Ensuring completeness, correctness, consistency and compliance to existing project guidelines and processes are the main objectives of the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (Kalahi-CIDSS) in holding its First Regional Fiduciary Review.

Kalahi-CIDSS Regional Financial Analyst (RFA) Clarito Logronio, emphasized in the recently-concluded activity, that conducting the Fiduciary Review is crucial for the project because it talks and involves big amounts of money and those who have a stake in the program are accountable as to how the funds are disbursed.

The Fiduciary Review tackled procurement tracking system, no objection letter benchmarks, procurement monitoring and labor tracking system. The participants used the audit approach and methodology in reviewing the different paid disbursement vouchers.

Regional Infrastructure Engineer (RIE) Gerardo Peňeda said that the errors in the disbursement vouchers usually appear in the community procurement process, and in some cases, due to political interventions in the community.

“It is inevitable in some communities that there are politicians who would ride on and intervene in the project implementation, especially when it comes to procurement. But we are really strict in the procurement because we are promoting transparency here. That’s why we trained the procurement team who will review and monitor procurement compliance. The procurement review is intended not to find faults in community procurement but to find areas where improvements can be made for more efficient implementation”, RIE Peňeda added.

Community Procurement Basis in Kalahi-CIDSS

Just like any government-spearheaded projects, Kalahi-CIDSS adheres to certain procurement guidelines. The basis of community procurement in Kalahi-CIDSS is the compact agreement of the Government of the Philippines with the Millennium Challenge Corporation and the Community Procurement Manual with Millennium Challenge Account-Philippines No Objection Letter.

Another basis in the community procurement of Kalahi-CIDSS is the Memorandum of Agreement (MOA) between the DSWD and the Municipal Local Government Unit (MLGU). It is stipulated in Section 3, Article 5 of the MOA that the MLGU should uphold and preserve the integrity of the Kalahi-CIDSS procurement and fiduciary processes, and; (a) assist community volunteers in undertaking procurement in a fair and transparent manner, and to defend the community-based procurement process from any and all attempts at undue influence; and (b) assist the project in helping volunteers to manage financial transactions in accordance with existing rules and regulations, and ensure sound financial management system.

Prior Review Requirements

Before the Barangay Sub-Project Management Committee (BSPMC) issues the Notice of Awards for Purchase Orders (POs) and contracts under local bidding for goods and for works amounting to more than 1M pesos but not more than 2.5M pesos, all documents must first be submitted to the National Project Management Office (NPMO) for review. The National Project Manager then issues a “No Objection Letter (NOL)” if the documents are found to be in order.

For contracts and POs amounting to and exceeding the amount of P2.5 M, the BSPMC must first secure approval of the World Bank (WB) or MCA-P through the Regional Project Management Office (RPMO) before issuing the Notice of Award and signing the contract. The RPMO reviews the documents before forwarding these to the NPMO. In all cases, it shall be the NPMO that shall coordinate with the WB for a NOL.

For each Kalahi-CIDSS cycle under MCC funding, fifty (50) randomly-chosen community-based procurement contracts in part of whole area of coverage, regardless of amount, shall be subjected to MCA-P’s review proceedings. The Procurement Team should ensure that all supporting documents of every contract are properly filed to facilitate submission in case it is selected for post review.

For contracts and individual POs of goods amounting to P500, 000 but not to exceed P1M, and for aggregate POs amounting to more than P1M proposed within the municipality for award to a single supplier, all documents must first be submitted to RPMO for review before the BSPMC issues the Notice of Award and sign the contract. If the documents are found to be in order, the Regional Project Manager shall issue a NOL.

Furthermore, the RPMO should also review individual contracts under Local Shopping of Works amounting to P500, 000 or more but not to exceed P1, 250, 000; and all contracts under Direct Contracting for works regardless of the amount.

Fiduciary Review in Kalahi-CIDSS

Based on his research, RFA Logronio said that fiduciary duty, in Wikipedia, means a legal or ethical relationship of confidence or trust. A fiduciary prudently takes care of money for another person. Fiduciary is taken from the Latin word fiduciarius, meaning “(holding) in trust”; from fides, meaning faith, and fiducia meaning trust”.

Regular fiduciary review in Kalahi-CIDSS is conducted in the barangay, municipal, and regional level.

The said regional fiduciary workshop was conducted on March 5 to 10 of this year at the Leyte Park Resort Hotel. It was participated in by the Municipal Financial Analysts and Deputy Area Coordinators of the different municipalities covered by the project.

KALAHI-CIDSS is an anti-poverty project of the government spearheaded by the Department of Social Welfare and Development (DSWD). It aims to empower the community, improve local governance, and reduce poverty.