IRR of R.A. No. 8435 (June 3, 2011)

(NAR) VOL. 22 NO. 3, JULY - SEPTEMBER 2011 [ DAR ADMINISTRATIVE ORDER NO.10 S. 2011, June 03, 2011 ] IMPLEMENTING RULES AND REGULATIONS (IRR) ON THE PARAMETERS, MODES, GUIDELINES AND MECHANISMS FOR CO-FINANCING AGREEMENTS (CFA) WITH LOCAL GOVERNMENT UNITS (LGUS) IN FINANCING AGRICULTURE AND FISHERIES EXTENSION (AFE) PROJECTS PER RA 8435 Pursuant to the provisions of Section 93.1 of the Implementing Rules and Regulations of RA 8435, otherwise known as the Agriculture and Fisheries Modernization Act (AFMA) of 1997, as called for under the Department of Agriculture's (DA) Administrative Order No. 11, s. 2010, the following implementing rules and guidelines shall be adopted in co-financing agreements with Local Government Units (LGUs) for the provision of AFE program/project: ARTICLE I TITLES, OBJECTIVES and SCOPE Section 1.0 Title - This shall be known as the Implementing Rules and Guidelines (IRR) implementing the DA Administrative Order No. 11 , Series of 2010 in adherence to rule 93.1 of RA 8435 which is on the preparation of Parameters, Modes, Guidelines and Mechanisms for Co-Financing Agreements with the LGUs in financing AFE. Section 2.0 Objectives - General Objective: To establish a rational DA-LGU CFAas an incentive for LGUs to increase their investments in AFEprograms/projects. Specific Objectives: 1. To provide assistance to LGUs through a CFA for AFE programs/projects; 2. To institute the parameters, modes, guidelines and mechanisms on co- financing agreement for authorized expenditures on AFE program/project.Section 3.0 Scope The CFA between the DA and LGUs shall only be limited to extension programs and projects of the agriculture and fisheries sectors to include women, youth, indigenous peoples and marginalized farmers and fishers' clientele groups. ARTICLE II DEFINITIONS OF TERMS Section 4.0 The following terms used in this document are defined as follows: a. Authorized Expenditure - shall mean charges against funds released to the LGU for the implementation of approved extension program/project in accordance with budgetary, accounting and auditing rules and regulations. b. Co-financing Agreement - shall mean a mutual consent and undertaking by and between the DA and LGU in the provision of counterpart funds for the implementation of AFEN programs/projects. c. Department of Agriculture - shall mean the Department's bureaus, service offices , attached agencies & corporations, and Regional Field Units. d. Extension Program/Project - refers to a program on the provision of training services, farm/business advisory services, information and communication support services, demonstration services, including production and post production support in the conduct of these services (seeds, credit, fertilizer, postharvest facilities, etc.) e. Farm & Business Advisory Services - one of the categories of extension that involves on-demand knowledge sharing and advisory on production and post production technologies, linking producers to market, investments and other strategic resources and support services with various stakeholders on agriculture and fisheries. It also covers the provision of financial and management advices especially for farmers, fishers and their organizations. These are technical services on RBO development, marketing-related assistance, feasibility study preparation, project proposals development, technology-based knowledge sharing, and on-farm visits. f. Farm Inputs - refers to materials and man-power used in any farm production activities, i.e., biologies, seeds, fertilizers, pesticides, livestock, fingerlings, etc. in the conduct of extension services. g. Grant - an amount of money that the Department of Agriculture shall provide to the LGU to augment limited resources for the conduct of extension services based on an income classification co-financing scheme herein proposed. h. Information Education and Communication Support Services - one of the categories of extension that refers to the sharing of information between and among stakeholders through conventional means like print, radio, TV, indigenous folk media or by electronicmeans. i. Local Government Units (LGUs) - shall mean the office of the municipal and/or provincial government who shall enter into agreement with the DA and will provide supervision and implementation of extension activities in their respective area. j. Technology Demonstration Services - is a category of extension, showcasing matured technologies generated by research and development institutions. k. Training services - is a category of extension that refers to the provision of appropriate interventions, methodologies, and techniques that can upgrade the KAS and orientation of stakeholder. It may cover a wide range of topics along the value chain such as production technologies, as well as social technologies depending on the needs of the target clientele group or their relevance to the development requirements of a specific target area. ARTICLE III PRINCIPLES OF CO-FINANCING AGREEMENTS (CFA) It is a policy of the national government to provide assistance to the LGUs in the delivery of services devolved to them with social and environmental benefits towards sustainable human and social development that would ultimately redound to poverty alleviation. The DA shall provide or augment the limited resources of the LGUs for the implementation of AFE programs and projects. Section 5.0 The CFA with the LGUs shall uphold following principles: 5.1 Philippine Agriculture and Fishery (AF) modernization is a joint responsibility and undertaking of the DA, LGUs and other stakeholders in the agriculture and fishery sector. 5.2 The CFA is a scheme towards shared responsibilities ad congruence of goals in AFE program implementation between the national government and the LGUs. 5.3 The CFA will be premised on equity considerations, depending on the nature of a program/project based on needs and priorities, and on income class, such that low income LGUs shall be eligible for higher grants, particularly the 4th, 5th, and 6m class municipalities and/or province. 5.4 The CFAsupports the socio-economic development of the locality through increased efficiency and effectiveness in planning municipal, city, and/or province-wide AFE projects and minimizing subjectivity in the distribution of resources. ARTICLE IV ROLES AND RESPONSIBILITIES To ensure system, efficiency and effectiveness in the implementation of co-financingagreements, the DA and the LGUs shall execute the following roles: Section 6.0 The Department of Agriculture The DA through its bureaus, services offices, attached agencies and regional field units concerned with CFAs shall: 6.1 Identify priority areas for extension and assess program/project based on general criteria in consultation with the LGUs. 6.2 Provide assistance through a CFA and monitor compliance to co- financing agreements. 6.3 Approve program/project proposals submitted by the LGUs subject to their respective delegated authority. 6.4 Enter into a Memorandum of Agreement for the implementation of program./ project under the CFA. 6.5 Assist in the implementation of AFE programs and projects. 6.6 Conduct monitoring and evaluation in the implementation of CFA. Section 7.0 The Local Government Units shall: 7.1 Develop AFE program/project and identify the areas for co-financing 7.2 Implement AFE program/project with the DA. 7.3 Enter a Memorandum of Agreement with the DA. 7.4 Monitor the progress of the project implementation and submit regular reports of funds utilization. 7.5 Provide counterpart fund, staff complement, services and/or facilities as required by the co-financing scheme with the DA to support the local AFE programs and projects. ARTICLE V ELIGIBILITY REQUIREMENTS FOR CO-FINANCING COLLABORATIVE EXTENSION PROJECTS Section 8.0 AFE Program/Project eligible for funding under the CFA: 8.1 Supports the national and regional priority programs as embodied in the Agriculture and Fisheries Modernization Plans (AFMPs) and/or AFE plans and the LGU's Medium Term Development Plan. 8.2 Correspond to a municipality, city, and/or province-wide coverage. 8.3 Supports the priority commodities or economic activities in the area. 8.4 Adopts environmentally sound technologies and addresses vulnerability, risks and impact of climate change and implements climate risks adaptation and mitigation and coping mechanism for the sustainability of the environment and the ecosystem. 8.5 Includes participation of farming household, women, youth and marginalized groups.8.6 Benefits the customers/clients of the AF sectors under any or a combination of the following services: 8.6.1 Training services 8.6.2 Farm or business advisory services 8.63 Demonstration services 8.6.4 Information Education and Commission Support Services 8.7 Assures a rational share of the LGU counterpart to the project cost that shall be committed officially by the Sangguning Bayan/Panglungsod/Panlalawigan and through a certificate of the availability of funds signed by the Mayor/Governor. ARTICLE VI ASSESSMENT PROCEDURES IN THE AVAILMENT OF CO-FINANCING COLLABORATIVE EXTENSION PROJECTS (CFCEP) Section 9.0 Committees shall be created to facilitate the CFA implementation. 9.1 Project Proposal Evaluation Committee - An AFE Program/project proposal review and awards committee shall be created in each individual DA Agency to evaluate the proposals submitted. 9.2 All program/project proposals approved and endorsed by the local chief executives, as well as those from the DA national and regional agencies shall pass the project proposal evaluation committee prior to its approval. Section 10. Availment Process. The following shall be the procedure in the availment of co-financing collaborative extension projects. 10.1 The concerned DA agency shall disseminate information on the availability of CFCEP among the local government units. 10.2 LGU-led collaborative AFE program/project adopted and endorsed by the local Sangguniang Bayan/Panglungsod/Panlalawigan shall be submitted by the Local Chief Executive to the DA respective agencies based on the criteria stated in Article V. 10.3 Program/Project proposals shall be submitted in hard copy and electronic copy. ARTICLE VII CO-FINANCING SCHEME Section 11. The Co-Financing/Cost Sharing Policy An equitable financing scheme is hereby devised to allow for a more rational basis of providing support to the implementation of local extension program/project of the LGUs. The scheme shall take into consideration the income class of the province, st nd cities and municipalities (i.e., 1 class, 2 class and up to 6th class), based on thelatest classification of the Local Government Unit provided by the Bureau of Local Government Finance of the Department of Finance (DOF-BLGF). The Cost-sharing scheme are as follows: Income Class of LGU Cost Sharing % DA LGU (Province/Mun/City) th th 80% 20% 5 - 6 Class rd th 60% 40% 3 - 4 Class nd 40% 60% 2 class st 20% 80% 1 Class Eligible expenditures for the grant shall only be the direct cost of the extension program/ project. Direct cost covers the provision of inputs for the implementation of an AFE program/ project provided the inputs are in support to the four extension categories considered in this guideline such as Training Services, Farm or Business Advisory Services, Demonstration Services and Information, Education and Communication Support Services. Such inputs could be in the form of; a. Supplies and Materials b. Farm Inputs, such as seeds, fertilizers, pesticides, livestock, fingerlings, etc. c. Farms or Training Equipment like computer, LCD and others. d. Small-scale Infrasrtucture, eg., swine/poultry/goat housing and small water system. Salaries of the extension workers shall not form part of the project cost but shall be the counterpart of the respective local government of the province, city and municipalities covering the program/project. Section12. Funding Source - In support to the government's policy of providing assistance in financing the devolved activities of the LGU's, the DA shall provide financial assistance or other forms of support for the implementation of AFE programs/projects. It is provided in Section 93 of RA 8435 that extension activities shall be supported by the following fund sources: a. Allocation of multi-year budgets that shall be treated as grants; b. The budget.for agriculture and fisheries extension service shall be at least one percent (1 %) of the gross value added (GVA). Funds needed to carry out the AFE programs/projects shall be sourced out from andbe a part of the regular budget of the participating DA agencies. However, apart from the budget support provided by the DA the LGU should be able to provide its shared counterpart in the form of manpower or field personnel, soil and water laboratory services, other facilities such as training venue, drying facilities, warehouses and storages, and other extension support services and/or materials. Section 13. Fund Releases and Protocols - The extension support funds shall be downloaded to the participating LGUs to augment local funding for the implementation of extension program/project and shall be released in three tranches as follows: st - upon signing of the MOA 1 tranche nd - Mid-year program plan implementation and upon submission 2 tranche of required reports rd - upon submission of terminal reports 3 tranche The amount of releases depends on the project cost and duration and will be based on Work & Financial Plan and Cash Program submitted by the LGU. The approving body,' after the evaluation, shall determine the percentage releases for each tranche. Fund utilization and disbursements by the concerned DA agency shall be subject to the usual accounting rules and regulations. Section 14 .Limitations on the Use of Funds - The provision of financial support under the policy of Co-Financing Agreement shall have the following limitations; a. Only direct cost of the program/project shall be funded by the DA. b. In the event the municipality/city/province has been re-classified or upgraded of its income classification, the original classification of the LGU when it was applied under the CFAshall be considered and corresponding cost sharing applies. ARTICLE VIII IMPLEMENTATION AGREEMENTS & CONDITIONS Section 15. Memorandum of Agreement (MOA) A MOA shall be entered into between the LGU and the DA defining specific rules and responsibilities of each party, the fund counter-parting arrangements and releases, eligible project expenditures, program management arrangements, financial reporting, monitoring and evaluation and other program details. Section 16. Right to Terminate In case of non-adherence or non-conformance to any provision of the MOA and/orCFA, it shall be the right of the DA to terminate the contract and demand the return of the grant and/or the remaining balance of the projects funds. Section 18. Accountability The Local Chief Executive shall be the over-all in charge for which he/she shall be accountable for the funds provided under the co-financing agreement. The LCE shall provide the leadership in coordinating and managing the whole operations of the collaborative extension project. Funds under the CFA, consisting of the DA share and the LGU counterpart shall be considered Grant Funds under his/her responsibility. Such Grant Funds disbursed under the co-financing agreement shall be accounted for by the concerned DA-agency and shall be subject to the usual government accounting and auditing rules and regulations. ARTICLE IX MONITORING , EVALUATION and SUSTAINABILITY Section 19. Progress Monitoring and Evaluation The LGU shall submit periodical progress reports to the DA office or unit regarding the program/project. The funding agency shall undertake progress monitoring and evaluation of the said extension programs/project on a quarterly or semi-annual basis or as the need arises. Result evaluation of the program/project shall be conducted in order to validate the outcome of the project, while impact studies shall be undertaken on the minimum of three years after the end of project. External team evaluators shall be commissioned to do impact studies. The Agriculture and Fisheries Councils (AFCs) at the municipal/provincial/regional levels shall also conduct regular progress monitoring and evaluation of approved extension programs/projects. Section 20. Assessment of Project Performance and Sustainability Programs/projects under the CFAshall be subjected to midstream and annual review and assessment. They shall be assessed in terms of quantitative economic analysis and on the merit of impact and sustainability. This activity shall be spearheaded by ATI in coordination with the DA Agency concerned. ARTICLE X AMENDMENTS Section 21. All rules and regulations, other issuances or parts thereof, which are inconsistent with this Order, shall be repealed or modified accordingly.ARTILE XI SEPARABILITY CLAUSE Section 23. Any portion or provision of this implementing rules that may be declared by competent courts as unconstitutional, the other provisions of the IRR that are not affected thereby shall continue to be in full force and effect. ARTICLE XIII EFFECTIVITY Section 24. These rules and implementing guidelines on CFA with the LGUs shall take effect fifteen (15) days after its signing and publication in the official gazette or a newspaper of general circulation in the Philippines. This shall supersede other issuances inconsistent thereto and shall remain enforced unless otherwise revoked. Adopted: 03 June 2011 (SGD.) PROCESO J. ALCALA Secretary Source: Supreme Court E-Library This page was dynamically generated by the E-Library Content Management System (E-LibCMS)