5. PROPOSAL PREPARATION, SUBMISSION, REVIEW, AND APPROVAL

5.1 Detailed Proposal and Work Plan

The proponent shall prepare a detailed proposal using the prescribed DOST form that presents among others the following:

a. Title of proposed program/project
b. Information about the proponent
c. Significance and objectives of the project
d. Review of related literature
e. Theoretical framework,
f. Methodology/strategies for implementation
g. Expected output
h. Target beneficiaries
i. Personnel and financial requirement
j. Duration
k. Work plan or Gantt Chart

5.2 LIB Preparation

The grant shall finance project expenditures itemized in an approved LIB following the DOST Form No. 2B-2. The grant may cover partial or full cost of the project, both direct and indirect costs of personal services, maintenance and other operating expenses, and equipment outlay except capital outlay such as buildings and other structures. All expenditure items in the LIB shall be in accordance with the New Government Accounting System (NGAS), relevant provisions are shown below:

5.2.1 Direct Cost

The direct cost is 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 Equipment Outlay (EO).

a. PS

a.1 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.

a.2 Payment of salaries and honoraria out of DOST-GIA funds shall be authorized provided it is reflected in the approved LIB following the DOST prescribed rates and other existing applicable or relevant guidelines, circulars, or order of competent authority pursuant to law and implementing rules and regulations.

a.3 DOST Council Heads/Agency Heads shall not be entitled to payment of honoraria or any form of additional compensation or remuneration. However, payment of honoraria to them maybe allowed provided it is covered in the LIB and approved by the DOST Secretary through a Special Order (SO).

b. MOOE

MOOE shall be broken down/itemized as follows:

b.1 Traveling Expenses-- costs of: (1) movement 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 expenses

For foreign travel, the proposal shall include the name(s), designation of program/project personnel who will travel, possible country of destination, purpose and duration of the travel, provided only project personnel shall be allowed to use the travel funds except in highly meritorious cases as determined by the Funding Agency upon endorsement of the Monitoring Agency. A travel report shall be required;

b.2 Communication Expenses–include costs of telephone, telegraph, mobile/wireless and tolls, fax transmission, postage and delivery charges, data communication services, internet expenses, cable, satellite, radio and telegraph messenger services, among others;

b.3 Repair and Maintenance of Facilities-- include costs of repair and maintenance of office equipment, furniture and fixtures, machinery and equipment, IT equipment and software, building, office and laboratory facilities, and other S&T structures directly needed by the project;

b.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;

b.5 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;

b.6 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, agricultural 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, gasoline, and oil;

b.7 Utilities (i.e. Water, Illumination and Power Services)-- include costs of water, electricity or gas for illumination and cooking gas expenses consumed by the implementing agency in connection with the project;

b.8 Training and Scholarship Expenses--include training fees and other expenses, and scholarship expenses such as tuition fees, stipends, book allowance, and other benefits;

b.9 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;

b.10 Printing and Binding Expense--include costs of producing, printing, and binding materials such as books, reports, catalogues, documents, and other reading materials;

b.11 Rent Expenses--rental fees for the use of facilities, equipment, and vehicles;

b.12 Representation Expenses--include costs of meal/food for the conduct of workshops/meetings, conferences, and other official functions related to the project;

b.13 Subscription Expenses--include costs of subscription to library materials, such as magazines, periodicals, and other reading materials;

b.14 Survey Expenses--include costs incurred in the conduct of survey related to the project;

b.15 Professional Services--include costs of services such as legal, auditing, consultancy, environment/sanitary, general, janitorial, security, and other professional services;

b.16 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

b.17 Other Maintenance and Operating Expenses--additional items not included above such as cost of submission of scientific paper for peer reviewed journals.

c. Equipment Outlay

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 Section 8 --Purchase, Ownership, and Accountability of Equipment and other Properties of this Guidelines. Any equipment worth P50,000.00 (unit cost) and below shall be the counterpart of the implementing agency except under meritorious cases upon recommendation of the Monitoring Agency.

5.2.2 Indirect Cost

These are overhead expenses incurred by the Implementing Agency or Monitoring Agency in managing, evaluating, and monitoring the 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.

a. 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% of the total PS and MOOE of the program/project.

b. The Implementing Agency and Monitoring Agency shall each retain an indirect cost, equivalent to 7.5% of PS and MOOE less Taxes, Duties and Licenses but not to exceed P200,000.00 unless allowed by the Funding Agency except for the Monitoring Agency depending on the scope, complexity and geographic coverage.

c. PS and MOOE include indirect cost incurred by the Implementing Agency for utilities/maintenance expenses, supplies and materials, and printing/publication. Likewise, it also covers the expenses incurred by the Coordinating/Monitoring Agency in managing the program/project, which is limited to communication services, transportation and delivery services, traveling expenses, utilities, supplies and materials, representation expenses, professional services and equipment outlay.

d. No funds coming from the Funding Agency shall be used to pay indirect costs incurred by the same agency.

e. 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 of the Monitoring Agency.

5.3 Project Proposal Flow/Approval/Release of Funds *

5.3.1 The proponent shall submit his/her proposal duly endorsed by the Agency Head to any of the following DOST offices:

a. Office of the Secretary (OSEC)

b. Office of the Undersecretary concerned (Undersecretary for R&D, S&T Services or Regional Operations)

c. The appropriate S&T Council/Agency or Regional Offices

The DOST concerned shall acknowledge submission and update the proponent of any action taken on submitted proposal.

5.3.2 The project proposals shall be evaluated through an established project review mechanism. Endorsement of the appropriate Sectoral Council/ DOST agency to monitor the project shall be required.

5.3.3 All new projects to be funded under the DOST-GIA Program shall be approved by the DOST Executive Committee (EXECOM) except for projects amounting to P2,000,000.00 and below which may be approved by the Undersecretary concerned. The DOST-EXECOM shall be informed of any approval made by the Undersecretary concerned.

5.3.4 Upon approval of the proposal, a Memorandum of Agreement (MOA) or Memorandum of Instruction (MOI) shall be issued by the Special Projects Division (SPD) - Office of the Undersecretary for R&D. For continuing projects, a conforme letter shall suffice (See Annex B- MOAs/MOI/Conforme Letter Formats). The DOST Secretary shall sign all documents pertinent to the approved project amounting to P10,000,000.00 or more while the documents of those projects receiving less may be signed by the Undersecretary concerned.

* This section apply only for DOST-GIA funded programs/projects