ANNEX M

MEMORANDUM OF AGREEMENT FOR IMPLEMENTATION OF KABUHAYAN PROGRAM THRU

PROPONENT ACCREDITED CO-PARTNER/PROPONENT BENEFICIARY

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement (MOA) made and entered into by and between:

The DEPARTMENT OF LABOR AND EMPLOYMENT – REGION 5, a government office

existing by virtue of the laws of the Republic of the Philippines with principal office address at
Doña Aurora St., Old Albay, Legazpi City, represented herein by its Regional Director MA.
ZENAIDA A. ANGARA-CAMPITA,CESO III, and herein referred to as “DOLE-REGION 5”;

and

The LOCAL GOVERNMENT UNIT CATAINGAN,MASBATE with principal addresses at

POBLACION CATAINGAN, MASBATE represented herein by its Honorable Mayor ATTY.
FELIPE L. CABATAÑA, herein referred to as “PROPONENT ACP” or “PROPONENT
BENEFICIARY”.

WITNESSETH

WHEREAS, the current Administration thrust is to immediately implement poverty reduction

projects in all regions and promote inclusive economic development

WHEREAS, the Department of Labor and Employment (DOLE) is mandated to promote gainful
employment opportunities, develop human resources, protect workers and promote their
welfare, and maintain industrial peace;

WHEREAS, the DOLE endeavors to contribute to reducing poverty and vulnerability to risks of
the poor, vulnerable, and marginalized workers by providing them access to livelihood
undertakings;

WHEREAS, the DOLE Integrated Livelihood Program or KABUHAYAN Program is being

considered as an important strategy towards transitioning informal workers to formal;

WHEREAS, the DOLE-REGION 5 has been given responsibility to directly implement the
approved Livelihood (Kabuhayan) Project entitled “Provision of DOLE Kabuhayan Starter Kit
(DKSK) to Qualified Beneficiaries in the Municipality of Cataingan, Masbate ”, in accordance with
the Department Order No. 173, series of 2017;

WHEREAS, DOLE-REGION 5 shall implement livelihood formation in LGU-Cataingan, Province of

Masbate.

WHEREAS, the DOLE-REGION 5 has been given the responsibility to implement the DOLE
Livelihood (KABUHAYAN) Program.
WHEREAS, DOLE-REGION 5 shall implement livelihood formation in LGU-Cataingan, Province of
Masbate, in partnership with the Local Government Unit of Cataingan, Masbate, as accredited
co-partner.
WHEREAS, this partnership is vital to ensure the successful implementation of the said projects
and achieve their desired social outcomes;

WHEREAS, the PROPONENT has been accredited by DOLE to implement the proposed project
of LGU-Cataingan, Masbate, particularly the DOLE KABUHAYAN STARTER KIT (DKSK) located in
LGU- Cataingan, Masbate.

NOW, THEREFORE, for and in consideration of the foregoing premises, the parties hereto have
agreed to enter into this Memorandum of Agreement under the following terms and
conditions:

I. RESPONSIBILITIES OF THE PARTIES:

A. The DOLE-RO shall:

1. Provide the fund assistance for working capital to the PROPONENT of the approved project
amounting to NINE HUNDRED EIGHTY ONE THOUSAND TWO HUNDRED SEVENTY PESOS
ONLY (Php 981,270.00) to be used exclusively for the implementation of the project.
Funding assistance may be released in full or in tranches depending on the nature and the
need of the project. For releases in tranches, schedule and amount of releases shall be in
accordance with related provisions in COA Circular 2007-001;

2. In case the fund assistance includes allocation for acquisition of equipment, purchase of the
necessary equipment indicated in the approved project proposal should comply with RA
9184 (Government Procurement Reform Act) and government accounting and auditing
rules and regulations. All equipment purchased shall be the property of DOLE, to be turned
over to the proponent-beneficiary after one (1) year from date of purchase through a Deed
of Donation, provided the project is still in operation. If a project ceases to operate within
the 1-year period, the PO/FO shall recommend to the Regional Office that said equipment
be pulled-out from the proponent-beneficiary.

3. The DOLE-RO 5, together with the PROPONENT, shall conduct regular inventory of the
equipment to determine their physical condition;

4. Provide orientation/briefing to PROPONENT prior to issuance of fund assistance to ensure

that both the technical and administrative concerns relative to the Project are adequately
addressed;

5. Provide technical assistance to the PROPONENT whenever necessary;

6. Monitor and inspect the project implementation together with the proponent ACP on a
periodic basis; verify the financial records and reports of the PROPONENT;

7. Adhere to the accounting and auditing requirements of fund transfers to the Proponent per
COA Circular 2007-001 and 2012-001 such as, among others, maintenance of subsidiary
ledger of cash transferred pertaining to the project, drawing Journal Vouchers to take up
financial reports of PROPONENT as well as taking up liquidation and COA CSBs issued;

8. Demand the refund of unused funds or savings after project completion and the refund of
any disallowed amount as a result of financial audit by the DOLE and/or the Commission on
Audit, as well as issue an Official Receipt (OR) for unexpended balance and the refunded
disallowance remitted by the PROPONENT ACP;

9. Issue Certificate of Completion of Procurement upon submission of complete liquidation

reports
10. Institute appropriate actions against the concerned PROPONENT ACP which may include,
among others, suspension or termination of the project in case of violation of the provisions
of this MOA and/or legal action for misuse of approved and released funds, the legal costs
of which shall be shouldered by the PROPONENT ACP.

B. The PROPONENT ACP shall:

1. Implement the approved livelihood project proposal which form as an integral part of this
Agreement, in accordance with the approved project objectives, standards, systems and
procedures for project implementation, time schedule and the project cost estimates

2. Procure the necessary raw materials, equipment, and tools and jigs indicated in the
approved project proposal in accordance with government accounting and auditing rules
and regulations and RA 9184, as applicable, within 3 months from receipt of project funds

3. Provide equity or counterpart which is equivalent to at least twenty percent (20%) of the
total project cost in the amount of FOUR HUNDRED THIRTY NINE THOUSAND TWO
HUNDRED PESOS ONLY (Php 773,060) (Php 57,620.00 – LGU’s Equity/Counterpart + Php
715,440.00 - Beneficiaries’ Equity) for the supervision and monitoring of the project or for
other needs related to the project;

4. Adhere to DO No. 173-17, the Revised DILEEP guidelines and other relevant government
regulations;

5. Deposit the check received for the purpose to the authorized depository bank of the
Proponent ACP. It shall issue corresponding Official Receipt (OR) to acknowledge funds
received from DOLE;

6. Utilize the amount received from DOLE solely for the above-mentioned approved project
and/or for the purpose and line items as specified in the approved project proposals, In no
case shall the funds be used for payment of additional compensation or in the creation of
new positions or augmentation of salaries of regular personnel of proponent ACP officers
and members/employees, or for other benefits in the form of allowances, incentive pay,
bonuses, honorarium or other forms of additional compensation, and for purchase of motor
vehicles, for money market placement, time deposit and other forms of investments not
related to the project;

7. Return to DOLE any unused funds or savings upon completion of procurement of all
necessary project requirements as stated/itemized in the approved project proposal and
any disallowed amount as a result of financial audit by the DOLE and/or the Commission on
Audit;

8. Allow access to or make available all records and facilities pertaining to the project for the
visitorial audit and examination of the DOLE and/or COA authorized representative/s;

9. Create a Project Management Team and identify their respective roles and responsibilities;

10. Implement a profit sharing scheme;

11. Ensure that streamers/banners and signages bear the DOLE and DILP Logo and are
prominently displayed in the project site and training venue.

12. Ensure that product packaging/labeling shall bear the DOLE and DILP Logo indicating that it
is a DOLE - assisted project.
13. Be responsible for the storage and maintenance of the equipment. It shall secure written
approval from DOLE for transfer of any equipment from the project site to another location.
In case the project ceases to operate within 1-year period, the proponent shall notify the
DOLE regional office.

14. Keep and maintain separate Account and financial records/subsidiary records for funds
received from DOLE in accordance with generally accepted accounting principles. Funds
shall not be mingled with other funds owned and controlled by the PROPONENT - ACP.

15. Submit to DOLE the Liquidation report within sixty (60) days upon completion of
procurement of all necessary project requirements as stated/itemized in the approved
project proposal, with supporting documents and evidences like invoices, pictures, and
acceptance/ acknowledgement receipt by the beneficiaries of the raw materials, and/ or
equipment, tools and jigs, as applicable.

16. Secure prior approval of the Regional Director in case of deviation from the approved
project proposal

17. Monitor the projects and submit regular quarterly and annual progress report to DOLE
PO/FO.

II. COMMENCEMENT OF PROJECT IMPLEMENTATION

a) The implementation of the project covered by this Agreement shall start, as soon as
practicable, after the receipt of equipment and other materials needed for project
operation, subject to adjustments upon written request of ACP to the DOLE.

III. MODIFICATION/AMENDMENT AND EFFECTIVITY

a. Any modification/amendment to this Agreement shall be subject to the mutual consent

of the parties hereto.
b. Any deviation from the approved project proposal shall require approval from the
Regional Director. In case of unauthorized deviations, the PROPONENT ACP shall be
obliged to return any unutilized portion of the financial assistance without need of prior
demand from DOLE. Unauthorized deviations shall also give the DOLE the right to stop
payment of the check and/or succeeding releases covering the amount of the grant.
c. This Agreement takes effect upon signing of the parties hereto and shall remain in force
until mutually revoked by both parties.

IN WITNESS WHEREOF, the parties have hereunder affixed their signatures this ____ day of
____________ 20__ __.

DEPARTMENT OF LABOR AND EMPLOYMENT- PROPONENT ACP

REGIONAL OFFICE No. V

By: By:

MA.ZENAIDA A. ANGARA-CAMPITA,CESO III HON. ATTY. FELIPE L. CABATAÑA

Regional Director Municipal Mayor

Signed in the Presence of:

 LYNETTE H. DELA FUENTE VICENTE N. LEE JR.
Witness/OIC Provincial Head Witness/PESO Manager

Certification of Availability of Funds

ANGELICA JOY L. NAPOLIS

Chief Accountant

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF MASBATE) S.S.

BEFORE ME, in the City of ________________, this ____ day of ____________ 20__ __,
personally appeared the following:

VALID IDENTIFICATION DATE/PLACE OF

NAME
CARD/NUMBER ISSUE

MA.ZENAIDA A.ANGARA-CAMPITA,CESO III UMID: CRN-006-0009-

9636-7

HON. ATTY. FELIPE L. CABATAÑA UMID: CRN-006-0170-

5740-4

All known to me and to me known to be the same persons who executed the foregoing
instrument and acknowledged before me that the same is their free and voluntary act and deed
as well as those of the entities they represent.

Said instrument refers to a Memorandum of Agreement consisting of ____ pages

including this page of acknowledgement, signed by the parties and their witnesses and sealed
with my notarial seal.
NOTARY PUBLIC
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