28 April 2011

BJMPNO

STANDARD OPERATING PROCEDURES

NUMBER 2011 - 02

POLICY GUIDELINES FOR BJMP LIVELIHOOD PROJECTS

I. REFERENCES

1. Memorandum from the Secretary, Department of Interior and Local

Government dated 22 January 2010 re: Activation of the Directorate for
Inmates Welfare and Development, Directorate for Intelligence and
Directorate for Investigation and Prosecution of the Bureau of Jail
Management and Penology.
2. BJMPNO SOP No. 2008 – 04 “Guidelines in the Selection, Disbursement,
Accounting, Disposal of Funds Gained Evaluation and Review of Livelihood
Projects in the BJMP.”
3. Memo dated 30 July 2008 re: e-market of Jail Products and Services.

II. PURPOSE

This prescribes the standards and procedures in the selection, disbursement of funds,
monitoring, and evaluation of livelihood projects by applying the doctrines of transparency and
accountability and the principles of internal auditing and management.

III. OBJECTIVES

1. To provide guidelines in the selection of livelihood projects for funding,

disbursement of funds, accounting of funds, disposal of funds gained, evaluation and review of
livelihood projects in BJMP jails.

2. To institute internal safeguards and procedures to standardize, institutionalize and

strengthen existing internal control in the handling of funds intended for livelihood projects to
preclude misuse of funds.

3. To promote profitability and sustainability of livelihood projects for inmates.

4. To set parameters in the evaluation and review of financial accountability.

5. To provide ready reference for any inquiry by concerned national and local agencies
pertaining to livelihood projects of the Bureau.

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IV. GENERAL PRINCIPLES

1. All funds intended for livelihood programs should only be used for livelihood
development. It shall not be used for personnel enhancement, unit operation maintenance
and infrastructure improvement not related to livelihood development.

2. To qualify for financing/funding, the feasibility study should pass the following
criteria: (1) Technical, (2) Financial (includes profitability), (3) Organizational; and (4) Marketing.
(Attached as Form B is the review matrix of the livelihood projects).

3. The Regional Inmates Welfare and Development Division shall take an active role in
the promotion of livelihood development, monitoring and evaluation of all livelihood projects.
It shall be responsible in overseeing all livelihood projects of jails within its region.

4. All transactions should be properly documented to provide an audit trail.

5. Check and balance should be maintained to uphold transparency and accountability

in all transactions involving livelihood development funds.

6. Marketing of products and services online has become a trend. The Bureau shall
maximize the use of the internet. The BJMP website shall serve as one of the avenues for
promotion and marketing of livelihood products of jails especially those approved and funded
by the National Headquarters (NHQ).

7. The Jail Industry Section of the Directorate for Inmates Welfare and Development
shall be the responsible in the supervision of the livelihood projects to ensure their effective
and efficient implementation as well as its adherence to the principles stated in this policy.

V. GUIDELINES IN THE SELECTION OF LIVELIHOOD PROJECTS

(Please see attached Flowchart A)

1. The Inmates Welfare Development Officer (IWDO) of the Jail shall assess inmates’
needs for livelihood programs and look into other opportunities to fulfill Inmates’ Welfare
Development (IWD) objective.

2. The IWDO of the Jail shall prepare a comprehensive feasibility study of intended
livelihood project.

3. The Feasibility Study shall be composed of a minimum of eight (8) pages and a
maximum of fifteen (15) pages and shall consider exploring the following aspects: (Please see
attached Form A).

a. Technical aspect
 Where is the location of the jail? (The location of the livelihood project must be
inside the jail premises.)
 What is the level of security risk in the jail?
 Is there available space in the jail for the proposed project?
 What are the raw materials needed?
 Where will the raw materials be acquired or sourced?
 What is the process of making the product?
 Is there a need for skills training for the laborers?
 Who will provide the skills training?

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 What is the duration of skills training?

b. Financial aspect
 What is the cost of the skills training?
 What is the cost of production?
 What is the expected return on investment (ROI) and period?

ROI = (Gain from Investment – Cost of Investment)

Cost of Investment

 What is the expected period for attaining break even and profitability?
 Is the project financially sustainable?

c. Organizational aspect
 Who will manage the business?
 Who will provide labor?
 Who will sell the product?
 How many inmates will participate and benefit from the project?

d. Marketing aspect
 What is the marketing or promotional scheme to be employed?
 What and where is the expected market?
 What is the packaging of the product?

4. The Feasibility Study shall be noted by the Jail Warden and shall be submitted to
the Regional Office.

5. The Regional IWDD shall meticulously review the proposals.

6. The Regional IWDD shall select the feasibility studies and will be recommended by
the Regional Director to the NHQ for approval.

7. The DIWD shall review and recommend approval of the feasibility study. More than
one (1) feasibility study may be selected per month depending on the amount of funds required
for the submitted feasibility studies. Feasibility studies submitted to the DIWD, but not funded
for the month will still be considered in the succeeding periods. Only feasibility studies
submitted on or before every fifteenth (15 th) of the month will be included for review during
the period.

8. The DIWD may send its agents/representatives to visit the proposed site of the
livelihood project as part of the review. Per Diem and appropriate allowances shall apply as
authorized by appropriate Letter Order.

9. The DIWD shall recommend funding for the feasibility study.

10. The Directorate for Comptrollership shall certify availability of funds requested to
finance the livelihood project.

11. The Chief, BJMP shall approve the funding of the proposed project and its
subsequent implementation.

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12. Upon approval of the Chief, BJMP, the DIWD shall provide copies of the documents
of the approved project to the Directorate for Comptrollership and the Information and
Communication Technology Service (ICTS).

13. The ICTS shall be responsible for the uploading, maintenance and updating in the
BJMP website (under the e-market section) the approved livelihood project/product. The
DIWD shall provide the ICTS all important details of the project (i.e. pictures, prices, product -
specifications, contact details, modes of payment etc.).

14. The ICTS shall upload in the BJMP website the approved livelihood project/product
within fifteen (15) days upon receipt of the information/materials.

15. The DIWD shall inform the Regional Director, through the Regional IWDD, their
approved/disapproved proposed livelihood projects. The Regional IWDD shall inform the Jail
Warden of the same.

VI. GUIDELINES IN THE RELEASE, ACCOUNTING AND DISPOSAL OF FUNDS GAINED FROM
LIVELIHOOD PROJECTS (Please see attached Flowchart B)

A. Guidelines in the Release of Funds intended for Livelihood Projects

1. Funds intended for livelihood projects are programmed under the Operations
portion of the BJMP budget as reflected in the annual General Appropriations Act.

2. All funds used/releases for livelihood projects shall be subject to the usual
accounting and auditing rules and procedures.

3. The Directorate for Comptrollership shall release funds to the Regional Disbursing
Officer. It shall also inform, through a written communication/memorandum, the Directorate
for Inmate’s Welfare and Development regarding the release of funds or status of the same.

4. The Regional Disbursing Officer shall release the livelihood fund to the Unit IWDO
to allow easy access and disbursement of funds, noted by the Jail Warden. The Jail Warden shall
continuously monitor the status of livelihood funds.

5. Diversion of approved funds to another project or jail is prohibited. A new

livelihood project or the transfer of a project to another jail should undergo the process set
forth in this policy.

B. Guidelines in the Accounting of Funds

1. The Regional IWDD shall conduct regular jail assessment and monitoring of the
implemented livelihood project. (Please see attached Form E).

2. The Unit IWDO shall maintain financial records of all disbursements of funds and
profit gained from livelihood projects, all receipts and acknowledgement forms shall be
attached to the Financial Statement comprised of a balance sheet and statement of cash flow.
A separate financial statement shall be maintained for each livelihood project. (Please see
attached Forms C and D).

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C. Guidelines in the Disbursement of Funds Gained from Livelihood Projects

1. Profit gained from the livelihood project shall be under the custody and control of
the Unit IWDO to allow easy access of funds. Livelihood development fund and profit gained
from livelihood projects shall be deposited in a bank nearest to the jail. The Unit IWDO and the
Regional IWDO shall be co-depositors in said bank account.

2. Upon attainment of project sustainability as ascertained by assessment of the

Directorate for Inmates’ Welfare and Development, the Regional IWDD shall determine if such
fund can be used for the expansion of the existing livelihood project or to fund another
livelihood project in the same jail.

VII. GUIDELINES FOR THE MONITORING OF IMPLEMENTED LIVELIHOOD PROJECTS

(Please see attached Flowchart C)

All transactions involving livelihood funds shall be documented. The Unit IWDO
1.
shall maintain a ledger for each livelihood project. (Please see attached Forms C and D).

2. All financial statements shall be submitted to the Regional IWDD on a monthly

basis.

The Regional IWDD shall indicate disbursements for livelihood projects in the
3.
Quarterly Program Review and Analysis, which is submitted to the NHQ on a quarterly basis.

The Regional IWDD shall submit a report of all livelihood projects in the Region to
4.
the Directorate for Inmates’ Welfare and Development at least two (2) weeks prior to the
quarterly management conference.

Monitoring of the books and accounts of each livelihood project shall commence a
5.
month after its inauguration. Monitoring in the region shall be conducted by the Regional
IWDD. The Regional IWDD shall provide the DIWD a copy of the report on the monitoring of
livelihood projects every month. The monthly reports shall be one of the bases of the DIWD in
its evaluation.

VIII. GUIDELINES FOR THE EVALUATION OF IMPLEMENTED LIVELIHOOD PROJECTS

(Please see attached Flowchart D)

Evaluation shall be conducted by the Regional IWDD to review the livelihood

1.
project vis-à-vis the accomplishments and outputs, identify weak areas, and provide
suggestions to improve or develop the project. Review shall be done quarterly and shall be
submitted to the Directorate for Inmates’ Welfare and Development during each review period.
(Please see attached Form E as Format for Evaluation).

2. The evaluation shall be based on the following:

a. Were the objectives attained through the activity/methodology undertaken?
b. Were the activities conducted in accordance with the work plan?
c. If there were some changes in the project, were the revisions justified and
acceptable?
d. Were the funds utilized in accordance with the scheduled activities?
e. Were there constraints in the implementation of the project?
f. If the constraints in the project have been attended to, what were the actions
taken?
g. Were there significant findings that may now be utilized by various clienteles?

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h. Are the potential impacts of the project relevant to the

community/development of the inmates?

The Directorate for Inmates’ Welfare and Development may send its
3.
agents/representatives to visit the site of the livelihood project as part of the evaluation. Per
diem and appropriate allowances shall apply as authorized by appropriate Letter Order.

The Directorate for Inmates’ Welfare and Development shall recommend if a

4.
project should be renewed, extended or terminated considering the objectives,
accomplishments and relevance of the project.

5. If a livelihood project is a failure, the proponent jail shall be disqualified from being
a recipient for livelihood project funding until the following fiscal year.

6. In the event of loss of initial capital, the livelihood project shall cease operations.
Thorough investigation will be conducted by the Regional Investigation and Prosecution
Division (RIPD) in coordination with the Regional IWDD. An Investigation Report shall be
submitted to the Directorate for Investigation and Prosecution (DIP) for evaluation in
coordination with the DIWD which will in turn submit appropriate recommendation(s) to the
Chief, BJMP. If there exists probable cause/s that the total business failure was due to
irregularities, administrative and criminal case/s will be filed against erring parties.

In the event of shut down of operations due to force majeure, additional capital
7.
outlay may be provided after the Regional IWDD has fully justified its situation to the NHQ.

IX. GUIDELINES FOR LIVELIHOOD PROJECTS OF MUNICIPAL, CITY, DISTRICT JAILS NOT
FUNDED BY BJMP (Please see attached Flowchart E)

For security purposes and to protect the name of the institution, the Regional IWDD
1.
shall also oversee livelihood projects of municipal, city, and district jails not funded by BJMP.

2. Jails with livelihood project proposals that do not require BJMP funding shall
endorse, through its Warden, the said proposals to the Regional IWDD.

3. The Regional IWDD shall review these proposals. The review shall focus on the
technical and organizational aspects of the livelihood project proposals that do not entail any
fund from BJMP.

Regional IWDD shall forward to the NHQ (Attention: Directorate for Inmates’
4.
Welfare and Development) the result of their review.

The Directorate for Inmates’ Welfare and Development shall review the livelihood
5.
project and will recommend approval or disapproval of the project to the Chief, BJMP.

6. The Chief, BJMP shall approve or disapprove the proposed project.

7. Upon approval of the Chief, BJMP, the Directorate for Inmates’ Welfare and
Development shall provide copies of the documents of the approved project to the Information
and Communication Technology Service (ICTS).

The Directorate for Inmates’ Welfare and Development shall inform the Regional
8.
IWDD the approval/disapproval of their livelihood projects while the Regional IWDD shall
inform the Jail Warden of the same.

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The Directorate for Inmates Welfare and Development shall be responsible in

9.
making the necessary arrangements/coordination should there be a signing of an agreement
that necessitates the presence of the Chief, BJMP.

10. The ICTS shall upload in the BJMP website the approved livelihood project/product
within fifteen (15) days upon receipt of the information/materials.

11. The Regional IWDD shall monitor and evaluate the livelihood projects not funded
by BJMP. It shall submit monthly reports to the NHQ (Attention: Directorate for Inmates
Welfare and Development).

12. All jails with existing livelihood projects not funded by BJMP shall also submit a
report of the same, to the Regional IWDD for monitoring and evaluation purposes. These
reports shall be included in the regular reports being submitted by the Regional IWDD to the
NHQ.

X. REPEALING CLAUSE

All circulars or issuances which are inconsistent with this policy are hereby rescinded or
modified accordingly.

XI. EFFECTIVITY

This policy shall take effect immediately upon approval.

ROSENDO M DIAL, CESO III

Jail Director DSC
Chief, BJMP

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 Guidelines for BJMP Livelihood Projects

FORM A

Department of the Interior and Local Government

BUREAU OF JAIL MANAGEMENT AND PENOLOGY
Name of Region
Name of Jail
Address of Jail

NAME OF THE LIVELIHOOD PROJECT:____________________

I. PROJECT SUMMARY
General information
Location
Descriptive definition of the project
Feasibility criteria
Highlights of the project

II. OBJECTIVES

III. STATEMENT OF THE PROBLEM

IV. ORGANIZATIONAL STUDY

Persons in charge
Manager
Book keeper/Accountant
Procurement of equipment and utilities
Procurement of raw materials
Production/labor requirement
List of Inmates that will participate/benefit
Waste disposal system

V. MARKET STUDY
User of the product
The price of the product sold
Marketing program
Marketing scheme/promotion
Target market
Marketability

VI. TECHNICAL STUDY

Product description
Manufacturing process
Size of the production area and production schedule
Equipment and utilities
Location of the production area
Production area layout
Raw materials required, source and acquisition

VII. FINANCIAL STUDY

Major assumptions
Cost of initial procurement for required equipment and utilities
Production cost
Cost of product/volume
Cost of labor
Cost of raw materials
Cost of marketing and promotional strategy
Total project cost
Projected financial statement
Projection of expected period of break even, profitability and sustainability

VIII. CONCLUSION/RECOMMENDATION
IX. PICTURES
X. REFERENCES

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FORM B

Department of the Interior and Local Government

BUREAU OF JAIL MANAGEMENT AND PENOLOGY
Name of Region
Name of Jail
Address of Jail

Review Format of Proposed Livelihood Project/Feasibility Studies

Period: _______________________________

Proponent Jail: _________________________

Project Title: __________________________

Amount Requested: _____________________

Recommended Action: ___________________

1
BASES FOR RECOMMENDATION

A. Technical Aspect
 Where is the location of the jail? (The location of the livelihood project must be inside the jail
premises.)
 What is the level of security risk in the jail?
 Is there available space in the jail for the proposed project?
 What are the raw materials needed?
 Where will the raw materials be acquired or sourced?
 What is the process of making the product?
 Is there a need for skills training for the laborers?
 Who will provide the skills training?
 What is the duration of skills training?
b. Financial aspect
 What is the cost of the skills training?
 What is the cost of production?
 What is the expected return on investment (ROI) and period?

ROI = (Gain from Investment – Cost of Investment)

Cost of Investment

 What is the expected period for attaining break even, profitability and sustainability?
c. Organizational aspect
 Who will manage the business?
 Who will provide labor?
 Who will sell the product?
 How many inmates will participate and benefit from the project?
d. Marketing aspect
 What is the marketing or promotional scheme to be employed?
 What and where is the expected market?
 What is the packaging of the product?

e. Other aspects

Prepared/Reviewed by:

(Regional IWDD)

1
The format may be adjusted as needed.

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FORM C

Republic of the Philippines

Department of the Interior and Local Government
BUREAU OF JAIL MANAGEMENT AND PENOLOGY
Name of Region
Name of Jail
Address of Jail

NAME OF LIVELIHOOD PROJECT

INCOME STATEMENT
For the Month ___________

INCOME:
Sales P
Total income P

EXPENSES:
Gasoline and oil P
Wages P
Telephone P
Supplies P
Miscellaneous expense P
Total expenses P
NET INCOME FOR THE MONTH P

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FORM D

Republic of the Philippines

Department of the Interior and Local Government
BUREAU OF JAIL MANAGEMENT AND PENOLOGY
Name of Region
Name of Jail
Address of Jail

NAME OF LIVELIHOOD PROJECT

BALANCE SHEET
For the Month _________

Assets
CURRENT ASSETS:
Cash
Accounts receivable
Less estimated bad debts

Accrued income:
Delivery charges
Prepaid expenses:
Interest
Supplies
Total current assets

FIXED ASSETS:
Trucks
Less accumulated depreciation
Furniture and equipment
Less accumulated depreciation
Total fixed assets

TOTAL ASSETS

Liabilities and Capital

CURRENT LIABILITIES:
Notes payable
Accounts payable
Accrued expenses:
Wages
Interest
Total current liabilities

DEFERRED INCOME:
Delivery charges
Total liabilities
CAPITAL

TOTAL LIABILITIES AND CAPITAL

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FORM E

Department of the Interior and Local Government

BUREAU OF JAIL MANAGEMENT AND PENOLOGY
Name of Region
Name of Jail
Address of Jail

2
Evaluation Format of Approved Livelihood Project

Period: _______________________________

Proponent Jail: _______________________

Project Title: _________________________

Amount Funded: __________________

BASES FOR EVALUATION

A. Technical Aspect
 Quality of the Product
 Risk of Inmates who perform the project
 Timeliness in the Implementation of the project
 Availability of the product upon demand increases

b. Financial aspect
 Cost of production commence to the cost of the project
 Attainability of the Profit
 Attainability on the Return of Investment
 Net Income per Month of the Project

c. Organizational aspect
 Sincerity in managing the project
 Strategic Implementation of the project
 Behavioral function of the Inmates who perform the project
 Innovative ideas in continuing the project
 Number of inmates benefited

d. Marketing aspect
 Competitiveness of the product
 Degree in promotion of the product
 Compatibility with other products
 Timeliness in the delivery of the product

e. Other aspects

Prepared/Reviewed by: Noted by:

Chief, Regional IWDD Regional Director

2
The format may be adjusted as needed.

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FLOWCHART A

GUIDELINES IN THE SELECTION OF LIVELIHOOD PROJECTS

JAIL IWDO
1. Assesses inmates needs.
2. Prepares feasibility study

JAIL WARDEN
3. Notes the feasibility study Regional IWDD shall inform the Jail
Warden of the approval /
disapproval of the livelihood project.

REGIONAL IWDD
4. Preliminary screening of
study.
5. Forwards, through a
Recommendation by the
Regional Director, the FS
to the NHQ for approval.

DIWD shall inform the

Regional IWDD of the
approval / disapproval of
the livelihood project.
DIWD
6. Reviews and recommends
approval or disapproval of
the livelihood project.
7. Monitors and recommends
funding for the feasibility
study.

DIRECTORATE FOR
COMPTROLLERSHIP Upon approval, the DIWD shall
8. Certifies availability of provide copies to the following:
funds.
•Directorate for Comptrollership
•Information and Communication
Technology Service

CHIEF, BJMP
9. Approves funding and
subsequent implementation
of livelihood project.

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FLOWCHART B

GUIDELINES IN THE RELEASE, ACCOUNTING AND DISPOSAL OF FUNDS GAINED FROM

LIVELIHOOD PROJECTS

DIRECTORATE FOR COMTPROLLERSHIP

1. Releases funds to Regional
Disbursing Officer

NOTE:
All funds used/releases
REGIONAL DISBURSING OFFICER for livelihood project
2. Releases livelihood fund to shall be subject to the
Jail IWDO. usual accounting and
auditing rules and
procedures.

JAIL WARDEN JAIL IWDO

LIVELIHOOD PROJECTS
3. Notes receipt of 3. Receives livelihood fund from
livelihood funds. Regional Disbursing Officer.
4. Continuous 4. Maintenance custody of funds.
monitoring of 5. Maintains financial records of
livelihood project. Cash in and out.

DIWD and Regional IWDD

6. Conducts regular
assessment
and monitoring of livelihood
project(s).

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FLOWCHART C

GUIDELINES FOR THE MONITORING OF IMPLEMENTED LIVELIHOOD PROJECTS

JAIL IWDO
1. Maintains ledger for each livelihood project.
2. Submits monthly reports including financial
statements to the Regional IWDD.

REGIONAL IWDD

3. Commences regular monitoring of books and accounts of

each livelihood project a month after its inauguration.
4. Indicates disbursements for livelihood projects in the
Quarterly Program Review and Analysis.
5. Submits a report that includes financial statement of all
livelihood projects in the region to the Directorate for
Inmates Welfare and Development at least two (2) weeks
prior to the quarterly management conference.

DIRECTORATE FOR INMATES’ WELFARE AND DEVELOPMENT

6. Monitors/Supervises the livelihood projects.

7. Collects and reviews the monitoring reports of the
Regional IWDD.
8. Prepares monthly and quarterly reports of its monitoring.

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FLOWCHART D

GUIDELINES FOR THE EVALUATION OF IMPLEMENTED LIVELIHOOD PROJECTS

REGIONAL IWDD
1. Conducts evaluation of the livelihood project(s) vis-à-vis the accomplishments
and outputs, identify weak areas, and provide suggestions to improve or
develop the project. Evaluation shall be done quarterly and shall be submitted
to the Directorate for Inmates Welfare and Development during each review
period.
2. In the event of shutdown of operations due to force majeure, the Regional
IWDD may request additional capital outlay from the NHQ. The Regional IWDD
shall justify this request and submits it to NHQ.

Note: In the event of loss

of initial capital, the
livelihood project shall
cease operations.
Thorough investigation
will be conducted by the DIRECTORATE FOR INMATES WELFARE AND DEVELOPMENT
Regional Intelligence and
Investigation Division in
3. Studies the evaluation of livelihood projects conducted by the
coordination with the
Regional IWDD. An Regional IWDD.
Investigation Report shall 4. Prepares its own evaluation of the livelihood projects based on
be submitted to the the submission of the Regional IWDD. The Directorate for
Directorate for Inmates Welfare and Development may send its
Investigation and
Prosecution for agents/representatives to visit the site of the livelihood project as
evaluation in part of the evaluation. Per diem and appropriate allowances shall
coordination with the apply as authorized by appropriate Letter Order.
Directorate for Inmates’ 5. Evaluates and recommends approval of requests for additional
Welfare and
capital outlay for projects that shut down due to force majeure.
Development which will
in turn submit 6. Recommends to the Chief, BJMP if a project should be renewed,
appropriate extended or terminated considering the objectives,
recommendations to the accomplishments and relevance of the project vis-à-vis its
Chief, BJMP. If there evaluation.
exists probable cause/s
that the total business
failure was due to
irregularities,
administrative and
criminal case/s will be
filed against erring
parties.

CHIEF, BJMP

7. Approves renewal, extension

or termination of the
livelihood projects.

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FLOWCHART E

GUIDELINES FOR LIVELIHOOD PROJECTS OF MUNICIPAL, CITY, DISTRICT JAILS

NOT FUNDED BY BJMP

Post – approval Stage Pre – approval Stage

NOTE:
All jails with existing livelihood JAIL WARDEN
projects not funded by BJMP 1. Endorse livelihood
DIST
shall also submit a report of the Project proposal that
same, to the Regional IWDD for does not require BJMP
monitoring and evaluation funding to Regional Regional
purposes. These reports shall IWDD. IWDD
be included in the regular informs the
Jail Warden
reports being submitted by the
of the
Regional IWDD to the NHQ.
approval/
disapproval
of the
Regional IWDD Regional IWDD project
• Monitors and evaluates the 2. Reviews the proposals
livelihood projects not focusing on the technical
funded by BJMP. It shall and organizational
submit monthly reports to aspects.
NHQ. DIWD
informs the
Regional
IWDD of the
approval/
DIWD disapproval
• Makes the necessary DIWDD of the
arrangements/ coordination 3. Reviews the livelihood project.
should there be a signing project and will
of an agreement that recommend approval
necessitates the presence or disapproval of the
of the Chief, BJMP. project to the Chief,
• Monitors the approved BJMP.
livelihood projects.

ICTS CHIEF, BJMP

Upon approval, ICTS
4. Approves and
uploads within 15 days
Disapproves the
the livelihood project.
Livelihood project
Proposals.

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ANNEX A

DEFINITION OF TERMS

RETURN ON INVESTMENT (ROI)

 The ratio of money gained or lost on an investment relative to the amount of money
invested.

 Refers to the monetary amount of gain or loss.

 The return on a past or current investment or the estimated return on a future

investment.

 Return on investment is a very popular metric because of its versatility and simplicity.
That is, if an investment does not have a positive ROI, or if there are other opportunities
with a higher ROI, then the investment should not be undertaken.

 A performance measure used to evaluate the efficiency of an investment or to compare

the efficiency of a number of different investments. To calculate ROI, the benefit
(return) of an investment is divided by the cost of the investment; the result is
expressed as a percentage or a ratio.

 Formula:

ROI = (Gain from Investment – Cost of Investment)

Cost of Investment

BREAK EVEN POINT

 Break-even analysis is used in cost accounting and capital budgeting to evaluate

projects or product lines in terms of their volume and profitability relationship.

 At its simplest, the tool is used as its name suggests: to determine the volume at which a
company's costs will exactly equal its revenues, therefore resulting in net income of
zero, or the "break-even" point. Perhaps more useful than this simple determination,
however, is the understanding gained through such analysis of the variable and fixed
nature of certain costs. Break-even analysis forces the small business owner to research,
quantify, and categorize the company's costs into fixed and variable groups.

 The basic formula for break-even analysis is as follows:

BEQ = FC /(P-VC)

 Where:
BEQ - Break-even quantity
FC - Total fixed costs
P - Average price per unit, and
VC - Variable costs per unit.

 Fixed costs include rent, equipment leases, insurance, interest on borrowed funds, and
administrative salaries—costs that do not tend to vary based on sales volume. Variable
costs, on the other hand, include direct labor, raw materials, sales commissions, and
delivery expenses—costs that tend to fluctuate with the level of sales. A key component

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 Guidelines for BJMP Livelihood Projects

of break-even analysis is the contribution margin, which can be defined as a product or

service's price (P) minus variable costs (VC) per unit sold. The contribution margin
concept is grounded in incremental or marginal analysis; its focus is the extra revenue
and costs that will be incurred with the next additional unit.

PROFIT
 The amount of money gained or lost may be referred to as interest, profit/loss,
gain/loss, or net income/loss.

SUSTAINABLE
 Keep something going over time or continuously.

FORCE MAJEURE
 Unforeseeable circumstances that prevent someone from fulfilling a contract.
 Superior strength.

LIVELIHOOD PROJECT

 Means of support or subsistence

 Which recognizes values of all contributions to sustain and strengthens the community
from poverty

FEASIBILITY STUDY

 An analysis of a proposed development project to determine whether it is viable

technically, financially and economically.
 The analysis of a problem to determine if it can be solved effectively.
 The Operational, Economical and Technical aspects are part of the study. Results of the
study determine whether the solution should be implemented.

RESOLUTION

 A written motion adopted by a deliberative body

 The cognitive process of reaching a decision
 A formal expression by a meeting; agreed to by a vote
 A formal statement of a decision or expression of opinion put before or adopted by an
assembly such as a legislative body

LEDGER

 A record in which commercial accounts are recorded

 A book in which the monetary transactions of a business are posted in the form of
debits and credits. A record of accounts is transferred as final entry from original
postings
 A collection of an entire group of similar accounts in double - entry bookkeeping

BJMP/DIWD/JO1 Bantugan April 2011