PVO REGISTRATION GUIDELINES

and
PROJECT PROPOSAL FORMAT

_USA

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

Manila, Philippines
 INTRODUCTION

Thank you for your Interest In USAID's PVO Co-Financing Program. The first step Involved
participate Inthe program Isfor your organization to be recognized as a not-for-profit to
organization by the Government of the Philippines and registered with USAID. This registration
process Isneeded by USAID. - fir-' out abot it your organization: how long It has been
operation; what kind of activities i, s Involved In; and its proven ability In
to manage funds. We
cannot consider a PVO Co-Financing proposal from any group unless It Isfirst
USAID. Once registered, you will be Issued a 'Certificate of Eligibility'. Then weregistered with
will be able to
start work on possible grants for your organization.

HOW TO APPLY FOR REGISTRATION

USAID requires that you fill out the attached form and have It signed by the principal
your organization. In addition, several documents which are listed below officer of
must be submitted
along with the application. Wegannot even start the process of registratlon until
r e OQ up, If you follow these Instructions, you will save a great deal of we have all the
time and
speed up ihe registration process. If we need additional documents or clarification,
we will
contact you.
If,after you have studied this document, yot do not fully understand what Isrequired
registration, piease feel free to call or write our office: Office of Food for Peace and for
Cooperation, USAID, 1680 Roxas Blvd., Metro Manila. Telephone: 521-7116 loc. 2445/2446. Voluntary

SUMARY OF DOCUMENTS REQUIRED

A. COMPLETED APPLICATION FORM which has been signed by the principal official of
the organization, Must include evidence of board meeting; I.e., board minutes,
B. CERTIFICATE of REGISTRATION from Securities and Exchange Commission (SEC) or
with Co-Operative Development Authority (CDA) and Includes Artiles of
Incggporaton and By-Laws. The SEC (for Corporations) and the CDA (for
Cooperatives) should certify the above stated Items are true copies of the originals
with proper payment of documentary stamps.
C. INCOME TAX EXEMPTION CERTIFICATE from Bureau of Internal Revenue which has
been certified by the BIR as a true copy of the original..
D. FINANCIAL STATEMENTS audited by Independent Certified Public Accountant
(CPA) which compares the last three* years. This must Include the following: .
1. Statement that the financi~i statements have been audited In ._cpd=ng _
with qenerallyacepted auditing standards and an opinion that the
organization keeps its booksin accordance with gen-erally ac pted
gQQo4untInlg. prjnci~ples,
2. Statement of Financial Position - BalanceSheet.
3. Statement of Operations - Income Statement.
4. Statement of .SQuqre_and Use of Funds.

*Organizations which have been In existence for less than three years musi submit an
audited financial statement which covers the entre Perlod o peratlon.
E. CURRENT OPERATING BUDGET whicb-hslbeedysqerfe_ by the chief
accountant.
F. LATEST ANNUAL REPORT (narrative) of program activities.
We can only process applications for registration which are complete Inevery way;
and
cannot accept substitutions for any of he requirements. Incomplete applications will we
be
returned. Please do not send the originals.

/
 Page 1 of 3 pages

USAID PVO CO-FINANCING REGISTRATION FORM

ORGANIZATION:

MAILING ADDRESS:

ORGANIZATION's CEO: -TITLE:

TELEPHONE: - - _ FAX: DATE OF APPLICATION:

BOARD of TRUSTEES: (Please list all members. Add Pages as needed)

SALARY/ALLOWANCES*
Provided by Organization
FULL NAME ADDRESS DESCRIPTION / AMOUNT

2.

3.
4.

6.

7.
8.

9.

10.
* If a Board Member receives a salary from funds provided by your
organization, please describe if it is paid monthly or yearly and the
amount. If a board member receives an allowance from funds provided by
your organization, please describe what the allowance is for,
(transportation, general honorarium, etc.), how often lie receives it,
and the amount.

Our BOARD has met an average of ------- times per fiscal year over the
past Lillee years.

Submit evidence of board meetings (board minutes; other documentation; etc.). Li

 Page 2 of 3 pages

USAID PVO CO-FINANCING REGISTRATION FORM

NAME AND SALARIES OF TOP FIVE PAID POSITIONS:

FULL NAME POSITION SALARY / ALLOWANCE

4.

5.

COMPARATIVE NET ASSETS*

(Total Assets - Total Liabilities) of the PVO for the last three years:

YEAR AMOUNT OF NET ASSETS

2.

A PVO applying for registration must have a minimum NET ASSETS of P100,000.

COPIES OF THE FOLLOWING DOCUMENTS ARE ATTACHED:

B. CERTIFICATE of REGISTRATION from: l

Securities and Exchange Commission (SEC) or with
Co-Operative Development Authority (CDA) and includes l -
Artic.les of Incorporation and By-Laws.
The SEC (for Corporations) or the CDA (for Cooperatives) should
certify the above stated items - every page - are true copies of
the original with proper payment of documentary stamps:
YES________ NO- -

C. INCOME TAX EXEMPTION CERTIFICATE from: I_

Bureau of Internal Revenue (BIR) (Not a Donee
Certificate).
The BIR should certify the above stated item is a true copy of the
original: YES___ ---... NO_

D. FINANCIAL STATEMENTS audited by:

Independent Certified Public Accountant (CPA) which I_
compare, the last three* fiscal years.
*Organizations which have been in existence for less than three
years must submit an audited financial statement which _covers the
entire period of operation.

When submitting financial statements which cover the past three fiscal
years: you will need to submit one or two statements depending upon how
your staleements are presented.
 Page 3 of 3 pages
USAID PVO CO-FINANCING REGISTRATION FORM
a. One statement Is needed if: you have one audited statement
which compares
the previous three fisc-a.l yvi5.
b. Two staements 4re needed if: as with most standard statements,
current fiscal year and one previous fiscal year are compared. only the
You will need
to submit the most recent audited comparative statement and
the audited
comparative statement from the previous fiscal year to cover
three fiscal
years.
1. A certification by an Independent CPA* that the financial
statements have been audited in a_ccordanC with generally
___e~ptp_ _uddling jtandayda; an opinion that those statements
fairly rp_sent he financial position of the organization;
and
that the results of operations and changes in financial
position of the organization are in ccordance with generally
• gp~teac__cQuntin_g-pnincjilpe which have been consistently
applled.
• An Independent CPA is one not associated with your organization
In any
way (as an Official, a member, a beneficiary, or a relative).

2. Statement of Financial Position - Balance Shee.

3. Statement of Operations - Income Statement.

(Must identify Fund Raising and Administrative Expenses.)
i
4. Statement of purQres and_e of Funds.
(Must identify Private Contributions, Private Grants,
i
Revenue, & Govt. Grants.)
NOTE: Adequate disclosure is required: notes, statements and/or schedules.
E. CURRENT OPERATING BUDGET Is enclosed for the year _

detailing sources of income, administrative expenses, program

costs
and has been dulsy_1n ed by the authorized official of the
organization who prepared the statement.

F. LATEST ANNUAL REPORT is enclosed for the year

include a narrative of program activities, In-kind support
It
of the
l
organization, and staff time contributed.
I, __, certify
informption stated herein and in the attached documents are that all of the
true, correct and
complete to the best of my knowledge, and contain no material
misstatement or
omission. I further certify that our organization has also
complied with all
the requirements of the Securities and Exchange Commission
and the Bureau of
Internal Revenue and that no USAID grant funds will be used
to pay taxes
assessed on our organization to the Government of the Philippines.
I
understand that any false or misleading statement or omission
of information
which makes any statement misleading will lead to the deniA!
or termination of
the registration status and the termination of any subsequent
grants awarded
by USAID. I also understand that beforp the award of any grant,
USAID will
conduct a pre-award financial review of the statements and
any of the above
documents, and that at any time USAID may request additional
documents.
DARE: TSIGNATURE:
TITLE:"__ _ _ _ _ __ _ _ _ _ _ _ _
 USAID PVO CO-FINANCING PROGRAM
PROJECT PROPOSAL FORMAT

Projects can only be funded when an organization has become provisionally registered.

At that time a proposal can be submnittcd to USAID and will compete against all other proposals
submitted by those oraanizationF which are duly registered.

Please note that registration does not mean automatic project funding. Not all projects proposals
submitted can be funded through the PVO Co-Finance Program. Only a limited number will be
selected for funding from among the many submitted. The total number of projects funded will
depend upon the budget of the Co-Finance Program.
 COVER SHEET

A PVO CO-FINANCING PROJECT PROPOSAL

PRJECT_TITLE__ ...
(THIS SPACE FOR USAID USE:
PVQ NAME AND ADDRESS •_:

' TELEPHONE: _•:

_ PVO DIRECTOR: _•:

• rI.TLE .... •___ •_

S_UP-GRANTEE ORGANIZATION AND ADDRESS:

* (IF NO SUB-GRANTEE IS INVOLVED, STATE NONE)

' SUB-GRANTEE ORGANIZATION DIRECTOR ...... _•

_TITLE . . . . . .TELEPHONE

; PROJECT MANGE_R.._..
"__

ADDRESS.-
..... _"

__CO-OPERATING GROUPS__

" DATE OF PRESENTATION TO USAID: • • •

* TOTAL PROJECT :
•_COST_ : $.
.. ..... _S us _-___P _ __
• TOTAL USAID • • TOTAL COUNTER-: *

* REQUEST : . PART FUNDS . $. P •

• PROJECT COVERAGE AREA '

PROJECT SUMMARY :

•/
 USAID PVO CO-FINANCING PROGRAM
PROJECT PROPOSAL FORMAT

A. COVER SHEET

Fill In the information requested In the cover sheet.

If a sub-grantee is involved, fill in the information concerning this

organization. If no sub-grantee is Involved, state none.

Grant period refers to the proposed number of years of USAID funding.

Project Coverage Area means the barangays, towns, and provinces where
the actual beneficiaries reside and where the project activities will
take place.

Project Summary should be a very brief description of the project.

B. TABLE OF CONTENTS

Provide a table of contents. List the appropriate pages. Add titles

and pages of additional sections and annexes.

C. INSTRUCTIONS FOR PREPARATION OF MAIN ELEMENTS OF THE PROPOSAL (PLEASE

LIMIT TO TEN (8 x 11) SINGLE-SPACED TYPED PAGES.

Initial Appraisal of proposals.

1. Does the concept make any sense?

2. Does the proponent have clear and well-defined ideas (i.e., purpose)
of what it Is they wish to accomplish?

3. Does the proponent know how they intend to accomplish the purpose of
their project and do they really understand all the steps and
problems involved?

4. Is the proposal cost effective? This can usually be determined by

signifying and dividing the number of direct beneficiaries into the
total cost (USAID and PVO counterpart) of the project which gives
the beneficiary per capita cost. Indirect beneficiaries should also
be noted, but NOT included in the per capital cost.

5. Is the proposal financially, economically, technically, socially,

administratively, environmentally and otherwise feasible?

6. Does the proponent have the capability to carry out the project -­
that is, does the proponent have the managerial, technical,
financial and other resources required to carry out their end of the
bargain.

/
 7. Is the proposal presented in a coherent manner and in accordance
with the format prescribed by USAID.
PROPOSAL FORMAT DESIGN AND FORMAT (Numbering of articles and sections is the
format used in the actual project agreement).
I. PROJECT BACKGROUND (i.e., what is the context?

Section 1.1 Problem

The problem that the project proposal purports to address must be clearly
defined and fully explained in a direct and succinct manner. In summary,
this section must demonstrate clearly that the project proponent has a sound
understanding of the problem that their proposal intends to address.
Indications that the proponent does not really understand the problem would
normally be a good reason to disregard further consideration of a project
proposal. If the proponent really understands the problem, this section can
usually be set forth in a single succinct paragraph.

Section 1.2. Baseline Data

The following examples are illustrative only. These are not inclusive and
should be used only as may be appropriate:
a. Explain specifically where the project is to be undertaken.
b. Describe briefly the demography of the area and the condition of the
people, particularly the targetted beneficiaries.

c. Describe briefly the tcpography of the area.

d. Describe briefly the economy of the area and its condition.

e. Describe briefly the role and participation of the beneficiaries.

Section 1.3 Administrative Capabi 1ity

Explain briefly what work the PVO has accomplished to date and such other
evidence that demonstrate that the PVO has the capability to properly manage
the grant and undertake the subject.

II. PURPOSE, OBJECTIVES AND OUTPUTS

Section 2.1 Purpose

The purpose should describe accurately and realistically the end result to be
attained (through the project) by the end of the project. The purpose can
and should be set forth succinctly in one sentence. If not, the proposal is
probably too vague, too big, too complex or otherwise infeasiule.
Section 2.2 Qbjjectives
Most, if not all, projects have several objectives which must be attained in
order to accomplish the project purpose, and usually can be set forth in one
or two sentences.

Section 2.3 Outpiuts

This should consist of a listing of the specific targets which must be met in
order to attain the project's objectives and purpose. Outputs should be set
forth in their order of importance, and should be both quantified and
qualified to the extent possible. Outputs should consist of major realistic
targets -- not petty details -- and should not be confused with
implementational steps or other matters. If the targets in their totality do
not add up to attainment of the project's objectives and purpose, the project
is poorly designed. As such, the project will inevitably fail to attain its
purpose. Proponents are also cautioned that they should not stretch
themselves too far in setting their outputs which should be achieved within 2
or three years.

Section 2.4 ProjectAnalyses

Project analyses are required for the purpose of determining the

cost-effectiveness, feasibility, suitability and acceptability of undprtaklng
a proposed project. However, the requirements for subproject proposal
analyses should be commensurate with the substantive importance and scope of
the project. Other than the financial/economic analyses which must be
prepared in accordance with the format prescribed, all other required
analysis should be presented in a succinct narrative not to exceed one-half
page unless there are compelling reasons to present more than the essential
information required. These analyses should be included in the main body of
the project proposal as part of Article II (Purpose, Objectives and Outputs)
immediately following Section 2.3 and be presented in the sequence shown
hereunder or set forth as an Annex.

Financial /Economic Analysis

The purpose of financial/economic analysis is to determine that the proposed

project will be financially and economically viable in the sense that It will
provide cost-effective benefits to the recipients; that the projected costs
of the project can be financed by the proponent and participating
organizations; and that the project will be socially profitable.

1) Financial Analysis:

For projects involving individual or qroup enterprises, it is critical

to assess whether they will be profitable for individuals or enterprises
undertaking them. Just how elaborate the financial analyses must be for
a particular project will depend upon the organization of the project
and its compiexity.
 The most common tool used in analyzing the financial impact of an
activity is the projected income statements. Sample financial and
economic forms are in Attachment 2. Suggested income statement formats
for agricultural and non-agricultural income generating project (IGP)
activities are presented on the first portion of Forms 1 and 2. These
forms should be filled out for each type of enterprise or activity that
will be financed through the IGP. A cash flow analysis is required for
all types of projects, whether IGP or non-IGP, involving significant
working capital requirements, credit assistance and sinking fund plans.
It may be prepared for the individual project participants, a group of
project participants such as a cooperative, and for the PVO itself.
2) Economic Analysis:
The purpose of the economic analysis is to determine whether a project
as a whole is worthwhile for the country, i.e., whether the outputs or
benefits from a project are sufficiently valuable as to warrant the
expenditure of scarce resources. Where outputs are easily evaluated in
monetary terms, economic analysis provides a measure by which to
evaluate and compare projects.
An economic analysis differs from a financial analysis in three
important ways: viewpoint, valuation of costs and benefits, and what to
count. In terms of viewpoint, an economic analysis looks at cost and
benefits in terms of the country or society rather than the narrow focus
of financial analysis which solely on the expenditures and receipts of
the entrepreneur. Hence, the economic analysis does not consider
transfer payments such as interest payments and taxes as costs.
However, it does consider even unpaid family labor as having a cost.

3) Credit Project:
In addition to the minimum requirements listed in Section 1 and Section
2 (if applicable), any proposals with credit components must also
include a summary of the credit procedures which will be employed and an
explanation of how these comply with USAID's credit policy. The major
purpose of USAID's Mission Intermediate Credit Policy is to ensure that
loan funds are not decapitalized, but that they can be sustained for
further lending activities. (See USAID's Mission Intermediate Credit
Policy).

a. Technical Analysis:
The purpose of this analysis is to determine the technical feasibility
of a proposal. Describe the technology to be used and explain the
feasibility of its application within the context of the project.
b Social Soundness Analysis:

The purpose of this analysis is to determine the soclo-cultural

feasibility of a proposal. Describe the soclo-cultural context/
setting, identify the direct and indirect beneficiaries, explain the
context of beneficiary participation, access the potential impact of
socio-economic forces on implementation and summarize the overall
soclo-cultural impact on the project area.

c. Administrative Analysis:
The purpose of this analysis is to determine whether the project
proponent has the administrative capability to conduct the proposed
project. Describe and assess the administrative capability of the
grantee to manage and implement.
d. Environmental Analysis:

The purpose of this analysis is to determine whether the project will

have harmful, neutral or beneficial effects on the local environment.
O/FFPVC has increased the emphasis on project environmental concerns
which is one of the new strategies of the PVO Co-Financing III Project.

III. IMPLEMENTATION PLAN

Section 3.1 Implementation

An implementation plan of a project is a description of significant actions

(not details) require' to attain each of the project's stated objectives. In
other words, it is a step-by-step plan for getting from where we are to where
it is the project is designed to take us. Thus, who does what, when, where
and how must be fully described and explained. Each action listed must be
directed effectively at one or more of the projects' specified objectives.
Significant actions should be set forth chronologically and logically in a
manner which is keyed to each specified objective. An implementation plan
should also be set forth as succinctly as possible and not be shrouded In or
convoluted by unnecessary verbage. (See PVO Form No. I on page 85 of
"Interpreting Your Grant Agreement" manual).

Section 3.2 [onitoring and Evaluation

Monitoring and evaluation are integral elements of all projects and must
therefore be adequately planned and incorporated into the design of
projects. Monitoring and evaluation are functions that overlap in the sense
that they rely on much the same information and because both share a common
objective -- that is, to improve the chances of project success. Monitoring
differs from evaluation in that it is a routine ongoing function which
involves the continuous or periodic collection of information on factors
which influence the project's progress and schedule. Evaluations, on the
other hand, are more concerned with the viability of a project and as such,
they are conducted only a few times (e.g., at key junctions) over the
project's life.
 Monitoring

Monitoring is the tracking of the project environment and its

activities. Monitoring is concerned with critical steps in project
implementation and influencing their successful accomplishment on a
day-to-day basis. In this sense, the Project Manager generally follows
all aspects of project implementation and keeps current information on
the progress of the project. Knowing what a project's plan is; when
activities are departing from the intended course(s); and having the
information at hand which can be used to make corrective decisions are
all part of tile Project Manager's monitoring responsibilities. He/she
is thus responsible for establishing a suitable project monitoring
system and operating it effectively. Grantees must, of course, monitor
their projects on a day-to-day on-site basis.

EvaI uat ion

Evaluation is the general process undertaken to analyze and assess tile

performance an( results of projects. Evaluations assess whether planned
results are being achieved and what impact, intended or otherwise, a
project is having on its environment. The validity and relevance of
hypothesis concerning performance and impact, together with assumptions
about internal and external factors, are normally examined in the course
of an evaluation. The purpose of evaluation is to provide an objective
and rational basis for making decisions about projects. Normally,
evaluations are planned and undertaken to provide information that will
be used in making specific or fairly limited sets of decisions. Plans
for evaluations and evaluation documentation should, nonetheless,
recognize that information secured to support one type of decision may
be usefully in making other types of decisions as well.

Section 3.3 Susto.inability

Sustainability is the capacity of the project to maintain its existence and

activities beyond the term of the grant agreement. Therefore, it is
necessary to explain in this section how and by what means the activities
and/or benefits of the project will be continued. This necessitates that tile
PVO engage in thoughtful long-term planning if sustainability is to have any
meaning. This is a weakness in many of our projects and it is an area that
the USAID's Project Committee members and clearing offices are paying
increasing attention.

Section 3.4 Assumptions

This item sets forth those key factors which are beyond the control of the
PVO, but which must exist or come into being before the project purpose can
be attained. Some examples found in many proposals are:

a. The local security situation will remain stable;

b. Local government officials and/or others will cooperate with the PVO and
in some cases, provide certain kinds of support or other inputs; and

c. Climatic conditions will be reasonably normal.

IV. BUDGET
This part of the budget consists of standardized language for items Section
4.1.1. thru 4.1.6. Section 4.1.7. normally sets forth a summary budget for
the project. The detailed budget must be included as an attachment to the
proposal and the Grant Agreement. Budgets should be calculated for the
entire life of the project and include all the costs of undertaking the
project -- not just those of the grantee which is requi red to provide
counterpart in cash and/or in kind. Costs are defined as the accrued value
of goods and services as they are procured (goods) or actually performed
(services). Costs should not be confused with disbursements which relate to
the payment of bills. The budget breakdown should be in accord with the
following applicable inputs/components. All sources of funds (cash/in kind)
including AID, should be shown separately denominated in pesos, and
identified within each of the major project input/cost components: (See
Attachment 1.)

Section 4.1 Budget Summary

"Budget Breakdown": List the totals from the various schedules for each
year of the project. These totals must match the attached schedules
exactly.
"Project Beneficiaries": Estimate the number of individuals who will be
directly and indirectly affected.

"Cost per Beneficiary": Divide the "Total Project Cost" by "Number of

Beneficiaries".

Section 4.1.2 Schedule_ 1 (Personnel)

Use employee titles consistent with job descriptions. Indicate whether full
or part-time. Indicate whether employee will be U.S. technicians, third
country personnel, or local personnel. Figure fringe benefits and indicate
the formula used on attached worksheet. Transfer the total amounts of
benefits from worksheet to Schedule 1.
Section 4.1.3 Schedule 2 (Commodities and Equipment)
Fill in line items, quantity and total. Indicate whether commodities will be
procured in the 'I.S. or locally.
Section 4.1.4 Schedule 3 (Evaluation)
Describe in detail the funds needed for evaluation based on the evaluation
plan in Section III B of the proposal.
Section 4.1.5 Schedule 4 (Administration)

Fill in line items, quantify and total. Administration costs include

indirect costs to the project such as office rent, supplies. etc. Note that
administrative costs may not exceed 20% of the total project costs.

Section 4.1.6 Schedule b (Training - short term, local training)

Includes seminar fees, board & lodging (if applicable) of participants,

training materials, resource persons, etc.

Section 4.1.7 Other Direct Costs

Usually are those costs directly allocable to the project, but which can not
be charged to other budget line items. These may consist of such things as
office supplies, reproduction, publications, film, etc. USAID approval is
required prior to expending any funds from this line item; otherwise, it will
be disallowed. If Other Direct Costs are charged to USAID, they should not
exceed 10% of the total USAID contribution.
Section 4.2 Preparation of Costs Estimates (and how to put value on
counterpart)
The preparation of costs estimates should be undertaken concurrently with
other input and output design tasks because the cost of adopting a particular
course of action may affect its feasibility. The difficulty of preparing
cost estimates vary with the number and type of elements to be included in
the project. No matter what the degree of difficulty, great care must be
taken to arrive at realistic source and cost estimates since financing cost
overruns can cause delays and/or operational problems. Timely and accurate
costing can thus be crucial to project success.

Section 4.3 isting. Prepare a realistic list of inputs, probable

source(s) of supply and then a "base cost" estimate; i.e., an estimate using
current market prices at the time of preparation. The following tools are
available for estimating costs:

a. Personnel, consultant or similar services, experience with recent pay

scales or contracts of like nature can be used. Such pay scales or
contracts should provide cost per person/month or person/year. The
budget for such items as allowances and travel costs should be figured
separately for each year during which purchases are expected to be
made. If calculated in this manner, the cumulative escalation allowance
is applied to those purchases which are to be made during that
particular year in the project schedule. This is usually more accurate
than applying an "average" rate to the entire base estimate for all
years in which purchases are to be made and is easier to make cost
adjustments when assessing or recalculating for time delays later in the
project implementation period.
 b. Materials and Equipment - Imported or locally purchased, the cost can be
based on recent experience as it is usually available from government
agencies and local commercial sources.
c. Provide for two types of contingency allowances: one to account for
accidental omissions, erro;'s in estimating the quantities of commodities
or number of persons/years needed (in construction projects called
"physical contingencies"). Estimating the physical contingency
allowance is a matter of experience and judgement. Such estimates
should take into consideration the reliability and level of specificity
of information used in preparing the base estimate. The physical
contingency is usually expressed as a stated percentage of the base
estimate and should not be less than 10 percent. Although estimating
allowances to be made for cost escalation also involves judgement, it
requires, in addition, an estimate of the time at which contracts for
goods and services will be concluded and/or costs thereunder fixed.
First, the annual rate(s) of inflation must be estimated for the
period)s) during which purchases will be made. These estimate should be
made separately for foreign exchange purchases and local costs. The
estimate of such rates can be based on general economic and commercial
forecasts for the areas to be used as sources of procurement. At best,
the estimated inflation rate will be an educated guess, particularly if
project implementation stretches over a lengthy period. The escalation
factor is then applied to the adjusted base estimate and the ralculated
amount added to the base estimate. The rate(s) used should be
explicitly identified. In large projects, it is advisable to calculate
the training and other direct costs such as construction, etc. Both a
summary budget and a specific schedule are required.
V. WHAT AID FUNDS MAY NOT BE USED TO FINANCE

Section 5.1 Restricted Commodities

Some commodities may be financed by AID only if certain conditions are met.
These "restricted commodities" Include the following:

a. Agricultural commodities

b. Motor vehicle

c. Pharmaceuticals

d. Pesticides
e. Rubber compounding chemicals and plasticides

f. Used equipment

g. Fertilizer
Section 5.2 Prohibited Commodities
AID financing of certain other commodities is normally prohibited
or
limited to very special cases. These prohibited commodities Include the
following:

a. Military equipment

b. Surveillance equipment
c. Commodities for support of police and other law enforcement activities

d. Abortion equipment and services

e. Luxury goods and gambling equipment

f. Weather modification equipment.

 Attachment 1
PVO Proponent:

Proposal Title:
PVO Co-Financing Proposal Form Page

BUDGET SUMMARY: _ $1 U.S.

TOTAL COST OF PROJECT : TOTAL REOUEST USAID : TOTAL COUNTERPART

:-US DOLLARS . US DOLLARS : US DOLLARS
PESOS : PESOS " PESOS

BUDGET BREAKDOWN

# SCHEDULE : USAID -COUNTERPART : TOTAL

:1. Personnel •_ •_: _:
Equipment and
2. Commodities ....

:3. Evaluation • :_:__

:4. Administration: •_• •

:5. Training•
Other Direct
:6. Cost

TOTALS
BUDGET GUIDELINES

ITEM GUIDELINE ACTUAL

_PERCENT ADMINISTRATIVECOST -

USAIDTOTAL PE*RCENT____ 75% ,Maximum-of

U R TOTAL PERCEN.T__ _ Maximum of.25%_ __

NUM1BER OF BENEIFICIARIES____-______

COST PER BENEFICIARIES

 PVO:
SUBPROJECT:
SCHEDULE #1 PERSONNEL
QUANTITY TITLE OF EMPLOYEE YEAR ONE YEAR TWO YEAR THREE
Sal /Mo. No. of Mos. USAID PVO TOTAL
USAID PVO USAID PVO USAID PVO

FRINGE BENEFITS FROM SCHEDULE I

TOTALS
t
SCHEDULE 1A FRINGE BENEFIT WORKSHEET
PVO:
METHOD OR FORMULA USED -
S

TITLE OF EMPLOYEE Quantity i Gross Sala COLA SSS PAG-IBIG 13th Month,
SUBTOTAL TOTAL

TOTALS
 PVO:
SUBPROJECT:
USCHEDULE #2: EQUIPMENT AND COMMODITIES I
QUANTITY
YEAR ONE
USAID PO
YEAR TWO ] YEAR THREE [ TOTAL
USAID PVO J JSAIDJ PVO USAID 1_PVO

TOTALS _
I I 1

zn.
 PVO:
SUBPROJECT:
SCHEDULE #3: EVALUATION YEAR ONE YEAR TWO
QUANTITY YEAR THREE TOTAL
DESCRIPTION USAID PVO USAID PVO USAID PVO USAID PVO

TOTALS [ I _ _
 PVO:
SUBPROJECT:

QUANTITY! SCHEDULE #4: ADMINISTRATION

DESCRIPTION YEAR ONE YEAR TWO YEAR THREE TOTAL
USAID PVO USAID PVO USAID PVO USAID PVO

_ _ _ _ 1
__ _ _ _ _

T O TA LS _ _ _ I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
 PVO:
SUBPROJECT:
SCHEDULE #5: TRAININGS YEAR ONE YEAR TWO YEAR THREE TOTAL
QUANTITY DESCRIPTION USAID PVO USAID PVO USAID PVO USAID PVO

TOTALS _