MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement (MOA) made and entered into by and between:

The DEPARTMENT OF LABOR AND EMPLOYMENT REGIONAL OFFICE

No. XII, a government office existing by virtue of the laws of the Republic of the
Philippines with principal office address at 102 Acepal Building, Mabini Extension, City of
Koronadal, South Cotabato, represented herein by its Regional Director, OFELIA B.
DOMINGO, CESO III and herein referred to as “DOLE-RO XII”;

and

The MUNICIPAL GOVERNMENT OF POLOMOLOK, a local government unit, with

principal addresses at Municipality of Polomolok, Province of South Cotabato,
represented herein by its Mayor, Hon. HONEY LUMAYAG-MATTI herein referred to
as “PROPONENT”.

WITNESSETH

WHEREAS, the current Administration has directed all Cabinet members to

immediately implement poverty reduction projects in all regions;

WHEREAS, the Department of Labor and Employment (DOLE) is mandated to promote

gainful employment opportunities, develop human resources, protect workers and
promote their welfare, and maintain industrial peace;

WHEREAS, the DOLE endeavors to contribute to reducing poverty and vulnerability to

risks of the poor, vulnerable, and marginalized workers by providing them access to
livelihood undertakings;

WHEREAS, the DOLE will provide a capacity building facility on livelihood and
entrepreneurial ventures for the workers in the informal economy and the vulnerable
groups of workers such as parents of child laborers, women, youth, persons with
disabilities, indigenous peoples, among others, under the DOLE LIVELIHOOD
(KABUHAYAN) PROGRAM, pursuant to the provisions of DO No. 137-14, series of 2014;

WHEREAS, the DOLE-RO XII has been given the responsibility to implement the
DOLE Livelihood (Kabuhayan) Program to Livelihood/Enterprise Formation;

WHEREAS, DOLE-RO XII shall implement the foregoing livelihood intervention in the
Municipality of Polomolok, Province of South Cotabato, in partnership with the
Municipal Government of Polomolok as accredited co-partner;

WHEREAS, this partnership is vital to ensure the successful implementation of the said
projects and achieve their desired social outcomes;

WHEREAS, the PROPONENT has been accredited by DOLE to be capable and

experienced in implementing the proposed project of Municipal Government of
Polomolok, particularly the “DOLE Kabuhayan Starter Kit Project” located in the
Municipality of Tampakan.
NOW, THEREFORE, for and in consideration of the foregoing premises, the parties
hereto have agreed to enter into this Memorandum of Agreement under the following
terms and conditions:

I. RESPONSIBILITIES OF THE PARTIES:

A. The DOLE-RO XII shall:

1. Provide the fund assistance to the PROPONENT amounting to ONE MILLION

ONE HUNDRED TEN THOUSAND AND THREE HUNDRED FIFTY FIVE
PESOS (P1,110,355.00) to be used exclusively for the implementation of the
project, particularly the DOLE Kabuhayan Starter Kit under Bottom-up
Budgeting (BUB) Fund;;

2. Provide orientation/briefing to PROPONENT prior to issuance of fund assistance

to ensure that both the technical and administrative concerns relative to the
Project are adequately addressed;

3. Provide technical assistance to the PROPONENT whenever necessary or as may

be requested;

4. The DOLE-RO XII, together with the PROPONENT, shall conduct regular
inventory of the equipment to determine their physical condition;

5. Monitor and inspect the project implementation of the

PROPONENT/BENEFICIARY on a regular basis; verify the financial records
and reports of the PROPONENT;

6. Demand the refund of any unused funds or savings after completion of the
Project, including the refund of any disallowed amount after a financial audit by
the DOLE or the Commission on Audit;

7. Institute appropriate actions against the concerned PROPONENT which may

include, among others, disqualification from applying for another project,
suspension or termination of the project in case of violation of the provisions of
this MOA and/or legal action for misuse of approved and released funds, the
legal costs of which shall be shouldered by the PROPONENT;

8. In case of dissolution of a PROPONENT/BENEFICIARY, voluntary or

involuntary, the lien of the DOLE-RO 12 on its assets shall be in accordance
with existing laws, to the extent of the unexpended or unutilized portion of the
fund; and

9. Assist in the conduct of audit by the authorized officials and personnel of

the Commission on Audit (COA) on the project implementation of the
PROPONENT.

B. The PROPONENT shall:

1. Adhere to the PROGRAM policies and relevant government regulations;

2. Shoulder other expenses for the identified Livelihood Project, such as expenses
related to the pre-project implementation, supervision and monitoring;

3. Supervise the implementation of the Program, particularly the DOLE

Kabuhayan Starter Kit Projects, based on its approved project proposal
appended hereto as Annex A which forms part an integral part of this Agreement
to achieve the objectives it is committing itself and in accordance with the
approved standards, systems and procedures for project implementation, time
schedule, as well as the attached approved project cost estimates;
4. Issue Official Receipt (OR) for the funds received from DOLE;

5. Keep the DOLE informed at least three (3) working days before the actual date
of implementation of the project as well as the major phases of implementation;

6. Utilize the amount received from DOLE solely for the above-mentioned approved
project/s and/or for the purpose and line items as specified in the approved
project proposals, Any Staff hired for the project management is considered
staff of the proponent and not of DOLE, hence, payment of salaries of the same
shall not be sourced from the DOLE funds;

7. Shall not use the funds for money market placement, time deposit and other
forms of investments not related to the project;

8. Keep and maintain financial and accounting records for the funds received from
DOLE in accordance with generally accepted accounting principles;

9. Return to DOLE any unused funds or savings immediately after the project
completion and any disallowed amount as a result of financial audit by the DOLE
and/or Commission on Audit;

10.Keep and maintain subsidiary records for funds received from DOLE. Funds
shall not be mingled with other funds owned and controlled by the
PROPONENT. It shall also maintain a separate record for counterpart
contributions/funds such as, but not limited to costs of personnel, office supplies,
office space, program funds, which shall be incorporated in the progress/final
reports to be submitted to DOLE;

11.Submit the required monthly and terminal (within 60 days from the start of the
operation of the project) financial and physical status reports in the prescribed
forms to the DOLE with required evidences like the Official Receipts, invoices,
Acknowledgment Receipts and pictures;

12.In case fund assistance includes allocation for acquisition of equipment, shall
purchase the necessary equipment indicated in the approved project
proposal in compliance with government with government accounting and
auditing rules and regulations. Shall also conduct annual inventory of the
equipment to determine their physical condition;

13.Ensure that the equipment acquired by the Proponent shall be

exclusively use for the implementation of the approved project
proposal of the intended beneficiary. It shall secure written approval from
DOLE for transfer of any equipment from the project site to another location. It
shall return the equipment in its normal state of efficiency to the DOLE if the
beneficiaries/Organization has been inactive/dissolve or stop operation for a
period of one (1) year, unless other written agreement is reached to the
contrary by herein parties. In case of loss, damage due to negligence during the
term of the project, the PROPONENT shall be liable for its money value;

14.Submit a monthly/quarterly report to the DOLE within the three (3) years of
project implementation;

15.Shall submit liquidation/terminal reports, supported by Official

Receipts/acknowledgment receipts, and photo-copy of the purchased
equipment/accessories/raw materials within sixty (60) calendar days
after receipt of funds from DOLE-12; and
 16.Direct and ensure that the project be sustained. Hence, the Proponent shall
continue to review and evaluate the functions/responsibilities of the technical
staff/management and the overall performance of the business operation to
ensure the viability/sustainability of the project during and after its
implementation.

II. DURATION OF THE IMPLEMENTATION OF THE PROJECT:

The duration of the implementation of the project covered by the Agreement

shall be within three (3) months from the release of funds from DOLE 12 to the
Proponent but not to exceed one (1) year from the release of funds, upon written
request of deferment from the PROPONENT and upon written approval of the
DOLE. Deferred project implementation shall commence within fifteen (15) working
days upon receipt of the Notice of Approval from DOLE.

III. TERM OF THE PROJECT:

The term of the project shall be three (3) years and DOLE shall conduct
monitoring/evaluation on the project implementation within the three (3) years
period.

IV. LIMITATIONS:

No portion of the funds shall be released before the signing of the

MOA. Checks issued by DOLE 12 covering the release of funds to the Proponent
shall be crossed for deposit to its savings or current account.

V. OTHER CONDITIONS:

Publication:

Any publication arising from this Agreement and other related activities
undertaken shall identify all agencies party to this Agreement as the source of
assistance.

Effectivity:

This Memorandum of Agreement shall take effect immediately upon signing

of the parties hereto and shall remain in force for the duration of the project unless
sooner terminated by all parties for any, but not limited to the following reasons:

a. Failure of the Proponent/Conduit to submit required financial and progress

report within the prescribed period; and

b. Any violation of the condition that, as determined by the any parties hereto,
will prejudice the successful implementation/completion of the project.

VI. AMENDMENTS, REVISIONS AND REVOCATIONS:

Any amendment and/or revision of this Agreement or any portion thereof

shall be in writing and upon mutual consent of the parties. Rescission or
revocation of this Agreement shall also be made in writing and be presented to the
parties at least thirty (30) days from effectivity thereof.
 IN WITNESS WHEREOF, the parties have hereunder affixed their signatures this
_____day of __________, 2015.

DEPARTMENT OF LABOR AND MUNICIPAL GOVERNMENT OF

EMPLOYMENT 12 (DOLE 12): POLOMOLOK:

By: By:

OFELIA B. DOMINGO, CESO III HON. HONEY LUMAYAG-MATTI

Regional Director Mayor

Signed in the Presence of:

PATRICIO L. BLANZA MARIA LOURDES E. HORMIGOS

Director II/Head-SCFO PESO Manager
Witness Witness

Certified Funds Available:

REMILY D. OCA
Chief Accountant
 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF _________________) S.S.

BEFORE ME, in the City of ________________________, this _____ day of

___________, 2015, personally appeared the following:

NAME COMMUNITY TAX NO., PLACE AND DATE OF ISSUE

OFELIA B. DOMINGO, CESO III – CTC #34757524, Koronadal City, Feb. 16, 2015

HON. HONEY LUMAYAG-MATTI – CTC#06192121, Polomolok, So. Cot., Jan. 7, 2015

All known to me and to me known to be the same persons who executed the foregoing
instrument and acknowledged before me that the same is their free and voluntary act
and deed as well as those of the entities they represent.

Said instrument refers to a Memorandum of Agreement consisting of six (6) pages

including this page of acknowledgement, signed by the parties and their witnesses and
sealed with my notarial seal.

Book No. ______;

Doc. No. _______;
Page No. _______;
Series of 2015: