classification
In-Kind Contributions
Valuation and Costing
Recording and Filing

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7.1 Classification
7.1.1 Local Counterpart Contribution for Capability Building and
Implementation Support (LCC for CBIS)
As discussed in Chapter 4.2.1, these are contributions which do not
become part of the value of the Sub-project but are intended to facilitate
the conduct of activities of the Project. Aside from the LCC Cash intended
for the conduct of Community Empowerment Activity Cycle (CEAC), there
is LCC In-Kind under this component. Examples are the LGUs provision of
an office space and facilities for the ACT and IT equipment.
Tracking and recording of these contributions which will be handled by the
Municipal Financial Analyst, are based on the approved LCC Delivery Plan.
This plan is a document that outlines the breakdown and schedule of
delivery of local counterpart contributions by the municipal LGU. It is
planned by the MLGU, approved by the DSWD and concurred by the
Sangguniang Bayan, through a budget ordinance.
7.1.2

Local Counterpart Contribution for Sub-project


Implementation (LCC for SPI)

These are contributions that form part of the investment cost or value of
the Sub-project. It is intended to shoulder portions of either the direct or
indirect costs of the Sub-project. As discussed in Chapter 4.2.2, cash
counterpart of this type is directly deposited to the community account.
In Kind contributions of this type are materials, labor, equipment and
other direct or indirect costs committed by the LGUs, communities and
other donors which commitments are reflected in the Program of Works
approved by the MIBF.

7.2 In-Kind Contributions


For Capability Building and Implementation Support (CBIS)
20% of basic salary of MLGU regular staff for services rendered
during Project implementation
Equivalent cost of rental of a furnished office
IT equipment (Computer, Printer, etc)
Office Supplies and Communication

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Community Finance Manual

Equivalent cost of rental of vehicles provided for the Project based


on actual number of hours used
Food, supplies and other facilities such as venues, sound system,
etc. provided during trainings, assemblies and meetings

For Sub-project Implementation (SPI)


Goods (supplies and materials)
Skilled or unskilled labor of community members
Technical services of professional individuals (e.g.
Draftsman/Engineer)
Services of government personnel (e.g. Draftsman/Engineer)
Services rendered by BSPMC members in implementing the Subproject
Use of Heavy Equipment
Lot/land or other real property donation
Use of warehouse
Others as may be agreed upon by the community

7.3

Valuation and Costing

The assignment of cash value to contributions in kind shall be agreed


upon by the donor or contributor and the BSPMC and concurred by the
Area Coordinator.
LCC for Capability Building and Implementation Support (CBIS)
Form of LCC
20% of basic salary of
MLGU regular staff for
services rendered
during Project
implementation

Basis of Cash
Valuation
20% of monthly basic
salary

Source Document
Special Order of the
MLGU staff indicating
specific designation to
KC Project

Equivalent cost of rental Comparable rental rate


of a furnished office
in the locality for
similar area, location
and condition of the
office

Certification from the


LGU Administrator that
space and other
amenities are provided
for Project staff

IT equipment
(Computer, Printer, etc)

Certification from the


LGU Administrator that
IT equipment are
provided for Project
staff

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Book Value of the


equipment

Community Finance Manual

Office Supplies and


Communication

Actual Cost

Vehicles provided for


the Project

Equivalent cost of
rental of vehicles
based on actual
number of hours used
Actual cost of food and
supplies and equivalent
rental rate of
venues/sound system

Food, supplies and


other facilities such as
venues, sound system,
etc. provided during
trainings, assemblies
and meetings

LCC for Sub-project Implementation (SPI)


Goods (supplies and
Prevailing market rate
materials)
in the locality or cost
of similar goods
purchased by the
community
Skilled or unskilled
labor of community
members

Technical services of
professional individuals
(e.g.
Draftsman/Engineer)
Services of government
personnel (e.g.
Draftsman/Engineer)

Services rendered by
BSPMC members in
implementing the Subproject

72

Approved and
Acknowledged Request
and Issue Slip
Approved Trip Tickets

Certificate of Training
indicating date, venue
and number of
participants from the
LCE and Barangay
Captain for municipal
and barangay levels
respectively;
Attendance Sheet;
Minutes

Acknowledgment
Receipt

Prevailing market rate


in the locality for
skilled workers and
current minimum wage
for unskilled workers
as set by the local
wage board
Prevailing rate in the
community for similar
services

Employment Record
Sheet (ERS)

Compute hourly salary


rate of each staff
involved (salary
rate/22days/8hrs.) and
multiply by the total
hours of the services
provided
Prevailing salary rate
for equivalent positions

Logbook/Individual
Timesheet

Community Finance Manual

Completed output of
the services rendered
(e.g. detailed cost
estimates)

Logbook/Individual
Timesheet

Use of Heavy
Equipment
Lot/land or other real
property donation

Use of warehouse

7.4

Prevailing rental rate


per hour/per day in the
locality
Assessed or Market
value in the deed of
donation (Note: road
projects with existing
right of ways shall no
longer be included as
LCC in-kind e.g. Road
Rehabilitation Subproject).
Prevailing rental rate
per month in the
locality

Construction Logbook

Copy of the Deed of


Donation and
Certification from the
Assessors Office

Certification from the


BSPMC Chairperson for
the use of the
warehouse

Recording and Filing

7.4.1

Recording

Local Contributions for Capability Building and Implementation


Support - A Voucher for Local Counterpart Contribution (BSPMC Form
10) will be prepared by the Municipal Financial Analyst for each
contribution in kind provided at the municipal level, while the same
voucher, shall be prepared by the Community Facilitators for each
contribution given at the community level. Recording in the Local
Counterpart Contribution for CBIS Journal (Annex 8) should, however, be
done by the Municipal Financial Analyst.
Local Contributions for Sub-project Implementation - The
Treasurer or the Project Implementation Team Head shall accomplish the
Voucher for Local Counterpart Contribution (VLCC) for all contribution in
kind received.
One voucher shall be prepared for each form of
contribution made by an individual donor or group of donors.
All VLCCs should be submitted to the Treasurer by the persons or units
who prepared them after the conduct of the activity, or on a monthly
basis. The Treasurer shall review the entries and submit them to the
BSPMC Chairperson for approval. After the approval, the Treasurer
forwards the VLCCs with its supporting documents to the Bookkeeper.
The Bookkeeper, then, records the transactions in the Local Counterpart
Contribution Journal (Annex 13).

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7.4.2

Filing

All VLCCs and its supporting documents are filed chronologically in a


separate folder.
They should be kept, together with the file of
Disbursement Vouchers, in a filing cabinet with lock. At the end of Subproject implementation, all these documents must be turned-over to the
BLGU for safekeeping.

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Community Finance Manual

CHAPTER 8
BOOKKEEPING AND PREPARATION OF
REPORTS
Cash Book
LCC In-Kind Journal
Status of Sub-project Fund Utilization Report

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Community Finance Manual

There are only two books namely: Cash Book and LCC Journal that the
BSPMC, particularly Bookkeeper should maintain during Sub-project
implementation. It shall be updated daily or on a weekly basis at the very
least. These books should be kept in a safe place and should be available
for review by any member of the community at all times. At the end of
Sub-project implementation, these books together with the other financial
documents should be turned-over to the BLGU for safekeeping.

8.1 Cash Book


Cash book is a book of original entry in which transactions relating only to
cash receipts (e.g. Grant Funds, LCC-cash, interest earnings accruing to
the community bank account and other forms of cash receipts) and
payments are recorded in detail. When cash is received, it is entered on
the debit or left side. Similarly, when cash is paid out, the same is
recorded on the credit or right side of the cash book.
The Bookkeeper shall maintain a Cash Book for all cash transactions
during Sub-project implementation.
The Account Titles that will be used in recording transactions are the
budget lines in the approved Program of Work (e.g. Materials, Labor,
Equipment, etc). These will also be the column headings under the Cash
Out in the Cash Book.
ILLUSTRATIONS
a. April 1, 2010 - Aling Mingming, the Treasurer, along with Mang
Dangas, the BSPMC Chairperson and Rosa, the Area Coordinator went to
LBP Larena to open an account in the name of KALAHI-CIDSS Brgy.
Lotloton. They deposited P1,000 which was contributed by the community
volunteers.
Below is an illustration on how to record the above transaction.
CASH IN (RECEIVED)
DATE

REF

PARTICULARS

Apr 1

Deposit
Slip

Initial Deposit

AMOUNT
1,000.00

GRANTS
(LP)

LCC
(Cash)
1,000.00

b. April 7, 2010 - DSWD released to the communitys account an


amount of P195,000. The amount released was 50% of the approved
grant of their Sub-project.

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Community Finance Manual

Below is an illustration on how to record the above transaction.


CASH IN (RECEIVED)
DATE

REF

PARTICULARS

Apr 7

Notice
of Fund
Transfer

50%
Grant
Releases

GRANTS
(LP)

AMOUNT

LCC
(Cash)

195,000.00

c. April 23, 2010 - Aling Mingming, the Treasurer went to San Francisco
City to pay Super-337 Hardware for the construction materials purchased.
She gave the check amounting to P165,750.
DATE

Apr 23

REF

DV#
001

Lot-

CASH OUT (PAYMENT)


PARTICULARS
Payment of
various materials
per PO#001

AMOUNT

165,750.00

FUND
SOURCE
Grant

DIRECT COST
MATERIALS LABOR
165,750.00

To ensure that cash balance in the Cash Book tallies with the cash
available in the Bank account, the Bookkeeper shall prepare a monthly
Bank Reconciliation Statement.

8.2 LCC In-Kind Journal


LCC In-Kind Journal is a book that contains a summary of Vouchers for
Local Counterpart Contribution (VLCC) issued and is likewise maintained
by the Bookkeeper. It simply reflects all non-cash contributions from
various donors for the Sub-project.
Like the Cash Book, the Account Titles that will be used in recording
transactions are the budget lines in the Approved Program of Work (e.g.
Materials, Labor, Equipment, etc).
ILLUSTRATION
a. May 8, 2010 - The MLGU gave 280 cu.m of base coarse materials at
P100/cu.m.

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Community Finance Manual

DATE

May 8

VLCC
No.
Lot01

DONOR

PARTICULARS

MLGU

Donation of
Materials for
the completion
of Sub-project

DIRECT COSTS
MATERIALS

EQPT

LABOR

28,000.00

At the end of the month, the total in-kind LCC reflected in the book should
tally with the total of all VLCCs prepared for the month.

8.3 Status of Sub-project Fund Utilization Report


Status of Sub-project Fund Utilization Report (Annex 11) is a report
prepared by the Bookkeeper that contains all financial transactions of the
Sub-project for the period. It is required to be submitted to the DSWD
Field Office thru the ACT on a monthly basis and when requesting for fund
release.
Following the illustrations above, the Status of Sub-project Fund
Utilization Report should look like this:
GRANT FUNDS

LOCAL COUNTERPART CONTRIBUTION


TOTAL

PARTICULARS

Cash

LP

a
Cash Balance, Beginning

In-kind

d (b+c)
-

e (a+b)
-

DV No.
-

Add: Funds Received during this Period


KC Grant Tranche

DVs Submitted to COA

Total

195,000.00

195,000.00
-

PLGU
28,000.00

MLGU
BLGU

1,000.00

Community/Others
Total Funds Available

195,000.00

1,000.00

28,000.00

Less: Expenses incurred during this Period


165,750.00

Materials

195,000.00

28,000.00

165,750.00

Labor

Equipment

Lot

Contract of Works

Freight and Handling

Material Testing

Supervision

Pre-Engineering

Bond Premium

Administrative Expenses

Others (please specify)


Total Expenses for the Period
Cash Balance, End

78

165,750.00
29,250.00

28,000.00

1,000.00

Community Finance Manual

165,750.00

29,250.00

Amount

CHAPTER 9
UNUTILIZED COMMUNITY GRANT
FUNDS
Kinds of Unutilized Grant Funds
Mechanics for the Utilization of Surplus, Left-Over and
Excess Funds
Mechanics for the Utilization of Savings
Procedures in Determining Excess Funds
Procedures in Determining Existence of Savings
Use of Contingency Fund

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9.1 Kinds of Unutilized Grant Funds


The following are the kinds of
circumstances where they occur:

unutilized

grant

funds

and

the

Surplus Fund
It refers to the remaining amount from the municipal allocation after all
proposed Sub-projects are funded. This may happen when the total cost
of all proposed Sub-projects is well within the allocated amount for the
municipality and there are no Sub-projects left unfunded.
Left-over
It refers to the remaining amount from the municipal allocation after
some of the prioritized Sub-projects have been funded. This happens
when one or more Sub-projects remain unfunded and the remaining grant
amount is insufficient for the next runner-up proposal.
Excess
It refers to the remaining 10% final tranche of the community grant fund
when the Sub-project may be completed even without it. This happens
when conditions during actual Sub-project implementation lead to a
reduction on cost. In cases where only a portion of the 10% final tranche
will be requested to fully complete the Sub-project, the balance will
remain as excess fund.
Savings
It refers to the remaining funds in the community bank account after the
100% completion of the Sub-project with all valid financial obligations
settled. In this case, it is possible that barangays may generate savings
from the community grant funds due to varying site conditions during
implementation which the Project recognizes - may not be totally
anticipated at the time of planning.
Contingency
It refers to that item indicated in the Program of Works intended for
unforeseen expenses.

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9.2 Mechanics for the Utilization of Surplus, Left-Over


and Excess Funds
9.2.1 The Surplus, Left-over and Excess Funds from the previous cycle/s
may be carried forward to the succeeding cycle.
9.2.2 The MIBF shall decide on the use of Surplus, Left-Over and Excess
Funds subject to the following parameters:
a. The MIBF - Criteria Setting Workshop (CSW) will account for
the total unutilized funds (e.g. Surplus, Left-over and Excess
funds) and will issue a resolution to allocate the amount for
inclusion in the next MIBF.
b. The MIBF cannot award the fund as an additional or
augmentation funding for a Sub-project that is already
prioritized and with existing funding allocation.
c. The MIBF should give first priority, for the purpose of award
of the fund, to the first runner-up Sub-project. In case the
fund is insufficient for the 1st runner-up Sub-project, next
priority should be given to the next Sub-project in rank or to
the next Sub-project whose grant request is within the
available amount. The costs of the runner-up Sub-projects
should not be adjusted to fit the amount. All Sub-project
costs presented during the MIBF are final. Local counterpart
contributions shall be adjusted equivalent to the amount
stipulated in the Memorandum of Agreement.
d. No surplus, left-over and excess funds may be awarded to
any barangay with pending/ on-going Sub-project.

9.3 Mechanics for the Utilization of Savings


9.3.1 Use of savings should be discussed in detail in a Barangay Assembly
(BA) called for the purpose and documented through a BA
resolution.
9.3.2 The AC shall be guided by the contents of the BA resolution in cosigning withdrawals of savings from the community bank account.
9.3.3 Use of savings should be reported to the BA and subject to
transparency, procurement and audit requirements of the Project.
9.3.4 Savings cannot be used for the operations and maintenance of
completed Sub-projects and/or activities/work items which are
already part of the original plan or program of work contained in the

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Sub-project that is funded either from local counterpart contribution


or grant.
9.3.5 Savings, however, may be used for subsidiary activities,
accessories, tools and paraphernalia to reinforce the functionality
and sustainability of the Sub-project (e.g. fence for health/day care
center, books and reference materials, tools for water supply
projects, etc).
9.3.6 Use of savings should not violate the existing Negative List Policy
of the Project.

9.4 Procedures in Determining Excess Funds


Determining Excess Funds may happen at the time the community
makes the request for release of the third/final tranche, by which time the
Sub-project is at least 90% complete. The following are the procedures:
9.4.1 The AC, upon receipt from the community of the documents
requesting for the release of the third tranche shall undertake a
review/assessment which includes:
a. verifying the fund balance in the community bank account;
b. verifying the accounts payable of the community;
c. comparing fund balance versus physical progress of the Subproject; and
d. reviewing the Joint Inspection Report.
9.4.2 The following required documents may be used for the ACs desk
review:
a. Physical Progress Report verified/certified by the DAC. The
DAC or the municipal engineer should have conducted an
ocular inspection before certifying the report. In case the
municipal engineer did the inspection, the DAC should
countersign;
b. Sub-project Fund Utilization Report certified by the Municipal
Financial Analyst and the Bank;
c. Accounts payable of the community certified by the Treasurer;
d. BA resolution confirming the certifications; and
e. Joint Inspection Report indicating the total cost of remaining
materials to be procured and total cost of labor payroll and
other related expenditures to be incurred to complete the
Sub-project.

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9.4.3 If the AC finds there is potential excess fund, i.e. money in the
bank is sufficient to carry out Sub-project requirements minus valid
payables, the AC shall inform the BSPMC in writing and request for
comments. If the AC finds that there is no excess fund, the RFR
documents may be forwarded to the RPMT for appropriate action.
9.4.4 The BSPMC, upon receipt of the ACs findings that there is potential
excess fund, may either concur or justify the need for the 3rd
tranche.
9.4.5 In case of concurrence, the AC shall notify the RPMT of the excess
fund and the Central Office shall retain the 3rd tranche. The BSPMC,
on the other hand, shall inform the BA of the ACs findings, continue
Sub-project implementation and submit the required 100%
completion reports in due time.
9.4.6 If, within 5 days from BSPMCs receipt of ACs findings, no reply is
received, the AC shall consider it as concurrence by the BSPMC.
9.4.7 The BSPMC may also provide justification/ explanation, in writing,
for the release of the 3rd tranche under the following possible
circumstances:
a. Discovery during Sub-project implementation of additional
works needed related to the approved Sub-project. A brief
supplemental explanation should be indicated in the Subproject physical progress report stating the additional works
required. The actual percentage physical progress of the Subproject, incorporating the additional works, should be
reflected. Documentation of the variation orders/extra works
are assumed kept on file by the BSPMC for reference during
inspection or audit.
b. Actual local counterpart contribution mobilized by the
community is greater than the amount committed. The
BSPMC should indicate in the physical progress report the
fact about its over-delivered LCC and how it was realized.
c.The community incurred legitimate savings during Sub-project
implementation. The BSPMC should indicate in the physical
progress report how the savings was realized.
9.4.8 Should the AC find the BSPMCs explanation sufficient, the RFR
documents shall be forwarded to the RPMT together with the ACs
findings and the BSPMCs justification.
9.4.9 In cases where the BSPMC and the AC is in disagreement over
existence of excess fund, the AC and CF concerned shall discuss this
with the BA. If there is no agreement with the BA, the AC shall
elevate the matter to the RPMT. A representative of the RPMT shall

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then conduct a field visit and desk review and provide the RPM with
recommendation. The RPMT, through the RPM, shall decide on the
issue.
9.4.10 If it is concluded/decided that there is indeed excess fund, DSWD
shall retain the last tranche and shall no longer entertain request for
its release.

9.5 Procedures in Determining Existence of Savings


9.5.1 The AC, upon receipt from the community of the required
completion reports when the Sub-project is 100% completed shall
undertake a desk review with assistance of concerned ACT staff,
which includes:
c. verifying the fund balance in the community bank account;
and
d. verifying the accounts payable of the community.
9.5.2 If the ACs desk review reveals that there remains a significant fund
balance (more than PhP 5,000) in the community bank account
minus valid payables of the Sub-project (as verified by the
Municipal Financial Analyst), the AC shall require the BA to submit a
resolution following the parameters on use, reporting and approval
process of Sub-project savings. The resolution shall guide the AC in
monitoring the use of such fund. The resolution shall be attached as
well to the Sub-project completion reports submitted to the RPMT.
9.5.3 With or without savings, the AC shall forward the filled-up and
signed Sub-project completion report to the RPMT.
9.5.4 In case a community with prioritized Sub-project waived its right to
implement the approved and funded Sub-project, the utilization of
savings shall be decided upon through the conduct of Special MIBF.
It shall pass a resolution indicating the details of the allocation of
the community grant funds. The Project will only recognize, with
finality, MIBF Resolution agreed during the Special MIBF. Otherwise,
said funds shall be returned to the DSWD for use of other approved
Sub-projects.
9.5.5 In cases where the community decides not to utilize the savings,
the full amount shall be refunded to the DSWD KALAHI CIDSS
Current Account maintained by the DSWD Central Office. The said
funds shall be supported with Barangay Assembly Resolution

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waiving the communitys rights to utilize the savings stating the


reasons in detail. In any case, the community shall forward a copy
of the transfer notice or deposit slip to the DSWD-CO thru the
DSWD-FO for reference and use in the monitoring and reconciliation
of balances of the said Current Account.

9.6 Use of Contingency Fund


9.6.1 The contingency cost provided for in the Program of Works shall no
longer be automatically made part of and be released together with
the 1st, 2nd and 3rd tranches of community grant funds.
9.6.2 The contingency cost shall only be released under the following
circumstances:
a. Price escalation;
b. Underestimated planned costs that cannot be covered by
available funds;
c. There is a need to perform extra works for the functionality of
the Sub-project, which were not anticipated during project
planning. The said extra works, however, should only be
those that are necessary to complete the Sub-project as
designed; In no case shall the contingency cost be used to
finance extra works/variation orders that are not needed to
complete the Sub-project as designed.
For purposes of this Manual, variation order/extra works mean as
follows:
any increase/decrease in quantities, including the introduction
of new work items that are not included in the original
contract/POW or reclassification of work items that are either due
to change in plans, design or alignment to suit actual field
conditions resulting in disparity between the preconstruction
plans used for purposes of bidding and the as staked plans or
construction drawings prepared after the joint survey by the
contractor and the implementation entity after the award of
contract.
The said variation orders should address the following situations:
a) latent physical conditions at the site differing materially from
those indicated in the contract and b) unusual nature differing
materially from those ordinarily encountered and generally
recognized as inherent in the work.

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d. The Sub-project was damaged by fortuitous event before


completion.
9.6.3 The contingency cost, if needed, shall be requested together with
the 3rd tranche RFR. The following are the requirements for its
release:
In the case of 9.6.2 a & b:
9.6.3.1 Comparison of planned versus actual procurement
with analysis of and explanations for variances to be
prepared by the Procurement Team and concurred by
the DAC and FA.
9.6.3.2 Certification from the Procurement Team that there
was price escalation and/or underestimated POW
resulting to the non-completion of the Sub-project,
based on 8.6.3.1. The certification should indicate the
amount of contingency cost needed to complete the
Sub-project and that said amount is not part of the
committed LCC. The certification shall be concurred
by the AC and shall be certified correct by the
Regional Community Infrastructure Specialist and
Regional Financial Analyst.
In the case of c:
9.6.3.3 Certification from the Project Implementation Team
that the extra work is necessary for the functionality of
the Sub-project as originally planned/designed and
that said extra work was not specifically addressed in
the POW, to be concurred by the DAC and to be
certified by the RCIS. The certification should indicate
the cost of the extra works.
In the case of d:
9.6.3.4 Certification from the BSPMC Chairman that the Subproject was damaged by fortuitous event before
completion to be concurred by the Barangay
Chairman, AC and the RPM. The certificate should
indicate the amount needed
to
complete
the
damaged portion of the Sub-project.
9.6.4 For purposes of cost sharing, the contingency cost, if not charged
100% under the KC Grant, should be shared by the latter and Cash

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LCC following the actual cost sharing ratio of the approved Subproject.
9.6.5 The amount to be released shall be the actual amount needed as
indicated in the required certifications or the amount of contingency
cost indicated in the POW, whichever is lower.

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CHAPTER 10
FINANCIAL MONITORING SYSTEM
Financial Monitoring Activities
Monitoring Checklist

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The following monitoring activities must be regularly undertaken to a)


ensure that the internal control measures are in place and functional for
the economical, efficient and effective implementation of community
approved subprojects, b) check whether project funds are utilized as
intended and in accordance with KC community procurement and finance
guidelines, and c) to verify correctness and accuracy of financial reports.

10.1 Financial Monitoring Activities


10.1.1 BSPMC Meeting
a.

Given the direct responsibility in deciding matters related to


procurement and fund management, the BSPMC shall hold weekly
meetings to monitor among others the status of sub-project
implementation and to plan the succeeding weeks activities. A
specific day and time when to hold this meeting shall be agreed
upon.

b.

The meeting shall start with the Chairperson making updates or


follow-up of the previously agreed actions.

c.

Status of sub-project implementation shall be reported by the


following:
1. Sub-project Implementation Team shall report on the physical
progress of the sub-project.
2. Monitoring and Inspection Team shall report the results of their
previous weeks activities.
3. Procurement Team shall report on actual procurement progress.
4. Treasurer will report financial status of the sub-project (i.e. funds
received, funds utilized, receivables, pending obligations, cash
available for use, status of petty cash fund).
5. The Bookkeeper shall present the books for inspection and will
report the status of Local Counterpart Contribution In Kind.

d.

The committee shall discuss and approve the above reports. In cases
where there are unresolved issues or big variance between plan and
actual progress, the Chairperson shall immediately coordinate with
the corresponding ACT member for technical assistance.

e.

Then the committee shall prepare work plan and disbursement target
for the succeeding weeks activities.

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f.

Minutes of the meeting shall be prepared by the Secretary and a copy


will be submitted to the ACT.

10.1.2 Municipal Fiduciary Workshop (MFW)


a. Municipal Fiduciary Workshop is a measure designed to strengthen the
knowledge of the volunteers and to enhance their capacities to
effectively implement procurement and financial management system
of the Project. It is a venue where lessons learned and issues and
concerns during sub-project implementation are collectively shared,
discussed, and settled. It shall be participated by the Audit and
Inventory Committee (AIC), Treasurer, Bookkeeper, and Chairperson
of each prioritized barangay and should be conducted at least once in
every two months.
b. The results of the activity shall be the bases of the MFA and DAC to
prepare TA and monitoring agenda for the month.
c. Procedures in the conduct of Municipal Fiduciary Workshop.
c.1 After the preliminary activities (e.g. opening prayer, roll call,
welcome message), the MFA shall discuss the objectives of the
activity.
c.2 To refresh knowledge of CVs, a lecture on important policies of the
KC Community Finance and Procurement Manuals shall follow.
Specific topics (e.g. withholding of taxes that is found to be the
most poorly understood by the CVs) shall be chosen for
discussion. At first, the lecture will be done by the MFA or by the
DAC. However in the succeeding MFWs, it shall be assigned to a
group of volunteers. The participants should be encouraged to
interact during and after the lecture.
c.3 After the lecture, each BSPMC is required to submit, for review
purposes, all paid disbursement vouchers (DVs), cash book, LCC
journal, vouchers for local counterpart contribution for sub-project
implementation, program of works, status of sub-project fund
utilization report, bank snapshot, and bank reconciliation
statement. The MFA shall make inventory of these financial
documents and reports and should see to it that all, especially DVs
are accounted for.
c.4 Then MFA will give a very detailed orientation regarding auditing
procedures thru a power point presentation. If there is no
available LCD projector, the best alternative is to write the
presentation in a manila paper as visual aid. Again, the
participants should be encouraged to interact during and after the

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lecture. This detailed orientation is only conducted on the first


MFW. However, the MFA should conduct re-orientation if result of
the workshop so requires.
c.5 The MFA will then interchangeably distribute the submitted
financial documents and reports together with the audit forms (i.e.
working paper and matrix of findings and recommendations) to
each BSPMC for the workshop proper.
The DAC and MFA shall, from time to time check if participants are
doing as expected. This is also a good time for a one-on-one
coaching in case of queries/clarifications that were not raised
during the lecture orientation.
c.6 Each BSPMC shall elect a representative who will present their
findings/observations and recommendations. The auditee shall
take note of them and may immediately give their rejoinder.
The MFA and DAC shall act as panelists. They will respond to the
queries and issues raised by the participants regarding the
findings/observations and provide inputs on the recommendations.
However, in the succeeding MFW, this role shall be assigned to a
group of volunteers. They will only add to and/or correct the
inputs given by the assigned group, if necessary.
d. After all has presented, DVs and reports that have no findings shall be
submitted to the MFA for submission to the RPMT. Otherwise, it shall
be returned to the concerned BSPMCs for immediate compliance
except for DVs with adverse findings where it shall be retained at the
ACT level for further review and evaluation. A specific date shall be
agreed upon as deadline for submission of returned DVs and reports
with full compliance.
e. One or two participants shall be asked to give feedback in the overall
conduct of the activity. Then the MFA and/or DAC will issue directives
for the next two months and will set the date for the next MFW.
f. Minutes of the proceedings shall be submitted to the RPMT together
with the monthly reports and original paid disbursement vouchers.
10.1.3 Regional Fiduciary Workshop (RFW)
a. Regional Fiduciary Workshop, a mechanism designed to strengthen
monitoring activities of the region aims to directly verify whether funds
are utilized as intended and to check whether communities strictly
adhere to KC finance and procurement policies and procedures and
government laws, rules and regulations.

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b. Spearheaded by the RFA and RCIS, the results of the activity should
provide them bases to recommend sanctions to communities confirmed
to have irregular transactions and to assess performance of the ACT in
terms of job coaching and safeguarding of funds.
c. It shall be participated by all MFAs and DACs of both ACTs and MCTs
and shall be conducted on a monthly basis on or before the 9th day of
the following month in time for the submission of documents to the
COA.
d. Procedures in the conduct of Regional Fiduciary Workshop.
d.1 After the preliminary activities (e.g. opening prayer, roll call,
welcome message), the RFA shall give a very detailed orientation
regarding auditing procedures thru a power point presentation.
The participants should be encouraged to interact during and after
the lecture. This shall only be done on the first RFW. However, a
follow-through must be done depending on the results of the
workshops.
d.2 Then the MFAs are called to submit, for review purposes, all paid
disbursement vouchers (DVs), cash book, LCC journal, vouchers
for local counterpart contribution for sub-project implementation,
program of works, status of sub-project fund utilization report,
bank snapshot, and bank reconciliation statement. The RFA shall
make inventory of these financial documents and reports and
should see to it that all, especially DVs are accounted for.
d.4 The RFA will then interchangeably distribute the submitted financial
documents and reports together with the audit forms (i.e. working
paper and matrix of findings and recommendations) to each team
for the workshop proper.
d.5 Then the MFA or DAC will present their findings/observations and
recommendations. The auditee shall take note of them and may
immediately give their rejoinder.
The RFA and RCIS shall act as panelists. They will respond to the
queries and issues raised by the participants regarding the
findings/observations and provide inputs on the recommendations.
g. After all has presented, DVs and reports that have no findings shall be
submitted to the COA. Otherwise, it shall be returned to the concerned
MFA for immediate compliance except for DVs with adverse findings
where it shall be retained at the RPMT level for further review and

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evaluation. A specific date shall be agreed upon as deadline for


submission of returned DVs and reports with full compliance.
h. One or two participants shall be asked to give feedback in the overall
conduct of the activity. Then the RFA and/or RCIS will issue directives
for the month and will set the date for the next RFW.
i. Minutes of the proceedings shall be submitted to the NPMT-Finance
together with the monthly reports.

10.2 Monitoring Checklist


a. Community Level
As the direct TA provider to the community, the MFA is required to visit
each approved subproject at least once a month during sub-project
implementation and accomplish the monitoring checklist below. The result
will be another basis of the MFA to prepare TA plan for the next period.
One copy will be submitted to the FO together with the monthly reports.
AREAS OF
CONCERN
I. Bookkeeping

II. Reporting

III. Fund
Disbursement

93

MONITORING AGENDA
a. Check completeness
and correctness of
records in the Cash
Book.
b. Check whether all
deliveries and utilization
of LCC In Kind are
recorded in the LCC
Journal.
a. Validate figures in the
Annex 11 against the
Cash Book and LCC
Journal.
b. Check whether Annex
11s are completely
signed.
c. Verify whether BT and
CB submit reports on
time.
a. Check whether payee is
in the name of the
establishment or of the
proprietor.
b. Verify whether person
who signed the
Received by portion

MEANS OF
VERIFICATION
*Updated Cash Book
*Updated LCC
Journal

*Reconciled Annex
11 with Cash Book
and LCC Journal
*Signed Annex 11
*Transmittal Letters

*Disbursement
Vouchers and
Supporting
Documents

Community Finance Manual

REMARKS

c.

d.

e.

f.

IV. Funds Flow

a.

b.

V. Local
Counterpart
Contribution
Delivery

a.

b.
c.

94

of the Disbursement
Voucher and who
received the Check is
the right payee. If not,
check whether he/she
is authorized.
Check whether
payment to
suppliers/laborers is
made within ten (10)
working days.
Check whether Official
Receipt is attached to
paid DVs and that
amount is consistent
with the OR.
For payroll payment,
check whether recipient
of cash is the right
laborer. If not, check
whether person who
received is authorized.
For payroll payment,
check whether cash is
fully disbursed. If not,
check whether
unreleased cash is
deposited back to the
account.
Check whether RFR is
submitted to the ACT
within ten (10) working
days after MIBF-PRA.
For succeeding
tranches, check
whether RFR is
submitted within five
(5) working days upon
reaching the financial
and physical
accomplishment
requirements.
Check whether LCC are
delivered on time. If
not, verify how this
affected sub-project
implementation and
what actions have been
undertaken to address
the problem.
Ascertain whether all
LCC delivered have
been accounted for.
Check correctness of
valuations of In-Kind
LCC and completeness
of its supporting

*RFR Logbook
*Transmittal Letter

*LCC for SPI


Monitoring Report
*Construction
Logbook
*Vouchers for LCC
and its Supporting
Documents
*Materials Record
Sheet (MRS)
*CERS
*Certification
*Database of Prices

Community Finance Manual

VI. Materials
Inventory
Management
VII. Filing of
Financial
Documents

documents/proof of
delivery.
a. Check whether
materials delivered are
received, properly
stored, and accounted
by the MIT.
a. Check completeness,
filing, and safekeeping
of all financial
documents.

*Logbook
*Updated and signed
MRS

b. Municipal Level
The RFA is expected to know the financial aspect of implementation of
each approved subproject. Hence, he/she is required to visit each
community at least once during sub-project implementation to meet and
talk with the community volunteers. Equally important is the monitoring
of the performance of the MFA assigned in the municipality. Using the
following monitoring checklist, the RFA should be able to assess the
performance of the MFA and render appropriate technical assistance
thereof.
AREAS OF
ACTIVITIES
CONCERN
I. ACT Work a. Check whether
and Financial
WFP is within cost
Plan
parameters and
timelines.

MEANS OF
VERIFICATION
*ACT WFP initialed by
MFA

II. Job
Coaching

*Cash Book
*LCC IK Journal
*Bank Reconciliation
*Annex 11
*Narrative Report
*Minutes of Meeting
*Documentation of FM
Trainings

III. Request
for Fund
Release

95

a. Conduct spot
checking by
examining
community books
and DVs.
b. Validate thru
interview with
Community
Volunteers
whether job
coaching is being
done
c. Attend monthly
MFW.
a. Require MFA to
attach list of
findings in RFR
folder
b. FA I to initial
before RFA or AC
in the RFR.
c. Check whether
ACT review of
RFRs is within the

*Checklist of findings
*RFR tracking tool
(where number of
days of review and
compliance to BTS
RFRs is specified)

Community Finance Manual

TIMEFRAME
Ten (10)
working days
upon receipt
of WFP from
FO
Monthly
(during Subproject
Implementati
on)

During
Monthly FM
Meeting (for
RFR
submitted
during the
month)

REMARKS

allotted 5 days.
d. In case of RFRs
with findings,
check whether
concerned
BSPMCs are
immediately
informed of its
findings and
recommendations.
IV.
a. Assess result of
Disbursemen
the MFW and
t of Funds
regional fiduciary
workshops.
V. FM
Reports

a. Set deadline on
the submission of
report at ACT
level
b. Check whether
municipal
consolidated
reports are
reconciled with
community
reports.
VI. Monitor
a. Review MFA
and Validate
monitoring tool
Financial
and journal
Status of
Sub-projects
VII. Inputs
a. Check minutes of
PDW
on Program
b. Check accuracy of
and Work
POWs.
(Indirect
Costs)
VIII.
a. Attend
Community
community
Finance
finance training
Training
to ensure that
MFA delivers
correctly.
IX. Provide
a. Review minutes
updates to
of MIAC
different
meetings or any
stakeholders
other meetings
with
stakeholders
X.
a. Check minutes of
Installation
O&M training
of FMS
b. Review financial
particularly
books and reports
on IGPs
of O&M group.
XI. Filing
Check the existence
system
of filing cabinet &

96

*Inventory of DVs
*Minutes of Fiduciary
Workshop
*Working
Papers/Matrix of
Findings
*FM Reports
*Narrative Reports

Monthly
during Subproject
Implementati
on
Monthly (FO
shall
establish its
own
deadline)

*MFA Monitoring Tool


*Journal

Monthly

*Minutes of
meetings/trainings
*POWs

Project
Development
Stage

*Narrative Report

Once in a
cycle

*Minutes of Meeting

Monthly

*Minutes of Trainings

SP almost
completed

Community Finance Manual

During
Monthly FM

completeness of
financial files and
documents

Meeting

c. Regional Level
Monitoring of the performance of the region in its implementation of the
Projects financial management system is the responsibility of the Central
Office finance staff. On community finance, the monitoring will focus on
whether the region, specifically the Regional Financial Analyst has
ensured that the internal control measures put in place for the
economical, efficient, and effective implementation of communityapproved sub-projects remain in place and working. At the minimum,
monitoring assessment shall be done semi-annually to each region. The
following monitoring checklist shall be used to assess the performance of
the region.
AREAS OF
CONCERN
I. Pre-municipal
engagement

II. Provision of
technical
assistance

97

ACTIVITIES
a. Check whether LCC
plans met minimum
requirements of the
Project and that costs
are within the
established
parameters.
a. Check whether RFA
hold regular fiduciary
workshops.
b. Review minutes of
RPMT meetings and
results of fiduciary
workshops and assess
appropriateness of
rendered TA.
c. Check whether RFA
has visited each subproject at least once
during sub-project
implementation.
d. Review monthly feed
back reports of MFA
and the results of the
community level
monitoring checklist
and evaluate how RFA
respond to the
financial issues and
concerns raised
therein by checking
his/her TA agenda and
travel/accomplishment
reports.
e. Validate thru interview

DOCUMENTS TO
REVIEW
*LCC Plan

*Minutes of RPMT
meetings
*Minutes of fiduciary
workshops
*RFA travel and
accomplishment
reports
*MFA feed back
reports
*Community level
monitoring checklist

Community Finance Manual

REMARKS

f.
g.

III. Funds Flow

a.

b.

IV. Reports

a.

b.

c.

V. Financerelated
Grievances

a.

b.

98

with MFAs and MCTFAs and CVs whether


correct TA has been
timely provided.
Randomly attend FM
meetings and fiduciary
workshops.
Randomly visit
communities to verify
compliance of RFA and
MFAs on the Projects
financial monitoring
system.
At the CO, periodically
check percentage of
pending over
submitted RFRs and
the recurring reasons
for pendency.
Check whether good
RFRs are submitted to
the CO within five (5)
working days after
receipt from ACT. For
non-compliant RFRs,
check timeliness of the
FO to relay findings
and recommendations
to the ACT.
Check whether reports
are submitted
completely and on
time.
Validate accuracy of
regional reports by
reconciling with the
municipal and
community reports.
Check whether RFRs
and its supporting
documents, original
paid disbursement
vouchers and its
supporting
documents, and
financial progress
reports are timely
submitted to the COA.
Check timely
submission of
quarterly financerelated grievances to
the CO.
Verify whether RFA
has acted timely and
correctly to financerelated grievances.

*RFR Databases (FO


and CO)

*CO Report Tracking


*Regional Reports
*Municipal Reports
*Community Reports
*Transmittal Letters

*Grievance Reports
with status of actions
taken

Community Finance Manual

VI. COA
Coordination

VII. Audit
Findings

99

a. Confer with COA to


verify whether RFA
has provided them
orientation, manuals,
and latest Project
policies and
guidelines.
b. Check whether RFA
has coordinated with
COA for the prompt
submission of their
audit reports in time
for the submission of
the audited
consolidated financial
statements.
a. Check whether
COA/CO Finance/WB
findings are timely
and fully addressed
and recommendations
are followed.

*COA AOMs/Aide
Mem/Co Finance
Feed back reports
*Management
Letters
*COA Rejoinders

Community Finance Manual

CHAPTER 11
FINANCIAL MANAGEMENT SYSTEM FOR
KALAHI-CIDSS OPERATION AND
MAINTENANCE
GROUPS/ASSOCIATIONS
Organizational Structure and FM Roles of Officers
Cash Receipts/Collection
Cash Disbursements/Payments
Recording and Filing
Determining Non-Cash Transactions
Preparation of Financial Reports

100 Community Finance Manual

Sub-projects that are income generating shall have a separate financial


management systems to ensure project sustainability.

11.1 Organizational Structure and FM Roles of Officers


As a first step, the community shall organize and form an association
which shall have the primary purpose of generating funds to carry on the
various operational and maintenance activities of the income generating
Sub-project. The community members shall elect the officers of the
Association, which shall include among others, the following vital
positions: i) Operations In-charge, ii) Treasurer, iii) Cashier/Collector and
iv) Bookkeeper, who shall have the following functions:
Operations In-charge in charge of the day to day operations of the
facility. In his/her absence, the Association shall assign a replacement in
order not to hamper the day to day operations. He/she shall see to it that
all revenues generated from the facility/Sub-project are properly and
accurately accounted for.
Treasurer takes custody of the funds coming from the day to day
collections of the Cashier/Collector. In the absence of the
Treasurer/Cashier, the Association shall assign a replacement in order not
to delay collection of revenues.
Cashier in-charge of collecting fees from the beneficiaries/ customers.
He/she shall remit to the Treasurer the total amount collected at the end
of the day.
Bookkeeper records the financial transactions of the Association (e.g.
cash collections and disbursements) and prepares Financial Report/
Income Statement when required.
The Association shall open a bank account separate from the bank
account for Sub-project implementation which shall have at least two cosignatories for control purposes. All income generated from the Subproject or cash collections shall be deposited to the bank account opened
by the Association for the purpose. It shall be the discretion of the
Association to open a current/checking or savings bank account.

11.2 Cash Receipts/Collections

101 Community Finance Manual

a. Collections are the amount received by the Association in exchange for


the services rendered through the completed Sub-project (e.g. fare for
boat Sub-project, payments from rice/corn mills, sale of meat products
for meat processing facility, dues from beneficiaries of water systems
etc).
b. The Collector/Cashier shall issue a pre-numbered Official Receipt (OR)

or Acknowledgement Receipt (AR) or equivalent receipt (ticket for toll


fees, boat ticket etc) in two copies for all cash collections. The original
copy shall be given to the customer making payment and the duplicate
copy shall be kept by the Treasurer/Cashier for record purposes. To
ensure fund controls, the AR should be color coded (i.e. white for the
original copy and any desired color other than white for the duplicate
copy). In preparing the OR/AR, the Treasurer/Cashier should use
carbon paper to produce a duplicate copy. In no case shall the original
and duplicate copies of the AR be prepared separately.
Date

Particular

Amount

AR/OR
No.

c. He/she then accomplishes List of Collection in three (3) copies every


day. Distribution of copies is as follows: Original copy - Treasurer,
duplicate copy - Bookkeeper and triplicate copy retained as file. The
format of the List of Collection contains the following:
List of Collection
Date: ___________________
No : ____________________
No.
1
2
3

Particular

Prepared by:
Verified by:
Recorded by:

Amount

OR/AR

Collector/Cashier
Bookkeeper
Treasurer

d. The Treasurer shall verify the cash collection received from the
Collector/Cashier versus the List of Collection.
e. The Treasurer also retains original copy of List of Collection and records
the same in
the Treasurers Journal which contains the following

102 Community Finance Manual

after which he/she shall keep the cash in the Cash box for deposit the
next banking day.
Date

Refer
ence

Particular

Receipt

Disbursement

Cumulative
Balance

f. The Bookkeeper receives the duplicate copy of the List of Collection and
records the transactions in the Cash Book (The format is the same as
what is used in the Sub-project implementation.). He /she then file the
copy of the List of Collection.

11.3 Cash Disbursements/Payments


a. Disbursements or Payments are the amount paid to outside creditors/
suppliers for the purchase of supplies and materials as well as payment
for labor needed for the operations and maintenance of the Subproject (gasoline for boat and corn mill, payments for electric bills for
water system or any electric-run machines/facilities, purchase of raw
materials needed for production, etc).
b. Procedure for payment considered non-petty transaction (For petty
transaction, follow the petty cash principle during implementation):
1. Payee/Claimant submits request for payment to the treasurer where
attached to it are the required supporting documents as evidence of
payment such as official receipts, RER, cash invoice in case of
reimbursement and for payment billing statement or statement of
account and copy of purchase order.
2. Treasurer verifies the correctness of the claim. Prepares
disbursement voucher and check (if checking account) or
withdrawal slip (if savings account) to be forwarded to the
signatories for approval and signature.

103 Community Finance Manual

3. Approving Bodies (President or somebody within the organization


who is authorized to approve) approves and signs the check or
withdrawal slip and returns the documents to the treasurer.
4. Treasurer i) For check issues the check to the payee/claimant
and let the payee/claimant sign in the Received by portion of the
DV; ii) For withdrawal slip- withdraws the fund from the bank
and turnovers the cash to the payee/claimant while the latter signs
in the Received by portion of the DV.
c. Each disbursement should be accompanied with Disbursement Voucher
(the Association may adopt the DV format used during Sub-project
implementation).

11.4 Recording and Filing


a. It is greatly recommended that all transactions be recorded daily. If
recording is done regularly, periodic reports can be prepared quickly
and accurately.
b. Safekeeping the books of accounts, related records, accounting forms
and reports are the major responsibilities of the Bookkeeper.
All
records and documents should be locked up and access should be
limited to authorized Association officers and personnel.
c. The Association Officers should agree on the reports to be prepared,
who received the report and how frequent is the submission.
d. The following procedures shall be followed:
i) Secure the Treasurers Journal as well as the files of Collection
List, OR/AR, Deposit Slips and DVs.
ii) Compare Collection and OR/AR issued to check if all OR/AR have
been fully accounted in the Collection List or all collections have
been issued OR/AR.
iii) Check if all OR/AR issued are recorded in the Treasurers Journal.
iv) Check the accuracy of footings.
v) In checking, the Bookkeeper should put markings to indicate a
trail.
e. The Bookkeeper shall record all transactions in the Cash Book. (The
Association may adopt the format of the Cash Book used during Subproject implementation).

104 Community Finance Manual

11.5 Determining Non-Cash Transactions


Determining Accounts
transactions)

Receivable

and

Accounts

Payable

(Non-cash

a. Non-cash Transactions do not involve cash collections or payments and


therefore are not to be recorded in the Cash Book. Examples of noncash source documents are those used in water system and
electrification projects. These are the Billing form and Invoices or
Statements. The Billing form documents money that is owed to the
Association while the Invoices or Statements are documents made by
other showing money owed by the Association.
b. Accounts Receivables are the equivalent amount of services rendered
or products sold to individuals indicated in the Billing Form which
remained not collected as of cut-off date. On the other hand, Accounts
Payables are the equivalent cost of procured items and/or labor for the
operations and maintenance of the Sub-project which remained unpaid
as of cut-off date.
c. All Accounts Receivables and Payables should also be properly
accounted for in a separate record.

11.6 Preparation of Financial Reports


a. The Bookkeeper shall prepare a Financial Report/Income Statement.
b. Procedures to prepare Financial Report/Income Statement:
b1. To determine the total revenues generated from the Sub-project,
the Bookkeeper shall add the total collections for the period plus the
total accounts receivables or those billings which were remained
uncollected.
b2. To determine the total amount of expenses incurred for the period
(including those not yet paid or accounts payable), the expenses should
be classified per specific item of expenditure (e.g. gasoline, labor,
materials, electric) and should also be categorized whether Direct Cost
or Operating Cost.

105 Community Finance Manual

b3. Deduct the total expenses from the total revenues. The result
represents the Net Income or Net Loss for the period.
For monitoring purposes, it is most ideal to prepare Financial Report/
Income Statement every two weeks. This should, however, be decided
upon by the Association.
Other suggested Fund Management Procedures for Income Generating
Sub-projects are provided in the KC Manual for Project Sustainability
(Operations and Maintenance).

106 Community Finance Manual

CHAPTER 12
BSPMC FORMS AND ANNEXES
BSPMC Forms
Annexes
Attachments

107 Community Finance Manual

12.1 BSPMC Forms


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.

Sub-project Concept Form (BSPMC Form No. 1)


Sub-project Program of Works (BSPMC Form No. 2)
Local Counterpart Contribution Plan (BSPMC Form No. 3)
Planned Community Procurement Packaging with Schedule of InKind LCC (BSPMC Form No. 4)
Projected Schedule of Grant Fund Releases/Tranches (BSPMC
Form No. 5)
LBP Certification of Bank Account Opened (BSPMC Form No. 6)
Request For Fund Release (BSPMC Form No. 7)
Disbursement Voucher (BSPMC Form No. 8)
Weekly Schedule of Disbursements (BSPMC Form No. 9)
Voucher for Local Counterpart Contributions (BSPMC Form No.
10)
Petty Cash Voucher (BSPMC Form No. 11)
Petty Cash Liquidation Summary (BSPMC Form No. 12)
Employment Record Sheet (BSPMC Form No. 13)
LCC Certification (BSPMC Form No. 14)
Time Sheet (BSPMC Form No. 15)
Construction Logbook (BSPMC Form No. 16)
Sub-project Work Schedule & Physical Progress Report (BSPMC
Form No. 17)
Monthly Physical Progress Report (Non-Infrastructure SubProject) (BSPMC Form No. 17-A)
Actual Community Procurement Packaging (BSPMC Form No. 18)
Technical Assistance Fund Journal (BSPMC Form No. 19)
Acknowledgment Receipt (BSPMC Form No. 20)
TAF Eligibility Checklist (BSPMC Form 21)
Cash Count Sheet (BSPMC Form 22)

12.2 Annexes
1.
2.
3.
4.
5.

Statement of Sources and Uses of Funds (Annex 1)


Regional Consolidated Quarterly Financial Progress Report
(Annex 2)
Uses of Funds by Project Activity (Annex 3)
Regional Consolidated Status of Sub-project Fund Utilization
Report (Annex 4)
Regional Consolidated Status of Local Counterpart Contribution
(Annex 5)

108 Community Finance Manual

6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Municipal Consolidated Status of Sub-project Fund utilization


Report (Annex 6)
Municipal Consolidated Status of Local Counterpart Contribution
(Annex 7)
Municipal Local Counterpart In-kind Contribution Journal for CBIS
(Annex 8)
List of Checks Issued (Annex 9)
RFR Review Sheet (First Tranche) (Annex 10a)
RFR Review Sheet (Second Tranche) (Annex 10b)
RFR Review Sheet (Third Tranche) (Annex 10c)
Status of Sub-project Fund Utilization (Annex 11)
Cash Book (Annex 12)
Local Counterpart Contribution Journal (Annex 13)

11.3 Attachments
1. Memorandum of Agreement with LBP
2. Tripartite Sub Project Agreement
3. Revised Schedule of Premium Rates (Fidelity Bond)

109 Community Finance Manual

BSPMC Form No. 1

SUB-PROJECT CONCEPT FORM


Barangay

Municipality

Province:

Region:

A. GENERAL INFORMATION
Name of proposed sub-project:
Category:

Public Goods

Human Resource Dev't.

Enterprise

What needs of the community will the proposed sub-project address?


1
2
3
B. TECHNICAL DESCRIPTION
Physical target:
Person/s who assisted in the preparation of techical proposal:
Proposed scope of works to be undertaken:

Cost parameter:

Manpower requirement / sources: (skilled)


Equipment requirement / sources:
Other component included in the proposal (e.g. trainings)
Procurement Method/s to be adopted:
C. FINANCIAL ECONOMIC ASPECT
Total Estimated Cost :
Cost Sharing Arrangement:
Grant Amount
LCC: BLGU
Community
MLGU
PLGU/Others
sub-total
Total LCC Cash
Total LCC In-kind

Php
Direct Cost

Indirect Cost

Total

Total number of Household (HH) in the barangay:

% total

Total population
Male
Female
% to total

Number of HH currently without access to the needed services


that can be served by the proposed sub-project:
Current expenses without the proposed SP
Expected expenses after completion of proposed SP:
Other benefits can be derived from the proposed sub-project:
D. SAFEGUARD CONCERNS
Any displacement or relocation of community members during implementation?
Acquisition of proposed site/location?
Deed of Sale
Donated
Proposed site within the reservation areas?
Yes
No
Necessary permit/s accomplished? (e.g ECC, CNC)
Yes
No
Mitigating measures to be undertaken for the environmental impacts of the sub-project?

Yes
LGU Ownd

No
others specify
EMP Only

E. SP SUSTAINABILITY
Is there an existing O&M group or still to be organized?
Is the community willing to pay for Tariff and by How much?
Other sources of funds for the operation and maintenance activities?
Identified capability building requirements for O&M group?
How do we plan to maintain the completed sub-project?

Prepared by:

Approved for endorsement to the MIBF

Head, Project Preparation Team

Brgy. Chairperson

Approved for endorsement to KALAHI-CIDSS:

Technical Verification by:

Municipal Mayor/MIBF Convenor

Area Coordinator

BSPMC Chairperson

MIAC Representative

BSPMC Form No. 2


OFFICE OF THE BARANGAY SUB-PROJECT MANAGEMENT COMMITTEE
Barangay ____________________________
Municipality of __________________________
Province of ____________________________

SUB-PROJECT PROGRAM OF WORKs


Sub-Project Title
Category
Physical Target
Total Sub-Project Cost
Mode of Implementation
Project Description:

Sub-Project Duration
Equipment Needed
Technical Personnel
Unit of
%
Quantity
measure
Wt.

Scope of Work
(Direct Cost)

Item No.

Unit Price

Total

Other Source

Total Cost

Total
Breakdown Estimated
Project Cost

Sources of Fund
KALAHICIDSS Grant

Community

Local Gov't.Units

A. Direct Cost
Materials Cost
Equipment Rental
Labor Cost:
a. Skilled
b. Unskilled
Sub-Total A
B. Indirect Cost
Pre-Engineering
Supervision
Contractor's Profit
Taxes
Hand Tools
Material Testing
Admin and Overhead
Sub-Total B
TOTAL (A+B)
ADD: Contingency
%
Total Estimated Cost
ADD: O&M (Other amenities)

Grand Total
Prepared by:

Approved by:

Sevice Provider/ACT-DAC

BSPMC Chairperson

Reviewed by:

Concurred by:

ACT-Deputy Area Coordinator

Barangay Chairperson

Recommending Approval:
Municipal Mayor
Municipal Engineer

Noted:
Regional Infrastructure Engineer

Note:

Costing to be used on the MIBF will be the Total Estimated Cost

BSPMC Form No. 3


KALAHI-CIDSS PROJECT

Local Counterpart Contribution Plan


Barangay: ___________________________________
Municipality: ____________________________________
Province: ______________________________________
Sub-Project Title:
Budget Item

Unit used

No. of
Units

Per Unit
Cost

Total SubProj Cost

Pro-posed
Amount of
Grant

Local Counterpart Contribution (LCC) Sources


CommuTotal of
Others (Specify Date)
Mun LGU Brgy LGU
LCC
nity

Target Date of
Delivery of LCC

Example (follow the budget line items)


I. Administrative Cost
Office Space & Urilities

other

Amount

If exact

Office Supplies

fund

date can

Transportation Expenses

sources

not be

Committee Meetings

projected

Barangay Assemblies

just

II. Other Indirect Costs

write

Detailed Engineering Design

projected

Honorarium

month

III. Direct Cost


Labor
Materials
Equipment
IV. Operations & Maintenance
Prepared by:

Approved by:

Barangay Treasurer

BSPMC Chairperson

BSPMC Form No. 4


PLANNED COMMUNITY PROCUREMENT PACKAGING
Date Prepared: ____________________
Barangay: _____________
Municipality :__________
Province:_____________

Estimated Cost:

1st Tranche ______________

Mode of Implementation: CFA

2nd Tranche ______________

KC Cost:______________
LCC: _________________
In-kind : ___________
Cash: _____________

3rd Trance _______________

BY CONTRACT
PROPOSED
IMPLEMENTATION
SCHEDULE

ESTIMATED COST INVOLVED AND SCHEDULE OF DELIVERY


PACKAGE
ITEMS

QTY.

UNIT

TOTAL

PROC.
METHOD

st

1 Tranche
Grant

LCCCash

nd

2 Tranche
Grant

LCCCash

rd

3 Tranche
Grant

LCCCash

MONTH

Total
Grant

Package 2

Package 1

PACKAGES

Name of proposed subproject:_______________


Total Estimated Cost:______________________
Subproject Duration:______________________

TOTAL

Workshop output of:

Reviewed by:

Submitted by:

____________________
Procurement Team Head

_________________________
DAC/Municipal Engineer

____________________
BSPMC Chairperson

LCCCash

BSPMC Form No. 4b


SCHEDULE OF IN-KIND LOCAL COUNTERPART CONTRIBUTION
Date Prepared: ____________________
Barangay: _____________
Municipality :__________
Province:_____________

Estimated Cost:

1st Tranche ______________

Mode of Implementation: CFA

2nd Tranche ______________

KC Cost:______________
LCC: _________________
In-kind : ___________
Cash: _____________

3rd Trance _______________

BY CONTRACT
PROPOSED
IMPLEMENTATION
SCHEDULE

ESTIMATED COST INVOLVED AND SCHEDULE OF DELIVERY


PACKAGE
ITEMS

QTY.

UNIT

TOTAL

PROC.
METHOD

st

nd

nd

1 Tranche

2 Tranche

3 Tranche

In-Kind

In-Kind

In-Kind

MONTH

TOTAL
1

Package 2

Package 1

PACKAGES

Name of proposed subproject:_______________


Total Estimated Cost:______________________
Subproject Duration:______________________

TOTAL

Workshop output of:

Reviewed by:

Submitted by:

____________________
Procurement Team Head

_________________________
DAC/Municipal Engineer

____________________
BSPMC Chairperson

BSPMC Form No. 5


PROJECTED SCHEDULE OF GRANT FUND RELEASES/TRANCHES
KALAHI-CIDSS PROJECT
Barangay _______________
Municipality ________________
Province ____________________
Sub-Project Title:

Fund Releases/Tranches
First
Second
Third
Total

Amount

Projected Date Required


(If exact date can not be
Projected, month and week
Would be sufficient)

Prepared by:

Approved by:

Barangay Treasurer

BSPMC Chairperson

Note:
If the Request for Fund Release being submitted is not in accordance with the projected
schedule, a revised schedule should be submitted with accompanying explanation or justification
to the Area Coordinating Team Leader.

BSPMC Form No. 6


LBP CERTIFICATION OF BANK ACCOUNT OPENED

Date:
This is to certify that Barangay ____________________ has opened the KALAHI-CIDSS Brgy.
_______________________ (name of Barangay) current account with the Land Bank of the
Philippines with the following details:
LBP Branch:
Complete Address:
Telephone No.
Fax No.

_________________________________________________________
_________________________________________________________
________________________
________________________

Current Account Number:

__________________________

Authorized Signatories:
NAME

DESIGNATION

SPECIMEN SIGNATURE

1.
2.
3.
By:

LBP Branch Manager


Note: This form shall be submitted as part of the requirement for the approval of
detailed sub-project proposal by the MIBF. This will be used by the Area
Coordinating Team as source document in the preparation of Summary List of
Approved Sub-Projects (MIBF Form No. 1)

BSPMC Form No. 7

REQUEST FOR FUND RELEASE


___ 1st Tranche

___ 2nd Tranche

____ 3rd Tranche ____ Others (specify) _________

Region

Date (mm/dd/yy)

Province

Sub-Project ID No.

Municipality

Total Sub-Proj
Cost
LCC
Grant Funds

Barangay
Sub-Project Title:

To: The National Project Director


DSWD Regional Office

LBP Batasan Branch Manager

May we request for the transfer of funds to the following LBP Bank Account for the implementation of
the Kalahi-CIDSS approved Sub-Project stated above.
LBP Branch:
Address:

Account Name:

Bank Account No.

Amount of
No. of this Tranche
this Request

Previous
Amounts
Released

Cumulative
Total
including
this Request

Kalahi-CIDSS:

Requested by:
__________________________________
_________________________________
Barangay Sub-Project Management Committee
Punong Barangay
Chairperson
Reviewed as to completeness of requirements:
_____________________________
________________________________
Area Coordinator
Mun. LGU Local Poverty Reduction Action Officer
Date
Date
Regional Project Management Office:
National Project Management Office
Reviewed by:
_____________________________
Regional Financial Analyst
Recommended by:
________________________________
Regional Project Director
________________________________
Date

Approved by:
_______________________________________
National Project Director
_____________________________
Date

BSPMC Form No. 8


KALAHI-CIDSS PROJECT
Barangay:______________________
Municipality: ___________________________
Province: ________________________________

DV No. _____________
(must be pre-numbered)

DISBURSEMENT VOUCHER
Payee:
Complete Address:

Date: ______________

PARTICULARS

AMOUNT

Write full description of the transaction to be paid. For example, if several items were
Purchased, each item should be enumerated with the corresponding no. of units and unit
Price.
ACCOUNT TITLE
The Treasurer should fill this up using the chart of Accounts.
Received the amount of ___________________________________________ (P_________________)
in full payment of the account described above.
Date

O.R. No. (Write Official Receipt No.)

Received by:

Check No. (Write the no. of the Check issued


by the Treasurer)

PRINT FULL NAME OF THE PERSON RECEIVING THE PAYMENT. WRITE CLEARLY.
Signature over Printed Name

Prepared by:

Approved:

Barangay Treasurer
Reviewed by:
Municipal Financial Analyst

BSPMC Chairperson

BSPMC Form No. 09

KALAHI-CIDSS PROJECT
Barangay Sub-Project Management Committee
Barangay ________________________
Municipality _______________________
Province of __________________________
WEEKLY SCHEDULE OF DISBURSEMENTS
FOR THE WEEK ENDING ______________________________

Name of Payee

Particulars

Amount
Due

Date Due

Action Taken
(indicate if
Approved or not)

Remarks (Indicate reason for not


approving).

This authorizes the Barangay Treasurer to process the payments for the approved payables listed above. Actual payment shall be subject to the submission by
the payee of complete and correct documents.
Certified true and correct (All BSPMC Executive Committee Members present).
(Signature over Printed Name)

BSPMC Form No. 10


KALAHI-CIDSS PROJECT
Barangay: ______________________
Municipality:
Province:

VLCC No. ____________


VOUCHER FOR LOCAL COUNTERPART CONTRIBUTIONS
Contributor/Fund Source:
Complete Address:

Date: _____________

PARTICULARS

AMOUNT

ACCOUNT TITLE

Note: attach to this voucher, photocopy or duplicate copy of the source document.

Prepared by:

Concurred:

Approved:

________________________
(Write name of person preparing
the voucher)

_______________________
Write name of donor

BSPMC Chairperson

BSPMC Form No. 11


KALAHI-CIDSS PROJECT
Barangay ______________________________
Municipality: ___________________________
Province: ___________________________
PETTY CASH VOUCHER
PAYEE:

______________________________________________________

PARTICULARS

PCV No.
(Must be pre-numbered)
Date

AMOUNT

TOTAL

Requested by:

Approved by:

Received By:

(Name of Person making the


Request)

Sub-Project Implementation Head

(Print name of person


receiving the cash)

BSPMC Form No. 12


KALAHI-CIDSS PROJECT
PETTY CASH FUND LIQUIDATION SUMMARY (PCF - ___) Write the No. of this Liquidation Summary Report
For the Period _________ to ____________ , 20__
BARANGAY ____________________________________________
MUNICIPALITY __________________________________________
PROVINCE ________________________________________________
Expense Items
Date PCV No.

Payee

Particulars

Office Supplies
(inc photocopying)

Transportation
Expense

Others
(Specify)

Meals
Write
Other

expense
items

TOTAL

BSPMC
Prepared by:
Barangay Treasurer

Approved by:
BSPMC Chairperson

TOTAL

BSPMC Form No. 13


EMPLOYMENT RECORD SHEET
For Community Force Account Labor
For the period ______________
Name of Sub-Project:
Barangay:

Municipality: __________________

GENDER
NAME

Male

Female

AGE

Nature of Work
(e.g. Laborer,
Foreman, etc.)

TYPE:
Skilled

NO. OF
WORKING

Rate Per
Unskilled

Hour

Province: ______________

Day

Hours

Days

TOTAL
Labor

PLAN PAYMENT
Cash

Bayanihan

ACTUAL PAYMENT
(accum.)
Cash

Bayanihan

1
2
3
4
5
6
7
8
9
10
TOTAL
NOTE:
Rate - Is the rate per day or per hour of the community worker (cash plus "bayanihan" monitized)
Cash - Is the cash amount to be paid to community members for labor
Bayanihan- Cost of Labor not to be paid (Community Equity)
Prepared by:

Noted by:

__________________________
Head, Procurement Team

_____________________________
Head, Project Implementation Team

Approved by:

_______________________
Brgy. Treasurer

______________________
BSPMC Chairperson

Signature

BSPMC Form No. 14


Republic of the Philippines
Municipality of ______________
Province of __________________
Barangay ____________________

CERTIFICATION
THIS IS TO CERTIFY that ________________________________ and
(Name of Brgy. Chairman)
_________________________________ assure the KALAHI-CIDSS Project
(Name of BSPMC Chairman)
that we will provide in-kind equity in the form of materials for our proposed subproject , __________________________________________.

(Name of sub-project)

Description of the
materials

Quantity

Prevailing Unit
Price

Total Estimated Cost

Estimated Cost

ISSUED on this _______ day of _________________, 200__.

__________________________
Signature of BSPMC Chairperson

___________________________
Signature of Brgy.Chairperson

Attested: As to the prevailing unit


price in the area.

Concurred by:

__________________________
Municipal Engineer

___________________________
Deputy Area Coordinator

BSPMC Form No. 14


Republic of the Philippines
Municipality of ____________
Province of __________________
Barangay ____________________

CERTIFICATION
THIS IS TO CERTIFY that ________________________________ and
(Name of the Municipality)
_________________________________ assure the KALAHI-CIDSS Project
(Name of BSPMC Chairman)
that we will provide in-kind equity in the form of equipment for our proposed
sub-project , __________________________________________.

(Name of sub-project)

Description of the
Equipment

No. of
Unit

Prevailing
Rental Rate

No. of days
committed

Total Estimated Cost

Estimated Cost

ISSUED on this _______ day of _________________, 200__.


__________________________
Name & Signature of Mun. Mayor

___________________________
Signature of BSPMC Chairperson

Attested: As to the prevailing rental


rates in the area.

Concurred by:

__________________________
Municipal Engineer

___________________________
Deputy Area Coordinator

BSPMC Form No. 15


KALAHI-CIDSS PROJECT
TIME SHEET
Month ______ Year ______ NAME _____________ DESIGNATION____________
Total
Hrs.
Day

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Work
Accomplishment/Activity

Work
Location

Rate/Day or
Rate/Month
_________

P
X

Total No. of
Days worked
_________
=
Total Amount
of compensation ________

I HEREBY CERTIFY that the


time report above is a true
and
complete statement of my

Total Hours
working time for this period.

Approved by:

BSPMC Chairperson
Date

Name of Committee/Team Member


Date

BSPMCFormNo.16

CONSTRUCTIONLOGBOOK
Nameofsubproject:___________________________________________________________________
PhysicalTarget:__________________________TotalApprovedCost:__________________________
Location:_____________________________________________________________________________

Date:___________________Day:__________________Weather:_______________________

LaborForceAvailable:

SkilledMen:Foreman_____________

UnskilledMen :_______________
Carpenter_____________
UnskilledWomen:________________
Mason_____________

SkilledWomen(Specify):__________
Plumber_____________

Welder _____________

H.E.Operator____________

L.E.Operator____________

Equipment/Toolspresentatsite:(specifyandnumber)

___________________
____________________
____________________

___________________
____________________
____________________

___________________
____________________
____________________

Activitiesundertaken:

Output/softheday

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

Problemsencountered&actiontaken:

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

BSPMC/ProjectStaff/Visitors:

___________________
____________________
_____________________

___________________
____________________
_____________________

___________________
____________________
_____________________

___________________
____________________
_____________________

Comments/Observations/Recommendations:

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

______________________________________________
__________________________

BSPMC Form No. 17

BARANGAY SUB-PROJECT WORK SCHEDULE & PHYSICAL PROGRESS REPORT


For the Month of __________________, 20____

Name of Sub-project: ___________________________________


Physical Target: _____________________________
Region: __________________________________
Province : __________________________________
Municipality : _______________________________
Barangay: __________________________________

Total Sub-Project Cost:_______________________


Direct Cost:
Indirect cost:
Date Started:________________________________
Target Completion Date: ______________________
Mode of Implementation:

Labor
Generated

Total

Ave.
Rate/Day

No. of Days

Male
Female
Male
Unskilled
Female
TOTAL
Skilled

I. To be filled up by MCT-Deputy Area Coordinator


DESCRIPTION

ITEM No.

QTY

UNIT

WEIGHT
(%)

AMOUNT

Physical Previous
Target
Cumm.

DURATION
Month 1

Month 2

Month 3

Month 4

Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
Planned
Actual
TOTAL

II To be filled up by MCT-Deputy Area Coordinator


PERIODIC
CUMULATIVE
PERIODIC
CUMULATIVE

% PROGRESS (PLANNED)
PHYSICAL
% PROGRESS (ACTUAL)

III. Major Issues Encountered:

IV.

Recommendations

Prepared by:

Concurred by:

Reviewed and checked by:

_____________________________________
MCT-Deputy Area Coordinator and/or Service Provider

Proj. Implementation Team and MIT Leaders

ACT - Deputy Area Coordinator

Approved by:

Noted:

____________________________
BSPMC Chairperson

Municipal Engineer

Note: Attach Material Records Sheet if physical accomplishment lags behind financial disbursements.

Regional Infrastructure Engineer

BSPMC FORM NO. 17-A


Monthly Physical Progress Report (Non-Infrastructure Sub-Project)
For the Period from ______________ to ____________________
Region
Province
Sub-Project

Sub-Project Component
Activities

Municipality
Barangay Sub-Project ID No.

Unit/Performance
Indicator

Work
Target (No.
of Units)

Accomplishment
As of Previous
Period

For the
Current
Period

Total

Percent of
Work Target

Remarks

Contents of this column


should be taken from the
Approved detailed SubProject Proposal

Prepared by:

Verified by:

Approved by:

Head, Sub-Project Implementation Team

Head, Monitoring & Inspection Team

BSPMC Chairperson

Area Coordinator

BSPMC Form No. 18


ACTUAL COMMUNITY PROCUREMENT PACKAGING
Date Prepared: ____________________
Barangay: _____________
Municipality :__________
Province:_____________

Estimated Cost:

1st Tranche ______________

Mode of Implementation: CFA

2nd Tranche ______________

KC Cost:______________
LCC: _________________
In-kind : ___________
Cash: _____________

3rd Trance _______________

BY CONTRACT
PROPOSED
IMPLEMENTATION
SCHEDULE

ESTIMATED COST INVOLVED AND SCHEDULE OF DELIVERY


PACKAGE
ITEMS

QTY.

UNIT

TOTAL

PROC.
METHOD

st

1 Tranche
Grant

LCCCash

nd

2 Tranche
Grant

LCCCash

rd

3 Tranche
Grant

LCCCash

MONTH

Total
Grant

Package 2

Package 1

PACKAGES

Name of proposed subproject:_______________


Total Estimated Cost:______________________
Subproject Duration:______________________

TOTAL

Workshop output of:

Reviewed by:

Submitted by:

____________________
Procurement Team Head

_________________________
DAC/Municipal Engineer

____________________
BSPMC Chairperson

LCCCash

BSPMC Form No. 19


KALAHI-CIDSS PROJECT
TECHNICAL ASSISTANCE FUND JOURNAL
BARANGAY __________________
MUNICIPALITY _________________
PROVINCE _________________
BANK ACCOUNT NO. _______________________
Cash Receipts
Date

DV No.

Payee

Particulars

Grants

LCC
Write
Source
of cash
contri.

TOTAL

Office Communi
Sub-Total
Supplies
cation

Cash Disbursements
Travel

Materials

Others
Write
other
expense
items

Sub-Total

Balance

BSPMC Form No. 20


KALAHI-CIDSS PROJECT
Republic of the Philippines
Province of ______________
Municipality ______________
Barangay _______________

ACKNOWLEDGMENT RECEIPT
AR# __________
Date __________

Please acknowledge receipt in the amount of ____________________________


_________________________________________________ (P ____________)
Received from ____________________________________________________
For the purpose of _________________________________________________
________________________________________________________________
________________________________________________________________

Cash/Check No.
Date
Amount

:
:
:

_____________
_____________
_____________

Prepared by:

_________________________
(Signature Over Printed Name)

Received by

_________________________
(Signature Over Printed Name)

Date/Time Received:

_________________________

BSPMC Form No. 21.


Technical Assistance Eligibility Checklist
(For Use of Area Coordinator or Deputy Area Coordinator)
BARANGAY _____________________
MUNICIPLAITY ___________________
PROVINCE _______________________
Please check appropriate box:
YES

NO

1. Is there a resolution passed by the Barangay Assembly for the availment


of TAF?
2. Does the project fall under technically specialized subprojects as indicated
in Items 3.2 and 4.1 of KALAHI-CIDSS Operations and Finance Joint
Guideline
No. 1?
Please indicate project type _____________________________
3. Is the expertise not available in the community or in the cluster of
Communities?
4. Is the technical assistance beyond the capacity of the existing Project and
Municipal staff?
5. Is there already an organized Project Preparation Team?
6. Is the community or the cluster of communities willing to open a current
bank account and provide initial deposit of P1,000.00 as Local Community
Contribution?

Date ______________________
MEMORANDUM
For

The Regional Project Manager


KALAHI-CIDSS Project

FROM

The Area Coordinating Team

SUBJECT

Technical Assistance Fund for Barangay ___________

In compliance with the provisions of KCKKB Operations and Finance Joint Guideline No. 1,
we have reviewed/validated the identified project of Barangay (or Cluster of Barangays, as
the case may be) _________________ to determine their eligibility to the 3% Technical
Assistance Fund (TAF) and have found that on the basis of the above information, Barangay
(or cluster) ________________ is eligible to avail of said Technical Assistance Fund.
I certify further that all the information supplied herein are true and correct to the best of my
knowledge.
Signed: Area Coordinator or Deputy Area Coordinator

BSPMC Form No. 22


KALAHI-CIDSS PROJECT
Barangay ___________________________
Municipality ________________________
Province __________________________

CASH COUNT SHEET


Date of Cash Count: _______________________
Beginning Balance
Less: Espenses
Date

xxxx
PCV No.

Particulars

Amount
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx

Total Expenses
Ending Balance

xxxx
xxxx

Cash Count
Denomination

No. of Pieces

Amount

P1,000
'500
'200
'100
'50
'20
'10
'5
'0.25
'0.10
'0.05
Total
Cash Count conducted by:

In the presence of:

____________________________
Audit & Inventory Committee Head

_________________
Barangay Treasurer

ANNEX4
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
REGIONAL CONSOLIDATED STATUS OF SUBPROJECT FUND UTILIZATION REPORT
FOR THE QUARTER ____________

REGION:

MUNICIPALITY

TOTAL PLANNED:

TOTAL ACTUAL:

CASH:

CASH:

INKIND:

INKIND:
UTILIZATION

NO. OF
APPROVED
SUBPROJECT

KC GRANT

LCC

TOTAL

e (c+d)

TOTAL PROJECT COST

GRANTS
PREVIOUS
MONTH
f

LCC

THIS MONTH

TOTAL

h (f+g)

PREVIOUS
MONTH
i

TOTAL

CUMULATIVE
TOTAL

BALANCE

THIS MONTH
j

k (i+j)

l(h+j)

m (e-l)

Prepared By:

Certified Correct:

Noted by:

Financial Analyst

Regional Financial Analyst

DSWD-Regional Director/ARD

Sources:
Status of Subproject Fund Utilization Report (Annex 11)
Municipal Consolidated Status of Subproject Fund Utilization Report (Annex 6)

ANNEX 5
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
FIELD OFFICE ___
REGIONAL CONSOLIDATED STATUS OF LOCAL COUNTERPART CONTRIBUTION
FOR THE QUARTER _________
ACTIVITIES

Planned

PLGU
Actual

Balance

Planned

MLGU
Actual

Balance

Planned

BLGU
Actual

Balance

COMMUNITY/OTHERS
Planned
Actual
Balance

CEAC:
Social Preparation
Project Identification/Selection
Project Approval
Technical Trainings for Volunteers
Implementation Support
Monitoring and Evaluation
MIAC Meetings
CBIS:
Trainings
Personnel Services
Admin Cost
M&E
Sub-Total
SPI
Sub-Total
TOTAL
Prepared By:

Certified Correct:

Noted by:

Financial Analyst

Regional Financial Analyst

DSWD-Regional Director/ARD

Sources:
LCC Delivery Plan
Subproject Fund Utilization Report (Annex 11)
Municipal LCC Journal for CBIS (Annex 8)
Municipal LCC (Annex 7)

Planned

TOTAL
Actual

Balance

ANNEX6
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
MUNICIPAL CONSOLIDATED STATUS OF SUBPROJECT FUND UTILIZATION REPORT
AS OF ____________

REGION:

TOTAL PLANNED:

TOTAL ACTUAL:

PROVINCE:

CASH:

CASH:

MUNICIPALITY:

INKIND:

INKIND:

BARANGAY

UTILIZATION

TOTAL PROJECT COST

SUBPROJECT
TITLE

GRANTS

KC GRANT

LCC

TOTAL

e (c+d)

PREVIOUS
MONTH
f

LCC

THIS MONTH

TOTAL

h (f+g)

PREVIOUS
MONTH
i

TOTAL

CUMULATIVE
TOTAL

BALANCE

THIS MONTH
j

k (i+j)

l(h+j)

m (e-l)

Prepared By:

Reviewed by:

Certified Correct:

Noted by:

Financial Analyst

Municipal Accountant

Regional Financial Analyst

DSWD-Regional Director/ARD

Source: Subproject Fund Utilization Report (Annex 11)

ANNEX7
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
MUNICIPAL CONSOLIDATED STATUS OF LOCAL COUNTERPART CONTRIBUTION
AS OF ____________
PROVINCE:

KC GRANT:

TOTAL PLANNED:

TOTAL ACTUAL:

MUNICIPALITY:

LCC:

CASH:

CASH:

INKIND:

INKIND:

No. of Barangays:
MLGU
CATEGORY
CBIS

ACTIVITIES

Planned

Actual

BLGU
Balance

Planned

Actual

OTHERS (see attached sheet)


Balance

Planned

Actual

Balance

TOTAL
Planned

CEAC:
Social Preparation
Project Identification/Selection
Project Approval
Technical Trainings for Volunteers
Implementation Support
Monitoring and Evaluation
MIAC Meetings
Trainings
Personnel Services
Admin Cost
Sub-Total

M&E

Monitoring and Evaluation


Sub-Total

SPI

Subproject Implementation
Sub-Total
TOTAL

PREPARED BY:

APPROVED BY:

REVIEWED BY:

NOTED BY:

MUNICIPAL ACCOUNTANT

MUNICIPAL MAYOR

REGIONAL FINANCIAL ANALYST

DSWD- RD/RPM

Sources:

LCC Delivery Plan


Subproject Fund Utilization Report (Annex 11)
Municipal LCC Journal for CBIS (Annex 8)

Actual

Balance

ANNEX 8
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
MUNICIPAL LOCAL COUNTERPART CONTRIBUTION JOURNAL
for CAPABILITY BUILDING AND IMPLEMENTATION SUPPORT
For the Month of ____________________
MUNICIPALITY:

DATE

Source:

VLCC NO.

DONOR

Vouchers for Local Counter Contribution for CBIS

PARTICULARS

AMOUNT

ANNEX 9
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
LIST OF CHECKS ISSUED
For the Period ___________________
Region:
Province:
Date

Municipality:
Barangay:
Check
Number

Fund
Source

Payee

Particulars

Remarks

Amount

*submittedtoCOA,
FOorstillatthe
Community

RECAPITULATION:
PARTICULARS

Preparedby:

Approvedby:

MATERIALS
LABOR
EQUIPT

____________________________
BarangayTreasurer

___________________________
BSPMCChairperson

Supplies
Indirect Cost
Total

FUNDS UTILIZED
GRANT

LCC

TOTAL

ANNEX 10-A
(First Tranche)
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET
Region:
Province:
Municipality:

Barangay:
Sub-Project Title:
Date:

DOCUMENT
RPMO level
Barangay Council Resolutions
Sub-project Agreement
Local Counterpart Contribution Plan
Certifications on local contributions
Bond Premium of Treasurer
Notarized Deed of Lot Donation for titled lot or
Quit Claim for non-titled lots
Hydraulic Analysis for water system Sub-project
Proposals/Feasibility Study for Public Good
Sub-projects
NPMO level
Request for Fund Release
MIBF Resolution
SP proposal for Enterprise and HRD subprojects
Program of Works following the prescribed cost
sharing and with detailed estimates (with
signature of Municipal Mayor and Barangay
Captain to conform LCC commitments)
Planned Community Procurement Packaging
with Schedule of In-kind LCC
LCC for SPI Monitoring Report
Procurement Action Plan
Bank Certification indicating the community
current account number or Bank
Statement/Snapshot
Certificate of Review by the RCIS, RFA and
CPS
Photographs of the proposed site (at least
three). For water system, source, reservoir and
pipeline right-of-way; roads, photo covering
starting stations projected towards the midsection or the whole road right-of-way, if
possible and photo projected from the end
station towards mid-sections
(For succeeding cycles) Certification from the
Regional Director that the following financial
requirements pertaining to the implementation of
previous Sub-projects were duly complied with:
a) all Disbursement Vouchers together with the
supporting documents have been duly
submitted, b) Established Petty Cash Fund fully
liquidated and c) Community funds fully utilized
and/or community bank accounts duly closed.
Operation and Maintenance Action Plan

REVIEWER

REVIEWED DATE

REMARKS

SIGNATURE

ANNEX 10-B
(Second Tranche)
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET
Region:
Province:
Municipality:

Barangay:
Sub-Project Title:
Date:

DOCUMENT
RPMO level
Narrative Report (if there is a big variance in
physical & financial accomplishment)
Actual Community Procurement Packaging
Minutes of Barangay Assembly Meeting
Photographs of Sub-project progress
Registered Deed of Lot Donation for titles lots
NPMO level
Request for Fund Release
Status of Sub-project Fund Utilization Report
List of Checks Issued (Annex 9)
LCC for SPI Monitoring Report
Physical Progress Report signed by the Municipal
Engineer and the DAC and Regional Community
Infrastructure Specialist
Bank Statement/Snapshot
Operation and Maintenance Final Plan with
notarized Mutual Partnership Agreement
Certification from the Regional Director that the
requirement of monthly submission of all DVs as of
immediately preceding month to the FO/COA, has
been fully complied with

REVIEWER

REVIEWED DATE

REMARKS

SIGNATURE

ANNEX 10-C
(Third Tranche)
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET
Region:
Province:
Municipality:

Barangay:
Sub-Project Title:
Date:

DOCUMENT
RPMO level
Narrative Report (if there is a big variance in
physical & financial accomplishment)
Actual Community Procurement Packaging
Minutes of Barangay Assembly Meeting
Photographs of Sub-project progress
Proof of pending financial obligations e.g. Delivery
Receipts, Billings as attachment to Certification

NPMO level
Request for Fund Release
Status of Sub-project Fund Utilization Report
List of Checks Issued (Annex 9)
LCC for SPI Monitoring Report
Physical Progress Report signed by the Municipal
Engineer and the DAC and Regional Community
Infrastructure Specialist
Bank Statement/Snapshot
Certification indicating the total cost of remaining
materials to be procured and total cost of labor and
other related expenditures to be incurred to
complete the Sub-project signed by the Chairs of
the PT and the BSPMC and noted by the DAC
Certification of any pending financial obligations
e.g. unpaid delivered materials, services rendered
but not yet paid (wages/ payroll) and other incurred
but unpaid related expenditures signed by the
Treasurer, BSPMC Chair and noted by the DAC
Barangay Assembly resolutions confirming the
certifications
Joint Inspection Report
Certification from the Regional Director that the
requirement of monthly submission of all DVs as of
immediately preceding month to the FO/COA has
been fully complied with

REVIEWER

REVIEWED DATE

REMARKS

SIGNATURE

ANNEX 10-D
(Technical Assistance Fund)
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
REQUEST FOR FUND RELEASE (RFR) REVIEW SHEET
Region:
Province:
Municipality:

Barangay:
Sub-Project Title:
Date:

DOCUMENT
Request for Fund Release
MIBF Resolution availing of the TAF for their
prioritized sub-projects
MIBF Resolution that designates a representative
barangay who shall be the contracting party of the
service provider/s to be engaged (for clustered
barangays
Bank Certification indicating the community current
account number or Bank Statement/Snapshot
Bond Premium of Treasurer
Copy of notarized contract of service provider,
TOR specifying the expected deliverables, time of
submission and mode of payments
Matrix of barangays availing of the TAF with the
sub-project type and the name of corresponding
service providerr
Accomplished TAF Eligibility Checklist for each
barangay availing of the TAF

REVIEWER

REVIEWED DATE

REMARKS

SIGNATURE

ANNEX 11
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
STATUS OF SUBPROJECT FUND UTILIZATION
For the period ____________________
Barangay:
Municipality:
Province:
Name of Subproject:
GRANT FUNDS

LOCAL COUNTERPART CONTRIBUTION


TOTAL

PARTICULARS

LP

Cash

In-kind

Total

d (b+c)

e (a+b)

DVs Submitted to COA


DV No.

Cash Balance, Beginning


Add: Funds Received during this Period
KC Grant Tranche
PLGU
MLGU
BLGU
Community/Others
Total Funds Available
Less: Expenses incurred during this Period
Materials
Labor
Equipment
Lot
Contract of Works
Freight and Handling
Material Testing
Supervision
Pre-Engineering
Bond Premium
Administrative Expenses
Others (please specify)
Total Expenses for the Period
Cash Balance, End
Prepared by:

Approved by:

Reviewed by:

Community Bookkeeper

BSPMC Chairperson

Audit & Inventory Committee Head

Certified Correct by:

Noted by:

Regional Financial Analyst

Regional Project Director/Manager

Sources:

Cash Book (Annex 12)


LCC Journal (Annex 13)

Amount

ANNEX12
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
CASH BOOK
Barangay:
Municipality:
Province:
Name of Subproject:
Bank Account No.

DATE

Sources:

REF

CASH IN (RECEIVED)
GRANTS
LCC
PARTICUL
ARS
AMOUNT
(LP)
(Cash)

Cash Receipts -

Payments -

AMOUNT

CASH OUT (PAYMENT)


DIRECT COST
FUND
EQPT
SUPPLIES
SOURCE MATERIALS LABOR

Notice of fund Transfer


Deposit Slip of Local Cash Contributions/Acknowledgement Receipts
Disbursement Vouchers

INDRECT COST
OTHERS
TRAVEL

RECAPITULATION:
PARTICULARS
MATERIALS
LABOR
EQUIPT
Supplies
Indirect Cost
Total

GRANT

CUM
BALANCE

FUNDS UTILIZED
LCC
TOTAL

ANNEX 13
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
KALAHI-CIDSS PROJECT
LOCAL COUNTERPART IN-KIND CONTRIBUTION JOURNAL
Barangay:
Municipality:
Province:
Name of Subproject:

DATE

DONOR

PARTICULARS

TOTAL
Source: Vouchers for Local Counterpart Contribution for SPI

MATERIALS

DIRECT COSTS
EQPT

LABOR

SUPPLIES

INDIRECT COST
TRAVEL
OTHERS (Specify)

TOTAL