annex 3_5-revised emf

7/28/2019 Annex 3_5-Revised EMF

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ANNEX 3-5

The Environmental Monitoring Fund (EMF) is a fund that a Proponent shall commit toestablish in support of the activities of the MMT for the compliance monitoring. The EMF willbe established as agreed upon and specified in the MOA between DENR-EMB and theProponent, with conformity of the MMT members. An EMF is required for all MMTs of EIS-

based projects.

The initial determination of the EMF is included as part of the Environmental Managementand Monitoring Plan and as established in the ECC for a particular project or undertaking.However, the actual amount to be allocated for the EMF shall be determined on the basis ofthe Annual Work and Financial Plan (AWFP) that would be agreed upon by the MMT, derivedfrom the Proponents Environmental Monitoring Plan (EMoP).

An appropriate basis for the determination of the EMF would be the cost of monitoringactivities and environmental information programs as proposed by the Proponent in theEnvironmental Management Plan. The rates or amounts that will be used in the preparationof the Work and Financial Plan shall be in accordance with the rates agreed upon and withinthe limits set herein or as prescribed in pertinent government guidelines.

A. Management and Administration of EMF

The EMF, which is provided by the Proponent, shall be managed and administered by theduly organized MMT Officers/EC or an equivalent Fund Management Committee inaccordance with the annual monitoring work and financial plan submitted by the MMT , dulyreviewed and concurred with by the Proponent, and finally affirmed/approved by EMB.

The Proponent shall release the amount of funds necessary in order to make available thefunding required by the approved Annual Work and Financial Plan at the start of eachquarter.

In the case of individual EMF, the Proponent shall establish a separate bank account to coverthe amount of EMF. The signatories shall be the EMB RD and the Proponent.

In the case of merged or integrated MMT, the individual EMF may likewise be integratedunder the management of the MMT Officers/EC/Fund Management Committee. Theauthorized signatories shall be the DENR-EMB RD and another member designated by theCommittee.

B. Guidelines for the Disbursement of EMF

The EMF shall be disbursed based on the following guidelines:

EMF will be disbursed according to the approved Work and Financial Plan. Eachdisbursement must be supported by official receipt, properly approved and receiveddisbursement voucher, or any other proof or document to support the expenseincurred.

The Fund Management Committee or MMT Officers/EC shall undertake accounting

of all expenses by the MMT.

Any unexpended balance of the EMF at the end of the year, shall be used to fund

next years Work and Financial Plan. In case of termination of the MMT operation,any unexpended balance shall be returned to the Proponent.

An independent auditor may be hired charged to the EMF to undertake financial

auditing. Financial reports are public documents and shall be provided by the MMTupon request.

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ANNEX 3-5ENVIRONMENTAL MONITORING FUND (EMF) ADMINISTRATION AND MANAGEMENT GUIDELINES


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The Proponent may, at its sole discretion, conduct a separate audit on the

expenditure/disbursement of EMF in accordance with applicable rules andguidelines.

C. Allowable Expenses under the EMF

The EMF shall be exclusively utilized to cover all costs attendant to the operation of theMMT. The operational activities are detailed in the MMT Manual of Operations (MOO) orequivalent documents. The EMF shall specifically be used to defray MMT expenses such as:

cost of transportation, board and lodging

MMT meetings rental of equipment the Proponent may allow MMT members to

use its equipment. If necessary, the EMF may include provisions for the rental ofequipment. In cases where the EMF is sufficient to purchase equipment, suchequipment may be acquired only when a clear and distinct system of accountability(e.g., possession, custody, storage, use, etc.) has been formulated.

documentation (photos, video, etc.)

sampling, shipment or transport of samples including laboratory analysis hiring outside experts or subcontracting of a monitoring work to a neutral party

training of the MMT

preparation of monitoring reports and distribution

public information campaign/dissemination to lessen unnecessary expenses,

activities related to public information campaign/dissemination shall be undertakenusing the existing or local offices/units of the PIA, KBP and similar agencies as wellas the public information/affairs office of the local government units.

1. Cost of Transportation

Only two (2) types of transportation costs may be charged to the EMF: 1) the costs incurred

during monitoring and 2) the costs incurred in attending the MMT meeting. For transportationcosts incurred in the conduct of monitoring, the basis of disbursement shall be the actualcosts incurred through cash advance or on reimbursement basis. For transportation costsincurred in attending MMT meetings, actual costs incurred may be reimbursed or a fixedtransportation allowance (TA) may be granted to official members of the MMT. For remoteproject sites where public transportation, meals and lodging may be unavailable, theProponent may provide transportation, meals and lodging in lieu of reimbursements or fixedallowance.

2. Board and Lodging

In order to defray costs for food and accommodation of MMT members or monitoring team, areasonable allowance or per diem may be granted to cover such costs.

The per diem or allowance shall only be granted for the duration of the fieldwork includingprovision for reasonable travel time. Such allowance should not be in excess of twice (2x)the existing government rate for such travel or fieldwork. At no instance should suchallowance be granted for travel of less than fifty (50) kilometers in distance as reckoned fromthe place of work to the site of meeting or fieldwork. Furthermore, for remote project siteswhere public transportation, meals and lodging maybe unavailable, the Proponent mayprovide transportation, meals and lodging in lieu of reimbursements or fixed allowance.

3. Monitoring Costs

The basis of disbursement of costs for monitoring expenses (such as actual sampling,shipment, or transport of samples, rental or use of equipment, documentation (photos, video,etc.), laboratory analysis, etc.) shall be the annual work plan.

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4. Allowances

Payment of allowance shall be commensurate to services rendered by the MMT members foractual MMT activities. The decision to receive allowances by other government officials orpersonnel is left to their discretion and judgment, keeping in mind, the appropriate civil

service rules and anti-graft laws. Department of Budget and Management (DBM)guidelines on the granting of allowances shall serve as the guide.

Membership in MMT or other such group is considered as public service. Such membershipis not supposed to be used as an excuse for income augmentation. The participation of theprivate sector will concretize their concern for the environmental impacts of the project, andtheir subsequent commitment to safeguard their community. The involvement of the publicsector is in line with their commitment to serve the public. However, considering governmentguidelines as reference, private individual members of the MMT shall receive reimbursement,upon showing of receipts or any legally-accepted document, to the extent that the memberwill not have any personal cash out for travel, board and lodging expenses and shall receivehonoraria for services and time spent for actual participation in MMT activities.

5. Other Costs

Costs for hiring outside experts or subcontracting of monitoring work to a neutral party,training of the MMT, preparation of monitoring reports and distribution, public informationcampaign/dissemination, and other such activities relating to the operation of the MMT maybe charged to the EMF provided allocation for such purposes was included in the annualwork plan and is not explicitly prohibited.

In the case of merged or integrated MMT, the management fee, administration and othersuch costs may be charged to the EMF.

In areas declared by the Proponent or DENR as hazard/hardship sites, the MMT shall becovered by reasonable insurance for the duration of the short-term activity.

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annex 3_5-revised emf

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