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Project Number: 43407-014 Loan Number: 2662 December 2015
Republic of the Philippines: Social Protection
Support Project
Project Administration Manual
Additional Financing of Social Protection Support Project (RRP PHI 43407-014)
Contents
ABBREVIATIONS 5
I. PROJECT DESCRIPTION 1
A. Rationale 2 B. Impact and Outcome 4 C. Outputs 4 D. Pantawid Pamilyang Pilipino Program Operations Manual 5
II. IMPLEMENTATION PLANS 6
A. Additional Financing Readiness Activities 6 B. Original Project Implementation Plan 7 C. Project Implementation Plan (Additional Financing) 10
III. PROJECT MANAGEMENT ARRANGEMENTS 12
A. Project Implementation Organizations – Roles and Responsibilities (Unchanged)12 B. Key Persons Involved in Implementation 13 C. Project Organization Structure 14
IV. COSTS AND FINANCING 17
A. Detailed Cost Estimates by Expenditure Category and Output (original project) 19 B. Detailed Cost Estimates by Expenditure Category and Output (AF) 20 C. Detailed Cost Estimates by Financier (original project) 21 D. Detailed Cost Estimates by Financier (AF) 22 E. Detailed Cost Estimates by Year (original project) 23 F. Detailed Cost Estimates by Year (AF) 24 G. Allocation and Withdrawal of Loan Proceeds (Original Loan) 25 H. Allocation and Withdrawal of Loan Proceeds (AF) 26 I. Contract and Disbursement S-curve 27
V. FINANCIAL MANAGEMENT 30
A. Financial Management Assessment 30 B. Disbursement 31 C. Accounting 35 D. Auditing 35
VI. PROCUREMENT AND CONSULTING SERVICES 36
A. Advance Contracting and Retroactive Financing 36 B. Procurement of Goods, Works and Consulting Services 36
VII. SAFEGUARDS 37
VIII. GENDER AND SOCIAL DIMENSIONS 40
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 42
A. Revised Design and Monitoring Framework 42 B. Monitoring 47 C. Evaluation 49 D. Reporting 50 E. Stakeholder Communication Strategy 50
X. ANTICORRUPTION POLICY 51
XI. ACCOUNTABILITY MECHANISM 53
XII. RECORD OF PAM CHANGES 53
APPENDIXES 1. Procurement Plan (Original Loan) 57 2. Indigenous Peoples Plan Monitoring Table 60 3. Gender Action Plan Monitoring Table 62 4 Summary of Financial Management Risk Assessment 64 and Mitigation Measures 5. DSWD Risk Management Action Plan to Address COA Findings 66 6. Statement of Expenditure Form 67 7. List of Useful Links 68 8. Draft Outline Terms of Reference for Independent Audit Firm 69
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 Government and Asian Development Bank (ADB) policies and procedures. 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 (DSWD) is wholly responsible for the implementation of this ADB loan, as agreed jointly between the Borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff members are responsible for supporting implementation, including compliance by the DSWD with its 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.
Abbreviations
ADB = Asian Development Bank CCT = conditional cash transfer CVS = compliance verification system DepEd = Department of Education DFAT = Department of Foreign Affairs and Trade (Australia) DMF = design and monitoring framework DOH = Department of Health DPM = deputy project manager DSWD = Department of Social Welfare and Development FBS = fixed-budget selection GAD = gender and development GAP = gender action plan GOP = Government of the Philippines GRS = grievance redress system ICS = individual consultant system KALAHI-CIDSS
= Kapit Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services
LGU = local government unit M&E = monitoring and evaluation MIS = management information system MOA = memorandum of agreement NGO = nongovernment organization NHTS-PR = national household targeting system for poverty reduction NPMO = National Program Management Office PM = project manager QCBS = quality and cost based selection RPMO = Regional Program Management Office RRP = report and recommendation of the President TOR = terms of reference
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I. PROJECT DESCRIPTION
1. ADB approved the original $400 million Social Protection Support Project (SPSP)1 on 2 September 2010 to support the government’s social protection agenda with four outputs: (i) national targeting system to select poor households implemented efficiently, (ii) conditional health and education grants provided to poor households, (iii) strengthened capacity for conditional cash transfer (CCT) program operations, and (iv) improved systems for monitoring and evaluation of social protection programs. A capacity development technical assistance (CDTA) supported capacity development and institutional strengthening for efficient implementation of the social protection agenda from 2010-2014.2 A grant from the Gender and Development Cooperation Fund supported piloting and strengthening gender activities under the Pantawid Pamilyang Pilipino Program (Pantawid)3 from 2010-2014. A policy and advisory technical assistance (PATA)4 supports the government’s social protection reform agenda (with an extended closing date of January 2016). 2. Pantawid has expanded rapidly and reached 4.4 million poor households as of the end of 2014. As the government’s flagship social assistance program, Pantawid aims to help achieve the Philippine Development Plan (PDP) 2011–2016 goal of inclusive growth and equitable access to quality basic services. Pantawid provides cash grants to poor households, identified by the Listahanan poverty targeting system, if they fulfill certain education and health conditions (or co-responsibilities). The grants encourage utilization of maternal health services and attendance at monthly family development sessions. Promoting investments in children’s human capital aims to break the inter-generational transmission of poverty. The cash grants mitigate poverty in the short term and help families to make ends meet, but the real poverty reduction impact will be seen in the long term through a healthier and more educated workforce. 3. Impact evaluation results published in 2012 and 2014 confirm that the program is effective in improving access to health services and increasing school enrollment and attendance.5 Pantawid families spend more on education and health. There are significant differences between Pantawid and non-Pantawid families in regular weight monitoring of children and in pregnant mothers seeking four pre-natal care visits. About 70% of Pantawid mothers deliver in health facilities compared to a nationwide average of 56%. Pantawid children work 7 fewer days per month than non-Pantawid children. There is evidence that the grants do not encourage dependency: working-age adults in Pantawid households are more likely to be seeking additional work than in non-Pantawid households. Pantawid parents are also more optimistic about their children’s future. The program continues to add value despite the fact that the grants have not been increased to account for inflation. 4. The Government of the Philippines has requested that the Asian Development Bank (ADB) provide additional financing (AF) to the SPSP. The AF will support the expanded scope of and enhancements to Pantawid, including its nationwide expansion and the extension of benefits to high school students, as part of the Government’s National Program Support for Social Protection. The project is consistent with the original development objective, retaining the
1 Asian Development Bank (ADB). 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan, Technical Assistance Grant, and Administration of Technical Assistance Grant to the Republic of the Philippines for the Social Protection Support Project. Manila.
2 A project preparatory technical assistance to prepare the proposed project was approved on 21 December 2009.
The CDTA (TA 7586) was completed on 31 August 2014. 3 Completed on 31 December 2014 (TA 7587).
4 TA 7733 financed by the Japan Fund for Poverty Reduction, approved on 13 December 2010.
5 The 2012 and 2014 impact evaluations are available at http://www.dswd.gov.ph.
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same outcome statement. It remains technically feasible, economically viable, and financially sound. The project is aligned with the government priority to expand social protection services as reconfirmed in the Philippine Development Plan 2011-2106 Midterm Update.6 It is consistent with the ADB country partnership strategy (CPS) 2011-2016 for the Philippines, which aims to support high, inclusive, and sustainable growth, and to complement supply-side interventions in the social sectors with demand-side interventions via medium-term support for social protection.7 A majority of the beneficiaries (59%) are in the Visayas and Mindanao, which supports the CPS geographic focus. Efficiency gains and strong links with the original project in terms of design and implementation arrangements confirm the suitability of the additional financing modality. 5. SPSP performance has been consistently on track. With a closing date of 31 March 2016, many of the output targets have been surpassed as of mid-2015: (i) all poor households are registered in the national household targeting system for poverty reduction (the Listahanan), exceeding the target of 20%; (ii) at least 25 national programs use Listahanan, exceeding the target of 3; (iii) more than 637,700 households (with 1.7 million children) receive ADB-financed cash grants, exceeding the target of 580,000, (iv) 92% of the grant recipients are women, exceeding the target of 90%, and (v) more than 93% of households regularly meet the education, health and family development session conditions, exceeding the target of 80%. The outcome is very likely to be achieved. 6. With an elapsed period of 91% as of 30 September 2015, cumulative contract awards and disbursements had reached $369.3 million (92%) and $381.8 million (95%) of the total loan amount, respectively. Safeguard compliance is satisfactory: many positive measures are in place to promote the inclusion of indigenous people (IP), such as a modified CCT (MCCT) for IP, managed by DSWD’s MCCT unit and regional IP focal persons. The current project has no resettlement or environmental impacts. The project carries a gender equality theme and significant gender results are in evidence, including that 92% of the grantees are women. The management of risks has also been satisfactory and country and program level risks have been adequately addressed. A. Rationale 7. Despite high economic growth in the early 2000s, poverty incidence in the Philippines remained stubbornly high and even increased during some periods. One of the key causes of poverty was chronic underinvestment in human capital, especially health and education. As a result, the Philippines lagged in meeting the Millennium Development Goal targets for universal primary education, maternal mortality, and access to reproductive health services. 8. When the original project was designed, Government efforts to address poverty and improve human development were compromised by low spending in the social sectors, particularly in social protection (SP). At the time, SP was characterized by a lack of policy and institutional coordination, with several departments undertaking uncoordinated and sometimes
6 National Economic and Development Authority. 2014. Philippines Development Plan 20112016 Midterm Update.
Pasig. 7 This lending proposal was not included in ADB. 2014. Country Operations Business Plan: Philippines: 2015–2017.
Manila. The government requested ADB’s financial assistance in a letter dated 16 February 2015 as an addition tothe country operations business plan. The Southeast Asia Regional Department confirmed that such financial assistance can be accommodated under the 2015 resource envelope.
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ineffective programs. Benefits were further compromised by weak targeting systems to identify beneficiaries and high rates of leakage to the non-poor. 9. To respond to these challenges, the government set out to strengthen its SP system. The reform agenda, led by the Department of Social Welfare and Development (DSWD), included (i) accelerating SP policy reforms; (ii) improving poverty targeting; (iii) expanding the conditional cash transfer (CCT) program and strengthening its delivery mechanisms, governance and monitoring and evaluation; and (iv) securing adequate and predictable financing for SP by consolidating programs and gradually expanding the overall budget allocation. The CCT program became the cornerstone of SP reforms. 10. The Pantawid cash grants mitigate present poverty by helping families make ends meet, but the real poverty reduction gains are expected in the future, when healthier and more educated children finish school and join the work force. CCTs are a form of results-based financing that aim to break the inter-generational transmission of poverty from parents to their children. The cash transfer helps meet direct and indirect costs of accessing health care and schooling. It also aims to reduce the incentive to remove children from school so that they can work to the supplement the family’s income. The Philippines’ CCT program uniquely includes parents’ attendance at monthly family development sessions as one of the core conditions. These sessions focus on a wide range of topics including responsible parenthood, health and nutrition, education, active citizenship, disaster preparedness, and more. 11. Pantawid has expanded rapidly since it was launched in 2008 with 380,000 of the poorest households (known as set 1). The SPSP was designed to partially finance grants to families added in 2009 (set 2) and in 2010 (set 3). 8 More than 1.2 million households were added in set 4 in 2011. By the end of 2014, with the addition of sets 5 to 7, Pantawid covered more than 4.4 million households nationwide and had become the world’s third largest CCT program in terms of people reached. Pantawid’s targeting accuracy to the poorest 40% of the population is among the best in the world and compares very favorably to the more established large-scale programs in Latin America.9 12. Alongside the expansion, technical adjustments to Pantawid supported partly by ADB TA10 include: (i) an increase in the frequency of compliance reporting and payments from quarterly to bi-monthly, (ii) a modified CCT for IP in remote areas and for homeless street families, (iii) introducing a differentiated grant amount for high school students recognizing the higher opportunity costs of staying in school, and (iv) expanded eligibility for children aged 15 to 18, an increase from the original cut-off of 14 years. The expanded eligibility introduced in 2014 aims to support children through high school graduation in order to improve their future employment and earning potential. Pantawid is therefore a demand-side intervention that complements the K-12 education reforms supported by the results-based Senior High School Support Program, 11 under which the Department of Education will add two years of senior high school starting in 2016. Pantawid also has strong synergies with the Department of Labor and Employment’s planned nationwide roll-out of the JobStart Philippines program, which provides
8 Sets are not equivalent to geographic areas. One municipality may have beneficiaries from different sets, added in
different years. Sets are an indicator of length of participation in the program. See Supplementary Appendix 1 for the detailed poverty criteria used to determine sets (available from the list of linked documents in Appendix 2).
9 World Bank. 2015. State of Social Safety Nets 2015. Washington DC.
10 ADB. 2010. Technical Assistance Report: Support for Social Protection Reform. Manila.
11 ADB. 2014. Report and Recommendation of the President to the Board of Directors: Senior High School Support Program. Manila.
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career guidance, life skills, and employment facilitation services to young people aged 18-24, and is supported by ADB’s Increasing Competitiveness for Inclusive Growth Program.12
B. Impact and Outcome
13. The impact and outcome of the overall project remain unchanged. The impact with which the project is aligned is reduced income poverty and non-income poverty. The outcome will be that both household consumption and utilization of education and health services by Pantawid Pamilya families, especially mothers and children, are increased. The AF will deliver the originally intended outputs without significantly altering the design of the current project. There are minor changes in wording and in some of the performance targets and indicators. The design and monitoring framework (DMF) is in Section IX and shows both original (current) project (the SPSP) and overall project (SPSP + SPSP-AF) indicators. The overall project indicators will be monitored from AF effectiveness onwards.
C. Outputs
14. The original project supported the implementation and expansion of Pantawid in Set 2 and Set 3 areas, covering about a total of 583,000 households in 436 municipalities and 37 cities in 53 provinces.13 The AF will support the nationwide implementation of Pantawid including families in all sets (currently sets 1-7, but DSWD will no longer distinguish between sets in the future). 15. Output 1: National targeting system to select poor households implemented efficiently. Under the current project, output 1 activities supported the implementation of the national household targeting system. By 2011, the system had assessed 10.9 million households and determined 5.2 million to be poor. A 2010 presidential executive order requires all government agencies to use the system’s database to target poor households. As of September 2015, 25 national programs use the database, as do 1,095 of the country’s 1,715 local government units. Under the second round of targeting, for completion by the end of 2015, the DSWD is evaluating 15.3 million households to identify the poor and vulnerable. The new proxy means test model aims to reduce the inclusion and exclusion errors common under any targeting system. Under the overall project, ADB TA will support the DSWD’s efforts to address any remaining exclusion errors through a special validation of inclusion requests submitted through the program’s grievance redress system. 16. Output 2: Conditional health and education cash grants provided to poor families. Under the current project, this output finances a share of the conditional health and education grants for families in sets 2 and 3. Households can receive (i) a health grant of P500 a month for 12 months of the year, and (ii) an education grant for the 10 months of the school year for up to three children, currently set at P300 per month for preschool and elementary students and of P500 per month for high school students. The health conditions include requirements that (i) children 0–5 years old visit health centers for services including growth monitoring and immunizations; (ii) pregnant women receive prenatal and postnatal care, and their deliveries are attended by skilled personnel; and (iii) the grantee and/or the spouse attend monthly family development sessions. Upon verification that conditions have been met, transfers are paid directly into grantees’ Land Bank of the Philippines (LBP) accounts, accessible via ATMs. In areas without ATMs, LBP contracts other payment service providers. These include rural banks,
12
ADB. 2014. Report and Recommendation of the President to the Board of Directors: Increasing Competitiveness for Inclusive Growth Program, Subprogram 2. Manila.
13 The World Bank loan is financing Pantawid Pamilya in Set 1 areas, covering 341,000 households.
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cooperatives, money couriers and postal companies.14 Compliance with conditions has been consistently very high and stood at 93% for health, 96% for family development sessions, and 98% for education as of August 2015.15 Under the overall project, ADB will finance a share of the conditional health and education grants for households in all sets. The conditions remain unchanged, but the eligibility age has been raised from 14 to 18 (para. 6), and an original 5-year limit on program participation has been removed. 17. When the SPSP was designed, the average transfer per household was represented about 23% of average annual household income. This proportion was within range of successful Latin American CCT programs that set benefit levels high enough to provide a sufficient incentive to utilize health and education services but low enough to avoid distorting the labor market. Since then, the Pantawid grants have not been increased to keep pace with inflation, and by 2013 represented about 7% of the average household income. The average transfer in 2013 was about $16 per household per month.16
The additional financing and attached TA will support analytical work and policy dialogue to help determine new benefit levels and timing of the increase so as to ensure achievement of Pantawid objectives and avoid politicization.
18. Output 3: Capacity for conditional cash transfer program operations strengthened. Under the current project, this output’s activities support capacity development for the Pantawid program’s national and local management activities. These include household registration, organization of community assemblies, compliance verification, and payment management. Under the overall project, ADB TA will support capacity development for about 120,000 volunteer parent leaders who provide a liaison between parent groups with an average 25–30 families and the program’s field facilitators. This will complement planned further capacity development for the field facilitators. The overall project will continue to pay close attention to gender issues and to maximizing access to program benefits by indigenous people.17
19. Output 4: Systems for monitoring and evaluation of social protection programs improved. Under the current project, activities under output 4 have supported (i) strengthening management information systems for Pantawid operations; (ii) independent spot checks to monitor program implementation; (iii) qualitative and quantitative monitoring and evaluation studies, including the third wave of a joint impact evaluation series undertaken in partnership with the DSWD and development partners; and (iv) regular monitoring and reporting. The overall project will provide TA support for the DSWD’s internal operational spot checks to complement continued annual independent spot checks to be financed with counterpart funds. D. Pantawid Pamilyang Pilipino Program Operations Manual
20. The project supports the national Pantawid program as implemented by DSWD. To this end, all program partners at national and local levels are expected to follow DSWD’s implementation procedures as outlined in the Pantawid Pamilyang Pilipino Operations Manual (OM) (being updated in 2015). The Pantawid OM describes in detail the program parameters, eligibility requirements, conditionalities, and all major business processes. The 2015 revision also includes an updated Financial Management submanual.
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DSWD and LBP periodically invite institutions involved in money remittances to submit proposals to serve as payment conduits in the distribution of cash grants. In 2014, the top three payment modes were LBP cash cards (42% of grants), rural banks (17%), and Globe G-Cash and Smart eMoney (10% each).
15 DSWD. Social Protection Support Project Progress Report for the 1st Semester of 2015. Unpublished.
16 World Bank. Forthcoming. Benefit Incidence Analysis of the Pantawid Pamilyang Pilipino Program. Manila.
17 Gender Action Plan, and Indigenous Peoples Plan (accessible from the list of linked documents in Appendix 2).
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II. IMPLEMENTATION PLANS A. Additional Financing Readiness Activities
Months
Indicative Activities 1 2 3 4 Responsible
ADB Board approval ADB
Loan signing ADB/DOF
Government legal opinion GOP
Government budget inclusion
DSWD/DOF
Retroactive financing actions
DSWD/ADB
Loan effectiveness
ADB/GOP
ADB = Asian Development Bank, DOF = Department of Finance, DSWD = Department of Social Welfare and Development, GOP = Government of the Philippines.
B. Original Project Implementation Plan
Indicative Activities
2010 2011 2012 2013 2014 2015
3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Outputs
A. Output 1: Efficient Implementation of a National Targeting System (NHTS-PR) to select poor households
Activities:
1.1: Updating of NHTS-PR database, including on demand application of households not enumerated.
1.2: Completion of enumeration of households for Pantawid Pamilya for all sets
1.3: Registration of poor households into the NHTS-PR database, and validation of complaints about inclusion and exclusion errors
1.4: Completion of list of potential Pantawid Pamilya beneficiaries using NHTS-PR PMT for all Sets
1.5: NHTS-PR PMT targeting mechanism started to be applied in two other national programs
B. Output 2: Health and education grants provided to poor households
Activities:
2.1: Completing list of registered and validated HH beneficiaries for all Sets
2.2: Land bank enrollment of beneficiaries for all Sets
2.3: Distribution of beneficiary IDs for all 3 Sets
2.4: Distribution of initial batches of cash cards to beneficiaries of all 3 Sets
2.5: Distribution of additional batches of cash cards
2.6: Preparation of beneficiary payrolls for every quarter of 2010-2015
2.7: DSWD transmission of approved payrolls to Land Bank for every quarter of 2010-2015
2.8: Initial payment of Pantawid Pamilya grants for all 3 Sets
2.9: Verification and certification of beneficiary compliance with grant conditions for every quarter of 2010-2015
2.10: Second and subsequent payments of Pantawid Pamilya grants to beneficiaries compliant with grant conditions for every quarter 2010-2015
a
C. Output 3: Strengthened Capacity for CCT Program Operations
Activities:
3.1: Hiring of additional staff to implement new staffing plan per approved reorganization, including additional MOA staff for
• NPMO
• RPMO
3.2: Training and capacity building
Indicative Activities
2010 2011 2012 2013 2014 2015
3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
• Design and Preparation
• Implementation
• Evaluation
3.3: Information dissemination and Social Marketing including Pantawid Pamilya advocacy, GRS, and institutional building
3.4: Facilitating development of institutional mechanisms in remote areas to reduce cost in getting cash grants
3.5: Enhancement of family development sessions (FDS) including design development, implementation, and evaluation
3.6: Gender actions: Additional gender-sensitivity activity and measures such as gender-responsive trainings for Pantawid Pamilya implementors and parent-leaders
3.7: IP actions: Additional IP-sensitivity activities and measures such as sensitivity training for Pantawid Pamilya IP areas and hiring of IP staffs
D. Output 4: Improved Systems for Monitoring and Evaluation of Social Protection Programs
Activities:
4.1: Establishment of a fully functioning integrated computer-based MIS applied to all Set 3 areas
4.2: Completion of computerization of the following specific MIS modules for:
• household information
• registration
• CVS/verification
• payments
• updates
• grievance redress system
4.3: Strengthening of GRS, including improved communication and creation of GRS Committee at the regional, provincial, and municipal levels
4.4: Development and testing of spot-checking methodology
4.5: Actual spot-checking and reporting twice a year
4.6: Civil society monitoring at the national and subnational levels
4.7: M&E studies including inter alia women's employment and FDS
assessment/quality assurance
E. Management Activities
1.1: Procurement plan key activities to procure contract packages
1.2: Consultant selection by ADB procedures individual consultancy
• Submission of TOR for 3 program coordinators, 1 MIS consultant, 17 gender/IP specialists, and 1 GRS regional focal
• Canvassing, selection, and awarding
1.3: Annual/Midterm Review
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10
Indicative Activities
2010 2011 2012 2013 2014 2015
3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1.4: Project completion report (moved to 2019)
a Payment of previous quarters grant.
Pantawid Pamilya= Pantawid Pamilyang Pilipino Program, ADB = Asian Development Bank, CCT = conditional cash transfer, DSWD = Department of Social Welfare and Development, FDS = family development session, GRS = grievance redress system, HH = head of household, IP = indigenous peoples, M&E = monitoring and evaluation, MIS = management information system, NHTS-PR = national household targeting system for poverty reduction, TOR = terms of reference.
C. Project Implementation Plan (Additional Financing)
Indicative Activities
2016 2017 2018 2019
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Outputs
A. Output 1: National targeting system to select poor families implemented efficiently
1.1: Assess households in set 3 areas, and register poor households into the Listahanan database (Q3 2010; updates through Q2 2015) (completed).
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 at least 15 other national programs (by Q2 2019)
B. Output 2: Conditional health and education cash grants for poor families provided
2.1: Undertake set 2 and set 3 beneficiary household validation, Land Bank enrollment, and identification card distribution (by Q3 2010) (completed)
2.2: Distribute cash cards to new beneficiaries (initiated in Q3 2010)
2.3: Ensure computerized compliance verification system operating by Q1 2011 and used as basis for all subsequent grant payments
2.4: Prepare and transmit beneficiary payrolls to Land Bank for every pay period
2.5: Make bi-monthly payments of CCT grants to beneficiaries until 2019
C. Output 3: Capacity for CCT program operations strengthened
3.1: Mobilize additional staff as per staffing plan under approved reorganization, including hiring of contractual staff for the NPMO and RPMOs (by Q2 2019)
3.2: Complete supply-side assessment and analysis (by Q2 2011) (completed)
3.3: Implement raining and capacity building (periodic to 2019)
3.4: Disseminate information in public fora (periodic to 2019)
3.5: Ensure that more efficient institutional mechanisms for providing grants to remote beneficiaries are in place by Q4 2012 (completed)
3.6: Pilot of participatory gender audits and community-driven gender action plans (Q3 2010–Q4 2014) (completed)
D. Output 4: Systems for monitoring and evaluation of social protection programs improved
4.1: By Q4 2010, launch core modules for 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 independent spot checks and reporting at least 7 times through 2016 and additional spot checks once per year from 2017–2019
4.5: Undertake monitoring and evaluation studies
E. Management Activities
1.1: Project review missions (including mid-term review)
1.4: Project completion report (moved to 2019)
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a Payment of previous quarters grant.
Pantawid Pamilya= Pantawid Pamilyang Pilipino Program, ADB = Asian Development Bank, CCT = conditional cash transfer, DSWD = Department of Social Welfare and Development, FDS = family development session, GRS = grievance redress system, HH = head of household, IP = indigenous peoples, M&E = monitoring and evaluation, MIS = management information system, NHTS-PR = national household targeting system for poverty reduction, TOR = terms of reference.
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III. PROJECT MANAGEMENT ARRANGEMENTS A. Project Implementation Organizations – Roles and Responsibilities
Project Implementation Organizations
Management Roles and Responsibilities
Executing Agency
Department of Social Welfare and Development (DSWD). As lead agency, DSWD will Directly manage and supervise the implementation of the
program Oversee and coordinate the implementation, monitoring
and evaluation of the program Chair the National Advisory Committee Assessment the supply side of health and education
services together with partner agencies Forge agreements with the local government units to
ensure availability on the supply side 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 Prepare the budget operations manual in coordination
with the Departments of Budget and Management (DBM), Finance (DOF), Interior and Local Government (DILG), and the Commission on Audit (COA)
Coordinate and collaborate with development partners to augment logistics in program implementation
Establish and oversee the Pantawid national project management office
Develop and continuously update the Pantawid Pamilya Operations Manual to guide all business processes
Submit withdrawal applications, retain supporting documents, and any reporting requirements including the bi-annual internal audit reports for the program, annual audit reports and financial statements.
(Additional financing) Submit supporting documents for withdrawal applications to DOF,
(Additional financing) Submit reporting requirements including DSWD annual audit reports.
Asian Development Bank 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 Demand-driven policy and advisory and capacity
development technical assistance
21. The DSWD Executive Committee chaired by the Secretary has oversight responsibility. The Pantawid National Program Management Office (NPMO) was established in 2008 and has 333 approved positions as of Q3 2015. Guided by a high level inter-agency National Advisory Committee (NAC), DSWD and its 17 regional program management offices (RPMOs) are
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responsible for implementation. As of Q3 2015, the RPMOs have more than 13,240 approved positions, most of which are the grassroots level facilitators (municipal and city links) who work directly with the 4.4 million participating households. Grantees are organized into parent groups, coordinated by about 120,000 volunteer parent leaders. Local government units have each dedicated at least one full-time staff member to Pantawid. B. Key Persons Involved in Implementation
Executing Agency
Department of Social Welfare and Development
Corazon “Dinky” Juliano-Soliman Secretary, Department of Social Welfare and Development Telephone: 931-8191; 931-8068; 931-8101 Fax: 931 8191 Email: [email protected]
Asian Development Bank Division Director
Ayako Inagaki Director, Human and Social Development Division Southeast Asia Department Telephone: 632-4530 Fax: 636-2228 Email: [email protected]
Mission Team Leader Karin Schelzig Senior Social Sector Specialist Human and Social Development Division Southeast Asia Department Telephone: 683-1901 Fax: 636-2228 Email: [email protected]
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C. Project Organization Structure
PANTAWID PAMILYA ORGANIZATIONAL STRUCTURE
National Project Management Office
Office of the Project Director
(DSWD Secretary)
Office of the Deputy Project Director (Finance)
(DSWD U/Sec for GASSG)
Financial Management Service Office of the National
Program Manager
Deputy Program
Manager for Support
Deputy Program
Manager for Operations
Information
Management Bureau
Office of the Deputy Director (Operations)
(DSWD U/Sec for OPG)
NPMT
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NATIONAL PROJECT MANAGEMENT OFFICE
Office of the National Program
Manager
Planning, Monitoring and
Evaluation Division
Risk Management and Quality
Assurance Division
Social Marketing Division
Gender and Development
Division
Deputy Program Manager for
Support
Family Development
Division
Capability Building Division
Administrative Support Division
Modified Conditional Cash Transfer Division
Deputy Program Manager for Operations
Beneficiary Data Management
Division
Compliance Verification
Division
Grievance Redress Division
Institutional Partnership
Division
16
FINANCIAL MANAGEMENT SERVICE
UFMU
UFMU Director
Program Management Division
Grants Payroll Management Division
Grants Liquidation and Reporting Division
Loans Compliance Division
17
IV. COSTS AND FINANCING
22. Original loan. The overall Government program had a total estimated cost of $1.29 billion18 from 2009–2014. One third was financed through a World Bank loan of $405 million approved in 2009, one third was financed by SPSP ($400 million) and one third was financed by the Government. 23. The current loan is financed from ADB’s ordinary capital resources (OCR)19 with a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, and a commitment charge of 0.15% per annum.20 The Government’s counterpart funds estimated at $484 million were mainly to cover a share of the household grants, capacity building, and administrative costs. 24. Additional financing. The additional financing of $400 million from ADB’s ordinary capital resources has a 4-year implementation period. The loan will have a 25-year term, including a grace period of 5 years, annuity method with 10% discount factor, with an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year, and such other terms and conditions set forth in the loan agreement. The average loan maturity is 18.31 years and the maturity premium payable to ADB is 0.20% per annum. The Pantawid program is estimated to cost $6.16 billion from 2016-2019, of which the government will finance 86.2% (including taxes, duties, and financing charges) and the ADB additional financing represents 6.5%. The government has requested the World Bank to finance $450 million or 7.3% of the total. Both ADB and World Bank loans will finance 100% cash grants. The project investment plan is in Table 1 and the financing plan is in Table 2.
Table 1: Project Investment Plan ($ million)
Item Current Amount
a
Additional Financing
b Total
A. Base Costc
1. National targeting system implemented efficiently 13.7 0.0 13.7 2. Conditional health and education grants provided 798.5 5,554.8 6,353.3 3. Capacity for CCT operations strengthened 38.3 21.6 59.9 4. Systems for monitoring and evaluation 5.2 41.7 46.9 5. Advocacy (…) 5.9 5.9
6. Administration/cost of service/personnel services (…) 468.9 468.9 Subtotal (A) 855.7 6,092.9 6,948.6 B. Contingencies
7.7 0.0 7.7
C. Financing Charges During Implementationd 20.8 66.5 87.3
Total (A+B+C) 884.2 6,159.4 7,043.6
Note: Numbers may not add up due to rounding (…)= not available, CCT = conditional cash transfer a Refers to the original amount. Includes taxes and duties of $1.84 million financed from government resources.
b Includes taxes and duties of $66.5 million to be financed from government resources.
c In mid-2015 prices.
d Includes interest and commitment charges. Interest during implementation for the ADB loan has been computed
at the 5-year forward London interbank offered rate plus a spread of 0.60% less a credit of 0.1%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount.
Source: Asian Development Bank estimates.
18
Including financing charges. 19
Recurrent costs financed under the loan are for operating expenses and are only to be used for project costs. 20
The Government has provided ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending facility based on these terms and conditions, and (ii) an undertaking that these choices were its own independent decision and not made in reliance on any communication or advice from ADB.
18
Table 2: Financing Plan
Source
Currenta Additional Financing Total
Amount ($ million)
Share of Total (%)
Amount ($ million)
Share of Total (%)
Amount ($ million)
Share of Total (%)
Asian Development Bank 400.0 45.2 400.0 6.5 800.0 11.4
World Bankb 0.0 0.0 450.0 7.3 450.0 6.4
Government 484.2 54.8 5,309.4 86.2 5,793.6 82.3
Total 884.2 100.0 6,159.4 100.0 7,043.6 100.0 a
Refers to the original loan and any previous additional financing. b
The World Bank provided a loan of $405 million in 2009 but this did not appear in the original financing plan. In December 2012, the World Bank approved additional financing of $100 million. The proposed new World Bank loan of $450 million is under discussion with the government.
Source: Asian Development Bank and Department of Social Welfare and Development of the Philippines
A. Detailed Cost Estimates by Expenditure Category and Output (original project) (‘000)
Item
Total Costa Amount
% of Cost
CategoryAmount
% of Cost
CategoryAmount
% of Cost
CategoryAmount
% of Cost
Category
A. Investment Costsb
Targeted Cash Assistancec
Cash Grants (Set 1) 101,906 0 0% 101,906 100% 0 0% 0 0%
Cash Grants (Set 2) 388,133 0 0% 388,133 100% 0 0% 0 0%
Cash Grants (Set 3) 308,472 0 0% 308,472 100% 0 0% 0 0%
Advocacy and IEC Materials 3,584 0 0% 0 0% 3,584 100% 0 0%
Training, Workshops and Meetings 19,857 2,255 11% 0 0% 17,486 88% 116 1%
Consultants 2,290 0 0% 0 0% 1,575 69% 715 31%
Research and Studies 966 0 0% 0 0% 0 0% 966 100%
Project Administration, Monitoring and Management 13,561 10,476 77% 0 0% 3,085 23% 0 0%
Sub-Total (A) 838,769 12,731 798,511 25,730 1,797
B. Recurrent Costs
Salaries 11,144 0 0% 0 0% 11,144 100% 0 0%
Travel Expenses 4,560 931 20% 0 0% 180 4% 3,449 76%
Operation and Maintenance 1,284 0 0% 0 0% 1,284 100% 0 0%
B. Recurrent Costs 16,988 931 5% 0 0% 12,608 74% 3,449 20%
Total Base Cost 855,757 13,662 798,511 38,338 5,246
C. Contingenciesd 7,701 0 0% 0 0% 6,774 88% 927 12%
D. Financing Charges During Project Implementation 20,755 331 19,367 930 127
Total Project Cost (A+B+C+D)e
884,213 13,993 817,878 46,042 6,300
a Includes taxes and duties of $1.84 million financed from government resources.
b For the project administration, monitoring, and management including bank charges to LandBank for cash grant transfer.
c Cash grants (set 1 beneficiaries) are financed by World Bank (75%) and GOP (25%); cash grants (set 2) by ADB (25%) and GOP(75%); and cash grants (set 3) by ADB (95%)
and GOP(5%). ADB only finances education grants for October 2009 - January 2011 until the CVS is fully operationalized, resulting in lower overall % of ADB financing for cash grants.
The financing percentage under disbursement will be 25% for Set 2 grants, and 95% for Set 3 grants.d
Price contingencies calculated at 4.6% on local currency costs.e Total project costs includes ADB financing and full Government financing for the overall Government program.
Output 1 Output 2 Output 3 Output 4
20
B. Detailed Cost Estimates by Expenditure Category and Output (AF)
Item
Output 1 Output 2 Output 3 Output 4
Total Cost Amount % of Cost Category
Amount % of Cost Category
Amount % of Cost Category
Amount % of Cost Category
Investment Costs
Cash grants 400,000,000 - - 400,000,000 100.00% - - - -
Total Project Cost 400,000,000
400,000,000 100.00%
21
C. Detailed Cost Estimates by Financier (original project) (‘000)
Item ADB Governmenta
Amount % of Cost Category Amount % of Cost Category
A. Investment Costsb
1. Targeted Cash Assistancec
Cash Grants (Set 1) 0 0% 101,906 100% 101,906
Cash Grants (Set 2) 91,635 24% 296,498 76% 388,133
Cash Grants (Set 3) 270,818 88% 37,655 12% 308,473
2. Advocacy and IEC Materials 2,860 80% 724 20% 3,584
3. Training, Workshops and Meetings 15,526 78% 4,331 22% 19,857
4. Consultants 1,772 77% 518 23% 2,290
5. Research and Studies 875 91% 91 9% 966
6. Project Administration, Monitoring and Management 3,757 28% 9,804 72% 13,561
Sub-Total (A) 387,243 46% 451,527 54% 838,770
B. Recurrent Costs 5,056 30% 11,932 70% 16,988
Total Base Cost 392,299 46% 463,459 54% 855,758
C. Contingenciesd 7,701 100% 0 0% 7,701
D. Financing Charges During Project Implementation 0 0% 20,755 100% 20,755
Total Project Cost (A+B+C+D)e
400,000 45% 484,214 55% 884,214
% Total Project Cost 45.2% 54.8%
a Includes taxes and duties of $1.84 million financed from government resources.
b For the project administration, monitoring, and management including bank charges to LandBank for cash grant transfer.
c Cash grants (set 1 beneficiaries) are financed by World Bank (75%) and GOP (25%); cash grants (set 2) by ADB (25%) and GOP(75%); and cash grants (set 3) by ADB (95%)
and GOP(5%). ADB only finances education grants for October 2009 - January 2011 until the CVS is fully operationalized, resulting in lower overall % of ADB financing for cash grants.
The financing percentage under disbursement will be 25% for Set 2 grants, and 95% for Set 3 grants.d
Price contingencies calculated at 4.6% on local currency costs.e Total project costs includes ADB financing and full Government financing for the overall Government program.
Total
22 D. Detailed Cost Estimates by Financier (AF)
Item ADB % of
Cost Category
IBRD % of Cost
Category
Government % of Cost Category
Total Amount Amount Amount
1
Investment Costs
Conditional cash grants 400,000,000 7.2% 450,000,000 8.10% 4,704,806,214 84.7% 5,554,806,214 Training - 0% - 0% 21,595,103 100.0% 21,595,103 Cost of service/salary of job orders - 0% - 0% 109,233,026 100.0% 109,233,026 Advocacy - 0% - 0% 5,885,864 100.0% 5,885,864
Monitoring and Evaluation - 0% - 0% 41,654,319 100.0% 41,654,319 Administration - 0% - 0% 45,494,868 100.0% 45,494,868
Personnel Services - 0% - 0% 314,196,319 100.0% 314,196,319
Sub-Total (A)
400,000,000 6.6%
450,000,000 7.4% 5,242,865,713 86.0% 6,092,865,714 B. Financing charges during project implementation
66,508,483 100% 66,508,483
Total Project Cost (A+B)
400,000,000 6.5% 361,055,018 7.3% 5,309,374,197 86.2% 6,159,374,197
1 Excludes audit costs which are financed by the Commission on Audit of the Government of the Philippines
23
E. Detailed Cost Estimates by Year (original project)
(‘000)
A. Investment Costsb
1. Targeted Cash Assistancec
Cash Grants (Set 1) 101,905 20,381 20,381 20,381 20,381 20,381
Cash Grants (Set 2) 388,135 77,627 77,627 77,627 77,627 77,627
Cash Grants (Set 3) 308,470 61,694 61,694 61,694 61,694 61,694
2. Advocacy and IEC Materials 3,583 691 729 717 729 717
3. Training, Workshops and Meetings 19,855 5,888 3,397 3,776 3,397 3,397
4. Consultants 2,290 106 573 573 519 519
5. Research and Studies 967 34 287 36 287 323
6. Project Administration, Monitoring and Management 13,561 11,093 617 617 617 617
Sub-Total (A) 838,766 177,514 165,305 165,421 165,251 165,275
B. Recurrent Costs 16,989 4,385 3,151 3,151 3,151 3,151
Total Base Cost 855,755 181,899 168,456 168,572 168,402 168,426
C. Contingenciesd 7,701 0 0 2,567 2,567 2,567
D. Financing Charges During Project Implementation 20,756 0 5,189 5,189 5,189 5,189
Total Project Cost (A+B+C+D)e
884,212 181,899 173,645 176,328 176,158 176,182
% Total Project Cost 21% 20% 20% 20% 20%
a Includes taxes and duties of $1.84 million financed from government resources.
b For the project administration, monitoring, and management including bank charges to LandBank for cash grant transfer.
c Cash grants (set 1 beneficiaries) are financed by World Bank (75%) and GOP (25%); cash grants (set 2) by ADB (25%) and GOP(75%); and cash grants (set 3)
by ADB (95%) and GOP(5%). ADB only finances education grants for October 2009 - January 2011 until the CVS is fully operationalized, resulting in lower overall % of
ADB financing for cash grants. The financing percentage under disbursement will be 25% for Set 2 grants, and 95% for Set 3 grants.d
Price contingencies calculated at 4.6% on local currency costs.e Total project costs includes ADB financing and full Government financing for the overall Government program.
2013 2014Total Costa 2010 2011 2012
24 F. Detailed Cost Estimates by Year (AF)
Item Total Cost 2016 2017 2018 2019
Investment Costs
Targeted cash assistance 400,000,000 100,000,000 100,000,000 100.000.000 100.000.000
Total Project Cost 400,000,000 100,000,000 100,000,000 100,000,000 100,000,000
25
Attachment to Schedule 3
G. Allocation and Withdrawal of Loan Proceeds (Original Loan)
ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (Social Protection Support Project)
CATEGORY ADB FINANCING
Number
Item
Total Amount Allocated for ADB Financing Percentage and Basis for Withdrawal
from the Loan Account ($000)
Category Subcategory
1 Conditional Cash Grants* 372,671
1A Set 2 grants 66,847 25% of total expenditure claimed
1B Set 3 grants 305,824 95% of total expenditure claimed
2 Advocacy and IEC Materials 1,100 80% of total expenditure claimed
3 Training, Workshops and Meetings
13,736 78% of total expenditure claimed
4 Consulting Services 1,157 77% of total expenditure claimed
5
Research and Studies 1,579
91% of total expenditure claimed
6
Project Administration, Monitoring, and Management
2,727 28% of total expenditure claimed
7
Recurrent Costs 4,277
30% of total expenditure claimed
10 Unallocated 2,753
Total 400,000
* The 24% financing of Set 2 and 88% financing of Set 3 in the detailed cost table) reflects full GOP financing of the health grants for 15 months. The financing percentage under disbursement will be 25% for Set 2 grants, and 95% for Set 3 grants".
26 H. Allocation and Withdrawal of Loan Proceeds (AF)
ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (Social Protection Support Project – Additional Financing)
Number Item
Total Amount Allocated for ADB Financing
($) Basis for Withdrawal from the Loan
Account
Category Subcategory
1 Conditional Cash Grants 400,000,000
1A Conditional Cash Grants (Year 1)*
100,000,000 20% of total expenditure claimed
1B Conditional Cash Grants (Year 2)*
100,000,000 20% of total expenditure claimed
1C Conditional Cash Grants (Year 3)*
100,000,000 20% of total expenditure claimed
1D Conditional Cash Grants (Year 4)*
100,000,000 20% of total expenditure claimed
Total 400,000,000
* Subject to the condition for withdrawal described in paragraph 6 of Schedule 3 of the Loan.
27
I. Contract and Disbursement S-curve
25. Original loan: Contract awards and disbursement at project effectiveness.
Contract Awards (in USD million)
Disbursements (in USD million)
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
2011 0.0 0.0 4.2 21.7 25.9 2.0 3.0 36.0 23.4 64.4
2012 8.0 10.0 15.0 20.0 53.0 0.0 28.0 27.0 27.0 82.0
2013 12.0 24.0 26.0 26.0 88.0 0.0 28.2 28.2 28.2 84.6
2014 12.0 24.0 27.0 28.0 91.0 0.0 28.2 28.2 28.1 84.5
2015 13.0 25.0 27.0 29.7 94.7 0.0 28.2 28.2 28.1 84.5
2016 47.4 0.0 0.0 0.0 47.4 0.0 0.0 0.0 0.0 0.0
Total Contract Awards 400.0 Total Disbursements 400.0
0
50
100
150
200
250
300
350
400
450
Contract Awards
Disbursements
14
28
26. Contract awards and disbursement for the original loan as of 30 April 2015.
Contract Awards (in USD million)
Disbursements (in USD million)
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
2011 0.0 5.2 10.5 32.5 48.3 20.0 5.2 5.3 40.4 70.9
2012 5.5 0 28.1 66.8 100.4 0.7 4.7 13.3 76.5 95.2
2013 3.7 23.7 11.9 41.8 81.0 3.6 22.7 0.3 56.6 83.1
2014 6.8 28.8 15.8 34.3 85.8 1.0 32.2 11.4 30.8 75.5
2015 3.3 29.9 20.0 23.4 76.6 7.6 25.9 11.8 16.8 62.0
2016 7.9 0.0 0.0 0.0 7.9 13.3 0.0 0.0 0.0 13.3
Total Contract Awards 400.0 Total Disbursements 400.0
0
50
100
150
200
250
300
350
400
450
Contract Awards
Disbursements
29
27. Contract awards and disbursement for the AF. Contract awards refers to the cash grant payroll.
Contract Awards (in USD million) Disbursements (in USD million)
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
2016 100 100 100 100
2017 100 100 100 100
2018 100 100 100 100
2019 100 100 100 100
Total Contract Awards 400.0 Total Disbursements 400.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
20
16 Q
1
20
16 Q
2
20
16 Q
3
20
16 Q
4
20
17 Q
1
20
17 Q
2
20
17 Q
3
20
17 Q
4
20
18 Q
1
20
18 Q
2
20
18 Q
3
20
18 Q
4
20
19 Q
1
20
19 Q
2
20
19 Q
3
20
19 Q
4
20
20 Q
1
Contract Awards
Disbursements
30
V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
28. Original loan. An assessment of the financial management system of the DSWD was undertaken in 2009 to ensure the Department’s readiness to implement the project. The review covered the DSWD’s financial management arrangements in the National Office, particularly the adequacy of budgeting, accounting, funds flow, financial reporting and internal control systems. A review was also made of the financial reporting of the DSWD Field Offices (Regional Offices) to the National Office. 29. On the whole, the financial management system of the DSWD met the financial management requirements of the Project. However, given the substantial amount of financial data and transactions, the assessment recommended that DSWD will have to ensure that the needed complementary staff and financial arrangements both in the National and Field Offices are adequately provided. One of the mandatory financial arrangements was the decentralization to the Regional Project Management Office of the audit and verification of over-the-counter (OTC) grant payments to households and the hiring of additional finance project staff for the RPMOs. It was also necessary to strengthen the counter-validation of payrolls for the OTC payments at the payment site and to put in place additional financial controls at DSWD field offices to prevent double payments to beneficiaries or payment to noncompliant beneficiaries, as well as to ensure prompt disbursements. Any irregularities or exceptions noted from the audit and/or verification by the RPMOs were to be communicated immediately to the concerned Land Bank servicing branch and to the finance services unit at the DSWD central office for corrective action. DSWD confirmed that the above mandatory requirements were fully complied with during the implementation of the Project. 30. Additional Financing. An updated financial management assessment (FMA) of the DSWD was undertaken in 2013 for the KALAHI-CIDSS National Community-Driven Development Project21 and for the SPSP additional financing in 2015, in compliance with Operations Manual Section G2/BP and Operations Manual Section G2/BP issued by ADB. 31. The updated FMA finds the overall fiduciary risk, pre-mitigation, to be substantial. The FMA identified substantial risks in: (i) accounting and internal control mechanisms and (ii) internal and external audit; and moderate risks in (iii) personnel capacity due to increased coverage of the program, (iv) information systems and (v) funds flow. The FMA detailed findings and mitigation measures and recommendations are in a Supplementary Appendix to the RRP (LD16). A summary table is in Appendix 4. 32. With risk mitigation measures taken into account, the overall fiduciary risk is considered to be moderate. 33. A draft risk management action plan to address key COA findings and satisfy the condition for loan disbursement is in Appendix 5. ADB and DSWD will agree on the plan and monitor its implementation.
21
L3100-PHI which was approved on 16 December 2013 and became effective on 10 June 2014.
31
B. Disbursement
34. Original loan. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),22 and detailed arrangements agreed upon between the Government and ADB. 35. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),23 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. 36. No withdrawals will be made from the loan account for conditional education grants:
(i) for beneficiaries whose compliance is verified prior to 1 January 2011, unless manual checking and verification procedures as agreed with ADB are being complied with;
(ii) for beneficiaries whose compliance is verified after 1 January 2011 or such later date as ADB agrees, unless the CVS is fully operational for the project areas and used as the basis for the payments to participating beneficiaries.
37. DSWD established and administers two imprest accounts for the current loan in US dollars at a bank acceptable to ADB. Imprest Account 1 covers allocation for cash grants. The maximum ceiling of the Imprest Account 1 will not at any time exceed the estimated ADB financed expenditures to be paid from the imprest account for the next 6 months or 10% of the cash grant component), whichever is lower. Imprest Account 2 provides for project management and operations cost. The maximum ceiling of Imprest Account 2 will not at any time exceed the estimated ADB financed expenditures to be paid from the imprest account for the next 6 months or 10% of the project management and operations cost, whichever is lower. The request for initial advances to the imprest accounts were accompanied by Estimates of Expenditure Sheet24 setting out the estimated expenditures to be funded through each imprest account for the next six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest accounts have been duly opened. For every liquidation and replenishment request of the imprest accounts, DSWD will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the DSWD’s records. After the midterm review mission, ADB approved DSWD’s request to close imprest account 2 and use reimbursement method. 38. A MOA between DSWD and DSWD-ARMM exists for the implementation of the Pantawaid Pamila, and will be used as basis for the transfer of funds. The MOA includes the provisions of Commission on Audit (COA) Circular No. 94-013 dated December 13, 1994 regarding the Rules and Regulations in the Grant, Utilization and Liquidation of Funds Transferred to Implementing Agencies. The operational expenses of DSWD-ARMM will be transferred in a quarterly basis subject to replenishment upon submission of Statement of Receipts and Disbursements (SORD) for at least 75% disbursement. The SORD shall be audited by COA Resident Auditor of DSWD ARMM. The succeeding release will be based on submission of audited SORD.
22
Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 23
Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf 24
Available in Appendix 29 of the Loan Disbursement Handbook.
32
39. To facilitate payment for cash grants and for project management and operation costs, the DSWD opened and administers two peso current accounts as conduit for the two Imprest Accounts. Transfer of funds from the Imprest Accounts to the conduit peso current accounts are made on written instructions from the DSWD. For the cash grants, transfers will be made directly from the conduit peso account to Land Bank to beneficiary accounts based on estimated written instructions from DSWD, based on the CVS statement of eligible households for payment. For the project operating costs, only upon request of DWSD, and based on estimated project management and operating costs and valid payables at the RPMOs, will the transfer be made from the conduit peso current account to the RPMOs sub-accounts. The effect of any foreign currency exchange gains or losses in the operation of conduit peso accounts or sub-accounts shall be borne by GOP. 40. Quarterly liquidation and replenishment of Imprest Account 1 for cash grants expenditures will be conducted. For every liquidation and replenishment request of the imprest account for cash grants expenditures, DSWD will furnish ADB with
(i) Imprest account reconciliation and the related bank statements of the imprest accounts verifying that funds have been transferred to compliant beneficiaries; and
(ii) Until computerized verification system (CVS) is operational: certification from DSWD that all beneficiaries of the cash grants have complied with the conditions set forth in the Loan Agreement;
(iii) After CVS is operational: certification from DSWD that all beneficiaries of the cash grants have complied with the conditions set forth in the Loan Agreement; and consolidated statements from the CVS payroll of beneficiaries that have complied with the conditions of the cash grants.
41. The regional department (SERD) reviews and endorses the documentation before it is submitted to the Controller's department. 42. Statement of expenditures (SOEs) procedure is used for reimbursement and liquidation and replenishment of imprest account 2. The maximum ceiling of $100,000 per payment applies. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.25 43. Before the submission of the first withdrawal application, the borrower submitted to ADB evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000. Individual payments below this amount should be paid by the EA and subsequently claimed from ADB (i) through reimbursement; or (ii) from the imprest account, unless otherwise accepted by ADB. 44. The project funds are composed of the loan proceeds and government counterpart fund. The funds from the loan proceeds will flow from the ADB to the Bureau of Treasury account at the
25
Checklist for SOE procedures and formats are available at: http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls
33
Bangko Sentral ng Pilipinas (BSP). After issuance of Notices of Cash Allocation (NCA) by DBM, the funds will be credited to the designated account of the project maintained at DSWD central office. GOP funds shall be disbursed in accordance with the Philippine budgetary system and the New Government Accounting System (NGAS). All GOP disbursements shall be covered by allotments and Notice of Cash Allocation (NCA) issued by the Department of Budget and Management, and shall be always subject to existing budgetary, accounting and auditing rules and regulations. Funds flow arrangement is presented in Figure 1. 45. Additional Financing. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2015, as amended from time to time),26 and detailed arrangements agreed upon between the Government and ADB. 46. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),27 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. 47. The reimbursement method will be used for all disbursement. The Government will not open an imprest account. The loan proceeds will flow from ADB to the Bureau of Treasury account at the BSP. Disbursement of Pantawid cash grants to the beneficiaries will follow the funds flow procedures specified in the Pantawid Operations Manual’s FM sub-manual. The funds flow for the Pantawid Pamilya is presented in Figure 2. 48. The statement of expenditures (SOE) procedure will be used for reimbursement, using the special SOE form in Appendix 6. The maximum ceiling of $100,000 per individual payment applies.28 SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.29 The DSWD Central Office shall prepare SOEs based on the payroll for cash grants summarized by region and number of households. The DSWD Central Office also certifies that all beneficiaries of the cash grants have complied with the conditions set forth in the Loan Agreement and submits this along with the SOE to the Department of Finance (DOF) to prepare the Withdrawal Application. ADB receives the withdrawal application (WA) and deposits the equivalent amount from loan proceeds to the designated account maintained by the DOF. Each withdrawal application for each year should not exceed $100 million per the Loan Agreement (unless a reallocation is requested and processed). The SOE attached to the WA should show an expenditure of at least $500 million for cash grants. 49. Before the submission of the first WA, the Borrower submits to ADB evidence of the authority of the person(s) who will sign the WAs on behalf of the Borrower, together with the authenticated specimen signatures of each authorized person. ADB and DSWD should agree on the time-bound risk management action plan (draft in Appendix 5) prior to submission of the first withdrawal application. The minimum value per WA is US$100,000.
26
Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 27
Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf 28
Pantawid cash grant payments are at the household level, and at current benefit levels amount to maximum P2,000 per month, or P4,000 per 2-month pay period, so this ceiling will not be reached.
29 Checklist for SOE procedures and formats are available at: http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls
34 Figure 1: FUNDS FLOW ARRANGEMENT (Original loan)
Figure 2: PANTAWID PAMILYA FUNDS FLOW ARRANGEMENT
a Covering cash grant allocations.
b For project management and operations cost.
Pantawid Pamilya = Pantawid Pamilyang Pilipino Program, DBM = Department of Budget and Management, DSWD = Department of Social Welfare and Development, GOP = Government of the Philippines, NCA = notice of cash allotment, OTC = over-the-counter.
ADB
Bangko
Sentral ng
Pilipinas
Bureau of
Treasury
DBM
Issuance of
NCA
Imprest Dollar
Account 2b
Imprest Dollar
Account 1a
Peso
Account 2b
LandBank
Peso
Account 1a
DSWD-GOP
Counterparts
(4Ps)
Over-the-Counter
Withdrawal by
Beneficiaries
(OTC)
Credit to Individual
Bank Accounts of
Beneficiaries (Cash
Card)
Field Offices/
Regional Offices
Project
Payment for
Central Office
Creditors
Land Bank servicing
branches
(Peso Account)
4Ps OTC Set 3
Statement of
Expenditures
(SOE)
Withdrawal
Application
Consolidated
SOE
1 23
4
5.a
6.a
5.b
6.b
7.
a
7.b 7.c
7.e
7.d
7.f
8
9
35
C. Accounting
50. Original loan. The DSWD, at all levels, including each of the RPMOs, will maintain separate project accounts and records for all project expenditures financed by the ADB loan. Project accounts will follow international accounting principles and practices and existing accounting and auditing rules and regulations. 51. Additional Financing. The DSWD will maintain separate Pantawid program accounts and records for all Pantawid program expenditures.30 There will be no special project bank accounts. DSWD will prepare notes to the annual entity financial statements that reflect (i) total Pantawid expenditure for the year, (ii) expenditure on CCT grants, and (iii) other Pantawid expenditure. The notes to the financial statement will also indicate specifically that “during the year, $__ million was reimbursed by ADB for the purposes of the CCT grants.” D. Auditing
52. Original loan. DSWD will cause the detailed consolidated project accounts to be audited in accordance with International Standards on Auditing and/or in accordance with the Government's audit regulations by the Commission on Audit or an independent auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within 6 months of the end of the fiscal year by the executing agency. The annual audit report will include a separate audit opinion on the use of the imprest accounts and SOE procedures. The Government and the DSWD have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. 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. A biannual internal audit of the program will be undertaken by the Internal Audit Services of the DSWD. 53. Additional Financing. The Borrower shall (i) maintain accounts and records for the Pantawid; (ii) prepare annual financial statements for DSWD, which will include the Pantawid in accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors’ opinion on the financial statements and use of the Pantawid proceeds for conditional cash grants (including the Education Grants and the Health Grants) ) and a management letter (which sets out the deficiencies in the internal control of DSWD that were identified in the course of the audit, if any); and (v) furnish to ADB, within one month of approval by the relevant authority or 9 months after the end of each related fiscal year, whichever is earlier, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request.. ADB will disclose (i) the audit opinion on DSWD’s entity financial statements (ii) the information in the notes to the accounts pertaining to the Pantawid program by posting them on ADB’s website. DSWD shall enable ADB, upon ADB's request, to discuss the financial statements and DSWD’s financial affairs where they relate to Pantawid with the auditors appointed.
30
The use of ‘project accounts’ does not mean bank accounts, but separate records, budget codes, or line items.
36
VI. PROCUREMENT AND CONSULTING SERVICES A. Advance Contracting and Retroactive Financing 54. Advance Action for Recruitment of Consultants (original loan). The Government requested advance action for the recruitment of consultants for NPMO and RPMO project personnel. However, during project implementation, DSWD did not seek loan financing for staff already hired. During the midterm review mission, DSWD indicated that loan proceeds will be used to hire additional contractual staff requirements, adhering to ADB Guidelines on the Use of Consultants. The procurement plan was revised accordingly. 55. Retroactive Financing (original loan). The Government requested retroactive financing for expenses for the NHTS-PR and the conditional cash grants for education made not earlier than 12 months before loan signing, and not later than date of loan effectivity. As a general rule, retroactive financing is permitted only if (i) it is specifically agreed by ADB and the Borrower in the loan agreement; (ii) the goods, works, services, and consultants for which it is requested are procured in accordance with ADB’s Procurement Guidelines or Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers under arrangements acceptable to ADB; and (iii) the amount to be retroactively financed does not exceed 20% of the loan amount. 56. Retroactive Financing (additional financing). Retroactive financing can be used for up to 20% of the loan balance and for cash grants up to 12 months before loan signing. B. Procurement of Goods, Works and Consulting Services
57.. Original loan. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines. Before the start of any procurement, ADB and the Government will review the public procurement laws of the national and local governments to ensure consistency with ADB’s Procurement Guidelines. 58. There are no international and national competitive bidding under the current project. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000. 59. The original loan procurement plan, prepared in accordance with OSFMD templates, has been moved to Appendix 1. 60. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants.31 All opportunities must be published through both ADB Consulting Services Recruitment Notices32 (CSRN) and Philippine Government Electronic Procurement System33 (PhilGEPS). The terms of reference for all consulting services are detailed in Section D. During project approval, a total of a total of 2,931 person-months (individual and national consultants) of consulting services were identified as a requirement for assistance in project management at national and local level (2,907 person-months), and strengthening of the Management Information System (24 person-months). Firms will be recruited to undertake monitoring and evaluation studies, including a Family Development Session study, and a women empowerment 31
Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation
32 Available at http://csrn.adb.org
33 Available at http://www.philgeps.net/
37
study, using fixed budget selection (FBS). The firm to undertake impact evaluation will be recruited using quality and cost based selection (QCBS). The firm to undertake the spot checks will be recruited using single source selection of the same firm recruited to undertake the spot checks under Set 1 of the Pantawid. Single source selection is justified on the basis of consistency of technical approach and continuity, which is important for this assignment. The firm to conduct spot checks in Set 1 areas were conducted competitively following World Bank guidelines. 61. Additional financing. There will be no loan-financed consulting services or procurement.
VII. SAFEGUARDS
62. This Indigenous Peoples Plan (IPP) is an update of the original plan prepared for the Philippines Social Protection Support Project, as part of the request for additional financing.34 The project supports the Pantawid (formerly 4Ps) conditional cash transfer (CCT) program, which aims to significantly improve the health, education, and income status of poor indigenous peoples (IP) nationwide. The update incorporates lessons learned from the ongoing project.
63. Many positive measures are currently in place to promote inclusion of IPs. Of the 4.4 million Pantawid beneficiary households, 13.3% belong to IP groups. In 2014 the Department of Social Welfare and Development (DSWD) developed guidelines for the Modified CCT for IP in geographically isolated and disadvantaged areas after a series of regional participatory consultations involving indigenous cultural communities. DSWD has developed family development session modules tailored to specific tribal groups. The majority of the original measures to support positive effects and mitigate negative effects are retained in their original form, one has been completed, and DSWD has proposed a number of new measures since the additional financing is overwhelmingly for cash transfers under Output 2.35 The budget for IPP implementation is integrated into the total project budget. Outputs (unchanged)
Anticipated positive effects (unchanged)
Possible negative effects (unchanged)
Measures
Output 1:
National targeting system to select poor households implemented efficiently
a. Poor IP households benefit from Pantawid b. Inclusion of poor IP households in the Listahanan database and selected as beneficiaries of other social protection programs
Possible exclusion of poor IP households residing in geographically isolated and disadvantaged areas due to lack of information and absence during Listahanan survey
• IP tribal leaders to be identified and oriented on the Listahanan (unchanged)
• Disseminate information in IP language and through local media and channels accessed by IPs (unchanged)
• Coordinate with NGOs working in IP communities to disseminate information and schedule assessments at dates and convenient times (unchanged)
• Provide orientation to newly hired staff on IP situation and issues (unchanged)
• Ensure assessments include data on remote and hard-to-reach areas, migrants, IPs, those in stigmatized occupations, etc (unchanged)
• Ensure that assessment results are analyzed and included in the database to provide a nuanced and comprehensive understanding of the vulnerabilities of the above groups. The database should be available for other social protection and
34
The project impact and outcome remain unchanged. The overall project (including the additional financing) is categorized as B for indigenous peoples.
35 References to the 4Ps have been changed to Pantawid, and Listahanan now refers to the national household targeting system. Other small edits have been made for clarity, but the meaning remains unchanged.
38
Outputs (unchanged)
Anticipated positive effects (unchanged)
Possible negative effects (unchanged)
Measures
poverty reduction programs (unchanged)
Output 2:
Conditional health and education cash grants to poor households provided
a. Reduced maternal mortality and infant morbidity and mortality b. Improved school attendance rates
a. Perpetuation of traditional gender roles b. Increased workload for some women c. Some members of households with polygamous unions may be excluded+
• Disseminate information on Pantawid through local channels and media accessed by IPs and in IP language (unchanged)
• Ensure bank accounts opened are in the name of women IPs (except when male single HHs are targeted) (unchanged)
• Support referrals to service providers for literacy and numeracy training (unchanged)
• Provide intensive training on use of ATM and cash cards (completed)
• Explore provision of transport assistance through LGU or NGOs/CS organizations to IP HHs who have to travel long distances to get their grants (unchanged)
• Mobilize IP tribal leaders to advocate compliance with conditionalities and promotion of joint home care responsibilities (unchanged)
• Develop language and culturally appropriate family development sessions (unchanged).
• Through monthly meetings, support organization of IP HHs around their rights and familial/community issues (unchanged)
• Develop guidance on how to support polygamous HHs with cash grants (unchanged)
• In remote areas, undertake assessment of and coordination with local NGOs and other non-state health and education service providers to fill gaps in government service provision and support inclusion of IPs (unchanged)
• Consult NCDDP and NGO service providers in engaging with IP communities (unchanged)
• Ensure learning materials are easily understood and learning methodologies are appropriate for IPs (e.g. participatory) (revised)
• Deliver cash grants in the most appropriate mode for IP beneficiaries (added)
• Regularly update and monitor compliance with Pantawid conditions (per program guidelines) (added)
• Ensure the grievance system is easy to access and use (added)
• Coordinate supply side concerns in the various levels of advisory committees for discussion & action (added)
• Recognize IKSP on health, nutrition and education (added)
• Build capacity36
of IP leaders to support program monitoring (added)
Output 3:
Capacity for CCT program operations strengthened
Program implementers are able to effectively engage with IP communities
None
• Target recruitment of 10% total IP staff (e.g. MLs, SWAs, CFs, CFAs) in IP areas OR ensure that IP are hired for these positions are in proportion to the IP beneficiaries (revised)
• Provide intensive training and coaching to IP staff to ensure skills development (unchanged)
• Provide orientation on IP situation and issues and effective ways of engaging with IPs to all existing & new Pantawid staff at various levels (unchanged)
Output 4:
Systems for monitoring and evaluation of social
a. Better tracking of program outcomes and impacts
None • Study IP situation to identify gender related cultural norms and practices to minimize exclusion of IP women and better respond to their needs (unchanged)
• Include IP-specific equality indicators in M&E system (unchanged)
36
Capacity building measures may include training activities to support participatory monitoring
39
Outputs (unchanged)
Anticipated positive effects (unchanged)
Possible negative effects (unchanged)
Measures
protection programs improved
b. Lessons are learned on effective ways of engaging IP women and men
• Regularly collect and analyze sex-disaggregated data to inform policy and program planning for IPs (unchanged).
• Consider gender and ethnicity specific challenges and concerns in annual and mid-term reviews (unchanged)
• Document best practices in gender-sensitive interventions for IP communities (unchanged)
• Share lessons learned with other programs and agencies working with IP communities (unchanged)
ATM = automated teller machine, CCT = conditional cash transfer, CF = community facilitator, CFA = community facilitator aide, IKSP = indigenous knowledge systems and practice, IP = indigenous people, ML = municipal link, NCDDP = National Community Driven Development Program, NGO = nongovernment organization, SWA = social welfare adviser
64. Implementation arrangements. The implementation arrangements and estimated costs of the actions are integrated into the overall implementation arrangements and total project budget. Implementation of the original IP plan has been consistently satisfactory, supervised by the National Project Management Office (NPMO) IP Unit with the support of 17 regional IP focal points.37 The IP Unit and the Family Development Units will be responsible for implementing many of the above measures. The National Commission for Indigenous Peoples (NCIP) is a member of the Pantawid National Advisory Committee and its provincial and municipal representatives coordinate with Pantawid at the local levels. The program has an existing and grievance redress procedure, described below, which is being strengthened as part of the program’s continuing efforts to promote IP sensitivity across the various program units and business processes. 65. Consultation, disclosure and grievance redress procedures. The IPP is designed to ensure that IP communities continue to be meaningfully consulted and participate in project outputs. Specific measures include, among others, the continuing identification and orientation of IP tribal leaders on the Listahanan; dissemination of information in IP languages and through local media and channels accessed by IPs; coordination with NGOs working in IP communities to disseminate information and schedule assessments at dates and times convenient to community members; development of language and culturally appropriate family development sessions based on discussions with and feedback from IP communities and representatives; monthly meetings to support organization of IP households around their rights and familial and community issues; consultation with CDDP and NGO service providers on appropriate strategies to engage with IP communities; ensuring learning materials are easily understood and learning methodologies are appropriate for IPs; determination of most appropriate mode to deliver cash grants through discussion with IP communities and their representatives; and, continuing efforts to strengthen participatory monitoring of program impacts on IPs.
66. The Pantawid Grievance Redress System (GRS) tracks and resolves complaints, including targeting errors, payment irregularities, and issues regarding program conditionalities that must be fulfilled by beneficiary households. Complaints may be filed in hard copy with program facilitators, texted to a dedicated SMS hotline, phoned in, and so on. In order to ensure that complaints are resolved in a culturally appropriate manner, issues are identified during the IP Unit’s regular monitoring activities, and resolutions are provided at the regional and national level. As part of continuing efforts to mainstream IP sensitivity across program divisions, the IP Unit will continue to identify ways to strengthen the grievance system and ensure this is easy to
37
In 2015 the IP Unit was merged with the Modified Conditional Cash Transfer (MCCT) Division
40
access and responsive to IP communities. The ongoing ADB TA will strengthen NGO partnerships in the GRS.
67. The updated IPP will be disclosed to the communities by sending the report to the regional offices. The Regional MCCT & IP focals will forward the updated IPP to the community facilitators and municipal links to share these with the IP communities.
68. Monitoring and Reporting. Semi-annual progress reports will continue to be prepared by the MCCT-IP Unit and will be submitted to ADB (monitoring table in Appendix 2). These progress reports will provide updates on IP beneficiaries, progress and challenges related to IPP implementation, and any grievances received. Data will be disaggregated by sex and ethnicity. M&E System guidelines for geographically isolated and disadvantaged areas (attached) have been developed for MCCT-IP to ensure that the system is able to capture IP related indicators, as reflected in the M&E forms. The system was approved in January 2015 and is being implemented in the regional offices.
VIII. GENDER AND SOCIAL DIMENSIONS 69. The proposed additional financing for the Social Protection Support Project (SPSP) will retain the original gender theme. The Department of Social Welfare and Development (DSWD) has implemented the original gender action plan (GAP) in a satisfactory manner, with regular updates included in the SPSP progress reports. the Pantawid NPMO Gender and Development (GAD) Unit supervises implementation, and and the regional focals are dedicated to ensure GAD mainstreaming on field both at the organizational and beneficiaries level. Pantawid monitoring and evaluation includes sex-disaggregated data, and gender targets in the design and monitoring framework (DMF) indicators have been met or exceeded. The family development session modules integrate core gender messages, and the National Advisory Committee resolution no. 23 of 2014 requires men’s participation at a specially designed session that covers reproductive rights and violence against women. Minor updates to the original gender action plan reflect Pantawid program adjustments and the revised DMF.
PROJECT OUTPUT ACTIONS TO ENSURE GENDER BENEFITS
Output 1: National
targeting system to select poor households implemented efficiently
Disseminate information on objective and dates of survey through a range of appropriate local media and channels accessed by women (including posting information in areas frequented by women such as markets, mobile microphones, interpersonal communication through social welfare, health, education, non-government organization (NGO) officials. Unchanged. The DSWD GAD Unit closely coordinates with the Listahanan office on these actions.
Ensure that survey schedules take into consideration women’s work schedules. Unchanged.
Output 2:
Conditional health and education cash grants for poor households provided
Ensure pregnant women are required to attend health center or rural health unit according to the Department of Health protocol. Unchanged. This is one of the CCT program’s core health conditionalities
Disseminate information through local media and channels to women on the Pantawid Pamilyang Pilipino Program (Pantawid), cash entitlements, and conditionalities, to ensure that they have sufficient knowledge of their rights. Changed to: Disseminate information through local media and channels about Pantawid program, cash entitlements, conditionalities, and women’s success stories to ensure that women have sufficient knowledge of their rights, and can draw inspiration from each other. (Minor editing only but the essence is the same as the previous one)
Hold consultations with women in each municipality so that the distribution of cash transfers take place on convenient days and hours and under culturally acceptable conditions. Unchanged.
Ensure that bank accounts opened are in the name of women beneficiaries (except where cash grants are being provided to single male headed households) Unchanged.
41
PROJECT OUTPUT ACTIONS TO ENSURE GENDER BENEFITS
Ensure that marriage certificate is not used as a pre-requisite for validation and opening of bank accounts. Unchanged.
Explore options for providing transport assistance to households who have to travel long distances to get their grants through local government units and/or NGOs/civil society organizations. Unchanged.
Provide briefing to beneficiaries on prevention of exploitation and abuse, any acts committed against women by implementers, the grievance redress system and its reporting channels and punitive measures. Changed to: Develop a mechanism to capture any instances of gender-based violence experienced by Pantawid beneficiaries in MIS. Include enhancements in the GRS and refer cases through proper channels.
Ensure family development sessions promote gender sensitive practices among couples, joint home care management and gender-fair child rearing practices. Changed.
Develop new FDS training materials (or adapt from existing training materials) on citizenship and rights, politics, leadership and teamwork skills as well as violence against women and building non-violent, healthy intra-familial relationships. Unchanged.
Encourage 70% male attendance for specially designed sessions on gender and development, violence against women and building non-violent, healthy intra-familial relationships, joint home care management and gender-fair childrearing practices. Males/fathers will be consulted on the times that this session will be held so as not to interfere with their work schedule. Changed to: Following NAC resolution no. 23 of 2014, encourage and monitor 70% male attendance for specially designed family development session that covers reproductive rights and violence against women.
Ensure that monthly meetings support and facilitate women's organization and mobilization around their entitlements, individual, familial and community issues (e.g. crèches for children so that women may travel away from home to collect cash grants, to markets and undertake other out of home chores; issues of domestic violence; alcoholism of men; etc.) Changed to: (1) Ensure that monthly meetings provide support mechanisms to address women’s expressed practical gender needs (e.g., crèches for children, etc.) (2) Ensure that monthly meetings facilitate women’s mobilization and organization to address their strategic gender needs (e.g., leadership, breaking stereotypes, etc.) Note: Action plan has been unbundled because there are essentially two major concepts-one pertains to addressing practical gender needs, the other strategic gender needs; re-stating for clarity.
Develop language specific, culture and gender sensitive training materials for trainers and hand-outs for participants. Ensure that training materials for illiterate beneficiaries include visuals and other forms which they are able to understand. Unchanged (minor editing only).
Develop training curriculum for parent leaders on the FDS to support them to co-facilitate FDS. Changed to: Train and mentor parent leaders to become Pantawid Program champions, articulators of change, and to serve as resource persons and/or co-facilitators of the FDS.
Provide beneficiaries appropriate information about support and services provided by NGOs and other service providers, e.g. livelihood and income generating training and opportunities, adult literacy classes, alternative/crisis centers for women and children victims of abuse, legal aid, etc. Unchanged (minor editing/clarification only).
Output 3: Capacity
for CCT program operations improved
Provide training and 6 monthly refresher courses on gender and prevention of sexual exploitation, abuse and harassment and anti-corruption and reporting mechanisms to all existing and new Pantawid staff at various levels. Changed to: Provide orientation on gender-based violence and other gender-related issues, their prevention and management, the application of legal protocols, as well as available programs, services and interventions to at least 1,400 Pantawid staff at various levels (most of these are delivered and are part of Regional GAD Capacity Building Plans; now, there is a need to tackle Gender-Based Violence and legal protocols to aid field staff for better case management of gender-related issues confronting beneficiaries)
42
PROJECT OUTPUT ACTIONS TO ENSURE GENDER BENEFITS
Undertake increased coordination with the DSWD GAD Focal Person and GAD Technical Working Group and ensure inclusion of GAD mainstreaming initiatives for the Pantawid Program in the GAD Plan and Budget of the agency. Unchanged. Regularly done.
At least 80% of parent leaders, of whom at least 95% are women, participate in Pantawid leadership training from 2016-2019. Added.
Output 4: Systems
for monitoring and evaluation of social protection programs improved
Integrate gender equality outputs and outcome indicators into the M&E system. Unchanged.
Ensure that sex-disaggregated data is collected, analyzed and included in the reporting on program coverage, income of women, nutritional status, access to health and education as well as data on out-of-school children to help identify ways to strengthen conditional cash transfer programs and referrals. Unchanged.
Ensure that yearly and mid-term reviews consider gender and ethnicity specific challenges and concerns. Unchanged.
Ensure indicators are linked with the Philippine Commission on Women-NEDA Harmonized GAD Guidelines for project design, implementation and monitoring Unchanged.
DSWD = Department of Social Welfare and Development, FDS = family development session, GAD = gender and development, M&E = monitoring and evaluation, NEDA = National Economic and Development Authority Source: Asian Development Bank.
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Revised Design and Monitoring Framework38
Impacts the Project is aligned with:
Current project: Income poverty and non-income poverty reduced
Overall project: Unchanged (Philippine Development Plan 2011–2016 Midterm Update)a
Results Chain Performance Indicators with Targets and Baselines
Data Sources and Reporting Mechanisms
Risks
Outcome Current project Increased consumption and utilization of education and health services among poor households and women beneficiaries of the 4Ps
Current project by 2015: a. At least 10% increase in average per capita consumption of beneficiaries in target communities (2008 baseline: $211 per capita per year) b. At least 90% each of boys and girls 6–14 years old in poor beneficiary households attend school (2008–2009 baseline: 85.1%) c. At least 70% of pregnant women deliver in a health facility (2008 baseline: 44.5%) d. At least 80% of births are delivered by skilled
a–f. Regular impact evaluation surveys (DSWD and PIDS) b–e. Quarterly program MIS reports (DSWD) a, f. Annual poverty indicators
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
38
In this revised DMF, to reflect the current program names, all instances of “4Ps” (the former abbreviation for Pantawid Pamilyang Pilipino Program) have been changed to “Pantawid”, and all references to NHTS-PR (national household targeting system for poverty reduction) have been changed to “Listahanan.” The meaning is the same. In all indicators, the primary beneficiary unit has been changed from households to families, in anticipation of the planned change under Listahanan round 2 (ongoing through October 2015). Multiple families living in one household is common.
43
Results Chain Performance Indicators with Targets and Baselines
Data Sources and Reporting Mechanisms
Risks
Overall project Household consumption and the use of education and health services by Pantawid
a families
(especially mothers and children) are increased
health personnel (2008 baseline: 62.2%) e. At least 85% of children are fully immunized before 1 year old (2008 baseline: 70%) f. Decrease in the share of children 6–14 years old who are working in project areas (2008 baseline: 4.6%) Overall project by 2019: Unchanged except for indicator b., due to the extension of program age eligibility from 14 to 18 years old (2008–2009 baseline: 62%)
survey (PSA) maintained
Outputs Output 1 Current project National targeting system to select poor households implemented efficiently Overall project National targeting system to select poor families implemented efficiently
1a. Current project: By 2015, 20% of poor households nationwide registered in the NHTS-PR Overall project: By 2019, 85% of poor households nationwide registered in the Listahanan
a database (2008 baseline: 0)
1b. Current project: By 2015, the NHTS-PR has less than 8% exclusion and 20% inclusion error Overall project: By 2019, the Listahanan
a
exclusion error is less than 20% (NCR) and 7% (non-NCR) and inclusion error is less than 11% (NCR) and 14% (non-NCR) (2008 baseline: Not applicable) 1c. Current project: By 2015, at least three national programs use the NHTS-PR as targeting mechanism Overall project: By 2019, at least 25 national programs use the Listahanan
a targeting
mechanism (2008 baseline: Not applicable) 1d. Current project: By 2015, at least 60% of poor households registered in the database receive benefits of social protection programs Overall project: By 2019,at least 60% of poor
1a. Listahanan
a
database (DSWD) and annual poverty indicators survey (PSA) 1b, c, d. Listahanan
a
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
44
Results Chain Performance Indicators with Targets and Baselines
Data Sources and Reporting Mechanisms
Risks
families registered in the Listahanana database
receive benefits of social protection programs (2008 baseline: Not applicable)
Output 2 Current project Conditional health and education cash grants provided to poor households Overall project Conditional health and education cash grants provided to poor families
2a. Current project: By 2015, at least 580,000 poor households receive cash grants, in which at least 90% of grant recipients are women Overall project: By 2019, at least 4 million poor families receive cash grants and at least 90% of grant recipients are women (2008 baselines: Not applicable) 2b. Current project: By 2015, at least 80% of mothers in beneficiary households receive Pantawid
a grants regularly and on time
Overall project: By 2019, at least 80% of mothers in beneficiary families receive Pantawid
a grants in at least five of the six
reporting periods per year (2008 baseline: Not applicable) 2c. Current project: By 2015, at least 80% of households meet education conditions regularly Overall project: By 2019, at least 80% of families meet education conditions regularly (2008 baseline: Not applicable) 2d. Current project: By 2015, at least 80% of households meet health conditions regularly Overall project: By 2019, at least 80% of families meet health conditions regularly (2008 baseline: Not applicable) 2e. Current project: By 2015, at least 80% of grantees attend monthly family development sessions Overall project: By 2019, at least 80% of families meet the family development session conditions (2008 baseline—families: Not applicable; males: Not applicable) 2f. Current project: Local area maps are produced, with data down to at least the barangay level, showing distributions of (i) target households; (ii) health facilities, day-care centers, and schools; (iii) preschools and daycare centers, (iv) schools, and (v) payment
2a, b, c, d, e. Pantawid
a MIS
(DSWD) 2f. DSWD Information Management Bureau mapping service
Payment windows may be far from beneficiaries’ homes and therefore either inaccessible or expensive to access Errors may result in ineligible households receiving CCT grants Weaknesses in internal control may increase fiduciary risk
45
Results Chain Performance Indicators with Targets and Baselines
Data Sources and Reporting Mechanisms
Risks
windows Overall project: Unchanged (target date: 2015)
Output 3 Current project Strengthened capacity for CCT program operations Overall project Capacity for CCT program operations strengthened
3a. Current project: By 2011, central and local project management structures established Overall project: Unchanged (2008 baseline: Not applicable) 3b. Current project: By end of 2013, at least 200 central and local staff acquire knowledge on gender analysis, indigenous people sensitivity, and prevention of sexual harassment by 2011. Overall project: At least 1,400 central and local staff acquire knowledge on gender analysis, indigenous people sensitivity, and prevention of gender-based violence by 2017 (2008 baseline: Not applicable) 3c. Current project: Gender action plan implemented throughout 2011–2015 Overall project: Gender action plan implemented to 2019 (2008 baseline: Not applicable) 3d. Current project: By end of 2013, participatory gender audits and community-driven municipality gender action plans piloted in 10 municipalities Overall project: By end of 2014, participatory gender audits and community-driven municipality gender action plans piloted in 10 municipalities (2008 baseline: Not applicable)
3a. Pantawid
a
operations manual (DSWD) 3b. Training and workshop records (DSWD) 3c–d. Gender action plan updates by the gender and development unit (DSWD)
Output 4 Current project Improved systems for monitoring and evaluation of social protection programs Overall project Systems for monitoring and evaluation of social protection programs improved
4a. Current project: By 2011, MIS is established and functioning to support payments, verification, updates, and grievance system. Overall project: Unchanged (2008 baseline: established: Not applicable, functioning: Not applicable) 4b. Current project: By 2015, 90% of grievances received are resolved within established time protocol Overall project by 2019: Unchanged (2008
4a, c. Spot check reports (Social Weather Stations) 4b. Pantawid
a
MIS (grievance redress system) (DSWD)
Program integrity and success could suffer from political capture or interference
46
Results Chain Performance Indicators with Targets and Baselines
Data Sources and Reporting Mechanisms
Risks
baseline: Not applicable) 4c. Current project: At least two rounds of independent spot checks (for the 4Ps) of schools, clinics, municipal links, and beneficiary households completed in each of 2012, 2013, and 2014, with at least one further round in 2015 Overall project: At least 7 rounds of independent spot checks of Pantawid
a
conducted by 2016 (2008 baseline: Not applicable) 4d. Current project: By 2016, final impact evaluation report based on third wave impact evaluation survey in late 2015 Overall project: Unchanged (2008 baseline: Not applicable)
4d. Impact evaluation reports (DSWD)
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
a database (Q3
2010; updates through Q2 2015) (completed) 1.2 Complete the list of potential Pantawid
a beneficiaries, using the Listahanan
a PMT, for all sets (Q3 2010)
(completed) 1.3 Apply the Listahanan
a PMT targeting mechanism in 15 other national programs (by Q2 2019) (changed)
1.4 Process special validation requests on an annual basis (by Q2 2019) (added)
2. Conditional health and education cash grants provided to poor families 2.1 Undertake set 2 and set 3 beneficiary household validation, Land Bank enrollment, and identification card
distribution (by Q3 2010) (completed) 2.2 Distribute cash cards to new beneficiaries (initiated in Q3 2010) (changed) 2.3 Ensure computerized compliance verification system operating by Q1 2011 and used as basis for all
subsequent grant payments (changed) 2.4 Prepare and transmit to Land Bank the beneficiary payrolls for every pay period (changed) 2.5 Make bimonthly payments of CCT grants to beneficiaries until 2019 (changed)
3. Capacity for CCT 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) (changed)
3.2 Complete supply-side assessment and analysis (by Q2 2011) (completed) 3.3 Implement training and capacity building (periodic to 2019) (changed) 3.4 Disseminate information in public fora (periodic to 2019) (changed) 3.5 Ensure that more efficient institutional mechanisms for providing grants to remote beneficiaries are in
place by Q4 2012 (completed) 3.6 Pilot participatory gender audits and community-driven gender action plans (Q3 2010–Q4 2014)
(changed; completed) 3.7 Train Pantawid
a parent leaders in regional clusters (Q1 2017–Q2 2019) (added)
4. Systems for monitoring and evaluation of social protection programs improved
47
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
at least annual counterpart financed independent thereafter (changed) 4.5 Undertake monitoring and evaluation studies (2014–2016) (changed)
Inputs ($ million)
Asian Development Bank
Loan
Technical Assistance
Grant
$400.0 (current) $1.1 (current)
$400.0 (additional) $1.0 (additional)
$800.0 (overall) $2.1 (overall)
World Bank
$ 0.0 (current)
$450.0 (additional)
$450.0 (overall)
Government
$ 484.2 (current)
$5,309.4 (additional)
$5,793.6 (overall)
Assumptions for Partner Financing
World Bank financing of $450 million will be approved in 2016 and the loan proceeds will be available for implementation of the overall program.
4Ps = Pantawid Pamilyang Pilipino Program, CCT = conditional cash transfer, DSWD = Department of Social Welfare and Development, Listahanan = the national household targeting system for poverty reduction, MIS = management information system, NCR = National Capital Region, NHTS-PR = national household targeting system for poverty reduction (now
Listahanana), Pantawid = Pantawid Pamilyang Pilipino Program, PIDS = Philippine Institute for Development Studies, PMT
= proxy means test, PSA = Philippine Statistics Authority, Q = quarter. a This revised design and monitoring framework has been updated to reflect the current program names, e.g. “4Ps” (the
former abbreviation for Pantawid Pamilyang Pilipino Program) has been changed to “Pantawid,” and NHTS-PR (national household targeting system for poverty reduction) has been changed to “Listahanan.” The meaning is the same. In all indicators, the primary beneficiary unit has been changed from households to families, in anticipation of the planned change under Listahanan round 2 (2015). It is common for a household to comprise multiple families.
b National Economic and Development Authority. 2014. Philippine Development Plan 2011–2016. Midterm Update with
Revalidated Results Matrices. Manila. Source: Asian Development Bank.
B. Monitoring
70. Pantawid performance monitoring. The Pantawid Pamilya monitoring and evaluation (M&E) system has three components, per the revised Pantawid Operations Manual (2015):
(i) Internal monitoring looks at critical operation areas of the program cycle, including targeting, registration, and compliance with program conditionalities. It also covers payments of cash grants, updates, filing of complaints and grievances, and supply-side assessments through data analysis and generation of reports.
(ii) External monitoring through spot checks is an in-depth investigation of
Pantawid operations by gathering evidence needed for the assessment of the performance of program implementation in key areas, as identified by external parties and DSWD management. Pantawid engages independent external local institutions and organizations to conduct spot checks.
(iii) Impact evaluation – both qualitative and quantitative – determines the
program’s achievement of its desired outcomes and the effect on beneficiaries that can be attributed to Pantawid Pamilya. It measures improvements in
48
selected health, nutrition, education, and other socio-economic indicators as a result of compliance with the program conditionalities and receipt of cash grants. The three objectives of Pantawid impact evaluation (see Section C.) are to measure program impact, to provide a basis for enhancements in program design, and to provide a basis for program replication in other areas.
71. Internal monitoring. The internal monitoring system covers all aspects of Pantawid Pamilya implementation: (i) registration of beneficiaries; (ii) verification of compliance with conditionalities (Compliance Verification System or CVS); (iii) payments of cash grants to households; (iv) Grievance Redress System (GRS); (v) updates of beneficiary information; (vi) supply-side assessments for health and education; (vii) budget execution; (viii) social marketing; and (ix) capacity building. Each of these modules corresponds to a stage of the Pantawid Pamilya implementation cycle and has been developed in accordance with specifications laid out in the Pantawid Pamilya Operations Manual. 72. External monitoring. Spot checks are rapid evaluation instruments to assess the quality, effectiveness and efficiency of Pantawid Pamilya with respect to design, management, institutional, monitoring and evaluation and other aspects of the program. Interviews are conducted with different stakeholders, including household beneficiaries, parent leaders, schools and health facilities, Municipal Links, Land Bank officials, LGU representatives and regional office personnel. Spot checks analysis in the past has covered: targeting, registration, compliance verification, payments, social marketing, training, updates, and the grievance redress system. 73. Spot checks were conducted twice per year in set 1 areas for the first two years, then once a year thereafter (financed by the World Bank.) The first full-scale spot check was in July 2010. For sets 2 and 3 (financed under the original SPSP), spot checks were done twice a year, starting in 2012, and once in 2015 and 2016. To ensure consistency in methods and quality, spot checks funded under the original ADB loan were awarded on a sole source basis to Social Weather Stations, the same contractor as for Set 1 evaluation funded through the World Bank loan, but under separate contract. DSWD will continue to implement annual external spot checks with GOP funding beginning in 2016. The external spot checks will apply to the cash grants financed by both ADB and World Bank and will be shared among stakeholders. The methodology is set out in the Pantawid OM.
1. Institutional Arrangements for Project Performance Monitoring
74. The Pantawid NPMO is responsible for both internal and external monitoring systems. They liaise with focal persons in the NPMO responsible for technical aspects of the program to ensure that the monitoring system accurately reflects Pantawid Pamilya policies, selects appropriate indicators, and provides an efficient information base and set of monitoring tools for program management and policy development. 75. The Information Management Bureau (IMB) is primarily responsible for promoting the effective use of Information and Communication Technology (ICT). It maintains the Pantawid Pamilya information system (PPIS) to facilitate payment and reflect verification of compliance, updates, and the resolution of grievances. The IMB plays a key role given the very large number of program beneficiaries.
76. DSWD regional offices and Municipal Links contribute to populating and maintaining the various databases. A large part of their responsibilities is the maintenance of the monitoring
49
systems. Municipal Links are particularly critical to monitoring, as they perform the bulk of primary data collection tasks (using the forms created by the M&E and MIS Units). The regional offices in turn supervise data collection, consolidate and transmit data to the national MIS and, in some cases (CVS, GRS, updating) encode the data before they are transmitted.
2. Compliance Monitoring
77. Safeguards monitoring. The update Indigenous Peoples Plan will be monitored as described in Section VII, on a semi-annual basis, using the IPP monitoring table in Appendix 2. 78. Poverty and social action plans. The implementation of the Gender Action Plan will be monitored on a semi-annual basis, using the GAP monitoring table in Appendix 3. C. Evaluation
79. Three types of evaluation activities took place for Pantawid Pamilya during its initial years of operation. These were:
(i) A qualitative evaluation to document the processes that lead to current indicators, and assess the short-term outcomes and impact of the program; and
(ii) A rigorously designed series of quantitative impact evaluation to estimate the program’s impact on the long and short-term target indicators.
(iii) Monitoring and evaluation studies of key project processes.
1. Qualitative Evaluation
80. The main objective of the Pantawid Pamilya qualitative assessment was to evaluate the processes and outcomes of Pantawid Pamilya project implementation in beneficiary communities, households and services providers in the area. Using qualitative research methods (based on similar studies done in Latin America), the evaluation aimed to explain:
(i) progress on project implementation; (ii) changes in behaviors, practices and beliefs among beneficiary communities; (iii) the how and why behind the indicators; (iv) any unexpected spillover effects; and (v) impacts on education and health, and changes in household levels of living,
vulnerability and service provision. 81. The assessment was conducted in two municipalities in each of three provinces (Nueva Ecija, Northern Samar, Agusan del Sur) with 36 case studies of beneficiary households. Focus group methods were applied. Data collection for the first wave of qualitative assessments was done in 2010. The researchers returned to same households for the second round. The contract for the qualitative evaluation was awarded to The Ateneo University Institute of Philippine Culture.
2. Quantitative Impact Evaluation
82. A number of rigorous quantitative impact evaluation (IE) studies have been undertaken to assess the impact of Pantawid’s interventions. A joint 3-wave series of impact evaluations
50
was launched simultaneously with the Pantawid program, which was rolled out in a way that would support a randomized controlled trial (RCT) with randomly assigned treatment and control groups. ADB, DFAT, and the World Bank support the joint series, in coordination with DSWD and the Philippine Institute of Development Studies (PIDS). Social Weather Stations undertook the data collection for the first two waves financed by the World Bank in 2011 and 2013. ADB is financing the third and final wave in 2015 and has provided impact evaluation capacity development. An Impact Evaluation Technical Working Group led by DSWD provides overall technical guidance. Other evaluation methods used include difference-in-difference (DD) and regression discontinuity design (RDD). PIDS has also undertaken cohort analysis using the sample from the original RCT study. It is critical to note that methodological choices mean the results from various studies are not necessarily comparable, and that certain methods measure very specific things, particularly in the case of RDD which looks only at impacts on households that fall very close to the poverty line, not the poorest of the poor. The full 2012 and 2014 impact evaluation reports are available at www.dswd.gov.ph.
3. Monitoring and evaluation studies
83. A number of Monitoring and Evaluation studies were planned under the original loan, including a qualitative study on the family development sessions (FDS). D. Reporting 84. The DSWD will provide ADB with semi-annual progress reports reporting substantive progress in Pantawid implementation and towards targets in the DMF. To ensure Pantawid continues to be both viable and sustainable, the executing agency audited financial statements, together with the DSWD Consolidated Annual Audit Report (CAAR) should be adequately reviewed. 85. ADB Review Missions. ADB will undertake semi-annual review missions, on receipt of DSWD’s semi-annual progress reports, and a mid-term review mission 24 months after loan effectiveness. At DSWD’s request, ADB will endeavor to undertake review missions jointly with the World Bank and other development partners. The output of the review missions will be an aide memoire summarizing findings and any follow-up actions. The output of the mid-term review will be a memorandum of understanding capturing any required adjustments to the project. 86. Project Completion Report. One month prior to the project closing date in 2019, DSWD will submit a project completion report to ADB.39
E. Stakeholder Communication Strategy
87. The Social Marketing Division (SMD) is responsible for the marketing and advocacy efforts of Pantawid Pamilya from the national down to the barangay level. It promotes public acceptance of the program and work to generate support from the different stakeholders during its implementation. It is also responsible for developing and disseminating advocacy and marketing materials at all levels of the program implementation. A social marketing framework (included in the Pantawid Operations Manual) guides the Information Officers in implementing advocacy and social marketing initiatives at the national and regional levels. SMD undertakes
39
Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-Landscape.rar
51
annual communications planning together with Pantawid Pamilya Information Officers to develop a Social Marketing Plan in accordance with the DSWD’s overall communication thrust.
X. ANTICORRUPTION POLICY
88. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.40 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/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.41 To support these efforts, provisions are included in the loan agreement and the bidding documents for the original Project. The AF will not finance any consulting services or procurement. 89. Country Overview. In 2010, President Aquino was elected on a platform that highlighted kung walang corrupt, walang mahirap (without corruption there is no poverty) and promoted governance and anticorruption as core priorities of his political agenda. The commitment and leadership for governance reforms expressed by the government and confirmed by the initiation of credible reform measures created an opportunity to address many of the governance challenges the Philippines has faced.42 Since 2011, the government has implemented the PFM Reform Roadmap, which aims at strengthening systems and processes, including by harmonizing budget classification and accounts codes, setting up a treasury single account, adopting new accounting and auditing standards, involving CSOs in the national budget process, and carrying out citizen participatory audit. These developments have, together with initiatives to improve transparency, accountability and citizen engagement, provided a positive trajectory to PFM reform. 90. ADB’s 2015 Governance Risk Assessment for the Philippines notes improvements in the public financial management (PFM) system, particularly in terms of comprehensiveness of information, fiscal risk oversight, annual budget process, and in-year reporting.43 Concrete actions have been taken. In Joint Circular 2013-1 (March 2013) and Joint Circular 2014-1 (July 2014), the DBM, COA, DOF and the BTr jointly developed the Unified Accounts Code Structure (UACS), a government-wide coding framework aiming to harmonize budgetary and accounting code classification to facilitate the generation of efficient and accurate financial reporting of actual revenue collection and expenditures starting in 2014. 91. To address the fragmentation concern, the Executive Branch’s capacity to consolidate and report fiscal statistics and data is being strengthened. The development of an IT solution that can collect and organize financial information in a central database to support budget management and execution is being pursued. The Budget and Treasury Management System (BTMS) will cover the DBM and BTr. 92. The Executive Branch is working with Congress on a Public Financial Management (PFM) bill which is intended to institutionalize good governance and public expenditure reforms. These include periodic reporting to Congress; tightening rules on savings, realignments, use of
40
Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 41
ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp. How to report fraud and corruption available at: http://www.adb.org/Integrity/howto.asp
42 ADB. 2014. Thematic Assessment (Summary): Good Governance and Political Economy. Country Operations Business Plan 2014-2016. Manila.
43 ADB. Country Governance Risk Assessment, Philippines (Revised draft as of April 2015). Unpublished.
52
the Unprogrammed Fund; rationalization of lump-sum funds and earmarked revenues; and the proposed creation of an Office of the Comptroller General which will consolidate agencies’ financial accounts. In terms of fiscal transparency, an inter-agency TWG was created to assess existing system and recommend a single repository of official fiscal and financial statistics. Budget accountability Reports have been harmonized for submission to DBM and COA. 93. However, a number of challenges remain, which include: (i) establishing a procedure to calculate the total annual budget and prepare comparative accounting data; (ii) revenue administration; (iii) capital budget execution; (iv) internal controls (both payroll and non-salary expenditures); (v) internal audit; (vi) accounting and reporting functions; and (iii) legislative scrutiny of external audit reports. 94. The overall status of the six high-level PFM dimensions is as follows:44
(i) Credibility of the budget is low because original appropriations cannot be compared with disbursements. Establishing the annual budget is difficult due to the appropriation structure, and in-year transfers from special purpose funds to departments result in obligations higher than original appropriations. However, revenue forecasts and out-turns are comparable. As part of the PFM reforms, DSWD is submitting quarterly Budget and Financial Accountability Reports (BFARs) which monitor appropriations, allotments, obligations, disbursements, and balances per program, activity, or project. This is prepared per object code or each fund cluster, and per allotment class for each program, activity, or project.
(ii) Comprehensiveness and transparency is deemed very good overall. Information included in budget documentation is comprehensive, the extent of unreported government operations low, transparency of inter-governmental fiscal relations relatively high, fiscal risk oversight adequate, and there is full public access to key fiscal information. However, public access to budget information and opportunities to participate in the budget process can be further improved.
(iii) Policy-based budgeting functions reasonably well in relation to the annual budget process, which follows a fixed calendar and is timely. However, although a multi-year perspective is part of the budgeting process, the usefulness of the medium-term expenditure framework is limited because it does not link with annual budget ceilings or investment budgets.
(iv) Predictability and control in budget execution is acceptable for cash management, treasury functions and procurement. However, internal control of non-salary expenditure is ineffective, rules for processing and recording transactions are often not complied with (evidenced by the Commission on Audit (COA) qualified audit opinions), payroll integrity is limited as departmental personnel databases are not linked to payroll database of the Department of Budget and Management (DBM), and the effectiveness of internal audit is low.
(v) Accounting, recording, and reporting were previously the weakest dimension of the PFM system due to a lack of accounts reconciliations and poorly managed advances. The scope and timeliness of in-year reporting has over time improved
44
The status update is based on: Australian Agency for International Development. 2012. Assessment of National Systems, Philippines: Analysis of Strengths, Weaknesses and Risks associated with using the Public Financial Management Systems of the Government of the Philippines. Manila; World Bank. 2014. Philippines – Update on Key PEFA Indicators and Implications for Future Reforms, Report to Department of Budget and Management. Manila; ADB. 2015. Country Governance Risk Assessment, Philippines (Revised Draft as of April). Manila.
53
somewhat, and accounting reforms were implemented effective January 2014. DSWD submits a complete set of financial statements to COA including pre- and post-closing trial balances, statement of financial position, statement of financial performance, statement of changes in net equity, statement of cash flows, notes to financial statements, and the comparison of budget and actual expenditures.
(vi) External scrutiny and audit is deemed satisfactory per scope and quality of audit performed by COA and there is evidence of follow-up on audit recommendations. However, legislative scrutiny of external audit reports is lacking and there is no standing committee in Congress charged with overseeing external audit and reviewing reports.
95. Department Level View. DSWD is well-governed and highly competent, with many years of experience in effectively managing foreign assisted programs such as Pantawid and the KALAHI-CIDSS National Community-Driven Development Project.45 DSWD is considered sincere in its efforts to fight corruption46 and systems are in place to minimize corruption risks. DSWD has robust engagement with civil society organizations, particularly in the Pantawid grievance redress system, which has been significantly strengthened. DSWD is implementing robust measures to address the policy and operational challenges identified in the 2013-2014 governance and anti-corruption risk review of Pantawid, including (i) supply-side issues in education and health services; (ii) clarity of roles among program partner agencies; (iii) Listahanan inclusion and exclusion errors; (iv) the risk of local political capture or interference; and (v) payment challenges, especially in geographically isolated areas. 96. To reduce the risk of political capture during the 2016 elections, ADB TA supported DSWD to developed an extensive communications campaign, endorsed in September 2015, to encourage Pantawid beneficiaries’ (i) understanding and performance of their role as active citizens contributing to good governance, (ii) knowledge of their rights, roles, and responsibilities during the electoral process; and (iii) use of the grievance redress system to report any abusive politicians.
XI. ACCOUNTABILITY MECHANISM
97. People who are or may in the future be adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.47
XII. RECORD OF PAM CHANGES
February 2014 (updated version August 2013)
1. Key Persons Involved in Implementation – updated ADB contacts 2. Footnote 20 – updated to reflect approved minor change in disbursement arrangements
(i.e. inclusion of G-cash as payment conduit) 3. Allocation and Withdrawal of Loan Proceeds – updated to reflect approved revised
allocation of loan proceeds 4. Para 36 – added contract awards and disbursements projections/s-curve
45
ADB. 2013. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Republic of the Philippines for the KALAHI-CIDSS National Community-Driven Development Project. Manila
46 Social Weather Stations. 2014. Survey of Enterprises on Corruption http://www.sws.org.ph/pr20140115b.htm
47 For further information see: http://compliance.adb.org/.
54
5. Para 40 – updated to reflect approved minor change in disbursement arrangements (i.e. inclusion of other payment conduits)
6. Procurement Plan - updated 7. DMF – added refinements to targets/indicators and data sources 8. New paragraph added to include provision on force majeure (para 89); succeeding paras
renumbered 9. Para 116 – updated to reflect agreement during 2012 mid-year review mission to revise
PAM references on reporting November 2015 (updated version February 2014)
1. Updated Section I. Project Description 2. Updated Section II. Implementation Plans 3. Updated Section III. Project Management Arrangements 4. Updated Section IV. Costs and Financing (including addition of (i) detailed cost
estimates tables, (ii) allocation and withdrawal of loan proceeds, and (iii) s-curve for the additional financing)
5. Updated Section V. Financial Management (update based on FMA for AF and disbursement and audit provisions for AF)
6. Updated Section VI. Procurement and Consulting Services including: addition of paras. for the additional financing (procurement plan for the original loan moved as Appendix 1 including consultants terms of reference).
7. Updated Sections VII and VIII (revised IPP and GAP) 8. Updated Section IX (DMF and project monitoring): deleted reference to the original
Appendices 1 and 2 (Compliance Verification Process and Update System Process) and replaced with reference to the Pantawid Operations Manual
9. Updated Section X. Anticorruption Policy (updates on country and department level overview)
10. Deleted Appendixes 1 and 2 (Compliance Verification Process and Update System Process)
11. Added new appendices 2 and 3 (IPP and GAP monitoring tables) 12. Deleted RAMP (formerly Appendix 2) 13. Added Summary of Financial Management Risk Assessment and Mitigation Measures
(from FMA) as Appendix 4 14. Added Management Plan on COA findings (Appendix 5) 15. Added special SOE form (Appendix 6) 16. Updated List of Useful Links (now Appendix 7) to include reference to ADB Safeguard
Policy Statement 17. Added TOR for audit firm (Appendix 8)
Appendix 1 55
PROCUREMENT PLAN (ORIGINAL LOAN)
Basic Data
Project Name: Social Protection Support Project
Project Number: 43407-013 Approval Number: 2662
Country: Philippines Executing Agency: Department of Social Welfare and Development
Project Financing Amount: US$ 884,200,000 Implementing Agency: N/A
ADB Financing: US$ 400,000,000
Cofinancing (ADB Administered):
Non-ADB Financing: US$ 484,200,000
Date of First Procurement Plan: 2 September 2010 Date of this Procurement Plan: 25 April 2015 (Rev. 1
A. Methods, Thresholds, Review and 18-Month Procurement Plan
1. Procurement and Consulting Methods and Thresholds
Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.
Procurement of Goods and Works
Method Threshold Comments
Shopping for Goods Up to US$ 100,000
Shopping for Works Up to US$ 100,000
Consulting Services
Method Comments
Fixed Budget Selection for Consulting Firm (SEHS to confirm review requirement)
Quality- and Cost-Based Selection for Consulting Firm One firm for FDS study, firms for evaluation studies
Quality-Based Selection for Consulting Firm One firm for spot checks
Single Source Selection for Consulting Firm (SEHS to confirm review requirement)
Individual Consultants Selection for Individual Consultant MIS consultant, NPMO and RPMO project personnel
2. Goods and Works Contracts Estimated to Cost $1 Million or More
The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.
Package Number
General Description
Estimated Value
Procurement Method
Bidding Procedure
Review (Prior/ Post)
Advertisement Date
(quarter/year) Comments
None
3. Consulting Services Contracts Estimated to Cost $100,000 or More
The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.
Appendix 1
56
Package Number General Description Estimated
Value Recruitment
Method Review (Prior/ Post)
Advertisement Date
(quarter/year) Type of
Proposal Comments
F3 (Ph E), F4(Ph F)
Spot Checks 223,000.00 SSS PRIOR Q2 / 2014 BTP
Assignment: National Comments: 2 contracts
F6 Impact Evaluation Data Collection
1,057,000.00 QCBS PRIOR Q3 / 2014 FTP
Assignment: National Quality-Cost Ratio: 80:20
F7, F8, F9 Monitoring and Evaluation Studies
400,000.00 FBS PRIOR Q1 / 2014 STP
Assignment: National Comments: 3 contracts
IC1 NPMO Consultants 300,000.00 ICS PRIOR Q4 / 2014 Assignment: National Expertise: Various expertise as agreed during the MTR
IC2 Impact Evaluation Analysis
120,000.00 ICS PRIOR Q3 / 2014
Assignment: National Expertise: Impact Evaluation
4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)
The following table groups smaller-value goods, works and consulting services contracts for which the activity is either on-going or expected to commence within the next 18 months.
Goods and Works
Package Number
General Description
Estimated Value
Number of Contracts
Procurement Method
Bidding Procedure
Review (Prior/ Post)
Advertisement Date
(quarter/year) Comments
None Consulting Services
Package Number
General Description
Estimated Value
Number of Contracts
Recruitment Method
Type of Proposal
Review (Prior/ Post)
Advertisement
Date (quarter/year
)
Comments
IC3 Management Information Specialist
87,000.00 1 ICS PRIOR Q2 / 2014 Assignment: National Expertise: Management Information Specialist
Appendix 1 57
B. Indicative List of Packages Required Under the Project
The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period). Goods and Works
Package Number
General Description
Estimated Value
Number of Contracts
Procurement Method
Bidding Procedure
Review (Prior/ Post)
Advertisement Date
(quarter/year) Comments
None
Consulting Services
Package Number
General Description
Estimated Value
Number of Contracts
Recruitment Method
Type of Proposal
Review (Prior/ Post)
Advertisement
Date (quarter/year
)
Comments
F5 (Phase G)
Spot Checks 245,000.00 1 SSS STP PRIOR Assignment: National
2 contracts awarded
C. List of Awarded and On-going, and Completed Contracts
The following tables list the awarded and on-going contracts, and completed contracts.
1. Awarded and Ongoing Contracts Goods and Works
Package Number
General Description
Estimated Value
Contract Value
Procurement Method
Bidding Procedure
Advertisement Date
(quarter/year)
Date of ADB Approval of
Contract Award
Comments
None Consulting Services
Package Number
General Description
Estimated Value
Contract Value
Recruitment Method
Advertisement Date
(quarter/year)
Date of ADB Approval of
Contract Award
Comments
F2 (Phase C and D)
Spot Checks 176,000.00 176,000.00 SSS Q1 / 2012 05-AUG-13 Contract amount represents USD equivalent of ADB financed portion (contract is in PHP)
Appendix 2
58
INDIGENOUS PEOPLES PLAN MONITORING TABLE
Outputs (unchanged)
Anticipated positive effects
(unchanged)
Possible negative effects
(unchanged)
Measures Actions Taken
Output 1: National
targeting system to select poor households implemented efficiently
a. Poor IP households benefit from Pantawid b. Inclusion of poor IP households in the Listahanan database and selected as beneficiaries of other social protection programs
Possible exclusion of poor IP households residing in geographically isolated and disadvantaged areas due to lack of information and absence during Listahanan survey
• IP tribal leaders to be identified and oriented on the Listahanan
• Disseminate information in IP language and through local media and channels accessed by IPs
• Coordinate with NGOs working in IP communities to disseminate information and schedule assessments at dates and convenient times
• Provide orientation to newly hired staff on IP situation and issues
• Ensure assessments include data on remote and hard-to-reach areas, migrants, IPs, those in stigmatized occupations, etc
• Ensure that assessment results are analyzed and included in the database to provide a nuanced and comprehensive understanding of the vulnerabilities of the above groups. The database should be available for other social protection and poverty reduction programs
•
Output 2: Conditional
health and education cash grants to poor households provided
a. Reduced maternal mortality and infant morbidity and mortality b. Improved school attendance rates
a. Perpetuation of traditional gender roles b. Increased workload for some women c. Some members of households with polygamous unions may be excluded+
• Disseminate information on Pantawid through local channels and media accessed by IPs and in IP language
• Ensure bank accounts opened are in the name of women IPs (except when male single HHs are targeted)
• Support referrals to service providers for literacy and numeracy training
• Provide intensive training on use of ATM and cash card
• Explore provision of transport assistance through LGU or NGOs/CS organizations to IP HHs who have to travel long distances to get their grants
• Mobilize IP tribal leaders to advocate compliance with conditionalities and promotion of joint home care responsibilities
•
Appendix 2 59
Outputs (unchanged)
Anticipated positive effects
(unchanged)
Possible negative effects
(unchanged)
Measures Actions Taken
• Develop language and culturally appropriate family development sessions
• Through monthly meetings, support organization of IP HHs around their rights and familial/community issues
• Develop guidance on how to support polygamous HHs with cash grants
• In remote areas, undertake assessment of and coordination with local NGOs and other non-state health and education service providers to fill gaps in government service provision and support inclusion of IPs
• Consult NCDDP and NGO service providers in engaging with IP communities
• Ensure learning materials are easily understood and learning methodologies are appropriate for IPs (e.g. participatory)
• Deliver cash grants in the most appropriate mode for IP beneficiaries
• Regularly update and monitor compliance with Pantawid conditions (per program guidelines)
• Ensure the grievance system is easy to access and use
• Coordinate supply side concerns in the various levels of advisory committees for discussion & action
• Recognize IKSP on health, nutrition and education
• Build capacity1 of IP leaders to support
program monitoring
Output 3: Capacity for
CCT program operations strengthened
Program implementers are able to effectively engage with IP communities
None
• Target recruitment of 10% total IP staff (e.g. MLs, SWAs, CFs, CFAs) in IP areas OR ensure that IP are hired for these positions are in proportion to the IP beneficiaries
• Provide intensive training and coaching to IP staff to ensure skills development
•
1 Capacity building measures may include training activities to support participatory monitoring
Appendix 2
60
Outputs (unchanged)
Anticipated positive effects
(unchanged)
Possible negative effects
(unchanged)
Measures Actions Taken
• Provide orientation on IP situation and issues and effective ways of engaging with IPs to all existing & new Pantawid staff at various levels
Output 4: Systems for
monitoring and evaluation of social protection programs improved
a. Better tracking of program outcomes and impacts b. Lessons are learned on effective ways of engaging IP women and men
None • Study IP situation to identify gender related cultural norms and practices to minimize exclusion of IP women and better respond to their needs
• Include IP-specific equality indicators in M&E system
• Regularly collect and analyze sex-disaggregated data to inform policy and program planning for IPs
• Consider gender and ethnicity specific challenges and concerns in annual and mid-term reviews
• Document best practices in gender-sensitive interventions for IP communities
• Share lessons learned with other programs and agencies working with IP communities
•
Appendix 3 61
GENDER ACTION PLAN MONITORING TABLE
PROJECT OUTPUT ACTIONS TO ENSURE GENDER BENEFITS ACTIONS TAKEN
Output 1: National
targeting system to select poor households implemented efficiently
Disseminate information on objective and dates of survey through a range of appropriate local media and channels accessed by women (including posting information in areas frequented by women such as markets, mobile microphones, interpersonal communication through social welfare, health, education, non-government organization (NGO) officials.
Ensure that survey schedules take into consideration women’s work schedules.
Output 2:
Conditional health and education cash grants for poor households provided
Ensure pregnant women are required to attend health center or rural health unit according to the Department of Health protocol.
Disseminate information through local media and channels about Pantawid program, cash entitlements, conditionalities, and women’s success stories to ensure that women have sufficient knowledge of their rights, and can draw inspiration from each other.
Hold consultations with women in each municipality so that the distribution of cash transfers take place on convenient days and hours and under culturally acceptable conditions.
Ensure that bank accounts opened are in the name of women beneficiaries (except where cash grants are being provided to single male headed households)
Ensure that marriage certificate is not used as a pre-requisite for validation and opening of bank accounts.
Explore options for providing transport assistance to households who have to travel long distances to get their grants through local government units and/or NGOs/civil society organizations.
Develop a mechanism to capture any instances of gender-based violence experienced by Pantawid beneficiaries in MIS. Include enhancements in the GRS and refer cases through proper channels.
Ensure family development sessions promote gender sensitive practices among couples, joint home care management and gender-fair child rearing practices.
Develop new FDS training materials (or adapt from existing training materials) on citizenship and rights, politics, leadership and teamwork skills as well as violence against women and building non-violent, healthy intra-familial relationships.
Following NAC resolution no. 23 of 2014, encourage and monitor 70% male attendance for specially designed family development session that covers reproductive rights and violence against women.
Ensure that monthly meetings provide support mechanisms to address women’s expressed practical gender needs (e.g., crèches for children, etc.)
62 Appendix 3
PROJECT OUTPUT ACTIONS TO ENSURE GENDER BENEFITS ACTIONS TAKEN
Ensure that monthly meetings facilitate women’s mobilization and organization to address their strategic gender needs (e.g., leadership, breaking stereotypes, etc.)
Develop language specific, culture and gender sensitive training materials for trainers and hand-outs for participants. Ensure that training materials for illiterate beneficiaries include visuals and other forms which they are able to understand.
Train and mentor parent leaders to become Pantawid Program champions, articulators of change, and to serve as resource persons and/or co-facilitators of the FDS.
Provide beneficiaries appropriate information about support and services provided by NGOs and other service providers, e.g. livelihood and income generating training and opportunities, adult literacy classes, alternative/crisis centers for women and children victims of abuse, legal aid, etc.
Output 3: Capacity
for CCT program operations improved
Provide orientation on gender-based violence and other gender-related issues, their prevention and management, the application of legal protocols, as well as available programs, services and interventions to at least 1,400 Pantawid staff at various levels [most of these are delivered and are part of Regional GAD Capacity Building Plans; now, there is a need to tackle Gender-Based Violence and legal protocols to aid field staff for better case management of gender-related issues confronting beneficiaries.]
Undertake increased coordination with the DSWD GAD Focal Person and GAD Technical Working Group and ensure inclusion of GAD mainstreaming initiatives for the Pantawid Program in the GAD Plan and Budget of the agency.
At least 80% of parent leaders, of whom at least 95% are women, participate in Pantawid leadership training from 2016-2019.
Output 4: Systems
for monitoring and evaluation of social protection programs improved
Integrate gender equality outputs and outcome indicators into the M&E system.
Ensure that sex-disaggregated data is collected, analyzed and included in the reporting on program coverage, income of women, nutritional status, access to health and education as well as data on out-of-school children to help identify ways to strengthen conditional cash transfer programs and referrals.
Ensure that yearly and mid-term reviews consider gender and ethnicity specific challenges and concerns.
Ensure indicators are linked with the Philippine Commission on Women-NEDA Harmonized GAD Guidelines for project design, implementation and monitoring
63 Appendix 4
FINANCIAL MANAGEMENT RISK ASSESSMENT AND MITIGATION MEASURES
Risk Risk Assessment (w/o mitigation)
a
Risk Mitigation Measures
Inherent Riskb
Country-level risks – Overall weak PFM system, especially with regard to budgeting (difficulty in establishing precise entity annual budgets), accounting (compliance with rules and regulations) and external audit (limited legislative scrutiny of COA audit reports).
Substantial Policy dialogue with the government to encourage the continuation of PFM reforms, especially those focusing on budgeting (improve recording of resource allocation) accounting (strengthen implementation of internal control and internal audit frameworks), and external audit (improve the functioning of the Joint Congressional Oversight Committee on Public Expenditures).
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 between entities. Regular meetings of the National Advisory Committee and Regional Advisory Committees to address coordination issues.
Project-specific risks – Shift from project- to program-based financing has not yet been subject to a review of systems requirements.
Substantial Review Pantawid processes so as to identify those where streamlining and improvement is needed so as to minimize FM-related risks.
Overall Inherent Risk Substantial -
Program Riskc
Implementing entity – DSWD has not yet implemented all necessary risk mitigation and management measures, and thus continues to have some systemic weaknesses in project implementation.
Substantial DSWD to review the risk management approach applied for Pantawid implementation so as to identify areas for strengthening based on which rectifying actions can be defined and employed.
Personnel – The capacity of existing staff resources is under pressure due to the increased Pantawid coverage. Specific additional demands are placed on field-level staff following decentralization of responsibilities.
Moderate DSWD will hire additional staff to perform finance functions at the field level, including municipal roving bookkeepers.
Needs assessments will be carried out to identify the need for existing field personnel to undergo additional training to ensure better response to implementation concerns. Also, all new field staff will receive induction training.
Accounting policies and procedures – DSWD faces challenges with some basic accounting as well as internal control functions that in some cases appear to be systemic, which results in insufficient compliance with rules and regulations.
Substantial DSWD to carry out an internal review of its accounting and internal control functions, focusing on basic operations and systemic issues, based on which an improvement plan is formulated and implemented.
Internal audit – Internal audit of programs and projects is relatively new, and the capacity for doing so is limited.
Substantial Additional internal audit staff will be recruited and assigned regional oversight responsibility.
DSWD will review and address internal audit findings, in particular those on fiduciary risk.
Appendix 4
64
Risk Risk Assessment (w/o mitigation)
a
Risk Mitigation Measures
Information systems – Need to computerize and integrate financial and project management information systems.
Moderate
DSWD to develop IFMIS for Pantawid (similar to that for NCDDP), which will facilitate timely capture of financial commitments and disbursements, provide a full audit trail, and be based on robust systems security to ensure only authorized approval for withdrawals.
External audit – COA auditors’ understanding of the SPSP is not in all cases fully adequate, which can result in less relevant audit observations.
COA’s audit reports on the SPSP do not include a separate opinion on the utilization of loan proceeds, compliance with financial covenants, and use of imprest accounts and SOE procedures.
Substantial DSWD will seek to provide more detailed and comprehensive information about the work and functioning of Pantawid systems and procedures to COA’s auditors.
ADB and DSWD will engage with COA in order to ensure that the SPSP audit reports in future reflect fully all ADB audit requirements. Some of the requirements no longer apply to the SPSP AF.
Funds flow – Pantawid experiences unpaid and unclaimed grants (due to non-availability of beneficiaries during pay-out periods, transfer of residence, double-entry), and the refund of undisbursed grants through OTC mode is often delayed.
Moderate DSWD to strengthen beneficiary update system and to explore options for using other electronic payment systems for remote areas.
Overall Project Risk Substantial
Overall Risk Substantial
ADB = Asian Development Bank, COA = Commission on Audit, DSWD = Department of Social Welfare and Development, FM = Financial management, IFMIS = Integrated Financial Management Information System, LBP = Land Bank of the Philippines, LGU = local government units, NGA = National Government Agencies, PFM = Public financial management, OTC = Over-the-counter, SOE = Statement of expenditure, SPSP = Social Protection Support Project. a Low, moderate, substantial, high.
b 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).
c 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.
Source: Asian Development Bank.
65 Appendix 5
DSWD RISK MANAGEMENT ACTION PLAN TO ADDRESS COA FINDINGS
(DRAFT FOR REVISION AND AGREEMENT WITH ADB)
.
Appendix 6 66
STATEMENT OF EXPENDITURE (SOE) FORM
CASH CARDS
(CC)
OVER THE COUNTER
(OTC)TOTAL
NCR
I
CAR
II
III
IVA
IVB
V
VI
VII
VIII
IX
X
XI
XII
CARAGA
NIR
ARMM
TOTAL
Prepared by: Reviewed by:
Ma. ANTOINETTE DUERO ZENAIDA L. FAROL LEONARDOC. REYNOSO
Chief Administrative Officer OIC-Director National Program Manger,Pantawid
Unified Financial Managemet Unit
Approved as to Compliance: Approved As to Funding:
CERTIFICATION
REGION
MODES OF PAYMENT
NO. OF HH HEALTH (Php) EDUCATION (Php) TOTAL CASH GRANTS
(Php)
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
PANTAWID PAMILYANG PILIPINO PROGRAM
STATEMENT OF CASH GRANTS PAYMENTS MADE
FOR THE PERIOD: _______________________
Deputy National Program Director
MATEO G. MOTAÑO
Undersecretary for GASSG and
Certfied Correct:
This is to certify that the payment of cash grants indicated in the above schedule is consistent with the provisions in the Pantawid Operations Manual; particularly on the Program conditions for
provision of CCT Grants for Health and Education as verified by the Compliance Verification System.
ANALYNN S. PEDRACIO
Admiistrative Officer V
CAMILO G. GUDMALIN
Assistant Secretaty for Operations and Programs
67 Appendix 7
LIST OF USEFUL LINKS
1. Procurement Guidelines http://www.adb.org/Documents/Guidelines/Procurement/default.asp
2. Consulting Services Recruitment Notice
http://csrn.adb.org
http://csrn.adb.org:8080/csrn/login.jsp
3. Guidelines on Use of Consultants by ADB and Its Borrowers
http://www.adb.org/Documents/Guidelines/Consulting/default.asp
4. Templates for engagement of consultants: (including submission templates)
http://www.adb.org/Consulting/loan-rfp.asp
5. Harmonized RFP (Loans) http://www.adb.org/Consulting/all-methods-loan.asp
6. Sample Individual consultant contract
http://www.adb.org/Consulting/ICS-Contract-Loan.pdf
7. Consulting Services Operations Manual
http://www.adb.org/Documents/Manuals/Consulting-Services-Operations-Manual/CSOM.pdf
8. Toolkits and Templates for Consultants:
http://www.adb.org/Consulting/toolkit-template.asp
9. Guide on Bid Evaluation www.adb.org/Procurement/guide-bid-apr06.pdf
10. Procurement Plans http://www.adb.org/Projects/reports.asp?key=reps&val=PP
11. PhilGEPS http://www.philgeps.net/
12. Project Administration Instructions http://www.adb.org/Documents/Manuals/PAI/default.asp
13. E-Handbook on Project Implementation
http://www.adb.org/Documents/handbooks/project-implementation/default.asp?p=proj
14. Anticorruption and Integrity http://www.adb.org/Integrity/default.asp
15. How to report fraud and corruption
http://www.adb.org/Integrity/howto.asp
16 Safeguard Policy Statement http://www.adb.org/site/safeguards/policy-statement
Appendix 8 68
DRAFT OUTLINE AUDITOR’S TERMS OF REFERENCE
I. INTRODUCTION
98. The Asian Development Bank (ADB) approved the $400 million Social Protection Support Project (SPSP) in 2010 to support the Pantawid Pamilyang Pilipino Program (Pantawid), formerly known as the 4Ps. As of 2014, Pantawid delivers regular conditional cash transfers to 4.4 million poor families provided they have complied with health and education conditions for each 2-month compliance verification period. The conditions include ensuring children’s enrollment and attendance at school, accessing maternal and child health services, and attending monthly family development sessions. The SPSP will close in March 2016, and the Government of the Philippines has sought ADB support for the next phase of Pantawid with $400 million additional financing from 2016-2019. ADB funds will finance conditional health and education grants only. 99. The Department of Social Welfare and Development (DSWD) is the executing agency. The DSWD will maintain separate records for all Pantawid program expenditures. 100. DSWD’s entity financial statements are audited annually by the Commission on Audit (COA) in accordance with Philippine standards aligned with international auditing standards acceptable to ADB. COA prepares an annual Consolidated Annual Audit Report (CAAR) which includes the auditors’ opinion on the entity financial statements and which includes a management letter. DSWD will additionally prepare notes to the annual entity financial statements that reflect (i) total Pantawid expenditure for the year, (ii) expenditure on CCT grants, and (iii) other Pantawid expenditure. The notes to the financial statement will also indicate specifically that “during the year, $__ million was reimbursed by ADB for the purposes of the CCT grants.” ADB further requires a separate audit opinion on the use of loan proceeds, but COA is unable to provide this. 101. ADB and DSWD will, therefore, engage an audit firm to provide a reasonable assurance opinion in accordance with International Standard on Assurance Engagements (ISAE) 3000 that ADB funds have been used for the purposes intended.
II. AUDIT DELIVERABLES
102. The deliverables for this audit assignment are: A. Reasonable Assurance Opinion over the Use of Loan Proceeds
103. The auditor will provide a reasonable assurance opinion following ISAE 3000 “Assurance Engagements other than Audits or Reviews of Historical Financial Information” that the funds for Pantawid Pamilya (and by implication the ADB funds) were used for purposes of the program.
B. Specific Considerations 104. The auditor will, during the course of the audit, pay particular attention to the following:
(i) The maintenance of proper Pantawid records, e.g. the quarterly Budget and Financial Accountability Report (BFAR) which monitors the appropriations,
allotments, obligations, disbursements and balances per program, activity, or project (PAP), prepared by per object code for each fund cluster and per allotment class for each PAP;
(ii) The maintenance of adequate supporting documentation to authenticate claims stated in the statement of expenditure (SOE) for reimbursement of eligible cash grant expenditures incurred; and
(iii) If retroactive financing is used, careful audit of any overlap between cash grants financed by the SPSP (sets 2 and 3 through September 2015) and cash grants financed by the SPSP-AF.
III. OTHER MATTERS
A. Statement of Access
105. The auditor will have full and complete access, at all reasonable times, to all records and documents including books of account, legal agreements, bank records, invoices, and any other information associated with the project and deemed necessary by the auditor. The auditor will be provided with full cooperation by all employees of DSWD whose activities involve, or may be reflected in, the annual financial statements.
B. Independence 106. The auditor will be impartial and independent from any aspects of management or financial interest in the entity under audit. In particular, the auditor should be independent of the control of the entity. The auditor should not, during the period covered by the audit, be employed by, or serve as director for, or have any financial or close business relationship with the entity. The auditor should not have any close personal relationships with any senior participant in the management of the entity. The auditor must disclose any issues or relationships that might compromise their independence.
C. Auditor and Audit Staff Competence 107. The auditor must be authorized to practice in the country and be capable of applying the agreed auditing standards. The auditor should have adequate staff, with appropriate professional qualifications and suitable experience, including experience in auditing the accounts of entities comparable in nature, size, and complexity to the entity whose audit they are to undertake.
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