Gaeta Shes Erte S g & 3 Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT POLICY GUIDELINES AND PROCEDURES IN THE IMPLEMENTATION OF THE FY 2020 LOCAL GOVERNMENT SUPPORT FUND-ASSISTANCE TO MUNICIPALITIES (LGSF-AM) PROGRAM See Circular No. 2020 -_088 ; 21 MAY 2020SECTION 10 2.0 3.0 40 5.0 6.0 7.0 8.0 9.0 10.0 11.0 120 Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT TABLE OF CONTENTS Te Background Purpose Legislative Compliance Coverage of the Program Definition of Terms General Guidelines 6.1 Fund 6.2 MLGU Counterpart 6.3 Fund Release 6.4 Fund Management Prohibited Use of Funds Reversion of Funds 6.5. Project Implementation Procurement by the MLGU Project Execution Project Completion Information and Publicity of Projects 6.6 Project Monitoring 6.7 Project Reporting Responsibilities and Accountabilities 7.1. Municipal Local Government Units 72 DILG 7.2.1 Central Office 7.22 Regional Office Project Development and Management Unit 7.2.3. Provincial Office Cluster Heads MLGOO Penal Provisions 8.1. Project Cancellation Issues for Resolution Repealing Clause Annexes EffectivityTo Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT Memorandum Circular No. 2020 - 08a Date: _2 1 MAY 7071 MUNICIPAL MAYORS, MEMBERS OF THE SANGGUNIANG BAYAN, MEMBERS OF THE MUNICIPAL LOCAL FINANCE COMMITTEES AND DIRECTORS OF THE CENTRAL AND REGIONAL / FIELD OFFICES AND OTHERS CONCERNED SUBJECT : POLICY GUIDELINES AND PROCEDURES IN THE IMPLEMENTATION OF THE FY 2020 LOCAL GOVERNMENT SUPPORT FUND-ASSISTANCE TO MUNICIPALITIES (LGSF-AM) PROGRAM 1.0 20 3.0 BACKGROUND Local governments confront rising public expectations regarding the delivery of basic social services. Despite more than two decades of implementation of Republic Act (R.A.) No. 7160 (Local Government Code of 1991), local governments still face various challenges in the exercise of devolved service delivery functions. Foremost among these is the raising of sufficient funds for local development. Part of the General Appropriations Act (GAA) under the FY 2020 Local Government ‘Support Fund (LGSF) is the Assistance to Municipalities (AM) Program which seeks to equitably assist all municipalities in the delivery of basic services by providing financial subsidy to municipalities for the implementation of their priority programs and projects. PURPOSE. This Memorandum Circular (MC) is being issued to prescribe the general policies and procedures in the implementation of the FY 2020 AM Program and ensure that all concerned are able to abide by the policies, processes, and responsibilities in the overall implementation of projects under the Program. LEGISLATIVE COMPLIANCE Cognizant of the need to provide further support to the municipalities to enable them to fully carry out functions devolved to them, while at the same time building their capacity towards genuine fiscal autonomy, the National Government (NG) has scaled up its efforts to ensure meaningful devolution by providing a Local Government Support Fund (LGSF) under the Republic Act (R.A.) 11465 also known as the General Appropriations Act (GAA) FY 2020.4.0 COVERAGE OF THE PROGRAM ‘The Program shall cover 1,372 Municipalities. As provided for in Special Provision No. 1 of GAA FY 2020-Assistance to Municipalities, the projects to be funded under the Program shall be culled out from the Local Development Investment Programs (LDIPs) of Municipal Local Government Units (MLGUs), consistent with and limited to: + Paragraph b.2 (vi), (vii) and (vill) of Section 17 of R.A, No. 7160 or the Local Government Code of 1991; * Disaster risk reduction-related facilities and equipment; + Peace-promoting projects; and/or + Other infrastructure projects that will address the delivery of basic social services of the municipalities The projects shall exclude sports equipment, school buildings and other facilities for public elementary and secondary schools, clinics, health centers and other heaith facilities necessary to carry out health services, reclamation, income-generating projects, minor repairs and maintenance of existing government facilities, and projects that cost less than P1,000,000. 5.0 DEFINITION OF TERMS For purposes of this MC, the following terminologies are used and defined as follows: 5.1 Aide Memoire — An official document that summarizes the findings, recommendations, and agreements during the exit conference as a result of the project monitoring visit conducted by the DILG. 5.2 Certificate of Completion — A document issued by the MLGU stating that the project has been satisfactorily completed in accordance with the Plans and Specifications of the Contract based on the Inspection Report indicating no defects/deficiencies observed, duly prepared by the MLGU Inspectorate Team, 5.3 Certificate of Final Acceptance’ ~ A document issued by the Municipality upon final acceptance of the works, after the one-year Defects Liability Period and after all defects, deficiencies and failures, if any, have been corrected and supplied, based on the Final Inspection Report, duly prepared by the MLGU Inspectorate Team, 5.4 Duly Accredited Civil Society Organizations ~ Civil Society Organizations (CSOs) which have previous experience and participation in local planning. The accreditation shall be in accordance with the existing guidelines in DILG MC 2016-97 series of 2016, DILG MC 2018-89 series of 2018, and/or guidelines to be issued by the DILG for the purpose. 5.5 Disaster Risk Reduction - Related Equipment — A motor vehicle or rescue equipment/tools used for preparedness, immediate response, and rescuelrelief operations during disasters and calamities. 5.6 Evacuation Center — An enclosed building designed and constructed to protect people living in the locality during an emergency, especially during man-made " Secton62.2ofthe 2016 RRR AIRLA No. 618657 58 59 5.10 5.14 5.12 513 5.14 5.15 5.16 SAT disasters, such as fire, and natural disasters, such as typhoons, floods, and earthquakes. Geo-resistivity Survey ~ A field survey that uses the geo-resistivity meter to know the subsurface layering of soil and rock formations, and to determine the groundwater level of the study area, which shall be conducted before the Preparation of the Detailed Engineering Design (DED). This shall form part of the MLGU Counterpart. Inspectorate Team - Once the project reaches an accomplishment of ninety- five (95%) of the total contract amount, the procuring entity may create an Inspectorate Team to make preliminary inspection and submit a punch-list to the contractor in preparation for the final turn-over of the project in accordance with Section 7 of Annex E of the 2016 Revised IRR of RA 9184. Local Government Support Fund (LGSF) — Financial assistance to MLGUs for the implementation of priority programs and projects, as provided for in the FY 2020 General Appropriations Act (GAA) Monitoring ~ Method of collecting and analyzing information to determine the program's development or progress in reference to its overall objectives. Monitoring outputs are used to come up with sound management decisions. Notice of Authority to Debit Account Issued — A document issued by the Regional Bureau of Treasury (BTr) to the MLGU informing them that the subsidy has been deposited into the General Account of the MLGU. This document shall serve as the legal basis for the utilization of the National Subsidy. Notice of Defects/Deficiencies — A document issued by the MLGU to officially notify the Contractor (if By Contract) or the MLGU Implementing Office (if By Administration) of the noted defects/deficiencies and required corrective repair works found during punch-listing. This document shall also be used to notify the Contractor of the noted defects/deficiencies within the Defects Liability Period Office of Project Development Services — Assistance to Municipalities Project Management Offices (OPDS-AM PMOs) — The established three (3) sectoral offices under the OPDS of the DILG, namely 1) Water Supply and Sanitation PMO; 2) Local Access Roads PMO; and 3) Disaster Risk Reduction and Other Infrastructure PMO, which shall be responsible for the overall program management of AM projects. Potable Water — The water that has passed the Potability TesWater Quality Test, as certified by the Department of Health (DOH). Potability TestWater Quality Test - Physical, chemical, and bacteriological examinations of water from newly-constructed systems or sources before and during construction, before they are operated and opened for public use, and regular periodic conduct of the same after project completion as part of ensuring project sustainability. Projects — The eligible projects mentioned in Section 4 of this Guidelines. Project Completion — The 100% physical accomplishment of the works or goods as per Contract/approved Program of Works. The project is deemed completed once the Certificate of Completion is issued by the MLGU.5.18 5.19 5.20 5.24 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 Project Implementation Team — Team within the MLGU tasked to implement the project and to ensure MLGU compliance to quality and safety standards for project implementation. It shall be led by the Municipal Engineer with, but not limited to, the following as members: the Municipal Accountant, the Municipal ‘Treasurer, and the Disaster Risk Reduction Management Officer (DRRMO), Project Monitoring Committee - Team created or activated by the MLGU, through an Executive Order issued by the Local Chief Executive (LCE), tasked to monitor the projects under the Program Punch-listing ~ Conduct of preliminary inspection by the Inspectorate Team upon reaching 95% physical accomplishment. Rainwater Catchment Facility — A structure used to collect, convey, and store rainwater from the roof surface area of a government-owned facility for domestic use. It should have the four basic elements: (1) collection (catchment) area; (2) conveyance system consisting of pipes and gutters; (3) storage facility; and (4) delivery system consisting of a tap or pump. Regional Hubs ~ Regional water and sanitation (WATSAN) Hubs composed of higher educational institutions (universities/colleges), water districts (WDs), the private sector, and non-governmental organizations (NGOs) that will assist the DILG in the capacity building of the MLGUs. Review — Done by the persons concemed checking for the completeness and accuracy of the submitted documents. Sanitation and Health Facilities — Public sanitary and hygienic facilities that ensure safe stool disposal, proper handwashing behavior, and general hygiene practices in secured, government-owned properties. ‘Small Water impounding Project — A water harvesting and storage earth-fll structure constructed across narrow valleys or depression areas that consist of an earth embankment spillway, outlet works, and canal facilities. Undisbursed Funds — Actual amounts unspent or unpaid out of the budgeted amount. Validation — Done by the persons concemed by visiting the actual project site. Water Source — Can either be groundwater that flows out of the ground or through the withdrawing of water from underground aquifers. it should meet the quality and water demand (quantity) based on the minimum requirements of the water system. Water Source Validation Report — A document that confirms the viability of the water source in terms of quality and quantity to be developed for the intended beneficiaries. Water Source Validation which should be conducted during the peak of dry season.6.0 GENERAL GUIDELINES 64 62 Fund 6.1.1 LGSF-AM FY 2020 GAA (R.A. No. 11465) The amount of Eleven Billion Seven Hundred Fourteen Million One Hundred Thirty-Three Thousand Pesos (Php11,714,133,000.00) is a National Subsidy to Municipalities appropriated under the Local Government Support Fund- Assistance to Municipalities (LGSF-AM) Program, 6.1.2. Fund Allocation ‘As specified in Special Provision No. 1 of the LGSF in GAA FY 2020, the budget allocation for Municipalities is determined based on poverty incidence, resource er capita, and share for good performance which shall be directly downloaded to MLGUs as stipulated in Annex A (FY 2020 AM MLGU Allocation). MLGU Counterpart 6.2.1 The MLGU shall provide cash counterpart, to be deposited in the Trust Account used for Assistance to Municipalities projects in a government bank, equivalent to: 6.2.1.1. the difference between the total project cost and the subsidy received by the MLGU as stated in the Notarized MLGU Certification of Compliance for Fund Release (Annex B of this Guidelines); 6.2.1.2, the amount for the remaining works of cancelled projects referred to in Section 6.4.9.2.2 of this Guidelines, which is also ‘equivalent to the reverted amount mentioned in Section 6.4.9.1, prior to the submission of the Notarized Affidavit of Undertaking (Annex C of this Guidelines); and 6.2.1.3. the equivalent amount reverted to the Bureau of Treasury (BTr) {or the remaining works to complete the project when the project has commenced but is not physically completed by 31 December 2021, within six (6) months after the expiration of the fund validity. 6.2.2. The MLGU shall make available funds to finance, but not limited to, the following: 6.2.2.1 All expenses incurred in the conduct of preliminary activities, such as, but not limited to: baseline study; social preparation; ‘community consultations; securing clearances and permits; feasibility study/project proposal preparation; geo-resistivity surveys, road surveys, and the like; reacge 56.222 6.2.2.3 6.2.24 63 Fund Release Detailed Engineering Design (DED) preparation; soil investigation; procurement activities; water driling explorations; pump test, water quality test; and cost of procuring land tiles, including expenses in filing and securing Deed of Donation, Road Right of Way (RROW), expropriation, or any legal requirements to ‘ensure that the site of the project has no issues on land ‘ownership or RROW. rrvrze Administrative costs in the supervision and monitoring of the project during implementation, such as, but not limited to: a. travelling expenses and rental of vehicles for project monitoring; b. hiring of Project Engineers (if current manpower is not sufficient); office supplies and materials; communication expenses; web development and maintenance; and installation of Community Billboard (Annex D) in the premises of the Municipal Hall seae Expenses in attending trainings/ meetings/workshops related to project implementation; and Expenses in the implementation of action plans as agreed upon after the said activities, including, but not limited to: @. Conduct of Actual Infra-Audit; b. Geotagging of Projects and Inventory of Local Infrastructure Projects; and . Any works not included in the original design but identified during project monitoring as necessary or mandatory (e.g. road safety measures for local access road, rainwater catchment facility for evacuation centers), 6.3.1 The release of funds under the Program shall be subject to the compliance of the concemed MLGUs with the following conditions: 6.344 Governance Reform Requirements: + Requirements of the DILG Seal of Good Financial Housekeeping (GFH); ‘© Requirements of the DILG Local Development Council (LDC) Functionality Assessment; and 66.3.2. 6.3.3. 6.3.4, 6.3.5. 6.3.6. ‘+ Assessment of Public Financial Management (PFM) Systems and adoption of the corresponding PFM improvement measures. 63.1.2 Technical Requirements: Notarized MLGU Certification of Compliance for Fund Release (Annex B of this Guidelines) per project, Prepared by the Municipal Engineer (ME) and Municipal Planning and Development Coordinator (MPDC), signed by the Local Chief Executive (LCE); ‘* Project implementation schedule (Annex E) for each project, prepared by the ME and approved by the LCE, which reflects project milestones provided with target schedule and duration. The duration shall be within the AM Maximum Prescribed Implementation Timelines (Annex F). The latest data from the Bureau of Local Goverment Supervision (BLGS) of this Department on Local Development Council (LDC) Functionality and Good Financial Housekeeping (GFH) shall be the basis, of the Office of Project Development Services (OPDS), through its AM Project Management Offices (PMOs), in determining the compliance of the MLGUs to the two (2) above-mentioned governance reforms, as well as for the basis for the endorsement/s to the Department of Budget and Management (DBM) the List of Eligible MLGUs for Fund Release. The latest data of DBM on the Assessment of Public Financial ‘Management (PFM) Systems shall be the basis of the OPDS, through its ‘AM PMOs, in determining the compliance of the LGUs as well as the basis for endorsement to DBM the List of Eligible MLGUs for Fund Release. The beneficiary MLGUs have until 30 September 2020 to comply with the governance conditions stated in Section 6.3.1.1 of this Guidelines Likewise, the submission of documientary requirements stated in Section 6.3.1.1 and 6.3.1.2 of this Guidelines by the MLGU to DILG through channel for the release of fund shall be until 30 October 2020. ‘The submission of the Notarized MLGU Certification for Fund Release (Annex B) shall be through DILG channel. The Provincial Office (PO) shall review the veracity of the attestations and documents submitted. If warranted, the Provincial Director (PD) shall recommend to the Regional Office (RO) the list of MLGUs with Notarized MLGU Certification for Fund Release. The RO, through the Project Development and Management Unit (PDMU), shall assess attestations and documents submitted by the MLGUs recommended by PO. Further, the PDMU shall consolidate and confirm eligible MLGUs for endorsement to DILG-CO. Upon confirmation, the DILG-RO shall endorse the List of Projects of the Municipalities Eligible for Fund Release to the Office of the Undersecretary for Local Government (QUSLG), through the Office of Project Development Services (OPDS), not later than 5:00 in the afternoon of 30 October 2020 using Annex G of this Guidelines. The ”64 endorsement shall include scanned copies of the Notarized MLGU Certification for Fund Release, as stipulated in Section 6.3.1.2. For water supply, the Water Source Validation Report (WSVR) shall be attached, using Annex H of this Guidelines. 6.3.7. The DILG-Central Office (CO), through the Office of Project Development Services (OPDS), shall review the List of Projects of the Municipalities Eligible for Fund Release attached to Annex G as submitted by the ROs, and subsequently recommend to the Secretary of the Interior and Local Government (SILG), through the USLG, endorsing to the DBM the list of Projects of the Eligible Municipalities for fund release. 6.3.8. The MLGUs that did not comply with the requirements for fund release as stipulated in Section 6.3.1 of this Guidelines shall no longer be endorsed to DBM. 6.3.9. The DILG-CO shall disseminate to the DILG-ROs the List of Projects of the Eligible Municipalities endorsed to DBM. The DILG-RO shall issue Notice of Eligibility (Annex I) to the concerned Municipalities informing them of their eligibility to receive the fund allocation for their approved projects. 6.3.10.Upon receipt of the Notice of Eligibility (Annex I), the Municipal Treasurer shall regularly monitor whether the funds intended for their approved projects have been deposited into their General Fund Account by the BT, through the issuance of Notice of Authority to Debit Account Issued (NADAI, 6.3.11. The procedure for the release of funds from DBM through the BTr to the Municipalities follows the established procedures of DBM and BTr. The BTr will furnish copies of NADAI to the DBM, COA-Regional Offices, and DILG-OPDS and Regional Offices (ROs) concemed, as well as the Local ‘Auditors in-charge of the Municipalities, or the ROs may request a copy of the NADAI from the BTr. Fund Management 6.4.1 Pursuant to the Special Provisions of the LGSF under the GAA FY 2020, the fund shall be used exclusively for the AM Projects and shall be used exclusively in the identified LGUs. 6.4.2 The amount released to the MLGUs shall be recorded as Trust Fund to be used for its specified purpose. Moreover, the MLGU shall maintain a separate subsidiary ledger per project to record each transaction. Funds Which are undisbursed as mentioned in Section 6.4.9 shall be reverted tothe BTr. 6.4.3 Within 30 days from the reckoning date of the NADAI, the MLGU, through the Municipal Treasurer, shall confirm with the DILG-RO, through the DILG-Provincial Office (DILG-PO) and concerned Municipal Local Government Operations Officer (MLGOO), that the funds have been transferred from the General Account to the Trust Fund Account intended {or the project, using the template shown under Annex J (Municipality's Confirmation on the Receipt of FY 2020 AM Fund) hereof.6.4.4 The MLGU shall exclusively utilize the fund for its intended purpose as indicated in the NADAI and in accordance with the existing government budgeting, procurement, accounting and auditing laws, rules and regulations. 6.4.5 In the preparation of the Approved Budget for the Contract (ABC), the MLGUs shail apply the Revenue Memorandum Circular 85-2017 dated 11 October 2017 issued by the Bureau of Internal Revenue (BIR) as basis for the appropriate rate of Value Added Tax (VAT) of 12%, 6.4.6 Consistent with Section 4 of the LGSF Special Provisions under the GAA. FY 2020, implementation of and payments for infrastructure projects shall be until 31 December 2021 only. After this period, any unreleased amount shall lapse, while undisbursed funds shall be reverted to the BTr. 6.4.7 Prohibited Use of Funds ‘The AM Fund shall not be used: 6.4.7.1 For any purpose other than the project/s to which the fund was released as specified in the NADAI; 6.4.7.2 To fund projects already covered by other funds; and 6.4.7.3 For the payment of Personal Services* expenditures (i.e. payment of salaries, including honoraria, allowances, bonuses, and similar forms of compensation) and all other items indicated in Section 6.2.2 of this Guidelines. 6.4.8 The MLGU may use the difference between the Approved Budget for the project and Contract Price to finance Variation Orders for the same Project, subject to Section 6.5.6.4 of this Guidelines. Variation Order mentioned herein strictly refers to the Variation Orders as defined and as allowed in Item 1 to 3, Annex E®, of the 2016 Revised Implementing Rules and Regulations of R.A. 9184 6.4.9 Reversion of Funds Consistent with Section 6 of the Special Provisions of the LGSF under the Allocations to Municipalities in the GAA FY 2020, any undisbursed funds after 31 December 2021, shall be reverted to the BTr by the recipient MLGUs. In case of non-completion of projects by 31 December 2021 the MLGU shall issue a Notarized Affidavit of Undertaking (Annex C), signed by the LCE, for the following: a. Allocate local funds equivalent to the reverted amount for the remaining works in accordance with Section 6.4.9 of this MC; * See 2069 ofthe Loa Goverment Code ot 191 "Gana! Inpemsniaton Guten forthe Prociemento iauure Poets fhe Revised RR of 918464.9.3 6.4.9.4 6.4.9.5 64.9.6 b. Complete the project not later than the date agreed upon by the MLGU and the concerned DILG-RO; ©. Submit the Project Completion Report (Annex K) within thirty (30) calendar days to DILG-RO, through the DILG-PO, after the issuance of the Certificate of Completion (Annex R); and d. Assume accountability and liability under applicable laws and issuances in case of non-compliance with this Undertaking For completed projects, the Municipality shall revert to the BTr the undisbursed funds after the payment of the Final Billing fas recognized by the Municipal Accountant within the fiscal year. If, at any point in time before the lapse of the fund validity period on 31 December 2021, the MLGU determines that the funds cannot be disbursed (e.g. when the program or project cannot be implemented for any reason or the same has been funded from other sources), the total amount received by the MLGU for the project shall be immediately reverted to the BTr. The DILG-RO shall demand MLGUs, after substantial notification and documentation, to revert the funds equivalent to the remaining works for specific project/s which have received the Notice of Project Cancellation (Annex L) and have continually digressed conformance to any or all provisions of this Guidelines. In case of cancellation of on-going projects, the MLGU shall issue a Notarized Affidavit of Undertaking using Annex C and submit to DILG RO through channels, ‘The DILG-RO shall immediately deny requests and demand the immediate reversion of funds for the following situations: a. Request for realignment because the proposed project has been funded from other sources; b. Request for change of project type e.g. Potable Water Supply System project to Local Access Road project; c. Request for change of location of the project other than those indicated in the NADAI; d. Request for realignment of funds to a new project; fe. Request for splitting of funds to accommodate two or more projects or project locations; f. Request for merging of funds released for two or more projects to finance the implementation of only one project (eg. funds released for Water System for Barangay A wo!6.4.9.7 and Barangay B, and proposed to be used only for Barangay A or only for Barangay B); and g. Request for extension of project implementation which goes beyond 31 December 2021. For any reversion of funds, the Municipal Accountant shall initiate the preparation of vouchers, and the Municipal Treasurer shall cause the remittance of the undisbursed funds to the BTr. The MLGU shall provide a copy of the said transaction within fifteen (18) calendar days to DILG-RO, through the DILG-PO, and the concerned MLGOO. 65 — Project Implementation 6.5.1 Pursuant to Section 26 of the General Provisions of the FY 2020 GAA, the following requirements shall be observed in the implementation of infrastructure projects: 6 Locations, areas, or sites of all infrastructure projects are not included in the critical geo-hazard areas or no-build zones as identified or certified by the Mines and Geosciences Bureau (MGB); Standards of construction, rehabilitation, improvement, or ‘epair of all infrastructure projects in all areas and zones are consistent with the rules determined by the DPWH, which shall consider, among others, the structural strength and climate resilience required for infrastructure projects in all areas and zones; and Planning and construction of all infrastructure projects to be implemented within the National Integrated Protected Area System (NIPAS) are done in a way that eliminates or minimizes the risk of biodiversity loss while the specifications thereon are in accordance with those determined by the DPWH, in coordination with the DENR. Mejor infrastructure projects may only be undertaken in said areas if intended to enhance biodiversity. The DPWH and all other agencies shall take into account climate risk information and green building standards to be issued by the Climate Change Commission (CCC) in the planning, identification of site, design, construction, engineering and renovation of government buildings and facilities, including schools and hospitals, as stipulated in Section 26 of the General Provisions of the GAA FY 2020. 6.5.2 The Mayor, as the LCE of the MLGU, shall be accountable for the overall implementation of the projects. 6.5.3 The Municipal Engineer shall ensure that the Detailed Engineering Designs (DED), technical specifications, and construction of projects are in accordance with the Project Minimum Standards (Annex M), uP6.5.4 65.5 National Government (NG) standards, relevant provisions stipulated in the FY 2020 GAA, and within the range of costs of materials, labor, equipment, etc., and project duration of similar projects being implemented by @ National Government Agency (NGA) in the same locality. All projects shall be implemented “By Contract.” However, the MLGU shall be allowed to implement projects “By Administration” only after two (2) failed biddings and failed negotiated bidding, subject to Appendix 1 (Revised Guidelines for the Implementation of infrastructure Projects by Administration) of R.A 9184. Procurement by the MLGU 6. 1 Pursuant to Section 18 of the General Provisions of the FY 2020 GAA, all agencies of the goverment shall strictly adhere to the provisions of R.A. No. 9184, its IRR, and GPPB guidelines in the procurement of goods, infrastructure Projects, and consulting services. However, the options for the Design and Build Scheme will not apply to the projects under the AM program since the DED and other technical documents are requirements prior to fund release. Consistent with R.A. 9184 (Procurement Law), to promote transparency and achieve efficiency in the procurement process, the MLGUs are enjoined to: a. Use the Philippine Government Electronic Procurement System (PhilGEPS) as the primary and repository of information on government procurement. b. Use the latest standard bidding documents, 5 Edition, for procurement of works issued by the GPPB which can be accessed at www.gppb.gov.ph, c. Conduct a mandatory review and evaluation of the terms, conditions, and specifications in the Bidding Documents, including its cost estimates, by the Bids and Awards ‘Committee (BAC) in the event of a failed bidding d. Conduct re-bidding and negotiated procurement of a project immediately, but should not exceed fifteen (15) days after the declaration of the first failure of bidding under Section 35 of RA 9184 and its 2016 Revised IRR. The period may be extended up to 30 days upon approval of the Head of the Procuring Entity (HoPE), as stipulated in Annex A of GPPB Resolution No. 30-2016. e. Ensure that the following are included in the bidding documents: © The winning bidder's compliance with the existing labor laws and standards, specifically the ap6.5.5.3 6.5.5.4 ission of the approved Application for Construction Safety and Health Program (CSHP), in compliance with R.A. 11058 (An Act Strengthening Compliance with Occupational Safety and Health Standards Providing Penalties for Violations Thereof) and the Department of Labor and Employment (DOLE) Department Order No. 13; and * Inclusion as a provision in the Contract of Agreement the Contractor's submission of the monthly Statement of Works Accomplished (SWA). Cause the winning bidder to post the performance security consistent with Section 39 of the Revised IRR of RA 9184, Ensure that the Notice to Proceed (NTP) is issued and duly received by the successful bidder within seven (7) calendar days from the date of approval of the Contract, consistent with Section 37.4.1 of the 2016 Revised IRR of RA. 9184. Ensure that the NTP and the approved contract are posted on the PhilGEPS website and on the website of ‘the MLGU within fifteen (15) calendar days from the issuance of the NTP. ‘The MLGU shall invite a representative of a duly accredited CSO, in accordance with the Special Provisions of the FY 2020 GAA, to observe in the procurement process. The MLGU may also invite the concerned MLGOO. The MLGU shall provide an electronic or hard copy of the duly received NTP to DILG-PO, through the concemed MLGOO, within seven (7) calendar days from the date of receipt by the Contractor of the NTP. 6.5.6 Project Execution 6.5.6.1 6.5.6.2 Adherence to National Government Standards and Policies ©The MLGU shall abide by the standards and policies set by the NG, including the AM Project Minimum Standards (Annex M), which are applicable to all phases of project preparation and implementation. ‘* The DILG-RO shall ensure that these standards and Policies are considered during review and are being observed during actual implementation by the MLGU. ‘The Mayor, as the LCE of the MLGU, through the Office of the Municipal Engineer, shall have the primary responsibil in ensuring the quality of works and that the implementation of the project shall be in accordance with the approved6.5.6.3 designs, plans, and specifications consistent with the relevant provisions of applicable laws, circulars, and issuances, ‘The Mayor, as the LCE of the MLGU, shall mobilize the existing Project Implementation Team (PIT) as defined in DILG MC 2018-104, led by the Municipal Engineer (ME), which shall be responsible for providing supervision in the project implementation. The ME, as head of the PIT, shall be accountable in ensuring that each project will be completed on time and within the contract cost, based on the approved plans and specifications, and adhering to National Standards in design and quality of workmanship. Without relinquishing responsibility, the ME may assign a Project Engineer in each project to supervise the day-to-day activities in each project site. The responsibilities of the ME include, but are not limited to, the following: a. Supervise regularly the progress of work; b. Cause the Contractor to submit a Request for Work Inspection (Annex N): i. Two (2) days prior to the actual date of inspection of every major activity; and ji, One (1) day prior to the concrete pouring of every major activity. Concrete Pouring Permit, using the format as prescribed in the Department Order (DO) No. 211 series of 2000 of Department of Public Works and Highways (DPWH) as shown in Annex O, shall be attached to the request for inspection if Item bi) is applicable. ©. Be present during the actual construction activities mentioned in Item b. The List of Major Construction, Activities for every project type is shown in Annex P; d. Verify and check the quantities of items of work accomplished by the Contractor against the approved plans, specifications, and programs of work, and immediately notify the Contractor of observed deficiencies, if any; Verify and check the quality of workmanship of the Contractor against the approved plans, specifications, and POWs, and National Standards, and immediately notify the Contractor of observed deficiencies, if any; {Verify and check whether quality control plan is observed, quality tests are conducted, and ws)6.5.6.4 construction logbook is maintained at the project site, and immediately notify the Contractor of observed deficiencies, if any; In case of any observed deficiencies during construction, issue Site Instruction (Annex Q) to the Contractor for rectification; Initiate regular coordination meetings with the Contractor to address all pending issues and concerns regarding the project; Cause the Contractor to submit monthly Statement of Work Accomplished (SWA). If project is By Administration, prepare the SWA; Verify and recommend for approval of SWA submitted by the Contractor. If there is variance between the actual work accomplished and the SWA, notify the Contractor; Review and recommend for approval the progress and final billings of the Contractor; Secure/compile records of the project (i. Photographs taken before, during, and after, as- staked, as-built drawings of the completed projects, test results, work request, concrete pouring permit, weather charts, and other pertinent documents related to project implementation), and make available during inspections or as requested; and Ensure that the Contractor submits a Certificate of Compliance on the labor requirement as provided for in Section 5 of R.A. 6685. Variation Order a Any variation order shall strictly comply with Annex E (Contract Implementation Guidelines for the Procurement of Infrastructure Projects) of the 2016 Revised IRR of R.A. 9184, and the provisions of the Contract. Any variation order and contract time extension shall be approved by the LCE. If the variation order will require additional cost, the said amount may be charged against the unutllized allocation which refers to the difference between the approved allocation for the project against the approved contract amount. If the variation order plus the approved Contract ‘Amount exceeds the allocation for the project, the MLGU shall provide additional counterpart as stipulated in Section 6.2. a1The MLGU shall inform the concerned DILG-RO, through channels, of any approved variation order and. contract time extension, and shall ensure that all related documents are readily available during monitoring by DILG personnel andlor as may be requested. 6.5.6.5 The MLGU shall ensure that: 6.5.6.6 a There is a valid Contractor's Letter of Credit or guarantee instrument equivalent to the balance of the advance payment not yet recouped; The Contractor's All Risk Insurance is valid throughout the approved project duration, including approved time extension; and The performance security by the Contractor is valid/updated within the approved project duration including approved time extension. Termination of Contract Consistent with Annex | of the Revised IRR of R.A. 9184, the MLGU may terminate the contract when any of the following conditions occur in the duration of its implementation: + For infrastructure projects: a Due to the Contractor's fault and while the project is on-going, it has incurred negative slippage of fifteen percent (15%) or more in accordance with Presidential Decree 1870; Due to the Contractor's fault and after the contract time has expired, it has incurred a negative slippage of ten percent (10%) or more in the completion of the works; or The Contractor: i. abandons the contract works, refuses or fails to comply with a valid instruction of the MLGU, or fails to proceed expeditiously and without delay despite a written notice by the MLGU; ji, does not actually have on the project site the minimum essential equipment listed on the Bid necessary to prosecute the Works in accordance with the approved work plan and equipment deployment schedule as required for the project; 616.5.6.7 6.5.6.9 ji, does not execute the Works in accordance with the contract or persistently or flagrantly neglects to carry out its obligations under the contract; iv. neglects or refuses to remove materials or to perform a new work that has been rejected as defective or unsuitabl V. _ sub-lets any part of the contract works without approval by the MLGU. For contracts for Goods: ‘The MLGU may terminate a contract by default when any of the following conditions attend its implementation: a. Outside of force majeure, the Supplier fails to deliver or perform any or all of the Goods within the period/s specified in the Contract, or within any extension thereof granted by the pursuant to a request made by the Supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contract price: b. As a result of force majeure, the Supplier is unable to deliver or perform any or all of the Goods, amounting to at least ten percent (10%) of the ‘contract price, for a period of not less than sixty (60) calendar days after receipt of the notice from the MLGU stating that the circumstance of force majeure is deemed to have ceased; or cc. The Supplier fails to perform any other obligation under the Contract Blacklisting of the Contractor ‘The MLGU is encouraged to initiate the blacklisting process in accordance with Appendix 17 of the Revised IRR of R.A. 9184 (Uniform Guidelines for Blacklisting of Manufacturers, — Suppli Distributors, Contractors and Consuttants). In case of delay in the implementation of the project, the MLGU shall be guided with the provisions stipulated in R.A. 9184 and DILG MC 2018-104 Imposition of Liquidated Damages In case the Contractor fails to complete the works within the specified contract duration and any approved time extension, the MLGU shall impose liquidated damages (LD) in accordance with Annex aE of the 2016 Revised IRR of R.A. No. 9184. Funds obtained from the imposition of LD shall accrued to the Trust Fund Account and shall form part of the undisbursed funds, which shall be reverted to the BTr on or before 31 December 2021. 6.5.6.10 The MLGU, through the PIT, shall inform the DILG- RO/PO that the project has been substantially completed (95%). 6.5.7 Project Completion 65.7.4 6.5.7.2 6.5.7.3 6.5.7.4 6.5.7.5 6.5.7.6 6.5.7.7 65.7.8 The Project is deemed physically completed once the MLGU issues a Certificate of Completion (Annex R). The MLGU, through the Municipal Accountant, shall recognize the completed project as an asset in the Book of Accounts of the MLGU pursuant to the Goverment Accounting Manual Volume II for other infrastructure projects and COA Circular 2015-008, and submit proof to the DILG-PO, through the MLGOO, that the completed project has been booked as an asset. ‘The MLGU, through the LCE, shall ensure that there is @ Maintenance Work and Financial Plan after the completion of each project including the required provision to implement the said plan. Upon the issuance of the Certificate of Completion, the MLGU shall prepare, within thirty (30) calendar days, the Project Completion Report (Annex K), including the Maintenance Work and Financial Plan, and submit the same to the DILG-PO through the MLGOO. ‘The MLGU shall ensure that the warranty security by the Contractor is valid/updated throughout the warranty period. The MLGU shall ensure that the ten percent (10%) Retention Money is withheld to cover all defects and deficiencies, including maintenance costs, for one (1) year after project completion. An alternative to the ten percent (10%) final retention would be the posting of the Warranty Security, as stipulated in Section 62 of the Revised IRR of RA 9184. The MLGU shall issue a Certificate of Final Acceptance (Annex 8) after the one-year Defects Liability Period, and after all defects and deficiencies, if any, have been corrected. From Final Acceptance, the MLGU shall continue to ‘observe the Warranty provisions against structural defects and failures, as stipulated in Section 62.2.3 for 8]infrastructure projects, and as stipulated in Section 62.1 for goods, of the Revised IRR of R.A. 9184. 65.8 Information and Publicity of Projects 6.5.8.4 6.5.8.2 6.5.8.3 65.8.4 ‘As MLGU counterpart, within 30 days from the reckoning date of the NADA\, the MLGU shall install the DILG Projects’ Community Billboards within the premises of the Municipal Hall in accordance with the specifications prescribed in Annex D (Community Billboard) hereof. DILG Projects’ Community Billboards must contain all DILG-implemented projects under GAA FY 2020. The MLGU shall include in the Community Billboards the MLGU's list of projects that are not yet completed under the FY 2019 LGSF-AM and FY 2019 LGSF-SALINTUBIG Programs, and ensure that the project status is updated on a monthly basis, The MLGU shall ensure the installation of the Project Signboard/s by the Contractor at each project location in accordance with COA Circular No. 2013-004 dated 30 January 2013 and ensure the regular updating thereof. Pursuant to Section 18 of the General Provisions of the GAA FY 2020, the Community Billboards and Project Signboards should not bear the name, image, and logo of candidates or public officials on government projects. The MLGU shall comply with the reportorial and posting requirements stipulated in the following laws, to wit: a. Special Provision No. 9 (Reporting and Posting Requirements) of the LGSF under the GAA FY 2020; b. Rule XI Section 37.4.2 of the 2016 Revised IRR of RA. 9184 and any relevant policies issued by the GPPB; and c. Consistent with the Full Disclosure Policy (FDP) of the DILG, the said reports shall be posted on the MLGU’s website, and in at least three (3) conspicuous public places in the locality within twenty (20) days from the end of each quarter. The LCEs and web administrators, or their equivalent, shall be responsible for ensuring the65.9 6.5.10 compliance of the MLGU with Items a to c of Section 6.5.8.3 of this Guidelines, Project Monitoring Project Monitoring shall be in accordance with the provisions stipulated in DILG MC 2018-104 dated 05 July 2018 Project Reporting 6.5.10.1 6.5.10.2 DILG Reporting DILG Reporting shall be in accordance with the provisions stipulated in DILG MC 2018-114 dated 20 July 2018, also known as the Guidelines on the Implementation of SubayBAYAN (http://subaybayan.dilg.gov.ph). LGU Reporting ‘The MLGU shall comply with the reportorial and Posting requirements as stipulated in the FY 2020 GAA (Section 9 of the Special Provisions), R.A. 9184, and the DILG Monitoring Guidelines. The MLGU shall post the status of project implementation ona monthly basis in the ‘SubayBAYAN (http://subaybayan.dilg.gov.ph) 7.0 RESPONSIBILITIES AND ACCOUNTABILITIES 77 Municipal Local Government Units (MLGUs) TAA The LCE and the concerned local officials shall be fully responsible ‘and accountable for the proper disbursement and utilization of the subsidy. They will ensure the following: TAAA TAA2 TAA TAS That the said funds are used for its intended purpose as indicated in the NADAI and as provided for in the GAA FY 2020; That the required project documents are complete, available, and can be readily verified: That the projects submitted for funding are shovel- ready, and that the timeliness and quality of works in the implementation of the projects are in accordance with the AM Project Minimum Standards (Annex M), DED/POW, technical specifications, and consistent with this Guidelines and the relevant provisions of applicable laws, circulars, and issuances; and That no duplication and/or overlapping of funding will occur. As such, the MLGU shall immediately 201TAZ 713 TAA TAS TAS inform the DILG-RO if it has received funding from other sources for the same programs or projects. ‘The MLGU, through the Municipal Health Officer, shall ensure that, upon completion, the water supply system shall pass the Potability TestWater Quality Test requirements set in the Philippine National Standard for Drinking Water (PNSDW). The specific responsibilities of the MLGU are stipulated in the applicable provisions of this Guidelines, as found in: 713A Section 6.2 for the MLGU Counterpart; TA32 Section 6.4 for the Fund Management; and 71.33 Section 6.5 for Project Implementation, including Procurement, execution, information and publicity of the project, monitoring, and reporting ‘The MLGU shall ensure its adherence to the applicable provisions of DILG MC 2018-104 Monitoring Guidelines. ‘The MLGU shall aim to create and maintain an inventory of local infrastructure and facilities which shall support better planning and, programming, which will include, but not limited to, the following: 7A5A Local roads and bridges which may be reflected in the Local Roads Network Development Plan (LRNDP) of the Provincial Government; TAS. Existing and potential water sources; 7415.3 Water supply systems (functional and non- functional) including management systems (e.g. LGU-managed, BAWASA, etc.); 715.4 Sanitation and health facilities; TASS Results of Infrastructure Audit; 715.6 Existing and proposed, including its condition: a. Evacuation Center (permanent and non- permanent); b. Market; © Cemetery: d. Small Water impounding Project (SWIP); e. Drug Rehabilitation Center (for out-patient); and AST Disaster Risk Reduction (ORR)-related equipment. The MLGU, through the LCE, shall issue an Executive Order creating or reactivating the following, with the minimum composition, to wit: at72 DILG 724 TABA Project Monitoring Committee (PMC), as created through DILG MC 2019-188, or any amendment thereafter, wherein the MLGOO cannot be appointed as the Chairperson. It is suggested that the Municipal Planning and Development Coordinator (MPDC) be appointed as the Chairperson of the Committee. The PMC shall submit a monthly report to the MDC and copy furnish the MLGOO. 71.62 Inspectorate Team, with the ME or his assigned representative/Project_ Engineer as the Chairperson, whose members shall be selected from the following offices, depending on the nature or type or project: Municipal Engineer's Office (MEO); Municipal Accountant's Office (MAccO); Municipal Health Office (MH Municipal Agricutturist’s Office (MAO); Municipal Disaster Risk and Reduction Management Office (MDRRMO); and + General Services Office (GSO). 7163 Project Implementation Team (PIT), with the Municipal Engineer (ME) or his assigned representative/Project Engineer as the Chairperson, whose members shall be selected from the following offices, depending on the nature or type or project: + Municipal Disaster Risk Reduction Management Office (MDRRMO): ‘+ Municipal Accountant's Office (MAccO); Municipal Treasurer's Office (MTO); and Municipal Administrator's Office, if any; if one, a senior staff from the Mayor's Office holding a plantilla position. Central Office (CO) Three (3) sectoral PMOs, namely 1) Water Supply and Sanitation (WSS) PMO, 2) Local Access Roads (LAR) PMO, and 3) Disaster Risk Reduction and Other Infrastructure (DRRO!) PMO, established in the DILG-CO under the OPDS, shall be responsible for overseeing the overall project implementation, monitoring and evaluation, including the provision of technical assistance and ‘capacity development to MLGUs, in close coordination with DILG- ROs, DBM and line agencies, and other stakeholders. The PMOs shall specifically be responsible for the following: 7.244 Oversight@. Formulate, update, and revise, as necessary, the Implementation Guidelines in coordination with DBM and other stakeholders; b. Monitor overall physical and financial planning in coordination with the DILG-ROs; c. Based on the endorsed list of eligible Municipalities to DBM, inform the concerned Municipalities through the DILG-ROs of the funds to be released by the DBM; d. Monitor Program Accomplishments at the Regional level; e. Prepare and submit consolidated monthly, quarterly, annual and other reports to the DILG Management and other oversight and partner agencies as provided for in the GAA FY 2020 Provisions; f. Conduct regular consultations/dialogues with the DBM, other agencies, and stakeholders on matters related to project implementation; 9. Ifthe circumstances warrant, notify the MLGU, ‘copy furnish the Municipal/Regional COA and DILG-RO, of any noted deviation/s to the provisions of this Guidelines and non- compliance with the recommended corrective actions during implementation; and h. Overall monitoring and evaluation: ‘+ Ensure the implementation of the Results- based Monitoring and Evaluation (RbME) framework and system to determine the outcome of the project; ‘+ Track the implementation of the risk-based monitoring system to improve project Performance, and monitor the compliance of DILG-RO with its responsibities, among others, as stated in DILG MC 2018-104; ‘+ Through the monthly reports published in the SubayBAYAN, conduct _ Risk Assessment and analysis as basis for management actions including the provision of Technical Assistance; * As needed, conduct project monitoring visits on projects identified as critical; zip* If warranted, assist the DILG-ROs in the conduct of detailed assessment for non- functional projects based on the result of the Rapid — Subproject Sustainability Assessment (RSSA); + Oversee the implementation of the Quarterly Monitoring Plan at the Regional Level; and * Provide support to operations in the ratio of 70% for ROs and 30% for CO to ensure the hiring of sufficient staff at the DILG Regional and Provincial Levels. 7242 Capacity Development a. Develop and implement Capacity Development interventions on project implementation and governance reforms related to the sectors covered by the Program, for DILG Field Offices, MLGUs, and service providers; b. Develop and maintain a database of conducted Capacity Development interventions; ¢. Develop evaluation tools and conduct an evaluation to measure the outcomes of conducted Capacity Development interventions; and d. Prepare customized reference materials and ‘manuals for local infrastructure projects such as procurement, construction management, safety and health, quality management, water and sanitation, and maintenance for vertical structures, among others. T2A3 Technical Assistance a. Provide advisory and technical assistance to DILG Field Offices and Municipalities in the development, implementation, operation, and management of projects, as needed: and b. Disseminate national standards for quality assurance and control in the implementation of projects to DILG-ROs and Municipalities, 7244 Communications and Advocacy a. Provide support to DILG-ROs in the documentation of good practices in the implementation of the Program; 217.2.2 b. Develop, update, and maintain information, education, and communication (IEC) materials about the program and the accomplishments for trimedia, including social media, and the DILG website at the national level; and ©. Spearhead the conduct of Knowledge Fora to showcase good practices in the implementation of the Program at the national level. Regional Office (RO) The RO shall take the lead in the progress monitoring and evaluation and is responsible for overseeing the implementation of the program at the regional level to ensure efficiency and effectiveness. This includes the provision of technical assistance, monitoring and evaluation, and capacity development for MLGUs. 7.2.24 Regional Director (RD) shall: a. Oversee the AM Program implementation in the Region to ensure that the AM Project Minimum Standards, national standards, and policies are considered during project preparation and actual implementation by the MLGUs; b. Ensure the dissemination of program policies issued by DILG Management, including other issuances related to project implementation and national standards for quality assurance; Ensure that the MLGUs are well-informed of and are able to comply with the policies and other issuances related to project implementation; d. Report to the DILG-USLG, copy furnish OPDS, the status of program implementation; e. Issue 3% Waming Letter and Notice of Project, Cancellation pursuant to DILG MC 2018-104; f. Ensure that the monthly reports submitted by the concerned DILG-POs are in accordance with DILG MC 2018-114; @. Review the Regional Risk Assessment Reports prepared by the PDMU or its equivalent, and track possible interventions/ actions at the RO level; h. Submit to the USLG, copy furnish OPDS, the copy of the Regional Risk Assessment Reports with information on the interventions/actions7.2.2.2 taken by the Region, if any; i. Mobilize the PDMU for provision of technical assistance to the MLGU; i Ensure submission by the Regional Accountant of the Financial Accomplishments Reports of the utilization of the M&E fund every 10" day of the following month to DILG-FMS, copy furnish PDs; k. Mobilize Information or Communication Officers in the Region to document good practices in the implementation of the Program within the region; |. Ensure that the concerned DILG-POs discharge their responsibilities in program implementation as stated in Section 7.2.2.3, and provide assistance if needed; m. Ensure the inclusion in the regional ManCom meeting the status of LFPs and/or conduct regular meetings with Field Officers and/or concemed MLGUs to discuss and resolve issues regarding project implementation; and n. On behalf of the DILG, enter into a Partnership ‘Agreement with Regional Hubs (RHubs) and other accredited CSOs and POs for the provision of Technical Assistance and Capacity Development to the MLGUs, and in the implementation of CSO participation. Project _Development_and_Management_Unit (PDMU) or its equivalent Unit The POMU, or its equivalent unit, shall serve as the Project Management arm of the Program at the regional level. It shall be responsible for the following, as reflected in the Strategic Performance Management System (SPMS) as their commitments and/or in the Terms of Reference (TORS) of its staff: Plan \g and Pre-Implementation: a. Disseminate program policies issued by DILG Management, including other issuances related to project implementation, and national standards for quality assurance; b. Conduct orientations or one-on-one briefings with MLGUs to ensure that they are well informed of and are able to comply with the policies and other issuances related to project 251e. a. implementation; ‘Assess the attestations and documents submitted by the MLGUs recommended by the PO, as follows: 1. Notarized MLGU Certification of Compliance for Fund Release (Annex B); 2. Confirmation on the Receipt of FY 2020 AM Fund (Annex J); and 3. Project Implementation Schedule (Annex E). Further, the POMU shall consolidate and confirm eligible MLGUs for endorsement to DILG-CO using the Validation Form (Annex TA). Conduct regional physical and financial planning in coordination with DILG-POs; and May attend bid openings, if warranted. Progress Monitoring and Evaluation: Field or mobilize the Engineers assigned in the RO to provide technical assistance to the MLGU, if necessary; Maintain the regional database and electronic Copies of MLGU submissions transmitted by the POs and be made available during inspection; Prepare a quarterly regional monitoring pian based on agreed deliverables. Submit a summarized accomplishment report to DILG- CO-OPDS every last month of the ensuing quarter; Field or mobilize the Engineers assigned in the RO to monitor the projects based on the monitoring plan. The Project Monitoring Templates are to be used when conducting site visits and spot checks during project implementation, and monitor, but not limited to, the following + Implementation timelines; + Availabilty of construction materials on-site, in accordance with the approved plans and specifications;* Availabilty of appropriate equipment on- site, in accordance with the Equipment Schedule and manpower; Works are in accordance with the approved Plans and Specifications; = Quality tests are conducted and construction logbook is being maintained; = Proper waste disposal is done in accordance with the prescribed standards set by MENRO; and "Health and Safety standards set by DOLE shall be implemented, Comply with the provisions of the DILG MC 2018-114 (Guidelines in the Implementation of SubayBAYAN) relative to the progress reporting of the projects: ‘+ Ensure that the information on the progress of implementation, such as physical accomplishment in percent based on the MLGU's monthly Statement of Work Accomplished (SWA) and Financial ‘Accomplishment or Disbursement, will be reported in the SubayBAYAN on a monthly basis + Ensure that the information provided by the MLGOOs has been validated on-site at least 5 times within the project duration. Consolidate and analyze all Provincial Risk ‘Assessment Reports submitted by the PDs, and prepare and submit to the RD the Regional Risk Assessment Reports using Annex U. Identify and recommend to the RD possible interventions/actions to be taken at the RO level and those to be endorsed at the DILG-CO level; For projects that remain critical after the issuance of the 2° Waring Letter by the PD, recommend to RD the issuance of the 3? Warning Letter; Facilitate the conduct of consultations/dialogues at the regional level with DILG-POs, MLGUs, and other stakeholders to resolve issues on project implementation; If warranted, participate in the conduct of punch- listing and final inspection to ensure that all7.2.23 issues and concerns were addressed before the issuance of corresponding certifications; j. Monitor the reversion of undisbursed funds by the MLGUs as provided for in Section 6.4.9 of this Guidelines; and k. Assist the DILG-PO on the Conduct of RSSA ‘one (1) year after the completion of projects, or as necessary, and prepare a detailed assessment for non-functional projects based on the result. Capacity Development and Communications: a. Assist the DILG-CO-OPDS-PMOs in the conduct of capacity development programs; b. Assist the DILG-CO-OPDS in the conduct of Communications and Advocacy initiatives. Complaints and Requests: @. For any requests regarding _project implementation, including justification for non- compliance with the minimum standards, conduct evaluation/validation and decide on the said request. If requests require decisions by higher management, prepare recommendation prior to endorsement to CO. b. For any complaints, conduct a fact-finding mission to evaluate/validate the complaints, and decide on response. If responses require decisions by higher management, prepare recommendation prior to endorsement to CO. Provincial Office (PO) The DILG-Provincial Office (DILG-PO) shall assist the RO in monitoring overall program. implementation at the provincial level, to ensure efficient and effective implementation of the projects. The Office, through the Provincial Director (PD), shall be responsible of the following, which are reflected in the SPMS as their commitments and/or in the Terms of Reference (TOR) of his/her staff: a. Conduct provincial physical and_ financial planning in coordination with DILG-RO; b. Assist the RO in the dissemination of program policies issued by the DILG Management, including other issuances related to project implementation, and national standards for 231quality assurance; Assist the RO in the conduct of orientations or ‘one-on-one briefings with the MLGUs to ensure that they are well-informed of and are able to comply with the policies and other issuances related to project implementation; Review the veracity of the attestations and documents submitted, as follows: 1. Notarized MLGU Certification for Fund Release (Annex B); 2. Confirmation on the Receipt of the FY 2020 AM Fund (Annex J); and 3. Project Implementation Schedule (Annex E). if warranted, the PD shall recommend to the RO the list of MLGUs with Notarized MLGU Certification for Fund Release using the Validation Form (Annex T1).. Prepare and implement a quarterly monitoring plan; Field or mobilize the Engineers assigned in the PO to monitor projects regularly and provide technical assistance to the MLGUs with reported issues; Ensure that the concemed Cluster Heads and MLGOOs discharge their responsibilities in program implementation, as stated in Section 7.2.24 and Section 7.2.2.5, and provide assistance, if needed; Monitor the compliance of MLGUs with any recommended corrective actions _ during implementation within the agreed timelines; Ensure the compliance of MLGUs with the provisions of DILG MC 2018-114 (Guidelines in the Implementation of SubayBAYAN) relative to the progress reporting of the projects; Maintain the copies of MLGU submissions transmitted by the MLGOOs and ensure these ate made available during inspection ‘Scanned copies should be provided to DILG- RO-PDMU;7224 Based on the reports submitted by the MLGOOs and the Cluster Heads, prepare and submit to DILG-RO the Provincial Risk Assessment Report (Annex V) and track Possible interventions/actions at the PO level in accordance with DILG MC 2018-104; Issue 1% and 2% Warming Letters and other Notices in accordance with DILG MC 2018- 104; Conduct the Rapid Subproject Sustainability Assessment (RSSA) for completed projects within the prescribed timelines pursuant to Guidelines issued by the DILG; Provide advisory and technical assistance to MLGUs; Assist the DILG-RO and/or OPDS-PMOs in the conduct of Communications and Advocacy initiatives; Facilitate the conduct of consultations! dialogues at the provincial level with DILG-RO, MLGUs, and other stakeholders to resolve issues on project implementation; Assist the DILG-RO andlor OPDS-PMOs in the conduct of capacity development programs; Attend bid openings, if invited; ‘Check whether the MLGU already booked the project as an asset upon final acceptance; Receive the MLGU Certification on the provision of annual maintenance funds ‘specifically for the concerned project/s; and Assist the RO in the resolution of any complaints and requests, including justification for non-compliance with the minimum standards, Cluster Heads The Cluster Heads shall assist the PD in monitoring projects in his/her Cluster MLGU. He/She shall be responsible for the following: Ensure that the MLGOO complies with the provisions of the DILG MC 2018-104 and DILG MC 2018-114;7.2.2.5 b. Orient the MLGOOs on the Policy, Monitoring, and Reporting Guidelines; ©. Oversee the maintenance of documents and MLGU submissions transmitted by the MLGOOs; 4. Supervise the MLGOOs in the discharge of their responsibilities and provide assistance, if needed; and €. If warranted, participate in the conduct of punch-listing and final inspection to ensure that all issues and concerns are addressed before the issuance of corresponding certifications. ‘The_Municipal_Local_Government Operations ficer (MLGOO) The MLGOO shall assist the PD and the Cluster Head in monitoring projects at the municipal level He/She shall be responsible for the following: Review the completeness of the following: 1. Notarized MLGU Certification for Fund Release (Annex B); 2. Confirmation on the Receipt of FY 2020 ‘AM Fund (Annex J); and 3. Project _ Implementation Schedule (Annex E). In validating and confirming Items 1 to 3, use the Validation Form (Annex T2), b. Take and promptly upload geotagged photos of the project (0%, 30%, 60%, 90%, 100%, Turn- over) and project data in the SubayBAYAN; ©. Assist in the dissemination of program policies issued by the DILG Management, including other issuances related to project, implementation and national standards for quality assurance, to ensure that the MLGUs are well-informed and are able to comply with ‘such issuances; 4. Monitor if the MLGU has received the AM fund as mentioned in Section 6.4 of this Guidelines and has been transferred to the Trust Fund Account, including the MLGU Counterpart 218.0 PENAL PROVISIONS mentioned in Section 6.2 of this Guidelines, if any; Ifwarranted, MLGOO may attend bid openings, and note CSO participation in the procurement process; Notify DILG-PO of ‘Failed Biddings" and advise MLGU to submit Revised Implementation ‘Schedule (Annex E); Assist in the conduct of project monitoring visit cum exit conference with the MLGU. Secure a copy of the Aide Memoire (Annex W) signed by the parties present, copy furnished DILG- PO; Transmit officially the Aide Memoire to MLGU and if there are negative findings, advise to issue a Notice of Defects/Deficiencies (Annex X) to the Contractor; and Assist the DILG-PO in the conduct of the capacity development activities at the provinciaVmunicipal level. Projects implemented not in accordance with the provisions of this Guidelines, including all other applicable laws, shall be subject to: 84 Project Cancellation Pursuant to the Warning Scheme stipulated in the DILG MC 2018-104, projects issued with 3° level warning may be subjected to project cancellation and reversion of its fund allocation, which include, but are not limited to, the following: B14 84.2 81.3 If the MLGU fails to submit/complete documentary requirements prior to procurement; During procurement stage, if the MLGU fails to follow the procurement schedule submitted to the DILG without valid reason; and If the negative slippage reaches 15%, or if deviations in Monitoring Parameters have remained uncorrected. If projects are cancelled pursuant to Section 8.1 of this Guidelines, the MLGU shall: 8.2.1 Revert the unutilized funds in accordance with Section 6.4.9 of this 8.2.2. If the project to be cancelled is “on-going,” issue a Notarized Affidavit of Undertaking (Annex C) stating the following:a3 84 8.2.2.1 Complete the projects using own funds on or before agreed timelines with the DILG RO; 8.2.2.2 Submit completion and turn-over report thirty (30) calendar days (CDs) after issuance of Certificate of Completion; and 8.2.2.3 Assume accountability and liability under applicable laws and issuances in case of non-compliance with this Undertaking, If warranted, documentary reports and findings shall be forwarded to the BANTAY KORAPSYON Project Management Office for possible filing of appropriate civil, criminal and/or administrative cases, Cancellation may be grounds for disqualification for future funding under the Program 9.0 ISSUES FOR RESOLUTION Interpretation of the provisions of this Memorandum Circular, including issues and concems not covered hereit shall be submitted to the DILG for resolution 10.0 REPEALING CLAUSE Al provisions of existing issuance that are inconsistent with this Memorandum Circular are hereby repealed/amended accordingly. 11.0 ANNEXES Annex A Annex B Annex C Annex D Annex E Annex F Annex G Annex H Annex 1 Annex J Annex K Annex L FY2020 AM MLGU Allocation Notarized MLGU Certification of Compliance for Fund Release Notarized Affidavit of Undertaking Community Billboard Project Implementation Schedule ‘AM Maximum Prescribed Implementation Timelines List of Projects of the Municipalities Eligible for Fund Release Water Source Validation Report (WSVR) ity Confirmation on the Receipt of FY 2020 AM Fund Notice of Eligi Project Completion Report Notice of Project CancellationAnnex M Project Minimum Standards Annex N Request for Work Inspection Annex O Concrete Pouring Permit Annex P List of Major Construction Activities Annex Q Site Instruction Annex R Certificate of Completion Annex S Certificate of Final Acceptance Annex T Validation Form Annex U Regional Risk Assessment Report Annex V Provincial Risk Assessment Report ‘Annex W Aide Memoire Annex X Notice of Defects/Deficiencies 12.0 EFFECTIVITY This Circular shall take effect immediately upon posting in the DILG website.