REPUBLIKA NG PILIPINAS

MINISTRI NG PANANALAPI MAYN I LA

MINISTRY ORDER NO. y / - Wi November 19,-.1984

Pursuant to Section 4 of Presidential Decree 1914, the Municipal Development Fund (MDF) funded by proceeds of foreign loans, assistance or grants and made available to Local Governments for local development projects shall be administered by the Ministry of Finance and Joint Circular No. 3-84 dated May 31, 1984 prescribing the guidelines for the implementation of the Decree, designates under Item No. 6.1.1 the Office of Local Government Finance (OLGF) as the office thru which the Ministry shall administer the Fund. For this purpose, the same circular creates under Item No. 6.1.6 a Central Fund Management Unit (CFMU) within the OLGF and

under Item 6.2 defines its functions as follows: 1.

It shall be responsible for maintaining budget proposals and financial and work plans submitted by the Project Steering Committee/Project Central Offices within the limitation of available balances within the MDF;

2.

It shall prepare cash flow requirements for the MDF and monitor flow of funds including availments and utilization;

3.

It shall maintain general and subsidiary accounts/ records by Project City/LGU and Implementing Agency/Government Corporation for each foreignassisted project;

4.

It shall have its own support services and keep the accounts of the CFMU and MDF as separate accounting entities distinct from the accounts of the MOF-proper;

5.

It shall request for separate agency and fund codes for the MOF/OLGF-CFMU and MDF from the OBM;

6.

It shall coordinate with the Bureau of Treasury, the Development Bank of the Philippines (DBP) or the Land Bank of the Philippines (LBP) when acting as depository bank of the MDF; and

7.

It shall evaluate the impact of programs/ projects on local. government finances. '!

ISANG BANSA, ISANG DIWA, ISANG WIKA

Q - 2 -

Pursuant to the provisions of PD 1914 and its implementing guidelines embodied in Joint Circular No. 3-84, therefore, a CFMU is hereby created in the OLGF and the Director of said Office is hereby authorized to detail/assign personnel from the Local Finance Projects Management Division (LFPMD) to said unit and to assign their duties and responsibilities. Joint Circular No. 3-84 also creates under Item No. 10.2 a Supervision, Monitoring and Evaluation Unit in each Central Project Office. For all projects/programs implemented by the Ministry or where the Ministry is the lead agency therefore, the Director of the O.L,G F is hereby authorized to organize the Unit, designating regular personnel of the LFPMD and other OLGF divisions and assigning their duties and responsibilities. The general functions of the Unit are as follows: 1.

To monitor the progress of all program components related to the MDF policies, management, performance and of all project support components;

2.

To submit a report on the progress of monitoring and provide comprehensive summaries for projects administered by the Ministry;

3.

To provide assistance in monitoring and evaluation to project local government units; and

4.

To process submitted monitoring forms/reports and provide comprehensive summary/feedback to LFPMD.

All existing Orders, Circulars and other issuances of this Ministry which are contrary to or inconsistent with this Order are hereby modified accordingly.

This Order takes effect immediately.

CESAR E.A. VIRATA Prime Minister and Minister of Finance