Pursuant to Part V, Rule XVI, Section 4 of the DENR Administrative Order No. 2000-81 also known as the Implementing Rules and Regulations of the Clean Air Act", the following criteria are to be followed in preparing/evaluating project proposals to be funded by Air Quality Management Fund (AQMF):

SECTION 1. Project Design - The DENR through the EMB shall consider projects/activities that are related to air quality management as qualified or eligible to be funded by the AQMF which include, but not limited to:

a. Air quality monitoring, reporting or management including purchase and maintenance of equipment;

b. Public awareness and IEC campaigns on air quality;

c. Research on air pollution related issues such as health, alternative fuels and fuel additives, emission control technologies (stationary and mobile sources), verification technology, etc.;

d. Capacity building on air quality management;

e. Roadside apprehension/emission testing; and

f. Administration and management of the Governing Board and other support groups such as Executive Committee, Technical Working Group and Technical Secretariat (Section 9, RA 8749 and Rule XV, DAO 2000-81).

Each project proposal shall be prepared and submitted to the EMB using DBM budget planning format.

The project proponent is accountable for accuracy and appropriateness of assumptions made in justifying the project and estimating the cost.

SECTION 2. Project Duration - The length of project implementation shall be limited to one year, subject to availability of fund.

SECTION 3. Project Management - For purposes of monitoring and accountability, the project proponent shall identify the core group that shall be given responsibility for implementing the proposed project. An organizational and functional structure duly signed by the head of agency/office shall form part of the project proposal that shall be submitted to the EMB.

SECTION 4. Project Reporting - During the project implementation, the project proponent shall prepare the following reports to be submitted to EMB:

a. Quarterly report itemizing the physical and financial progress of the project;

b. Final report describing the implementation of the project as a whole and summarizing the key achievements; and

c. Quarterly audited report of disbursement pursuant to COA Circular No. 94-013 dated December 13, 1994.

As a general guide, the information needed in reports should cover:

1. Principal work accomplished during the reporting period;

2. Actual or potential deviations from the original plans or schedules and the reasons therefore;

3. Expenditures incurred for the project, and disbursements made; and

4. Problem analysis, including circumstances that could affect costs or schedules (e.g., reasons for delay in procurement and disbursement, difficulty in collecting information from the field, or unavailability of qualified staff).

The quarterly report shall be submitted to the EMB not later than the 10th day of the month following the quarter being reported while the final report shall be submitted within two months after the end of the fiscal year.

SECTION 5. Project Accounting - For proper accounting and reporting of the AQMF the project proponent shall maintain separate bank accounts, book of accounts, subsidiary ledgers and other financial reports.

SECTION 6. Effectivity - This Memorandum Circular shall take effect fifteen (15) days from the date of its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Adopted: 15 July 2005

(SGD.) MICHAEL T. DEFENSOR
Secretary