DrqflUser RequhemenlsDefinilion Reporl

March 2,2407

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bcvcf oprrcnt acaDcfirl of thc philippirl'es

The Ndtlond.l Productlvitg Organizcrtion

March 2, 2007

Ms, Emrna Lim-SandrinoExecutive DirectorFoundation for a Sustainable Society Inc.Unit E # 46 Samar Avenuecor. Eugenio Lopez St., South TriangleQuezon City, Philippines

Attention: l\4a. Bonita ArreolaKl\4 & Communications Officer

Dear l\4s, Sandrino,

We are submitting herewith the draft User Requirement Definition Repod (URDR),The report highlights the results of reviewvalidation of the process maps and workbreakdown schedules and their translation into Use Case.

lf you have any questions or concerns, please contact us at your convenience at631-2133; 091 9-4196847.

Thank you.

Very truly yours,

74r./^--O1^4Elena Avedillo"cruzManaging Director & Assistant Vice PresidentCenter for Knowledge Management

'nptene"tt"g tgencyro, rne [^\ asal D aductr't) o9a12arc1r=t

DAP Building, San Miguel Avenue, Pasig City 1600 I P.O. Box 12788, Ortigas Center, Pasig City 1600 Philippines

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INTRODUCTION

In line with lhe development of a l\ranagement Information System that woutd improveknowledge sharing wilhin FSst, this User Requifements Definitioi njJort lUidninu" oeenprepared to address potential .equirements for consideration rn the c;nfrg;ation'or an fV Sfor the Development Portfolio Unit.

The report is designed to provide inforrnation to bothdevelopers and contains results of reviedvalidalionbreakdown schedules and their trans'alion into Use Case.

9::]1"1 9r: briefly describes rhe project, purpose, and, scope inctuding deftnitions andacronvms used

Section two prcvides an overview of the URDR including a brief description of the coreprocess of DPU, user characteristics. general conslraints a;d €ssLmprions

Section three describes the details oflhe URDR starling from the DpU process maDs loDPU'5 latestWorl( Breakdown Structure. l\4oreovef, it gj-ves a detaileO ai""iiof,o" offn"process,using the Unified l\4odel Language. ll a'so disCusses conslraints and prcvides sorresuggeslons/ recommendalions for improvement.

U@r ReAunenent Definnian ReodtC]lallng a Knowledse Map torissl

users anct syslem designers oror tne process maps and work

C.nle. for (nowleds. ManagemenlDevelopncnt Acadcny olth. Philipptn6

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Usor Requirenehl Defrnitbh Rep61Creathg a KnowledOe Map {or FSSI

Putpose

The report is intended to set a general description of what FSSI wants to carrv oul with amanagement informalion system, identify all known user requirements, deiine all theconslraints thal the,user may want 10 impose on any solution, and, describe the externalInreflaces to me sottware system or reference them in an Interface Control Documenl thatmay either be already existing or sti to be written.

Scope

The report.covers alllhe core processes performed by the Developmenl portfolio Unit (DpU)under.the following modules: Preparation for processhg of proposal. Desk Apprarsal, E.eldAppraisal, DPU-En Bgnc l\,4eeting preparatron and Deliberation, EEAC t\.4eeting preparationand Dellberation, BOT Project Ratification, Deliberalion and Approvat, Srgning-and Filing ofA.opraisal Documenls, Project Monitoring, project Restruciuring proiedu're, Remediall\4anagemenl and Foreclosure Procedure, and project Ccmpletion and post EvaluationProcedure.

Definltion of Terms and Acronyms

Detlnltlon of Terms

Cdter for Knowl.dge MandctnenrD€velopn€nl Acrdcny olthe Phlllppln6

TERM DESCRIPTIONAdministrative Unit Responsiblef orprovidinghumanresotrcennanagemEntind?EvElopnrent-

services in support to various departments in lhe oraanization.Agenda templ€te Format for enurnqrating iterns for discussion in a nreet.noApplication Form A form required to be accomo'ishe@

ror granrs, roans, devetop,nenl deposils, equtty or jont venture, andguarantee

Appraisal InstrumentsInstruments or tools for appraising a plolEalroposal asinunreritedoetow:

Assessment lool# 1: Compliance & Eligibjl i ty ChecktistAssessment Tool# 2r Fjnancial Analysis cuide & WorksheetAssessmenl Tool# 3: Organizational & Management Review GuideAssessment Tool# 4: Collateral AssessmentAssessment Tool# 5i Assessment Rating GuideAssessment Tool# 44t Assessment Rating Guide (l\,4F-Loans)Assessment Tool# 4B: Assessment Rating Guide (ft/F-Deposit)Assessment Tool # 4C: Assessment Rating Guide (EE-l\4arketing)Assessment Tool # 4D: Assessment Rating Guide (EE-l,,4anufacauring)Assessment Tool# 4E: Assessment Raling Guide (for Grants- L,velih;odn

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User Requnanenl Aefintion RepadCrcaling a Knowledg€ Map lor FSS

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TERM DESCRIPTIONAssessment Tool# 4F: Assessment Rating cuide (for Granis-Research/Advocacvn

Appraisal RepoiGuide

A guide fof each DPU staff in tlte preparation of a Project Appraisal andRecommendation Report (PARR)- (Report Form# 3)which includes the following inforn'ration:

. Project ldentifying Information

. Summary ofthe proposed projecto Brief description of lhe prpject including its objectives and

target outputs.. Summary ot Assessment

1. Economic Viabil ity2. Ecological Soundness3. Social/Community Integration4, Risk Assessment and Mitigating l\,4easures

. Recommendalion1. Over-all Assessment Rating2, Financial Product Design3. l\,4onitoring and Evaluation Plan

. Annexesl1. Financial Projections & Business Assumptions2, Assessment Ratjng Worksheel3. Financial Analysis Worksheet4. Collateral Assessment5. Ellgibil i ty & Compliance Checklist

Assislant ExecutiveDirector

Provides assistance to the Executive Directof in lhe formulation andoverseeing lhe direclion and implementation of DPU programs and projectsin accordance with the thrust of the Foundation as defined in the MTDPand directives of lhe Board.

Credit PerformanceCertificate

An official written statement from creditors establishing a projectproDonent's credit track record

Development PortfolioUnit

Tasked to promote the organization's pioducts and services throughprocessing of project proposals, desk appraisal, project development, fleldappraisal, project deliberation, monitoring and evaluatlon.

Specifically, DPu deliberates on all project applications, recommends allprojecl applications to EEAC beyond its approving authority, and, approvesprcject app,ications as follows:

Loans and Developmental Deposil up 10 a maximum of PlmilJion

Documentationtemplates

Forms or templales used to documenl projecl approval as appropriate andpertinent to the type of flnancial assistance such as contract/ l\,4emorandumof Aoreement, Promissory notes, amorlization schedule and applicable

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6cGty documents

ffiiiJ:?lxi(Checklist #14)

D__-rsbursement forms

fxecutive Director

|il?"$J:",1il$,illil":tJJpi'iJili'"rii5i"n "pprications as rolrows:

Loans and Developmental Deposit above Pimillion up to a maximum of P5

Eco-EnterPriseAdvisory CommitteeChair

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ffi:s{tiln'*;lil*l'$1*l*{*s*;iiaius of tneir aPPtications

@iewcuioee.-to Appraisatcuide

i*ffiil:r;"Jffi i: iXT[:l'iJ':;;s;";l il;";;"]" "i the o'sanization

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eco'Enterprise AdvocacvKnowledgeManagement anoAdvocacy Program

GG-etter temPlate

ffia-lermine if theenable it to be

ffidtoinformDPU staff and

flst of requirements

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Glossary of Acronyms

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Acronyms Oescrlnfi6nAED Assrstant ExecutiveDireci6iDPU uevetopmenl Homolo tJnI

ExeCuttve DireclorEEAC Chah Eco-Enterorise AdvEoET6EilFii-hEKI\,4AP wPOPS Proiect Staff

Sai6iPr!aram-merTecFn-iEt6fficer

--'-SPOTOBOT Board of TrusieeaGA CeneratnsiemOty

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DESCRIPTION

Proposal Form t*'i#:ii;ililwThe.Assessment Raling Guide summarizes the relevant key i-dicato,side-ntified Jor each of the key areas for apD,aisal consistenl wth 3BL. Thissy-srem ol assessment is set in place to better delermine lhe coherencewith the 3BL and provide guidance to managernent and the aDDrovino

:3:1i"",,'3ll!1. Fsst in renderins a mofe obj;crive aopraisai oi fro]eci

Proposal TrackingFom

Aformusedtocf f ircqurrements sel forth by the Foundalion. lt is also referred

infomationto as theAssessment Toot #1: Conipliance & Eligibil i ty Checklist

pg4g$OministratiG;tpdrt t,c DpUf rogram--6ffice.sSenior ProgIamOfficer

Monitors the effrcientand tffdtiv; inttem;ndtion-f program;Eectives,3::1Y:tl"-1 :19-,I!99!9n:s; .manase pro.jecl assistancd activilies (ie.Business Devetopment services) imong ixisting pr"orL", iiJi"r"JiJand traders to ensure the sustainabitity, c;mpetitiuiriess anO vla'Oifi-V oiifre

presentation orBrochure

is either a presentation or bfochure used to promote-Fss|products and services

Template APowerPointtemffi

Technical Officer Provides technicat suppofii6- thETGiGiEni Eunrcer or Senior prcgram OfUcers

Director, Program

Travel Request Form A form accomplished bv tfreon official business. e o. fietd

program officer or the statt [ho hiilo tiavettr!9q1, monitoring and evalualion

c€ntr for Knowledee ManagehenrD.v.lopndnt Acrd.my of th. prritpptns

'u6 Re9Ulrcn6n! Defrnition RepatCBallng a Knowledge Map tor FSSI

Refe/ences

. DPU Process Maps

. DPU Work Breakdown Structure

. Guidelines on Project Review, Appraisaland Approval

Cf,ler for (nNledge MdagnentDevelopnentA.!d.ny olth. Pnlrlpph6

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User Reauirenaht Defrnnion RepanCE3ling a Knowledge Map ior FSS

OVERALL DESCRIPTION

URDR Perspective

The report provides information to users and system designers/ developers on whattransactions in the core processes could be aulomaied. Those transactions for automationcould be expand€d into a managernenl information system and later on l inked to theFinancial lvlanagement Information System, enabling the sharing of information wilhin FSSt.

Co re P ro ces s D es c rl pti o n s

The URDR has the following Use Case mooutes:

1.1.1. Preparation for Processing of proposal

This module describes the activities involved in preparing for the pfocessing of aproject proposal. This is performed rnanually from recording of receipt 10 fiijng ofproposal kacking form. Using lvlicrosoft Word format, letter templates, proposat anoapplicalion forms have been conslructed to capture data. A prolect proponent isinformed about status ofthe proposal either by lelephone or email. .

1.1.2. Desk Aooraisal

This module slarts from checking for completeness of lhe proposal ard requiredattachmenls to filing of travel request for the next step which is fleld aopfaisal. Allproject pfoposals are measured againsl eligibility criteria to detemine its triplebottom line polential. Using l\,4icrosoft Word format, instruments for desk appraisaland letler of regret templates have been conslrucled to capture data. Letter of regretis sent either thru courier or email.

1.1.3. Field AoDraisal

Thls module starts from the conduct of ocular inspection at the sile of the projectproponent. DPU staff conducts in-depth interviews based on the triDle boflom lineand other appraisal criteria. The slatf uses l\,4icrosoft WorC, Excel or powerpoint towrile lhe field appraisal repoft and recommendations.

1.1.4. Project Delibe!.ation

1.1 .4.1 . DPU En Banc lvleeting Preparation and Detiberation

This module starts from the sending of notice of meeting, which includes the agenda,and appraisal report to DPU en Banc members. Much of the activities Invoivediscussions and formulation of resolutions. l\,4emorandum of Aqreement and revtstonof appraisal report are prepared during this module using Microsofl Word fonnat.

1.1.4.2. EEAC Meeling Preparation and Deliberation

This module starts from the sending of notice of meeling and the appraisal report toEEAC membeF. Activities revolve around discussions and formulaiion of resolutions.

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lremorandum of Agreement and revision of appraisal report are preparcd during lhismodule using Microsoft Word format.

1.1.4.3. BOT Project Ratificalion, Deliberation and Appfoval

This module starts from the sending of notice of meeting and appraisal report lo BOTmembers. Activities revolve around discussions and formulation of resolutions. lt is inthis module that the BOT kit, Memofandum of Agreemenl and revision ot appraisalreport are prepared using l\,4icrosoft Word and PowerPoint formats.

1.1.4.4. Signing and Fil ing ofAppraisal Documents

This module is performed by manually turning over and signing off appraisal repodsand documents forfiling and safekeeping.

1.1.5. Project ivlonitoring

Thls module provides information on monitoring arrangements and reporlorialrequhements with clients, including receiving and recording of paymenl, providingbusiness development consultancy services and subn",ssion of projecl progressand ^ ' ^^ 4 0pfoject monitoring reports. Gl!t4h"'\ { t\41 4

'1,1.6. Phje fE{€l{a2lion k *dn 4 m#1.1,6.1. Project Restructuring Procedure

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This module involves checking delinquency status of client, providing advice toclients with diskessed projecls, preparing restructuring plan, and providingmonitoring and business development advice to ensufe suslainability and progress clthe project. Report and presentation documenls are prepared here using l\ricrosoffWord. Excel, and PowerPoint formats.

1.'. .6.2. RemediatlraF€s$neiffi Foreclosure Procedure

This module involves conducting delinquency analysis/ assessment and projectreview, The prepared delinquency assessment report is subjecled lo deliberation byDPU en Banc prior to submission to BOT for approval. Reports and presenlaliondocuments afe prcpared using l\4icrosoft Wofd, Excel, and PowerPoint formats.

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This module involves preparing pfoject completion documents using lvlicrosoft Word,Excel. and PowerPoint formats.

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User Characterislics

The URDR is designed for users and systems designer/ developers who may beinvolved in the prepafation of a management information system.

1 . Admin Unit - Provides support services to various departments in the olganizallonwhich Includes receiving and recording receipts of project proposals. lts task includesproviding human resource management and development services

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2, Assistant Executive Director - Assists the Execulive Director in the fornlulation andoverseeing of the direclion and implementation of DPU'S programs and projects inaccordance with the thrust ol lhe Foundalion as defined in ihe |\'4TDP and directivesof the Board.

Eco-Enterprise Advisory Committee Chair - Spearheads lhe deliberation of projectappllcations endorsed by DPU; initiates recommendation of projecl applicalions toBCiT beyond its approving authority, and initiates approvalof project applicalions.

Executive Director -serves as lhe overall overseer of FSSI programs and projeclsandall units of lhe organization, e.g. HR/Admin, Financeand Kl\rAP Designated.asthe key decision m;ker with regard to lhe design and implementation of amanagement information syslem,

Finance Unit - Responsible for handling all financial matlers of FSSI. Among ilstasks is to provide the internal and external users of financial statements with timely,accurate and relevant information and lo ensure that the necessary llnancial controlis adhered to in order to safeguard the assets of the organization.

Kl\,'lAP - A support service unit wlthin FSSI created to promote FSSI as a leamingoroanization usinq the following systemsl lvlanaoement Inlormation Systems, Pos!P;iect Review E-valuation System, Knowledge Portal for Eco-Enterprises and Eco-EnGrprise Advocacy

Project Offlcer - lvlanages projects or accounts under SPEED and FSCS-SEEDprograms, perlorms PDI|E functions to ensure the administEtion of granv loanissistance igreements and contribute to over-all program objectives.

Project Staff - Provides administrative support to Program Officers

Senior Program Officer - lvlonitors {he efflcient and effective implementation ofprogram objectives, activities, and milestones; manages projeci assistance activitiesii.e] Busineis Development Services) among existing producers, processorc andiraders to ensure the sustainability, competitiveness and viability of the enlerptises

10. System Designer/ Developer - Develops an appropriate mana-gement informationslistem and plovides users training. l\,4ain tasks may include defining hardware and

Use. Reldrcnenl Defrntion ReqatlCrestlng a Knowledge Map lofFsSl

Project Completion and Post Evaluation Procedure

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User Reoutenent Defihnion ReoodC€alinq a Knowledge Map for FSSI

soflware architecture, components, modules, interfaces, and data for a computersystem to satisfy specified requirements.

'l1.Iechnical Officer - Provides technical supportProgram Officer or Senior Progmm Officers

UserAssigned Module Matrix

to Assislant Execuiive Direclor.

Center for Knowlcdge ManEgemeitDselopn.rtacldeny of the Philippin6

PosslbloSyotonUsorS

Proparationfor

Proces8lngof proposal

DsskAppralsal

F|e IOAppralsal

DPU EnBanc

M€6tingPreparation

anoDellberatlon

EEACMo.tlng

Prcparationand

D€libelation

BOT ProlectRatification,Deliberatlon

andApprcval

Slgnlngand Filing

ofAppraisal

Documents

Admin Unit

X X X

AssislantExecutlveDkeclor X X X X

EntercriseAdvisoryCommitteeChaif

X

ExecutivoDlrector X X X

ProjeclOfficer X

ProjectStafi

SeniorProgramOfflcer

X

SystemDesigner/Developer

X X X X X X

TechnicalOfficer X X X X X

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Usat Regunenenl Datinilbn ReponCfoalinq a Knowl€dge Maplor FSSI

Possible SystemUsers

ProjectMonitoring

ProjectRestructuing

RemedialManagement

ProjectCompletion &

Post EvaluationAssislantExecutive Director X X X

Executive DirectorX

Finance UnitX

KMAPX

Project Offlcer

Project StaffX X X X

System Deslgner/Developer X X X X

Technical offlcerX X X X

Center lor howledCe MonagenenrDev€lopnent Acad.nt olthe PhUlpplne

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SPECIFIC REQUIREMENTS

Process DescriPtions (Use case)

Use Case Specification

ProcessinS ofllJse Case Nameffiociate

ExecutiveDirector/Executive Director' Prolect 9ran- -- - -- - --- ---

use case is initiatedwftn-me Proponent submits Projectiect Staff acknowl4Lq?!l999lpl-aland ends w!9!

i1-m'nr,ru,TFgliryryi"'""JJil:1fo' #$HilU; j'ti i'i't;"i"t t'" person recevrns' records

i:":":'xE*:"",',*;tli"".[fl ?"""ff ll'"';Hf :iiiii::"^-' t'*il: f:rur ;li1;L"i fti{iiiliff#:"#:: ::' Ii": J? i,"::l?;.lj" t' ""'X[ ff :i:"',i::^"" track'ln s ro'm a nd

i"*"tot piopo'""ito project staff assigneds iili?liJJiSiJ;r rpdr :h*\" tl3-p."'-1,11: ?[,X"ff:' ;llSlill;liilf; "ll'iflr',T:1"[""""'#li"'i3i

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i.L".ffiti#;. il;5nlii on n"*t "t"p" "nd/or rollow up other

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AltGrnative q9!lM@rmedonthe

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Post Conditlon

lal Requiremel!End of use casq

Recommendation:

. Checking of proposal and proponent eligibility and *tqqF:lt^" !f ptimary' :ffi ill"I'_"S,ll$j; ili'"*: ", #"",.i i[H:, t"J,":il oJiiil *' or proposa'

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Recommendation:

. Checking of completeness of the proposal and primary requirements submitted maybe done in the "Preparation for pfocessing of proposal" while checking for propos;land proponent eligibil i ty. Desk appfaisal may lhen be init iated with the anatvsjs of thehistorical f ina"cial conditior of lhe business

Cenler for Knowbnec MandgenenlDev.lopmcn( Acrdeml 0rthe Philippin6

Use Case Name Desk AppraisalActor Project Staff. Executive Direqtor/Aa-aiateE aautrve D'ecbrIJeScription In's use case rS initraied when the Proiecl Staff chec{s i-e

completeness of the proposal a-d ends when t-e AssociateExeculive Director/Executive Director approves the travel requeslfor f ield aDofaisal

Pre-Condition 1. Pfoposal and all attachments shotld be recofded and co,rlrolnumber should be assiqned.

z. Fr0ponent shcutd be ejgibte based on the Elqibil i tv c.ite.ia.AssumDtlon NoneNormalCourse

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1 .The Project Staff (PS) checks completeness oithe proposalano pnmary requirements submitted based on theaccomplished Assessment Iool #1.PS anal}r"zes historical flnancial condition of the businessbased on the financial statement for the last thfee (3) vearsand using Assessment Tool# 2 Financial A-alysis cuid; andWorksheet.The PS reviews and detemines the 3BL (kiple bottom tine)potenlial of the project.PS gets initial informalion on proponent's ctedil lfack record ifpossible (as per Financial Statement subrnil led) basinq fromthe List of Cred,tors, conducts credit investigat;n (rfapplicable) using Form #1 1 : Credit and lnformation Sheet andawards Credit Performance Certificate.The PS reflects and surnmarizes the initial result of the fietdappraisal using the Assessment Rating cuide (AssessmentTool #4) and prepares instruments for field appraisal.The PS prepares travel request and seek apDtoval formsupervisor.The PS coordinates field appraisal activity with Admin,proponent, and other key informants.The AED/ED reviews and travel reouest

Alternaiive Course '1.a. The PS sends a formal notificalion to Proponent usingform#10 requesling for additional documents/informalion to besubrnilted wilhin two months form the date of notification.

4.a Prepare and send lettet of regrel to proponent (noted byED/AED) using the letter template.

5.a. The PS communicates lo proponent in writ ing all major orsignificanl revisions that need lo be undertaken in the overalldesign that would have financial afd technical lmplications inimplemenling the project or business with a given lead timefor response and clariflcations.

Post Condition All activities for the field appraisat have been fin-iEEi--nd-necessary documents have been Drepared.

Soecial Requirement NoneEnd of use case

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' Use Case Name Field AoorcisalActor Proiect Staff (PS)Description This use case is initiated when the PS explains to

proponent the FSSI project appralsal process and ends ifthe PS informs the proponent on other requirements thatneed lo be submitled ifthe aoolicalion seems oositive.

Pre"Condition '1. The PS should prepare and send letter of regret toproponent using the letter lemplate.

Assumption None

NormalCourse The PS explains to proponent FSSI projecl appraisalprocess and other relevant policiesThe PS interviews key personnel and targetparticipants of the project and probes proponent onproposal details using the 3BL and other appraisalcriteriaThe PS checks proponent's actual production andoperalion and internal control & syslem using thefollowing instrument3.1 Appraisal InstrumenlThe PS clarify and check gaps or inconsislency ininformation orovided and actual ooeEllonThe PS discuss and checks collatefal optionThe PS inform the proponent on other requirementsthal need to be submitted if applicalion seems positive

6.1 I List of requirementsGather other relevant information to eslabllshproponent's track record and credibilily and viability ofthe business

Alternative Course NOne

Post Condltlon 1. Send notice and prepares agenda of meeting for thepresentation of appraisal fi ndings.

SDecial Reoulrement NoneEnd of use case

uset Requircfient Defrnilion RepatlCreallng, Knowledge Map lor FSSI

Recommendatlons:

The PS should prepare in advance interview guide questions for the field visit (fextstep after step #1)

lndicate what properties are offered as collateral (refer to step #5)

Before sending notice of meeting, the PS should check first if all requirements havebeen completed. (next step afler step #5)

What are those "other relevani information" that needs to be gathered in supporl ofthe credibility of the business (creaie a checklist or it should be included in the "list ofreouirements")

C.nr.r for KnowledCe ManaCefrentD*elopnent Acadeny otthe Phlllppln6

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User Requiranent Dalinilioh RepatlC€allng a Knowledga Map iorFSS|

Use Case Name Project Deliberation - Development Portlolio Unit (DPU)Level

Actors Executive Director (ED), Associate Executive Director(AED), Project Staff (PS), Technical Officer (TO) andClient

Description This is the first level of deliberaiion in the project proposalafler a desk and Ueld validation was conducled.This process starts when the AED prepares and sendsnotice and agenda of meeling to DPU en banc membetsand ends when the PS revises and inteqrates DPU enbanc recommendation in ap0raisal re0ort.

Pre.Condltlon All document requirements should have been submittedand a field validation ofthe oroiect was alreadv conducted.

Assumpilon Project proposal shall be presented for deliberation anddecisions at respective levels of authorily, based on theamount offinancial support requested as follows:Development Portfollo Unlt (DPU)

. Deliberates a// project applications

. Recommends all project application to EEACbeyond its approval authority

. Approves project applications as follows:o Grants up to max of P200,000.00o Loans and Developmenlal Deposit up to a

max of P500.000.00Eco-Enterprlse Advlsory Commlttee (EEAc)

. Deliberates project applications endofsedby DPU

. Recommends all project application to BOfbeyond its approval authority

. Approves project applications as follows:o Granls above P200,000.00 up to rnaximum

of Plmill iono Loans and Developmental Deposit above

P500.000.00 uo to a maximum of P3mill ionBoard of Truslees (BoT)

. Deliberates project applications endorsed by EEAC

. Ratlf/es all project approval by the DPU and theEEAC

. Approves project applications as followslo Grants above Plmill iono Loans and Developmental Deposit above

P3mill iono All equity/joint venture underlaking nol to

exceed P20milliono All ouarantee undertaking

NormalCourse 1. The AED prepares and sends notice and agenda ofmeeting to DPu en banc members.

2. The PS sends appraisal report to DPU en bancmembers for advanced reading.

3.1 The PS prepares powerpoint project appraisaloresentation.

Cdrer for koaledge ManrgemenlD.velopnenl Acrdcmy of Ihe Philippin6

16 of 33

It||

Recommendations:

. Step 5.2 cannoi be simultaneously done with

usat Requianent Definitl@ RepdrC€atinq a Knowledge M3P for FSSI

Step 5.1. lt is only when decisions a'e

ZTheTO prepafes mateilals and loglstics needed --. . I. The PS present project for deliberation t0 the UPU I

members . . I.1 The ED/AED faciritate project discussron ano I

resolution. I,.2 The PS sends notice of approval / drsapproval lo I

proponent should prooosal is approved / d sapp'oveo ](for Droiect undef DPU en banc approvalj - -- - I

; The PS facilitates documentalion (conlract or MUA Jamortization, security docs' etc ) and fund release I'. The ED srg's l\,4OA ]

L The PS revises and inlegrales DPU en bancrecomrnend?tiol in appra sal repo't --

i.2.a Approved Proiecl't. Ao:roval of lhe project within the DPU autl'or'ty

a;a submiited to the BoT for ratification2. it 'e PS prepares and sends to lhe clrent the Notice

of Proiect Approval duly signed t'y l l 'e ED

5.2.b DisaoProved Projecl- - i.- oF"u .".rrirt fecommend fot fLr'lher deve'oorrent'

it tfre proposat does not rneet the requirement oiFsSl 6ut aould be enhanced or improved'

z. if'e pS is tasked to cornmunicate to the client foraddilional information or proposed changes in thedesion of the Ptojecl

e ih;it i"nt snitt 6e siven anolhet two (2) months to-

"rf. it tt '" additional informalion required or the

. !iT"$jJ:::i"l*rr be considcred rnactive andi"tou"o from the accounls in the pipeline foJpilce"sing if client had no response after 2

monlnss Proiect applications maybe disapproved d t 'e

oroiect rails to qualify based or the mrlriu'rlcrit;ria set fot assistance if tec{Llesled suppol sioi"it 'n tn" .rrr"nt

"ervices offered by FSSI a-d

if proiecl is does not fall within any of the progtams

of Fssl6. i fonnal notification of disapproval or . non--

quaiiRcatlon shall be sent to the cllent duly sjgned

A.lternative Course

| -p.oject

ddiberation in lhe DPu level was conductedi. M"motanou. ot ngreement srgned by tl 'e EDi. il" opu i"n.""

"i,d improves on the appra sa' repod'

tr""O on the assessment criterra a_d polcy

requirements of the Foundation'NoneEnd of use case

F,ost Condition

SDecial Requiremej!

@ ;:mf;*"ll*"#xlii".1"iil'oo"*17 of 33

J#,in'ffi;iffir:f?"#smade and the meeting ls over can the PS send the Notice of project Approval /Disapproval to the client (for project under DPU en banc approval).

The client must be updated of the status of the submitted proposal using theassigned reference code. The total waiting time of the proponent for ihe approval ofthe proposal in the DPU level takes a maximum of 41 days, which is quit! a longtime.

Cnter tu! Knowledge ManagehentD.v.lopm.nt Acrd.my ol ihe Pnitppine

18 ot i3

U s e I R aq u i.e n en I D efrn il i an R ep otlClealing a Knowledge Maplor Fssl

tlse Case Name Project Deliberation - Eco-Enterprise Advisory Committee

Actors Executive Director (ED), Associate Executive Dlrector(AED), Project Staff (PS), Technical Officer (TO), SeniorProject Officer (SPO), Projecl Ofilcer (Po), EEACChairoerson and members, Admin Staff and Client

Descrlption This is the second level of deliberation in the proiectorooosal.This process starts when the AED prepares and sendsnotice and agenda of meeting to EEAC members andends when the PS revises and integrates EEACrecommendation in aporaisal reporl.

Pre.Condition The project proposal already passes through theDevelopment Portfolio Unit (DPU) Approval Level andshould move to the next level of deliberation.

Assumption Project pfoposal shall be presented for deliberation anddecisions at respective levels of aulhority, based on theamount offinancial suppod requesied as followslEco-Enterprlse Advlsory Commlttee (EEAC)

. Deliberates project applications endorsed by DPU

. Recommends all project application to 8Ol'beyond its approval authority

. Approves project applicalions as follows:o Grants above P200,000.00 up to maximum

of P lmi l l iono L.oans and Developmen(al Deposit above

P500.000.00 uo to a maximum of P3mill ionBoard of I rustees (BOT)

. Deliberales project applicalions endorsed by EEAC

. Rafif/es all project approval by the DPU and theEEAC

. Approves project applicalions as followsio Grants above Plmill iono Loans and Developmental D-apost above

P3mill iono All equity/joint venture undertaking not to

exceed P20mill iono All quaranlee undertaking

NormalCourse 1:Ji6TE-orepares and sends nolice and agenda ofmeeting to EEAC members.

2. fhe PS submits appraisal report (word) to AED for

3.1 The Associate Executive Director reviews and submitsappraisal reports to Admin for circulation to EEAC & kitoreoaration.

3.2 The Adrnin Staff circulales project appfaisal repofts ioEEAC membets for advanced readrng.

4. The SPO/PO prepares project presentation repon(PowerPoint) and send to AED/ED for review andinclusion in the kit.

5. The EEAC Chair faciliiates projecl discussion andresolution.

Cfl1c! for Kno*ledge ManagenentDci.loDnent A.adenv of th. Phlllpplt6

19of33

l)sat Raqunenenl Defrnilian RePanCrcaLino a Knowledge f,!aP lorFSS|

6'The TCI takes minutes of meeting.i. rtre ps

"enas notice of approval / disapproval should

oroposal is approved / disapproved (for project underEEAC aPProval)

8.'1 The PS iacililates documentation and fund telease8.2 The PS & TO prepare amotizalion scFedule9.1 The PS facil i lales srgning of N'4OAs.Z fhe pS revrses and iriegrates inputs/conrmenls/- -

recommJnaations in appraisal repon frorn the EEACdelibetation.

7.a Approved Projecl- t i

'npprovat 6t tne project within lhe .aooroval-a:lirot]^\i''

,il -iuo."qu"ntty

submitted to the BoT forratillcation

2. The PS plepares and sends to the clients the- Noiice of Froiect approval duly signed by the ED -

f. necommeno! approval for BOT de'iberalion iforc'iect is beyond the aoproval autnorry'

7.b Disaporoved Projecti. i6commeno6 for further development i' some

information and considerations sudaced lhat werenoi pttuioutfv considered by the DPU and such,ouio r,au" slgnificant impact on the design of theotolecl

z. rln,liS is tastea to communicate to the partner for- adclitional information or proposed changes in thedesian of the Projecl

3 The;lient shall be given another two (2) no'lhs losubmit the additional information required or therevised ProPosal

4. Should no response be received from the clienl' ' , i i" i i montt's' the proposal shall be consjderedinactive and removed from the accounts in the

oioeline for Processings 6i"appi"vai of proje;t 6hall be considered if vital-

inr.ilt,on and tonsideration were seen nol

oreviousty considereO Curing the DPU deliberationIn-J suootrt ot su"n project will put the Foundatonat critlcal risk

e i-t'e pS prepa'es and sends formal notiricat:on of- iisaoproval buty signed by the Execulive Director'

Foundation.

eroiect oerioeratroffi trreEflc tevet '1as conducledMemoranOum of ngreenent sig4ed by the EDir,"

-ienc p'or-.d""

"o..'enl" and afeas for

con'"iOe|.aiun on the p'ojecl proposal based o" lhe

""""""t""f critetia a1d policy requrre'nenls o' the

Post conditlon

NOneRequirementEnd of use case

Alternative Course

Center iot Knowledge Managehentn^.,^L----? r.ri.n!.ft h. Phll ioDlnd

20 of 33

"',:'if fl 'ffi trli?:fi :,;?J",!.{Step 3.1 cannot be simultaneously done with Step 3.2. The Step 3.1 should becomeStep 3 and Step 3.2 should become Step 4.

The total waiting time lor the approval of the proposat in the EEAC level takes amaximum of 62 days which is quite a long lime, ls there a way of shorlening thenumber of days that the client is waiting? Or at least a way of knowing the status ofthe proposal instead of only waitjng for the letter of approval/disapproval sent by thePS.

Can the work load of PS be reduced and given to TO for equal distribution ofwork?

Cen&r lor Knowlenge MamgamenrDw€loDn.nt Addenv otrhe Pnl|l,Dln6

21 of 33

uset R4uireneht bnnk@ RepdlC€atinq a Knowledqe MaP for FSS1

ct Detib-eration - goard oj!!q99!llse Case Naqlg

D€criPtion

Pre.Condltion

Assumptionttt:

IIIt

E;Auti6 Drrecio- \ED)' A"s6ctaie Execuirve Dieclor

lnEof. nOrin Statf. Project Staff (PS), Technrcar Orlicetciieit and Boa.d oi Trustees (BoT) r'enbers

ilitn' fte-lhi-A btel of d beration in the Appraisal

when lhe ED facrl i tates signing of IVIOA

Report.This orocess siarts when lhe ED preoa'es ano senosnolice and age'1da of meeting to BOT members a-d ends

The ;roiect p,opoad t€ady passes through the Eco'

enGrir'rJe aav's6ry committei: (ge,qc) npproyat revetFr#;ti-jjo-htl be pre$nted for deliberation and

OeJisloni ai respective leve's of author'ty based ol the

umount ottinanclat support lequested as followsiBoard of Trustees (BOT)

. beliberates project applications endorsed by EEAC

. Rat/tes all project approval by the DPU and the

. Approves project applications as follows;o Grants above Plmill iono Loans and Developmental Deposlt

P3mill iono All equity/joint venture undertaklng

exceed P20mill iono All suaranteil!!9llq!

tlite-Eit predres andrJ]sends rloiice and agenda ofmeetino to BOT members

2. The AED reviews and finalizes appraisal repon anoprepare project powerpoint ptesentaron

: il lnio i6"od applaisal repod to ED for revrew and- nJmin tor circutation to BOT and inclusion in the kit

a. ifre,qOmin Staff prepares 8OT kit and other loglsticalmaters.

s. ii"-- nfoleo presents projects for ratiflcation'deliberation and aPProval'

o. i-nJiiii iniottt bPU staff and other units on Boraoorovals and disaPProvals

z. i[! -pS

integrates BoT fecomrnendation in finaldesion of the Ptoiecls approved

I The pS i.for.ns clie"l aboul o'oject approval /

disaoorovalI 1. The PS faci l i lates docun entation and fund releaseg 2 The PS and TO prepare amodrzalion schedule'10. The ED faci lrtates srgning of MOA

NormalCourse

6.a Approved ProJecl- " r i"na;iiit.it of the project alreadv approved bv lhe

DPU and/or EEAC2. ihe PS p'epates and sends to the c ient tqe Nolice-

ot proieit Abproval dury signed by the FDg. iecorime'Os for fudher develoo'nent rf c':trcal

iniot'nat'on and cors'deration sudaced that wete

Alternative Course

@ ff :::fi Siixl*'LY11ii""1"#'0"-22 of 33

Uset RequiEnent Definttion RepodC€aliig a Knowledge Map lorFSS|

not previously considered by the DPU and/orEEAC and such would have significant impact onlhe design of the project.

4. The PS is tasked to communicate to the client foradditional information or proposed changes in thedesign of the prcject.

6.b Disapproved project1. The applicant shall be given another two (2)

months to submil lhe addil ional informationrequired or the revised proposal.

2. Should no response be received from theprospective partnef after 2 months, the proposalshall be considercd inactive and removed from theaccounts in lhe pipeline for processi'9.

3. Disapproval of project shall be considered if newand vital information and consideralion were seennot previously considered by the DPU andlorEEAC and support of project will put theFoundation at crit ical risk.

4. The PS Drepares and sends formal notificauon ofdisapprovarduly signed by the EO.

1 . Project deliberation in lhe BOT level was conducted2, l\4emorandum ot Agreement signed by the ED.3. The BOT provides comments and areas fof

consideration on the project proposal based on themandate and policv reouirements of the Foundation.

ulrementEnd of use case

Post Condltlon

cenrcr for Knowledse ManaeenentDd.loDm€nl Acrdeftr of th. PhlllDDlnB

23 ot 33

use Case Name Siqntnq and Frlino of Appraisal DocumentsActors Proqram Staff (PS) and Technical Officer (TO)Description Producing and filing the appfaisal documents with

complete siqnatories ofthe FSSI ofiicers.PE-Condition The Proposalwas approved in the deliberation level.Assumption The FSSI granled the amount the proponent was applying

for the project. The proposal pass lhe steps needed tounderoo.

Normal Course 1. The PS turnovers of appraisal reoorts and documentsIOr l tno to tu

2. The T6 facililates signing of all appraisal repods byapprcpriale signatories and flle reports anddocuments.

3. The PS / TO mainlains and updates fi le.Alternative Course NonePost Condltion Signed Appraisal report

Updated Appraisal report file1 ,2.

SDeclal Reouirement NoneEnd of use case

User Requienenl Delintion RepodClearlng a Knowredg€ lrap tor FSSI

Recommendatlons:

Signlng and filing of lhe documents is a lask designated to Technical Ofilcer (TO).Therefore, does he has the aulhorily lo access documents of all project proposals?Who else have the aulhority to access it? What is the limitation of whose accessingll?

ls the reference coding of the project proposal user-friendly? can it be easilyretrieved even if TO is not around?

Ensure that data is updated from lime to time and access of infonnation ls madeeasy for the officers who need the data and who wanls to use lhem.

Centr lor Knowledge ManagementDevel0pmenr Acadef, t oa the PhlllpPlnB

24 of 33

uset Requircnenl Denn iah Repodc€atiig a Knowledge Maptor FSSIt

tttiIItIIIIIIItIII

Use Case Name Proiect l\/lonilofingActors Project Staff (PS), Tecnnicai OfficeiltO;, finance Uni[Tssrciae

Executive Director. ClienlDescription This use case is initiated when the prcact-Eff dGcusses

monitoring arrcngements with clients and ends withpreparation of the consolidated moniloring reporl.

Inethe

Pre.Condillon All requirements for the appticatton trave been submjtted bvthe proponent.The proponent has passed all appraisal processes (desk and!e!!)-

1 .

2.

AssumDtion NoneNoamalCourse

5 .6 .7 .

1. The PS disc{rsses monitoring arrangement and reportorralrequirement with clients.

2. TO sends statement of accour.tl to clienl 1 month befofesch€dule of paymenl of amortization.

3. The client pavs amortization to Finance Unit.4.'1. Finance Unit receives and records paymenl ffom Client4.2. The PS consults client on progress of the projecubusiness

(by phone or site visit).The PS provides business developmenl advice to clients.The PS/TO troubreshools minor p'oblen's.The PS/TO prepares and submits projecl progress report tol\4anagement.

B. AED prepares consolidaled oro.ecls . ' tronttorino reoonAlternative CoursePost Condition Consolidated p.olect nonitoring reportr-! beEi-iiElZdSpeci4 Requirement NOne

End of use case

11fr c-n' ro' rno*r",rge voogemmr\:2, D.veropn.nr Icr'red' 0rrhc Philipplne

25 of 33

u6er Requitene aelinition RapadCrealing a Knowledge Mapfor FSSI

Clarif icalions/Recommendations/Sug gestions :. Specify actual assistance to be performed by the TO (refer to step #7.2). The TO and PS should check the complelion of the restructuring docunrents before

signing, if not repeat step #2, unlil documents and process completed.

Center tur Knwledge ManasemenrDddopn.nt Acrdcny ol lhe PhllippinB

Use Case Name Project Restructuring ProcedureActors Project Staff (PS), Assistant Executive Oirector (,qeD),

Executive Director (ED). Technical Officer tTO)Description This use case is initiated when the pS ctrecis OetinqG;cv

siaius of the client and ends with the OreDarat on of th;prog'ess report and resull of the restructu'ino docunents.

Pre-Condition '1. The PSiTO should prepare and submit the progresiieportto the management and have the AED to consolidate proiectsmonitodng report.

Assumptlon None

NormalCourse 1. The PS checks the delinquencv siatta-itha ctient -

2, The PS discuss problems with clienl thru2.1 Phone2.2 E-mail2.3 Site Visit

3. The PS advise claent to formalize reslructuring proposalafter discussion on the problem

4. The PS prepares delinquency rcpon and restructuringproDosal

5. The PS present repo( and recorrmerdation to themanagement and DPM for approval

6. The AED/ED present restrucluring plan to BOT forralification and/or aooroval

7.1 The PS prepares restrucluring document7.2The TO should assisl in preparation of reslructuring

oocuments8. The TO facil i tale signing9. The PS provide close monitoring and business

development advice if needed10. The PS prepare report on progress of the project and result

of reslrucl!ring

Alternatlve Cource None

Post Conditlon 1. Conducted delinquency analysis, assessment and project

2. Prepared delinquency assessment report andrecornmendation

Special Requiremenl NoneEnd of use case

26 ot 33

Usat ReqLieneht tufrhlian RePdlCrcalins a Knowedqe MaP lor FSSI

Use Case NameActorsDescription

Remedit-tvla'raqemenrandF!I9q!99!IqEI9!9!l! j9

Fn,"ffi.onOu.t of delinquency analysis and ends with theconsolidation of the remedial reports

-status of ctient' and1. The PS/TO should check oellnquency

oieoai"" a r"port on progress of the project before conductingthe deli

Assumption

T-heFS prepates f-ior lhtconA fiioidd mq ue ncy analysisihe ps ioriouct oetinquency assessment / project revlewThe PS explore femedialoptions with clientih" pS ir"p"r"t delinquency assessment report and

recommendations. if" pS-pr"t"nt lhe delinquency assessmenl repod and-

,""otm"ndrtion to management and DevelopmentPortfolio Unit (DPU) en banc for de'iberation

o it'e is oresent oeitnquency report and reco'n'1e-dal on to

DPlvl f orfurther deliberationz. it'" n-g-o-pi"t"nt remedial management plan lo BoT for

aoprovalii'iri" ps prepare documentation and exec!te approvedremedial Plansi.z

-in""ro asslst in preparalion oi remedal plan

documen$8. The PS/TO facilitate foreclosures. f;" pS reporl progress and completion of implementation

of remedial and foreclosure10. The AED consolidate remedial reoons

Normalcourse

Alternative Course

F eparA projerr comtbtion and evaluationPost Condition

End of use case

ff centd iorrno eag" vanugen*r27 of 33

User Reguienent Definition RePqlOeatlng a Knowledge MaP for FSSI

Recommendatlons/Clarif lcatlon/Suggestlon:

. Who will be the one to check/review the "project completion documenls" before the

conduct of the post project evaluation?

. Suggest if a next step (review, validation, record) can be added before the evaluatronwithkMAP (to validate alldocuments needed)

. After the evaluation, what is the last step to end the process?

C.nrer for howiedge Managenenthd.r.nn.ni a.'dene of the PhlliDDin6

Use Case NameActors

fq9!!9s'rp!9!r9!!r!g!!.-eE!_4+procedu'e -pSJO, Oevetopment PIan Unit (DPUI and KNIAP

Description tnis use case is initiated when the PS and To preparesproject completion document and ends wjth the projectevaluation with KMAP and DPU

, Pre.Conditlon L- fne proTct Omcer sflould check fi!'st if the assessment,delinquency, progress and consolidated remedial teports are

Assumption

Normal CourEe 1 .2.

i6tFSn6 prepare project completion documentsFacililaie post project evaluation wilh K|\4AP

Alternatlve Course None

Post Condltlon NoneSDeclal Requirement None

End of use case

2e of 33

Usat Requienenl Dafinilian RepallCrcatlng a Knowedge Map ror FSSI

URDR Assumptions and Constraints

This draft report which includes use cases is still subject lo validation withprccess ownets.

Draft Use Case was based on exisiing process maps and the latest WorkBreakdown Structure

The report does not specitically endorse any software or information system ltalso does not propose a particular system inlerface and language lt is the task ofthe Systems Designer/ Developer.

Interviews were not conducted. Thus, this report may lack fudher details of thecore processes as covered by the process maps, work Breakdown structure andGuidelines on Project Review, Appraisal and Approval.

Center for (nowledee Maiagene.rDcvelopment Acrdem] olihc Phlllppin6

29 at 33

Annexes

Annex AlProcess Maps

]-=CT DEVELOPMENT KEY PROCESS MAP

-pct Proposal Processing (1-5 days)

r:f'//\\

r

:€sk Appraisal (8-19 daYS)

LtryryY

pares d4k appaisal repon

Prcpare io. Ueld a ppraisal aclivilies

DEVELOPMENT KEY PROCESS MAP

Appraisal (5- 12 daYS)

R€pod Guld€

hlefrr€ws ano p obs;ponenl on propGaldelalle

:,ir,HiTff i:::5Xl'"X';iT;:l

-ath€6 olher inloinaton lo

check tack re6rd and seoEnlrv

t - - l

('--,'_ ]

j - ----- l rI lnterll€w wllh I i1 supplieB clienle, Il €mploY€eB, sov t f

--

I c"nY,----]es--rs prcporent ro ntruP EPPlcalon

' . - - : : , -

o-"r["oti-on - O"u"ropment Portfolio Unit (OPU) Level

i Prcslamotrce6- I rl s;no. ePP-asrrePonno f I

f --- --1L DP!lell!"fl""ts4'!ql land agenda ol m€emg

I- racrriut€s discussion anoI tusoturion II RepJd- l L

*"rfii#"dG __l- - - |a -.<a't"J----: - N o - - t

l - , t - ,

I D€VELOPMENT KEY PROCESS MAP

DeSeration - Eco-enterprise Advisory Committee (EEAC) Level

t7 daF)

t

ffiPrepares and sends norc€

.ni 2.cn.ir of meerrnq

sLbmns appEisal epontor

Re9:n_ tl.-seno*epo,ts

to eeecm6mbe6 for advanc6 readmgI L Iroa,espresentalionror

inclusion in m€eling kil

t;;lf--J Msr.eq.]L ' . . - i

--1 t \I DocunenFhee(ne L- Fa(

I ooceed inqs 1 .LL

L r rI presenrs arcornts tot l_ _r1 oiues

I delbe€tlon I ll

J hrodspopo.ed on EEA! kI declsion l

f "*-l- - N A p p E l s a r l - - -

I-j."z*--l

-Pt"j;;"-libo"ti"" - Board of Trustees (BoT) Level (1,0-20days)

1/\

tl

i,;-"-"Ll'-,''_

Ficir-naresl*,mentat'onaroG

Prepa€s and sends.oticeaid aoenda I i

or meetns l

-r€sdnts Pojecls

_ ' | - ' - 'I l r inarrzesappraiset Ll I +r ' i* ' 1.l €Dodandprepa,6 F>l RePoru Il1 o.."nt"t'on I I tPesetl'l€nq

ffi

. *

; >'l.t

i;6-sdes EEAC decision 1'

--'-t__

lniorms Pfopon6nr'l 1""eoro"*r""

D€VELOPMENT KEY PROCESS MAP

Deft€ration - Eco-enterprise Advisory committee(EEAC) Level

{7 daF)

Pr€pares and s€nds norcg

mm

F-sciliaGsdd,menl6l'onaro

INO

A L

I

G

T"*;-l- - tl APPElsar I

f-12*-'r

ffisubmils aPPEisal repon(

Frepar6 Pes€nlation rorinclusion in meeling kil

m6mbe6 lof advanco eaomq

YES

'----L..----<€ncaPo,@j"Jy>

lflre-gmles EEAC decision l.

Protect Deliberation - Board ofTrustees(BoT) Level (10-20days)

TPl/\-_o-

ITi/\

fffi

if-eresints Prcteosj l " l '

i

i

Annex B:Work Breakdown Structure

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Annex GlGuidelines on Project Revieq

Appraisal and Approval

APPROVED Bv BOTVe6lon Dec05. 2004targt

PROJEGTREVTEW'

APPRAISALAND APPROVAL

POLIGIES &

SYSTEMS

Prolect Revlew, APpralsal & ApProval Policl€s & Svstems " t .

/ar APPROVED BY BOTverr ion oe.06.2004

Page

3

3

6' | - 8

I

9

9

t 0 - t l

| l - t 2

t 2 - t 3

t 3 - t 4

t 4 - t 9

t 9 - 2 0

2t-22

2 3 -

24 -26

26

26

27

2 7 . 2 4

2 A - 2 9

2 9 - 3 |

3 t , 3 1

Proiect Review, Appraisal & Approval Policy & System

{,l

I

tlv

Polic), Oblectlve

Ellgible Primary Stakeholdert

EllSlbllity Crheria fof Parherr

Ellslbllit'/ Criteria for Projecir

Requnenents for Project Applicadon

C DevelopmenralDeposlB

D Eqlity4olnt Venture

E Guirant€e

Assessmen! Crlt€ria fof Prolect Suppon

A Eco-Enlerprls€ Index

B Loa.s, Developmenl,l Deposltl, Eqult),4olnr Venture

2 Research,Technology/M!rke!Development, CaPaclty gulldhS&

Advocacy

D Dennldon ot Specl{ic Assessment Parrmeters

Vll Prolecr Revlew' Appral3a and Approval Prccess

A Recelpt of Prolect Appllcation

B Appral3al& Approval of Prolec Appllcadons

I NewAPPlic.dons

a D€skAppralial

b Fleld Appralial Vllit & Ba.ktroufd lnvestlSadon

c Uslng lhe APprthalTools

d Dellberallon & Approval

2 Renekl

a DeskAppralsal

b Fi€ldAppruisalVlsit& Back€found livesttadon

c Deliberation & ApproEl

C AppralsalTools

D Appraiial RePon

Vlll ProiecrDo.umentation

lX Prolect Funds Releaie

Prole.t Review, Apprai3al & Approval Poll.let & Systems -z-

/a\{nAPPROVED 8Y BOTveElon De<06. 2004

l. Policy Obiective

Tl's 5e(lo1 outli'es and delres the Po ces svsrcms and procedL'es Llar lhe Fou'daoo' ror r

Sustilnibe Soc'ery. l.c. rFSSI) shall Jnaelte.e i' gru't18li'ancial suPPol to o'oiects sDecnca v

wkh refer€n.e to l$ revlew, aPPnhal and apProvrl p'oce$es and svst

overall mandale of the oryaniTation.

l l .Eligible Primary Stakeholders

Colnste.! wkh its vhlol of a rr3!.hable deveoprert fo' Poor coanJrhres i' +e EhrliPo-es-

the Fou.drtlol .omFit-s to sLPFon orSa_'zed narS'lalzed SroLot i' the rLd a-d urba'

Orrariz€d mars,nrllzed SrouPs Invo'v 18 a.d b€leldnt tl^e hrrere fisfer lolkl qoF€' 'aboJrers

wa;te D'ckeB/worker' i.digenous PeoPles tl^e Phy5ictll/ ciallenged rrn! work4s aro !T

you+;re cons'dered eliSibe PriFarv sBkeholden ir P'olecB r'at shoud ur rarev benerL

1,....'" o.,n0,.".1'v trom i'e a5s sta-ce tl'!t s'a I b€ exrended b/ the FoLldat o'

gv orcrnheo, FSSIsha,lmear both formala.d lforne o'Sarkato' o' rthe orocest or orta' zhg

ii t ,i".rr"r,. t . "'p.*erren!

Fssl shalr h{ew se conrider dL v 'ecog-rled t-ouP3 '' e tribar

couiclk) aPProPrhte ]n the conrext otfieh owi roca cur re

p an of the Foundadonsectors sh.ll be corsdered !s pfio.lty based on the strateSlc direcdon and

denned wl$in a sDecfic perlod ofoPeratiois

Eligibility Criteria for Partners

tn fLrderance of ts nissior or becomtng tT 'leadlng resoLrce 'nsltJliol'or erct_ie?rse

develoDmenc, the Fou.drtiol s\a est2b,6i Pal1leBhips ard provide suPlon to 6eveoomelF

oriented prlvate aid publk orgrnltarons busines corporalions o' indlvduals tha! have stroit

oolentlal!o Dromole development initladves ead ngto socra cnange'

Spe.illca ly, such organlzarlons may Inc ude blrare not llmrted !o as followsr

Non-Government Organizations (NGOs)Peoples' Organiations (POs)Cooperarlves, Fedemdons and UnionsCommunlry Flnanclal Insdlutions such as mloo'llnance orlented banks

Acad€mlc and Research Instltute

SIYE (Prise Busl.$s Co'Dorulio. o.5 rte ProP'ieror)Lo.al Govemment Units (LGU3)

In geneml. ellSlble ortanlations mty qudllry for suPPon from the Fourdation if aid when such

oryanlatlons are characlerized s havinS:

l. Legal, jurid cal personallry based on PhiliPPine aws

2. Trlck record in d€veloPment work as evidenced bv:

a. Succesful manaiment and implement.tion of socio_economic Proj€c$ and iniiadves

u. O.ientea towaras g.eater lmpact lowards commlnitv develoPmenr addressiiS Poveny'

ineoui!Y and sochl iu3ticec. Promoi on ara suppon of susB inable ald eco o8'c' I 3oL ld pmct ces

L2.l ,

5 .

7.L

Proiect R€vlew, Appraisal& Approval Policles & svstems . 3 -

,a\{nAPPROVED Bv BOTVersion D€c06. 200,1

3. D€monstraie srronB tovernanc€ and maiatemeft caprbitirya. Presence and clarity oI onanizatlonal vlslon-missionb. Presence ofcompetent and kiowledSerble Boad, ofiicers and staffc. Establlshed linancial. managemenq openrlonal polrctes and s/stemsd, Presence aid claritf of orS.ntzarioia sccounrab iri$ and operatioiat iilernat co.trol

system5e. Establhhed and regularir/ 1n repo.tint and documentarion syst€ns and pro.€dures

4. Demo.sirate strong finrncla heakh and ccndirloni anained rhe requhed tevetofsufilciency andsus$ rabilirl to 'Tplenert proiecB €{ecr ve y

The above €llgiblliry criterla for parhen shall be landared to specific evatuatton pararne!€B asdetalled in Sectlon Vl ofthis oo cv.

lV. Eligibility Criteria for Proiects

In Seneral, proJects ellgble for suppon by rhe Foundallon shalladop! the ffiple-botrom line (irerhdeflned ln th€ strategic.nd operaronal phn d:

L Economlcall/ vlabl€ - relares to rhe entrepreneurtal caparit/ to r€spond lnd sustain vi3-a-vls tho llfe forces of in eilenrise such as rhe market, lcs productl, lt! organlrrrlon and rhe iisopehtlons s a whol€. Specr0(ally, rhe projecB should have 5n/ of rhe lo owintconslderarlonsl

a. Pr$ence ofclear and viable l)nanclalpian lnvolvl.S commerchl vlability crire.ab. Strong mark€t demand and/of prospecrs for expaniionc. Approprlarene!! and efrectiveness of manrg€ment struclured. Effecrivene$of technologyemptoyed

2. Ecologlcally sound - relates to the lnv$tmerr on enterpftes thar adher$ aid ensurescleener and sustalnable producrlon systemypnctices, ,afe and health/ wo condilions andpromotes tor the conseryrdon and .eteneratlon of rhe eNlronment Specifcallf, rJre project!should have any ofthe following consld€nrlonsl

a. Atthe v€ry least, h is envlronmeit:lly benignb. Provldes oppononrty for (rf not yet dkec|y employins) .leaief and s!3tahable

Proouclon sy$emsc. Provldes for a safe, herlrhy afd favourable work envlronmeird. Enhan.es, protects or rehablllhtes the envhonmeni

A11 projecrapp rcatlons musr lndkate lhe porenlial lnd actuale.oloSical impacr (positive aidnet5tive) of the projecr and p.esent mltitatint measures ro minimi2e if nor elmlnate rheneSative effed5 (wlthin the accephbe leyel) and eihancinr meslres !o optinlze thepositive effec$ In ihe environmenr

P.oject list€d or engaged ln the fegative list shall .ot be ellSible to asisraice as fo owsl

L Miniigand Quarryint Industry2. P.omodig 8en€tkally modified organism {GrlO)L Use ofchemica hoxic pestrcid.s & leriiiuer

5- Loggiig lidustrl6. Vlohdon ot mst€ dGposallaws7. Violatlon ofcear ah act

Prolect R€vlew. Appralsal& Approval Pollcies & s/stems

ra\{/l

APPROVED BY BOTVersion D€c06. 2004

Community or socially orlented - rehtes to rhe enrry and €fiective parlictpatioi ot rhepoor towards soclal and economlc empowerment, ther€b/ conFibuting ro rh€ socia andeconomic w€ll-bein8 of the ridividlals, specificalt women, households and the communiry tiseneral. Specificaily, the projects should hav€ any ofrhe followins conslderationsl

a. Present opponunities lor srengtheirit goveriarce, hanrSemeft capacit/ and.omPe@nc€ ofcommunit/ membeB to eitate ii prodlctive .nre.prises;

b. Involve the participadon of locak in rhe actual proiec! operario,r rhro!8h sust.inabeSrlnrur employmeir or acce$ to capiral or prod!.dve assets slch as savings or capiul

c. Prcsenr opponurltl€s for gainiiS conrro ,nd ownenhrp of productve enre.prisesthrouth €guitible dktributioi and sharing of resourcer and earniiSs.

Thls oiterion shall be assess€d uslig rhe .haE.teristlc! ofemerglnt rocial enterprisedevelopm€nt strat€Aier, denned prmari|y baled oi rhe exlent or level of panicipattonand lnter€st of ihe prlmary stakehold€rc lr t€rms of (i) owneEh p or caprt? lraion, (ii)strateSic decision-maklnS and operational maiagement, and (ii) pro.ess aid benelitsd€rived. il1!stmted below

3 .

{

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d|aLEirshtit: ,$ttn&ffidfti+*.ffi:,

ProJect Revleq Appraisal & Apprcval Policles & System!

fa\\tfl

APPROVED Bv BOTY€rsion Dec06- 2004

V.R€quirements for Proiect Application

Grants

Loans

Proie.t Review, Appraisal & Approval Pollcl€s & Systems - 6 -

ra\ APPROVED Bv BOTYersion Dec06. 2004{,l

* ho n.pc4 APpnRnc

Ardnod Flrtn( !l SEetrlnB l- t[. p{! ! ya- ('- 'd ry rE b Fs)|:t4 t l[t.r n Flnanchl sutlm.ib

Lde. ol li!.m iofr tlr pbpn.tor ,ndng th. hn!..rlon 6eli!

Additlonal r€quir€ments p€ninenr !o rheir ofiered securlry. where applicrbe shall be required ofthe prospective pannen lor submlssion io FSSI. While lhes€ .€qulremenB are not p.e.requisitefo. the coiducr oflhe lield alomhalvisk, rh€ oDrions for sec!rliirnlion shall be discussed w!h rhepini€rs ard lncluded ln the ov€Fa I as$sment ofthe pfopored pfoie.t apflication

Co6r.t.ttt.t dnd Q..!lr '

Copy ol p.rtlicni ellacdl ofisrod

D€velopment Deposits

Prolect Review, Appraisal & Approval Policies & Sy3tems

/a\{Jl

APPROVED Bv BOTYersion De.06.2004

Lhrofl^.omben!Onkero

! c6p lo lLo :1D" lTde- r /nepon 'Ldr 4 iT( reFom,9). Cop/ of DosRl ac.o!dB, ir anf (te. rorm # 6)! L.!6t EsP R.pofr o. Audh (ror bank! onl/)

I C.nlll.dTdc C.ptofrhe SEC R.grrhlonI C.1icd T.r. CoDy.l!$ An ( * of r-o?oni on a By LrdI orriirt.rronil Pronl. (iddcatlryvi3roi, m $lon,,.t.)

Aud tod Fln4ich Sbrehenb In dio P*i 3 f.adLiBt lntd.rm Flnrn.li sbtdnenu

P,opoxl61 8Ji n.$ Phr (*. Fom# lb)Prj@d Crh aow e h.;n6 suGFanr (i:'dotlns:s.Tptors urdli,' PrciiLdc.ih Hiwa h.;6osutddbdi(iitr.rd;!i$ldptJoNi'&d)

I Lrrt qI lTurb6+ oFlc.a (t.. Form * 2)I Noanrld Boud nBolltroi lstris tho lollo*r',3: G.!D F6m # 1) '

t tE1o.!ol ipplodcnFEdr th Fssl. ! , Arihor]1gd dcrgnled rcpr.$nodve

tl6Ot

C..p.rrrv. Ad'kr

Equiq/ orJoint Venture

Guarantee

Proie.t Review, Apprahal & Approval Poli.ies & Systems

,a\{,l

APPROVED Bv BOTveBion Dec06. 2004

Vl. Assessment Criteria for Project Support

Conshrent wirh rhe delined elSibiity criteria lor proiecrs and paftn€rs, assessmen! of proiecrapplicanon for possibe suppon shrllbe uidenakei using the Eco"Enterprlse Index (EEl). Thepromotion or the eco-enrcrprise coicepr is n lhe coitext of esab shiiS a development initiariverh:t inleSrates rhe triple botromline of ecoFomic vlab iq,, ecooSical solndiess andsocial/comm!nir/ orientation lowards poven/ rlleviatlon. Thus, all projecrr shall be consldered aseco-enterprl$e model bulldlng €fforts that are at various eve s of opemtlonaliza! on.

A. ECO-ENTERPRISE INDEX

The Eco-Eiterpdse lidex (EEl) table beow describes the variols leveb th.r should bedemonsFated b), the enlerprise in terms ol economc vlab lit/ (O), ecological 50!ndne$ m andsocia/commun ry orienti!on (a), as well as its replicat on potentlal (O).

An eco-eiterprlse however, 'nay ior nece$aril/ be at rhe safle level in each ofthe rrip e.bonom-line crlteri.. Thus, there would be inst nces whefe rhe developmenr of the eco-enterprise woudvarv and ar dlffereni lev€l for €ach of the sDecin€d botlom line criterla. The deal combiiaton ofthe 381traislated as ai EE lidex would be at 5"5-s

Poten!alfor suii!inable fnancla vlab I iy i! estsbli5hedbu! have yet to be demon*rated

I A.er lof lnt.Sddon oleco og calaSenda ldendiedlrbkeholde.i rdkated in!eresrJcomm henr ronplemeni ecologl.a agenda

a Oppodun i t les lo r roc !U.oFmunr ty in teg6donandempowerm€.t idendn€d and In!e86!ed n den8n ol

DE ldontilied ecologicallgenda already lnteg6ted In terms of

O E.o.enterprlser provld€ acces io serykes (.. fnancd,mfket te(hnology) and employm€nt opponuniries lof

O Rep cation potentialotEE mode matrie$ed

Flninda perlordance demoh$dle vlab lity bursusolnabiltt s fet io be,ch ev.d

Flnrncia perlormance rn !erms ofvi.bllry andsusdlnrbilty at pir wllh ndusr.ysondards

E Ecological outpuB dem.nltnted andvenlabe

a Ec.-enk pnrer dehonsare not on/a..es io re^(e)and employilen! oppotuniti.s bui ako ofer Fnr. pationn dec sion-making and/or ownershlp

O &eplica!oi ol EE modelsoned at ln led rcale

8rofth dnd/or exPanslon

X Eco og al €fecB rehabil o@s, enhances or protecB de

Proie.r Review, Appralsal& Approval Poli.ies & Syst€ms

,?,\grlAPPROVED ay BOTVersion Dec06.2004

B. LOANS, DEPOSIT & EQUITY4OINT VENTURE

Reco8nlzins thar the concept and imp emeiot on of rhe e.o-efrerpris€ model ls st ar ai infancysta8e, FSSI nrar.irl 3uppod hroJt- oa.s. deposit equiry o-.olr "e..ure nry be e\te-ocd !oprojecB atvaryinS evek, bu! nor lowe. rhan tlre se!minl'num standard as fo owsr

Each of the trlple-bollomline criteda are rnnslrted t!.ther io spe.illc parameteE wirhcorrespondinS weiShts asslgned as jndkrred jn rhe table below dependlnS on rhe rype of proiect(i.e mioo-finance vs. eco.enterp.ke) The weights are asl8ned ro represen! the relative value ol€ach of rhe panmeftre under a specied bottomllne criterlon relatlve to the nalure oI rhe

ownetrhipandcoitfol morepronoun.ed/pronoted;Posjtlve efieds of soci! /comhunity irleSErtonrc.o8nized and measufed wrh n the indu*ry, sector of

O Rep .ation ofEE modelpromoien wnhi hdsrr/Aedor

So.hl/cohmun iy panclpation in deckion.mak ng,

nanc 5usojnab it/ can suioin ma&e! cohpe!!ionand con!nuing grokh resultlng ro susoined econom. wo t.being ol community and ecological prore.rio^.

X kologica eftecB ex@nds to con5emtlon andprereflrtlon olenvironment a! we las (onribu!e5 ngnificant /to improyed nnanc al 5u5b nabil t/ and commun ry we lare

a fositive mpact oi sodal/cohmun i/ Inre8.atonesoblished beyond lndunry, seciof of lob{ector conrbute3to co*-emc ent buiine$ oper*on and continued comm henrtoMrds ecologlcal prolec! on

O EE mode benchmark ior r€ollcadon

Proiect Revleq Appralsal& Approval Policies & Systems . t 0 .

ra\ APPROVED BY BOTVersion Dec05. 2004

t l

\rfl

Snce dcvelopment deposits rre dengned to s!pporc mainy mkro-fnance inhiatves, and at thesame rhne g€nerate alernative investmen$ for the Foundalion, the securiry/co alera ad€qua€yparamet€rs !nder e.onomlc vlabllry is deemed not applcable.

The rbove panm€ters under specllic boaomline cnte.ion are funher lnndaled and delifed bfspecillc indicaton (see Tooltt4A-q As3e!6ment Ratlng Guide). Prolect aPP catio.s sha beevaluated osing a scae of l- 5 (with 5 a3 the hithesr afd I as the lowest) that whkh best de(rlbeor reprasenB the condition ofthe proiec! based on the Panic! a. Pammeter. (See Secxion Vll:C. Appraisal Tools ofthl3 Pollcy)

C. GRANTS

This f.cillty k a raisilory nechanism almed to slppon clvl so.iery orSaiztlont iitatvesrowards povefty r€ductlon and socio-e.onomlc justice throuSh Sraits ssistlnce As s!ch, lhisfrcilky ls an opponuniry to Introduce the €co-enle.Pfte concePi of inle8Et nt the fiple_bo$omline crherir, blt of dillerent minimlm staidard se! ln contdemtion of the iature ol the

Ljkewis€. the triple.bottomllne.ritefa are translated tufther io specilic PammeteB withcorespondinS weithtr asiSned as indlcated in ihe table below dePendint on the ryPe or Proie.t (ieiv€llhood vs. research or advocac/). The weiShts are assiSied (o .eP.esent the rehdve value oieach of tlre parameters under a specified bottomline crilerion re ative to lhe nalur€ of the

ECOLOGICAL SOUND NESS

SOCIAUCOI'lMUNITY ORIENTATION

Project Review Appraisal & Approval Pollci€s & Systems

2, R€3€arch, Te.hnoloSy Developm€nt^/€dflcatloq Capa.lq/ Bulldlng & AdvocacyRelated Prolects

Th€ aboye parameiers under specific borbmline criterion are funlef tmnslated and defined byrpeiflc Indrc.tor! (s€o Toolft4E.F: As3essment Ratlng Gulde). Prol€ct applications shall beevlluated usint a scale of l- 5 (with 5 as rhe highest and I as rhe lowes!) lhat which best describe

APPROVED Bv BOTYersion Dec06. 2004

L Ofsanizatronal& ProJect|lamsemenrCohpden.e

2. Relevinceln Relairon toOther oev.ropment Inlmtrveg

l. Potendillof R.pll$don&Susbtnabtlrty

4, OfganladonalEnvlroimenoll.,lana!.m.nrPollcy

5. PotentlalE.oloSiollhpetBen.fr!

6, CommunrtyOutreach/Prdlcrpatlon

8. Stdt€&/ on Social/Communlty lnteSdd6n

9. PotentralBeneis to TrSet Communlty

?rri.d Review, AppEisal& Approval Poli<ies & Systemi - t 2 -

,aa APPROVED By BOTveBlon D€c05. 2004

panmeler. (See Section Vlll

{nor represenB the condhion of the projecr based on the panicularC- ApprailalTools ofthls Pollcy)

D. DEFINITION OF SPECIFIC ASSESSMENT PARAMETERS

ECONOMIC VIABILITYRele6 io th€ pa* flnanclrl co.ditlon of th€ organiaton and perfomance otthe ent€rprls€ rs refecied In lheh audlted and Intend Flnancial Surem.n6. l!3hall cover forf (4) ke/ *as a lollowsl

L LeveriSe - proponlon ot debr b equir/ Gan be ludhacli$lned b on8{€rm & shoft{erh debq

ll. Cap bL Adequacy - propotlon ofequL,t !otoola$eBlll, Solvenc/ - perenbge by whkh i$e!, .M cove. lrabilities and

other obllgailons

EoLH]!rc:ii[?ile-Ar!4lic$L Yleld on Ponlollo - reurn SeneEted In proportlon ro the

total pontolioll, OpeDlional Se l.Sutlcr€ncy - percent Se bI whch iicome

frcm opeEdo.! k lbleto cov.rdlr€ct opemtinS costlll. Flnancra S€lf.sufilclency - per..nirSe b/ whrch lncome lroh

openilon3 h.ble to cover opentlng and Unandrlco*iv, Adluned R6turn on A$ets - r€turn genemred ln pfopornon

rolos dsels skrng rn.onrderanon 3ublder and inflatlon

fedrc.E$94rl!9!c!l!!oo!l. Gro$ P.oft l,1ftln - retlii or 3pre.d genented on slei

atre. coi! ofs e! ldhect or vrhble cof)i . N€! Proii l'4dg n - r.orn of spreid senenred on eles !f!a

cover n8 ov€rheid of fixed.oiilll Reiurn on AseB " return Senented ln proponloh ro tobl

lv, Inrarnal Rde ofRelurn - rerurn 8€nented on nveimenr wnhdue conr deElioi on the co$ otlunds re aive io ome

' A$edPonrolb qudtf (lct-tsjs6.Flnan.e obe6doh5 onlylI Podto o at Rsk - nte otdelnquenc' or receivabes,t rsk h

proportlon to th. lol.lousanding lodn portiolrolr Repa/mem Ra@ - nte ot prnclpal pa/ment o. cole.tlon

genented In proPonlon.o.o6l princlpal duelr. Loan Ponlolo to A$et - propordon or roan expolure of

porifolo In.elatlon 6 roh a$eBlv, AlloMnce tor Lo.n Lo$ CoveEge - propodion ol loan o$

re!erye li felatlon to the amolntoldelrnqu€nc/v. Flxed A$eB to ToEl A$€6 - prrpodi.n ol fixed ases to

toa!asseBvi. SavrnSs b T06lA$eB - ProPordon oflavlngs to toalaseB

i, For ml.ro-finance op€Etion - propotion otliquid a$et5 (cinbe conveded to cish wkhin I hontl) in propodion tosavlngi/dme deposlt liabllltles

ll. F6f eco-enterp.k€ opeEtionr - proponlon oi lqurd a$eBGai be conveted io .a!h w$ I year) in proponion rocurrent liabilites Go mature within I teir)

Prolect Revlew AppEisal & Approval Policies & system!

f^\rtt

EqI!!r!:Ejr n.e opeationsi Co* Per Loin Outs€nd ng Ralioi Operd ionr lE f |c enc / Rdo

APPROVED Bv BOTYlleianDcd4,2!=!

lq l!r!l!.fftr!! O!!i Opcratins Co* ro Tobl Porfcio proponion

opamtng co* (Mlusve o t a lowan.e lo f o$es &coi)to lob pofttolo

i. .qdminuftative Cos ro lobl Porioio - p.opofron oi roc:dniniitrarive co* !o 106lpo*lolo

taLE!!:EI!eIpI!!-a!!ri!La!ri Invei.ory Da/s Turn-Over - nuhber ol d:/5 b/ whkh

inven!oryAtocks af e rePlenishediv Ro.eivrbe Day, Tum-Ovef - number of days by *hich

fece vab e5 arc colectedv Pr/nbla Da/s Turn.Ove' - ^umbef ol days b/ wh.h paynbrcs

v . Sa re r t o A$e ! Ra t i o p ropo {on o l i aes gcnc f t r ad n re? ron

Rcrcd ro rhc prole(!ed fnrn.iof the entffprs. bnred on tho specficiof {.1)key?rea 6 ro lows:

oPc rn tona a *umP ion j .

i Lcvcnge . Debt to Equ iy (rrtcr addni.ni orn)i Cxp b lAdcqu i cy - Equ t y t o Asd h f t v i dd toM l oM), . Sdvcncy pe rcenbge b t whch a$eB c i n cove r r b l r ca . i d

orh.robrsrtion! (irief rddirionr oan)

torfkre.li-DirocLOper:i!!a!rrI Y icd on Por t fo ioi, Op.rition^i Sollsufilc en.yi Fnx i .h lSe l .Sufc ien . /v Adidncd Rentrn on Asats

fu rE-ojtutqlPrEel'lrlllarr' Gfo$ Proft l\lar8.

il. Not Prolt fl.Einii Rcturn on A$et5v B'exk.Even Level eYe (volume) of

bu3ne$ w l lno tEdnchrd pro f t nor o$v Payba.k Pefod - pDr iod by wh.h

i ^ , i . / oo ' ' i o o Q r { r ( Le r J . q . r ' " pp - . : o . . ,

ii Loatr Potrfdlio ro A$ctiv Alowad.e for Loan Lo$ Coverasev . F t cd A$ec t o Tos lAsesvi Sav ngr ro TdslA$os

r to rhe capl.iry ofthe oGanzalion ro manaSelhe enrerpfise a5 nd.1r

' T6.k Record in Development and/of Enrefp.ise Opem!onsi Number o i yea6 i n i he p romo ton and /o r mp lemenGt .n o f

e.on6hic development prolecG

cr jFc t Rev iew, Appraha l & Approva l Po ' :< ie t & Sys temt

APPROVED Bv BOTVeEion De€06. 2004

i. Publc inaSe/qepuuliol n the (orruliv r1d/r. ' or{7rll. Development nandae .nd prosEms/serylces

r. DOSRI ac.ouiB/ Exposlfe ro OfilceBil, Conpllance io !6rutory la$l[, qualliy of le.deGhip & tovern.icoiv, Relailoh,hlp b€iween Bo.rd & nafi

l. Rdpaym€nr parrormaice wrrh FSSI (rf extittns Gttcnt)li, Repdlnent perlornrnce wlth olhef cf.dkoB

l. Flnin.hi records & r.ponjll, Accounllng& Int.rnalConrolS)rtem3

llr. Opddnon'3 S).tens (whl.h.v* b appli.abl.r e.drt, tavl.s! &.olle.tlon, Inv.ntor/, mark.tlng, ptudoctlon, et<)

lv. fils & Admlnht6de€ S|*em

Lev.l otPfole$ronall.m/ Compei.nc€ olrEfiAd.q!.ct ro op.6dont & proSnmts€ryrceiD6l nedloi of fundlom/tasks

L

vlablllq ofrhe r.chnolo8y used B lndlc.!.d by:. Effecrlven.$ ofrhe ml(o.trnaic€ e.hnolory

fed brliif of the technolosy usd a hd ot.d by:' Approprlateneis olthe echnolot uredt Compl.xrtt ln e te.hnologrcalrequlremenr! ofrh. burlne$r P€cdce ofprcdudaid/of ero.es! R & O' Ac.e$ to luppy 6lraw marerlabr Accesto rechn c.l luppon *dlces. Degree ofconcentEiion or lnleSEtlon. Pfeience olr€guladon

ngnlilci demind ol the producl' & s.dlcer li th. er8er.oomunv s

r Ma lier ! lzel8roMh/de man d. CaPtlve markednche

rhk €xDoslr€ of the Fou.datlon. as lndlcaGd bv:

li releE to th€ s6re ol rhe

to the covenge of collat€ral and orhef iomr ol security to ml

marker.nd economic condiri6n d lt lmpa.i! on lhe vlib lV and profibblllry ollho enteenseas hdl.aied bythe io lowl4:. I\1fkd3iz€/8ro*h/dehand. Mtrk€t rhare volatilltyiCaptve markethlcher Pri.esen3ltivity/compeddven*s' C/clc.lity/serronalrVofbuslne$r Pfodu.t difiereidadonI Ahihblllty oI ilbstltule!I h€nrlty ot .ompetltlon

. s4deB to dir (fof equlrylnv4h€r)

t TyD€ ol le.urld ofiercd

Proiect Revieq Appraisal & Approml Policies & Systems . t 5 -

/a\{,l

APPROVED By BOTYersion Dec05. 2004

haiaSement 5uPPofr or &ronr (,e

(pos !ve of negdive) or t

El1S.r SPS) appled wkhln the lnrrlu!on ann/or enrerprrse opem!on inmlnimlzing oveFall env ronmenbl impa.r Spe.llica ly, lhii can cover bothsf$ehs arers.nd thelunctiona areas wrhin the orsnniation as ro owi

!Eiem:lcaas. Syiems mplemenktion (production/re(hholosy u5ed)r Le8al halterr/.omphlntr Env ronnenil.orinS

Ellnnl4niiire

t Ex ic rna lCommunc i tonr

ICAL S

oporations ind crternal/ n 6 mmed ia te i u f r ound ig l i r

lllrlniLQplrq{ll(lvtre4.ppll!!bl!l

. EneBy Consumptoi

. Waler ConrumFdon' wate I'lanagement Gold & llquid)

. Type olPfotcdr Supported (as applied to

t Po$rb. efiect olproie.B 5uppofted on. Promotion orenv bnmcnta aMfenes

mi.ro"linance operation

Ellqllal.tQl)lliltlon rwh.re applicible: sh.rr be urod .nv I rhs chrprBlreob€hdon ir ri8nilcant in affe.dntthe exremal surfoundinca,

6r8er communiq via-vu

. Current ousealh - numbr ihd pe(enase (%) based HH poven/in.id.nce in !he pr.vlnce; o. specirc nrbiector per provnce Goudrndude *orkeB, source ol raw materiak, hrke.jns channeh HFpro.e$or!; ior MFI indudes $veB)

. Poient.l Oureach - b.5ed on HH poverr/ in.dence

t Tob oar cove6Se olihe secur t/ ofler€d. Degree ol recoverablq of the ,ecurity (mark.hbiity & eale n

eB to !he lislituiionrl dlfectlon to suppod €co-eni€rprne development arIhnr.,ted b/ lhe presence and adequacy ol policy 5uppod wth n lhe

qe 'e : ! o ' he p re ! "_ (e I : pD 'op : r " _e$ o f t Fe 1s ! t u !o - - r o . ' o 8ecologca complirnce as .ppl ed n deir enterprke opention

Project Review, Apphisal& Approval Pol i ( ier & Systems t 6

,/A\{,l

APPROVED Bv AOTVersion pec06. 2004

communiry from the proicd s iidicaten by:' Owner5hip/.,p sl zd oni Emp o/ment seneniioi' Share h economic returnr

ruPpodcd ln r.lation co aproPos€d edvr!y'proled (o

q.iFr 'o c e opooiiul, q ro ,re1R1d;iie p..r js a t l e r p ,o .ec .1LDoo l a . 1d a ,ed b /r mechaninr ior susai.ed undetukinS _l' Ayahbl iy olr.so0r.es

' Probab l rq io r rep l tcar ion

Vll. Project Review, Appraisal & Approval process

A. Receipt of proiect Application

T-e rorro, l t 8r ,ae r res a.d p-ocedu-es sFt ' De ro owca i . r t^e ,e.erp! a. d Fac\ .8 o. pro,ccr

: -oDos: s /See Figure t : process Fto, . Receipr of pro je<t Ap; t i< l r ion) "

l : . -_?: l l " - : " s la 'oe in cr .a,8e o, coahs r .e propo\ars,ec"ved o/ therounoaton ror vr r ious tundinS s lppon.

a. 4 l l , ropsi ls -cceled r -oJ8h re, , - ,oLs.r , r -ets sh:{ he IoMrded !o - reufu Personner n.charSc

b It the proposat is sent via majt o. submitt€d to the offic.. tie adm nislE.ivepe.sonnershat tbe respcnsibe io re.e iye the proposat .

c f,the orcpoq 6 selr vrr Frlit rhro-t1 tfe FSS| erajlallkclJ ,,re ro_aalolonce- srrn De re\po-5 be ro re(eNe the p.oposal

d. lilhe proposa k sen!throlgh rhe pro8ram Ofltcer' sameshaltbe responsibte inre.e,vn8 rhe proposit and foMrd such proposats lo the DpU pe.soine tf-

'5e!&Icq+18!a4- oirislenc/ wtth the tocur or prio tysub_

neren to tre Fenrd-Giia: , j1 . " - " . , , -p r l o r tFe D.o ,e( !o , $oran r , " " - t ; ; r -o , p .opoa.o- o r wo-en r : i_pr , ._8 (d ren o-indirea) rn the proie.i

I Proporloi of additi.nat/potentht wom€n panicpatoh/ii"ayemenr& economc opponun tes io r wdmen

12. lmp,a on WonH

.an be d€nled br the prcrc.r l; rF;commun l t y . r e rdon ro economc , t echnoqca l env ronhenb t and ro .a

Fri.c Rryie*, Appnhrt & Approvar porictes & Systehs

,a\ APPROVEp By BOTYe€e! De!!!,2!01

e. I :_e proposa is s€nt rhrolth rhe Board of Trlsrees. members of lhe Generaltuienb y or orhef staf membeB oi lissl, ihe adm nisrrarve pe60.ne h ii chaftei . rece v inS r l re proposr .

a proposa5 receved shoud be samped as " receved" wi$ ihe corespond ie date ofre.e p i and n i t iah o i !he person who feceiyed rhe propoe

I. iac 'ate a hore efficient proce$iig of prolosaLu,bmitred u.de. the FSCS-SEEe!a!!q. parliculary tha! for Sustn iabe Live ihood and Capabi ry Build ng w ndow, a curorper od for app.a isalsha be se! is fo ows:

? d Crq e: Fo.€lved lrom Oe. 16 June l0

Proposals receieed after a specined cu!-ofi p€riod sha be coisidered for proce$ it in rhe

Propoeh subnri$ed for advocacy slpportrecc ved, but in no ins!ince should it be les

gt

5

shall be cons dered for eva urtioi * t sthan onc ( l ) month pr io r ro rhc condun or

Thc DPU peBoincl in-chirSe shar be reipons ble for assisninB the pfoposrr refere.cenumbd and swm^rizinE nr€ denritinS information of each applkarion i. rhe Summaryof Project ldentilicatjon Repoft

Thc proposa .eference iumber should follow rhe followinS formar

n-

mmyy'xxx

!hc r$onrn u5ed ror proposr

n!mbef of ihe proposai

8

The proiect idefrit n8 informf on shali ic u de the fo owligl

a. Name of Proponenr

c. Contzct Pereon & Positio.d. Ofice Addres & Contact Nlmberoe. Type of F nan.ia SeNce RequesredI Amount RequeeedI. Type olOrgankation (i.e NGOS. Coopemtlve, erc )h. sEtus orApp .eion (i.e rew, reak moo. StatrAsitned ro undetukc Bsesne.t

Upon ssltn ing the proposl reteren ce nlmbe r and re-encodinS th e d entlting n fo rmat on,f ie DPU penonne in<har8e shal l !ndemke a pre iminar / rev iew of the iocunei t . tonreq! remeits submirled by the parrner (use Ar,s_esrment Tool #l: CqmplialllrgEli8ibilitv Checklist). The duly ac.omp shed A$e$ment Tool # | rogether with theelqjs.l-Apo/aisal TrackinS Form (use Form#9) sha b€ artached to the slbnttedproposa and other documents b.fore foMa.dins r to the respectlve Prostum Oficer(POt or sen or Prosram omcers (sPOt.

P.oject Bevi€u Appraisal& Approval Poli.ies & Systems t 8 -

/ar{nAPPROVED Bv BOTVerslon Dec06. 2004

). The DPU p€rsonnel in-charye then updarcs th€ RePort on Proiects in the Pipellne(Report # 2) genemted monthly for lse of th€ DPU and rhe Executive Director.

lO. For let!€rs of quer) received by lhe Foundatlon, the DPU PeBorrnel in-charge shall se.d aformal acknowledgement letter (s€e Form # l0) to the ProtPective client ro be tgiedb), the AED, The le$er shall enclosed the followlng inlormation on Fssll

a. Name card of the ProgBd Officer in_cha€e related to lhe querlb. Brochure ofFSS|producti and s€rvicesc. Fssl L1.t ol Document Reqlhemenisd, FSSIAnnual ReDon (lfavtilable)

Appraisal & Approval of Prolect APPlicatlons

l. NE\ry3E4llArl9NS

AllD.osDecrlve panneru shallsubml!the requlred Inlomrrlon and docuntr$ d rectlv ro the

Foundaion at 3;ecned h Sedio. V oflhe Pro,ec! Review APPErsal & ApProv'l Po q a'd

S$tem! of the FSS| Opemtlon3 marlal. (S€€ Flgure 2r Pro.ess Flow - ApPralsal &

Approval of Proj€.t Appllcatlon!)

Pe!kApg3k4!

t. Uion recelD! ofthe prorect appllcadon' d'e DPU safiasslg'ed shallther conPete the'lirhl d$k apDralsa' bv deern'.lnt the admlnl3tratlve comPllance (use

Ar3eisment iool #l! Comollsnc. & ElldlbllltY Checkllst) alerrst tte €lgib:litv

crlterla and mlnirnum Intormadon requircments let fonh by the Foundadon'

Soeclncallv. the DPU ,t:tr shalL detemlne $€ followinS:

Comoliance of the requlred documents/lnfonnationEllSlbllity olpanner, proled end Primart st keholder (as per FSSIPo cv)Conpletelels ofmlrimun .lormadon regard nt the ortan'zaaonCompleten€ss ofmhlmLn InforFacon reta'dl.g tLle Proiec!

2. lfthe Dro ect .pDllcrdon based on d^e liithlasessmen! fal3 to oJallt for orocess -8 or

aoo.riat, a toi.. .otficatlo. (use Form # l0) 3ha'be se't !o +e P-otoedvepanner to requeir for the addkional doclments/lnformadon

3. The DrosDect.ve Darc4e6 shtl be Provlced a maxlmum Perlod o'Mo (2) mo"tls f'on

de@ of nollctd;r to respord lna conPv lhe reou''€menB Should 'o respo'3e be

recelved from the prospe;dve panner after 2 monthsi ihe lroPosal shall be coisidered

lnadlve and removed from rh€ accounts ln the Plpellne for Proce$in&

4. lfthe project app' cado4 qua|lles for Proc€sslnS the DPU 3t!fia$r8red thel urderokes

tne Initlrl finan;lal, organlzrtlonal, market and te€hnlcal as3$3mcnt bsed o'

a%llable Informadoi Provided tccording to the aPPfov€d 'rheria for Proje't

5. Usirp Ue financla repo6 tnd Projectlons subnllled' an Inlual lnanca anal/!! (u'se

A$;!'ment Tool # 2r Flnanclal Analvli5 Gulde & WDrkhe€t) nal be

undenaken to delermine lhe finan.hl condition and histori.al financial Performance oI

dre prospecdye Panner, as wellas the viability of rhe Propo3ed Projecr

6. Likewlse, based on the tubmitted ProPosal aid/or butine$ Plan the ortaniadonar'

ma.k€t and lechnlcal realirements of the Prolec-! shall be asesled ln rerms of iis

b.

d,

Review, Appraisal & APproval Pollcies & svstem3 t9 -

/a\ APPROVED BV BOTversion Dec06. 2004

organlzationar competence aid proiecr feasibiiry based on tarte! marker. ecotogcalsouidi€$ ofthe technolo8/ and socia integEtion.

A.redit investlSatlon where applicable shail be conducred either throu8h rclephone.alh or fohal .eqlest for informarioi (se€ Form # | l- Credit lnfornatior Sh€eotron the olher $editoB.

Likewise, an apprasal ol the securlry/collareral opdons must be u.d€naken lstn8 (useAssessmentToolf 3: Collate/al Assesrnent)

The inltial result trom lhe condlcr of rhe desk apprasal may be refecled andsummarized osint the A$essmenr Raring Guide (see Aes€sgment Tool f 4) and !heA$e$menr RatinS Worksheer

lf bsed on the tinaicia and rcchnkal nsessmenr major or sitnlficrnr revistons needs !obe uidartikef ii the overull design of rhe prolecr thar would have f.anca andoperational implications if implemenlin8 rhe proiecr or busness, r,rris shal becommun caled n wrt n8 !o rhe pa.tner prior to undenaklng a neld appdisal vis ! Aead rme sha be provided agein.o rhe panner to respond and claf t the concerns.

{,l

?.

7.

t 0 .

tlelCABp-rabal&-8a!k8ro!4dlqi$aatje!

ll. All proJect appllcadons subjecr !o an appnlra must underso a fed appmhal vhii aidapplicab e bdckro!nd lnvesdSarlon.

12. Th€ oblecllves ofrhe neld app.aisa !hi! arei

a. litroduction olFSSlto !he officers ofthe of8aila!oi and vke-veBab. To orient the prospective panner on the eco-enterprise model b!ldn8

stntety ofrSSl, iic udlng reevant po cles and appais:lprocesc Deepen unde(i'rdinS oflhe opentons olthe proposed proi€crd. Assessmenr ofrhe or8anizatlon's maiaSemeftand i.tefnal contfol s/st€mse. validaton th.olth informal nreNiews and inGraclions oI rhe prospec.ve

Pa.tie.s c efB base or arSet marketr nspection ofotrered co atem s, when applkab e (usihsA$essment Tool# l)g. Val ldate the ln i ta desk appra$l resul rs

13. Dunng the actlal condu.t oI ihe field appraisa vislt lhe statrshrll be tuided b/ rhe

a. Explaif to p.opoient the FSSI €co-ente.prise model build n8 simteSy, theprojec. app ra sl proce$ a.d other re evant po icies

b. lnteryiew key peBo.nel and tarSet panlcipants of rhe proieft and probe onprcPosa deta ik us i ig the 3BL and other appmha cr i te .a l !woudbehelp lu lil the sdfi prepares in advance tu de questons lhat should be Nl<ed durinS.he

c. Obsene and check proponenCs actra p.oduction/opeation5 and internacoilrol & sys.ems

d. Clariry aid check Eaps or incoisisEnc/ lf info.mation provided and actua!

e. Dkcu$ aid check colhreral optio.s (if iecessar/, nspeft propen es otrered s

I Info.m pfopon€n! ol olher requhemenLs that need :o be s!bmitted ifapp cation s aPPfoved

8. Galher other relevant iformation to establish proponenCs tmck reco& anddedibilit/, and viability ofthe business

Proiect Review, Apprakal & Approval Policies & Systems - 7 0 -

6\\rtl

APPROVED BY AOTYersleo D!!q4*20!r!

I 4 After the conduct of the neld lpPrana' vtit' the st,ff revitt ard review t|e resurr or ohe' '

"tr"rt-"", tr"',t 0."" br5ed ol adoiora in'o'nldon Setruted dJri'g the visiL

Uilns th€ APPralsal Tools

lS. To underuqe the ass*sment of €verv Proiect aDPlicarlons 'e'evant asse$ient tools'"

;;i;: ffi; ;;rd;;;; "ll *e star'i" coi'i"e rli wirh a more obieciive evaruatio' or

the Prolect based on th€ deln€d crlrera'

Aseslnert Too ts |: ComPlhnce & E S brllrv Ch"krh!

liiirrr*r r..'" l,n-*hl Aral/st Gu'de & wo'ksheet

i...,''i"iriJ *:, o.e*r'ado;l& Managemenr Revrew GurdeAs3$snent Tool# 4: Colhtenl Asse$meitAssessment Tool# 5:ldsessment RrtlnS Gulde

I Ase$mertToo'F 44| Assessment Rating Guide (Mf-!oars)

. Ass€ssme.r Tool# 48: Assessne.t Ra!'8GL d€ (mf--Deoo$tl .

' Assess'Y1en! Toor ! 4C:Assessmer! Rati'8 GLlde {EE narxelng)

'Assessre.t Tool# 'D Assessh€t Radlt GJlde (EE MrnutctLaig)

' i i i ""- i" i i ' . i ; +'*$.ms! RathtGu de (ror Gn1." ' Lve' nood4' lssis.monr roor * +r'*essment Ratlng Gllde {fo' Gnnts'

Research/AdvocacY/)

16. Usl1E the results f.on'tte other a*essn€'t toos or insrunert' the Prcied aoPlkadon'"

'-rlariil """',ri"o

*"x,he sdle or l' s bv hdcatrnt +e cor6Po'dhg runber- '-t\€

ii'""'"", n",icw;d"h"e! th* w\kh.bes! descrhe!;i T[:il:"I"-::{';; fl

the Drol€ct based on the Panicultr Param(As3essment lool # 4)

17. To determhe +e Po' r t ,core for a naio 'prr rmeler (e growt\ .a ld s l ibr ry) l ie' '

" * - i " * " ' * tnai be conpdted bv 'dd lnt a l l rhe Poi ls score or l l l sub--dtato6

undeat dlvlded bv the number of indlcators

18. To det€rmlne the welShted 3core for etch of the kev altessmen! Panmeters (r'e

hlstorlcal fina.clal Performrnce), lne average icore sMlltirsrbe comPuted multiPlied bv

the a3slSned w€l8ht for the spednc partmeter'

19. The sum ol all the welShied 3cores shall be the final and over{ll ratiit of r 3Pecllic

20. Projec! aPgllcltlo.! !o qua' fy lor asshbnce should 8e! at lersi d"e mh mlm PercsriEe-'

..i"" *!l "a

r". *"1 of rhe flarc'ar sefrices provrded by the FoJndaion

Dollberatlon! & ApProval

21. a proie( aoplkatiols shall be Pres€'ted for deliberatro' and decls'ons at resPective

te'e1s o'f aurnorrtv. uasea oi de 'Fou_t offlrnchlsLPPoft requ$ted n follos

6erbeE!,a lllproie.t 4plcatjons .-. -Re.ommend5 allproi€( rPprcalon's o Ea!

beyond its aPProv ng authorit/Approv4 prolec! tPPll(atont as roros. Gdnc uP @ huimum or rruuuw. Ldns and Dev.lopmenbl DePo3l! up ioa

mdldum of P500 000

FlFt Review, ApPralsal & Approval Pollcies & SFtems. 2 t .

{,lAPPROYED Ay BOTVe6ion Dec06. 2004

22.

21.

Prior lo any dellb€ntlons. all document reoulremerts should have been submifted and .Reld valldrdon of the proleft conducled

D€v€lopment Portfollo Unlt (DPU) - Durlng $e deliberations, lhe DPU renn€sand irnpfoves on lhe appnlsal repon based on the asse$menr crll€ria and polkyr€qulrement! of the Foundatlon. Durint such delibe.alion the followinS maf.ecolution,

a. Approval of lhe prolecr if withln the approval aurhorr/ and subs€qu,.ntlsubmltted to th€ Borrd of Trustees for ntiilcatlon. Th€ DPU stltf thenprepares and send !o the panners th€ Notlce of Prol€ct Approval (useForm # l2) duly 3lgned bythe Execudve Dheclor.

b. Recommends approval for EEAC deliberarlon if prolect is beyond the appfo%authorlry. The DPU statr prepares a .evrsed lpprahrl repon whef nece$arlincorporadng the commenri and inpu$ from the DPU d€libenrion.

c. Recommends for fu.ther developmen! lf the proposal does nor meer rh€requhemefts of FSSI bLrt could be enhanced or improled. The DPU statrassltned ls tasked ro communkate to the pann€r for addhional info.marlon o.proposed charSes In r\e desiSF oftte prolect

The appllcant shall be glv€n another two (2) moiths |o slbmit the additloiallnformation required or the revised proposal. Sho!ld no response be receivedfrom the prospective partner after 2 monthsi the proposal sha be conslderedinactive and removed lrom the accounts ii the pipeline for proce$in8.

d. Projecr applkations may be disapproved on the basis oflhe follow nell. It proiect or proponen. organiatlon faik to qla t based on the

m. rdn cr rer a set ro- a$istr.ce2. lf requesred suppon is not withln the cuffent sefllces offe.ed bI

FSSI3. Itproject i! notor do€s no!fallwithir any ofthe programs oI FSSI

Review, Appralsal& Approval Policies & SFtems

" i"':#j:lj"iff :"'":"*::ffi:"'ffi l::::ffi'fi [x::,[':jT :":]"-24. Eco.Enterprrse Advkorv com-mrttee-(E:f":).;ilHt i$.:"1iT:::1.fi

EEAC provrde' coinenls ,"d "*'

lo' -".::*; ; *" ii,"i,"*" o"*g *.

6n rhe assessrnent crlleria ind Pollcv r€qurret

ii'iii"."ii"L**tg 'av 'eso urro's mav bc achievedl

'f,Ti';:':'rT'"fi i'.1[rnl"ji:*;mrff j:l,.']i]ilDrePare! and send !o the Panned me

i t2) durv siBred bv the Executive Di'c'ror'

b. Recommends apProvarlor BOT deliberatlo' if proiec! s bevona rl^e aPP-o%l

" n:I'Jg,rff:y#iJ:ffifi:Jill;*;:T:ff:

r€P'd when necessa'/

" r;ilT:#::j":$$:i:iT::: i"::H ";itsx'"":ii',i!il1IT:j.t"ru :llX"t"i:,,"';1":li"l':::::"",1T'i:"":Ti,:',1.$1.'lr

cnli8ei h +e 6ei8n of $e Prolect'

" li:.TjlH"[T::::: f :.'j'"':$H::l !i::[ :: i:':il:'!:'d:."j:1[:i*:l;'i"* h:r""*:"1tri]l:l!'nlr:?i:'#:r;'"' ""'""

"?;:1", j::J,ii""'* j:':::..::.?""::lil"'::Tl::"::i:i:'*lljli'iii:.,.i"..'"0 """""."y.: r?t'# p;'jJ[::';i,T :|,T"'-,Ul(XiThe DPU sljff PrePares and 3end3

ioim * r l t a' i 'c""d bv '"e Exe'ucv€ Dkecto'

29. Board of Tru3tee3 (BOT) - Durl'8 lhe dellbealons lre 8oT Prov des coiFe":t-i

" t,,.:;#.;*il; ;l*:eX:Xl;"m[':il'::ri"'.T,"j"":,:il:;:ff ;,;iesoiutlons maY be achtevedr

a Ratificaion ofthe Prol€d lf ah€adv aPProved bvthe DPU and/of EEAC

" i:fl:::',i: ,tilj:$:".:1il::.,r?J,jT:,gTTi ili ;;::,T' l:Executiv€ Dnector'

" i',fi'ili:i,""1'",idl fff'i*fi #'liilfi !*:l#-ti'"da$lPned ls tasled to conmunicare t

"iii""a 'r'"g"' """

o"'itn or r\e Proiecr

it.ilir{".';r';ilii:''i::":jffi"iii$il1f '#rfl

:*:'"r1';:I' j::lj?ff :,*: lffi ;""lij"'"i;ii'";'"'p,pi';; i;; o-"*'',"e

" :.:1''j::',':".',H':1jill i:";i..':i:::11:::": il'":"J;Tt:l'l:

APPROVED BY BOTversion Dec05.2004

Review, Appralsal & APproval Poli'ies & Svstems

/Al APPROVED By BoTveEion De.06. 2004

and suppoft of slrch proiect wl put the Foundation at criiical risk. The DPUstaff prepares and sendi formal notificadon of disapproval (use Form # 13)doly signed bythe Ex€cutive Dl.ector.

grl

2, RENEWAL

Ref€r to Section on D€sign of Financialprojec$ considered !nder renewal.

P-$!App!d!4!

Products and S€rvices for definition ol

The same procedures in iew appllcation shall be applied and follow€d for proiec! .enewals.Th€ relult ot r€vl€w and delibera!on b/ the DeveloPmeit Pon{olio tlanateneitCommltree (DPl'l) shrll also be consid€red during the sse$menr

fleldApplabBl&-E4lc4s!!4lnlcd8albi

In rs much as rhe panner orSailratloi have already est bllshed a ttack record wilh theFoundation a.d the pfojec$ applled for renewal have already !ndergone re8llar monitor n8vlsir and r€vi€w lt ls assum€d rhat Lrpdated informatlon on the P.ojecr and the paftn€rorganlzarion are feadil/ al.ailible to ihe Foundadon, thus, the st3fi Inaf lorgo rhe fieldapp.asalvlsir. However, should lhere be valid collcern3l. lhe busine$ oPeEton and/or nrhe orSanlzrtlon durlngthe asse$ment proce$, ! validatiotr vislt shtllslillbe condufted.

D€l ibe?atloDri&-.ilpp!9y4!

All prolect appllcatlons ihal b€ presented lof d€llberadon and de.hlons at respecdve leversotauthorlry, based on the amount of llna nc al suppoft rcquested ^s tollowsr

?'oFct Revlew, Appralsal & APProvalPoli.ies & syst€mt - 2 4 -

/trr{rtAPPROYED Av BOTVersion Dec06. 2004

C. Appraisal Tools

Assessm€nt Tool# l: Compllan.e & Eliglblllty Che.klist

Th€ Compliance & Eligibiliry Checklist as an a$esmen! tool is in!€nded to facilit2le fasi aiddlrect verifiddon of complhice of requlremenB ofProiect aPPllcadons received to d€lerminequalification for funher processint and €laluaion. k timt !o manate an etrcrent apPraisalprocess and ensuring lmmediate communlcation and feedback to Panne6 witn Panieft orprospecdve clients on the sblus oftheir applicarlons.

Assessment Tool# 2r FinanclalAnalysls Gulde

The FinanclilAnalysls Gulde as an assessment toolsummarres the financial ntios identifed asrelevant and crltkal in determlning the Projec! vlability and !he tinan.ial co.ditioi of tn€paftnerorSaniz.tion beiit a3se$ed. The tooL deilnes the accePtable financia standard! foreach of lhe nnanclal mtios. as well as ih€ proPonionate risk of the proJect a.d rhe Pa.tn€Forganlzatlon reladve ro the ser standrrd.

Arressment tool# 3! Collat€ral Asse$ment

The Collateral Assessment tool shall document lhe relevan! securlty options ide.tiied fo. theproject h rel'tion !o rhe financlal risk exPosure ot FSSI !o the P.oj€ct

Assessment Tool # 4r Assessment RatlnS Gulde

The Ass€ssment Ratlng Gulde srJmmrrlzes the re evai! key lnd cab.s lden!fied for each of thekey areas for appr.hal conslsle.t wlth the triple boltom-line. Thls syslen of assessment It setln phce to be$er determlne the coh€fefce wilh rhe 3BL and Provide gudance to maiatemeitaid the approving bodies withh FSSI In rend€rlng a more oblecdve aPPraisal of Pfoject

Economlc Viabllily (Or€fored to as the boftomlhe criteria)l, Historlcal Finafclal Performance ' (e refered io as the ke/ indicatcr)

l, Growth & Stabiliry {Oref€red to as the sub indcaio0e. Leve.ase (Orefored to as the sub{ub lnd cator)

Whlle the ass4smenrgulde provldes $€ speclfic defntlon for each key indicarcr accordltrS tothe deSree or lev€l ol the pfoject afd or8anitallon, critlca iudgment mus! alwavs be applied allthrouShout the loan review and eva urdon proce$

To hcilitale stafi work the A$e$mer! RatliS Gulde wil be tmislated thfough the use oI lheAisessment Ratlng Workshe€t whlch summa.izes the weiShred scofes of the appasedproJect io Indlcate the over-all €dnt for each the sPe.ifred boftom-llne fflterion

L Using the scale ot l-5, whh 5 beint lhe highest tnd I as the lowess die stafl ssigns apamcular score for €:ch sub-slb indicator (Oie leveEte whlch Is Lrnder Srowth &stablllw) based on results of th€ ase$ment

2. To seithe score ror the sub-indi*tor (gie trowth and stlbllib/) lhe5c6reofa sub'sub indkators ar€ added and divlded by the number of sub{ub indlcabrs under that

Psnicular 8rouP.

3, To 8et rhe score oI tne score of rhe key indicabr (Oie hklorical financalperformance), the *ore ot all s!b-indka66 are added and divided b/ $e number of3ub-indicators.

Proi€ct Review, Appraisal& Approval Polici€s & Systems

/a\{,l

D, Appraisal Report

L Eaci sraffshall prepare a P.oje.t Appraisat and Recommendation Report (PARR)- (Report Form# 3) which shallinctud€ rhe folow ns iifomarionl

APPROYED By BOTv€rsion Dec06. 2004

The rcore of rhe key indlcator ts $en mulriplied b/ lhe assigned weiShr The over-alltcore for me botanllae dddon (O[e €(o(ofiic (d(tqj k dre sum o( r( r(eweighr€d !co.e ofthe key indicaron.

A prolect applicarlon should be able to Ber rhe mlnlmum welghred score lor each of $eboftom-liie crlrcrlon to quatifyfor project suppoR

r Proied ldendting InformarioiI Summary ofrhe proposed project

Brieny descrlbed the design of rhe project and whar r inrends toa.hteve. Incl!de the ser obj€crives aid d€sired o!rput

rSumm.ry ofAssessmenrl. Econontc Vtabi ry2. EcoloslcalSoundness3. Soclal/Commlnitylnre8ntion4. Rlsk Arsessmei! and l'1id8adn8 tleasures

.RecommendattonL Oler"all.AsessmenrRadi82. Fliancla Producr DestSn3. lYlonitor n8 and Eva uation Plan

l. Fiiancial Pfolecnons & Butf€ss A$umprlon32. Assessmenr Rrdnt Worksheer3. FlnancirlAnal/stsWorkheer4. Co aleral Assessmeir5. Elisibl ry& Compliance Checkltsl

For purposes of dellbefation b/ the approprare approving bod/, a s€parare pfetentadonreport shall be prepared by the staff highlighrtig rhe ket informatioi reSardiiS rhe proie.t

For projeciJ approved lor asslstance. rhe PARR shaltform pan ofrhe documen$ rhat shallbe kep! in each accounr folder lor 8lldance afd futlre reterences by rhe Fouidarioi. IrshoLrld be duly dgned ry tle stiffwho r€idered rhe repon wirh lhe appropria|e norltionby !he respective authoriries ii rhe dtff€r€n! approving bodies ds follows:

5 .

3 .

7.

' Execltive Dtector lor proje.rs approved ar DpU level' EEAC Chalrpereo'r lor proiects approved at EEAC leve. BOT ChairpeBon for proje.rs approved d BOT tevel

Ylll,Project Documentation

L Upon approval of the proje.r. the staff a$i8n shall prepare and send !o lhe panner lheNoti.e of Proie<t Approval (see Form#13),.rdrcali.s lhe basic irfomad;. {aaou.r,te.ms & condltlont .nd pre+elease conditions for th€ Droject dlty sitied by rhe Execudve

ftli..t Revi€w, Appraisal & Approval Pottcl€s & SFtemr - 2 5 -

APPRQVED Bt AOT

lGrJe!-Aq$,-2@4

Albpp!9ye!-pq9 jlq shall be covered by legally bindint cont actual atr€em€nis to etablishdre relat on between FSSI and the panner. The appropriate documentation penineit to lheme offinlncial a$ist nce exlended shall be used a3 fo ows:

Gtuts: AII panners and proJects exlerded with gra.t slppon shall be covered bt al',1emon.dum of Gmnt Atreemenr

Loan3: Fanners exterded whh l@n ssist fce murr have lhe follow n8 documentatiois;

a. Loan Agreemenr ltogeth et $k the boatd rctolutkn oobonzing the laoh odd detignolnghe outhotued sighota es heteto);

b. Promlssor/ Nore (for each oan drawdown)c. Amortlzatlon Schedule {for each loan dmwdovh)d. Post Dated Check based on siSned amoniation schedule for each loan

e. S€drriry Documentl (whichevef is applicable)i, Deed of ksignment of R€cevables (inven!or/, loans, tnde)

ii. Deed of Asisnmeit of Oepotdlnvestm€nts/Shar€holdings accomPanied b/Orlgrnal Cenllicate ofOeposit or invesvnent

iii. D€€d ofAsslsiment of llongage Redempnon Inslran.e (MR )accomPanied b/Olticlal Receipt and Renew.l Cenifictte (lo be updaled ri.ullly)

iv, Jol & SeverEl Liabilliy Statement (JSS)v. Chattel Mongrge Agr€ement (should be annotated if chrttel k a vehicle)

' Book val!. repon ot ih€ eqrlpmeit michii$ or vehlclesFor motor vehlcles I

'orlglial c€rlncale of reclstratlon (CR)i. orlCinal ofllclal rccelpt (OR)i' motor vehkle ttenclll. Deed ofAssignmeit of ProPefty Insunnce. originallnrurance Policy and renewal cenifcale ifaPPlicableir ollicial recelpr of lnsumice comPany or broker

vi, Real Estare Morttage rccompanied byl. OrlClnal owney's duplicate coPy of the Transf€r Cer.ifcale of Tltle Cl'Cll

with the corrcspondlnt ainotitlon ofthe RE|\lr Updat€d T$( Declaradonr Updared Tax Receipts. Tax cleerance' lfProPeny has buildlfSor lmp.ovem€nts

I Oeed olAsslgnment of Propeny Insunncet Orl8lnal Insutiice pollq and reiewal cenincate ifapPllcable;' Ofllclal rec€iPt ofinsumnce comPiny or broker' Updated to( declaratio. (on the bullding or imProvement)t Updated tax recelPts (oi the bulldlnSor imProvemen!), Tax clearance (on the bulldlng or imP.ovenent)

Developmental D€posit PanneE €xtended with develoPmEnta deposit must have rhefollowii8 documentition5:

o. Memorandlm of &reement CovednS DeveloPmenal DeposiB (with Ll]ecoftrpondlng bootd rctohttjon outiotizing tie MOA ond desighotng he auhonzedsaiotonis thercto)

b. Passbook and/or Ce.tificate ofTime D€poslts.. waiver of 1405d. Poir Dated Checks coverii8 literest Pa/men!e. Inbrest ReDaymeni Schedule

Revlew, Appraisal& Approml Policies & Systems

s.

6.

4.

7.

APPROVED Bv AOTVeBion Dec05. 2004

Eouitv orJolnt V€nturej Paftn€rs or Proieci5 strPPoned throuth equiiv finaicirg or iointv€nture anantemen!mutt have the followlnS document trons:

a. flemorandum of ASreernent covering rhe equltv financing or joinr ventur€ (wi& oe

conerpondtng bootd Batution outhotizing the MOA did des8iot'i8 the outhaircd

srrnotones !.telerolb. Dled of tusignnent to the ioint ve.ture i'equicv iv

vrere Provjded ln kindc. De€d ofAsslg.ment of FSSI shar€s ro the althorized and designated rePresenbtlve

Guarant€e! Partners or proiectj suPPoned in.ough 8lamntee arran8emen! mlst have the

followinE docomentalion!l

o. GuaEntee ASre€ment (dnd in <or. of cotporcre ot instnu'.ionol euotont'c' the baotd

rcealutbn atthotizlng the glotontee age.6ent ond detignatlng the ovho zed tigndto es

The Loan fureemer! (tA),l^.ll be prePlred rc lidcate +e tot ltooroved rmoJnt or credlt

Itr of th€ 9;nrer and lhe cor$Pondh8 rernr a'd condtons of !h€ 'PDroved ll'e

The Proml3sor/ Note (PN) shtll be €xecured by rh€ Panner io documenr the rElijlliLelu

dllqdgsD mad€ wlthii the apProv€d credl! llne or of t€rm loans released ln t'aiches

Loan obllratlon3 rhat ar€ renewed after miturl!)' Perlod or otherwl3e 'eiructured 3hall be

.onstru€; as amendment! io the o.lllnal Loan &reement and ther€fore shall warrart the

exgcldg4 of an Amended Lotn ASrcement

Thus, the annotatlon ofany exkt!.t monF8e coiracr may be walved if such obliSadons as

renewed, restructu.ed, extend€d o; ro led'over as in the nature of addhlonal obllSrtioi3 Nnd

slmuheneous or subequent re,avaliment by the Panner ls of St-$o!-9!-b$-li!!-li!amount a3 that Previously entered,

However, lfan addltlonal propeny ls b€ln8 ofiered ts addltlonal s€curlq' then an amlrded

RIIl-grg! shall be execlled by the Panner rcferrlnS !o th€ tot'l hmount of addltlonal

allgadon, provld€d thal such amolnt can be covered as per valratlon of the properry'

fSSl asilrned staff must eisure that all document! are duly sl8ned' notarized rnd

aDDroDiaiey fileo 1each proiecr folders toSether wltl^ t\e sLbmlRed DroPosal bLsi'e$

ol-, xsesr^*t.epo.t r€levrrt commLncatol5 ard orher docume'tarv 'equlreme't!

boples ofthe slSned and iotarlted doclmeiB mlst be Provided to the Paftn€r'

9. Post daled checki (PDCS) must be l$ued bv the Plnn€r b8ed on the siSned amoni4don

schedul€ and turned overto lhe Finance Unk fo. dePGt t'ack]n8

10. Orlslndl cory of the 'nnobrcd REf4' CM and TCT lncluding olher relev'nt

.ecu_rrtyl-.rigr8" documentr most be ProPerlv urn'over !o the Finance l'lanater rof

Proiect Funds Release

l. Uoon apDrosl o'prolects. sEff sl-a -nmediate'v coora late wrrh t\e PaMe_ to rac Bte

rhe con;lelion o'the required docJieriafon as :'dhreo ir the Document checklist

for Funds Relea3€ Gee Form#|4). St:ff sha I ako secure the following bankint delaik

from the panneBl' AccountName. Accoont Number (savrnss or current)

Prolect Review, Appraisal& APProval Pollcies & svstems - 2 8 -

APPROYED Bv BOTversion Dec05. 2004

E]hrtd8..fth

litsif dE.dm l€Sal ddumentation ma/ need som€ tlme to proce$, maiaSementb lor€d to bcilitit€ parihl release !o lhe prolec! up to a maximum of 40% of rh.

D. Ftfl rdes of tunds shall be Snnted contlrgeit on the submtston of rhe documenrs,.-..<.rd and ideniitied ai pre-release condilrons:

Slcceedlngfund releases sha be based on any ofthe followlngsl

I For Graft Soppona, Approved Prol€c! Budge!b. Planned Acllvtlesc. Comple!lon ofother requlred docum€ri! aid/o. lnlorm.tion

' For Loan Suppona. Fundlnt requh€ments bried on proleded cash tlov/ positlonb. Submlsllon and complerion ot documentshttachrnenrj

sedrrltizition/collareralSubmkslon and comDletlon of other reoulred docum€nts rrd/or lnformationpurchase o.der,llst of cll€nts, lnventory repoG et.)For accounB und€r ffedl! llne. funds may be relesed from rhe avaihblesubjeci to ailoflhe tollowing conditioi3:

. Amou.t reqlested s within rvaihble bahnce of credit limi: burlower rhan P150.000

' No pmr due amoni2arlon with FSSI or upcominS amonization(whhin 2 weel,r rin€)

' Wirh lpdated/laresr inanclal Inforinallon anatsh of rhe projec!Prepared by $e statr a$igned

I For Equitv Suppona. Funding requirem€its brsed or projected calh flow positionb, Submhsion and comple.ion of remalrlng documeiB relevant ro rhe invesrmenr

(i.e paniciparion plan, etc.)

Since documentalion requirements vary lfom one clienvprolect to aiorher, lhe decision oflhe suceedint proponlonate rel€ase shall be discrerionary lpon the reconmendation ofthe

' Duly dSned Memonndum ol fur€em€nt' OtherdocuhenBorlnlormatlon ldendlleddlnngdeibeEtionlorapprobl

LIOAN r Sl8n€d a nokrized LoinACreementr srgned& dohn:ed Proh$ory Nore (for eeh dawdoM)' Sl8ned Amoftairon Schedul. (lor €ich dBwdown)! Post Dded Ch*k (for ech ddwdom)'Slsned s€cudt/pap{! (wtkhev€r h applk.ble) ex.epr REl.l orcfl' Oth€f documenBorlnfom.rlon idenlllleddunnsdelibeBdonlorapproh

DEPOSIT! rlemor.idun or Atreemenr covenn8 oev€ropmensl DeponB' Po* Drr.d Ch€cki.ov.rrng rni.fesrpatmentr Interult Reo.vment Schedul.'Otherdocunent! of lnlomdloi ldenrrl.d dudnS deibeErloi lor lpprova

VENTURE' r4€hom.dum ot ASfeemenr cov..r.t ihe equrty rin.ncrng or Joini venrurd' Othd do.un.n$ or lnformatlon ldentified durlnt del bendon lor approwl

. Oth..documenB or lilomdl6n rd€ntl0ed du.lnt dellbeEdon lorapproval

Proiect Revlew, Appraital & Approval Poli.le3 & syirem3

APPROVED By BOTverslon pe.05. 2004

.!.i8ned stefr in consuketion wilh lhe Associate Erccurlve Dkector. subi€c! ro approya byth€ Executive Dire.tor.

Grim suppon involvinS research or advocac/ shatt have a reteitioi eduivat€n! to t 0% of rheapproved amolnt Slch will be relesed to $e parner on y upon comptiance of rh€ finatr€pot However, an execprion on the l0% fund r€tention shatt be apptied ro projectsinyohing sustainable llvellhood^tan-up eco"errcrprise, rrarirng and shon-term activry ofwnich iuch tunds k deemed oucialto conplerc the projeci

Funds release on approved proJecr mlsr be made wlrhin a mutmum ofo.e-monrh from thedarc of rc.eipr of ih€ Norlce of Proiect Approhl (NOPA) by the pa.tier. Shoutd rhere beany delay expe.ted due to compllance ot pr€{elease conditions, such shoutd becommonicited ro FSSiformrlly ii writln8.

lf paftners tail to respond wllhtn 15 worklrS days from date of Notlce of Prolect Appro%l(NOPA). a follow-up l€ttef shrll be sen! to the panner, providlng them anorher t5 worklnSdays ro .omply, afterwhkh, non-comm!.lcatron and complirnce ol reoui.emenrs shalt beconstrued a3 forfelrure of ihe ap!!eyed+!ejs!

All project fuids release shdll be made rhrough rhrrk in the name of the panief asr.dicared lr the loan/gnnt agfeement, ner ofthe documeftary stamps. FSS|shalleirh€r:

. Oeposir the check onlrne to rhe panners' bank account as l.dlcared in rhe gE.doan

. Send checkro panner's addr$3 through couner

. Send check io panner's through st!ff if and when lhere ls a sched! ed tietd vis i witiin

Consl3ieft wkh fsslk accounrtng and lnrernal conrrol policy (r6fer to FSSt Accountlng& Intemal Control Policy), paftners are requlr€d to ksue rhe Foondatton a'r OfficialReciept (OR) upon clearnanc€ ofcheck or recelp! oftunds. and Ceftlficate ofTlme D€poslt(CTD) for th€ developmenr depostrr.

Prcj€ct Revle& Appralsal & Apprc\al Polici€s & Systems - 3 0 -