MEMORANDUM OF

AGREEMENT
 This MEMORANDUM OF AGREEMENT entered into and executed this 20th day of
August 2015 by
and between:

The Department of the lnterior and Local Government (DILG) herein

referred to as the
DilG-Region 10 with principal address at Cagayan De Oro City represented
herein by NILO P.
CASTANARE5, RegionaI Director.

-and -

The Local Government Unit of Dangcagan (LGU - Dangcagan), herein

referred to as LGU
PCF grantee with principal office at Dangcagan, Bukidnon and represented in
this agreement by
HON. FRUTO B. DANDASAN JR.-Municipal Mayor) by virtue of. Municipa[
Sanggunian Resotution
No.445, Series of 7015, dated August 17,7015.

WlTNESSETH:

WHEREAS, the Department of the lnterior and Local Government (DILG)

through the
Bureau of Locat Government Devetopment (BLGD) is the Office with primary
responsibitity in
locatizing the Mittennium Devetopment Goats (MDGs), and through the
RegionaI Office in capacitating LGUs to effectivety discharge their powers
and functions towards improving the
detivery basic services and facitities to their constituents;

4
the Devetopment Budget Coordinating Committee (DBCC) of the
WHEREAS,
Department of Budget and Management (DBM) approved the Performance-Based
lncentive Poticy (PBIC) which provides for an incentive framework to
rationatize national government and intergovernmental transfers to LGUs
towards improving LGU performance in governance and detivery of basic
services.

WHEREAS, the Performance Chatlenge Fund PCF) for Local Government

") Units is a ftagship
program of the DILG that serves as a facility to hetp stimutate LGUs that
put a premium on transparency and accountabitity to enabte them to avail
themselves of financial support to
jumpstart and sustain locat socioeconomic development initiatives
{ supportive of nationaI government goats and priorities. lt is an
incentive fund to etigibte LGUs to support
imptementation of high-impact capital investment projects in the Annual
lnvestment Program
(ArP);
 W ation with the Department of Budget and Management (DBM) to recognize good
HEREAS governance performance particutarty in the adoption of
, the "good housekeeping" atong the governance areas of devetopment ptanning;
Perform sound financial
ance management, transparency and accountabitity, and vatuing performance
Chatten monitoring;
ge Fund WHEREAS, the Performance Challenge Fund'sprogressive reatization
(PCF)
to achieve the Mittennium Devetopment Goats (MDGs), maintenance of core
is road network to boost tourism and [oca[ economic, and compty with the
being Phitippine Disaster Risk reduction (DRR) and Management
adminis Act of 2010 and Ecotogical Sotid Waste Management Act of 2000; and promote
tered transparency and accountabitity; programs and projects are anchored on the
by the contribution of [oca[ government units
Departm (LGUs) as wetl as nongovernment and private sector organizations;
ent of
the WHEREAS, the Local Government Units (LGUs), as provided under the
lnterior Local Government Code of 1991 or Repubtic Act 7160, assume the primary
and responsibitity of providing basic services and facitities and the improvement of
Local quatity of [ife of their constituents through programs and projects geared
Governm towards the achievement of MDGs; preparedness in disasters and adaptation to
ent in ctimate change, sustainabte environmenta[ management; and transparent and
cottabor accountabte [oca[
governan
ce;
ection l. Project Detaits

a. Project Title: Concreting of Municipat Road (Pabto Vittagonzato Street)

b. Brief Description Project: Concreting of 340 mtrs. Length 6 mtrs.
Wide and .20 mtrs
thickness
c. Location: Poblacion, Dangcagn, Bukidnon
d. Start-up: September 7015 :Estimated Date of Comptetion: October
2015
e. Number and Type of Beneficiaries:

f . Project lmptementation Schedute:

Section 2. Etigibte Projects

Etigibte projects for the PC Fund subsidy are those that national priorities
present
of the
administration in achieving the MDGs; preparedness in disasters and adaptation to
climate

change; sustainabte environmental management; and transparent and

locaI
accountabte governance, which are imptementabte within one (!) year
of the date of receipt of the PCF
check.

Section 3. Detineation of Responsibitities

PCF Recipient LGU Shall:

1. Submit certification from a government bank that the LGU has

opened a trust fund for
PCF, together with the detaits of the
account; Z. Maintain a book of
accounts for the PC fund;
3. lssue an officiat receipt corresponding to the amount of PC fund
subsidy received;
project;
4. Create a PCF project team responsibte for the imptementation of the
5. Submit to the DILG Regionat Office the fottowing reports within the
period
prescribed
stiputated in Memorandum Circutar No. 2015 - dated
. Monthty Physicat and Financiat Accomptishment Report for projects
with a six' month imptementation period
projects
r Quarterty Physicat and Financial Accomptishment Report for
an
with implementation period of more than six months

. Report projects invotving procurement of goods and services

. Project Completion Report once the project has been compteted
supported with pictoriats ( with video documentation, if
possibl,e) accompanied by the fottowing
documents:
- Certificate of Comptetion
- Certificate of Acceptance (if the project is by Contract)
- Copy Report of Disbursement submitted to [oca[ COA auditor
6. Put up a signage of the reports using formats such as bittboards, tarpautins, banners,
or posters in the ptace where the project is being implemented foltowing
the
temptate/design stiputated in Memorandum Circutar No. 20-' dated
 7. Post in conspicuous ptaces within pubtic buitdings (in front of Municipal hatt,
public

market, etc.) monthty/quarterty progress of project imptementation; and

compteted projects, inctuding the disbursed PCF subsidy. ln the absence of a
(in case
website the
of cities/municipatities), said documents shatl be posted on
the website of the provincial government or on the DILG
regionat/central websites.

DILG Reeional Office shal[:

1. Prepare and issue checks s financial subsidy to the LGU grantee;

2. Facititate the release of PCF check amounting to P 3,000,000.00 to the
LGU
recipient upon signing of the Memorandum of Agreement and
submission
the satisfactory
documentary requi rements;
C/MLGOO,
3. ln coordination with the Provinciat PCF Focal Person, Ctuster Head, and
conduct periodic monitoring on the progress of project imptementation and
disbursement of the PC funds by the LGU; (-
 Submit the fol[owing to the PCF fietd office:
o physicat
Quart€rty and financial accomptish'mentreports on the PCF-funded project
. Report Disbursement

. Project Comptetion Report

6.Post the status of project imptementation and fund utitization on their website
This agreement shatl take effect immediatety upon signing by the
representatives of the Parties hereto shalt be enforced within one (1) year of
comptetion of the project.
lN WITNESS
^ WHEREOF, the Parties hereuqto gffixed their signatures on
&?F
tnls Oay
CarlU,
of 0*vlwsf , at A,,n Puli&,,r,"\ , phitippines.
to0K
DILG.RE OFFICE:
G
NILO ANARES FRUTO B. D

Director
Dep ent of the Dangcagan, Bukidnon
lnterior
and Government
Region 10

SIGNED IN THE PRESENC

ENGR. LUIS ANDO

Munic

ARA
MunicipaI Ptanning
Devetopment
Coordinator

ACT<NO\NLED(3E]VIENT
REPUBLIC OF THE PHILIPPINES )

Cagayan de Oro City )

s.s
BEFORE
ME, a notary public, forand in the above jurisdiction, personally appeared

on this:
NAME CTC. NO. DATE/PLACE OF ISSUE
NILO P. CASTANARES
@ -g@- ol\-90 Uga,gr,,, clw ^
 M h
FRUTO B. DANDASAN JR. 31023072 JANUARY 8,2015
Known to me be the person/s who executed the foregoing instrument and

acknowtedge to
me as is his/ her free and votuntary act and deed.
parties ges,
The have signed this Memorandum of Agreement
inctuding
consisting of
page
the where the acknowtedgement is written, and their instrumenta[ on the
w [eft
margin of each and every page.
lN WITNESS WHEREOF, I have hereunto set my hand on ptace above
the date written.
PUELI
C