Republic of the Philippines DEPARTMENT OF LABOR AND EMPLOYMENT Intramuros, Manila oan Jobs! Is decent jp ‘oreo: AA DEPARTMENT ORDER NO. _1°1 01 att (Series of 2016) GUIDELINES ON THE IMPLEMENTATION \. OF THE SOCIO-ECONOMIC PROJECTS UNDER THE SOCIAL AMELIORATION AND WELFARE PROGRAM FOR WORKERS IN THE BIOFUEL INDUSTRY, UTILIZING COCONUT AS FEEDSTOCK Pursuant to Sections 11 (e) and 17 of Republic Act No. 9367, otherwise known as ‘The Biofivels Act of 2006’, the Joint Administrative Order No. 2008-1 Series of 2008, and upon recommendation of the Tripartite Consultative Council in the Biodiesel Sector, the following guidelines on the implementation of Socio-Economic Projects under the Social Amelioration and Welfare Program (SAWP) for workers in the biofuel industry, using coconut as feedstock, are hereby issued and prescribed: I. Definition of Terms: 1. Biodiesel - refers to Fatty Acid Methyl Ester (FAME) or mono-alkyl esters derived from vegetable oils or animal fats and other biomass derived oils that shall be technically proven and approved by the Department of Energy (DOE) for use in diesel engines with quality specifications in accordance with the Philippine National Standards (PNS); 2. Biodiesel Worker refers to workers who are involved in biodiesel production categorized as follows: a) Plant worker - refers to a rank and file worker in coco oil mill, refineries, and biodiesel plants, regardless of employment status, except managerial employees. b) Farmer — refers to farm owner , leascholder, tenant-cultivator, who operates a coconut farm for copra production, and those whose copra-produced are used as feedstock for coco-biodiesel (CME) production ©) Farm worker- refers to a worker who works in coconut farms or whose work is related to producing copra used as feedstock for coco-biodiesel production, 3. BWSC-refers to the Bureau of Workers with Special Concerns of the Department of Labor and Employment which acts as program manager; 4. CME Producer — refers to the duly accredited coco-methyl ester (CME) producer contributing SAWP lien under Department Order No. 123-12 in pursuance to R.A. 9367 or the Biofuel Law;5. CNO Mill — refers to the duly accredited coconut oil mill whose coconut oil is delivered and used for the production of coco biodiesel (CME); 6. Dependent — refers to spouse and legitimate, legitimated, legally adopted or acknowledged children of the biodiesel worker, who are not gainfully employed and below twenty one (21) years old. For biodiesel worker who acts as head of the family or guardian, qualified dependent may include immediate family such as parent, brothers and sisters who are below ‘twenty one (21) years of age; 7. PCA - refers to the Philippine Coconut Authority created under Presidential .Decree No. 232 as amended by P.D. 961 and P.D. 1468; 8. Regional Office — refers to the regional office of the Department of Labor and Employment which acts as program implementor; 9. SAWP- refers to the Social Amelioration and Welfare Program under the DOLE Department Order No. 123-12 pursuant to Section 17 of the Republic Act No. 9367 or the Biofuels Act of 2006; 10. SEPF - refers to the 95% allocation in the collected lien or the Socio-Economic Project Fund of the Social Amelioration and Welfare Program for the implementation of social and economic projects to benefit biodiesel workers and their dependents; 11. TCC = refers to the Tripartite Consultative Council for SAWP in the Biodiesel Sector of the Biofuel Industry created under Department Order No. 123A-12 tasked to be the advisory body to the DOLE in the policy and program development and implementation of SAWP. Il. Objectives General Objectives: 1. To contribute in the development of individual competence, organizational and institutional capacity of biodiesel industry workers to support the productivity and competitiveness of the biodiesel sector; and 2. To promote gainful livelihood and employment opportunities for biodiesel workers and their dependents. Specific Objectives: a. To support the human resource development in the biodiesel sector; b. To prescribe clear policies, standards and transparent procedures on eligibility and qualification of proponent, beneficiaries, proposal review, approval, fund release, implementation, monitoring and evaluation of socio-economic projects under SAWP ; and¢. To establish accountabilities of project proponent and implementing organizations in the effective and efficient use of SAWP Socio-Economic Project Fund. Il. Qualified Proponents and Beneficiaries A. Proponents. Those who may propose socio-economic projects for biodiesel workers are: a.1, Duly registered farmers’ and farm workers’ associations/organizations or cooperatives providing feedstock and workers’ unions or employees’ associations/organizations whose members are employed by accredited biodiesel producers; .2. Duly accredited and SAWP lien contributing biodiesel producers; 3. Duly registered and feedstock-providing coconut oil mill organizations/companies; a.4 The Philippine Coconut Authority and its Regional Offices; and/ or a.5 The BWSC or the Regional Offices of the Department of Labor and Employment. B. Beneficiaries. Those who are eligible to avail of SAWP benefits are: b.1. Coconut farmers, farm workers and farm workers who are members of duly registered or accredited organizations or cooperatives, including their dependents; and b.2. Plant workers in coconut oil mill, refineries and biodiesel plants who are members of duly registered or accredited organizations or cooperatives, including their dependents, regardless of their employment status, except managerial employees. IV.Scope of SAWP SEPF Projects ‘The socio-economic projects that are eligible for funding from SAWP SEPF may consist of any or combination of the following: 1. Livelihood Assistance includes training on production, provision of tools, equipment, materials and working capital which will be given in kind; 2. Training and Education Assistance includes skills training and retraining to enhance employability in farm and non-farm enterprises; farm technology, farm tourism, organizational and community development, financial literacy, network building and other capacity building assistance to promote entrepreneurship, value-adding activities and improve self-employment; provision of stipends or allowance to deserving biodiesel workers and their dependents for technical vocational or tertiary education assistance as prescribed under this guidelines toward developing skilled manpower in the biodiesel ‘sector;3. Social Protection and Welfare Assistance includes services which seeks to reduce poverty and vulnerability to risks and enhance the social status and rights of the marginalized by promoting and protecting livelihood and employment, protecting against hazards and sudden loss of income, and improving people’s capacity to manage risks. This may include social support services such as social security, healthcare, life/accident insurance and shelter. It may also include services which aim to promote work improvement, productivity, safety and health; promote basic preventive health care, nutrition and hygiene practices; conduct of me I and dental missions; and 4, Emergency Assistance includes financial and/or material supports during or after an unexpected or catastrophic events such as earthquake, typhoons, landslides, flooding, prolonged drought and/or economic displacement. It may include food relief and/or cash assistance, ‘The BWSC and/or Regional Office shall give priority to projects that are directly related to increasing productivity and competitiveness of the biodiesel worker and aligned with the Human Resource Development Plan in the biodiesel sector. V. General Provisions 1. The SAWP SEPF shall be utilized for the benefit eligible of biodiesel workers and their dependents through their unions, organizations/associations or cooperatives. 2. To avail of the program, the eligible beneficiary/proponent shall submit or present any of the following document: a. Feedstock supply agreements, b. Feedstock delivery receipt or certification from the accredited biodiesel producers. ©. Certification by the Philippine Coconut Authority (PCA) that such association/organization or cooperative operates in communities providing feedstock to biodiesel production 3. The BWSC or Regional Office shall adopt the policy of ‘first come, first serve basis’ in processing project proposal regardless of SAWP lien contribution; subject to the availability of SAWP Fund and that proposed budget does not exceed the limit for SAWP fund allocation under livelihood assistance as specified under Section 3 Chapter VII of Department Order No. 123-12 and equity contribution of biodiesel producers. 4. The SAWP SEPF shall be treated as grant to eligible biodiesel workers and their dependents. Proponent shall develop and implement a scheme to use part of the revenue to ensure sustained operation, and expansion of the approved project. ‘This scheme shall be included in the project proposal 5. The Training and Education Assistance shall be used to finance priority human resource development requirement of the biodiesel sector and other priority courses listed under the DOLE in-demand courses and the Commission on Higher Education (CHED) advisory.Only one (1) grantee per family can avail of college assistance at a time. However, workers and their dependents can simultaneously access both technical and vocational and skills training courses. VI. Specific Provisi > Livelihood Assistance 1. The Livelihood Assistance shall include start up or livelihood/enterprise formation, improvement of existing livelihood or collective enterprise and restoration of loss livelihood due to man-made or natural calamities. 2. The Livelihood Assistance shall include grant for initial working capital, raw materials, tools, jigs and equipment and other necessary assets which are essential in start-up, enhancement or restoration of livelihood of biodiesel workers. 3. The Livelihood Assistance shall be used as strategy for building the functional capacity and organizational competence of farmers’ and workers’ unions, organizations/associations or cooperatives to engage into sustainable livelihood enterprise and community development; 4. Bligible projects under the Livelihood Assistance shall be based on the developmental needs of target beneficiaries and their communities and consistent with the identified priorities and strategies to improve coconut productivity and competitiveness of the biodiesel sector. The proposed livelihood projects shall undergo feasibility/viability assessment by the DOLE Regional Offices and BWSC and shall be recommended by the TCC. 5. The level of funding for projects under the Livelihood Assistance to workers’ unions, associations/organizations or cooperatives shall be based on the organizational capacity of the beneficiary organization: Organizational , Level of Funding Capacity Description Assistance Level |__| Newly Organized/for Activation Php 100T and below Level2 _| Semi-Functional (Developing) MoT Eee OO ta . - More than Php300T to Level3 | Functional (Expanding) Pesaor Level4 | High Organizational Maturity More than Php500T ‘The BWSC and/or concerned Regional Office shall conduct an organizational capacity assessment to determine the organizational readiness and absorptive capacity of the proponent and implementing organization to manage the SAWP assistance using established tool which forms part of this guidelines (Annex A). 6. The grantees of livelihood assistance shall be covered with social insurance with at least cone (1) year from recognized and legitimate life/accident insurance provider./. Community enterprise shall be developed using locally abundant resources and/or existing skills available in the community that will provide package of goods and services to network of workers? union, organizations or cooperatives and consuming public. ‘Training and Education Assistance . Priority courses under College Education, Technical Vocational and Skills Training are those identified in the Human Resource Development Plan of the biodiesel sector and employment demand in the local economy as listed under the DOLE in-demand courses, TESDA and the Commission on Higher Education (CHED) advisory. The priority courses shall be reviewed by the TCC in consultation with DOLE and PCA every three (3) years. Priority A: (Biodiesel Sector Requirements) Bachelor of Science in Chemistry, Chemical Engineering, Electrical Engineering, Mechanical Engineering, Agriculture, Agricultural Engineering, Agricultural Economics, Environmental Studies, and other short-term courses relevant to the biodiesel sector that may be identified and recommended by the TCC. Priority B: (Other Courses, Technical and Vocational Skills Training) Locally in demand courses as identified by the Commission on Higher Education (CHED), DOLE and TESDA . The ‘Training Assistance for capacity development of workers’ _ unions, organizations/associations or cooperatives shall be determined through the organizational capacity assessment conducted by the BWSC and/or the DOLE Regional Offices. Capacity training/seminar to improve organizational capacity, project development, coconut farm productivity and competitiveness of biodiesel sector which also include farm technology enhancement, pest control management, post-harvest and processing and management of waste materials in coconut farms. . The College Education Assistance shall provide a grant assistance maximum amount of Php50, 000.00 per school year, regardless of the number of terms for each year, preferably in state colleges/universities accredited with CHED. This CEA shall equitably be given at the start of the semester. The CEA shall cover the payment for any of the following: tuition, laboratory fees, miscellaneous and other school fees, uniform/clothing allowance, meal allowance, book allowance and/or transportation allowance. The amount of grant assistance shall be reviewed by the TCC every three (3) years. Tuition and Other School Fees: (actual cost but not to exceed Php20, 000 per semester or Php40, 000 per year Book Allowance: Php2, 500 per semester or Php5, 000 per year Monthly Stipend: PhpS00 per month or Php2, 500 per semester or Php5, 000 per year‘The monthly stipend may be adjusted up to a maximum of Php3, 000 per month; provided that the total College Education Assistance per grantee shall not exceed maximum of Php50, 000 per year. Grantees may avail ef any other scholarship/assistance provided the same shall be communicated in writing to BWSC before enrollment to ensure that there is no duplication in the educational assistance. |. For initial implementation of the College Education Assistance a total of six (6) scholars shall be allowed per year, two (2) slots each from Luzon, Visayas and Mindanao. The TCC shall review the quota allocation every three (3) years. . The grant assistance for Technical and/or Skills Training shall be based on the corresponding TESDA rates existing in the locality. Depending on the nature of the training course, the grant assistance may also include provision of starter kits, uniform, and subsidy allowance for dormitory, meals, competency examination and other necessary expenses required by the accredited training institution during the training period. . The following are the required documents to be submitted by concemed proponent! beneficiaries to the Regional Office for processing and approval of the Training and Education grants: a. Latest two (2) 2x2 ID picture of the applicant student; b. For high school graduates, Certified true copy of grades from the school registrar or Report Card (Form 138), if high school graduate; c. For college students, Certified true copy of academic records, if applicant has already earned academic units in college; 4. Certification from the workers’ union, association/organization or cooperative to ascertain that the applicant is a dependent of bonafide member of organization providing biodiesel feedstock; e. Certificate of employment of the parent / guardian from his/her company to establish that the applicant is a dependent of bonafide employee/ worker of biodiesel company or CNO miill providing feedstock; £. Certificate of good health from public health unit or accredited physician; and g. Duly accomplished application form by the student-applicant . To avail of continued College Education Assistance, the student grantee shall comply the following: a. Enroll immediately in the semester following the approval of his/her grant in priority courses in CHED accredited educational institutions; Carry a full load as prescribed in the approved curriculum ; Maintain a passing grade ; Complete the course enrolled within its prescribed duration; Adhere to the terms and conditions as stipulated in the Memorandum of Agreement, Present original copy of the official receipt of tuition and miscellaneous fees per semester; and g. Submit photo copies of grades per semester. mepaos8. The graduates shall be required with a service obligations in the biodiesel sector up to maximum of two (2) years after graduation, provided that there is available job opening or opportunity. Likewise, student grantees shall also be encouraged to provide community service such as coaching/mentoring support or tutorial assistance to grade school pupils or high schoo! students in his/her community, particularly those having difficulties in their academic studies as equivalent return service for the biodiesel sector as certified by an authorized official / officer in the community, school and/or by the DOLE Regional Office. 9. A student grantee may be allowed to change his/her college course and/or transfer school only once within the first or second college years of the scholarship duration. 10. In case a student grantee failed or dropped out from enrolled subject, re-taking the said subject shall be charged to student grantee. Two failed subjects will automatically disqualify the student grantee from continuing the College Education Assistance. 11.In case a student grantee discontinue his/her studies without reasonable justification, the sponsoring organization shall shoulder the expenses incurred by the student grantee subject to the reimbursement by the parent/guardian who is an employee/worker or member of the organization. 12. Training and Education Assistance Fund shall be allocated to DOLE Regional/Field Offices where the CME plants are located and in areas where feedstock are produced. 13. The Training and Education Assistance shall not be stopped in case of sickness, disability, retirement or death of parent worker or employee, retrenchment or closure of biodiesel establishment. However, the assistance shall be discontinued in case of voluntary resignation, transfer to another industry or departure from the country for overseas employment by the concerned parent worker or employee in the biodiesel sector. 14, The grantees of Training and Education Assistance shall be covered with social insurance during their training and education period from recognized and legitimate life/accident insurance provider. C. Social Protection and Welfare Assistance 1. The Social Protection and Welfare Assistance aims to promote and enhance the capacity of workers to protect them against risks at work and life hazards, loss or reduction of income due to sickness, disability, retirement or death of a family bread winner. This may include social support services such as social security, maternity benefit assistance, healthcare, life/accident insurance and shelter. Also included are preventative services which aim to promote work improvement, productivity, safety and health; promote basic preventive health care, nutrition and hygiene practices; and conduct of medical and dental missions and other rehabilitation services. 2. Eligible beneficiaries of Livelihood Assistance, particularly those coconut farmers or farm workers without social protection coverage shall be enrolled and provided with at least one (1) month premium contribution in social security, health insurance and life or accident insurance from accredited insurance providers for self-employed persons.3. Workers’ unions, associations/organizations or cooperatives whose members are without social protection coverage may also submit proposal on capacity building to promote work improvement, productivity, safety and health; basic health care, nutrition and hygiene practices; medical, vaccination and dental care. 4. The TCC shall recommend allocation limit on the provision of Social Protection and Welfare Assistance for biofuel workers. This shall be reviewed every three (3) years. D. Emergency Assistance 1. The Emergency Assistance may be provided in the form of food relief and/or cash assistance, emergency employment and other related services to affected workers and their dependents to restore them into self-sufficiency. 2. The Food or Cash Relief Assistance shall be determined based on the equivalent rice and/or emergency food requirement for a family of five (5) members for a minimum of at least fifteen (15) days or equivalent cash assistance of Php2, 000 per affected worker subject to TCC recommendation and approval of DOLE Secretary. ent A. Availment of the Fund/Program 1. Eligible proponents shall submit project proposal and business plan to DOLE thru its concerned Regional Offices/Provincial units on any or combination of the following: Livelihood Assistance; Training and Education Assistance; Social Protection and Welfare Benefits; and Emergency Assistance nose The Regional Office and/or its Provincial Offices shall provide advisory services or technical assistance to the proponents in project identification and preparation of project, proposals, whenever necessary or as requested; 2. The Regional Office/Provincial Office shall initially determine the legitimacy and technical capacity of the proponent organization to deliver capacity building and other services including the organizational development of the implementing beneficiary organization to ascertain its readiness and functional capability to manage the financial grant for the proposed project. The Regional Office/Provincial Office shall submit its findings and recommended action on the project proposal to BWSC-Secretariat for its review; 3. The BWSC-Secretariat shall review the project proposal and present the results for necessary action of the Tripartite Consultative Council. All submitted project proposals shall be presented for deliberation and evaluation of the TCC; 4, Ifthe project proposal is found viable and feasible and that the proponent and implementing organizations are found to have satisfactory competence in project and financialmanagement, the Tripartite Consultative Council shall recommend through a resolution the approval of the project proposal by the DOLE Secretary; 5. Once the project is duly approved, the DOLE, proponent organization and/or partner agency, if any, shall enter into a Memorandum of Agreement (MOA); 6. The BWSC-Secretariat shall notify the proponent or beneficiary organizations and the DOLE Regional Office on any action of the TCC on the submitted project proposals. B. Processing, Fund Release, Utilization and Audit of the Project Fund Processing: 1. The proponent shall identify the needs and opportunities of the biodiesel workers and their families including their community and submit a project proposal to DOLE Regional Office. v .. The DOLE Regional Office or the local PCA shall provide technical advisory assistance to the proponent or beneficiary in the preparation and review of project proposal. 3, The DOLE RO and/or the BWSC shall conduct an organizational capacity assessment of the proponent or beneficiary organization to determine eligibility, level of organizational competence and readiness of the proponent and/or beneficiary to implement the project. 4. The DOLE RO shall submit its findings and recommendations on the project proposal to BWSC within fifteen (15) working days upon receipt of proposal. 5. The BWSC shall review the project proposal within five (5) working days upon receipt and shall endorse the proposal to the TCC for its evaluation and deliberation. If found satisfactory and acceptable, the TCC shall recommend for the approval of the project to the DOLE Secretary. 6. The BWSC shall notify the proponent and the Regional Office within two (2) working days on the recommendation of the TCC or action by the DOLE Secretary on the project proposal. Fund Release: 1. The release of the fund to the proponent shall be in accordance with the goverment accounting and auditing rules and procedures; 2. The DOLE shall release the approved SAWP SEPF in full if approved amount is only Php100,000 or less, otherwise it shall be released on staggered basis: a. Ist release, shall not be more than 50% of the approved budget; and 10b. 2nd release, remaining 50% of the balance subject to at least 75% satisfactory submission of liquidation documents and updated project status report based on the first fund release. Capital outlay or equipment with more than 50% of the total budget shall be released in full if it is considered necessary in the start-up operation of the livelihood project; provided that the proponent and/or beneficiary organization shall enter into deed of undertaking with DOLE Regional Office regarding the proper management and disposition of equipment for the project. 3. The proponent and/or beneficiary organization shall provide equity to the project at least 20% of the total project cost, whether in cash or in kind. Utilization: 4, The proponent and implementing organization shall implement the project based on the approved budget and timeline. 5. The proponent and implementing organization shall utilize the SAWP SEPF received from DOLE exclusively for the intended purpose and in accordance with these guidelines. No released fund shall be utilized for any purpose other than those specified in the approved project proposal. Realignment of project budget by the proponent and implementing organization may be allowed within the same budgetary item; provided that the amount shall not exceed one-third of the total budget and a prior written notice is submitted to BWSC and the DOLE Regional Office. Any modification in fund utilization beyond one- third of the total budget shall be made only upon written approval of the DOLE Secretary. 6. The proponent and implementing organization shall install a display information through sign, billboard, banner, poster, sticker, certificate or any: ‘other public information indicating that the project is financed through the Social Amelioration and Welfare Program (SAWP) for Biofuel Workers, pursuant to R. A. 9367 or the Biofuels Act of 2006. Expenses for the display information shall be included in the project proposal. 7. The proponent and/or the implementing organization shall keep and maintain separate books of account, subsidiary records and combo/savings bank account for SAWP fund received from DOLE which shall be subject to visitorial audit and examination by ef the DOLE and/or the Commission on Audit (COA). 8. The proponent organization shall submit to DOLE Regional Office copy furnished the BWSC, the following: a. Fund status report, five (5) days after each reference month; b. Report on physical and financial project performance fifteen (15) days after each reference quarter. 9. Upon completion of the approved project, the proponent shall provide narrative and liquidation reports within ninety (90) days to DOLE Regional Office copy furnished the BWSC, subject to the usual government accounting and auditing rules and regulations. ul10. The DOLE Regional Office shall monitor all SAWP-SEPF projects and shall submit a summary report including photo documentation (before, during and after) to the DOLE Secretary through the BWSC. 11. The BWSC shall provide technical assistance to DOLE Regional Office, monitor and validate overall project implementation, conduct post-evaluation and document lessons learned on projects implemented for reporting to TCC and DOLE Secretary. Audit and Evaluation: 12. The BWSC shall conduct regular field visit to Regional Offices to assess project progress and provide technical advisory assistance on issues affecting program implementation 13. A DOLE Assessment Team composed of BWSC, DOLE- Internal Audit Service (IAS), and DOLE-Financial and Management Service shall also conduct an end-project evaluation to determine efficiency in fund utilization, best practices, project effect or impact to beneficiaries, community and/or the biodiesel sector. 14, The cost of monitoring, coordination and other related activities of DOLE ROs on SAWP- ‘SEPF shall be charged to the SAWP Administrative Expense Fund (AEF) budget. C. Acquisition and Disposition of Equipment and Machinery 1. Additional purchase of equipment and machinery shall be allowed only upon approval by the DOLE Secretary or his/her authorized representative based on the request of the concerned proponent; 2. If and when applicable, the purchase of equipment and machinery shall be made through generally acceptable procurement process. All supporting documents relative to the purchase of said items shall form part of the liquidation report; 3. The DOLE Regional Office shall issue Acknowledgement Receipt of Equipment (ARE) to beneficiary and/or proponent to confirm receipt of equipment and machinery. 4, Upon project completion or end of project intervention, the DOLE Regional Office shall execute a Deed of Donation for the equipment and machinery with the beneficiary organization; and 5. ‘The BWSC and concemed DOLE Regional Office shall maintain an inventory of assets, equipment and machinery derived from SAWP SEPF, pursuant to prescribed government rules and regulations on disposition thereof and execution of Deed of Donation. D. Liquidation of Released SAWP -SEPF 1. The proponent shall submit liquidation reports to the DOLE Secretary through the BWSC within fifteen (15) calendar days after end of reference quarter from the date of receipt of 12the SEPF and thereafter until the completion of the project. Such liquidation reports shall consist of the following: ‘A summary of expenses incurred as compared with the approved budget; Original copies of official receipts/paid invoices bills related to the project; Report of checks issued; Duly approved vouchers; Report of deposit, collections and interest earned, whenever applicable; List of actual beneficiaries and their addresses; Certificate of acceptance of project beneficiaries for accomplished/completed projects; Photos taken before, during and after implementation of the project, whenever applicable; and Other supporting documents which may be required by the DOLE Regional office and/or BWSC. Pempe ao ge 2. Inthe event that the proponent fails to use the SAWP-SEPF for the intended purpose within three (3) months upon initial fund release without justifiable reason and that the sum corresponding to said amount was not used for the stipulated purpose, the entire amount of find released shall be refunded to the DOLE to revert to SAWP SEPP. Thereafter, recommendation for the cancellation of the MOA shall be made after TCC deliberation on the matter and due notice to the proponent. Any or all unreleased budget shall no longer be released/available to the proponent. 3. Unauthorized purchases of machinery and/or equipment, shall be disallowed and the proponent shall refund to the DOLE the corresponding amount used for of the said machinery/equipment. This shall be a ground for the cancellation of any or all subsequent fund releases, cancellation of MOA and/or non-availment of SAWP-SEPF for succeeding projects by the concerned proponent. 4, Expenses found to be irregular, unnecessary, excessive, and extravagant or not in accordance with the work and financial plan of the duly approved projecU/budget proposal shall not be considered a proper charge to the project fund and shall be disallowed. The proponent shall refund to the DOLE the corresponding amount of the disallowed payments which shall form part of the SAWP SEPF. 5. Any unexpended balance or savings of the project shall be remitted to the DOLE and shall form part of the SAWP SEPF. Any interest income eared out of the SAWP ‘SEPF received from the DOLE shall properly be accounted for and remitted to the DOLE and shall form part of the SAWP SEPF. VII. Monitoring, Evaluation and Documentation The DOLE Regional Office and BWSC will conduct regular monitoring and evaluation of project and shall provide technical assistance and other necessary support services to the proponent and/or beneficiary organization, whenever necessary. 13VIII. Fund and Program Management 1. For accounting and management reporting purposes, the DOLE and concemed Regional Offices shall maintain separate books of accounts and other records, such as general and subsidiary ledgers, journals including related financial reports on transactions pertaining to SAWP Fund. 2, In addition to the usual required financial reports, the Regional Offices and other SAWP program partners and implementors shall submit the following reports to the Bureau: a. Financial Report not later than the 15" day of the month after the reference quarter; and b. Physical Report not later than the 15" day of the month afier the reference quarter. 3, The BWSC-Secretariat shall consolidate said reports and submit program and financial reports to the DOLE Secretary and the TCC. IX. Effeetivity ‘These guidelines shall take effect fifteen (15) days upon publication in any newspaper of general circulation. ROSALINDA DIMAPILI8-BALDOZ Secretary JUN 2016 OF at v0 0 re 14