Upland Development Program in Southern MindanaoMarketing and Enterprise Development

ENTREPRENEURSHIP TRAINING MANAGEMENTTERMINAL REPORT

Part I Project ldentification

Project Name: Business Development Services-Entrepreneurship TrainingManasement

Proiect Number: ALN9768Area Covered:Project Cost:

Programme-WideP200,000.00

Project Duration: Three (3) monthsImplementing Agency: Horizon Integrated Management and Allied Services

Part II BDS-Entrepreneurship Training Management Terms of Reference

INTRODUCTION/RATIONALB,:

The programme second objective "to enable the upland communities address theirsubsistence and to produce new marketable surplus through sustainable market-ledagricultural development" posed a tall order for the Marketing and Enterprise component ofthe progam to strategize ways and means to hasten the groMh of farm entrepreneurship inthe uplands.

To achieve it, the MED component adopted two major strategies, first is on enterprisedevelopment and second on capacity building of farmer-producers and local govemmentunits. Trainings, exposures, market studies, product development and other capacitybuilding assistance were provided to farmer-beneficiaries as well as to the LGU thru theMarketing Point Person (MPP).

During the various mentoring activities conducted, various trainings were identified andsupplement the need to further enhance the entrepreneurial and institutional capabilities ofthe Upland Village Enterprises. Among the trainings identified were FinancialManagement, Leadership and its functions, Parliamentary Procedures in ConductingMeetings. Hence, this contract is for the provider to manage the conduct of theentrepreneurship trainings and ensure that the participants from selected UVEs acquire theneeded knowledge and skills to improve their organizational effectiveness and improvefinancial management.

OBJECTIVES:

The overall objectives ofthe Entrepreneurial Trainings are:a. to transfer skills and knowledge to the selected UVEsb. to improve technical and managerial capabilities ofthe UVE managementc. to sustain operations through additional technical inputs

Specific Objectives

Specific to the conduct ofthe trainings, the consultancy services sought, it aimsa. to develop pool oftrainers within cooperativesb. to develop second liners to handle the financial records and transactions ofthe UVEsc. to improve skills of leaders and UVE managements on organizational concems

SCOPE OF WORK

General : The work under contract consist oftraining management services lor the conductof Entrepreneurial Trainings to UVE

Specificl. Identifo, contact and negotiate resource persons and lecturers for the trainings to be

conducted2. Prepare and package the training materials and other materials needed for the

training3. Provide secretariat support during the conduct ofthe training4. Prepare and submit post training reports and other documentation to the UDP

Project Management

The Project Co-Directors will be responsible in managing the overall contract. TheProvincial Project Office (PPO) will be responsible in confirming attendance of the targetpa*icipants of the training.

LOGISTICS Al\[D TIMING

Location

The area under this contract of consultancy services is the cities of Davao, Tagum andGeneral Santos as the actual venue ofthe trainings as specified in the schedule. In this case,the contractor shall have the full responsibility ofcoordinating their presence in the area.

Commencement Date and Period ofExecution

This contract of consultancy services shall have a total of l0 weeks starting January 16,2007. ln cases where there are changes on the time allotted, the contractor should informthe UDP prior to any changes on the schedule agreed. UDP shall have the right to rejectany changes when such changes shall derail the execution ofthis contract.

REQUIREMENTS

Personnel

The consultant shall be responsible to identit/ the resource persons ofthe training. Thecontractor shall only field in experts on the services required. Specifically, experts musthave a substantial expertise on institution building and enterprise development and financial

management skills. In cases where the training requires an accredited trainor, the consultantshall be responsible to arrange and negotiate for such.

Office Accommodation

The UDP will not be responsible for any office accommodation to the contractor as theseconcems were already covered in the cost agreed upon.

Facilities to be provided by the Consultant

The consultant shall ensure that the experts are adequately supported and equipped. Inparticular, it shall ensure that there is sufficient administrative support to effectively carrytheir primary task. The consultant shall ensure that transfer of funds are regular and timelyto support the activities under contract.

Equipment

The contractor shall be responsible to provide all equipments needed to accomplish theactivities under this contract including those required on filed activities.

Incidental Expendirures

Incidental expenses shall be bome by the consultant as stipulated in the tender offered andon the terms ofthis contract wherein the cost agreed is inclusive ofall expenditure.

RI,PORTS

Reporting Requirements

The contmctor is required to submit the following reports:

Post Training Report and complete Documentation olthe training proceedings.

Submission and Approval of Reports

Reports should be bounded and on .A4 paper size, Times New Roman font "l0" and notmore than 25 pages including a photo documentation. Reports be addressed to theProgramme Directors.

CONTRACT COST

Contract cost for this engagement shall be Two Hundred Thousand Pesos and 0/00 cents(Php 200,000.00).

MODE OF PAYMENT

The payments will be made according to the following schedule based on the conditions setforth in the Terms of Reference, subject to the provisions of Article 28 to 33 ofthe GeneralConditions:

Schedule Description PhPFirst Payment 30% 60,000.00Second Pavment 40o/o 80$00.00Third Pavment 30o/o 60,000.00Total PhP200,000.00

MONITORING AND EVALUATION

UDP will monitor the work ofthe contractor based on the terms ofreference agreed andrecommendation that the contractor has proposed to be done in this consultancy services.

PART III. ST]MMARY OF ACCOMPLISHMENTS

The following training workshops have been completed:

Training Title Date Conducted Venue/Location Number ofParticipants

Cooperative DevelopmentTrainers' Trainins

Ianuary 23-27,2007

Feliz Resort,Matina Aplaya,Davao CiE

> 26 participants> l0 UVEs

Financial Management -Cashiering, Bookkeepingand Auditins

February 6-10,2007

PCU, Tagum City > l7 participants> 7 UVEs

Financial Management -Cashiering, Bookkeepingand Auditins

February l3-l7,2007

NFA ConferenceHall, GeneralSantos CiE

> 26 participants> 8 UVEs

Leadership andParliamentary Systems

March 6-10,2007 Feliz Resort,Matina Aplaya,Davao City

>17 participants>6 UVEs

Leadership andParliamentarv Svstems

March l3-17,2007

Tierra del SurHotel, GeneralSantos City

>21 participants>8 UVEs

COOPERATIVI, DEVELOPMENT TRAINOR'S TRAINING

The training was conducted on January 23-27,2007 and attended by 26 participants from l0selected UVEs. Anival of participants was in the afternoon of January 23, 2007.Participating UVEs were:

> SACAPDA, Sufatubo, Glan> MALAUMON, Rio del Pilar, Glan> IPC-MPC, Lapuan, Don Marcelino> UVAMULCO, Upo, Maitum> UMFMPC, Maligang, Kiamba> KALIAC, Linan, Tupi> TUFAWA, Magsaysay> MMPC, Mapaang, Maco> MMHCOP, Kablon, Tupi> DDUFC, Datu Danwata

The training started at 7:00 pm after dinner with the preliminary activities and orientation ofthe 3 and half days activities. The preliminary activities and the orientation included thefollowins:

) Brief introduction ofthe training management team and the participants) Rationale ofthe 3 and a halfday training) Orientation ofthe schedule ofactivities and the major topics

The second day started with the invocation, icebreakers and recapitulation of topics andactivities ofthe previous day. A more in-depthgetting to know of participants with an exercisefollowed as a prelude to acceptance ofdifferences and uniqueness of each individualand providing each participant the opportunityto stand in front and introduce partners. Theintroductory exercise was processed givingemphasis on the need for acceptance andunderstanding among leaders and members of the organization and be able to help oneanother in resolving issues and conflicts within the organization. The need for continuouseducation and feed backing among officers and members were also emphasized as a tool toensure common understanding among officers and members and prevent possible conflictsand differences.

Expectations and house rules were derived from the participants and daily host teams wereorganized and oriented ofthe tasks.

The lecture proper started with the Facilitation Techniques and Methods. The participantswere given thorough inputs on the required qualities of a facilitator/trainor and the variousfacilitation techniques and methods.

The trainor then assessed who among the participants have attended the Pre-membershipEducation Seminar and the Membership Education Program for Cooperatives. Among theparticipants, there are 8 participants who have not attended any education program forcooperatives.

The topics on Cooperative Development included the definition and essence ofcooperative,the history of cooperative, its pitfalls and how it started in the Philippines, govemingPhilippine Laws on cooperatives, and the procedures and requirements in organizing andregistering cooperatives with the Cooperative Development Authority.

The basic cooperative principles were then discussed followed by the different types ofcooperatives. Topic on the Membership for cooperatives was thoroughly discussedincluding ethical standards of individual cooperative members, officers, officials andemployees.

On the third day, the trainor continued with the lecture on work analysis and the standardorganizational structure of the cooperative. The standard cooperative structure of the

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cooperatives as required by CDA was explained. The functions of each position andrelationship ofeach function were also thoroughly explained. It was explained that the restof the positions needed by the cooperative, aside from the recommended structure, will beidentified based on the analysis of the work that should be done and in accordance withcurrent needs of the cooperative. The trainor provided inputs on how to conduct workanalysis and how to organize the works and identify positions and qualification of thepeople who will handle the identified group of works. It was emphasized that thecooperative must limit the number of people employed by the cooperative and ensure thatthe utilization ofpeople employed are maximized to prevent too much cost for the operationofthe cooperative.

Topics on Rights and Obligations of cooperative members and the Duties andResponsibilities of members were also thoroughly discussed followed by the procedures andrequirements of the termination of membership.

Another topic was discussed on the Policies of theBoard of Directors and the General Assembly. Thistopic included the definition of policies, theimportance of policies in ensuring unity within theorganization and providing guidance for theoperation of the cooperative and the procedures informulating policies.

Day 4 started with a moming prayer followed by icebreakers and recapitulation.

Topics discussed were on the Cooperative Financial Status. This topic included thediscussion on the sources and application of capital and funds, financial reports requiredflrom cooperatives and the computation ofdividends and patronage refund. A workshop onthe computation of dividends and patronage refund was conducted and workshop outputswere presented for interaction and comments. There were 3 out of l0 UVEs who were notable to get the correct output and the trainor supplemented the lecture to ensure that thosewho were not able to get the right computation be guided on how to correct their output.

The last topic was the procedures and requirements in the amendment of the articles ofcoopenrtion and the by-laws.

After the lecture, the participants were required to prepare the action plan for the trainingand education program in each participating UVE. The form for the action plan werediscussed before the workshop. After the workshop, the outputs were discussed andnecessary changes were included.

Co-Director Dashiel Indellible came in the aftemoon and gave his inspiration message andadvise to the participating UVEs to persevere and continue the efforts started with UDP tocontinuous improve the lives in the upland, and conserve the environment.

After the inspirational message ofCo-Director Indellible, the trainor synthesized the 3 and ahalf day training and encouraged the participants to finalize their training and educationprogram and implement such to ensure continuous education of members and officers andachieve better relationship and understanding within respective UVEs.

A training assessment was conducted through interview forms and the results of theassessment generally showed very satisfactory rating for the training.

The closing program started at 5:00pm and ended at 6:00pm. During the closing program,participants and trainors were given the chance to give impressions and insights andcertificates of attendance were distributed. Participants were given the opportunity tosocialize after dinner.

The participants and training management team left the venue in the moming of lanuary 27,2007

FINANCIAL MANAGEMT,NT TRAIMNGS

The Financial Management Training was conducted in 2 clusters> Cluster I - PPOI, PPO2, PPO3) Cluster 2 - PPO 3, PPO4

The trainings were conducted on February 6-10,2007 for cluster I and February 13-17,2007 for cluster 2. Cluster I was attended by l7 participants from 7 selected UVES andcluster 2 was attended by 26 participants fiom 8 UVEs. Anival of participants was in theaftemoon of the first day. Participating UVEs were:

F Cluster Io IPC-MPC, Lapuan, Don Marcelinoo MMPC, Mapaang, Macoo DDUFC. Datu Danwatao MASBAFAMCO, San Roque, New Bataano SUFAMCO, Sibulan, Sta Cruzo LANUFA, Langtud, Laako PUFMPC, Malita

) Cluster 2o UMFMPC - Maligang, Kiadbao UVAMULCO- Upo, Maitumo NAGMABAUL MPC - Upper Lumabat, Malungono KIMALAKA MPC - Kinabalan, Malungono MMHFAI - Kablon, Tupio FPUFAI - Palo, Tampakano FAFAI - Albagan, Tampakano BUFAI - Miasong, Tupi

The training started at 7:00 pm after dinner with the preliminary activities and orientation ofthe 3 and a half days activities. The preliminary activities and the orientation included thefollowing:

) Brief introduction ofthe training management team and the participants) Rationale of the 3 and a half day training) Orientation ofthe schedule ofactivities and the major topics

) Expectation Check) Setting of House Rules) Organization of Host Teams and Orientation of Tasks

Day 2 started early with an invocation, recapitulation of previous day's activities and briefdiscussion ofthe house rules.

Lecture started at 8:00 in the moming. The trainor presented the outline ofthe lecture andpursued with the lecture on the overview of the Financial Management to include thedefinition and importance of financial management, cash management, two main grcwthareas of good cooperative financial management, steps involved in good FinancialManagement, administration of assets and liabilities and functions of a typical financialmanagement system.

The lecture continued with the topics onfinancial planning, tools in financial decisionmaking to include analytical tools, planning toolsand control tools, and the methods used inextracting findings from the financial statements.Sample financial statements were used duringthe discussion to enhance the leaming process inanalyzing the financial situation of thecooperative by walking through each account

and the implications of reflected amounts. It was emphasized that well prepared financialstatements can really provide sound basis for management decisions.

The next topic was on Accounting and Bookkeeping. A pre-test was given to gauge thelevel of knowledge of participants on bookkeeping. Most ofthe participants were not ableto get correct answers to the pre-test questions.Hence, the trainor assured the participants that thetopics will be thoroughly explained and encouragedthe participants to ask questions to ensure betterunderstanding ofthe topics to be discussed.

The trainor explained thoroughly the definition ofterms, importance of proper accounting andbookkeeping, the four constructive and mechanicalphases of accountirig, the definition ofbook of accounts, the types ofthe books of accountsand the corresponding function and importance, financial statements and its uses tomanagement. Details oftransactions flow were discussed in each book ofaccount includingrequired source documents.

The Standard Chart ofAccounts for Cooperatives was also introduced and each account wasthoroughly discussed by the trainor.

A workshop was given and was accomplished by the participants on a per UVE. Thetrainor prepared a case for the workshop since most of the participants were not able tobring their respective financial records and some do not have yet proper recording oftransactions. The workshop started after dinner of day 2 and required the following:

F Joumalizing of entriesF Completion of various books of accounts> Posting to General l€dgerF Posting to Subsidiary Ledgers) Preparation of financial reports : Statement of

Financial Operation, Statement of FinancialCondition and Cash Flow Statements

Day 3 started with the opening prayer and a recapitulation of the previous day's activitiesand topics. The workshop was continued in the moming of third day and there were 3facilitators who assist the participants on the hands-on application of leamings. Thefacilitators veriry how the participants post the accounts and immediately mentor on theproper treatment ofaccounts based on the standard chart ofaccounts for cooperatives.

The workshop ended before 12:00 noon and thetrainor provided additional inputs on the justconcluded workshop presenting and explaining thesolutions and allowing the participants to refer backto their respective workshop output and makenecessary adjustments based on the presentedsolution ofthe case.

After lunch break of day 3, topic on cash -r$llt 7

management was started. Cash management included the definition cash, types of cash,cash planning and control with inputs on sources ofcash and cash budget, cash managementsystem with inputs on imprest system, general guidelines in managing cash, flow of cashreceipt transactions, flow of disbursement transactions, inventory flow for consumer goods,including supporting documents and accountable persons for each transaction.

The trainor gave a case for a workshop on cashbudgeting and was accomplished per UVE. After theworkshop, the trainor presented the solution to theworkshop case and the details of each account wasthoroughly explained and the implications of thefigures in the cash budget were also elaborated for theparticipants to have an appreciation ofthe importanceand use ofthe cash budeet.

Day 4 started with an opening prayer and a recapitulation of the previous day's activitiesand topics.

The lecture for the day started with the financial and management audit. Financial andmanagement audit included discussion ofthe following:

F definition and imporlance of financial audit,F procedures in conducting audit, records to look into in the conduct ofaudit and how

each record be inspected and verified,! relationship of financial audit to management performance and adherence to

approved policies, systems and procedures,

frequency ofaudit,conect attitude and behavior ofthe auditors,preparation of audit findings and recommendations, presentation of audit reports tothe Board of Directors, and the General Assembly,the qualifications, responsibilities and the code of ethics ofthe audit and inventorycommittee members

The trainor gave a more detailed discussion on the audit procedures for the following:

) Cash in Bank) Petty Cash Fund and Other Funds! Cash Receipts Book) Cash Disbursement Book> Inventory) Preparation ofthe Audit Report

During the whole duration of the training, theparticipants were encouraged to ask questionsand share in between lectures to allow a moreactive participation and leaming process.

After the training inputs, the trainorsynthesized the 3 and a half day training andencouraged the participants to apply theirrespective leamings immediately by working

on their respective records as soon as they get back to their respective organizations.

A training assessment was conducted through interview forms and the results of theassessment generally showed very satisfactory rating for the training. However, theparticipants recommended a follow through activity from the UDP to ensure application ofknowledge and skills acquired during the training.

During the closing program, participants and trainors were given the chance to giveimpiessions and insights and certificates of attendance were distributed. Participants weregiven the opportunity to socialize after dinner.

The pa.rtipipants and training management team left the venue in the moming of the fourthday.

LEADERSIIIP AI\D PARLIAMENTARY SYSTEMS TRAII\INGS

The tradership and Parliamentary Systems Training.was conducted in 2 clusters> Cluster.l .- PPOI, PPO2, PPO3) Cluster 2 - PPO 3, PPQ{; PPO5

The trainings were conducted on March 6-10, 2007 for cluster I and March 13-17,2007 forcluster 2. Seventeen (17) participants from 6 selected UVEs attended the Cluster I trainingand 26 participants from 8 selected UVEs attended the cluster 2 training. Anival ofparticipants was in the aftemoon of the first day. Participating UVEs were:

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F Cluster Io IPC-MPC, Lapuan, Don Marcelinoo MMPC, Mapaang, Macoo MASBAFAMCO, San Roque, New Bataano LANUFA, Langtud, laako TUFAWA, Magsaysayo TISCOFAWA. Tibulao. Carmen

! Cluster 2o DDUFC, Datu Danwatao UMFMPC - Maligang, Kiambao MMHFAI - Kablon, Tupio FPUFAI - Palo, Tampakano FAFAI - Albagan, Tampakano BUFAI - Miasong, Tupio PUFMPC - Malitao SACAPDA - Sufatubo, Glan

For Cluster I, participants anived at the venue in the afternoon of March 6,2007 ndtraining started at 7:00 pm after dinner ofthe same day. For Cluster 2 fraining, some of theparticipants arrived in the aftemoon of March 13, 2007 and some arrived the moming ofMarch 14,2007. Hence, cluster 2 training started on March 14,2007 and was able to copewith the schedule of activities.

The trainings started with th€ preliminary activities and orientation ofthe 3 and a half days-activity. The preliminary activities and the orientation included the following:

) Brief infroduction ofthe training management team and the participants) Rationale ofthe 3 and a halfday training) Orientation ofthe schedule of activities and the major topics) Expectation Check) Setting of House Rules) Organization of Host Teams and Orientation of Tasks

Daily activities started with an invocation, recapitulation of previous day's activities by thehost teams.

The lectures covered the following topics:

Topic I - Leadership and Management! Description ofleadership and Management! Characteristics of Management kadership) Functions of Management Leaders

o Decision Makingo Communicationo Motivationo Selecting Peopleo Developing People

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Topic 2 - Responsibilities and AccountabilitiesF Description of Responsibilities, Authority and Accountabilities) The Process and Principles ofDelegation

Topic 3 - Parliamentary System ofConducting Meetings) Components of a Meeting and the Procedures of Conducting MeetingsF Motions and Resolutions

The process included stnrctured learning experiences and exercises (SLEs), processing ofthe SLEs, and deepening ofexperiences in relation to actual situations ofthe UVEs.

During the whole duration ofthe training, the participantswere encouraged to ask questions and share in betweenlectures to allow a more active participation and leamingprocess. Participants were also actively involved in theSLEs and active interaction after each SLE wasencouraged to ensur€ internalization of the experiencesand reflection of its significance and implications to actualsituations in each WE.

After the training inputs and SLEs, the trainorssynthesized the 3 and a halfdays-training and encouragedthe participants to share their leamings to other officersand management staff of each UVE and apply theirrespective learnings immediately on their rcspectivefunctions as soon as they get back to their respectiveorganizations.

A training assessment was conducted through interview forms and the results of theassessment generally showed very satisfactory rating for the haining. However, theparticipants recommended a follow through activity from the UDP to ensure application ofknowledge and skills acquired during the training.

During the closing program, participants and trainors were given the chance to giveimpressions and insights and certificates of attendance were distributed. Participants werpgiven the opportunity to socialize after dinner.

The participants and training management team left the venue in the aftemoon of the lastday.

Part IV SUMMARY OF CRITICAL ISSUD,SAND RECOMMEI{DATIONS

The pre-taining evaluation conducted during the first day of each training generated thefollowing:

) Some of the UVEs were not duly provided with instinrtional and organization inputsand interventions.

D Some of the WEs do not have education and training prcgram

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) Some of the UVEs have no installed financial management policies, systems andprocedures.

) Some ofthe attending leaders are not even familiar with the constitution and by lawsof the their respective organizations

> Most of the UVES practice traditional leadership where members are complacentand highly dependent to leaders in most ofthe affairs ofthe cooperative.

) Some leaders of the UVEs do not function well due to lack of knowledge and skills.> Most of the UVEs have no clear description of functions and have no clear

qualifications for the required officers and management staff.) Some leaders ofthe UVEs have the tendency to assume so many responsibilities and

accountabilities and delegation is not practiced.

For Cooperative Development Training, the following are recommended:

> UDP to follow-up the implementation of the education and training action planprepared during the training

) Require all service providers to provide technical assistance in the implementationofthe education and training action plans

F For UVEs without service providers, UDP through the MED and ppOs shouldprovide for a roving personnel on cooperative management to ensure that theeducation and training committees are properly guided and technically assisted inthe conduct ofrespective education and training plans.

For the Financial Management Training, the following are recommended:

> UDP to follow up the application of the knowledge and skills acquired by theparticipants during the training

) Require all service providers to include in the mentoring the application ofknowledge and skills acquired during the training and ensure that financial planningand budgeting transactions, records and r€ports are well prepared and audit ar€pmperly conducted.

) For UVEs without service providers, UDP through the MED and ppOs shouldprovide for a roving mentor on financial management to ensur€ that the knowledgeand skills acquired during the trainings are applied and financial management ineach UVE is institutionalized.

For kadership and Parliamentary Systems Training, the following were recommended:

> UDP to follow up the application of the knowledge and skills acquired by thepanicipants during the training

) Require all service providers to include in the mentoring the application ofknowledge and skills acquired during the training and ensure that job descriptionsare included in the operations manual

) For UVEs without service providers, UDP through the MED and ppOs shouldcoordinate with LGU and identifr LGU personnel that can handle the followthrough activities.

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