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Memorandum
NEA memorandum of agreement
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___________________
President
SONIA B. SAN DIEGO
Director
Finance Services Department
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services
MEMORANDUM OF AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Memorandum of Agreement made and entered into by and between:
NATIONAL ELECTRIFICATION ADMINISTRATION, a government
corporation created and established by Presidential Decree No. 269, as amended, with
principal office at the #57 NEA Building, NIA Road, Government Center, Diliman, Quezon
City, and represented in this Act by its Administrator,______
________
or Deputy Administrator, ___MARIANO T. CUENCO___ hereinafter called “NEA”.
-and_____________ ____ELECTRIC COOPERATIVE, INC., an electric
cooperative duly organized, incorporated and registered pursuant to Presidential Decree
No. 269, as amended, and with principal office at _________________________, and
represented in this Act by its President, _______________________, or General
Manager, _________________________________, hereinafter called the “RECIPIENT”.
WITNESSETH: ThatWHEREAS, the RECIPIENT seeks financial assistance from the government by
way of grant/subsidy to fund electrification projects and to finance rehabilitation of
distribution lines and/or systems damaged by typhoons, earthquakes and other related
natural calamities;
WHEREAS, Presidential Decree No. 269, as amended, mandates NEA to
implement rural electrification program on an “area-coverage” basis;
WHEREAS, there is a need for government to subsidize cost relative to the cost
of fuel and minor repairs/maintenance and/or vehicle rentals directly used in the project,
installation and construction of distribution facilities that will extend electric service to
unenergized barangays or sitios, and rehabilitation of distribution lines and/or systems
damaged by typhoons, earthquakes and other related calamities;
___________________
General Manager
WHEREAS, NEA has agreed to provide grant/subsidy to the RECIPIENT under
the terms and conditions cited below;
WHEREAS, NEA Board Resolution No. 22 was passed on March 16, 1990
authorizing and empowering the Administrator or the Deputy Administrator for
Corporate Resources and Financial Services_, to sign and execute this MOA; and
WHEREAS, _________________ ELECTRIC COOPERATIVE, INC. Board
Resolution No. _____________ was passed on _________________________
authorizing and empowering ____________________, Board President to sign and
execute this MOA.
NOW, THEREFORE, for and in consideration of the foregoing premises, the
parties have agreed and hereby agree, as follows:
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services
SONIA B. SAN DIEGO
Director
Finance Services Department
___________________
President
___________________
General Manager
1.
NEA shall provide the RECIPIENT subsidy funds in an amount not
exceeding PESOS: ________________________________________________
____________________________________________(P______________),
Philippine currency, to finance certain electrification/rehabilitation project(s) of the
RECIPIENT as enumerated in Schedule A hereof. The said amount will initially be
treated as RECEIVABLE/PAYABLE by/to NEA and will only be considered as SUBSIDY
upon liquidation and after compliance with the conditions provided herein and pursuant
to the directive of the Commission on Audit in COA AOM No. 2009-006 dated April 21,
2009.
2.
The RECIPIENT shall use the funds, which may be in the form of
materials and equipment requisitioned, cost of labor and peso releases requested by the
RECIPIENT from NEA, solely and exclusively for the project(s) adverted to in Schedule
A, and in no case diverted or used for purposes unrelated to said projects such as but
not limited to money market placements, and other related forms of investments not
related to the project, payments for amortization on loans and/or credit
accommodations obtained by the RECIPIENT from creditors, payment of power bills,
salaries, wages, honoraria and other similar benefits of RECIPIENT’s regular personnel.
Appropriate actions shall be imposed on any Board of Directors who voted affirmatively
to the diversion of funds or otherwise violated this provision and any officer or employee
who implemented the same.
3.
Procurement of equipment and materials and/or engagement of
contractors for the project(s) shall be guided by RA 9184 and its Implementing Rules
and Regulations and relevant NEA policies, rules and regulations. The supplies and
materials purchased from subsidy funds must be kept separately from EC stocks to
facilitate its physical inventory. The project(s) should be implemented and completed
within six (6) months after receipt of the subsidy appropriations by the RECIPIENT from
NEA, or at a later date agreed upon between the two parties.
4.
a. Pursuant to COA Circular No. 94-013 S. 1994 the Recipient shall submit
regular Accomplishment Reports on the progress of the project implementation
including an accounting of the subsidy fund and disbursements made to implement the
project(s) on a per project basis, and such other data and information, as may be
required by NEA from time to time. A final report on the project(s) to include Accounting
of Funds, Status Report of NEA subsidy fund releases and Certificate of Final Inspection
and Acceptance must be submitted by the Recipient to NEA within three (3) months
from completion of the project which shall be the basis for liquidation. Also, the
Recipient shall conduct close-out of project within three (3) months after NEA’s final
inspection and acceptance to facilitate the take-up of completed projects in the EC
books.
b. The accounting treatment of subsidy releases through cash advance
will establish the Recipients accountability upon receipt of financial assistance from the
government. The following pro-forma accounting entries shall be followed and reflected
on their MFSR:
- To take up receipt of subsidy fund from NEA
Cash
xx
Accounts Payable
xx
-
To record liquidation/accounting of subsidy fund received
Accounts Payable
xx
Donated Capital
xx
c. The RECIPIENT shall keep and maintain a separate combo/savings
account in a reputable government bank (preferably LBP or DBP).
stock.
d. The RECIPIENT shall keep subsidy materials separately from its own
e. Release of Fund Assistance as well as reporting, monitoring, and
inspection requirements shall be based on the Guidelines on the Release of Subsidy
Funds to Electric Cooperatives and paragraph 7 of PAS 20.
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5.
NEA and the Commission on Audit shall require the submission of voucher and
other documents relevant to the grant and the project(s) as well as conduct an audit on all
transactions made with respect thereto, pursuant to the provisions of PD No. 1445 as amended.
6.
NEA shall institute appropriate actions and/or may suspend release of the subsidy
fund in the event of failure of the RECIPIENT to strictly comply with the provisions of this
agreement.
7.
It is agreed that all amount in excess of total disbursement and cost of
unimplemented project including interest earned thereon shall be returned/remitted to NEA and
or the Recipient may request written authority from NEA to use the savings/balance as well as
interest accruing to the fund for activities allied to the project, within one (1) month after Final
Inspection of NEA.
8.
That the amount appropriated by NEA for this purpose shall be available for
release to the RECIPIENT within one (1) year from the date of receipt of appropriations from
the National Government.
9.
To cover administrative cost relative to the grant, the RECIPIENT will be
assessed a service charge of __ %_ which shall be deducted from the proceeds of the grant.
10.
In case the EC will be converted into stock cooperative, the subsidy funds shall
remain intact as donated capital, which shall not be distributed to member-consumers as share
capital. Furthermore, in case of dissolution of the electric cooperative, said donated capital shall
be subject to escheat pursuant to the provision of RA 9520.
11.
expenses.
The RECIPIENT shall undertake payment of notarial services and other related
12.
The changes brought about in the MOA are made in compliance with COA letter
dated 7 May 2007, AOM dated 21 April 2009 and NEA Memorandum Circular dated 13 May
2009 and 28 September 2009.
IN WITNESS WHEREOF, the authorized signatories of the parties have signed these
presents this ___th day of _______________________, 20_______ at Quezon City, Metro
Manila.
NATIONAL ELECTRIFICATION
ADMINISTRATION
By:
By:
ELECTRIC COOPERATIVE, INC.
______________________
President
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services
Signed in the Presence of:
______________________
General Manager
SONIA B. SAN DIEGO_
Director
Finance Services Department
3
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services
ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES)
__________________________) S.S.
BEFORE ME, a Notary Public for and in the above-stated locality, personally
appeared the following, this _____th day of ____________, 20 _____:
SONIA B. SAN DIEGO
Director
Finance Services Department
Name
Gov’t. ID No.
Date/Place Issued
MARIANO T. CUENCO
known to me and to me known to be the same persons who executed the foregoing
instrument and who acknowledged that the same is their free and voluntary act and
deed as well as of the entities herein represented.
This refers to a Memorandum of Agreement consisting of five (5) pages including
Schedule A and this page whereupon this acknowledgement is written, signed by the
parties and their instrumental witnesses in each and every page hereof.
___________________
General Manager
___________________
President
WITNESS my hand and seal at the place and on the date first above written.
NOTARY PUBLIC
Until December 31, 20___
Doc. No. _______
Page No. _______
Book No. _______
Series of _______
4
___________________
General Manager
___________________
President
SONIA B. SAN DIEGO
Director
Finance Services Department
MARIANO T. CUENCO
Deputy Administrator
Corporate Resources &
Financial Services
SCHEDULE A
SUBSIDY:
AMOUNT:
PROJECT DESCRIPTION:
5
