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April 2, 1997



SUBJECT    :     Revised Implementing Guidelines
                           on the Availment of Peasant Fund
                           Per Administrative Order No. 01
                           Series of 1997



Pursuant to the revision of Administrative Order (A.O.) No. 7, series of 1995; "Rules and Regulations in the Development and Strengthening of Peasant Organizations," its implementing guidelines are likewise and hereby revised in accordance with the Revised Administrative Order No. 01, Series of 1997 issued by the Department of Agrarian Reform.   DcAEIS

Under the revised A.O. No. 01, the Peasant Fund with an initial allocation of P13 Million for CY 1996 allocated and earmarked for assisting and strengthening of peasant organization sourced out from the Agrarian Reform Fund from appropriation made by law, and from grants by local and foreign sources, will now be open for availment by local (down to barangays) based POs.

This is to provide and ensure the effective utilization of the said fund and equal opportunities to as many Peasant Organizations (POs).

These guidelines spell out the operational strategy for POs accreditation, evaluation of proposals, fund draw down and monitoring of assistance under the Peasant Fund.


For accreditation purposes, and to qualify for fund assistance under the Peasant Fund, the following terms shall be understood in the sense as hereunder defined:

Accreditation: shall refer to the formal recognition by the DAR of the PO after proper verification and validation of required documents.

Peasant Organization: shall refer to any people's organization or association which is voluntary and independent, and established to protect and advance the interest of farmers and/or fisherfolks. Below are the different levels of POs as defined herein:

First Level Organization: shall refer to peasants'/people's organizations whose membership are individual person.

Second Level Organization: shall refer to peasants'/people's organizations whose membership are the first level organizations operating in a barangay, municipal or provincial areas.

Regional Peasant/People's Organizations: shall refer to peasants'/people's organizations with chapters in at least three (3) provinces/region.

National Peasant/People's Organizations: shall refer to peasants'/people's organizations with chapters or affiliates in all the major island group (Luzon, Visayas, and Mindanao) in at least three (3) provinces/regions.

Fund Assistance: shall refer to government funds provided to the Peasant/People's Organization (PO) to cover the implementation of project and which is included in the Work and Financial Plan (WFP) and the budget of the government but not necessarily released for Maintenance and other Operating Expenses (MODE), Grants, Subsidies and Contributions.

Program or Project: shall refer to any planned activities to be undertaken by the PO for institution building and strengthening and is integral to its over-all and continuing organizational thrust to contribute to agrarian reform and rural development.

Beneficiary: shall refer to the peasant and/or fisherfolk sector of the community who are the target recipients of development assistance of the government and the PO.


A.        General Requirements

For the entire accreditation process, PO applicants seeking to be accredited for purposes of assistance from the Peasant Fund shall adhere to the general provisions of DAR Revised A.O. No. 01, Series of 1997 and the COA Circular No. 95-003.   IAaCST

To ensure equitable treatment to all POs in the availment of the Peasant Fund, equal opportunity shall judiciously be observed in the dispensation of the Fund.

B.        Eligible Proponent and Projects

Proponents qualified to avail of the Peasant Fund shall be all the Peasant Organizations as defined above and with capacity to finance at least 5% of the total project cost as equity. Said equity, whether in cash, kind, or any form of service is to provide the PO with a sense of ownership and belongingness to the project.

Project eligible for funding under the Peasant Fund are any educational and/or training activities relative to institutional building and capability building programs/projects such as organizational management, project development and packaging, technology transfer, formation of positive value system and related activities enumerated under III of the Revised A.O. No. 01, Series of 1997.

C.        Terms of Assistance

The amount of fund assistance that proponent organization may receive shall be limited to a ceiling of P300,000.00 per project.

D.        Mechanisms

Central Office Level

Peasant Management Committee

A Peasant Fund Management Committee (PF MANCOM) shall be created, represented by the Directors from the following DAR units/offices: BARBD, PARC FIMAS, Legal Service and a Peasant Sector Representative. The Committee shall 1) Review eligible project proposals submitted by the national peasant organizations and recommend approval to the Secretary; and 2) Provide management direction in the utilization of the Peasant Fund.

Technical Secretariat

The BARBD shall serve as the Technical Secretariat at the national level. It shall provide administrative and technical support to the PF MANCOM. Specifically, it shall: 1) Recommend the accreditation of POs eligible for assistance from the Peasant Fund; 2) Update and maintain the list of accredited POs; 3) Schedule and prepare agenda of meetings; 4) Prepare and furnish members of the committee with minutes of all meetings; 5) Pre-screen and evaluate proposals submitted by the national POs for deliberation by the committee; 6) Monitor implementation of projects funded under the PF; and 7) Perform other related functions.

Regional Level

A Regional Peasant Fund Management Committee shall be created as the counterpart of the PF MANCOM and Secretariat of the Central Office and shall be composed of ARDO; Chief PDID, Legal Officer and designated Account Officer/s. It shall undertake the following functions: 1) Accredit qualified regional and first and second level POs; 2) Evaluate project proposals; 3) Update, maintain and furnish PF MANCOM thru BARBD of the list of accredited POs and projects approved for funding; 4) Submit quarterly status report to PF MANCOM thru BARBD using attached PF monitoring forms under 3 to 5; 5) Monitor implementation of projects/funded under Peasant Fund; and 6) Perform other related functions as stated below:

6.1       Ensure the validation of the documents submitted and the conduct of ocular inspection of the proponent. This is to avoid "ghost" organizations and "ghost" membership.   aIEDAC

6.2       Encourage various peasant organizations to participate in the availment of the Peasant Fund; intensify information dissemination by sending communications and information materials to duly registered POs.

The first and second level organizations shall submit documents for accreditation to BDCD who will endorse the same to Regional PF Committee.

E.         Procedures and Requirement for Accreditation

1.         POs shall secure a PO Profile Form (Annex I) from the DAR PF Committee and file in duplicate with the DAR office of their areas of concern.

2.         The PO Profile Form shall be notarized and submitted to DAR office of their respective area of concern with the following documents:

a.         Certified copy of the Certificates of Registration with SEC, CDA, DOLE, DSWD, or with any appropriate agency authorized by law, depending on the nature of the service to be rendered.

b.         Audited financial statements for at least three (3) years operations to ensure that:

           it has stable financial condition so that the funds assistance shall not be its sole source of funds; and

           it has proven experience in fund management so that the grant shall be managed efficiently and economically.

c.         For POs which have been in operation for less than three (3) years, proof that it has previously implemented similar projects and a certificate from LGU, RDC or the governor of the respective province where project shall be undertaken, as appropriate, attesting to the credibility and capability of the officers and staff o£ the POs shall be submitted in lieu of financial statements.

d.         List of projects it has previously undertaken to show its experience and expertise in implementing the project to be funded.

3.         The Technical Secretariat/PF Regional Committee shall countercheck submitted documents using a checklist (Annex 2). This is to determine whether all the required documents are complied with.

            If any item or document is missing, the Technical Secretariat/PF Regional Committee shall notify the PO concerned on the necessary documents for compliance. No application for accreditation shall be recognized until required documents are duly satisfied.

4.         Efforts shall be exerted by the Technical Secretariat/PF Regional Committee to validate documents submitted to them. Whenever possible, the assistance of the Municipal Agrarian Reform Offices (or national or regional NGOs operating in the area, as the case may be) where the PO may based, shall be solicited in the validation proceedings.   DHcSIT

5.         If all papers have been complied with and all information contained therein are validated and found to be in order, the Technical Secretariat/PF Regional Committee shall issue a Certificate of Accreditation (Annex 3) to the PO concerned.

6.         The DARROPF Committee shall submit consolidated list of all accredited POs to PF Management Committee at the Central Office every quarter. Copy famished the concerned PARO.

7.         The Technical Secretariat from BARBD shall prepare a national list of accredited POs. It shall submit to the PF Management Committee and PARC Execom an updated list on a quarterly basis.

F.         Project Proposal Evaluation

National Level

All project proposals by the national POs shall be submitted to Technical Secretariat (BARBD):

1.         The Technical Secretariat shall pre-screen and evaluate project proposals using the PDMS Guide to Project Proposal Evaluation (Annex 4).

            The Technical Secretariat shall also evaluate proposals endorsed by DARRO with funding requirement above P150,000.00 (but not to exceed P300,000.00). It shall be supported by evaluation report prepared by the Regional PF MANCOM, certified xerox copy of accreditation certificate issued by the DAR regional office and the project proposal with training design.

2.         If a project proposal qualifies for funding, the Technical Secretariat shall convene the Management Committee en banc for final review, and recommending approval or disapproval. It shall prepare a MOA to be endorsed to the DAR Secretary for final approval.

3.         The Technical Secretariat shall endorse the MOA together with attached approved project proposals and other required documents to FIMAS for allocation of funds.

            If the proposal submitted is conduct of trainings/workshop seminar, the training design and profile of the resource persons shall be required.

Regional Level

All regional POs shall submit project proposal to SSD for pre-evaluation using the Project Proposal Evaluation (Annex 4). While the first and second level organizations shall submit the same to BDCD who will pre-screen and endorse the same to DARRO.

1.         The SSD shall convene the Regional PF Committee for deliberation of project proposals evaluated.

2.         Project proposal recommended for approval by the Regional PF Committee shall be endorsed to the Regional Director for approval.

            At the regional level, the project proposals to be approved shall have fund requirements of P150,000.00 and below.   HScDIC

            The proposals with funding requirement above P150,000.00 (but not to exceed P300,000.00) shall be evaluated and recommended to PF MANCOM thru BARBD for final review and approval or disapproval.

3.         The Regional PF Committee shall notify the PF Management Committee at the Central Office on the approved proposal. (Using PF Monitoring Forms No. 3 and 4 together with the brief summary of the project approved).

G.        Establishment of Peasant Fund

At DAR Central Office, FMAO shall establish a separate Key Budgetary Item (KBI) for the Peasant Fund under the Agrarian Reform Fund (ARF).

A Special Allotment Release Order (SARO) from the Department of Budget and Management (DBM) for purposes of the Peasant Fund shall be released by DAR Central Office-FIMAS through DARRO Finance and Administrative Division.

H.        Funds Drawdown

National Level

1.         FIMAS shall earmark funds for approved project proposals.

2.         The Technical Secretariat shall draft the Memorandum of Agreement (MOA) within five (5) days from receipt of the proposal (with earmarked funds). A prototype MOA is attached herewith for reference.

3.         The Technical Secretariat shall refer the MOA to FMAO and LAO for review and comment. If found in order, FIMAS shall process said MOA before final signing by the Proponent and DAR authorized Representative per General Memorandum Order No. 03, Series of 1994. Upon Signing of the MOA, FIMAS forwards pertinent documents to the Secretariat.

4.         The Technical Secretariat shall prepare the Disburse Voucher in accordance with the terms and conditions stipulated in the MOA.

Regional Level

1.         SSD shall prepare MOA for all approved regional project proposals.

2.         SSD shall refer MOA to the DARRO Legal Division. If found in order, same shall be forwarded to the Finance and Administrative Division for processing before final signing by the PO proponent and the authorized DAR representative in accordance with GMO No. 03, series of 1994.

3.         Finance and Administrative Division shall prepare the Disbursement Voucher in accordance with the terms and conditions stipulated in the MOA and forwards the signed MOA to SSD.

I.          Monitoring and Evaluation

1.         National POs who have received funding under the program shall submit Physical and Financial Accomplishment Report in accordance with COA Circular No. 95-003 to the Management Committee through the Technical Secretariat.   TICAcD

            Regional and first and second level POs shall submit to SSD Physical and Financial Accomplishment Report in accordance with the MOA. SSD shall submit to the Technical Secretariat the monthly consolidated reports, where applicable.

2.         The Technical Secretariat in coordination with the concerned office shall conduct a joint quarterly Monitoring and Review of POs performance. The Technical Secretariat shall consolidate report submitted every quarterly to the PF Management Committee and PARC EXCOM for management use.

3.         In the interest of public service and to sustain the institutional strengthening activities of the POs, project audit as deemed necessary by the DAR Management may be conducted.

4.         Attached is the suggested monitoring system of Peasant Fund.

            PF Monitoring Form No. 1 shall be used for the preparation of accomplishment report of the actual conduct of the training. The form shall focus on the planned versus actual conduct of the approved project/training design. It shall be prepared by the PO proponent and noted by the DAR PF Evaluation Team. The Forms shall be submitted to the DAR office where the PO is duly accredited.

            PF Monitoring Form No. 2 shall be used for the preparation of accomplishment report of the post-training activities. It shall be prepared by the PO proponent and noted by the DAR PF Evaluation team. The form shall be submitted to the DAR office where the PO is duly accredited, within 6 months after the conduct of the activity.

            PF Monitoring Form No. 3 shall be used for the preparation of the financial utilization report/releases to PO proponents. It shall be prepared by the DAR PF Evaluation Team and submitted quarterly to BARBD.

            PF Monitoring Form No. 4 is a summary monitoring report to be prepared by the DAR PF Evaluation Team. The report shall feature the findings on the actual and post training activities conducted, and the utilization of fund released to proponent. It shall be submitted to BARBD on a quarterly basis.

All orders, memoranda, circulars and issuances inconsistent herewith are hereby amended or repealed accordingly.   DTCSHA

This revised Memorandum Circular shall take effect immediately.

Diliman, Quezon City, 2 April 1997.





Department of Agrarian Reform
Elliptical Road, Diliman
Quezon City, Philippines
Tel. No.: (632) 928-7031 to 39

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