Assistance to Disadvantaged

Municipalities (ADM)

POLICY GUIDELINES AND PROCEDURES IN THE

IMPLEMENTATION OF FY 2017 ASSISTANCE TO
DISADVANTAGED MUNICIPALITIES (ADM) PROGRAM
 General
Guidelines
1. Program Coverage

1,373 Municipalities
17 Regions
 TYPE OF PROJECTS

Provision of Water Local Access Roads

System Projects

Small Water
Evacuation Facilities Impounding Projects
(SWIP)
 Fund Release
The release of ADM funds shall be subject to compliance by
the LGU concerned with the following conditions:

 DILG Seal of GFH

 The assessment of their PFM Systems
and adoption of the corresponding
improvement measures
 Fund Release

BTr
Consolidate and Issue NCA to Directly downloads the
endorse to DBM endorse AGSB and fund to LGUs by
the list of eligible ANCAI to BTr issuing an ADA to
municipalities AGSB
Funds for Municipalities that fail to comply with Will inform the LGUs
Governance Conditions shall not be released. through NADAI,
cc DBM and DILG RO

If the Municipal Governments fail to comply with the foregoing

Governance Conditions by September 2017, funds shall no
longer be released.
AGSB - Authorized Government Servicing Bank
ANCAI – Advice of NCA Issued
NADAI – Notice of Authority to Debit Account Issued
Fund Management
 Fund Management
The LGU shall:

 Record the fund as Trust Fund wherein it

maintains a separate subsidiary ledger for each
project to record each transaction

 Inform the DILG-RO that funds has been recorded as

Trust Account (through letter) within 15 days after receipt
of fund

 Exclusively utilize the fund for the implementation of

the project
 Fund Management

 LGU may use the difference between the Approved Budget for the
Contract and Contract Award Price to finance additional work due
to Variation Orders

 Within 6 months after completion and turnover – any savings must

be returned to BTr. (LGU shall provide copy to DILG-RO and DBM-
RO of the said transaction)

 Upon completion, the LGU shall book the project as an asset

Project Implementation
 Project Implementation

LGU shall be accountable in the overall implementation

of the projects.

 All projects shall be implemented by “CONTRACT”.

 LGUs shall be allowed to implement projects “By

Administration” only after two (2) failed biddings and
failed negotiated bidding.
 A. PREPARATION & SUBMISSION OF DOCUMENTARY
REQUIREMENTS:
Within 2 months after receipt of the funds, the LGU shall submit to
DILG the following:

i. LCE Certification that:

a. DED and POW have been prepared in accordance with the
National standards and approved by the LCE.

b. All bidding documents have been completed and LGU is ready

to proceed with the publication of the ITB/Advertisement

c. ECC/CNC, NCIP and Water Permit applications have been

submitted to the concerned agencies

d. The site of the project has no problem on Land Ownership

and/or Road Right of Way (RROW)
i. LCE Certification that:
e. For water supply projects, the water source has been
validated by the Municipal Engineer and has been found to
be
 feasible to supply the intended beneficiaries
 potable for drinking or engineering measures have been
included in the design to make the water potable.
f. For vertical structures,
 the project site is located in a safe zone based on the MGB
hazard map; or
 engineering mitigation measures have been included in the
design to address the potential problems.

g. For evacuation centers, the design and site location are

compliant with the requirements of paragraph 9 of the
Special Provisions of Section XV of RA 10924 (GAA FY
2017).
 Paragraph 9 of the Special Provisions of Section XV
of RA 10924 (GAA FY 2017).

“In the design and construction of evacuation center, the DILG shall ensure that
the centers can withstand wind spend of three hundred (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.”
 Project Implementation
i. LCE Certification that:

h. Funds are available for the maintenance and insurance, where

applicable, once the project is completed.

i. The above documents shall be made available to the DILG

during field monitoring visits and/or as maybe requested.

ii. Project Implementation Schedule

a. The LGU shall provide DILG copy of project implementation schedule

including procurement timelines prepared by the ME and approved by
the LCE, using the template under Annex C
 B. PROCUREMENT BY THE LGU

a. All project procurement shall be through competitive bidding with

strict adherence to the provisions of RA 9184 and its 2016 Revised
IRR and GPPB Guidelines.
LGU shall use the standard bidding documents, 5 th edition for the
procurement of works issued by GPPB which can be accessed at
www.gppb.gov.ph .
b. All projects must be included in the Annual Procurement Plan

c. Upon submission of the required Certifications and documents, the

LGU shall proceed with the procurement.

d. DILG and other entities may be invited to observe particularly during

pre-bid conference and/or bid opening.

e. A duly accredited CSO representative shall be invited to sit as an

observer in the Bids and Awards Committee (BAC).
 B. PROCUREMENT BY THE LGU

f. In the event of a failed bidding, the BAC shall conduct a mandatory

review and evaluation of terms, conditions, and specifications in the
Bidding Documents, including its cost estimates.
g. The LGU shall start the re-bidding process within 5 working days
after the Head of the Procuring Entity (HOPE) has approved the
Bac Resolution declaring of a failure of bidding.
Within the same period, the LGU shall submit to the DILG-RO a
revised procurement schedule indication the revised target dates
h. In the event that the LGU will have to resort to negotiated
procurement, the negotiation shall commence within 5 days and
shall be completed within 30 days.

i. The LGU shall submit to the Local Auditor a copy of the contract and
other supporting documents within 5 days from the execution of
the contract, in accordance to COA No. 2009-001 dated 12
February 2009
 C. PROJECT EXECUTION

The LGUs shall:

a. Have the primary responsibility of ensuring the quality of works and
implement the projects in accordance with the approved designs and
specifications
b. Ensure that project construction shall commence within seven (7)
days after issuance of the Notice to Proceed (NTP)
c. Ensure that quality control and assurance are observed, and that
quality tests are conducted, and construction logbook is maintained at
the project site and shall be made available to the DILG during project
visits
d. Inform the DILG RO of any approved variation order and contract time
extension for information and monitoring purposes.
Any variation order shall comply with RA 9184. Variation Order and
contract time extension shall be approved by the LCE. If the cost of
the variation order exceeds the approved allocation for the project, the
LGU shall provide the required additional funds.
 C. PROJECT EXECUTION
The LGUs shall:
e. Incase of delay in the implementation of the project, the LGU shall
perform the following actions:
i. 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 Catch-up Plan to DILG-RO

ii. Negative Slippage of 10%

 By Contract- Issue a Final warning Letter with a
requirement for the contractor to submit 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 DILG-RO, supported by adequate
resources such as materials, workforce and equipment.
 C. PROJECT EXECUTION
The LGUs shall:

iii. Negative Slippage of 15%

 By Contract- Initiation of termination process in accordance
with Annex E of the 2016 Revised IRR of R.A No. 9184
 By Administration- Submit justification on why DILG should
not impose sanction and submit catch-up plan to DILG-RO

f. Impose liquidated damages in accordance with RA 9184

- in case the Contractor fails to complete the work within the
specified contract time and any approved time extension
 C. PROJECT EXECUTION
The LGUs shall:
g. Conduct pre-final inspection (punchlisting) upon reaching 95%
physical accomplishment. Immediately after the pre-final inspection,
the LGU shall instruct the contractor to rectify the noted deficiencies,
if any.

h. Invite DILG during pre-final inspection (punchlisting) and final

inspection

i. Ensure the following:

- Performance security by contractor is valid/updated within the
approved project duration including approved time extension;
- Warranty security by contractor is valid/updated throughout the
warranty period
- the Contractor’s All Risk Insurance is valid throughout the approved
project duration, including time extension.
 D. INFORMATION AND PUBLICITY OF PROJECTS:
a. Within a Month after receipt of the fund, LGU shall install the
community billboards within the premises of the municipal hall in
accordance with the specifications prescribed.

b. Upon mobilization, the LGU shall ensure the installation of the

Project signboard/s at each project location in accordance with
COA Circular No. 2013-004 dated 30 January 2013 and regular
updating thereof.

c. The LGU shall post in their respective website within thirty (30)
calendars 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
 The winning contractor and the detailed estimates of the bid
awarded
 D. INFORMATION AND PUBLICITY OF PROJECTS:

d. The LGU shall also post in their respective website within

thirty (30) calendar days from the issuance of certificate of
project completion the following:

i. Detailed actual cost of the project\

ii. Variation orders, if any

Project Monitoring
 Project Monitoring

a. During project monitoring , DILG shall observe the LGU’s

compliance with the following, among others:

1. All items included in the certification and project implementation

schedule submitted by the LGU.

2. 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 are in accordance with the approved Plans and Specifications
Quality test conducted and construction logbook is being maintained.
 Project Monitoring

b. DILG shall conduct site visit and spot check during project
implementation
c. A feedback mechanism shall be set up by the DILG
– to address issues and concerns
MDC MONITORING
d. Municipal Project Monitoring Committee (MPMC) shall serve as the
monitoring committee of all projects in the municipality funded by the
National Government.
3rd PARTY EVALUATION
e. DILG shall establish A third party monitoring scheme shall be
established by the DILG. (SUCs, CSOs and POs).
Project Reporting
 Project Reporting
a. LGU shall submit status report twice a month to the DILG,
through MLGOO using the prescribed template in the Annexes.
Copies of the approved SWA and SORD shall be submitted, if
requested.

b. DILG-RO shall prepare Regional Consolidated Reports, both physical

and financial accomplishments, based on the reports submitted by
the LGU..

c. DILG-CO shall prepare an ADM Project Consolidated Report based

on the Regional Consolidated Report and provide a copy to the
COA-LGS

d. The DILG shall evaluate the submitted reports submitted by LGU

to check the consistency between the reported and the actual works
accomplished. As necessary, the DILG may join inspections with the
LGU to resolve inconsistencies.
 Project Reporting
e. The DILG shall post the reports submitted by the LGU to ADM portal
f. The DILG shall conduct regular site visit and spot check during
construction of the project.
g. Upon completion of the project, LGU shall submit to the DILG the ff:
 Copy of the Certificate of Acceptance of project signed by the
LCE
 Copy of Project Completion Report
 Others, as deemed necessary
h. LGU shall submit to DBM, the Speaker of the House
Representatives, the President of the Senate of the Philippines,
and the House of Committee of Appropriation, and the Senate
Committee on Finance, either in printed form or by way of
electronic documents, quarterly reports on the financial and
physical accomplishment by the project in accordance with Special
Provision No.2 of the LGSF, FY 2017 GAA, RA No. 10924.
RESPONSIBILITY
AND
ACCOUNTABILITY
RESPONSIBILITY AND ACCOUNTABILITY

The LCE and other local officials concerned shall be

responsible and accountable for the proper disbursement
and utilization of the LGSF-ADM and for the
implementation of eligible programs and/or projects,
including compliance with pertinent provisions of RA 9184
and its 2016 Revised IRR, as well as budgeting,
according, and auditing rules and regulations.
Sanctions
 Sanctions

Projects not implemented in accordance with the

provisions of the JMC may result to the filing of
appropriate civil, criminal and/or administrative cases
against the local public officials/s concerned for acts or
omissions in relation to the performance of their duties
under the JMC.
TIMELINE FOR FUND RELEASE

Conditions Timeline

First Batch,
GFH and PFM
FY 2017 APRIL

Second Batch,
GFH and PFM
FY 2017 Second Quarter

GFH and PFM

Third Batch,
(Compliance by
FY 2017 Third Quarter
September)
THANK YOU!!!!