SLPA CONSTITUTION AND BY-LAWS

[NAME OF SLP ASSOCIATION]

CONSTITUTION

PREAMBLE

We, the unified enterprising members of _____________________________________, on this day, have

voluntarily associated ourselves as a Sustainable Livelihood Program Association or SLPA, and accept the
responsibilities bestowed upon us. We do solemnly swear to adhere and enact the principles set forth in this
Constitution and the Constitution of the Republic of the Philippines.

ARTICLE I - VISION, MISSION, GOALS and OBJECTIVES

[VISION]

[MISSION]

[GOALS]

[OBJECTIVES]

ARTICLE II –NAME AND LOCATION

The [Complete Name of SLP Association], hereinafter referred to as “the Association”, shall have its business
address at [Purok, Barangay, Municipality/ City, Province, Region].

ARTICLE III - DECLARATION OF PRINCIPLES

Sec. 1 The Association believes in the principle of unity and shall act towards the attainment of
common purpose and direction as well as create strong social bond among members and the
community.

Sec. 2 The Association upholds that each member is committed to the responsibility/ies arising from
any agreement contracted by the party for the benefit of the enterprise.

Sec. 3 The Association contends that leadership is a matter of responsibility more than a privilege.

Sec. 4 The Association believes that Savings Mobilization is an effective way of building up resources
to benefit its members, their families and the community as a whole.

Sec. 5 The Association envisions itself as partners of change through community social development
programs.

Sec. 6 The Association adheres to the principle of fairness thereby electing its members to become
officers.

Sec. 7 The Association believes in a democratic process; hence, all decisions shall be agreed by the
majority.

ARTICLE IV - MEMBERSHIP ELIGIBILITY

Sec. 8 All members of the Association have passed the eligibility requirements set forth by DSWD’s
Sustainable Livelihood Program (SLP) which are:

8.1 Member is listed as poor under the Listahanan or a member of the Pantawid
Pamilyang Pilipino Program.
8.2 Household where the member belongs to is categorized as poor based on the
Household Assessment Form (HAF) or qualified based on the SLP Means Test
administered by the NHTU and the Implementing PDO, respectively. Member
belonging to a vulnerable sector (e.g. Persons with Disabilities, Senior Citizens, Out of

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 School Youth, Solo parents, etc.) shall be considered, if s/he is categorized as poor or
qualified based on the result of HAF or SLP Means Test.
8.3 Age requirement of at least 16 years old with written parental consent unless of legal
age.
8.4 Bona fide resident of the Barangay.
8.5 Has undergone and completed all activities under the Pre-implementation and Social
Preparation stages of the SLP.

Sec. 9 All members of the Association have satisfied the following additional criteria:

9.1 With physical, mental and emotional capacities to manage the individual/association
enterprise.
9.2 Has no adverse reputation and possesses good moral character.
9.3 Has positive work habits and attitude.
9.4 Possesses the capacity and appropriate level of aspiration for economic
advancement.
9.5 Has completed the required training, and/or is willing to undergo other capacity
building activities lined up for the project.
9.6 Has paid the membership fee that is intended for the opening of SLPA bank account
and pre-operating cost (e.g. ledger, ballpen, manila paper for reporting purposes, etc)

ARTICLE V –ORGANIZATIONAL STRUCTURE, RIGHTS, DUTIES AND RESPONSIBILITES OF OFFICERS

AND MEMBERS

Sec. 10 All members of the Association shall have the following rights, and privileges:

10.1 To receive the full benefits of being a member of the Association.

10.2 To receive the grant for the Seed Capital Fund modality, if applicable.
10.3 To receive the stipend for the Cash for Building Livelihood Assets modality, if
applicable.
10.4 To receive the Skills training fund, if applicable.
10.5 To vote and be voted upon as Officer of the Association.
10.6 To be heard and consulted prior to any Association’s decisions.
10.7 The Association, through its officers, have the right to terminate any member for not
adhering to the policies covered by this document and the SLP Guidelines.

10.7.1 In cases of unforeseen events (e.g. death or severe illness of the

member, unfitness to engage in the enterprise for whatever reason,
etc.), an eligible member of the household shall become a new
member of the association if s/he is interested to join. S/he shall
have the same rights and responsibilities due a member. The
Association must issue a resolution on the acceptance of the new
member.

In cases where the eligible household member is not interested to

join the Association, s/he must sign a waiver of non-intent. The
Association must issue a resolution and give all the savings, such

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 as Capital Build-Up and Emergency funds, to the eligible household
member.

Sec. 11 All members of the Association shall have the following duties and responsibilities:

11.1 To abide by all the pre-conditions required for the SLP modalities availed.
11.2 For Association who availed seed capital fund (SCF) modality, the Association has the
responsibility to recover the grants extended to them in the form of savings among its
members. The savings to be generated must be equivalent to the amount of grants
received.
11.3 To pay all fines and surcharges that may be imposed by the Association to its
members for breach of disciplines.
11.4 To observe punctuality in all Association weekly meetings and assemblies.
11.5 To keep a copy of all transactions made with the Association as a personal file.

Sec. 12 The Executive Board. The Executive Board is composed of the President, Vice President,
Treasurer, Secretary, and Auditor with the following responsibilities:

12.1 Set examples to the members in adhering to the policies and procedures
set by the Association.
12.2 Serve as the policy-making body of the Association and shall also act as the decision-
making body relative to the management of the Association as a whole.
12.3 Convene meetings regularly or as needed.
12.4 Assess the result of validation/ investigation conducted by the Membership Committee
and provide resolutions.
12.5 Approve/ disapprove selection of supplier/s or service provider/s for Skills Training as
recommended by the Review and Recommending Sub-Committee.

Sec.13. Specific Functions of the Members of the Executive Board

13.1. President

13.1.1 Preside the General Assembly/ies and Executive Board Meetings.

13.1.2 Review and approve all resolutions, communications, official reports, and all
other related documents of the Association.
13.1.3 Approve individual loan application of other members from the Association’s
credit and savings facility (if applicable), upon the recommendation of the
Executive Board.
13.1.4 Authenticate all official documents for records or for release of the
Association.
13.1.5 Represent the Association in his/her official capacity on occasions and
events as needed.
13.1.6 Perform other duties as necessary.

13.2. Vice President

13.2.1 Shall act as President in the absence of the incumbent President.

13.2.2 Serve as head and preside over all meetings of the Membership Committee.
13.2.3 Review and recommend new membership application for expansion of the
Association for approval of the Executive Board.
13.2.4 Conduct investigation for any violation committed by any member of the
Association and recommend resolution to the Executive Board for approval.
13.2.5 Perform other duties as necessary.

13.3. Secretary

13.3.1 Document all proceedings of the general meeting/ assembly including the
attendance of the members for the approval of the Executive Board.
13.3.2 Consolidate, record and file all documents for report generation.
13.3.3 Keep an inventory of all properties of the Association in coordination with the
Auditor.
13.3.4 Perform other duties as necessary.

13.4. Treasurer

13.4.1 Receive payments, remittances and all other financial transactions of the
Association and issues official receipt.

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 13.4.2 Withdraw/deposit cash and check issuances for and required by the
Association.
13.4.3 Provide timely and accurate financial report of the Association every
General Assembly and Executive Board Meeting.
13.4.4 Maintain efficient and effective recording of all financial transactions of the
Association.
13.4.5 Perform other duties as necessary.

13.5. Auditor

13.5.1 Audit the over-all general operation of the Association as well as internal
policies and procedures of the established enterprise.
13.5.2 Conduct financial audit pertaining to financial transactions.
13.5.3 Ensure the quality standard of assets provided by identified supplier
thorough inspection.
13.5.4 Conduct inventory and inspection of assets acquired by the Association.
13.5.5 Lead in the conduct of investigation on fraud, corruption, and other related
cases particularly on the misuse of funds.
13.5.6 Must keep copies of transaction receipts from purchases and payments to
and from suppliers/service providers made by the Association.
13.5.7 Perform other duties as necessary.

Sec. 14. The Association Committees

Election of members in the Committee is conducted simultaneously during the election of Association
officers.

14.1 Membership Committee

14.1.1 Assess eligibility of new applicants.

14.1.2 Ensure active participation of all members.
14.1.3 Conduct activities/ trainings for the capacity building of members.
14.1.4 Provide disciplinary action and conflict management mechanisms for
members to abide by subject to approval of the General Assembly.

14.2 Nomination and Election Committee

In cases where the Association needs to conduct an election (every 2 years or as

necessary), the Executive Board should, within its powers, organize or re-activate the
Nomination and Election Committee to manage the election process of the
Association.

14.3 Business Operations Committee

14.3.1 Identify, develop and recommend other feasible enterprises for the
Association and facilitate implementation of the same.
14.3.2 Lead the Association in marketing products/services to target customers.

14.3.2.1 Business Operations Manager

14.3.2.1.1 Manage the over-all operation of the enterprise(s) of the

Association.
14.3.2.1.2 Ensure financial stability of the enterprise and achieve
return of investment as expected.
14.3.2.1.3 Engage and maintain partners and networks tapped by
the Association.
14.3.2.1.4 Maintain active directory of partners and networks.
14.3.2.1.5 Perform other duties as necessary.

14.3.2.2 Sub-Committees of the Business Operations Committee

The Association to create sub-committees and assign its members

through a resolution to: (a) canvass and identify service provider/
supplier; and (b) purchase and inspect assets. The number of
members to be assigned in every sub-committee will depend on the
total number of the Association.

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 14.3.2.2.1 Canvassing Sub-committee

Conduct the canvassing of tools/equipment, goods and services,

within or nearby the municipality/city, required by the enterprise/s
for its operation adhering strictly to the principles of fairness and
efficiency favourable to the Association.

14.3.2.2.2 Review and Recommending Sub-committee

14.3.2.2.2.1 Assess the qualifications of potential suppliers/service

providers submitted by the Canvassing Sub-Committee
with regard to the capacity to deliver timely the supplies
and services of good quality needed at a reasonable
price.
14.3.2.2.2.2 Provide assessment report/s to the Executive Board for
approval or disapproval of recommended suppliers/
service providers.

14.3.2.2.3 Purchasing Sub-committee

14.3.2.2.3.1 Purchase the necessary assets required as approved

by the Executive Board through a resolution.
14.3.2.2.3.2 Ensure that all assets, goods and services
purchased/delivered are within the approved
specifications before payment.

ARTICLE VI - MEETING OF THE ASSOCIATION

Sec. 15 Association Assembly. The Association shall meet at least once a month (on the schedule
agreed by the majority of the members of the SLPA) for a General Assembly.

Sec. 16 Special General Assembly. A Special General Assembly may be called by the Officers any
time to discuss important matters.

Sec. 17 Regular meetings of the Officers. The Officers shall meet every ______________ of the
month and shall be held at the principal address of the Association at
_____________________________.

Sec. 18 Special Meetings. A special meeting may be called upon by the President or the majority of
the members, if necessary. A written notice signed by the person/persons calling the meeting shall
specify the agenda, date, time, and venue for the reference of the members.

Sec. 19 Notice of General Assembly Meeting. Written notice of all meetings shall be served by the
Secretary to individual members or by posting the notice at the bulletin board at the principal office of
the Association. The notice should include the agenda, date, time, and venue for the reference of the
members.

ARTICLE VII - TERMS OF OFFICE

Sec. 20 The tenure of office of the Association Officers shall be [Number] year(s).

Sec. 21 In the event of sudden vacancy in the roster of officers, a special election shall be convened
immediately to assume the responsibilities and continue with the business operation.

ARTICLE VIII - AMENDMENTS

Sec. 22 This Constitution may be amended, in whole or in part, provided that 75% of the members of
the Association are convened for the purpose.

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 BY-LAWS

With the foregoing charters of the Association, we, the undersigned members hereby reaffirm our
commitment to hold on to the mandatory policies, rules, regulations and standard operating procedures set
forth by the Association as stated in this By-laws.

ARTICLE I - GENERAL POLICIES, STANDARDS AND PROCEDURES

Section 1. PROCESS IN OPENING SAVINGS ACCOUNT

1.1 Once the Association has been formalized, the President, Treasurer, and one nominated
officer shall go to the nearest Land Bank of the Philippines (LBP) branch or any
legitimate rural or commercial bank operating within or adjacent the municipality/city to
open an Association savings account. The Association officers will likewise serve as
official signatories in every bank transaction.
1.2 The amount needed for the opening of savings account shall be shouldered equitably by
the members from the membership fee.
Section 2. GRANT MANAGEMENT

Sec. 2.1 Receipt of Grants from DSWD

2.1.1 The President or any authorized member/s of the Executive Board shall
receive the grants from the DSWD through issuance of cheque addressed to
the Association or direct release of grants to their bank account. He/she shall
secure a copy of document/s that was/were signed as a proof of receipt.
Other related documents required by the Finance Unit of the Field Office
which will serve as proof of receipt of grants must be secured also, if any.
2.1.2 The Executive Board must convene the Association members after receipt of
the grants.
2.1.3 The Association should submit the accomplished Grants Acknowledgement
Receipt, signed by all the current active members, confirming that they have
received funds from the DSWD. This must be submitted to the SLP
Implementing Project Development Officer (IPDO) within three (3) days from
the receipt of the grant.
2.1.4 The Association members with individual enterprises (individual SCF) and
those who availed the Cash for Building Livelihood Assets Fund (CBLAF)
modality must individually submit a Grants Acknowledgement Receipt
confirming receipt of funds from their respective Associations. This must be
submitted to the IPDO also within three (3) days from the receipt of the grant.
2.1.5 Upon receipt of the grants, the Association must utilize it within the
prescribed timeline per modality.
2.1.6 Grants originally earmarked for inactive members must not be withdrawn
from the Association’s bank account and must be returned to the DSWD.
2.1.7 No portion of the grant shall be used for purposes other than the
microenterprise project/s. Violations shall constitute grave breach of
discipline and agreement.

Sec. 2.2 Fund Utilization

Sec. 2.2.1 Withdrawal of funds from the SLPA account

2.2.1.1 Only the President, Treasurer, and the identified officer shall jointly withdraw
the grants. Every bank withdrawal must be supported with a resolution
stating the amount to be withdrawn and the intended purpose.
2.2.1.2 All bank transactions made by the authorized officers shall be presented by
the Treasurer to the members of the Association during the scheduled
monthly meeting of the Association for transparency purposes.

Section 2.2.2. Management of Grants Released to SLPA members

2.2.2.1 Seed Capital Fund Modality

2.2.2.1.1 In cases where the members opt for individual enterprises, the
amount to be released to each member shall, at all times, be based
on the amount reflected in the approved Mungkahing Proyekto.

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 2.2.2.1.2 For association/individual enterprise, the grants must be utilized
within seven (7) to ten (10) working days upon receipt. The officers
must report and monitor the utilization of the grants within the
prescribed timeline.
2.2.2.1.3 The Association must recover the grants availed by the members in
a form of savings. Generated savings shall be used as Operational
Fund. The savings must be generated on a
weekly/monthly/quarterly basis and shall be consolidated by the
Treasurer during regular Association meetings. Availed grants shall
be recovered by the Association within a maximum period of one (1)
year and three (3) quarters.
2.2.2.1.4 The Treasurer shall issue an acknowledgement receipt to the
member/s per transaction.
2.2.2.1.5 All collections shall be deposited to the Association’s Bank Account
by the Treasurer or any authorized member or officer/s.

2.2.2.2 Cash for Building Livelihood Assets Fund (CBLAF) Modality

2.2.2.2.1 Grants must be utilized within two (2) weeks or not longer than
fourteen (14) days after the last working day. Stipend may either be
given to the members on a daily/ weekly basis or upon completion
of the activity.
2.2.2.2.2 Withdrawal of funds may depend on the agreed payment schedule
of the Association. A resolution signed by the majority of the
members shall be attached in the withdrawal slip.
2.2.2.2.3 Provision of stipend will depend on the work rendered by each
member of the Association. Program of Works reflected in the
approved CBLAF Modality Application Form must be followed by
the members. Daily attendance of members reflected in the logbook
will serve as one of the bases in computing the amount to be paid to
members.

2.2.2.3 Skills Training Fund Modality

2.2.2.3.1 The Association must utilize the grants within the prescribed
timeline as indicated in the signed contract between the Association
and the engaged supplier/ service provider.
2.2.2.3.2 Payment shall be given within three (3) to seven (7) days after the
complete provision of all the identified training components,
including assessment of participants, if applicable.

Note: Grants originally earmarked for inactive members should not be

withdrawn by the Association. Only the total allocated grants for current
active members should be utilized by the Association.

Sec. 2.3 Savings Mobilization

2.3.1 Each Association member shall contribute a mandatory amount for the various types
of savings identified below on a weekly/monthly/quarterly basis as agreed. The actual
amount for each type of savings shall be democratically and voluntarily identified by
the members in consideration of the projected income from individual/group
microenterprises and projected expenses of the Association. These savings are as
follows:

Operational Fund is the amount recovered from the member based on the
grants they received. It shall form part of the money of the SLP association and shall
be utilized for the operations of the microenterprise.

This amount shall be equal to the total grant received by the members divided by the
agreed frequency [weekly/monthly/quarterly] of recovery.

Capital Build-up shall be recovered from the members on a weekly/monthly/quarterly

basis and is equal to __% of the Operational Fund. It will become part of the individual
member’s savings and may be used for the expansion of the Association’s enterprise
and extended credit service.

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 Emergency Fund is the individual members’ contribution to the Association intended
for unforeseen circumstances (e.g. hospitalization, burial, calamities and any other
fortuitous events).

It shall be equal to __% of the Operational Fund and shall be recovered on a

weekly/monthly/quarterly basis.

2.3.2 By its mandatory nature, failure on the part of the individual member or the
Association to comply shall constitute a grave breach of discipline and agreement and
shall be penalized. Penalties shall be identified by the Association prior to the
commencement of its operations.

2.3.3 If member leaves the Association for whatever reason, s/he is entitled to receive the
savings s/he has accumulated through Capital Build-up and Emergency Fund;
however, all obligations and dues must be deducted or settled prior to the release of
the total amount.

2.3.4 The Association may provide other assistance (e.g. life/medical insurance) to its
members or engage in community projects for the benefit of the neighborhood subject
to the members’ agreement on the source of fund. The expenses or earnings from
engagement other than the established enterprise shall be properly recorded and
reported to the members by the responsible officer.

Sec. 2.4 Purchase of Assets and/ or Procurement of Services

2.4.1 If equipment and other necessary assets or trainings will be needed by the
Association for the operation of their microenterprise, judicious use of the funds must
be employed.

2.4.1.1 The Association may request for technical assistance from the LGU
procurement and/ or the Barangay Sub-project Management Committee
(BSPMC) of KC-NCDDP in the area on how to purchase/access the
necessary assets and/ or services.

2.4.1.2 All services to be access for the skills training activities of the Association
must be in accordance with the training activity reflected in the approved
Mungkahing Proyekto.

2.4.2 The following are the tasks of the members of the Sub-Committee on Business
Operations Committee:

2.4.2.1 Canvassing Sub-Committee

2.4.2.1.1 The committee members shall canvass at least 3 potential

suppliers or service providers in the market/community
simultaneously with the processing of their project proposal at the
DSWD-Field Office.

2.4.2.1.2 If there are less than three (3) potential suppliers, a justification
report shall be prepared by the committee members to be submitted
to the Review and Recommending Sub-Committee for the
assessment of the supplier’s eligibility.

2.4.2.2 Review and Recommending Sub-Committee

2.4.2.2.1 The committee members assess the eligibility of the possible

supplier/s or service provider/s submitted by the Canvassing Sub-
Committee and forward the list of those qualified to the Executive
Board for final decision.
2.4.2.2.2 The Executive Board selects the most responsive supplier and
informs the Committee of their decision to facilitate the contract
between the Association and the supplier/service provider.
2.4.2.2.3 During the signing of contract, the Association must ensure that at
least one (1) SLPA member shall act as witness and must also affix
his/ her signature.

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 2.4.2.3 Purchasing Sub-Committee. The committee members shall acquire the
required assets or forge agreement for Skills Training with the selected
supplier/service provider for the implementation of the Association’s
proposed microenterprise. Purchase of items not indicated in the approved
Mungkahing Proyekto must be approved by majority of the members of the
Association through a resolution, provided that it will still lead to the
establishment of the approved micro-enterprise. The President shall notify
the IPDO regarding the changes. All assets acquired must be properly
accounted and recorded. A Fund Utilization Report must be submitted by the
committee following the receipt of purchased assets or completion of the
Skills Training.

2.4.2.4 Audit/ Inspection Sub-Committee The committee members shall ensure

the quality of materials purchased based on the specifications provided in the
approved Mungkahing Proyekto and signed contract. In case of defective
materials, the committee members must inform the Purchasing Sub-
Committee for replacement.

For Skills Training, the committee members shall ensure that the Training
Design is strictly observed as agreed and stated in the contract between the
Association and the service provider.

ARTICLE II - PENALTY CLAUSE

Sec. 3.1 FINES, SANCTIONS, DISCIPLINARY ACTIONS

3.1.1 The members agree on the Association’s right to impose fines, sanctions,
disciplinary actions or even impeachment to non-compliant members.
3.1.2 By its mandatory nature, failure on the part of the individual member or the
Association to comply shall constitute a grave breach of discipline and
agreement and shall be penalized accordingly. Penalties shall be identified
by the Association prior to the commencement of its operations.
3.1.3 The following shall be considered breach of discipline;

3.1.3.1 Excessive tardiness and absenteeism, as defined by the

Association, in weekly/monthly meetings, and assemblies.
3.1.3.2 Underpayments and non-payment of the operational fund.
3.1.3.3 Deviation from the intended purpose of the grant/ misuse of fund.
3.1.3.4 Non-utilization of the grant within the required period or based on
Program of Works for common services facilities.
3.1.3.5 Fraud, corruption, and other related cases.
3.1.3.6 Connivance with DSWD personnel/ implementers in the selection of
suppliers/ service providers.

Sec. 3.2 HANDLING OF COMPLAINTS/ CONFLICT AMONG MEMBERS OF THE ASSOCIATION

3.2.1 Any officer/ member may be impeached from the Association upon (1) culpable
violation of the constitution, (2) grave abuse of authority, (3) corruption, (4) fraud, and
(5) other violation detrimental to the Association.
3.2.2 The Secretary shall receive the complaint against any member of the Association. The
Membership Committee shall conduct fact-finding to further assess the case.
Complaint must be tracked, properly recorded, and must be kept confidential.
3.2.3 If the Secretary is the subject of the complaint, the President shall authorize the Vice-
President to replace the Secretary. However, if in case that the subject of the
complaint is the President, the Vice President in coordination with the Membership
Committee shall serve as the accountable in resolving the case.
3.2.4 If the Vice President is the subject of the complaint, the Membership Committee shall
exclude the Vice President in conducting fact-finding/ validation process.
3.2.5 The Membership committee to provide assessment report to the Executive Board and
the latter, and other concerned officers and members to provide fair and just solution
to the case.
3.2.6 For Association who availed SCF modality, any member who fails to abide by the
agreed savings generation scheme for three (3) consecutive times and violated the
By-Laws or major policy of the Association and Membership Agreement may, after
thorough investigation, may be fined, suspended or terminated.

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 3.2.7 All members have the right to file complaint if said concern is valid/ meritorious.
However, the officers shall ensure that all members are informed on every updates
and activities to be conducted through regular monthly meeting to avoid conflict
among the members of the association.
3.2.8 In cases where the Association cannot handle or resolve a certain case, then the
officers and members may elevate the concern to the Barangay Local Government
Unit for further assistance and solution.

ARTICLE III – INCENTIVES AND PROFIT SHARING AGREEMENT

4.1 The Executive Board shall determine the reasonable and applicable sharing scheme
of profits of the Association with inputs/advice from the Business Operations Manager.
The sharing scheme shall be presented during the Association meeting and shall be
approved by majority of the Association through a resolution.

4.2 The Executive Board shall determine applicable incentive schemes to motivate
members of the Association to excel and contribute to the general welfare of the
Association. Said scheme shall be agreed by majority of the members of the
Association.

4.3 The Executive Board shall determine applicability of providing expanded credit
services to its performing members base from the financial standings of the
Association as reported by the Treasurer. If applicable, the Executive Board shall
issue a resolution on the procedure of the availment of credit services. The said
procedure shall be adopted by the majority of the members of the Association and
shall be formalized through a resolution. If needed, a separate sub-committee may be
created for this purpose.

ARTICLE IV - EFFECTIVITY

This Constitution and By-Laws shall take effect upon its ratification. Unanimously adopted and ratified
this _____ day of _____________ at ____________________________________________________.

Signed this [day] day of [Month, YYYY]

NAME POSITION SIGNATURE

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