1. Assessment of Seal of Good Housekeeping
    1. The DILG shall conduct an annual assessment of LGUs’ good housekeeping practices along the governance areas of transparency, accountability, planning, fiscal management, and valuing performance monitoring.
    2. LGUs that passed the assessment shall be conferred with the SGH which shall make them eligible to apply for PCF subsidy.

  2. Application and Compliance to PCF RequirementsUpon conferment of the SGH, eligible LGUs shall submit, within thirty (30) days, a letter of interest to their respective DILG Regional Offices accompanied by the following documents for evaluation:
    1. Project Proposal inclusive of Annual Investment Program, Program of Work, Detailed Estimates, and Detailed Engineering Design (for infrastructure projects)
    2. Sanggunian Resolution
      1. Authorizing the Local Chief Executive to enter into a Memorandum of Agreement (MOA) for the PCF subsidy;
      2. Approving the allocation of LGU funds as counterpart to the PCF subsidy; and
      3. Certifying that the project is included in the current Annual Investment Program.
    3. Certification from the Budget Officer that the project has an allocation from the 20% component of the IRA for development projects.

  3. Review of Project Proposals and Approval of PCF Subsidy
    1. Within fifteen (15) days after receipt of the letter of interest and complete required documents, the DILG Regional Office shall conduct the review of the LGU’s application and appraisal of the project proposal. If necessary, site inspection shall be conducted to assess the location and physical viability of the project.
    2. After satisfactory compliance with the requirements and approval of the project proposal, the eligible LGU shall enter into a Memorandum of Agreement (MOA) with the Department of the Interior and Local Government (DILG) through the Regional Director.
    3. The Regional Office shall issue the LGU a Certificate of Availability of Funds for the corresponding amount of the approved PCF subsidy and shall be required to submit the following documents:
      • Certification from the Local Treasurer on the availability of counterpart fund
      • Certification from a Government Bank that the LGU had opened a Trust Account for the PCF and the corresponding amount of LGU counterpart
      • Appropriations Ordinance to cover the total cost of project/s.

  4. Release of PCF Subsidy to LGUs
    1. Upon submission of the report of physical accomplishment and report on disbursement of LGU counterpart, the DILG Regional Office shall release the PCF subsidy to the LGU recipient.
    2. LGU recipient shall issue an official receipt corresponding to the amount of PCF subsidy received.

  5. Monitoring and Evaluation of PCF-funded Projects
    1. The LGU recipient shall submit to the DILG Regional Office quarterly progress reports of physical accomplishment and fund utilization, and report of disbursement verified and found correct by the Commission on Audit (COA) Field Auditor.
    2. Upon completion of the project, the LGU recipient shall submit a project completion report to the DILG Regional Office inclusive of the following documents:
      • Certificate of Completion
      • Certificate of Acceptance (if by Contract)
      • Disbursement Report verified by local COA Officer