Republic of the Philippines

DEPARTMENT OF SCIENCE AND TECHNOLOGY

Administrative Order No.0 09 NOV 0 9201?

Series of 2017

Subject: GUIDELINES FOR THE GRANTS-IN-AID PROGRAM OF

DEPARTMENT OF SCIENCE AND TECHNOLOGY AND ITS
AGENCIES

RA'TIONALE/PURPOSE OF GRANT

The Depth nient of Science and Technology (DOST) through its. Grants-In-Aid
(GIA)_Program, aims to harness the country's scientific and techtmlogiciALcapabilitieS to
spur and attain sustainable economic growth and development. through the funding of
relevant science and technology (S&T) undertakings, the GIA program aims to
contribute to productivity improvement and quality of life of Filipinos by generating and
promoting appropriate technologies. Likewise, it seeks to strengthen the-participation of
various S&T sectors particularly in research and development (R&D), proinotiOn,
technology transfer and utilization, human resources development, information
dissemination, advocacy, and linkages.

The CIA program provides grants for the implementation of programs/projectS,

identified in the current DUST priorities and thrusts, and :supports S&T activities
classified in the General Appropriations Act (GAA).

SCOPE/COVERAGE

The DOST-GIA guidelines cover grant application, monitoring and reporting of

programs and projects funded under the DOST-GIA Program.

CENTRAL RESPONSIBILITY

The DUST is authorized to promulgate its procedures in implementing this program,

The DOST-Office of the Undersecretary for R&D shall manage the implementation of
DOST-GIA Program with the assistance of all concerned DUST agencies to ensure the
success of the program.

DEFINITION OF TERMS

The tenns herein used shall mean as follows:

- — ,
i
Prilppir d for hr u ry: lug); mining •
Tui uf; Rued Lb rod DI o dil
sp0.0 -
II I IIIII 1111111111,111
-12 -
1111111 Ii I

27 ' 4:2:2 p1 I
 Accounts payable--refers to the incurred expenses of the Implementing Agency due
for payment during the active period but not yet paid as of the end of duration ?of the
project.

Completion Date--refers to expiration date of a grant,• after which ne expenditures

can be charged against the grant.

Contained Use--any operation, undertaken Within a facility, installation ot other

physical structure, which involves Genetically Modified Organisms (GM0s) that
are controlled by specific measures that effectively limit their contact with, and their
impact on, the external environment. It involves the use of a regulated article for
research and development inside a physical containment facility which has been
inspected and approved by DOST-Biosafety Committee.

Continuing Project--refers to a project where funding agency agrees to provide

support for an initial specified time with a statement of intent to provide
support/budget for succeeding year, provided that funds are available and achieved
results justify further support.

Cooperating Agency--refers to the agency that supports the project by participating

in its implementation as collaborator, co-grantor, committed adopter of resulting
technology, or potential investor in technology development.,

Direct Cost--refers to expenses incurred by the implementing agency in the

execution of program/project considered indispensable to its operations.

DOST Executive Committee (EXECOM)--refers to the highest policy and

approving body of DOST which has the authority to make decisions and ensures
that these are carried out in the implementation of DOST-GIA funded
programs/projects.

Funding Agency--refers to DOST and its particular grant7,giving agendies where

funds/grants and other technical and material support come from.

Genetically Modified Organisms (GM0s)--also refers to living modified

organisin" under the Cartagena Protocol on Biosafety and refers to ariy living
organism that possesses a novel combination of genetic material obtained through
the use of modem biotechnology to make them capable of producing new
substances or perform new functions.

Grants-In-Aid (GIA)--refers to funds allocated to •prograMS/projectS. by the DOST

and its particular grant-giving agencies, including its Regional Offices and Sectoral
Councils.

II. Implementation Date--refers to the date 'when the funds were released to the
Implementing Agency.

12. Implementing Agency--refers to the primary organization involved in the execution

of program/project which includes public and private entities.
13. Income from GIA projects supported by DOST and its particular grant-giving
agencies, based on existing laws, shall include but not be limited to:

Royalty payments and other intellectual property tights. remuneration received

from results/products, processes, and technology Systems arising from a
program/project;

Rental fees, management fees, and related types of remuneration received from
the use of equipment/facilities funded by CIA Program;

Sale of produce and other products, services, and publications developed from
project activities; and

Training fees (net of expenses) collected from training packages developed

from the program/project activities.

14. Indirect Cost--refers to overhead expenses incurred by the implementing or

monitoring agency in managing, evaluation, and monitoring of the program/project.
The administrative and project management costs shall be Under this classification.

15. Interest—referS but shall not be limited to interests of deposits of the grant in a bank
account whether in a separate project account Or in a general account. This shall be
reported as earnings in the project's financial report.

16. Line-Item Budget (LIB)--refers to detailed breakdown of financial assistance

requested and reflects counterpart of Implementing Agency' and other agencies
cooperating in the project.

17. Monitoring Agency--refers to the DOST agency that reviews the project proposal
and provides technical assistance and coordinates among different implementing
and coordinating agencies. It shall evaluate the feasibility of the project/program
and ensure that implementation follows the approved project proposal, line-item
budget, and Memorandum of Agreement.

18. Multi-Year Program/Project--refers to a program/project exceeding one (1) year

project duration.

19. Oath of Undertaking--refers to a sworn statement executed by the Project Leader

acknowledging his/her outstanding obligation to. the Funding Agency with a legally
'demandable commitment to comply within the prescribed period.

20. Program—refers. to a group of interrelated or complementing S&T projects that

require an interdisciplinary or multidisciplinary approach to meet established goal(s)
within a specific time frame.

21 Program Leader--refers to the person who plans„organizes and supervises the

overall activities of .a program and is a Project Leader of at least one (1) of the
projects under a program.

22. Project--refers to the basic unit in the investigation of-specific S&T prciblem/s with
predetermined objective(S) to be accomplished within a specific time frame.

3
 Project Cost—refers to the amount or budget requested by the.
Iinplementing/Monitoring Agency and/or approved by the Funding.Agency.

Project Duration--refers to the grant period or timeframe that covers the approved
start and completion dates of the project.

Project Leader—refers to a project's principal, researcher/implernenter.

Project Proposal--refers to the plan and description of S&T project developed by a

Program/Project Leader in accordance With specific requirements or specifications
set by DOST and/or its grant-giving unit, and submitted to the latter for financial
and/or technical assistance.

Program/Project Personnel—shall be composed of the program/project leaders and

their staff, who are directly involved in the implementation of the program/projects.

Project Staff—those who render technical, administrative or management-related

services/assistance, including research utilization practitioners; information,
education, communication (IEC) material writers; and tri-media communications
support staff

Proponent--refers to an agency or organization that prepares and submits projeet

proposals for DOST approval and assistance:

Reprogramming--refers to the transfer or reapplication of funds within a project,

either between and among expense items within an expense class or between two
expense classes.

Research Funding Agreement (RFA)--refers to a contract entered into by and among

the government funding agency (GFA) and other funding agencies and the research
and development institutes (RD1s). •It governs ownership of intellectual property,
duties and responsibilities of GFAs and RDIs, technology disclosure, exclusivity of
the license, use of commercialization, establishment of spin-off firms, technologies
for research use and sharing of income and benefits froth technology
commercialization.

32 Savings--refers to the remaining balance of the approved budget of the project or the
unutilized portion of the approved projeCt funds after it has been
completed/terminated.

33 Science and Technology (S&T)--refers to scientific research and development,

promotion and commercialization of technology, dissemination and application of
scientific and technical knowledge in all fields of natural science and technology.

Termination Date—refers to the date project implementation was discontinued due to

reasonable causes, as endorsed by the Monitoring Agency and approved by the
Funding Agency.

Unexpended Balance (UB)--refers to the outstanding balance earmarked for an item

that has not yet been procured or an activity that has not yet been accomplished.

4
V. CLASSIFICATION OF S&T PROGRAMS/PROJECTS FUNDED

I. Research and Development (Generation of Knowledge and Technologies)

Research and development (R&D) is defined as comprising creative work

undertaken on a systematic basis in order to increase the stock of knowledge, including
knowledge of man, culture and society, and the use of this stock of knowledge to devise
new applications through the conduct of the following activities:

Fundamental/Basic Research--refers to experimental or theoretical work

undertaken primarily to acquire new knowledge on underlying phenomena and
observable facts. This can either be (a) without immediate or specific
application (fundamental research) or (b) geared to come up with information
toward the solution of a specific problem that has not been solved before
(oriented basic research). This category includes natural and social sciences
among other areas.

Applied Research--refers to investigation undertaken in order to utilize

data/information gathered from fundamental/basic researches or to acquire new
knowledge directed pritharily towards a specific practical aim or objective With
direct benefit to society.

c Experimental Development--refers to systematic work that draws from existing

knowledge gained from research and/or practical experience that is directed to
produce new materials, products and devices, install new processes, systems
and services, and substantially improve those already produced or installed.

d. Pilot Testing--refers to innovative scaled-up (greater than laboratory or bench

scale) activity aimed at gaining experience that may lead to further technical
improvement of product or production process, and setting the parameters
before the technology transfer of the process/product and design of equipment.

2 Research and Development Results Utilization (RDRU) - Diffusion of Knowledge

and Technologies

RDRU refers to the technology utilization and dissemination of knowledge and

innovation generated from R&D to reach the end-users, such as the LGUs, policy
makers, farmers, entrepreneurs, researchers, extension workers, industries and students.
It is the widespread adoption of technologies by users other than the original innovators.
Technology diffusion is recognized world-wide as necessary for generating economy-
wide benefits from innovation in terms of productivity gains and job creation.
Knowledge and technologies arc diffused through various channels and involve a broad
range of private and public institutions that, taken as a whole, make up the national
innovation system through the following:

a. Technology Transfer--are those activities that are basically designed to support,

promote, facilitate or fast-track the transfer of technologies developed by DUST
institutions and/or by DUST-funded/assisted R&D programs.

5
 Technology Receptor Capacity Building--are those activities that are essentially
designed to enhance the capacity of firms, particUlarly the MSMEs,. to identify
their specific technology needs, to solve their technical problems and overcome
their obstacles to the successful adoption and use of technologies arising froth
deficiencies in labor, management and organizational change. These include the
provision of consultancy services and of access to information on technology
sources.

Innovation Capacity-Building--are those activities that arc designed to promote

greater awareness of the value of innovation among firm managers and owners
particularly of SMEs, and stimulate demand for technological and
organizational change within firms, essentially through greater collaboration,
partnerships, clustering and networking among firms and with knowledge
providers. These include collaborative and systematic planning for future
strategic technology investments for a particular sector/cluster as well as the
sharing of diagnostic tools, best practices, and knowledge among firms and
academic/government institutions.

This category includes but is not limited to the following activities:

Technology needs assessment and technology sourcing--assistance

shall be provided to participating firms in the assessment of technology
needs, mapping, and identification of appropriate technologieS to
identify business opportunities and requirements of investors,
entrepreneurs, aspiring entrepreneurs, and industries in accelerating
technology commercialization.

Enterprise Development--establishment and strengthening of

technology-based business through the .provision of technology,
equipment, and training.

Consultancy and Technical Advisory Services--activities that ensure

successful adoption of technologies through DOST's pool of experts
drawn from its various agencies and members of the R&D network
including academic institutions and private firms/industries.

Technology Matching Service--activities that ensure promotion and

utilization of technology through linkages between technology
generators and technology adopters/users.

Preparation of technology commercialization plan, acquisition of

equipment and provision of technology systems to encourage and
enable the private sector to carry out technological innovation and
related activities/services.

3. Development of Human Resources and R&D Institutions for the S&T 8eetor

The development of human resources for the S&T sector involves a wide range of
interventions from the provision of high-quality formal education at all levels to
specialized training, with a focus on young scientists and engineers, and the
development, attraction and retention of the country's S&T talents.

6
 These include specialized science secondary school program; undergraduate
scholarship programs, teacher upgrading programs, graduate scholarship programs,
program for tapping Overseas Filipino S&T expertise, awards and recognition program's
and other human resource development programs. These also cover other initiatives
aimed at enhancing the public's S&T awareness such as:

International, national, or local S&T workshops/Seminatsimee 'rigs/

symposia/conferences

International, national, or local S&T competitions/quizzes/olympiads

Development of R&D institutions involVe the creation of conSottia Which address

specific S&T concerns of a region or a, grciup. It. may also, include projects aimed at
increasing the capability of institutions to conduct R&D proje'ctsl which would translate
to generation of world-dlass products and services.

4. Provision of Quality S&T Services

The DOST provides other services that strengthen the S&T infrastructure- to develop
and upgrade national, regional, and local S&T capacities of institutions and centers of
excellence. These include:

Improving/upgrading the testing, measurement and calibration serviceS of

government laboratories and facilities;

Development of information reSources/databases and general purpose data

collection to record natural, biological or social phenomena that are of general
public interest;

Testing and calibration services of R&D institutes and other DOST regional
offices;

S&T regulatory and licensing work, to include PNRI's nuclear regulation :and
licensing policy related such as those made hy the DOST Central Office;

0. Publications/bookwriting on S&T including subsidy/grant to science and

technology journals;

S&T policy development, including secretariat services 'and management

support to S&T programs ancTprojects; and

Other S&T linkages development/promotion activities (to inClude, among'

others, organization and strengthening of S&T networks, and bilateral
agreements, S&T programs for women and tri-media).

VI. SELECTION CRITERIA

I. Eligibility Requirement of the Program/Project Leader

7
 The Program/Project Leader:

a. Must be a Filipino citizen, subject to applicable laWs;

b Shall submit documents/proof of the following, which shall include 'but not
limited to: credentials/proof of capability; track record; and endorsement of
his/her institution. Eligibility shall be determined by the assigned Monitoring
Agency based on his/her readiness in terrns of technical, managerial, financial
and marketing capabilities (if necessary);

Must not have any existing accountability with DUST and its agencies
particularly technical and financial reportS (refer to Section V111.3.e); and

Must not have pending administrative or criminal Case involving, financial

transactions.

2 Project Proposal Requirement and Its Stippotting Doeurneilts

The Program/Project Leader shall submit documentsthat are required by respeetive

DUST funding agencies. These shall include, among others, the following:

Complete proposal following the DUST format:

i. R&D Programs/Projects: DUST Fonts IA and 1B (capsule), Forms
2A and 2B (detailed)

Non-R&D Programs/PrOjects (S&T Proinotion and Linkages, Policy

Advocacy, Technology Transfer, Provision of S&T Services, Human
Resource Development and Capacity-Building): DUST Form 3

Detailed breakdown of the required fluid assistance to indicate the counterpart

of the proponent and ether fund sources including letter/s Of conftintment froth
the implementing, collaborating and coordinating agency/ies (See Section
V112-1113 Preparation);

A counterpart fund, in kind and/or in cash, shall be required from the

implementing agency as one of the application requirements;

Curriculum Vitae of Project Leader and other co-researchers/implementers;

c. Approval from the institution's ethics review board for research 'involving
human 'subjects or from an institutional animal care and use coininittee for
animal subjects (if applicable);

f Clearance from the DUST BioSafety Committee (DUST-BC) shall be required

for research proposals involying the use of GMOs under tOntained use (i.e.
experiments done in laboratories, screen house, green house). For projects other
than contained use, they shall be referred to the appropriate agency. The DUST
Seen:all Councils, after determination as to whether or net the proposal has
biosafety implications, shall endorse the same to. the DUST-BC in accordance
with the prescribed format under Annex 3 of the 'Philippine BioSafety

8
 Guidelines for Contained Use of Genetically Modified Organisms (serieS of
2014); and

g. For the private sector/non-gOvemment organizations:

i Securities and Exchange Commission (SEC) registration,. Cooperative

Development Authority (CDA) registration certificate, latest
documents of incorporation and other related legal documents
Corsigtiers Statement (if applicable)
Copy of "Latest" Income Tax Return and tax clearance
Mayor's permit where the business is located;
Audited Financial Statements for the past three: (3) years;
Other eligibility and technical documents/requirements as prescribed
under Section 53.11 of the IRR of RA 9184 and Section 6.5 dated 20
August 2012, of the 'Guidelines on 1C1G0 Participation in Public
Procurement" and Bid Security (GPPB Rescilution No. 254013)
vii, Clearance requirements

For purposes of this particular section, private Higher Educational Institutions

(HEls) accredited by the Commission on Higher Education (CHEd):and:private
research and development institutions with proven track record with DOST
shall be exempted from the abovementioned requirements.

3. Project Proposal Selection Criteria

The DOST shall provide priority funding to programs/projects aligned to national

S&T priorities and project proposal's strategic relevance to national development. The
project proposal shall be evaluated based on the Funding Agency's project proposal
review mechanism, their specific review criteria, orhased on the following:

a. For research and development:

i. Program/Project Leader's competence and tOmmitmerit to undertake

the project as shown on his/her experience, training and track record;

Scientific Merit--sound scientific basis to generate new knowledge or

to apply existing knowledge in an innovative tnanner;.

Technical and Financial Feasibility--viability of the undertaking both

technically and financially;

Methodology/Strategies for Implementation—the project provides the

procedures involved, the materials used, sampling procedures,
statistical analysis, scope and limitations, time (seasonality) and place
of study;

Reasonable Timeframe--duration of the project and its activities should

be consistent with the nature and complexity of the proposed activity;

Potential Techno-takers as Partner--the project should identify the

possible and potential adoptcr/s of the technology to be developed;

9
 Plans for Research Utilization—proposal should include plans on how
R&D results will be used by the potential end-user/s or adopters;

Institutional Capacity--ability of the institution to implement the

project using with their existing and proposed facilities;

Potential Socio-Economic Impact—potential of the project to

create/provide employment, increase income and address current and
pressing national problem;

Potential Environmental and Health Impact—the project should not

have an adverse effect on the environment and/or public health; and

Political, Cultural and Gender Sensitivity--adaptability and

acceptability of the project to Philippine political context, culture,
tradition, gender and development.

b. For Research and Development Results Utilization (RDRU)

i. Conformity or Alignment to Priority Sectors—the project should

support and promote identified sectors /areas of DUST;

Technology Readiness for Commercialization-4rahsferability of

technology to be promoted to include equipment/engineering support,
and process/system;

Technical Viability—workability of technology including

complementary and auxiliary support systems;

Potential Market--level of existing demand and its potential to expand

and explore new markets for the resulting product/process/service;

Financial Sustainability/Viability—prograin/project should becimie

self-sustaining- after a reasonable start-up period;

Potential Sodo-Economie Impact—the project to create/provide

employment, increase income and address current and pressing
national problem;

Potential Environmental and Health Impact—the project shodld not

have adverse effect on the bnvirohnient and/or public health:, and

Political, Cultural and Gender Sensitivity—adaptability and

acceptability of the project to Philippine pcilitical context; culture,
tradition, gender and development.

c. For provision of quality S&T services including prOmetion of science and

technology and other related services such as advocacy, information
dissemination, and linkages

10
 Relevance--meets the needs of industry, gevernment, acadeine, and
general public;

Youth Orientedness—geared towards developing S&T consciousness

and interest among the youth to get involved in S&T undertakings
among the youth;

Contribution to Development of a Science Culture—commitment to

nurture the public's interest in S&T; and

iv. Timeliness—responsive to present issues of national, regional, and Weal

S&T concerns.

VII. PROPOSAL PREPARATION, SUBMISSION, REVIEW, AND APPROVAL

I. Detailed Proposal and Work Plan

The Program/Project Leader shall prepare a detailed proposal using the prescribed
DOST form that presents among others the following:

Title of proposed program/project

Information about the Program/Project Leader
SignifiCance and objectives of the project
Review of related literature (references to illustrate/describe the baseline data)
Theoretical framework (key assumptions and critical areas in conceptualization
stage)
I Methodology/strategies for implementation
Expected output
Target beneficiaries
Gender sensitivity/responsiveness (based on the harmonized gender and
development guidelines)
Personnel and financial requitement
Duration of the program/project
I. Work plan or Gantt Chart of activities
m. Curriculum vitae of Program Leader, Program/Project Coordinator Project
Leader and Other Co-researchers/implementers

2 Line Item Budget (LIB) Preparation

The igant shall finance project expenditures itemized in an approved LIB following
the DOST Form A-Project Line Item Budget. The grant may cover partial or full cost of
the project, both direct and indirect costs of the Maintenance and Other Operating
Expenses (MOOE) under GAA which shall include personal services, maintenance and
other operating expenses, and capital outlay that are-integral part of the R&D, which are.
crucial in the attainment of the projectobjectives. All expenditure items in the LIB shall
be in accordance with the Unified Account Code Structure (UACS), relevant provisions
are shown below:

a. Direct Cost
 Direct cost covers expenses incurred by the implementing agency in execution
of program/project considered indispensable to its operations. It can be broken
down according to specific accounts under Personal Services (PS), Maintenance
and Other Operating Expenses (MOOE), and Capital Outlay (CO)..

i. Personal Services (PS)

This includes salaries and wages, honoraria, fees, and other

compensation to consultants and specialists. These personnel undertake
specific activities that require expertise or technical skill. Payment of
salaries and honoraria should specifically be based on the applicable
guidelines.

Maintenance and Other Operating Expenses (MOOE)

'MOOE shall be in accordance with the Government Accounting

Manual (GAM) and shall be broken down/itemized as follows:

Traveling Expenses—costs of: (1) mov&nerit of persOnS

locally and abroad, such as transportation, travel insurance for
researchers exposed to hazard/risks, subsistence,. lodging and
travel allowances, fees for guides or patrol; (2) transportation
of personal baggage or household effects; (3) bus, railroad,
airline, and ship fares, trips, transfers, etc. of perSons while
traveling; (4) charter of boats, launches, automobiles, etc.
non-commutable transportation allowances, road tolls; and (5)
parking fees and similar reasonable expenses.

For foreign travel, the proposal shall include the tiaine(S),

designation of program/project personnel who will travel,
possible country of destination, purpose. and duration of the.
travel, providecdonly project personnel Shall he allowed. to use.
the .travel funds except in highly meritorious eases . as
determined by the Funding Agency upcip endorsement of the
Monitoring Agency: A travel report shall be required;

Availment of travel gt-ant using GIA finds for both DOST

Agencies and Non-DOST agencies should be governed by
DOST prescribed rules and other existing applicable relevant
guidelines, circulars, or order of competent authority pursuant
to law and implementing rules and regulations.

Communication Expenses—include costs of telephone,

telegraph, mobile/wireless and tolls, fax transmission, postage
and delivery charges, data. communication services, interne
expenses, cable, satellite, radio and telegraph messenger
services, among others;

Repair and Maintenance of Facilities—include costs of repair

and maintenance of office equipment, furniture and fixtures,
machinery and equipment, If equipment and Software,.

12
 building, office and laboratory facilities, and other S&T
structures directly needed by the project;

ii.4 Repair and Maintenance of Vehicles--include costs of repair

and maintenance of vehicles directly needed by the, project
except for cost of spare parts, gasoline, and oil that shall fall
under Supplies and Materials;

Transportation and Delivery Services--include the costs of

commercial transportation of mail, hauling of equipment or
materials, including porterage, if any. Not included in this
account are: costs of transportation of equipment, supplies and
materials purchased for operation. Instead, these costs shall be
included as part of the cost of the equipment/supplies and
materials;

Supplies and Materials--include costs of items to be used in

specialized S&T work (e.g. office supplies, accountable
forms, zoological supplies, food supplies, drugs and medicine,
laboratory supplies, gasoline, oil and lubricants, agtieultural
supplies, text books/instructional materials, and, Other
supplies). It also includes all expendable commodities
(delivery cost included as needed/required) acquired or
ordered for use in connection with project implementation
such as spare parts, fuel, and oil;

ii.7 Utilities--include costs of water, electricity or cooking fnel

consumed by the implementing agency directly related to the
project;

Training and Scholarship Expenses—include training fees and

other expenses, and scholarship expenses such as tuition fees,
stipends, book allowance, and other benefits;

Advertising Expenses—include costs of authorized advertising

and publication of notices in newspapers and magazines of
general circulation, television, radio, and other forms of media
necessary for the implementation of the project;

Printing and Binding Expenses--include costs of producing,

printing, and binding materials such as books, reports,
catalogues, documents, and other reading materials necessary
for the implementation of the project;

Rent Expenses--rental fees for the use of facilities, equipment,

and vehicles directly used in the implementation of the
project;

ii.12. Representation Expenses--include costs of meal/food for the

conduct of workshops/meetings, conferences, and other
official functions related to the project;

13
 Subscription Expenses—include costs of subscription to
library Materials, such as magazines, periodieals, and other
Leading materials necessary for the implementation of the
project;

Survey Expenses--include costs incurred in the .Conduct of

survey related to the project;

Professional Services--as defined in GAM, but only those

items that are relevant and appropriate to the proposed
program/project;

Taxes, Insurance Premiums and other Fees—include costs

of taxes, duties and licenSes, fidelity bond premiums, and
insurance expenses of equipment acquired Under the
project; and

7. Other Maintenance and Operating Expenses—additional

items not included above such as cost of SubiniSsion Of
scientific paper for peer reviewed journals.

iii. Capital Outlay (CO)

This includes all equipment necessary for the implementation of the

project, which shall be enumerated in the proposed LIB. Equipment
procured through GIA funds are subject to the provisions under Seetion X
"Purchase, Ownership, and Accountability of Equipment and Other
Properties" of this Guidelines. Every equipment shall still be subject to
the evaluation of the monitoring agency.

This also includes infrastructure that are integral part of the R&D,
which are crucial in the attainment of the project Objectives.

b. Indirect Cost

Indirect cost covers overhead expenses' incurred by the Implethenting Agency

in managing and, Monitoring Agency in evaluating and monitoring fhe
program/project. The administrative and project management costs shall fall under
this account. Similar to direct cost, the, indirect cost can be broken down according
to specific item under PS and MOOE.

i. The indirect cost shall be included in the LIB except for projects on
printing/documentation of proceedings and publication of books and
other works, and conduct of conferences/seminars/ workshop, and for
projects that are purely equipment acquisition in nature.

The total indirect cost of a program/project shall not exceed 15°4 of the
total PS and MOOE of the progranvproject.

14
 The Implementing Agency and Monitoring Agency shall each retain an
indirect cost, equivalent to 7.5% on PS and MOOE less Taxes, Duties and
Licenses. For projects that are primarily on S&T prormition, policy
advocacy, human resource development and capacity-building, the
indirect cost Shall not exceed three hundred thousand pesos
(P300,000.00) unless otherwise allowed by the Funding Agency,
subject to submission of substantiation as to increased costs based on
scope, complexity and geographic coverage.

Indirect cost incurred by the Implementing Agency shall include

financial and administrative support for PS (salaries and honoraria) and
MOOE (utilities/maintenance expenses, supplies and materialS, and
printing/publication). For Monitoring Agency, indirect cost covers
expenses incurred in managing the program/project, which shall
include financial and administrative support for PS (salaries and
honoraria) and MOOE (eommunication serVices, transportation and
delivery services, traveling expenses, 'utilities, supplies and materials,
representation expenses, professional services) and equipment outlay.

No funds coining from the Funding Agency shall be used to pay

'indirect costs incurred by the same agency.

The number of personnel receiving honoraria on a per project basis

under indirect Cost shall not exceed five (5) for the Implementing
Agency and three (3) for the Monitoring Agency except in highly
meritorious cases as approved by the Funding Agency upon
endorsement by the Monitoring Agency.

3 Project Proposal Flow/Approval/Release of Funds

The Program/Project- Leader shall submit the proposal duly endorsed by the
Head of Agency to the Office of the Undersecretary for R&D, which shall
acknowledge submission and update the Program/Project Leader of any action
taken on the proposal.

The project proposal shall be evaluated through an established project review

mechanism. Endorsement of the appropriate Sectoral Council/ DOST agency to
monitor the project shall be required for all project proposals.

All new projects to be funded under the DOST-GIA Program shall be subject to
approval of the EXECOM except for projects amounting to five million pesos
(P5,000,000.00) and below which may be approved by the Undersecretary for
R&D. The EXECOM shall be informed of the projects approved by the
Undersecretary.

Upon approval of the proposal, a Memorandum of Agreement (MOA) shall be

issued by the DOST-Special Projects Division (SPD). For continuing projects, a
conforme letter shall suffice (See Annex B-MOA/Conforme Letter Formats).
The DOST Secretary shall be the principal signatory for all documents pertinent
to the approved project amounting to more than ten million pesos
(P10,000,000.00). Approved projects amounting to ten million pesos

15
 (P10,000,000.00) or below shall be for the signature of the Undersecretary for
R&D.

VIII. GRANT ADMINISTRATION

I. Roles of the Concerned Institutions/Offices/Staff

The SPD shall:

i. Act as the Secretariat to the EXECOM and monitor DOST-GIA fund

status;
Ensure, with the assistance of the designated Monitoring Ageneies,
that grant conditions and policies concerning program/project
implementation are strictly followed; and
Revise the content of the DOST-GIA Font's subject to approval by the
EXECOM.

The SPD shall coordinate with the appropriate Sectoral Council. Further, the
SPD shall provide concerned offices with all pertinent documents related to the
approved programs/projects forpe documentation and
oeirn the cmduct of aSseasiterit
coordination/monitoring and facilitate assiStapni:c
by the DOSTLEXECOM of major completed R&D projects.

The Monitoring Agency shall ensure the efficient, timely and smooth
implementation of approved projocts and that Set objectives and targets are
attained. It shall conduct periodic field evaluation of the project to identify
problems, solutions and remedial actions to avoid delays in-implementation.
The Monitoring Agency shall also examine the budget requirements of the
projects especially those that require continued funding. In addition, it shall
evaluate the activities conducted, review, reports submitted and ensure that
appropriate intellectual property protection be initiated, where applicable, for
outputs of R&D project. For publishable accomplishments, submission of'
manuscript for possible publication in scientific journals most preferably those
accredited by the Institute for Scientific Information (TSI) should be reqaired.

Monitoring and evaluation expenses shall be governed by DOST pregeribed

rules and other existing applicable relevant guidelines; circulars, or order of
competent authority pursuant to law and implementing rules and regulations.

c The Implementing Agency shall have primary responsibility of all project

activities. It shall notify the Monitoring Agency of significant
concerns/problems related to project implementation. The Head of the
Implementing Agency shall ensure that the Project Leader submits to the
Funding Agency all the required reports/documents on time.

d. The Program/Project Leader shall provide technical leadership and directly

implement the program/project; adhere to the goals/objectives of the
program/project; follow strictly the approved activities as reflected in the work
plan; deliver committed outputs; and submit required reports/docunieMS On
time. The Program Leader shall coordinate with the project loaders to: ensure

16
 that the goals of the projects and program are attained; consOlidate the projeetS'
output, which shall be packaged as a program output; ensure that all
implementing guidelines has been read and understood; and execute
manifestation to abide by all the rules.

To ensure that Programs/Projects are effectively implemented, a Program

Leader shall handle only two (2) programs at a time while a Project Leader
shall handle only three (3) projects at a time.

e. The Project Staff shall undertake the actual day-to-day imPlemeritafton of the
S&T program/project. He/she is required to read the implementing guidelines of
the project and execute manifeStation that he/she understands and is willing to
abide by all the rules. He/She shaft be involved in only twO (2) prOjects at a
time.

2 Technical Monitoring

The Program/Project Leader shall submit periodic accomplishinent report& to the

Funding Agency through the Monitoring Agency. All reports must be duly endorsed by
the Head of the Implementing Agency.

a. Submission of Technical Reports by the Implementing Agency to he

Monitoring Agency

i. A regular semi-annual progress report using DUST Form D-Serrn-

Annual Progress Report shall be submitted in two (2) hard copies and,
an electronic copy, within a month after the end of each semester.

A program/project with a one (1) year ±duration shall submit the

terminal accomplishment report in two (2) hard copies and an
electronic copy, not later than two (2) months after project completion,
together with DUST Form K-List of Equipment Purchased.

A program/project with multi-year duration shall submit the annual

technical report in two (2) hard copies and an electronic copy, not later
than two (2) months after each year of implementation, together with
DUST Form K-List of Equipment Purchased.

In case of a program, a consolidated annual program report shall be

submitted in addition to the individual project reports.

The Monitoring Agency shall report to the EXECOM, for its

appropriate action, any failure of the Implementing Agency to submit
reportorial documents.

b. Submission of Technical Reports by the Monitoring Agency to the Funding

Agency

i. The Funding/Monitoring Agency shall conduct periodic field

evaluation to monitor progress of project implementation and help
resolve problems, if any. An evaluation report using DUST Form 0-

17
 Project Monitoring and Field Evaluation Report, which Shall be
submitted together with the renewal documents (for ongoing projects)
and terminal appraisal/assessment report (for completed projects).

Upon completion of the program/project, a technical report shall be

submitted in two (2) hard copies and an electronic copy; not later than
three (3) months after completion. It shall include the pre-print
manuscript and information on patentable invention, if applicable;
using the DOST guides and outline on preparing R&D terminal report
and publishable report/article.

The DOST appraisal/assessment report shall be submitted to the

Funding Agency within one (1) month upon receipt of the acceptable
terminal report.

c. Program/Project Extension

i. Requests for extension of program/project shall be submitted together

with the following documents:

iii. 1. Latest financial report

iii.2. Proposed LIB
iii.3. Gantt Chart of actiVities for the extension period
Technical report
iii.5. Justification for extension

Payment of honorarium shall not be allowed during the extension

period.

Requests for extension without additional funding shall be evaluated

and approved by the Monitoring Agency, which shall inform the
Funding Agency within two (2) weeks upon its approval. Those with
additional handing requirements shall be evaluated and -endorsed by the
Monitoring Agency for approval of the Funding Agency.

A program/project may be extended for a maximum of One year

beyond its Original duration for multi-year project No extension shall
be allowed for project with less than one (1) year duration, except
when reason for extension is due to force maj cure.

Extension of a continuing project shall not be allowed unless, it is on its

terrninal/last year of implementation. The request for extension should
be submitted three (3) months before the' expected date of completion,
except for extensions as a result of force majeure.

If request for extension involves the use of unexpended balance,

financial report or statement of fund balances as of date of request
should be submitted not later than one (1) month before the expected
date of completion. (See Section VIII.3.d.iv)

18
 vi. A progtarn/project ban be given a Makin-min of Only two (2) extenSiOns
but not tq. exceed a total of 12 months except for :extensions, as a 'result
of force majeure. The request for extension should be submitted one
month before the completion date of first extension.

d. Continuing Assistance and Additional Funding of Programs/Projects

The request for continued funding of an ongoing or multi-year

program/project shall be submitted to the Monitoring Agency not later
than two (2) months before the end of the active period. The
Monitoring Agency shall forward its recommendation to the DUST not
later than one month before the end of the active period. If approval
has not, been sought by the end of the active period, the
program/project shall be automatically suspended. The implementing
agency is not authorized to use the project funds' during the suspension
period.

The request for continued funding shall be supported by the following

documents:
I. Technical and financial reports that cover at least the last three
(3) quarters of the implementation period
ii . Work Plan
Proposed LIB (including cash program) for the succeeding
year
Duly signed list of inventory report of equipment
Property Acknowledgment Receipt (PAR)
ii.6. List of personnel involved
ii.?. Endorsement of the Monitoring Agency with an appraisal
report

iii. In renewing multi-year programs/projects, the proposed budget for

continued funding shall be based on the amount originally approved by.
the EXECOM. Renewal of a multi-year programs/projects that does
not require additional funding or has no major changes in the title,
objectives or expected outputs shall be approved by the DUST
Secretary upon recommendation by the Undersecretary for R&D.

Any increase in funding shall require EXECOM approval.

e. Deferment/Suspension/Change in Implementation Date

i. The Monitoring Agency shall review and approve the request for
deferment/change in implementation date of a new program/project
and shall inform the EXECOM of such change, For DOST-Central
Office (DUST-CU) directed projects, the Monitoring Agency shall
approve the requests for reprogramming.

The revised project duration shall have the same length as the
originally approved duration.

19
 Projects with deferred implementation due to delay in the release of
funds shall commence within two (2) months after the releaSe of funds.

iv. Requests for deferment for start of implementation should be made at

the latest within the first month after fund release.

V. Requests to suspend the implementation of an ongoing project for a

maximum of three (3) months shall be approved by the concerned
Undersecretary as endorsed and recommended by the Monitoring
Agency. The Monitoring Agency shall then report to the EXECOM the.
suspension, upon which, said EXECOM shall decide for resumption,
extension of suspension or cancelation of the project.

f. Change in Project Title/Objectives/Activities/Implementing Agency

Change in the project title and activities/work plan, which, do not affect
project deliverables shall be approved by the Monitoring Agency. Request for
change of imPlementing agency, objectives, or activities that affect project
deliverables shall be reviewed and endorsed by the Monitoring Agency for
approval of the Funding Agency. In both caSes, the Implementing Agency shall
be required to submit justification for such change.

3. Financial Monitoring

The DOST-GIA funds released to implementing agencies shall be available for use
within the approved project duration including approved extension subject to DOST
approval and existing government accounting and auditing rules and regulations. The
GIA funds shall not, be used for money market 'placement, time deposit and other forms
of investment not related to the project. Project funds shall be deposited, in an authorized
government depository bank.

a Fund Releases

The Funding Agency shall release the project funds to The

Implementing Agency in partial or full amounts, once DOST has
received the signed MOA or confonne letter has been signed subject to
availability of funds, accounting and auditing regulations, and bond
requirements (if necessary).

Project implementation shall commence within two (2) months after

the release of funds.

Subsequent release of funds to continuing projects shall be subject to

the submission of necessary financial reports, appropriate endorsement
.and other requirements as indicated in Section VIII.2.c.ii to VIII.2.d.iii
of this guidelines.

b. Budget Reprogramming and/or Modification

Disbursement of grants shall be in accordance with the approved LIB and

subject to existing government accounting and auditing rules and procedures. If

20
budget reprogramming is required, a request shall be made not later than two
(2) months before the end of the project's current year of implementation.
Budget reprogramming and/or modification may be allowed for not more than
three (3) times per year of implementation, including the approVed:ektension, if
any.

The request for reprogramming shall be supported by the following

documents: request letter duly signed by the Head of Agency;
endorsement/approval letter from the monitoring agency; latest financial tepott;
work plan; and progress report Of additional funding and/or project extension Is
required). These documents shall be considered as the final program/project
documents.

A revised LIB shall be issued to cover budget reprogramming, transfer of

funds, reclassification of the position of the project personnel, and creation of
expense item/s.

Any reprogramming or transfer of funds froth one expense item to another

shall be based on the LIB approved by the Funding Agency. The
Funding/Monitoring Agency must be informed of the budget reprogramming
including changes in the indirect cost made by the Monitoring/Implementing
Agency. Otherwise, the reprogramming shall be deemed null and void.

The approving authorities of budget reprogramming shall be as follows;

i. Implementing Agency

Except for expense- items under MOOE such as Foreign Travel and
Training, any reprogramming/transfer of funds of existing expense
item budget as originally approved by the Funding Agency to augment
direct and indirect cost under PS,,M00E, and CO Shall be approved by
the Implementing Agency provided that it will Mit &teed tile 7.5%
ceiling for indirect cost. A copy of the approved reprogrammed LIB
and other required documents shall be submitted to the Monitoring
Agency within two (2) weeks upon its approval for subsequent.
endorsement to the Funding Agency.

The approved reprogrammed item/s shall be reflected in the

financial report's to be submitted by the Implementing Agency (under
"approved budget").

Monitoring Agency

The Monitoring Agency shall review and approve requests for

budget reprogramming which does not require additional funding but
are beyond the approving authority of the himlementing Agency. A
copy of the approved LIB and other required documents shall be
submitted to the Funding Agency within two (2) weeks upon its
approval.

21
 The Monitoring Agency shall approve budget reprograrnming
involving creation of new expense itern/s (including increase in
number of personnel and equipment) without, additional funding, both
under the ditect and indirect costs with appropriate adVice to the
Funding Agency.

In approving requests for reprogramming, the Monitoring Agencies

shall ensure that objectives and targets of the program/project shall not
be affected. A copy of the approved reprogrammed LIB and other
required documents shall be submitted to the Funding Agency within
two (2) weeks upon its approval.

Funding Agency

The Funding Agency through the EXECOM shall approve budget,

reprogramming that entails creation of new expense item/s with
additional funding, both under the direct and indirect costs, based on
the .reconintendation of the Monitoring Agency.

c. Submission of Financial Report (FR)

For monitoring purposes, the Implementing Agency shall submit to the

Monitoring Agency a FR certified correct by -the agency aecountant
within a month after each semester. If applicable, as deemed by the
monitoring agency, the following requirements shall be submitted:

i. I. DOST Form H-Semi-Annual/Annual FR;

POST Form K-List of Equipment Purchased;
DUST Form L-Schedule of Accounts Payable; and
DUST Form M-Report of Income/Interest Generated/Earned.

The FRs shall be itemized in accordance with the approved LIB.

For program/project with multi-year duration, the Project 'Leader shall

submit FR for grants received, duly noted by the Head of the Agency
or its authorized representative and certified by the agency accountant
within two (2) months after the end of each year of implementation.

For projects with CO, the FR shall be supported by DUST Fonn K-List
of Equipment Purchased and PAR.

1. A Terminal Audited FR (DUST Form I) 'shall be submitted to the

Monitoring Agency within three (3) months after the-completion of the
project. The Monitoring Agency shall submit the audited FR not later
than one month after receipt from the Implementing Agency. For
NGOs or privately owned institutions, an audited FR shall be
submitted duly certified by a licensed accountant together with an
Audit Certificate/Report.

d. Unexpended Balance, Savings, Interest arid Income

22
 i. The UB, savings and income and interest of a program/project, if any,
shall be reported and included in the annual FR/AFR submitted to the
Funding/Monitoring Agency.

For continuing projects, the UB of the previous year Shall be deducted

from its total approved budget for the current year.

For multi-year projects, once the renewal of project is approved, the

use of the UB to pay for the salaries of project personnel and critical
items under MODE necessary for continued operations is allowed. The
expenditures shall be based on the LIB as presented and approved
during the EXECOM meeting or as approved by the Undersecretary
for R&D, in base the EXECOM approval is not sought.

Requests for additional funds and/or to use the UB/savings

completed/terminated/extended projects to pay for salaries and MOOE
expenses shall be approved by the Funding Agency upon
recommendation of the Monitoring Agency.

Request to use the UB/savings to continue project implementation

shall be submitted within one (1) month before the expected date of
completion. It shall be supported with FR and valid justification to be
used as basis in preparing a new or revised LIB.

Upon project completion/termination, all balances/savings and

income/interests earned shall be reported and reverted to Funding
Agency within three (3) months after the end of project period.

For the income generated from ongoing or completed project, the

Implementing Agency may request for the use of the income from the
Funding Agency, subject to applicable government rules. In no case
shall the interests and income earned under a project be used to fund a
new project not related to the original intent of the fund.

Particular guidelines shall govern programs/projects which require refund

mechanism, provided that they are not inconsistent with the existing DOST-
GIA guidelines, Which shall serve as reference.

e. Non-Submission of Requirements

For failure to submit the required financial, technical and other reports
within the prescribed deadlines, demand letter shall be sent to the Project
Leader and Head of Agency.

Upon the recommendation of the Monitoring Agency, the Project Leader

may be prevented from receiving further grants or any kind of support from any
agency within the DOST System until he/she is cleared from all obligations
pertinent to previous CIA grant received. For compelling reasons, subject to
endorsement of the Monitoring Agency, the Project Leader shall submit an
Oath of Undertaking to allow him/her to receive further grant or support

23
 The Funding Agency may undertake legal measures against the Project
Leader for non-submission of requirements.

f Audit and Inspection

A program/project being implemented by a government institution, shall be

subject to audit by the 'COA resident auditor or its authorized representative. A
program/project being itripleniented by a . rion:goveminent agency, shall be•
audited by an independent Certified Public Accountant.

The activities, operation, books of accounts and records of the project shall be
Subject to inspection by the authorized representative of the Funding Agency
and its auditor, whenever necessary.

IX. HIRING OF PROJECT PERSONNEL/NATURE OF APPOINTMENT

The Program/Project Leader shall hire personnel on contract basis to work for the
program/project in accordance with existing hiring policies of the Implementing
Agency. The hired program/project personnel shall not be allowed to engage in
activities other than those under the program/project during regular working hours.
All contractual program/project personnel shall be bound to the rules on conflict of
interest.

The contract of service of program/project personnel shall be co-terminus with the —

program/project ono the specific work for which he/she was hired.

Program/project personnel shall not be allowed to pursue any local/foreign

fellowship/training grant nor travel abroad during his/her employment unless there
is written approval from the Implementing Agency.

The Project Leader Shall submit to the Funding Agency a list of all personnel hired
under the project, including their responsibilities, qualifications, and other relevant
information using DOST Form J.

Further, said contract shall clearly state that as per provision of said particular
Contract of project personnel, no employer-employee. relaticinship shall exist
between said individual and the Monitoring Agency and with the DOST.

The grant of honoraria to Program/Project Leaders/Coordinators and other personnel

shall be based on existing DOST guidelines on the grant of honoraria. (See Annex
C). The list of project personnel receiving honoraria shall be submitted to the
Funding/Monitoring Agency. No honorarium shall be given to the program/project
leader/staff of a project under extension.

11 a Program/Project Leader transfers to another agency, the project shall remain

with the Implementing Agency.

.A Program/Project Leader who intends to leave the project shall notify the Head of
the Implementing Agency, who shall then submit to the Monitoring Agency the
name of the recoinmende,d. substitute for the outgoing Program/Project Leader. The

24
 criteria for selection of the new Program/Project Leader shall include track record
on project management.

The outgoing Program/Project leader shall be relieved of his/her obligation to the

program/project once the Head of the Implementing Agency has issued the
appropriate clearance from all money, records and property responsibilities and
accountabilities (e.g. submission of financial and technical reports).

The Monitoring Agency shall approve the designation of the replacement and
inform the Funding Agency of the change in project leadership.

8. The Funding Agency shall not provide additional compensation, benefits, pension Or
gratuity to any program/project personnel who retired or were laid off during or
after completion/termination of the program/project.

X. PURCHASE, OWNERSHIP, AND ACCOUNTABILITY OF PROJECT

EQUIPMENT AND OTHER PROPERTIES

Supplies, materials and other properties authorized to be purchased using CIA funds
shall be used exclusively for the program/project. Equipment designed and fabricated
using MOOE funds of the project shall be reported as equipment. Equipment procured
under CIA-assisted projects are subject to the following guidelines:

1. Purchase of Supplies, Equipment and other Properties--procurement of goods using

GlA funds shall be subject to the usual government procurement laws consistent
with existing accounting and auditing laws, rules, and regulations. In case a private
entity is providing counterpart funds for the purchase of equipment under the
program/project, the method of procurement of goods/equipment exceeding five
hundred thousand pesos (P500,000.00) shall be subject to the terms and conditions
agreed by the Funding Agency and private entity as provided in the MOA.

Only equipment included and identified in the approved LIB shall be purchased
using grant funds. Items purchased under capital outlay as indicated in the approved
LIB shall be classified as fixed assets and shall be covered by Property
Acknowledgement Receipt (PAR) for Equipment.

1 Accountability for Equipment--the Program/Project Leader shall be primarily

responsible for all properties related to the project until the Same are
transferred/loaned to another entity upon project termination. The Program/Project
Leader shall sign the corresponding PAR attested by the Property Officer of his/her
institution and submit it together with copies of all purchase documents to the
Funding Agency within thirty (30) days from the date of delivery. The Funding
Agency shall then record and maintain the list of purchased equipment. (The
Accounting Division to record the liquidation based on the submitted JEVs and
provide the Property Office copies of PARs). The Funding Agency shall issue
Property Transfer Report (PTR)/Deed of Donation (the appropriate Property.
Section) to the Program/Project Leader upon written request from the Implementing
Agency after the termination of the project. The recipient/end-user shall be.
responsible directly to Program/Project Leader.

25
 If a Program/Project Leader transfers to another government office, retires, resigns,
or is dismissed/separated from the service, the Implementing Agency must ensure
that the Program/Project Leader has secured clearance from their Property and
Supply Section, as well as inform the Funding Agency. Clearance Shall not be
issued unless all properties related to the project are fully accounted for.

Ownership of Equipment—The Funding Agency shall initially own all equipment

purchased through grant ftinds until such are transferred to other projects or
implementing institution. The ownership of equipment shall be transferred subject tO
existing government rules. The Funding Agency reserves the right to transfer
ownership of such government equipment through Invoice Receipt/s for Property
(PTRs) or execution of Deed/s of Donation subject to existing government
accounting and auditing laws, rules and regulations. (See PTR Forth) (Refer to
Section X.12 regarding request for transfer of equipment after project conviction).

Record Keeping--the Property Officer of the Funding Agency shall establish a

complete and centralized file of records of all equipment procured through DOST-
assisted programs/projects based on the PAR 'submitted by 'the Implementing
Agency in collaboration with the technical, accounting and budget divisions,
auditing office, and project leaders.

The Implementing Agency shall record the equipment purchased out of the project
funds in accordance with GAM subject to the provisions of Philippine Public Sector
Accounting System No. 17 (PPSAS 17).

Directory of Equipment—the Property Officer of the Funding Agency shall also

prepare a directory or master list of all equipment based on the PAR submitted by
the Implementing Agency which shall include the following data:

Agency Name
Location of Equipment.
Project Title
Current custodian or end-user accountable for the equipment
Programmed Equipment
Equipment purchased with individual description/specification
Date of Acquisition
Property Number
Amount per LIB
PAR serial no.
Acquisition/actual cost
I. Current physical condition whether usable, defective or beyond economic repair
and disposition made pursuant to existing government rules and regulations.

6 Physical inventory of equipment--an actual inventory of equipment purchased

through GIA projects shall be conducted by the Monitoring Agency. Reports shall
be generated using the DOST Inventory Report Format and DOST Form 0-Project
Monitoring and Field Evaluation Report. All equipment shall be labeled with the
standard Implementing Agency sticker and/or tracking device during the conduct of
physical inventory.

26
 Updating of equipment records--the Property Officer of the Funding Agency shall
update the directory and records of equipment every year based on PAR received Or
PTR/Deed of Donation issued to Implementing Agency. A copy of the updated
directory shall be provided to the project leaders, technical, and financial
divisions/units concerned.

Care and location of equipment—the program/project leader shall ensure that the
project equipment are housed in a suitable location and that proper care,
maintenance and due diligence are cibserved.

Sharing in the use of equipment—equipment purchased through. GIA

programs/projects may be shared with other ongoing programs/projectS subject to
mutually acceptable and convenient arrangements between concerned parties,
subject to approval by the owner of the equipment. The owner of the equipment
shall enure that proper 'technical assistance is given in the operation of the
equipment. However, no equipment shall be physically transferred Without the
written consent of the program/project leader and the Funding Agency.

Repair or replacement of defective equipment--the Program/Project Leader shall be

responsible for the immediate repair of defective equipment using available funds as
provided in the approved LIB.

Plans for the use of equipment--The Head of the Implementing Agency shall inform
the Funding Agency on equipment purchased through GIA funds, which remain
unutilized. Such information shall be Used in the evaluation of new projects,
especially those requiring the same equipment.

12. Transfer of ownership of equipment without cost--The Funding Agencymay allow

the transfer of ownership of an equipment under a completed/terminated project
without cost in favor of the particular institutions which implemented the project.
The following conditions shall apply:

The equipment shall be used in research and development, extension and

education purposes or activities;

An PTR or execution of Deeds of Donation shall be issued after submission of

an inventory of equipment purchased, JEVs and PARs. The PTR (three (3)
original copies) shall be signed by the Head of receiving agency before
submission to the Funding Agency for approval. The respective Property
Offices of the Funding Agency, Implementing Agency and receiving institution
shall be provided with copies of the approved PTR/Deed of Donation;

Once transfer is effected, the receiving agency shall bear all expenses that may
be incurred for repair, maintenance and/or improvement of the equipment;

The receiving institution shall enter in its books of accounts the itemized total
book value of the equipment transferred in accordance with GAM;

c. The receiving institution shall comply with the Property Insurance Law
requiring all government entities to insure their properties with the Property
Insurance Fund at its own expenses; and

27
 f. In the exigency of the service, the Funding Agency may borrow the transferred
equipment, without charge, to be used in other GIA programs/projects subject
to concurrence of the Project Leader and Read of receiving institution.

13. Loan of equipment upon written request, an equipment procured through a previous
GIA project may be loaned free of charge to other Program/Project Leaders subject
to the following conditions:

The equipment shall bc used for purposes of (a) carrying out its research, either
solely by itself or in collaboration with other institutions, (b) instruction in
science and technology; and/or (c) dissemination of knowledge in science and
technology. In no case shall any fee be charged for such use nor shall :the
equipment be sub-leased without prior written approval of the Funding Agency;

The loan of an equipment shall be on an "as is, where is' basis, and alteXpetiSes
for its repair, maintenance and/or improvement shall be borne by the end-user;

The end-user shall be liable for any damage or loss of the loaned equipment
except for those brought about by normal Wear and tear; and

The loan shall be for a definite period only but shall be subject to renewal upon
approval of the Funding Agency. At the end of the loan period, the equipment
shall be returned to the Funding Agency in good condition.

14. Unserviceable equipment--When equipment purchased under DOST-GIA

programs/projects has become unserviceable for any cause, or is no longer needed,
divestment or disposal shall be transparent, and with the end in view that public
funds and resources should be properly maximized and fully aocounted for; further,
it shall be governed by appropriate existing rules. The Implementing Agency in
coordination with the Monitoring Agency shall ensure that proper inventory is
conducted and that an appropriate report is generated (using the Inventory and
Inspection Report of Unserviceable Property).

OWNERSHIP, PROTECTION AND UTILIZATION OF

PROGRAM/PROJECT RESULTS/INTELLECTUAL PROPERTY RIGHTS

Matters affecting intellectual properties or intellectual property rights -such as their

ownership, protection and utilization, technology disclosure, exclusivity of the license,
use of commercialization, establishment of spin-off firms, technologies for research use
and sharing of income and benefits from technology commercialization shall be
governed by existing rules on intellectual property as.applicable to the DOST.

DISCONTINUANCE OF WA ASSISTANCE

The Funding Agency reserves the exclusive right to discontinue its assistance to any
program/project at anytime for violation of Grant Agreement, when the results obtained
or expected to be obtained do not justify further activity, fraud or falsity in
Program/Project Leader's proposal, representations and warranties and when funds

28
become unavailable. The Project Leader, Shall be notified at east forty:five (45) days
before the date of termination so that he/she could, inform the concerned personnel
accordingly.

OTHER PROVISIONS

All pertinent forrns stated herein are hereby attached and 'made part of this
Administrative Order (AO).

These guidelines may be supplemented with -specifie nroViSiOnS Of the Funding

Agency, if necessary.. If grant policies and regulations conflict with the retail iSsUances
of the GAA and Commission on Audit (COA), the national government regulations Will
prevail until amendments will be Made on these guidelines.

The nullity/illegality of a portion of this AO does not rende(the entire guidelines as

EFFECTIVITY

This Administrative Order shall take effect fifteen 05) days after publication in
the Official Gazette and upon filing at the UP Law Center.

Approved By:

FORTU - ATOT.DES LA PENA

Setretary

29