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I.

Rationale

Disaster occurrences in the Philippines affected the social functioning of the vulnerable individuals, groups and families. This situation requires the immediate provision of the basic necessities of life such as food, clothing, shelter, medicines, etc. In 1994, there were more or less 5 million victims of the 19 typhoons and 164 other types of disasters. Further, more than 19% of our population are in the poverty threshold thus, putting into disadvantaged situation the most vulnerable sectors of the society such as the women, children, youth and the elderly.

Cognizant of the above victims, NGOs/GOs, civic and church groups and private entities have been joining hands with DSWD by supplementing its welfare effort through solicitation of foreign and local donations. Some have turned these over to DSWD/LGUs or other NGOs, while others just distributed directly to their own identified victims. Most often, donations were received without proper cost/value causing problem in proper accounting and booking of said donation. With this problem, COA regulations require the proper accounting and booking of such donations to facilitate proper management and utilization. Hence, a systematized monetization scheme must be adapted.

II.

Legal Basis

1. Presidential Memorandum Order No. 36 dated September 9, 1992 authorizes the importation and donation of food, clothing, medicine and equipment for use in the government relief and rehabilitation programs for calamity-affected areas, subject to the provision of section 105 (1) of the Tariff and Custom Code of the Philippines. There are three (3) consignees and these are DSWD, DOH and DND.

2. Section 105 (1) of the Tariff and Custom Code as amended provides “Imported Articles donated to or for the account of any duly registered relief organization upon certification by DSWD, DECS as the case maybe” shall be exempt from the payment of import duties.

3. PMO 23, Series of 1992 provides the immediate transfer of all forfeited and/or abandoned used clothings in the bureau of Customs Custody to the DSWD.

4. Presidential Memorandum Order No. 35 dated September 8, 1992 encourages different departments, offices and agencies, including government-owned and controlled corporations to launch fund raising activities for the benefit of Mt. Pinatubo victims.

All cash contributions as well as donations in kind shall be turned over to the DSWD for eventual distribution to the affected areas.

5. DSWD Special Order No. 40 Series of 1994 has provided for the creation of a Task Force Committee to develop and implement a systematized monetizing and accounting of foreign and local commodities donated to the Department of Social Welfare and Development.

III.

Objectives

1. To set up a system of monetizing and proper accounting of local and foreign donations;

2. To ensure that all unmonetized foreign and local donations are properly recorded and recounted for.

IV.

General Policy Guidelines

1. Commodities to be monetized are as follows:


2. Monetization Task Force must be organized at the Central Office and Field Offices respectively with the following members:

Chairman	- BEA Director/ABD
Members	- BEA Technical Staff
	Admin. Service
	(Property Div)
	Finance (Accounting Division)
	Internal Audit Unit
Consultant	- Resident Auditor
	Representative
Secretariat	- BEA/VOLAGS

Chairman	- Administrative Officer
Members	- Regional Accountant/designate
	Regional Property officer/designate
	Regional Specialist on EA/ designate
Consultant	- Regional Resident
	Auditor
Secretariat	- Administrative Staff

3. Task Force shall conduct inventory and inspection of donations submitted for monetization.

4. On Foreign Donation



However, clothing materials considered as remnants but exceeds five (5) yards shall be monetized by 50% less of the local market price.

5. Used clothings received and released/distributed in bales/boxes/sacks, the basis of monetization shall be 50.00 per kilo.

6. Non-clothing donations from both local and foreign donors, monetization shall be 10% less of the local market price index provided by COA or the purchasing retail/market price.

7. To systematize monetization scheme, the following procedures are recommended:


V.

Reporting

BEA as Chairman of the Task Force Committee on Monetization shall submit quarterly reports on the receipts and utilization of monetized donations to the Secretary for her information and accounting purposes.

For strict compliance.

Adopted: 21 Aug. 1995

(SGD.) MILAGROS I. LLANES

FOR

LINA B. LAIGO
Secretary