social protection support project – second additional financing: … · 2020-04-28 · second...
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Second Additional Financing of Social Protection Support Project (RRP PHI 43407-017)
Project Number: 43407-017 Loan: XXXX April 2020
Emergency Assistance Loan for Second Additional
Financing
Republic of the Philippines: Social Protection Support
Project
Project Administration Manual
ABBREVIATIONS
4Ps – Pantawid Pamilyang Pilipino Program ADB – Asian Development Bank CCT – conditional cash transfers COVID-19 – coronavirus disease DOF – Department of Finance DSWD – Department of Social Welfare and Development ECA – emergency cash assistance FMA – financial management assessment FMS-SP – Financial Management Service for Special Projects IPP – Indigenous Peoples Plan LBP – Land Bank of the Philippines LGU – local government unit NPMO – National Program Management Office SDG – sustainable development goals SOE – Statement of Expenditure SPSP – Social Protection Support Project SPSP-AF – Social Protection Support Project – Additional Financing SPSP-AF II – Social Protection Support Project – Second Additional Financing TA – technical assistance
CONTENTS
I. PROJECT DESCRIPTION 1
II. IMPLEMENTATION PLANS 1
A. Project Readiness Activities 1 B. Overall Project Implementation Plan 2
III. PROJECT MANAGEMENT ARRANGEMENTS 2
A. Project Implementation Organizations: Roles and Responsibilities 2 B. Key Persons Involved in Implementation 3 C. Project Organization Structure 4
IV. COSTS AND FINANCING 6
A. Cost Estimates Preparation and Key Assumptions 7 B. Detailed Cost Estimates by Expenditure Category and Outputs 8 C. Allocation and Withdrawal of Loan Proceeds 9 D. Detailed Cost Estimates by Financier 10 E. Detailed Cost Estimates by Year 11 F. Contract and Disbursement Projections 11 G. Fund Flow Diagram 12
V. FINANCIAL MANAGEMENT 13
A. Financial Management Assessment 13 B. Disbursement 16 C. Accounting 17 D. Auditing and Public Disclosure 18
VI. PROCUREMENT AND CONSULTING SERVICES 19
A. Retroactive Financing 19 B. Procurement of, Works, and Consulting Services 19
VII. SAFEGUARDS 19
VIII. GENDER AND SOCIAL DIMENSIONS 22
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 23
A. Project Design and Monitoring Framework 23 B. Monitoring 28 C. Evaluation 28 D. Reporting 29 E. Stakeholder Communication Strategy 29
X. ANTICORRUPTION POLICY 29
XI. ACCOUNTABILITY MECHANISM 29
XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 30
APPENDIXES:
1. Financial Management Risk Assessment and Mitigation Measures 31
2. Statement of Expenditure Form 33
Project Administration Manual Purpose and Process
1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.
2. The Department of Social Welfare and Development is wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by executing agency of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.
3. At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan agreement. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the loan agreement shall prevail.
4. After ADB Board approval of the project's report and recommendations of the President (RRP),
changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM.
I. PROJECT DESCRIPTION
1. The emergency assistance loan (EAL) to the Republic of the Philippines for the second additional financing of the Social Protection Support Project (SPSP-AF II) will support the government’s efforts to provide unconditional emergency cash assistance (ECA) to the poor and vulnerable households which have been adversely affected by the coronavirus disease (COVID-19) pandemic, and the associated declaration of community quarantine announced in several parts of the Philippines since 15 March 2020. The Bayanihan to Heal as One Act, or Republic Act No. 11469 (Bayanihan Law),1 which was signed into law on 24 March 2020, empowers the government to provide an ECA of ₱5,000–₱8,000 per month for 2 months to around 18 million low-income households / families nationwide.2 The Department of Social Welfare and Development (DSWD) and the local government units have been designated as the key agencies through which the ECA will be delivered. The SPSP-AF II will build on the decade-long support of the Asian Development Bank (ADB) for the government’s Pantawid Pamilyang Pilipino Program (4Ps), which provides conditional cash transfers (CCTs) to improve the health and education of nearly 4.28 million households nationwide. This proposed EAL will fund part of the ECA to these 4Ps households so that they can cope with the unfolding economic, health, and social costs of the COVID-19 pandemic. 2. The proposed SPSP-AF II is aligned with the following impact: income poverty and non-income poverty reduced.3 The outcome of the overall project will remain the same: household consumption and the use of education and health services by 4Ps households (especially mothers and children) are increased.
3. Outputs 1 to 4 of the current project remain the same. SPSP-AF II will support the outcome through an additional output: unconditional ECA for 4Ps households via cash cards delivered on time. SPSP-AF II will support ECA of ₱5,000 - ₱8,000 per month for 2 months to 3.67 million4 4Ps households paid via cash cards. The specific amount of the ECA per household will depend on the region and the prevailing level of minimum wage there. Based on estimates, nearly $726.1 million will be required by the DSWD to make ECA nationwide to all 4Ps households for a period of 2 months. Out of which, $635.2 million will be required for 86% of 4Ps households with cash cards. ADB will fund $200 million of this amount.5 At least 85.3% of ECA recipients are women.
II. IMPLEMENTATION PLANS
A. Project Readiness Activities
Indicative Activities
Months Responsible Individual/Unit/Agency/
Government 1 2 3
Establish project implementation arrangements
✓ ADB, DSWD
1 Accessible at https://www.officialgazette.gov.ph/downloads/2020/03mar/20200324-RA-11469-RRD.pdf 2 The Bayanihan Law will remain in effect only for 3 months unless extended by the Congress of the Philippines. 3 National Economic and Development Authority. 2017. Philippine Development Plan 2017–2022. The impact statement
is unchanged. 4 DSWD. February 2020. Monthly Update on Pantawid Pamilya Coverage. Manila. 5 ADB will also continue to provide technical support to the DSWD to draw on information from the Listahanan 3 survey,
which is in the process of (i) updating the list of poor households nation-wide, and (ii) identifying households up to 1.1 times the poverty line. Currently, all activities under the Listahanan 3 – surveys, enumeration, validation, and encoding – have been suspended with effect from 17 March 2020, as a result of the COVID-19 epidemic.
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Indicative Activities
Months Responsible Individual/Unit/Agency/
Government 1 2 3
ADB Board approval ✓ ADB
Loan signing ✓ ADB/DOF
Government legal opinion provided ✓ DOF
Government budget inclusion ✓ DOF/DBM/DSWD
Loan effectiveness ✓ ADB/DOF
ADB = Asian Development Bank, DBM = Department of Budget and Management; DOF = Department of Finance; DSWD = Department of Social Welfare and Development. Source: ADB
B. Overall Project Implementation Plan
Indicative Activities Mth
1 Mth
2 Mth
3 Mth
4 Mth
5 Mth
6 Mth
7 Mth
8 Mth
9 Mth 10
Mth 11
Mth 12
A. DMF
Output 5 Unconditional ECA for 4Ps households via cash cards delivered on time
Activity 5.1 Prepare and transmit to Land Bank the beneficiary payrolls
Activity 5.2 Payment of ECA to 4Ps households with cash cards
B. Management Activities
Gender action plan activities
Indigenous peoples plan activities
Communication strategy key activities
First and mid-term review
Final review
Project completion report (borrower’s)
4Ps = Pantawid Pamilyang Pilipino Program DMF = design and monitoring framework, ECA = emergency cash assistance, mth = month. Source: ADB
III. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations: Roles and Responsibilities
4. The DSWD will continue to serve as the executing agency and will supervise, coordinate, and manage SPSP-AF II, ensuring appropriate use of the loan proceeds. The current implementation arrangement of SPSP-AF will be continued (i.e. Pantawid National Program Management Office (NPMO) and 17 regional program management offices as the implementing units).
Table 1: Project Implementation Organizations – Roles and Responsibilities Project Implementation Organizations
Management Roles and Responsibilities
Executing agency Department of Social Welfare and Development (DSWD)
▪ Administer the project as the executing agency of the ADB loan;
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Project Implementation Organizations
Management Roles and Responsibilities
▪ Directly manage and supervise the implementation of the project;
▪ Oversee and coordinate the implementation and M&E of the program;
▪ Chair the National Advisory Council;
▪ Provide technical assistance to the overall program operations at the regional, provincial, and city/municipal levels;
▪ Serve as repository of program information and data;
▪ Mobilize, manage, and account for all program funds and resources;
▪ Coordinate and collaborate with development partners to augment logistics in program implementation;
▪ Develop and continuously update the 4Ps OM to guide all business processes;
▪ Monitor and evaluate project implementation progress;
▪ Maintain project books and accounts and manage financial reporting and accountability aspects (withdrawal applications, financial statements and reports, bank account statements, etc.);
▪ Fulfill government fiduciary and financial management oversight for fund flows; and
▪ Submit withdrawal applications through the Department of Finance retaining original supporting documents, and any reporting requirements including the bi-annual internal audit reports for the program and annual project audit opinion on the project financial statements and audit opinion on use of loan proceeds for its intended purpose.
ADB ▪ Provide support and supervise implementation, and ensure compliance with the loan agreement;
▪ Ensure project achieves expected outputs and outcomes;
▪ Ensure compliance with good governance, social safeguards, and anti-corruption measures; and
▪ Provide demand-driven policy and advisory and capacity development technical assistance
4Ps = Pantawid Pamilyang Pilipino Program, OM = Operations Manual, ADB = Asian Development Bank. Source: ADB
B. Key Persons Involved in Implementation
Executing Agency Department of Social Welfare and Development
Aimee Torrefranca-Neri Undersecretary Telephone No: 02 8951-7121 Email address: [email protected]; [email protected]
Batasan Complex, 1121 Quezon City, Philippines Asian Development Bank
Human and Social Development Division
Ayako Inagaki Director Telephone No.: 02 8632-4530 Email address: [email protected]
Mission Leader Shamit Chakravarti Principal Social Sector Specialist Telephone No.: 02 8683-1901 Email address: [email protected]
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C. Project Organization Structure
Figure 1: Pantawid Pamilyang Pilipino Program Management Structure
Office of the Undersecretary for General Administration
and Support Services Group
National Program Manager
PANTAWID PAMILYA NATIONAL PROGRAM MANAGEMENT OFFICE (NPMO)
National Advisory Committee (NAC) / NAC
Tech. Working Group - - - - - - - - - -
National Independent Advisory & Monitoring
Committee (NIAMC)
National Project Director
Undersecretary for Operations
Office of the Secretary
Deputy National Project Director for Operations
Director, FMS
INFORMATION AND COMMUNICATION TECHNOLOGY MANAGEMENT SERVICE (ICTMS)
FINANCIAL MANAGEMENT SERVICE FOR SPECIAL PROJECTS (FMS)
Director, ICTMS
National Project Management Team
(NPMT) (converted to Unified NPMT)
DPM for Support DPM for Operations
- - - - - - - - - -
Source: DSWD and ADB.
- - - - - - - - - -
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Figure 2: Regional Program Management Office (RPMO)
Source: DSWD.
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IV. COSTS AND FINANCING
5. The overall project is estimated to cost $637.1 million (Table 1). ADB will partly finance expenditures related to providing the ECA to approximately 3.67 million 4Ps households which have cash cards
Table 2: Summary Cost Estimates ($ million)
Item Current Amounta
Additional Financingb Total
A. Base Costc
1. National targeting system implemented efficiently 13.7 13.7 2.1. Conditional health and education grants provided 6,353.3 6,353.3
2.2 Unconditional emergency cash assistance for COVID- 19-affected 4Ps delivered on time
635.2 635.2
3. Capacity for CCT operations strengthened 59.9 59.9 4. Systems for monitoring and evaluation 46.9 46.9 5. Advocacy 5.9 5.9 6. Administration and personnel services 468.9 468.9
Subtotal (A) 6,948.6 635.2 7,583.8 B. Contingencies 7.7 7.7 C. Financing Charges During Implementationd 87.3 1.9 89.2 Total (A+B+C) 7,043.6 637.1 7,680.7
4Ps = Pantawid Pamilyang Pilipino Program, CCT = conditional cash transfer, COVID-19 = coronavirus disease 2019. a Refer to original loan amount and first additional financing. Include taxes and duties of $1.84 million to be financed
from government resources. b Additional financing for the emergency cash assistance. Any taxes and duties will be financed by the government. c In March 2020 prices. d Include interest and commitment charges financed by the government. Commitment charges for an ADB loan are
0.15% per year on undisbursed loan amount Source: Asian Development Bank.
6. The government has requested additional financing of $200 million from ADB’s Ordinary Capital Resource to support part of the government program in response to the COVID-19 epidemic. The government will finance $437.1 million. The loan will have a term of 29 years including a grace period of 8 years, use the straight line method with an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, have a maturity premium of 0.20% and a commitment charge of 0.15% per year, and such other terms and conditions set forth in the loan agreement. The summary financing plan is in Table 3.
Table 3: Summary Financing Plan
Source
Currenta Additional Financing Total
Amount ($ million)
Share of Total
(%) Amount ($ million)
Share of Total
(%) Amount ($ million)
Share of Total
(%)
Asian Development Bank OCR (regular loan) 800.0 11.4 200.0 31.4 1,000.0 13.0
World Bank (loan) 450.0 6.4 450.0 5.9
Government 5,793.6 82.3 437.1 68.6 6,230.7 81.1
Total 7,043.6 100.0 637.1 100.0 7,680.7 100.0
OCR = ordinary capital resources. a Refer to the original loan and first additional financing. Source: ADB and Philippines Department of Social Welfare and Development
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A. Cost Estimates Preparation and Key Assumptions
7. The following key assumptions underpin the cost estimates and financing plan: (i) Exchange rate: ₱50.87 = $1.00 (as of 25 March 2020).
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B. Detailed Cost Estimates by Expenditure Category and Outputs
Table 4: Detailed Cost Estimates by Expenditure Category and Output
Item Total Cost
Output 1 Output 2 Output 3 Output 4 Output 5
Amount % of Cost
Category Amount
% of Cost
Category Amount
% of Cost
Category Amount
% of Cost
Category Amount
% of Cost Category
A. Investment Costs
Emergency cash assistance 635.21 635.21 100.00
Subtotal (A) 635.21 635.21 100.00
B. Recurrent costs 0.0 0.00 0.00
Subtotal (B) 0.0 0.00 0.00
C. Continencies 0.0 0.00 0.00
D. Financial Charges During Implementation
1.44
1.92 100.00
Subtotal (D)
1.44 1.92 100.00
Total Project Cost (A+B+C+D) 636.65 637.13 100.00
Note: Numbers may not sum precisely because of rounding.
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C. Allocation and Withdrawal of Loan Proceeds
Allocation and Withdrawal of Loan Proceeds – SPSP-AF II
Number Item
Total Amount Allocated from ADB Financing ($) Basis for Withdrawal
from the Loan Account Category
1 Project costs 200,000,000.00 100% of total expenditure claimed
Total 200,000,000.00
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D. Detailed Cost Estimates by Financier
Table 5: Detailed Cost Estimates by Financier
Item
ADB World B Government Total Cost
Amount % of Cost Category
Amount % of Cost Category
Amount % of Cost Category
Amount
A. Investment Costs
Emergency cash assistance 200.00 31.5 435.21 68.5 635.21 Subtotal (A) 200.00 31.4 435.21 76.4 635.21
B. Recurrent Costs
Subtotal (B)
C. Contingencies
D. Financial Charges During Implementation
1.92 100.00 1.92
Total Project Cost (A+B+C+D) 200.00 31.4 437.13 68.6 637.13
% Total Project Cost 31.4 68.6 100.0
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E. Detailed Cost Estimates by Year
Table 6: Detailed Cost Estimates by Year ($ million)
Item Total Cost Year 1
A. Investment Costs
Emergency cash assistance 635.21 635.21
Subtotal (A) 635.21 635.21
B. Recurrent Costs
Subtotal (B)
C. Contingencies
D. Financial Charges During Implementation
1.92 1.92
Total Project Cost (A+B+C+D) 637.13 637.13
% Total Project Cost 100.0% 100.0%
F. Contract and Disbursement Projections
Table 7: Contract Awards and Disbursement
Year
Contract Awards (in $ million)
Disbursements (in $ million)
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
2020 200 200 200 200
Total Contract Awards 150 Total Disbursements 200
Q = quarter. Source: Asian Development Bank.
Figure 3: Contract and Disbursement
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G. Fund Flow Diagram
Figure 4: Funds Flow Arrangements
ADB = Asian Development Bank, BTR=Bureau of Treasury, CO = Central Office, DBM=Department of Budget and Management, DOF=Department of Finance, DSWD = Department of Social Welfare and Development, GOP = Government of the Philippines, LBP=Land Bank of the Philippines, MDS=modified disbursement system, SOE = statement of expenditure. Source: Asian Development Bank.
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V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
8. The financial management assessment (FMA) was conducted in March 2020 (an update from the recently conducted FMA in October 2019) in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due Diligence: A Methodology Note. The FMA considered the capacity of the DSWD, including funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. It is concluded that the overall pre-mitigation financial management risk of DSWD as substantial. The Government of the Philippines and DSWD have agreed to implement the following action plan to address the deficiencies, build capacity, and mitigate the risks (Table 8).6 The post-mitigation risk is rated as moderate.
Table 8: Financial Management Action Plan Weakness Risk
Ratinga Mitigation Actions Responsibility Timeframe
Program-specific Limited linkage between 4Ps NPMO and FMS-SP due to lack of electronic recording/capture, sharing and integration of program implementation and financial management information.
Moderate
DSWD to expedite the development of an integrated information system to facilitate seamless sharing of information between the NPMO and the FMS-SP, and improve planning, programming and budgeting.
DSWD FMS, ICTMS, 4Ps NPMO
2020
Accounting policies and procedures Potential inaccuracies due to manual preparation of financial statements in 11 out of 16 DSWD field offices (delayed roll-out of e-NGAS). Limited storage area in field offices expose physical financial records to damage and theft.
Substantial Moderate
Implement computerized accounting in remaining 11 field offices as required by COA to enhance accuracy of annual financial statements and provide technical support to field-office personnel designated to use the computerized accounting system. Regional offices will rent additional office space, and dialogue with COA on submission of certified true digital copies of original financial records
DSWD FMS central and field offices DSWD FMS central and field offices; COA
2020 2020
External audit COA does not issue separate audit opinion for 4Ps since a separate 4Ps financial statement is not provided by DSWD.
Substantial
Prepare and issue a separate financial statement for 4Ps through the revived Fund Cluster 1: Regular Agency Fund, Fund Category 101: Social Protection Support Program. The financial statements will be prepared based on acceptable accounting framework to ADB.
DSWD FMS- Locally Funded Projects
2020 January onwards
6 See also Appendix 1 for the summary of inherent risks and mitigation measures.
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Weakness Risk Ratinga
Mitigation Actions Responsibility Timeframe
COA to conduct annual audit based on acceptable auditing standards to ADB and issue (1) annual audit opinion for the 4Ps FS; (2) annual audit opinion on use of loan proceeds for its intended purpose; and (3) management letter in compliance with ADB requirement.
COA; DSWD FMS-LFP
2020-2021
Internal audit Internal auditors of DSWD lack technical capacity to audit IT-based systems of 4Ps.
Moderate
4Ps to develop an orientation/training module on 4Ps systems purposely for internal audit staff
FMS-SP; NPMO
2020
Cash grants delivery 4Ps’ system to monitor post payroll activities is lacking, resulting in unnecessary accumulation of unpaid, unclaimed and unliquidated cash grants. a. Delay in cash cards distribution b. Potential of double entries in cash grants payroll and delay in updating the status of household beneficiaries
Substantial
Review post payroll evaluation and validation with LBP Fast track the development and deployment of the monitoring module for cash card distribution under the current cash grants payroll system Define timelines to fast track the validation process of reported double entries and enhance, if necessary, the beneficiary update system and grievance redress system
FMS-SP; NPMO; ICTMS; LBP FMS-SP; NPMO; ICTMS NPMO; ICTMS, FMS-SP
2020 2020 2020
Non-binding payment reforms due to outdated Memorandum of Agreement between DSWD and LBP which also threatens the on-time and efficient release of cash grants to eligible household beneficiaries
Substantial DSWD to work with LBP in amending the MOA to ensure timely and efficient delivery of cash benefits to eligible household beneficiaries including (i) revised timeline on deposit of cash grants to individual accounts considering the volume of cash card accounts, (ii) responsibilities and timeline on creation of new, replacement of old and release of cash cards, (iii) schedule of withdrawal of cash grants by the beneficiaries, and (iv) arrangements on the use of point of sale in lieu of ATMs
FMS-SP; NPMO; LBP
2020
4Ps = Pantawid Pamilyang Pilipino Program, ADB = Asian Development Bank, AGDB = authorized government depository bank, COA= Commission on Audit, DSWD = Department of Social Welfare and Development, e-NGAS=
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electronic New Government Account System, FMS-SP = Financial Management System for Special Projects, ICTMS = Information and Communication Technology Management Service, LBP = Land Bank of the Philippines, LFP = Local Funded Program, MOA = memorandum of agreement, NPMO = National Program Management Office, OTC = over the counter. a Low, moderate, substantial, high. Source: ADB.
9. If the proposed risk mitigation measures outlined in the table above are implemented, then the project’s financial management risk becomes moderate. 10. The Financial Management Service (FMS) of DSWD is responsible for preparing and implementing financial plans, policies and guidelines; management of financial and related non-financial information systems; and evaluation and analysis of operating performance of responsibility centers. It consists of three divisions focusing on budgeting, accounting and cash management. 11. The current financial management structure of DSWD indicates delineation of duties and responsibilities at central and field office levels. At the central office, DSWD has created and established the FMS for Special Projects (FMS-SP) to undertake financial management tasks related to 4Ps and other foreign-assisted projects, e.g., KALAHI-CIDSS Community Driven Development Project and Expanded Social Assistance Program that received financing from ADB. The Undersecretary for General Administration and Support Services Group heads the overall 4Ps FMS-SP. The FMS-SP is a separate financial management unit headed by a Director. It comprises 78 government contractual staff and 9 Certified Public Accountants. The capacity of FMS-SP is, therefore, adequate to ensure that program funds are utilized appropriately and only for the intended purpose and activities. The FMS-SP ensures internal fiduciary control for 4Ps funds. It facilitates fast and accurate processing of financial transactions such as financial planning, programming, issuance of appropriations to field offices, processing and approving of obligation requests, and payment of expenses. 12. At the field offices, the implementation of 4Ps financial management including obligation, processing, recording and monitoring of cash grants releases is handled by the regular financial management personnel of these offices. Funds intended for cash grants are retained at the central office and delivered directly to eligible 4Ps beneficiaries through an authorized government depository bank (i.e. the Land Bank of the Philippines) and its conduits (e.g., points of sale). Thus, there are no funds flow to field offices. The mainstreamed financial procedures and processes are the responsibility of the field offices’ Financial Management Division’s head at the regional level. Contractual staff hired specifically for 4Ps provide assistance. The number of financial management personnel at the field offices hired for 4Ps varies, depending on the size and coverage of the field offices in terms of eligible household beneficiaries. The FMA indicates that the current financial management personnel are sufficient to handle the requirements of Project.
13. For the Project, DSWD issued Supplementary Guidelines to Memorandum Circular 4 on Social Amelioration Measures. The additional cash grants to 4Ps household will be executed based on the guidelines. In addition, the Financial Management sub-manual for 4Ps, which was issued on 29 December 2015, details the key financial management policies and procedures. It is currently under revision/updating to reflect the following major changes in DSWD’s financial management structure and arrangements:
(i) Creation of the FMS for locally-funded Programs (FMS-LFP) and FMS-SP units at the central office, which separates the financial management for projects/programs assisted by foreign loans from the locally funded/regular programs of the DSWD;
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(ii) Creation of the financial management division at the field office level, which reports directly to the assistant regional director for administration; and
(iii) Inclusion of cash transfers for rice subsidy as part of the 4Ps budget. B. Disbursement
1. Disbursement Arrangements for ADB Funds
14. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time)7, and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.8 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.
15. The loan proceeds will flow from ADB to the Treasurer of the Philippines account at the Bangko Sentral ng Pilipinas as reimbursement. DSWD will transfer funds from its modified disbursement system-general fund account to the Land Bank of the Philippines (LBP) based on approved DSWD budget and notice of cash allocation issued by Department of Budget and Management (DBM) and in accordance with existing Commission on Audit (COA) rules and regulations. Subsequently, disbursement of cash grants to eligible beneficiaries will follow the funds flow procedures specified in 4Ps Operations Manual’s financial management sub-manual. Figure 4 above indicates the funds flow arrangement.
16. Statement of expenditure procedure.9 Disbursement method will be by reimbursement using Statement of Expenditure (SOE) procedures. DSWD will prepare the SOE based on the payroll for cash grants summarized by regions. The SOE will be submitted to the Department of Finance (DOF) along with certification that the payment of cash grants is consistent with the DSWD Memorandum Circular Nos. 04 and 05 (Supplemental Guidelines on the Provision of Social Amelioration Measures by DSWD). DOF will then prepare the withdrawal application and transmit the same together with the SOE to ADB for reimbursement. The ADB receives the withdrawal application and remits the funds to the Bangko Sentral ng Pilipinas for the account of the Treasurer of the Philippines account. The ceiling of the SOE procedure is the equivalent of $200 per individual payment. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB.
17. Before the submission of the withdrawal application (WA), the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per WA is stipulated in the Loan Disbursement Handbook (2017, as amended from time to time). The borrower should ensure sufficient category and contract balances before requesting disbursements. The borrower should ensure sufficient category and
contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements
7 The handbook is available electronically from the ADB website (http://www.adb.org/documents/loan-disbursement-
handbook). 8 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning. 9 Statement of expenditures forms are available in Appendix 2.
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(CPD)10 system is encouraged for submission of withdrawal applications to ADB.
2. Disbursement Arrangements for Counterpart Fund
18. The project will finance a portion of cash grants payroll for up to 3.68 million eligible 4Ps household beneficiaries as emergency cash assistance. Cash grants to eligible beneficiaries are processed by the Cash Grants Division of the FMS, on the basis of the electronic payroll prepared and generated by the DSWD Information and Communication Technology Management Service (ICTMS).
19. In accordance with the Memorandum of Agreement between DSWD and the Land Bank of the Philippines (LBP), actual payment to eligible beneficiaries are made by the latter. LBP prepares and transfers funds to eligible beneficiaries based on approved payroll from DSWD. There are two modes of payment: cash cards and over-the-counter payment. LBP deposits cash grants to individual accounts of eligible beneficiaries with cash cards. During payout periods, beneficiaries go to the nearest automatic teller machine in the area to withdraw cash grants. DSWD field office, and LBP agree on the processing, procedures, requirements, scheduling and location for over-the-counter payments on the ground. C. Accounting
20. DSWD will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following international accounting principles and practices, as well as existing laws, rules and regulations provided for in the Government Accounting and Auditing Manual issued by COA. Officials authorized to sign payment documents, vouchers and checks are designated through the issuance of a Department Order signed by the DSWD Secretary indicating the levels of authority for each official.
21. DSWD will prepare project financial statements in accordance with COA Circular No. 2013-002 dated 13 January 2013, which provides for a harmonized Philippine Public Sector Accounting Standards, and in accordance with International Public Sector Accounting Standards. This enhances transparency and accountability of financial reporting and ensures comparability of financial information. COA Circular 2014-003 dated 15 April 2014 details the guidelines and procedures on the conversion of New Government Accounting System chart of accounts, including its implementation. As such, DSWD adopted the revised chart of accounts for national government agencies.
22. The 4Ps Interim Financial Reports are prepared separately, and consolidated with the agency-wide interim financial reports, i.e., Budget and Financial Accountability Reports; Statement of Allotment, Obligation and Balances; Monthly Report of Cash Disbursements; and Monthly Report of Checks Issued and Cancelled, among others, for submission to concerned government agencies on or before the prescribed period. DSWD Central Office uses the electronic recording of financial transactions, and subsequently generates annual financial statements.
23. Agency-wide financial statements for all locally-funded programs of DSWD, including payments for the 4Ps ECA, are prepared by the FMS-LFP under Fund Cluster 1: Regular Agency Fund, Fund Category 101: Specific Budgets of National Government Agencies, in accordance
10 The CPD facilitates online submission of WA to ADB, resulting in faster disbursement. The forms to be completed
by the Borrower are available online at https://www.adb.org/documents/client-portal-disbursements-guide.
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with the Unified Accounts Code Structure prescribed by COA-DBM-DOF Joint Circular No. 2013-1 dated 6 August 2013, and as amended through COA-DBM-DOF Joint Circular 2014-1 dated 7 November 2014. This adjustment rendered inactive the Fund Cluster 1: Regular Agency Fund, Fund Category 101 for Social Protection Support Project (SPSP) used by ADB’s first conditional cash transfers loan for the Philippines from 2010 to 2015. Subsequently, ADB’s 2016 SPSP-Additional Financing changed the financial management arrangement where the FMS-SP prepares and processes 4Ps grants payments, while the FMS-LFP is responsible for recording.
24. This adjustment rendered inactive the Fund Cluster 1: Regular Agency Fund, Fund Category 101 for Social Protection Support Project (SPSP) used by ADB’s first conditional cash transfers loan for the Philippines from 2010 to 2015. Subsequently, ADB’s 2016 SPSP-Additional Financing changed the financial management arrangement where the FMS-SP prepares and processes 4Ps grants payments, while the FMS-LFP is responsible for recording. DSWD in concurrence with COA has confirmed the revival of Fund 101 with effect from 1 January 2020. Fund 101 will be used to track the government program for the 4Ps. All transactions pertaining to the ECA paid via Cash Card (3.67 million households) will be captured and separately recorded using accounting tag 4Ps-COVID-19 in the eNGAS.
25. To ensure compliance with ADB reporting requirements for projects, DSWD will prepare and issue separate annual project financial statement for SPSP-AF II by tagging the 4Ps ECA payroll as 4Ps-COVID19 in the eNGAS and subjecting these financial statements to external audit by the resident COA auditor.
26. DSWD complies with recently issued DBM Circular Letter No. 2019-4 dated 14 January 2019, prescribing the Guidelines on the Adoption and Use of the Budget and Treasury Management System for Budget Utilization. This provides for an integrated financial management information system for obligating, disbursing and reporting all government expenditures. D. Auditing and Public Disclosure
27. DSWD will cause the detailed project financial statements to be audited in accordance with the standards of the Philippine Public Sector Standards in Auditing and by an independent auditor acceptable to ADB. The COA, the supreme audit institution of the government, will carry out external audit of the annual project financial statements in accordance with government laws, rules and regulations and following the Philippine Public Sector Standards in Auditing which is consistent with International Standards for Supreme Audit Institutions. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by DSWD. 28. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the loan were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable). 29. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor. 30. The government and the DSWD have been made aware of ADB’s approach to delayed
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submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.11 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. 31. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.12 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.13
VI. PROCUREMENT AND CONSULTING SERVICES
A. Retroactive Financing
32. The borrower and DSWD have been advised that approval of retroactive financing does not commit ADB to finance the project.
B. Procurement of, Works, and Consulting Services
33. There will be no loan-financed consulting services or procurement.
VII. SAFEGUARDS
34. The project is classified as category B for indigenous people, and category C for environment and involuntary resettlement. The project will not involve civil works and will not lead to any land and assets acquisition. There will be no physical displacement or temporary involuntary resettlement impacts under the proposed project.
35. Indigenous peoples (IPs). Of the 643,414 IP households of the 4Ps (15% of total active households), 72.6% are from Mindanao, 24.7% from Luzon, and 2.7% are from the Visayas.
11 ADB’s approach and procedures regarding delayed submission of audited project financial statements:
(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.
(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months.
(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.
12 Public Communications Policy: https://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications. 13 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2011.
Public Communications Policy. Paragraph 97(iv) and/or 97(v).
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36. Indigenous Peoples Plan (IPP). An Indigenous Peoples Plan (IPP) was prepared for SPSP-AF II, separate from the IPP for the current project.14 The IPP provides guidance to guarantee culturally appropriate program implementation for indigenous beneficiaries and to develop measures to minimize and mitigate any unavoidable adverse impacts. Table 9 describes
the identified potential positive and negative impacts as well as the measures to mitigate the unavoidable negative impacts. The goal is to ensure indigenous beneficiaries receive social and economic benefits that are culturally-appropriate and gender-responsive.
Table 9: Potential Positive and Negative Impacts on Indigenous People and Proposed Mitigation Measures
Outputs Anticipated Positive Impacts
Anticipated Negative Impacts
Proposed Mitigation Measures
Cash grants for COVID-19 affected poor and vulnerable groups specifically 4Ps beneficiaries delivered on time.
• Customary leaders are consulted and aware of the additional support provided by the government during the COVID-19 pandemic.
• Indigenous beneficiaries are knowledgeable on the purpose of the one-time unconditional emergency cash assistance via cash cards package amounting to P5,000 to P8,000 for two months based on the Bayanihan Law.
• Indigenous peoples may be excluded from the benefits of the project due to high demand for health services all over the country.
• Lack of representation in major decision making process may result in serious neglect when the whole country is in crisis.
IPs are consulted and aware of the additional support provided by the government during the COVID-19 pandemic
• Mobilize the participation of indigenous leaders, Indigenous Peoples Mandatory Representatives, and parent leaders during information campaign drive on COVID-19.
• Ensure that no indigenous beneficiaries are excluded from the list of grantees for additional cash grants by executing the following measures: (i) Pantawid
regional office to review the IP data provided by the NPMO to ensure that the list matches with the existing IP beneficiaries of the regions.
(ii) Data inconsistencies should be reported
14 Indigenous Peoples Plan (accessible from the list of linked documents in Appendix 2 of the report and
recommendation of the President).
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Outputs Anticipated Positive Impacts
Anticipated Negative Impacts
Proposed Mitigation Measures
immediately to the NPMO and FMS especially those without cash cards.
(iii) Assist indigenous beneficiaries to fast track the completion of documentary requirements. This process should be executed as quickly as possible so there is no time lost in distributing cash grants to beneficiaries.
• Strengthen partnership with LGUs to provide transportation support for indigenous beneficiaries to claim their cash grants.
• Customary leaders and community members have adequate information on how to protect their families from infection.
• Indigenous communities are provided with information materials that are easy to understand and in local languages.
• Indigenous communities are not aware of how to protect their families and communities from infection.
Indigenous communities are provided with relevant and adequate information on how to protect their families from infection.
• Develop communication strategy during project implementation based on specific characteristics of indigenous peoples in the project areas including analysis of factors that limit their access to health care services.
• Integrate information dissemination
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Outputs Anticipated Positive Impacts
Anticipated Negative Impacts
Proposed Mitigation Measures
activities using simple, easy-to-understand COVID-19 information education materials in local language.
• Regional Information Officers to develop information materials into visual aids and popular education methods to better assist the parent leaders in explaining the COVID-19 in IP areas.
• Parent leaders to serve as the main disseminators of accurate information concerning COVID-19.
• Program impacts are regularly monitored to ensure the IPP is properly implemented.
Conduct an evaluation that compares the impacts of the additional cash grants on indigenous communities with non-IP communities.
37. Disclosure of project information will be made available to the indigenous communities and beneficiaries in the form of leaflets or brochures translated into the local language. For indigenous communities where a large number of the adults cannot read, materials will be produced in popularized form. In addition to printed material, project implementers will use visual presentations and other culturally appropriate means to share pertinent project information. The monitoring reports on IPP implementation will also be posted on the ADB website. 38. Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the Safeguard Policy Statement (2009).
VIII. GENDER AND SOCIAL DIMENSIONS 39. The key causes of poverty and vulnerability include high inequality of income, underinvestment in human capital, catastrophic health expenditure, and frequent disasters. The poverty rate in the Philippines declined from 25.2% in 2012 to 16.6% in 2018. Despite this decline, absolute poverty and the risk of vulnerability remain high, especially with the rapid spread of the COVID-19 pandemic across the Philippines and the expanding community quarantine from mid-March 2020. These measures have deprived not only the poor but also informal sector workers including daily wage earners of their livelihoods, who are now finding it difficult to pay for food, medicines, and other basic necessities. Through SPSP-AF II, the beneficiary households will
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receive social assistance for disaster prevention and community mitigation to incentivize social distancing and individual proper health hygiene practices, cushion the loss of income, prevent hunger, and maintain social order. 40. COVID-19 crisis may potentially aggravate inequality and impact disproportionately on poor people, especially women. Key gender issues include: (i) income loss as many poor women work in informal sector as daily wage earners; (ii) increased negative social behaviors including heightened gender-based violence as a result of anxiety and stress around the loss of income, disease transmission, and forced confinement; and (iii) anticipated disproportionate burden of care and risk of contracting COVID-19 due to their primary role as household/family caregiver. Since the majority (85.3% in 2020) of 4Ps households are headed by women grantees, the unconditional ECA will enable women’s access to and control of finances that will enable women to optimize resource usage for the health and well-being of themselves and their families. 41. SPSP-AF II will retain the original gender theme (GEN). The gender action plan (GAP) of the current project is retained/unchanged as the measures/actions indicated will ensure gender benefits for the emergency cash assistance. The target households that received unconditional ECA will be disaggregated by sex and composition of household. DSWD has implemented the GAP in a satisfactory manner, with regular updates included in the progress reports, including sex-disaggregated data. The Pantawid NPMO Gender and Development (GAD) Unit supervises implementation, and regional focals are designated to ensure GAD mainstreaming in the field both at the organizational and beneficiary level. While the Bayanihan Law is effective for three months until 23 June 2020, the gender issues that may require medium to longer term impact as a result of COVID-19 will be addressed through the implementation of the proposed Expanded Social Assistance Project in close consultation with 4Ps Gender and Development Technical Working Group of DSWD.
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION
A. Project Design and Monitoring Framework
Impact the Project is Aligned with
Current project: Income poverty and non-income poverty reduced
Overall project: Unchanged (Philippines Development Plan 2017–2022) a
Results Chain Performance Indicators with
Targets and Baselines
Data Sources and Reporting Mechanisms Risks
Outcome
Current project: Household consumption and the use of education and health services by 4Ps householdsb (especially mothers and children) are increased
a. At least 10% increase in average per capita consumption of beneficiaries in target communities (2008 baseline: $211 per capita per year) (RFI 1.1)c b. At least 90% each of boys and girls aged 6–18 years in poor beneficiary householdsb attend school (2008–2009 baseline: 62%) (RFI 1.1)c
a–f. Regular impact evaluation surveys (DSWD and PIDS) b–e. Quarterly program MIS reports (DSWD)
Benefit levels are not adjusted for inflation. Social services may be unavailable or of low quality. Political and financial support for the program may not be maintained.
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Results Chain Performance Indicators with
Targets and Baselines
Data Sources and Reporting Mechanisms Risks
c. At least 70.0% of pregnant women deliver in a health facility (2008 baseline: 44.5%) (RFI 1.1)c d. At least 80.0% of births are delivered by skilled health personnel (2008 baseline: 62.2%) (RFI 1.1)c
a, f. Annual poverty indicators survey (PSA)
Overall project: Unchanged
e. At least 85% of children are fully immunized before 1 year old (2008 baseline: 70%) (RFI 1.1)c f. Decrease in the share of children 6–14 years old who are working in project areas (2008 baseline: 4.6%) (RFI 1.1)c Overall project: Unchanged
Outputs Output 1 Current project: National targeting system to selected poor householdsb implemented efficiently Overall project: Unchanged
1a. Current project: By 2019, 85% of poor householdsb nationwide registered in the Listahanan database (2008 baseline: 0) (RFI 1.1)c Overall project: Unchanged 1b. Current project: By 2019, the Listahanan exclusion error is less than 20% for the NCR and 7% for non-NCR areas and inclusion error is less than 11% for the NCR and 14% for non-NCR areas (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 1c. Current project: By 2019, at least 25 national programs use the Listahanan targeting mechanism (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 1d. Current project: By 2019, at least 60% of poor householdsb registered in the Listahanan database receive benefits of social protection programs (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged
1a. Listahanan database (DSWD) and annual poverty indicators survey (PSA) 1b–d. Listahanan database (DSWD)
Transitory movements in and out of poverty may not be fully captured by the targeting system. The targeting system may result in inclusion and exclusion errors.
Output 2 Current project: Conditional health and education cash grants provided to poor householdsb
2a. Current project: By 2019, at least 4 million poor householdsb receive cash grants and at least 90% of grant recipients are women
2a–e. Pantawid 4Ps MIS (DSWD)
Payment windows may be far from beneficiaries’ homes and therefore either
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Results Chain Performance Indicators with
Targets and Baselines
Data Sources and Reporting Mechanisms Risks
Overall project: Unchanged
(2008 baselines: Not applicable) (RFI 1.1)c Overall project: Unchanged 2b. Current project: By 2019, at least 80% of mothers in beneficiary householdsa receive 4Ps cash grants in at least five of the six reporting periods per year (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 2c. Current project: By 2019, at least 80% of householdsb meet education conditions regularly (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 2d. Current project: By 2019, at least 80% of householdsb meet health conditions regularly (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 2e. Current project: By 2019, at least 80% of householdsb meet the family development session conditions (2008 baseline: Not applicable; males: Not applicable) (RFI 1.1)c Overall project: Unchanged 2f. Current project: By 2015, local area maps are produced, with data down to at least the barangay level, showing distributions of (i) target households; (ii) health facilities; (iii) preschools and day-care centers; (iv) schools; and (v) payment windows (RFI 1.1)c Overall project: Unchanged
2f. DSWD Information Management Bureau mapping service
inaccessible or expensive to access. Errors may result in ineligible households receiving CCT grants. Weaknesses in internal control may increase fiduciary risk.
Output 3 Current project Capacity for CCT program operations strengthened Overall project Unchanged
3a. Current project: By 2011, central and local project management structures established (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 3b. Current project: At least 1,400 central and local staff acquire knowledge on gender analysis, indigenous peoples sensitivity, and prevention of gender-based violence by 2017 (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged
3a. Pantawid4Ps Operations Manual (DSWD) 3b. Training and workshop records (DSWD)
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Results Chain Performance Indicators with
Targets and Baselines
Data Sources and Reporting Mechanisms Risks
3c. Current project: Gender action plan implemented to 2019 (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 3d. Current project: By end of 2014, participatory gender audits and community-driven municipality gender action plans piloted in 10 municipalities (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged
3c–d. Gender action plan updates by the gender and development unit (DSWD)
Output 4 Current project Systems for monitoring and evaluating social protection programs improved Overall project Unchanged
4a. Current project: By 2011, MIS is established and functioning to support payments, verification, updates, and grievance system (2008 baseline: established) (RFI 1.1)c Overall project: Unchanged 4b. Current project: By 2019, 90% of grievances received are resolved within established time protocol (2008 baseline: Not applicable,) (RFI 1.1)c Overall project: Unchanged 4c. Current project: At least seven rounds of independent spot checks of 4Ps conducted by 2016 (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged 4d. Current project: By 2016, final impact evaluation report based on third wave impact evaluation survey in late 2015 (2008 baseline: Not applicable) (RFI 1.1)c Overall project: Unchanged
4a. Spot-check reports (Social Weather Stations) 4b. 4Ps MIS (grievance redress system) (DSWD) 4c. Spot-check reports (Social Weather Stations) 4d. Impact evaluation reports (DSWD)
Program integrity and success could suffer from political capture or interference.
Output 5 (added) Unconditional emergency cash assistance for 4Ps households having cash cards delivered on time
5a. Within the duration of the implementation of the Bayanihan Law, 100% of beneficiaries having cash cards received the ECA (2020 baseline: 0) (RFI 1.1)c 5b. At least 85.3% of ECA recipients of 4Ps households with cash cards are women (2020 baseline: 0) (RFI 1.1)c
5a.–b. DSWD reports
Delayed release of funds
Key Activities with Milestones 1. National targeting system to select poor families implemented efficiently 1.1 Assess households in set three areas, and register poor households in the Listahanan database (Q3 2010;
updates through Q2 2015) (completed)
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1.2 Complete the list of potential Pantawid beneficiaries, using the Listahanan PMT, for all sets (Q3 2010) (completed)
1.3 Apply the Listahanan PMT targeting mechanism in 15 other national programs (by Q2 2019) (completed) 1.4 Process special validation requests on an annual basis (by Q2 2019) (completed) 2. Conditional health and education cash grants provided to poor families 2.1 Undertake sets 2 and 3 of beneficiary household validation, LBP enrollment, and identification card distribution
(by Q3 2010) (completed) 2.2 Distribute cash cards to new beneficiaries (initiated in Q3 2010) (completed) 2.3 Ensure computerized compliance verification system operating by Q1 2011 and used as basis for all subsequent
grant payments (completed) 2.4 Prepare and transmit to LBP the beneficiary payrolls for every pay period (completed) 2.5 Make bimonthly payments of CCT to beneficiaries until 2019 (completed) 3. Capacity for conditional cash transfer program operations strengthened 3.1 Mobilize additional staff per staffing plan under approved reorganization, including hiring contractual staff for the
National Program Management Office and Regional Program Management Offices (by Q2 2019) (completed) 3.2 Complete supply-side assessment and analysis (by Q2 2011) (completed) 3.3 Implement training and capacity building (periodic to 2019) (completed) 3.4 Disseminate information in public forums (periodic to 2019) (completed) 3.5 Ensure that more efficient institutional mechanisms for providing grants to remote beneficiaries are in place by
Q4 2012 3.6 Pilot participatory gender audits and community-driven gender action plans (Q3 2010–Q4 2014) (completed) 3.7 Train Pantawid parent leaders in regional clusters (Q1 2017–Q2 2019) (completed) 4. Systems for monitoring and evaluating social protection programs improved 4.1 By Q4 2010, launch core modules of computerized MIS: (i) household information, (ii) registration, (iii)
verification, (iv) payments, (v) updates, and (vi) grievance redress system (completed) 4.2 Ensure that a fully integrated computer-based MIS is operating by Q2 2011 (completed) 4.3 Develop and test spot-checking methodology (Q3 2010) (completed) 4.4 Undertake ADB-financed independent spot checks and reporting at least seven times through 2016 and
counterpart-financed independent thereafter at least annually (completed) 4.5 Undertake monitoring and evaluation studies (2014–2016) (completed) 5. Unconditional emergency cash assistance for Pantawid Pamilyang Pilipino Program households having
cash cards delivered on time 5.1 Prepare and transmit to LBP the beneficiary payrolls (Q2 2020) 5.2 Provide the ECA to 4Ps households with cash cards
Inputs
ADB
Loan TA
$800.0 (current) $2.0 (current)
$200.0 (additional)
$1,000.0 (overall) $2.0 (overall)
World Bank
$450.0 (current)
$ 0.0 (additional)
$450.0 (overall)
Government
$5,793.6 (current)
$437.1 (additional)
$6,230.7 (overall)
Assumptions for Partner Financing Not applicable
4Ps = Pantawid Pamilyang Pilipino Program, ADB = Asian Development Bank, CCT = conditional cash transfer, DSWD = Department of Social Welfare and Development, ECA = emergency cash assistance, LBP = Land Bank of the Philippines, MIS = management information service, NCR = National Capital Region, PIDS = Philippines Institute for Development Studies, PMT = proxy means test, PSA = Philippine Statistics Authority, Q = quarter, RFI = results framework indicator. a National Economic and Development Authority. 2017. Philippine Development Plan 2017-2022. b The planned change in the primary beneficiary of 4P from “households” to “families” did not materialize in 2015, and therefore the primary beneficiary unit has been changed back from “families" to “households”. Reference to the program as “Pantawid” has also been changed to “4Ps”.
Contribution results framework: c RFI 1.1: 3.67 million households benefiting from improved health services and social protection. Source: ADB.
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B. Monitoring
42. Project performance monitoring. Monitoring tools include the DSWD’s disaster situation and response updates and project progress reports.
43. Compliance monitoring. The compliance to the loan covenants will be monitored on a semi-annual basis during project review mission. 44. Safeguards monitoring. The IPP will be monitored as described in Section VII, using the IPP monitoring indicators in Table 9.
Table 9: Monitoring Indicators
Indicators Process Indicators
Comprehensive list of indigenous grantees for additional cash grants
• The number of IPs by gender, age, habitat (sitio) • Number of households with handicapped, elderly or invalid
members; • Number of female-headed households; • Number of poor households; and • Number of households headed by the elderly.
Conduct of meaningful consultation and effective participation of indigenous peoples in the program
• Number of consultation and participation activities that occur – meetings, FGDs, information dissemination, brochures flyers, training;
• Percentage of IPs as participants; • Number of meetings exclusively with indigenous women; • Location of information disclosure; • Languages used at meetings and information disclosure; and • Consultation and participation progress against plan and
budget.
Grievance redress • Level of involvement of IPs in the grievance resolution; • Total number of IPs using the project level GRM; • Number of grievances received by nature of grievance; • Number of grievances resolved; • Length of time taken to be resolved; and • Number of grievances not resolved and reasons for not being resolved yet.
Implementation of mitigation measures and beneficial measures
• Number of indigenous beneficiaries benefiting from one-time unconditional cash grants disaggregated by gender, age group and geographic location;
• Number of IPs provided with IEC materials disaggregated by gender;
• Languages used in the IEC materials; FGD = Focus Group Discussion, GRM = Grievance Redress Mechanism, IEC = Information-Education-Communication, IP = Indigenous Peoples.
45. Gender and social dimensions monitoring. The implementation of the GAP will be monitored on a semi-annual basis, using the same GAP monitoring indicators of SPSP-AF. C. Evaluation
46. To monitor the progress of project implementation, a review mission will be fielded on the 3rd and 7th month (midterm). The final review mission will be fielded on the 12th month. One month
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prior to the completion date, DSWD will submit a project completion report to ADB.15
D. Reporting
47. DSWD will provide ADB with (i) semi-annual progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual report including (a) progress achieved by output as measured through the indicator's performance targets, and (b) key implementation issues and solutions; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed.
E. Stakeholder Communication Strategy
48. In accordance with DSWD’s Supplementary Guidelines to Memorandum Circular 4 on Social Amelioration Measures, information dissemination activities to inform the beneficiaries, staff, and other relevant stakeholders about the purpose, amount variabilities, and means of distribution (as top-up benefit) of ECA will be undertaken. Caravans, meeting, and gatherings, however, as means of information dissemination are prohibited to minimize close person to person physical contact.
X. ANTICORRUPTION POLICY
49. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.16 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.17 50. To support these efforts, relevant provisions are included in the loan agreement/regulations. The project has low corruption risks due to the nature of 4Ps and DSWD’s
established fiduciary and internal controls. At any rate, the borrower and ADB discussed the
governance risk assessment and mitigation plan and specific mitigation measures the project will implement to further strengthen financial accountability. These mitigation measures are identified
in a governance risk assessment conducted as part of the program preparation per the Second Governance and Anticorruption Action Plan.18
XI. ACCOUNTABILITY MECHANISM
51. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s
15 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-
Sector-Landscape.rar 16 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 17 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp 18 Governance and Anticorruption Action Plan II Guidelines. http://www.adb.org/Documents/Guidelines/GACAP-II-
Guidelines.pdf. See also Sourcebook: Diagnostics to Assist Preparation of Governance Risk Assessments. http://www.adb.org/documents/books/Diagnostics-to-Assist-Preparation-of-GRAs/default.asp.
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operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.19
XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL
52. All revisions and/or updates during the course of implementation should be retained in thissection to provide a chronological history of changes to implemented arrangements recorded inthe PAM, including revision to contract awards and disbursement s-curves.
19 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.
31 Appendix 1
FINANCIAL MANAGEMENT RISK ASSESSMENT AND MITIGATION MEASURES
A number of weaknesses and challenges have been identified as shown in Table 6 together with the mitigation measures, which will be closely monitored during implementation. The overall assessment of financial management risk before mitigation is rated as substantial. The post mitigation risk is rated as moderate.
Table 6: Summary of Inherent Risks and Mitigation Measures Risk Risk
Assessment (w/o mitigation)
Risk Mitigation Measures
Inherent Risk1
Country level risks- Overall weak PFM system, especially on budgeting (difficulty in establishing precise entity annual budgets), accounting (compliance with rules and regulations) and external audit (limited legislative scrutiny of COA reports)
Substantial Continue policy dialogue with the government to encourage PFM reforms, especially those focusing on budgeting (accounting and external audit (improve the functioning of the Joint Congressional Oversight Committee on public expenditures).2
Entity-specific risks- Unclear roles among the organizational entities involved in implementing the Pantawid Pamilya program.
Moderate Joint memorandum circular between DSWD, other NGAs and LGUs to define better reporting and feedback mechanisms. Regular meetings of the National Advisory Committees to address coordination issues.3
Overall Inherent Risk Moderate-Substantial
Program Risks4
Program-specific risks- Information systems. The completion of the development of computerized information system to capture and integrate significant and necessary program management and financial information has been delayed.
Moderate DSWD to expedite the completion of the development and deployment of an integrated information system that will enable linkage between the NPMO and the FMS-SP to readily capture significant and necessary information at any time and improve planning, programming and budgeting process
Accounting and internal controls - Accounting policies and procedures- DSWD faces challenges in ensuring the accuracy of financial recording and reporting due to the delay in the full implementation of eNGAS in 11 out of 16 field offices.
Substantial DSWD to identify the causes of delay in the implementation of eNGAS/ computerized accounting system in 11 out of 16 field offices and immediately prepare and execute an implementation plan to assist the field offices.
1 Inherent risk is the susceptibility of the program FM system to factors arising from the environment in which it operates, such as country or sector-level rules and regulations as well as the agency’s working environment (assuming absence of any counter-checks or internal controls).
2 Financial Management Assessment, Additional Financing of Social Protection Support Project. 3 Ibid. 4 Program Risk is the risk that the programs accounting and internal control framework are inadequate to ensure
program funds are used economically and efficiently and for the purpose intended, and that the use of funds is properly reported.
32
Risk Risk Assessment
(w/o mitigation)
Risk Mitigation Measures
Limited storage space in the field offices exposing the original financial records to damage and theft
Moderate DSWD to: a) utilize funds allocated for rental of office space/ storage space; and b) have consultation dialogue with COAon the possibility of allowing submissionof true digital copies of original financialrecords.
External Audit - COA does not issue separate audit opinion for a specific program under the Fund 101 due to the absence of a separate FS from the DSWD.
Substantial DSWD to create sub-account Fund Cluster 1: Regular Agency Fund, Fund Category 101: Social Protection Support Program- Additional Financing II to allow the issuance of separate FS for audit by COA.
Overall Program Risk Substantial
Overall Risk Substantial
Appendix 1 33
STATEMENT OF EXPENDITURE FORM
DEPARTMENT OF DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT ENHANCED PANTAWID PAMILYANG PILIPINO PROGRAM
Unconditional Emergency Cash Assistance (ECA) for 4Ps Households via Cash Cards FOR THE PERIOD: _______________________
REGION NO. OF HOUSEHOLDS
AMOUNT PER HOUSEHOLD (PHP)
TOTAL (PHP)
NCR
I
CAR
II
III
IV A
IV B
V
VI
VII
VIII
IX
X
XI
XII
CARAGA
BARMM
TOTAL
CERTIFICATION
This is to certify that the payment of ECA for 4Ps households via cash cards indicated in the above schedule is consistent with the provisions in the DSWD’s Supplementary Guidelines to
Memorandum Circular 4 on Social Amelioration Measures.
Prepared by: Reviewed by:
Certified Correct: Approved as to Funding: