Supreme Court E-Library
Information At Your Fingertips


  View printer friendly version

(NAR) VOL. 6 NO. 4 / OCTOBER - DECEMBER 1995

[ NAFC MEMORANDUM NO. 12, s. 1990, June 01, 1990 ]

REVISED LEAD/BUKLOD YAMAN GUIDELINES



You are hereby instructed to comply with the revised LEAD/Buklod Yaman guidelines on fund disbursement and management of rollover funds. Enclosed also are the revised Project Finance Agreement* for income-generating and institutional development projects as of June 1, 1990. All other LEAD/Buklod Yaman guidelines not explicitly stated are deemed applicable.

This order takes effect immediately and shall supersede all previously signed Memorandum Agreement and Project Finance Agreement found inconsistent herewith.

Please be guided accordingly.

Adopted: 01 June 1990

(SGD.) SENEN C. BACANI
Secretary, Department of Agriculture and
Chairman-Coordinator, NAFC

Revised Guidelines on Lead/Buklod Yaman Fund
Disbursement and Management of Rollover Funds

I.
Approving Authority and Fund Release

A. Regional Decentralized Fund — the approving authority level for the utilization of the Regional Decentralized Fund (RDF) by the Regional Directors (RD), Regional Agricultural and Fishery (RAFC) Chairmen, and Officers for Regional Agricultural Development (ORAD) shall be modified as follows: (a) projects costing P 100,000 and below shall be approved by the RD with the RAFC’s concurrence, and (b) projects costing P 100,001 to P 150,000 shall be approved by the ORAD with the RD’s and RAFC’s concurrence. These projects shall be covered by Project Finance Agreements (PFA) with the DA Regional Office (RO) responsible for project fund releases.

B. Central Fund — The National Agricultural and Fishery Council (NAFC), through its Directors, shall approve projects costing P 150,001 to P 500,000. Thus, the RO shall submit all relevant documents to the NAFC. In order to facilitate fund releases, NAFC shall initially make use of the RDF and the regional disbursement system. Upon NAFC’s approval and advice, the RO shall execute a PFA with the Proponents and shall release the amount from the RDF. This procedure will ensure that all proposals are coursed through the RO, and only PFAs are executed between the RO and Proponents. The NAFC shall then replenish the amount to the RO; correspondingly, a Memorandum of Agreement (MOA) will be executed between the RO and NAFC. The MOA shall only be used between the NAFC and ROs. NAFC shall not execute PFAs.

C. Training Fund — Five percent (5%) of the fresh funds (1990 Funds) shall be earmarked for use as training funds. Projects proposals for training activities shall be required for submission to and approval by the RAFC in order to facilitate funding of these RD projects. Beyond the 5% allocation, RAFC endorsed training proposals shall be approved and funded by NAFC.

D. Establishment of LEAD/Buklod Yaman Accounts — The proponent shall open a joint account with the PAO and RD in the local authorized depository bank upon receipt of check. Although the account is in the names of the proponent, PAO and RD, the signature of any of the two parties involved will be sufficient to facilitate account transactions.

II.
Next-In-Line Beneficiaries

The next-in-line beneficiary (NILB) concept shall be phased-out because of the time element involved in the replenishment of start-up fund, given the alternative that NILBs can submit new proposals for approval and immediate funding. Thus, current NILBs shall be queued based on the effectivity of the MOAs/PFAs they entered into. These NILBs with approved project proposals for funding shall have priority access to fresh funds or rollover funds, whichever becomes available first, for the same, spin-offs or new projects.

All previously-funded IGPs shall be reviewed to facilitate the masterlisting of all NILBs and project proposals. Based on the date the MOAs were executed, the list shall be prepared chronologically.

III.
Rollover Fund (2nd Generation Fund) Management and Utilization

A. Rollover Fund (ROF) Sharing — All ROFs whether from NAFC Centralized, Special or Regional Decentralized Funds, shall be maintained as a savings account under the account name, “LEAD/Buklod Yaman Rollover Fund” at the DA Regional and Provincial Offices on a proportionate basis. The Provincial Office (PO) shall collect the ROFs. Seventy percent (70%) of the ROF shall be maintained in the joint savings account of the PAO and PAFC Chairman, while thirty percent (30%) shall be remitted to the joint savings account of the RD and RAFC Chairman, both under the account name, “LEAD/Buklod Yaman Rollover Fund”. Remittance shall be made each time the fund is replenished based on the approved replenishment schedule. Rollover funds for previous releases deposited in the account of the RO shall be divided proportionately (70:30) between the PO and RO. This will involve cross transfers to or from the RO and PO. The ROF shall be deposited in a bank acceptable to the RAFC/PAFC as a savings account.

B. ROF Utilization

B.1 Training and Operational Fund — From the total amount of ROF, two percent (2%) shall be utilized as administrative and operational fund while three percent (3%) shall be allotted for beneficiaries’ training. However, this shall be allowed only after the ROF has been apportioned accordingly to the regional and provincial accounts. The interest earnings of the ROF shall likewise be used for administrative expenses.

B.2 Project Fund — the ROF shall be used to support LEAD/Buklod Yaman projects for Regional/Provincial approval and funding. The Provincial ROF shall be used to fund projects costing P 50,000 and below. The provincial Agricultural Officer with the PAFC’s concurrence shall approve the project, with the PO responsible for fund releases.

On the other hand, the Regional ROF shall be utilized for projects costing above P 50,000 but less than P 150,000. Projects costing P 50,001 to P 100,000 shall be approved by the RD with the RAFC’s concurrence. Projects costing P 100,001 to P 150,000 shall be approved by the ORAD with the RD’s and RAFC’s concurrence. Project funds shall be released by the RO.

IV.
Source of Funds

All fresh LEAD-Buklod Yaman project funds shall be classified under accounting code number 200-10.

All provisions found inconsistent herewith are considered null and void.

* Text available at the Office of the National Administrative Register, U.P. Law Center, Diliman, Quezon City
© Supreme Court E-Library 2019
This website was designed and developed, and is maintained, by the E-Library Technical Staff in collaboration with the Management Information Systems Office.