MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement, authorized by virtue of Sangguniang Panlungsod
Resolution No. _________made and entered into by and between:
The CITY GOVERNMENT OF CABADBARAN, a government instrumentality
with office address at Barangay 9, Cabadbaran City, Agusan del Norte and represented herein by
its City Mayor, JUDY CHIN AMANTE and hereinafter referred to as the “ City LGU”.
-and-
The Sanghan Consolidated SEA-K Association, a duly-registered organization
with office address at Purok 5, Barangay Sanghan, City of Cabadbaran, Agusan del Norte and
represented by its President, RUBINA HINAYON, hereinafter referred to as the
“Association.”

WITNESSETH
WHEREAS, Article XII, Section I of the Philippine Constitution provides that “the goals of the
national economy are a more equitable distribution of opportunities, income wealth and
expanding productivity as the key to raising the quality of life for all especially the
underprivileged”;

WHEREAS, Article III, Section 2 of the Philippine Constitution provides that the promotion of
social justice shall include the commitment to create economic opportunities based on freedom
of initiative and self-reliance;

WHEREAS, Section 3 of Republic Act 5416 otherwise known as the Social Welfare Act
mandates DSWD to provide a comprehensive program of Social welfare services designed to
ameliorate the living condition of the distressed Filipinos especially those who are handicapped
by person of poverty;

WHEREAS, RA 7160 otherwise known as the Local Government Code provides for the
consultation and coordination with the Local Government Units (LGUs) on any projects of the
National Government Agencies (NGAs);

WHEREAS, pursuant to the above mandate the DSWD has designed the Sustainable Livelihood
Program (SLP) which focuses on the promotion of viable people organizations that effectively
addresses the livelihood needs of the disadvantaged groups;

WHEREAS, by definition, the Sustainable Livelihood Program (SLP) is a capability building

program for the poor, vulnerable and marginalized families and individuals in acquiring
necessary assets to engage in and maintain thriving livelihoods that help improve their socio
economic conditions.

WHEREAS, the objective of the Sustainable Livelihood Program (SLP) endeavors to strengthen
the skills, competencies, abilities and resources of poor Filipino families and create an enabling
environment for accessing income generating opportunities to address basic needs, thereby
improving their socio-economic well being.

WHEREAS, with the intent of supporting the Sustainable Livelihood Program (SLP), the City
LGU has allocated, in a supplemental budget, the amount of Two Million Four Hundred
Thousand Pesos (Php 2,400,000.00) under the City Mayor’s Office (Administration Programs) to
be released as soft loan to select SLP Associations under equitable terms and conditions laid
down herein;

WHEREAS, under the aforesaid funding, no SLP beneficiaries shall be qualified to receive any
fresh funds from the City LGU unless they shall have undergone a Business Improvement
Planning which shall be the bases for any further activities that the Association will undertake
using the said fund.

NOW THEREFORE, for and in consideration of the foregoing premises and their
mutual covenants hereinafter set forth, the parties hereby agree to undertake the above project
based on the following terms and conditions.

I. Responsibilities of the Parties

A. The City LGU, shall:
1. Provide the fund assistance for working capital to the ASSOCIATION based on the approved
Business Improvement Plan (BIP) amounting to Three Hundred Thousand Pesos ( Php
300,000.00), to be paid in installment for a period of three (3) years starting on the 3 rd year of
operation, with zero percent (0%) interest. Funding assistance may be released in full or in
tranches depending on the nature and the need of the project. For releases in tranches, the
schedule and amount of releases shall be in accordance with the Fund Release Schedule duly
approved by majority decision of the SLP-Technical Working Group;
2. Conduct monitoring of the livelihood operations of the Association on a periodic basis and verify
the financial records and reports of the Association;
3. Provide orientation/briefing to the Association prior to issuance of fund assistance to ensure that
both the technical and administrative concerns relative to the Improvement Plan are adequately
addressed;
4. Provide technical assistance to the Association whenever necessary;
5. Adhere to the accounting and auditing requirements of fund transfers such as, among others,
maintenance of subsidiary ledger of cash transferred pertaining to the project, drawing Journal
Vouchers to take up financial reports of the Association as well as taking up liquidation;
6. Demand the refund of unused funds or savings after project completion and the refund of any
disallowed amount as a result of financial audit by the City LGU, as well as issue an Official
Receipt (OR) for unexpended balance and the refunded disallowance remitted by the Association;
7. Institute appropriate actions against the concerned Association which may include, among others,
suspension or termination of the project in case of violation of the provisions of this MOA and/or
legal action for misuse of approved and released funds, the legal costs of which shall be
shouldered by the Association.
8. Collect from the Association the installment payments starting on its 3 rd year of operation at zero
percent (0%) interest and issue receipts thereof.

B. The Association shall:

1. Implement the necessary activities and actions indicated in the approved Business Improvement
Plan which shall form as an integral part of this Agreement;
 2. Procure the necessary raw materials, equipment, supplies, tools and jigs indicated in the
approved Business Improvement Plan, within 2 months from receipt of project funds released in bulk
or in tranches;
3. Deposit any checks received for this purpose to the depository bank of the Association;
4. Utilize the amount received from the City LGU solely for the above-mentioned approved Business
Improvement Plan, more particularly, the budget items indicated in its Production, Marketing,
Organizational and Financial Improvement Plans. In no case shall the funds be used for payment of
debts or any accounts payable of the Association not related, nor contained in the Business
Improvement Plan, nor for money market placement, time deposit and other forms of investments not
related to the project;
5. Return to the City LGU, any unused funds or savings upon completion of procurement of all
necessary project requirements as stated/itemized in the approved Business Improvement Plan and
any disallowed amount as a result of financial audit by the City LGU;
6. Allow access to or make available all records and facilities pertaining to the project for the
visitorial audit and examination of the City LGU;
7. Return to the City LGU the amount received in installment for three (3) years starting on the 3 rd
year of operation without interest;
8. Install/hang streamers/banners or signages bearing the logos of the City LGU, DSWD and SLP are
prominently displayed in the project site;
9. Ensure that product packaging/labeling or delivery vehicles shall bear the logo of the City LGU
DSWD and SLP indicating that it is an LGU-assisted project;
10. Keep and maintain an accounting or financial records/subsidiary records for funds received from
the City LGU in accordance with generally accepted accounting principles;
11. Submit to the City LGU the Liquidation report within sixty (60) days upon completion of
procurement of all necessary items indicated in the approved Business Improvement Plan, with
supporting documents and evidences like invoices, pictures, and acceptance/ acknowledgement
receipt by the beneficiaries of the raw materials, and/ or equipment, tools and jigs, as applicable.
12. Secure prior approval from the SLP-TWG in case of deviation from the approved Business
Improvement Plan;
13. Cooperate with the SLP-TWG Monitors in the conduct of regular visit and inspection;

Ill. MODIFICATION/AMENDMENT AND EFFECTIVITY

a. Any modification/amendment to this Agreement shall be subject to the mutual consent of the
parties hereto.

b. Any deviation from the approved project proposal shall require approval of the SLP-Technical
Working Group in a majority decision. In case of unauthorized deviations, the Association
shall be obliged to return any unutilized portion of the financial assistance without need of
prior demand from the City LGU. Unauthorized deviations shall also give the City LGU the
right to stop payment of the check and/or succeeding releases covering the amount of the
grant.

c. This Agreement takes effect upon signing of the parties hereto and shall remain in force until
mutually revoked by both parties.
 IN WITNESS HEREOF, the parties through their duly authorized representatives hereto
affix their signatures this day of _____________2021 at Cabadbaran City, Agusan del Norte

Local Government Unit Sanghan Consolidated SEA-K Association

Cabadbaran City Cabadbaran City,
Agusan del Norte Agusan del Norte
By: By:

JUDY CHIN AMANTE RUBINA HINAYON

City Mayor President

ACKNOWLEDGEMENT

BEFORE ME, a Notary Public for and in the above jurisdiction, this ____ day of
____________ 2021, personally appeared:

Name Government ID Date & Place Issued

JUDY CHIN- AMANTE

Known to me to be the same person who executed the foregoing Memorandum of

Agreement which consists of seven (7) pages, including this page in which the acknowledgment
is written, signed by the party and their instrumental witnesses at the spaces herein provided and
acknowledged to me that the same is their free act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial

seal on this _______ day of __________________ 2021.

Doc. No. _______;

Page No. _______;
Book No. _______;
Series of 2021
NOTARY PUBLIC

ACKNOWLEDGEMENT

BEFORE ME, a Notary Public for and in the above jurisdiction, this ____ day of
____________ 2021, personally appeared:

Name Government ID Date & Place Issued

RUBINA HINAYON
 Known to me to be the same person who executed the foregoing Memorandum of
Agreement which consists of five (5) pages, including this page in which the acknowledgment is
written, signed by the party and their instrumental witnesses at the spaces herein provided and
acknowledged to me that the same is their free act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial

seal on this _______ day of __________________ 2021.

Doc. No. _______;

Page No. _______;
Book No. _______;
Series of 2021

NOTARY PUBLIC