DILG-DBM

Joint Memorandum Circular

No. 2017-3, s. 2017
Policy Guidelines and Procedures in the Implementation of
the FY2017 Local Government Support Fund – Assistance to
Disadvantaged Municipalities (LGSF-ADM) Program
23 May 2017
 GENERAL GUIDELINES
A. Coverage
CAR
1,373 Municipalities 75 Municipalities in
6 Provinces
17 Regions
REG I
116 Municipalities in
4 Provinces

REG II
89 Municipalities in
5 Provinces
 GENERAL GUIDELINES
A. Coverage

Provision of
Water
System
Projects Evacuation
Facilities

Local
Access
Roads

Small Water
Impounding
Projects
(SWIP)
GENERAL GUIDELINES
A. Coverage
TYPE OF NO. OF ALLOCATION
PROJECTS PROJECTS (In Php B)

Local Access 3,046 Php 13.414 B

Roads

Provision of
Water System 850 3.700 B
Projects

Evacuation
Facilities
440 2.056 B

Small Water
Impounding 104 0.262 B
Projects (SWIP)

TOTALS 4,440 Php 19.431 B

GENERAL GUIDELINES
B. BUDGET CAP PER RECIPIENT MUNICIPALITY:
Based on Pursuant to DILG-DBM JMC No. 1, s.2016 dated September 16, 2016 and
Special Provision No. 2 of the LGSF in the FY2017 GAA, the budget cap per
municipality is determined by:
% of Allocation
CRITERIA Share per Municipality
Allocation (Php Million)

EQUAL SHARE 58% 11,269.725 Php 8.2 Million per municipality

Php 72 per person (based on
PER CAPITA SHARE 20% 3,886.112
2010 Census) per municipality
Php 5.4 Million per municipality
(with BuB funding since FY2015)
Php 3.4 Million per municipality
YEAR-BASED SHARE 19% 3,691.806
(with BuB funding since FY2014);
Municipalities with BuB funding
since FY2013 are excluded
SHARE FOR GOOD PERFORMANCE Php 9.7 Million per eligible
3% 582.917
DETERMINED BY DILG municipality
TOTAL 100% 19,430.560
 Fund Release

BTr
Consolidates Directly downloads the
Issue NCA to AGSB fund to LGUs by
compliant LGUs for
endorse and ANCAI to BTr issuing an ADA to
Fund release
AGSB
- Compliance of recipient Shall provide the
LGUs to the following: Commission on Audit Will inform the LGUs
• DILG Seal of GFH; – Local Government through NADAI,
and Sector (COA-LGS) the cc DBM, DILG RO and
• The assessment of their list of beneficiary Local Auditors in charge
PFM Systems and municipalities and the
adoption of the of the beneficiary
corresponding amounts
corresponding municipalities
released to them
improvement measures
- Deadline – Sept 30,
2017

Note: All other applicable provisions under DOF-DBM Joint Circular No. 2016-1 dated January 4, 2016 and
DBM-DOF Joint Circular No. 2013-1 dated September 16, 2013 shall be observed
AGSB - Authorized Government Servicing Bank
ANCAI – Advice of NCA Issued
NADAI – Notice of Authority to Debit Account Issued
GENERAL GUIDELINES
C. Fund Management
- The amount to be released to LGUs shall be recorded as a
Trust Fund to be used for the specified purpose. This is
consistent with Sec. 86 (c) of the General Provisions of
the FY2017 GAA
- Within fifteen (15) days after receipt of the funds, the
beneficiary LGU shall issue Confirmation Letter to
DILG-RO that the funds have been recorded as Trust
Fund

- A separate subsidiary ledger shall be maintained for

each project to record each transaction
GENERAL GUIDELINES
C. Fund Management
- The LGU shall exclusively utilize the fund for the
implementation of the project in accordance with
existing government budgeting, procurement, accounting
auditing laws, rules and regulations

- All expenses incurred in the conduct of preliminary

activities and other administrative cost in the supervision
of the project during implementation shall be shouldered
by the LGU as their counterpart
GENERAL GUIDELINES
C. Fund Management
- The LGU may use the difference between the Approved
Budget for the Contract and Contract Award Price to
finance additional work under Variation Orders for the
same project, subject to Item iv of Sec. 4.4.3 of the JMC

- The Municipal Accountant shall recognize the completed

project as asset in accordance with existing accounting
rules and regulations

- Funds which cannot be used for the specific purpose for

which the funds were released shall immediately be
remitted to the BTr by the LGU concerned,
GUIDELINES FOR PROJECT
IMPLEMENTATION
The LGU shall be accountable for the
overall implementation of the projects
- The LGU shall ensure that the design, plans,
specifications and construction of projects are in
accordance with the National Government (NG)
standards and within the range of costs and project
duration of similar projects being implemented by a
National Government Agency (NGA) in the same
locality
GUIDELINES FOR PROJECT
IMPLEMENTATION
All projects shall be implemented “By
Contract”
Project implementation “By Administration” shall be
allowed after
 two (2) failed biddings and
 failed negotiated bidding, subject to the
Government Procurement Policy Board
(GPPB)-issued Revised Guidelines for the
Implementation of Infrastructure Projects by
Administration
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the
following to the DILG:

1. Duly notarized Certification prepared by the Municipal Engineer

and Municipal Planning and Development Officer (MPDO), and
signed by the Local Chief Executive (LCE) using the template in
Annex B of the JMC:
2. Sub-project implementation schedule
• indicating the procurement and implementation timelines
• Signed by the Municipal Engineer as preparer and approved
by the LCE (see template under Annex C of the JMC)
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

a. The DED / POW have been prepared in accordance with the NG

standards and approved by the LCE.

b. All bidding documents have been completed and the LGU is ready
to proceed with publication of the Invitation To
Bid/Advertisement (ITB/Ad)
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

c. LGU has submitted application for permits and clearances :
 Environment Compliance Certificate (ECC)/Certificate of Non-
Coverage (CNC),
 National Commission on the Indigenous People (NCIP) and
 Water Permit applications

d. The site of the project has no Land Ownership and/or Road

Right-of-Way (RROW) problem/issues
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

e. For Water Supply Projects
The water source has been validated by the Municipal Engineer
and has been found to be:
• Feasible for supplying water to the intended beneficiaries;
and,
• Potable for drinking or engineering mitigation measures have
been included in the design to make the water potable
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

f. For Vertical Structures
• The project site is located in a safe zone based on the
Department of Environment and Natural Resources – Mines
and Geosciences Bureau (DENR-MGB) hazard map; or
• The project is located in a hazard zone but engineering
mitigation measures have been included in the design to
address the potential problems
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

g. For Evacuation Centers

• The design and site location are compliant with the
requirements of Special Provision No. 9 for the DILG under
the FY2017 GAA, to wit:
 Can withstand wind speed of 300 kilometers per hour and
moderate seismic activity of at least 8.0 magnitude on the
Richter scale;
 utilized natural ventilation
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

g. For Evacuation Centers

• The design and site location are compliant with the
requirements of Special Provision No. 9 for the DILG under
the FY2017 GAA, to wit:
 Inclusion of a rainwater catchment/harvesting system;
 Include facilities for the special needs of women, children,
the elderly, persons with disabilities (PWDs) and such
other physical provisions guaranteeing a humane
condition for evacuees.
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

g. For Evacuation Centers

• The design and site location are compliant with the
requirements of Special Provision No. 9 for the DILG under
the FY2017 GAA, to wit:
 In the selection of sites, shall consider the following :
- site stability and susceptibility to landslide or flooding
- Not located on a no-build zone.
 Special Provision No. 9 for the DILG under
the FY2017 GAA
• “In the design and construction of evacuation center, the DILG shall
ensure that the centers can withstand wind speed of 300
kilometers per hour and moderate seismic activity of at least
8.0 magnitude on the Richter scale; utilized natural ventilation
and rainwater through the inclusion of a rainwater catchment/harvesting
system; and include facilities for the special needs of women, children,
the elderly, persons with disabilities (PWDs) and such other physical
provisions guaranteeing a humane condition for evacuees. In the
selection of sites, the DILG shall consider site stability and susceptibility
to landslide or flooding based on the latest vulnerability, risk assessment
and geo-hazard maps of the DENR. No center shall be located on a no-
build zone. The evacuation centers shall be turned over to the LGU
concerned which shall be responsible for maintenance and operation of
the centers.”
GUIDELINES FOR PROJECT
IMPLEMENTATION
A. Preparation and Submission of Documentary Requirements
Within 2 months after receipt of funds, the LGU shall submit the following
to the DILG:

The Notarized Certification shall attest the following:

h. Municipal funds are available for the maintenance, repairs and

insurance, where applicable, once the project is completed

i. The abovementioned documents shall be made available to the

DILG during field monitoring visits and/or as may be requested
GUIDELINES FOR PROJECT
IMPLEMENTATION
B. Procurement by the Municipality
- All project procurement shall be through competitive bidding, in strict
compliance with the provisions of RA No. 9184 (Government
Procurement Reform Act) and its 2016 Revised IRR and GPPB
Guidelines
• The LGU shall use the standard bidding documents (5th Edition) for
procurement of works issued by the GPPB available in
www.gppb.gov.ph
- All projects must be included in the Annual Procurement Plan (APP)
of the municipality
- Upon submission of the required Notarized Certifications, the LGU
shall proceed with procurement, as indicated in the Certification
GUIDELINES FOR PROJECT
IMPLEMENTATION
B. Procurement by the Municipality
- The DILG and other entities may be invited to observe particularly
during pre-bid conference and/or bid opening

- A duly accredited CSO representative who is a signatory to the

municipality’s list of priority projects shall be invited to sit as observer
in the Bids and Awards Committee (BAC), which will undertake the
procurement activities for the implementation of ADM projects
- The CSO duly accredited by the municipality is in addition to the
three (3) observers identified under Sec. 13 of RA No. 9184 and its
2016 Revised IRR
GUIDELINES FOR PROJECT
IMPLEMENTATION
B. Procurement by the Municipality
- In the event of a failed bidding, the BAC shall
 conduct a mandatory review and evaluation of the terms,
conditions, and specifications in the Bidding Documents,
including its cost estimates
 After the Head of the Procuring Entity (HOPE) has approved the
BAC Resolution declaring a failure of bidding
 start the re-bidding process within five (5) working
days
 submit to the DILG-RO concerned a revised procurement
schedule indicating the revised target dates for the bidding
GUIDELINES FOR PROJECT
IMPLEMENTATION
B. Procurement by the Municipality
- In the event that the municipality will have to resort to negotiated
procurement after two (2) failed biddings, the negotiation shall :
 commence within five (5) days after the HOPE has approved the
resolution declaring a failure of bidding and
 completed within thirty (30) days
 Within the same period, submit to the DILG-RO concerned a
revised procurement schedule indicating the revised target dates
- Within five (5) days from the execution of contract, the municipality
shall submit to the Local Auditor a copy of the contract and other
required supporting documents in accordance with Sec. 3.1 of COA
Circular No. 2009-001 dated February 12, 2009
GUIDELINES FOR PROJECT
IMPLEMENTATION
C. Project Execution
- The municipality shall:
 have the primary responsibility for ensuring the quality of
works, and implementing the project in accordance with the
approved design, plans and specifications
 ensure that project construction shall commence within seven
(7) days after the issuance of the Notice to Proceed (NTP)
 ensure that:
 quality control and assurance are observed,
 quality tests are conducted and
 construction logbook is maintained at the project site,
 made available to DILG during visits and/or as may be
requested
GUIDELINES FOR PROJECT
IMPLEMENTATION
C. Project Execution
- Any variation order shall strictly comply with Annex E
(Contract Implementation Guidelines for the Procurement of
Infrastructure Projects) of the 2016 Revised IRR of RA No.
9184, and the provisions of the Contract
- Any variation order and contract time extension shall be approved
by the LCE
- If the revised cost, which includes the variation order, exceeds the
approved allocation for the project, the municipality shall provide
the required additional funds
- The municipality shall inform the DILG-RO concerned of any
approved variation order and contract time extension, and shall
ensure that all related documents are readily available during
monitoring by DILG personnel and/or as may be requested
GUIDELINES FOR PROJECT
IMPLEMENTATION
C. Project Execution
In case of delay in the implementation of the project, the
municipality shall perform the following actions:
a. Negative slippage of 5%
• By Contract – Issue a Warning Letter with a requirement for the Contractor
to submit a Catch-up Plan
• By Administration – Submit a Catch-up Plan to DILG-RO
b. Negative slippage of 10%
• By Contract – Issue a Final Warning Letter with a requirement for the
Contractor to submit a detailed schedule of activities to catch-up with the
delays, supported by adequate resources such as materials, workforce and
equipment
• By Administration – Submit justification on the cause of delay and catch-
up plan to the DILG-RO concerned, supported by adequate resources such
as materials, workforce and equipment
GUIDELINES FOR PROJECT
IMPLEMENTATION
C. Project Execution
In case of delay in the implementation of the project, the
municipality shall perform the following actions:
c. Negative slippage of 15%
• By Contract – Initiation of termination process in accordance with
Annex E, in conjunction with Annex I, of the 2016 Revised IRR of RA
No. 9184
• By Administration – Submit justification on why the DILG should not
impose sanction mentioned in Sec. 6 of the JMC and submit catch-up
plan to the DILG-RO concerned
- In case the Contractor fails to complete the work within the specified
contract duration and any approved time extension, the municipality
shall impose liquidated damages in accordance with Annex E of the
2016 Revised IRR of RA No. 9184
GUIDELINES FOR PROJECT
IMPLEMENTATION
C. Project Execution
- The municipality shall conduct pre-final inspection (punchlisting) upon
reaching 95% physical accomplishment
- Immediately after the pre-final inspection, the municipality shall instruct the
contractor to rectify the noted deficiencies, if any
- The municipality shall invite the DILG during pre-final inspection
(punchlisting) and final inspections
- The municipality shall ensure the following:
- Performance security by contractors is valid/updated within the approved project
duration including approved time extension
- Warranty security by contractors is valid/updated throughout the warranty period
- The Contractor’s All Risk Insurance is valid throughout the approved project
duration, including time extension
- Completed projects shall be recorded as asset in the book of accounts of the
municipality concerned
GUIDELINES FOR PROJECT
IMPLEMENTATION
D. Information and Publicity of Projects
- Within a month after receipt of the fund, the LGU shall
install the community billboards within the premises of the
municipal hall in accordance with the specifications
prescribed in Annex D of the JMC
- Upon mobilization, the municipality shall ensure the
installation of the project signboard/s at each project
location in accordance with COA Circular No. 2013-004
dated January 30, 2013 and ensure the regular updating
thereof
GUIDELINES FOR PROJECT
IMPLEMENTATION
D. Information and Publicity of Projects
- The municipality shall post in their respective websites within thirty
(30) calendar days from entering into Contract with the winning
contractor/bidder, the following information per project:
- Project title and detailed description, including the nature and location
- The detailed estimates in arriving at the Approved Budget for the
Contract; and
- The winning contractor and the detailed estimates of the bid awarded
- The municipality shall also post in their respective websites within
thirty (30) calendar days from the issuance of Certificate of Project
Completion the following:
- Detailed actual cost of the project; and
- Variation orders, if any
GUIDELINES FOR PROJECT
MONITORING
A. DILG Monitoring
- During project monitoring, the DILG shall observe the
municipality’s compliance with the following requirements:
a. All items included in the Certification and project implementation
schedule submitted by the municipality are in accordance with Item
4.4.1 of the JMC
b. On project implementation:
• Implementation timelines
• Availability of construction materials on site, in accordance with the
approved plans and specifications
• Availability of appropriate equipment on site, in accordance with the
Equipment Schedule and manpower
• Works in accordance with the approved Plans and Specifications
• Quality test conducted and construction logbook is being maintained
GUIDELINES FOR PROJECT
MONITORING
A. DILG Monitoring
- The DILG shall conduct site visits and spot checks during
project implementation
- The DILG, through appropriate channels, shall immediately
advise the municipality of any noted deviation and non-
conformity during implementation and recommend corrective
actions
- The LGU shall submit report on the actions taken on the
recommendations
- A feedback mechanism shall be set up by the DILG to
address the issues and concerns in the implementation of
projects
GUIDELINES FOR PROJECT
MONITORING
B. MDC Monitoring
- The Municipal Project Monitoring Committee (MPMC)
shall serve as the monitoring committee of all projects in the
municipality funded by the National Government
- At least half of the members of this sub-committee shall be
composed of CSOs
GUIDELINES FOR PROJECT
MONITORING
C. Third Party Evaluation
- Subject to the guidelines that may be issued for the purpose,
the DILG shall establish a third party evaluation scheme in
partnership with State Universities and Colleges (SUCs),
and accredited CSOs and POs
- It shall be composed of parties that are external to the
implementing units and the direct beneficiaries of ADM
projects
GUIDELINES FOR PROJECT
REPORTING
A. Reporting by LGU
- The municipality shall submit a status report twice a month to
the DILG, through the Municipal Local Government
Operations Officer (MLGOO):
- Using the prescribed template in Annex E of the JMC and
- In accordance with the schedule of report submission under Annex F
of the JMC
- Copies of the approved Statement of Work Accomplished
(SWA) and Report of Disbursements (ROD) shall be
submitted, if requested
GUIDELINES FOR PROJECT
REPORTING
A. Reporting by LGU
- Upon completion of the project, the municipality shall submit to the DILG
the following:
- Copy of the Certificate of Acceptance of the project signed by the LCE
- Copy of the Project Completion Report; and
- Other supporting documents, as may be deemed necessary
- The municipality shall submit quarterly reports on the financial and physical
accomplishments of ADM projects either in printed form or by way of
electronic document to:
 DBM,
 Speaker of the House of Representative,
 President of the Senate of the Philippines,
 House Committee of Appropriation,
 Senate Committee on Finance,
 copy furnished the Local Auditor concerned
GUIDELINES FOR PROJECT
REPORTING
B. Reporting by DILG
- The DILG Provincial Office (DILG-PO) shall transmit the
status reports from the LGU to the DILG-RO
- The DILG-RO concerned shall prepare a Regional
Consolidated Reports, both financial and physical
accomplishments, based on the reports submitted by the
municipality and submit the same to the DILG Central
Office, copy furnished the Regional Auditor
- The DILG Central Office shall prepare an ADM Project
Consolidated Report based on the Regional Consolidated
Reports submitted and provide a copy to the COA-LGS
GUIDELINES FOR PROJECT
REPORTING
B. Reporting by DILG
- The DILG shall evaluate the submitted reports submitted by
the municipality to check the consistency between the
reported and the actual works accomplished
- As necessary, the DILG may join inspections with the municipality
to resolve inconsistencies
- The DILG shall post the reports submitted by the
municipality on the ADM Portal
- The DILG shall conduct regular site visit and spot check
during construction of the project
 Thank you
ADM Project Management Office
Office of the Undersecretary for Local Government
Department of the Interior and Local Government

Telefax: +63 2 925 0357

E-mail: [email protected]

Source:
http://www.dilg.gov.ph/issuances/jc/Policy-Guidelines-and-Procedures-in-the-
Implementation-of-the-FY-2017-Local-Government-Support-Fund-Assistance-
to-Disadvantaged-Municipalities-LGSF-ADMProgram/81
GENERAL GUIDELINES
B. BUDGET CAP PER RECIPIENT MUNICIPALITY:
Pursuant to DILG-DBM JMC No. 1, s.2016 dated September 16,
2016 and Special Provision No. 2 of the LGSF in the FY2017
GAA, the budget cap per municipality is determined by:
- EQUAL SHARE (58%): P8.2 million per
municipality
- Per capita share (20%): P72 per person (based on 2010 Census)
per municipality
- Years-based share (19%)*: P3.4 million per municipality (with
BuB funding since FY2014); P5.4 million per municipality (with
BuB funding since FY2015)
- Share for good performance determined by DILG (3%): P9.7
million per eligible municipality

* Municipalities with BuB funding since FY2013 are excluded